November 22, 2024

Strong Auto Sales Lead Shares Higher

The stock market rose on Wednesday as investors were encouraged by a surge in auto sales in August and other signs of strength in the economy.

Shares of General Motors, Ford Motor and Toyota Motor rose after the auto industry reported its best month in six years.

“Car sales were really impressive,” said Peter Cardillo, chief market economist at Rockwell Global Capital, noting that they point to solid consumer spending and increased manufacturing. “It means the economy is holding up,” he said.

The Standard Poor’s 500-stock index rose 13.31 points, or 0.8 percent, to 1,653.08. The Dow Jones industrial average gained 96.91 points, or 0.7 percent, to 14,930.87. And the Nasdaq composite index rose 36.43 points, or 1 percent, to 3,649.04.

Jim Russell, a senior equity strategist at U.S. Bank Wealth Management, said recent economic reports had drawn a brighter picture of the global economy, even as concerns over a possible American military strike on Syria have claimed much public attention.

A trade group said on Tuesday that the nation’s factories increased production last month at the fastest pace since June 2011, propelled by a sharp rise in new orders. Separate reports out on Monday showed stronger manufacturing in Europe and China.

“All of these add up to better economic growth on a global scale,” Mr. Russell said.

On Wednesday, G.M. said that its sales rose 15 percent last month compared with August 2012, while the Chrysler Group and Ford each reported 12 percent gains. Toyota posted the biggest increase as sales rose nearly 23 percent.

G.M. rose $1.71, or 5 percent, to $35.85, one of the biggest gains in the S. P. 500. Ford rose 57 cents, or 3.5 percent, to $16.91.

The Nasdaq stock market ran into technical problems for the second time in two weeks. The exchange reported that its system for disseminating prices failed briefly, from 11:35 a.m. to 11:41 a.m., but it said trading was not affected. On Aug. 22, all trading in Nasdaq-listed stocks was halted for three hours because of a problem with the same quote-disseminating system.

Investors are looking ahead to Friday, when the government will release the August employment report. Economists forecast that employers added 177,000 jobs last month and that the unemployment rate held steady at 7.4 percent, according to the data provider FactSet.

Friday’s jobs report is the last major piece of economic data the Federal Reserve will have to work with before the central bank considers when to begin winding down its economic stimulus program, which has kept interest rates abnormally low.

Among the stocks on the move, Dollar General rose $2.51, or 4.7 percent, to $56.39 after the company reported profits that narrowly beat Wall Street analysts’ estimates. In contrast to some of its competitors, Dollar General said sales at stores open more than a year climbed.

Francesca’s Holdings plunged $6.23, or 26 percent, to $17.79 after it reported results that fell short of Wall Street’s estimates. The company, which operates the Francesca’s retail stores, cut its forecast for full-year earnings, citing poor customer traffic.

Ciena surged $2.86, or 14 percent, to $23.54. The company, which develops high-speed networking technology, reported earnings that exceeded Wall Street expectations, a result of higher revenue and lower costs.

In the bond market, interest rates moved higher. The price of the 10-year Treasury note fell 9/32 to 96 19/32, while its yield rose to 2.90 percent from 2.86 percent late Tuesday.

Article source: http://www.nytimes.com/2013/09/05/business/daily-stock-market-activity.html?partner=rss&emc=rss

Wall Street Shares Slip

Stocks dipped on Wall Street at the opening of trading Thursday but then turned flat in the wake of weaker-than-expected growth data from Europe and Japan, though news on mergers and acquisitions may lead some traders to see further value in the market even after its recent gains.

The Standard Poor’s 500-stock index, the Dow Jones industrial average and the Nasdaq composite index were all nearly unchanged in morning trading.

A contraction of 0.6 percent in gross domestic product in the euro zone was the steepest for the bloc since the first quarter of 2009, while Japan’s G.D.P. shrank 0.1 percent in the fourth quarter, crushing expectations of a modest return to growth.

Though weakness in Europe has persisted over recent quarters, its implications for global growth and American corporate profits spurred some profit-taking on Wall Street.

The S.P. 500 had gained 6.6 percent so far this year, though a dearth of fresh incentives kept trading thin over the past few sessions.

A government report showed the number of Americans filing new claims for unemployment benefits fell more than expected in the latest week. That suggests the job market is improving, said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

“But it won’t be much of a catalyst for the market this morning,” he said, because of the news out of Europe.”

Mr. Cardillo said a weaker euro, down 0.8 percent versus the dollar, was also a downward pressure on markets.

Merger and acquisition activity indicated investors saw some value in the market.

H.J. Heinz shares jumped 20 percent after it said that Warren Buffett’s Berkshire Hathaway and 3G Capital will buy the company for $72.50 a share, or $28 billion including debt.

