Stocks mixed as investors mull profits, G-20
Treasury Secretary Geithner presses for trade imbalance rules at the Seoul summit. Quarterly results from Honeywell and Verizon drop but beat expectations. Crude oil prices rise as gold prices fall.
By Melinda Peer, TheStreet
Updated 1:26 p.m. ET
At 1:26 p.m. ET, the Dow Jones Industrial Average ($INDU) was down 25 points, or 0.2%, at 11,122. The S&P 500 ($INX) was up 1.5 points, or 0.1%, at 1,182. The Nasdaq ($COMPX) was rising 17 points, or 0.7%, at 2,477.
Treasury Secretary Timothy Geithner has been pressing for rules to address trade imbalances at the G-20 summit, which ends tomorrow. The effort is designed to get China to strengthen its yuan, and it is facing opposition from countries that rely on exports, according to reports.
"This weekend, we have some global macroeconomic issues, and then it's Election Day, with the Fed meeting the next day," said Michael Shea, a managing partner at Direct Access Partners. "That's really what the market is looking to, and it can't come here fast enough."
The dollar was trading lower against a basket of currencies, with the dollar index down by 0.2%.
Concerns about the trade debate countered better-than-expected results at major companies.
Verizon said third-quarter earnings fell 25% to $881 million, or 31 cents a share, as the company signed fewer new customers than a year earlier. Excluding pension costs and other expenses, its profit was 56 cents a share, topping estimates for 54 cents.
Honeywell's (HON) net income fell 18% to $499 million, or 64 cents a share, on revenue of $8.39 billion. But the company beat analysts' expectations for a profit of 62 cents on revenue of $8.22 billion. Honeywell's shares were down 1.3% at $46.06.
Shares of Ingersoll-Rand (IR) were rising 1.2% to $39.42 after the company reported adjusted earnings of 80 cents a share on revenue of $3.73 billion. Analysts had expected a third-quarter profit of 79 cents a share on sales of $3.73 billion.
Mutual fund company T. Rowe Price (TROW) said earnings rose to 64 cents a share in the third quarter, topping estimates of 60 cents. The stock was gaining 4.2% at $54.89.
In commodity markets, crude oil for December delivery was gaining 49 cents at $81.05 a barrel. The December gold contract was losing $1.30 at $1,324.30 an ounce.
The benchmark 10-year Treasury note fell 4/32, increasing the yield to 2.554%.
Hong Kong's Hang Seng fell 0.6%, while Japan's Nikkei added 0.5%. The FTSE in London was slipping 0.3%, and the DAX in Frankfurt was down by 0.7%.
WOW....how America sits on it lazy butt while our Corrupt Gov. continues to make the masses "feel good" and they destory the dollar and the condfidence in America's integrity. The world thinks our Gov is a joke and see all of the manipulation and corruption. No wonder you hear what you do from abroad.
Now.. the "big" news is whats going to be going on this weekend in Korea. The "G20" will be meeting again to hammer out some form of monetary agreement, as the currency wars we predicted are raging wild. So now we have Timmy "turbo tax" Geithner, telling the world he's in favor of a strong dollar ( choke, gag, heave, lol, ) and the rest of them chuckling at him.
Iggy, more like when Obama was on the bridge and yanked the wheel hard left and ran into the iceberg... Bush was wining and dining the fat cats in 1st class...'
The economy didn't start going south until it looked like we would elect a socialist and begin an all out war on business and the middle class....
Nov 2nd cannot get here fast enough...
Unemploy the Donkeys!
on the other hand the banking houses giving our tax money to the chamber of commerce would be.
The Democrats will even stoop to deficit spending to help fund campaigns this year...what a sign of the times! Witness:
The American Federation of State, County and Municipal Employees is now the biggest outside spender of the 2010 elections, thanks to an 11th-hour effort to boost
That is not tax payer dollars. That is the Union's Politcal Action Fund. AFSCME is not a government entility. That would be like saying the UAW is part of GM
This election is about one man, Barack Obama, who fairly or not represents the following
I think that is how Obama made it to the whitehouse. The last election was about one man...Bush
McCain would probably have been ok (without Palin). However the right wignuts can't stand a moderate republican.
