The markets extended its losses during the midday with the Dow dropping 79 points to 13,093 as first time applications for unemployment benefits unexpectedly rose. Nasdaq fell 10 points to 3062.
Maxim Group initiated coverage of StemCells (Nasdaq: STEM) with a Buy rating.
The Verge reported that Nokia (NYSE: NOK) and Microsoft (Nasdaq: MSFT) will introduce two Windows 8 phones at a September 5 event.
Hertz Global (NYSE: HTZ) contacted Dollar Thrifty (NYSE: DTG) shareholders to determine a fair price to acquire the rental car company.
On the downside
Credit Suisse downgraded Adtran (Nasdaq: ADTN) to an Underperform rating. Jefferies & Co. analyst Scott A. Mushkin downgraded Safeway (NYSE: SWY) to a Hold rating.
TechInAsia.com reported that Baidu (Nasdaq: BIDU) may sue Qihoo 360 (NYSE: QIHU) over its search engine.
In the broad market, declining issues outpaced advancers by a margin of nearly 5 to 3 on the NYSE and by more than 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks slipped 3 points to 809.
Thursday, August 23, 2012
Fed May Enact Further Stimulus, Markets Close Mixed
The markets closed mixed with the Dow losing 30 points to 13,172 as minutes from the Federal Reserve meeting indicated that another stimulus measure may be delivered in the near future. Nasdaq rose 6 points to 3073.
Williams-Sonoma (NYSE: WSM) reported higher second quarter earnings that topped analyst expectations and lifted its full year outlook.
Standard & Poor's revised its outlook on USG (NYSE: USG) from negative to stable.
The acquisition of Sunrise Senior Living (NYSE: SRZ) lifted shares of Brookdale Senior Living (NYSE: BKD).
On the downside
Sanford C. Bernstein downgraded TIM Participacoes (NYSE: TSU) to an Underperform rating. UBS downgraded Ferrellgas Partners (NYSE: FGP) to a Sell rating.
Shares of Yelp (NYSE: YELP) continued falling ahead of the expiration of its lockup period next week.
In the broad market, declining issues outpaced advancers by a margin of 3 to 2 on the NYSE and by more than 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks slipped 2 points to 812.
Williams-Sonoma (NYSE: WSM) reported higher second quarter earnings that topped analyst expectations and lifted its full year outlook.
Standard & Poor's revised its outlook on USG (NYSE: USG) from negative to stable.
The acquisition of Sunrise Senior Living (NYSE: SRZ) lifted shares of Brookdale Senior Living (NYSE: BKD).
On the downside
Sanford C. Bernstein downgraded TIM Participacoes (NYSE: TSU) to an Underperform rating. UBS downgraded Ferrellgas Partners (NYSE: FGP) to a Sell rating.
Shares of Yelp (NYSE: YELP) continued falling ahead of the expiration of its lockup period next week.
In the broad market, declining issues outpaced advancers by a margin of 3 to 2 on the NYSE and by more than 5 to 3 on Nasdaq. The Russell 2000 which tracks small cap stocks slipped 2 points to 812.
Jobless Claims Rise, Markets Fall
An unexpected gain in jobless claims weighed the markets down to a lower open with the Dow falling 65 points to 13,107. Nasdaq lost 11 points to 3062.
Aegis Capital initiated coverage of Rosetta Genomics (Nasdaq: ROSG) with a Buy rating.
Hain Celestial (Nasdaq: HAIN) reported sharply higher fourth quarter earnings that beat analyst expectations and announced that it will pay approximately $316 million in cash and stock to acquire the packaged grocery brands unit from Premier Foods.
Molibdenos Y Metales increased its holdings in Molycorp (NYSE: MCP) by 4.5 million shares to 17 million shares.
On the downside
Hewlett-Packard (NYSE: HPQ) fell to a significant loss for the third quarter and trimmed its full year outlook. Second quarter earnings dropped for Big Lots (NYSE: BIG) to miss expectations and the closeout retailer cut its full year guidance.
Guess (NYSE: GES) disappointed with lower second quarter earnings that fell short of expectations prompting the retailer to cut its full year forecast.
In the broad market, declining issues outpaced advancers by a margin of nearly 2 to 1 on the NYSE and by nearly 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks lost 4 points to 807.
Aegis Capital initiated coverage of Rosetta Genomics (Nasdaq: ROSG) with a Buy rating.
Hain Celestial (Nasdaq: HAIN) reported sharply higher fourth quarter earnings that beat analyst expectations and announced that it will pay approximately $316 million in cash and stock to acquire the packaged grocery brands unit from Premier Foods.