American Airlines and US Airways Group said they plan to merge in a deal that will form the world’s biggest air carrier, with an equity valuation of about $11 billion. US Airways shares rose 3.5 percent.

Wall Street stocks closed little changed in light trading Wednesday.

Article source: http://www.nytimes.com/2013/02/15/business/daily-stock-market-activity.html?partner=rss&emc=rss

Wall Street Edges Lower After Fed Meeting

The Fed said it would purchase $400 billion in long-term Treasury securities with proceeds from the sale of short-term government debt.

Analysts said that the financial markets had been bracing for the Fed to announce it would sell shorter-term securities for longer ones to keep rates low, allowing businesses and consumers to borrow more cheaply, so they had priced in their expectations in the run-up to the two-day meeting of Fed policy makers that ended on Wednesday.

After the announcement, the 10-year bond yield was at 1.871 percent — a new low — compared with 1.939 percent late Tuesday.

On Wall Street, the Dow Jones industrial average and the Standard Poor’s 500-stock index were each down by just over 1 percent within a half-hour of the announcement. The Nasdaq composite index slipped about 0.5 percent.

Trading before the announcement had been mostly mixed, with the Dow and the broader market as measured by the S. P. 500 lower by less than 1 percent, while the Nasdaq was up about 0.4 percent. The Dow turned briefly positive after the Fed announcement, but then declined.

Specifically, the Fed said that by June 2012 it would sell $400 billion in Treasury securities with remaining maturities of less than three years and purchase roughly the same amount of securities with maturities longer than six years. It said the result would move the average maturity of the bonds it holds to about 100 months from 75 months.

“The Fed presumably expects lower borrowing costs to increase demand for big-ticket items, including homes and automobiles,” Clark Yingst, the chief market analyst for Joseph Gunnar, said in a statement released before the announcement.

Economists at IHS Global Insight said in a statement before the announcement that the move to shift the composition of the Fed’s balance sheet was “unlikely to have a big effect, especially since the markets have seen it coming.”

Energy, industrials and materials stocks were down by more than 1 percent on Wednesday. Financials were down by 0.9 percent before the Fed announcement.

Also Wednesday, Moody’s Investors Service cut its credit ratings on Bank of America, Citigroup and Wells Fargo, saying that Washington was now less likely to bail out the banks if needed. About two hours before the end of trading, Bank of America shares were down just over 3 percent, while Citigroup was down by 0.2 percent and Wells was up by 0.8 percent.

The equity market has also been recently focused on events in Europe, particularly on whether there was any progress in Greece, where government officials were speaking in conference calls with foreign creditors early this week. Hewlett-Packard traded 8 percent higher on news reports that its board was meeting to consider replacing its chief executive officer, Léo Apotheker.

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Binyamin Appelbaum contributed reporting.

Article source: http://www.nytimes.com/2011/09/22/business/daily-stock-market-activity.html?partner=rss&emc=rss

AARP Begins an Internet Radio Service, Mixing Familiar Hits With New Artists

Last month AARP quietly introduced a free Internet radio service for listeners 50 and older, with 18 channels programmed by the Concord Music Group, an independent record company that releases music by baby boomer stars like Paul Simon and Paul McCartney. The idea, according to Hugh Delehanty, editor in chief of AARP’s publications, is for the organization to act as a guide for millions of older listeners who are curious but may be intimidated by digital music.

“We’ve always been trying to reach this audience, because we know that boomers are so passionate about music,” Mr. Delehanty said. “We also feel that because of changes in format and whatnot, a lot of them have gotten lost in terms of how to find their music.”

The player is embedded into AARP’s site, and its design was kept simple for ease of navigation, with buttons only for playing and pausing a song, and skipping ahead to the next one. The channels, which will each have about 500 songs in rotation, will also be restricted to a handful of recognizable genres, like jazz, classic RB and coffeehouse folk.

Eighteen channels of AARP-approved music might conjure endless hours of innocuous oldies. But with the Woodstock generation now entering retirement age, rock and soul of the 1960s and ’70s loom large on the service. Marc Morgenstern, Concord’s chief market and asset development officer, said his goal was to mix new music with the old.

“Older people get a bum rap, that they’re kind of frozen in time,” Mr. Morgenstern said in an interview at Concord’s office in Beverly Hills, where the walls are lined with posters of Creedence Clearwater Revival and Elvis Costello as well as some of the label’s younger stars, like Alison Krauss.

“Everyone has a certain affinity for the music of their youth,” he added. “But people really do want to find something new, something that may not stray far from what they’re familiar with but bring a huge gust of fresh air.”