I found this post on the WSJ and thought it an excellent synopsis of some history.
"This whole mess was launched by the stock market crash of 1929, which was caused by the Fed. During the Roaring 20s, the Fed set below-market interest rates and low reserve requirements that all favored the big banks. The money supply actual increased by about 60% during this time. The phrase "buying on margin" entered the American vocabulary at this time as more and more Americans over-extended themselves to take advantage of the soaring stock market. So what went wrong? In 1929, the Fed realized that it could not sustain its current policy. When it started to raise interest rates, the whole house of cards collapsed. The Stock Market crashed and the bank panics began.
Hoover's response? Government meddling. While I'm not sure Keynes would have thought that it was a good idea to raise prices in response to a depression, the latter-day Keynesians among us essentially agree with Hoover's approach, which was to artificially boost price (via tariffs) and demand (via stimulus) during a depression, as follows:
1. Protectionism (Smoot-Hawley Tariff, 1930). Let's pump up those prices (instead of letting prices drop to market levels), and protect our own industry, right? America First, right? Who can argue against a little flag waving? The impacts on international trade were catastrophic. This and other effects caused international trade to grind nearly to a standstill as other nations levied their own tariffs in response to ours; the depression spread worldwide. In response to this self-inflicted disaster, Hoover resorted to Stimulus.
2. Stimulus (1930-1931). Pump up that phony demand! That's the ticket! In response to the worsening situation, the Hoover administration launched programs to build roads, public buildings, and airports, and increased the country's credit facilities, including strengthening the banking system. A part of this effort was the Reconstruction Finance Corporation (RFC) with $2 billion to shore up overwhelmed banks, railroads, factories, and farmers.
As we know, it was all a miserable failure; the wrong medicine for the disease.
Does any of this sound strangely familiar?
Then, FDR doubled down on Hoover's bad medicine. At least one member of his administration had the decency to tell the truth that these measures had failed. FDR's Treasury secretary and close friend, Henry Morganthau, conceded this fact to Congressional Democrats in May 1939: "We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong ... somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises ... I say after eight years of this Administration we have just as much unemployment as when we started ... And an enormous debt to boot!"*
"There is no crisis so severe that government intervention cannot make it worse." --Vox Day"
Give it up. Mirageguy is moving to Texas so he can get involved in rewriting the history text books to better fit his image.
I don't even know why we argue about the corporate income tax. Shareholders don't pay it. It is like a Sales Tax on the product. The customer pays 100% of it. I suppose you could oppose sales taxes based upon the fact that they hit the poor the hardest...
Personally I like the corporate taxes. I would do away with the income tax, and just raise the corporate rate even higher, so that the poor pay their fair share...
Maybe then we could get a smalle rgovernment instead of the unsustainable mess we have now!
And the Demcorats would be stupid enough to support this, afterall they are stupid enough to support the corporate tax now...
Bush has been gone almost 2 years... Obama certainly owns the economy by now, and he has only made it far worse... Most people wish the economy was as good as it was BEFORE it looked like the socialist Obama would win and begin his war on business and the middle class...
The AP prints that they had a 25% decline in Q3. Now maybe the estimaters who were beat should have predicted a 50% decline and then we would have had a large earnings surprise to the up side making us all feel very very happy. What a rigged little system the earnings estimates and reporting in media is.
Ignatius75.....Germany has a centalized and govt facilitated health care with contributions taken directly from each worker's paycheck! It certainly does not have low labor cost and it certainly does have full unemployment insurance and other 'safety net' entitlements for the elderly and unemployed.
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[BRIEFING.COM] Precious metals are weak this morning on growing speculation of a Fed taper following strong economic data released earlier today. The GDP was revised up to 3.6% in the second estimate of 3Q2013 GDP from 2.8% in the advance release. That is up from a 2.5% gain in the second quarter and the largest increase since growing 3.9% in 2Q2010. Feb gold pulled back from its session high of $1229.70 and is now trading 2.4% lower at $1217.20. Mar silver dipped to a session low of $19.22 ... More
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