Molibdenos Y Metales increased its holdings in Molycorp (NYSE: MCP) by 4.5 million shares to 17 million shares.
On the downside
Hewlett-Packard (NYSE: HPQ) fell to a significant loss for the third quarter and trimmed its full year outlook. Second quarter earnings dropped for Big Lots (NYSE: BIG) to miss expectations and the closeout retailer cut its full year guidance.
Guess (NYSE: GES) disappointed with lower second quarter earnings that fell short of expectations prompting the retailer to cut its full year forecast.
In the broad market, declining issues outpaced advancers by a margin of nearly 2 to 1 on the NYSE and by nearly 5 to 2 on Nasdaq. The Russell 2000 which tracks small cap stocks lost 4 points to 807.
Average on 30-year US mortgage up to 3.66 percent
Average U.S. rates on fixed mortgages have risen for a fourth straight week, remaining slightly above record lows. Cheap mortgages have helped fuel a modest housing recovery this year.
Mortgage buyer Freddie Mac says the rate on the 30-year loan increased to 3.66 percent, up from 3.62 percent last week. Four weeks ago, the rate fell to 3.49 percent, the lowest since long-term mortgages began in the 1950s.
The average on the 15-year fixed mortgage, a popular refinancing option, edged up to 2.89 percent. That's up from 2.88 percent last week and from the record low of 2.8 percent four weeks ago.
The availability of low rates has lifted home sales higher this year. Prices also have increased, largely because the supply of homes has shrunk while sales have risen.
Builder confidence is also at its highest level since March 2007, according to a survey by the National Association of Home Builders.
The housing market's recovery will likely add to economic growth in 2012 for the first time in seven years. Home purchases, construction and prices are gradually but consistently increasing, though they remain far below levels seen in a healthy economy.
Sales of previously occupied homes rose 2.3 percent in July from June to a seasonally adjusted annual rate of 4.47 million, the National Association of Realtors reported this week. Over the past 12 months, sales have jumped more than 10 percent.
New-home sales have been strengthening, too. Sales in the United States rose 3.6 percent in July to match a two-year high reached in May, the Commerce Department said Thursday. The seasonally adjusted annual rate last month was 372,000, though still well below the 700,000 pace that economists consider healthy.
Toll Brothers, a builder of high-end homes, is enjoying its most sustained demand in more than five years.
All of which is a big change for the residential real estate industry, which has been a major drag on the economy since the housing bubble burst more than five years ago.
Still, the housing market has a long way to go to reach a full recovery. The pace of home sales remains well below healthy levels. Many people are still having difficulty qualifying for home loans or can't afford larger down payments required by banks.
Mortgage rates are low because they tend to track the yield on the 10-year Treasury note. A weaker U.S. economy and uncertainty about how Europe will resolve its debt crisis have led investors to buy more Treasury securities, which are considered safe investments. As demand for Treasurys increase, the yield falls.
To calculate average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.
The average does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for 30-year loans was 0.7 point, up from 0.6 point last week. The fee for 15-year loans also increased to 0.7 point from 0.6.
The average rate on one-year adjustable rate mortgages fell to 2.66 percent from 2.69 percent last week. The fee for one-year adjustable rate loans was unchanged at 0.4 point.
The average rate on five-year adjustable rate mortgages rose to 2.8 percent from 2.76 percent. The fee held steady at 0.6 point.
Mortgage buyer Freddie Mac says the rate on the 30-year loan increased to 3.66 percent, up from 3.62 percent last week. Four weeks ago, the rate fell to 3.49 percent, the lowest since long-term mortgages began in the 1950s.
The average on the 15-year fixed mortgage, a popular refinancing option, edged up to 2.89 percent. That's up from 2.88 percent last week and from the record low of 2.8 percent four weeks ago.
The availability of low rates has lifted home sales higher this year. Prices also have increased, largely because the supply of homes has shrunk while sales have risen.
Builder confidence is also at its highest level since March 2007, according to a survey by the National Association of Home Builders.
The housing market's recovery will likely add to economic growth in 2012 for the first time in seven years. Home purchases, construction and prices are gradually but consistently increasing, though they remain far below levels seen in a healthy economy.
Sales of previously occupied homes rose 2.3 percent in July from June to a seasonally adjusted annual rate of 4.47 million, the National Association of Realtors reported this week. Over the past 12 months, sales have jumped more than 10 percent.
