Trading in stocks in the U.S. on November 24 2009. major indices closed lower against the background of macroeconomic news. Not met the expectations of analysts revised data on the dynamics of U.S. GDP in III quarter of 2009. According to a report before the U.S. Department of Commerce (United States Department of Commerce), compared to last quarter grew by 2.8%, up 0.7 percentage points lower than the preliminary GDP data published by 29 October 2009. Analysts expect U.S. gross domestic product in July — September 2009. grow by 2,9%.
More positive was the report of the research organization Conference Board’s index of consumer confidence in the U.S.. According to the report, this index increased in November at 0.8 points — to 49.5 points. It was expected that the index would be 47.7 points.
Against this background, on the basis of bidding companies’ shares are considerably cheaper financial sector, led by trading banks. In particular, shares of JPMorgan Chase and Bank of America on the basis of trades fell 1,9% and 1,2%, respectively, and the papers Morgan Stanley — by 1,5%. 1,6% and 5,5% respectively, down shares of financial companies Fifth Third Bancorp and Zions Bancorporation.
Amid falling oil prices and cheaper metals and mining equities. In particular, at 1.1% in trading securities fell in the largest U.S. aluminum producer Alcoa Inc.
Not too successful trades have been for the world’s largest manufacturer of personal computers — the U.S. Hewlett-Packard (HP) Co. According to the published after the close of the previous trading session to the report, HP’s net profit in the 2008-2009 fiscal year ended October 31 fell by 7,9% and amounted to 7.66 billion dollars against 8.32 billion dollars recorded for the previous financial year. HP revenue up to the 2008-2009 financial year fell by 3,2% — to 114.55 billion dollars to 118.36 billion U.S. operating profit fell by 3,2% and reached 10.13 billion dollars compared to 10.47 billion dollars, fixed a year earlier.
Dow Jones index fell by 17.24 points (-0.16%) — to 10,433.71 points
NASDAQ — at 6.83 points (-0.31%) — to 2,169.18 points
S&P — on 0.59 points (-0.05%) — to 1105.65 points.
Key earnings/guidance since yesterday’s close: -Deere beat by $0.20, ex items, in its fiscal fourth quarter (Oct) on better-than-expected equipment revenue of $4.7 bln (First Call consensus $4.4 bln). The company provided upside first quarter revenue guidance, seeing equipment sales down 10% y/y (consensus -12%), but also provided downside fiscal year 2010 guidance. It sees equipment revenue declining 1% y/y, in line with expectations, but sees net income of approximately $900 mln, below the $1.1 bln consensus estimate, as postretirement benefit costs are expected to be about $400 mln higher on a pretax basis in 2010 than in 2009 due to lower discount rates. Shares of DE are 2% premarket.
The market has been lower four out of the last five sessions, but the Dow only entered a corrective mode in the wake of Monday’s early advance to a new 52-week high/resistance (equal to March-June rally off July low and the trendline off the 2007-2008 highs). The S&P set a new 52-week high last week but has essentially been taking a breather over the last two weeks as it has chopped on both sides of the October peak/1100 psych level. Shorter term the price action off last week’s low has been constructive with a favorable seasonal bias on the session prior to and after Thanksgiving raising potential for an upside follow through attempt as long as 1100 and the early low (1097) are not taken out. Resistance is at Monday’s peak/last week’s 52-week high at 1112/1113, with a minor barrier above in the 1116 area. Key economic data: -October Durable Goods Orders (consensus 0.5%; revised prior 1.4%) and Orders ex-transportation (consensus 0.7%; revised prior 1.2%) at 8:30ET -Initial Jobless Claims for the week ended Nov. 21 (consensus 500K; prior 505K) and Continuing Claims for the week ended Nov. 14 (consensus 5.565 mln; prior 5.611 mln) at 8:30ET -October Personal Spending (consensus 0.5%; prior -0.5%) and Personal Income (consensus 0.1%; prior 0.0%) at 8:30ET -Final November Michigan Sentiment around 9:55ET (consensus 67.0; prior 66.0) -October New Home Sales at 10:00ET (consensus 404K; prior 402K)
Federal Reserve/Treasury calendar: -None
Key Note/Bond auction results: -$32 bln in 7-year Notes at 13:00ET
Earnings: -No companies are confirmed to report today after the close