18/ 1 / 2013 - January
Market Review By TraderXP:
IPhone maker turned to the full panel of judges in the U.S. Court of Appeals for the Federal Circuit to consider, at the same time, the two appeals seeking to block the sale of products Samsung, said that Apple, violate its patents. Panel of three judges usually hear appeals first, with all the court sometimes, when stepping in the broad legal issues need to be resolved.
"The two cases will be the ideal way to deal with uncertainty as to when the patent owner may prevent competitors invading its patented innovations," Apple said in the court register on 16 January.
Apple, which claims that Samsung "slavishly" copied the iPhone and IPad tablet computer, according to the Federal Circuit's ruling interferes with their efforts to get a court order that would force Samsung to change its products or to remove some of the models from the market. Samsung denies copying devices Apple. How will the economy react?
Housing, these works push S & P five-year high; Intel down late
Stronger-than-expected data on housing and unemployment lit a fire under the stock on Thursday, pushing the S & P 500 for five-year high and the third day of gains.
A pair of economic reports lifted investor sentiment. The number of Americans filing new claims for unemployment benefits fell to a five-year low last week, and housing starts jumped last month to the highest level since June 2008.
The strength in housing and the labor market is the key to sustainable economic growth and corporate profits, helping to identify customers, even in a day when earnings reports were mixed.
Revenues were overshadowed by weakness in the financial sector, Bank of America up 4.2 percent to $ 11.28 and Citigroup from 2.9 per cent to $ 41.24 after the results.
In other bad news earnings, shares of chip maker Intel fell 5.2 percent to $ 21.49 in extended hours trading after the company forecast quarterly revenue that fell short of analysts' expectations. Intel ended the regular session up 2.6 percent at $ 22.68.
S & P 500 finished at its highest level since December 2007 and is now only 5.6 percent from its all time closing high 1,565.15.
"Having a really consolidated in the last two weeks that we have left, I think it's quite a bit of sucking money," said James Dailey, portfolio manager of TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.
Index Dow Jones Industrial Average rose 84.79 points, or 0.63 percent, to 13,596.02. 500 Index Standard & Poor was up 8.31 points, or 0.56 percent, to 1,480.94. The Nasdaq Composite Index rose 18.46 points, or 0.59 percent, to 3,136.00.
Better-than-expected revenue and profit reported online market eBay on Wednesday night helped the stock gain 2.7 percent to $ 54.33.
In the housing sector, PulteGroup Inc shares gained 4.9 percent to $ 20.29, and Toll Brothers Inc advanced 3.1 percent to $ 35.99. PHLX housing sector index rose by 2.4 per cent, its highest closing level since August 2007.
Semiconductor shares. SOX rose 2 percent to its highest close in eight months.
Finances were the only S & P 500 sector registered a slight decrease during the day.
Bank in fourth-quarter profit fell America as ittook more charges to clear the mortgage problems. Citigroup issued a $ 2.32 billion charge for layoffs and lawsuits.
Energy stocks led gains on the Dow as U.S. oil prices jumped more than 1 percent. Shares of Exxon Mobil rose 0.8 percent at $ 90.20 while shares of Chevron rose 0.7 percent to $ 114.75.
S & P 500 earnings are expected to have grown by 2.3 percent in the fourth quarter, Thomson Reuters data showed. Expectations quarter declined significantly since October, when the 9.9 percent growth was evaluated.
Volume was about 6.5 billion shares traded on the New York Stock Exchange, Nasdaq and NYSE MKT, compared with 2012 average daily volume of about 6.45 billion closing.
Advanced ahead of the outsiders at the NYSE by 22 to 7, and the Nasdaq about 2 to 1. Reuters.com
Ian gets 2-1/2 year low, bold look to mitigate the Bank of Japan
Yen hit a 2-1/2 year low against the dollar as markets onFriday positioned for the Bank of Japan to take decisive action to combat deflation policy setting meeting at the beginning of next week.
Sources familiar with the thinking of the Bank of Japan told Reuters the central bank, under the relentless pressure of the Prime Minister Shinzo Abe, will consider making public commitments to purchase assets to 2 percentinflation sight.
Such open asset purchase scheme will exceed market expectations, which centered on the BOJ set 2 percent inflation and may increase its asset purchase program at its meeting on January 21-22.
While the dollar may face some profit-taking against the yen after the political decision of the Bank of Japan on Tuesday that in the end will likely be headed higher, said Hiroshi Maeba, head of currency trading at UBS in Tokyo, Japan.
"There may be a decline after the Bank of Japan, but the decline may be surprisingly small, and I think there will be an increase to the direction of 93 yen to 95 yen," he said.
The dollar rose higher than 90.21 yen on trading platform EBS, the strong level of the dollar since June 2010. This marked an increase of about 14 percent from a trough hit in early November.
The dollar last change hands in 90.11 yen, up 0.3percent from late U.S. trade on Thursday.
Adding to the pressure against the yen were comments Koichi Hamada, Special Adviser on Economic Affairs Abe, saying weakening the yen to a 95 or 100 to the U.S. dollar would not have to worry.
On the technical charts, the initial resistance to the dollar / yen seen around 90.34, 76.4 percent retracement of its May 2010-October 2011 decline. Break in 2010 has brought high 94.99 in the spotlight.
Maeba at UBS said a possible short-term goals for the dollar was 90.75 yen. Dollar sales of the options players may occur near this level, where option barrier, he said.
If the Bank of Japan had to pass to an open circuit of asset purchases, additional focus would be the rate of acquisition of assets, said Rob Ryan, a strategist at RBS in Singapore.
"What is important is the commitment to an open ... plus the increase in the rate of purchases, "said Ryan.
"Open-ended purchases at the rate dictated by the BOJ without commitment at this pace and not an obligation, when they will reach two percent inflation is much less potent as a signal," he said.
According to traders, the risk is, of course, if the Bank of Japan undershoots expectations.
"We believe that there is some risk of disappointment at a meeting of the Bank of Japan and the possibility for the yen rally. Now believed that BOJwill moving in two target inflation rate. Nevertheless, more aggressive measures may not come until closer to the nomination of new governor / vice Governor-Q2 ", said Kieran Kowshik, strategist at BNP Paribas.
Underlining the weakness yen, Australian dollar scaled a high 95.00 yen on Friday, its highest level since August 2008.
Earlier, the Australian dollar was brief lift against the dollar after data showed that China's economy grew by 7.9 percent in the fourth quarter than a year earlier, snapping seven straight quarters of slowing expansion.
Australian dollar later settled back, however, and last fetched $ 1.0523, up 0.2 percent on the day.
The euro rose 0.1 percent to $ 1,3385, hoveringnear 11-month high of $ 1.3404 set on Monday. Reuters.com
- by Mark Densel