New-home sales have been strengthening, too. Sales in the United States rose 3.6 percent in July to match a two-year high reached in May, the Commerce Department said Thursday. The seasonally adjusted annual rate last month was 372,000, though still well below the 700,000 pace that economists consider healthy.
Toll Brothers, a builder of high-end homes, is enjoying its most sustained demand in more than five years.
All of which is a big change for the residential real estate industry, which has been a major drag on the economy since the housing bubble burst more than five years ago.
Still, the housing market has a long way to go to reach a full recovery. The pace of home sales remains well below healthy levels. Many people are still having difficulty qualifying for home loans or can't afford larger down payments required by banks.
Mortgage rates are low because they tend to track the yield on the 10-year Treasury note. A weaker U.S. economy and uncertainty about how Europe will resolve its debt crisis have led investors to buy more Treasury securities, which are considered safe investments. As demand for Treasurys increase, the yield falls.
To calculate average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.
The average does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.
The average fee for 30-year loans was 0.7 point, up from 0.6 point last week. The fee for 15-year loans also increased to 0.7 point from 0.6.
The average rate on one-year adjustable rate mortgages fell to 2.66 percent from 2.69 percent last week. The fee for one-year adjustable rate loans was unchanged at 0.4 point.
The average rate on five-year adjustable rate mortgages rose to 2.8 percent from 2.76 percent. The fee held steady at 0.6 point.
Stocks climb from lows after Fed signals help
Investors drew some comfort Wednesday from signals that the Federal Reserve is worried about the slow pace of the U.S. economic recovery feels more urgency about providing help.
Stocks climbed back from lows after minutes from the last major Fed meeting were released. The Standard & Poor's 500 index, down most of the day, eked out a gain of 0.32 point to 1,413.49.
The Dow Jones industrial average closed down 30.82 at 13,172.76. It was down as much as 83 points earlier. The Nasdaq composite index added 6.41 points to 3,073.67.
The price of gold rose, as it sometimes does when investors think the Fed is about to pump money into the economy. Gold climbed $14 an ounce to $1,657, its highest level since early May, in trading after the day's official close.
When investors expect stimulus from the Fed, they sometimes buy gold in anticipation of a weaker dollar or because of inflation fears.
The minutes, from a meeting July 31 and Aug. 1, showed that "many members" of the Fed's Open Market Committee felt that additional action would be warranted unless the economic recovery shows "substantial and sustainable strengthening."
The minutes also showed that many officials favored pushing any increase in short-term interest rates beyond the Fed's current target of late 2014. Many economists think the target will be pushed to mid-2015.
Doug Cote, chief market strategist at ING Investment Management, wondered why the Fed needed to act. He said major economic data recently, including on jobs and consumer spending, have showed the recovery picking up.
"Why do an extraordinary form of stimulus in a moderately recovering economy?" he said.
On Wednesday, the National Association of Realtors reported that Americans bought more homes in July than in June and prices rose, evidence of a recovering housing market. The 2.3 percent increase in sales from June was the first gain in three months.
But the rate of home sales, at 4.47 million annually, was below the pace of April and May and well below the rate of roughly 5.5 million that economists consider healthy.
"The economic numbers haven't been robust, but they've been better lately," said Stephen Carl, principal and head equity trader at investment bank The Williams Capital Group.
The dollar fell sharply against most major currencies after the Fed minutes came out. Additional bond purchases by the Fed could push interest rates lower and weaken the dollar.
The euro rose to $1.2530 in late trading from $1.2467 late Tuesday. The euro jumped as high as $1.2538 after the minutes were released, its highest against the dollar since July 5.
European markets fell. Eurozone leaders met with their counterparts from Greece, which has asked for more time to meet its debt reduction targets.
The delay could set up a confrontation with Germany, which has been growing impatient. Germany's key stock index, the DAX, fell 1 percent, and France's CAC 40 slipped 1.5 percent.
Earlier in the day, Asian markets closed down after Japan posted a trade deficit for July, reversing a year-ago surplus and adding to signs of a global economic slowdown.
Japan's Nikkei 225 index shed 0.3 percent, while South Korea's Kospi dropped 0.4 percent and mainland China's Shanghai Composite Index slid 0.5 percent.
Bond traders have become skittish about the Asian slowdown and the debt crisis in Europe. Investors returned to the haven of U.S. Treasurys, sending the yield on the benchmark 10-year down to 1.72 percent from 1.81 percent late Tuesday.