One channel, Modern Hits, includes current chart-toppers by acts like Katy Perry and Kelly Clarkson (“you heard these hits on the radio or at a friend’s house,” reads the description). And in a bit of generational irony, the player was created by Slacker, a fast-rising Internet radio company that recently signed a deal to power AOL’s online radio service.

The costs of AARP’s service, which include royalty payments for music as well as editorial expenses for a section of the site dedicated to articles and interviews on music, will be paid through advertising. AARP and Concord will share any profits.

Older listeners have long been recognized in the music industry as the demographic group most attached to physical CDs, which tend to be much more profitable for record companies than digital music. People 36 and older are responsible for about 60 percent of the revenue from CD sales, according to a study last year by the NPD Group that was commissioned by the Recording Industry Association of America.

That tendency has benefited Concord, which in addition to its current releases controls large catalogs of RB and jazz. The company has grown rapidly as much of the rest of the recorded music industry has shrunk; last year Concord had a projected $100 million in revenue, 10 times the level of 2003.

But with Apple’s iTunes now eight years old, and digital services like Pandora finding mainstream success, older consumers are becoming more comfortable with digital music. And with 37 million members, AARP provides a huge potential audience.

“We’re still early on with online music and content in general,” said Mike McGuire, a media analyst at Gartner. “People are now starting to think of how to mine some of that mass of data and how to segment audiences.”

Article source: http://feeds.nytimes.com/click.phdo?i=96bcb8349f37bd579f67e35b2176abd4

Wall Street Indexes Waver as Traders Look to Fed

Mr. Bernanke is expected to discuss the job market, inflation and the prospects for economic growth following the conclusion of the Fed’s two-day policymaking meeting. He is expected to speak with reporters at an afternoon news conference.

Investors will also be watching for signs of whether the Fed plans to begin raising interest rates. The central bank’s $600 billion bond-buying program is set to end as scheduled in June.

At noon, the Dow Jones industrial average was up 21.31 points, or 0.17 percent, while the broader Standard Poor’s 500-stock index was flat. The technology heavy Nasdaq gained 1.17 points.

The DAX index in Frankfurt rose 0.83 percent, the FTSE in London gained 0.15 percent and the CAC 40 in Paris rose 0.84 percent.

In corporate news, the Boeing Company, the plane maker and military contractor, ’reported earnings that beat analysts’ expectations. The company maintained its profit and revenue expectations for the year and said it still expected to deliver its delay-prone 787 aircraft in the third quarter.

The specialty glass maker Corning said its revenue surged on strong sales of glass for flat-screen televisions, computers and mobile devices.

And Whirlpool, the appliance maker, said its net income increased by 3 percent as it sold more appliances even after raising prices to combat higher costs for raw materials.

Shares also got a lift from another round of corporate deals. Johnson Johnson said it would buy the medical device maker Synthes Inc. for $21.3 billion, and the phone company CenturyLink said it would purchase Savvis for $2.5 billion.

The Commerce Department reported that businesses increased their orders for long-lasting manufactured goods in March.

“The manufacturing sector remains the real bright spot of the economy,” said Peter Cardillo, chief market economist at the brokerage house Avalon Partners.

Bond prices fell, sending yields higher. The yield on the 10-year Treasury note rose to 3.36 percent from 3.31 percent late Tuesday. In Europe, speculation about whether Greece will restructure continues to put pressure on its bonds prices. The yields on the 10-year Greek bond surged to 15.8 percent on Wednesday. Other countries struggling with debt also saw yields rise. Portugal’s 10-year bond had a yield of 9.37 percent, while Ireland’s yield was 10.14 percent.

New data released Tuesday by Eurostat, the European Union statistics agency showed that Greece had failed to get a grip on its public finances, almost a year after it adopted sweeping austerity measures as a condition of an international rescue package.

Greece’s deficit was 10.5 percent of gross domestic product in 2010, Eurostat reported. The deficit exceeded the 9.6 percent target set last fall by the government and the European Commission, the European Union’s executive arm. Public debt swelled to 142.8 percent of G.D.P., Eurostat said.

In the Asian markets, shares closed higher after better-than-expected corporate earnings and rising consumer confidence sent Wall Street its highest levels in nearly three years.

The Nikkei 225 in Tokyo rose 1.4 percent to 9,691.84, as stocks in the country’s behemoth export sector rose.

Hong Kong’s Hang Seng index fell 0.5 percent to 23,892.84.

Oil prices were essentially unchanged Wednesday ahead of the Fed meeting. Benchmark crude for June delivery was down 4 cents at $112.17 a barrel in electronic trading in New York.

Article source: http://feeds.nytimes.com/click.phdo?i=83ede685edcc3fe1cd2d351cc5f1aaef