Riding an improving housing market, high-end homebuilder Toll Brothers reported 46 percent growth in its quarterly net income after delivering more homes at higher prices to its customers. Its stock rose $1.20, close to 4 percent, to $33.01.
Toll Brothers caters to the luxury sector, which has withstood the economic downturn better than others. Its target market includes households that making more than $100,000 a year, with better credit and more job security.
The Commerce Department reported last week that applications for building permits rose to their highest level since August 2008, which signals that construction companies are growing more confident about the housing landscape.
Other homebuilder stocks also made big gains: PulteGroup gained 50 cents, or close to 4 percent, at $13.29 and Lennar rose $1.17, or close to 4 percent, at $32.35.
Among other stocks making big moves Wednesday:
-Dell slumped more than 5 percent and traded near a 52-week low. It was the worst-performing stock in the S&P 500. The computer maker said PC sales remained weak in its fiscal second quarter, and it forecast a disappointing third quarter and lowered its full-year profit forecast. Its stock slid 66 cents to $11.68.
-Williams-Sonoma jumped close 12 percent after the kitchen and home store chain reported a 10 percent jump in profit. Its stock rose $4.45 to $42.68.
-Fifth Third Bancorp's stock shot to a 52-week high after the Fed allowed the bank to raise its dividend and buy back more of its own stock. The Cincinnati regional bank's stock was up 3 percent to $14.81, a jump of 42 cents. The stock had reached $15.02 in morning trading, a high for the past year.
-Discover Financial Services stock gained 4 percent, or $1.43, to $38.43 after announcing a partnership with PayPal. More than 7 million stores that take Discover cards will be able to process PayPal payments beginning next year.
Stocks climbed back from lows after minutes from the last major Fed meeting were released. The Standard & Poor's 500 index, down most of the day, eked out a gain of 0.32 point to 1,413.49.
The Dow Jones industrial average closed down 30.82 at 13,172.76. It was down as much as 83 points earlier. The Nasdaq composite index added 6.41 points to 3,073.67.
The price of gold rose, as it sometimes does when investors think the Fed is about to pump money into the economy. Gold climbed $14 an ounce to $1,657, its highest level since early May, in trading after the day's official close.
When investors expect stimulus from the Fed, they sometimes buy gold in anticipation of a weaker dollar or because of inflation fears.
The minutes, from a meeting July 31 and Aug. 1, showed that "many members" of the Fed's Open Market Committee felt that additional action would be warranted unless the economic recovery shows "substantial and sustainable strengthening."
The minutes also showed that many officials favored pushing any increase in short-term interest rates beyond the Fed's current target of late 2014. Many economists think the target will be pushed to mid-2015.
Doug Cote, chief market strategist at ING Investment Management, wondered why the Fed needed to act. He said major economic data recently, including on jobs and consumer spending, have showed the recovery picking up.
"Why do an extraordinary form of stimulus in a moderately recovering economy?" he said.
On Wednesday, the National Association of Realtors reported that Americans bought more homes in July than in June and prices rose, evidence of a recovering housing market. The 2.3 percent increase in sales from June was the first gain in three months.
But the rate of home sales, at 4.47 million annually, was below the pace of April and May and well below the rate of roughly 5.5 million that economists consider healthy.
"The economic numbers haven't been robust, but they've been better lately," said Stephen Carl, principal and head equity trader at investment bank The Williams Capital Group.
The dollar fell sharply against most major currencies after the Fed minutes came out. Additional bond purchases by the Fed could push interest rates lower and weaken the dollar.
The euro rose to $1.2530 in late trading from $1.2467 late Tuesday. The euro jumped as high as $1.2538 after the minutes were released, its highest against the dollar since July 5.
European markets fell. Eurozone leaders met with their counterparts from Greece, which has asked for more time to meet its debt reduction targets.
The delay could set up a confrontation with Germany, which has been growing impatient. Germany's key stock index, the DAX, fell 1 percent, and France's CAC 40 slipped 1.5 percent.
Earlier in the day, Asian markets closed down after Japan posted a trade deficit for July, reversing a year-ago surplus and adding to signs of a global economic slowdown.
Japan's Nikkei 225 index shed 0.3 percent, while South Korea's Kospi dropped 0.4 percent and mainland China's Shanghai Composite Index slid 0.5 percent.
Bond traders have become skittish about the Asian slowdown and the debt crisis in Europe. Investors returned to the haven of U.S. Treasurys, sending the yield on the benchmark 10-year down to 1.72 percent from 1.81 percent late Tuesday.
Riding an improving housing market, high-end homebuilder Toll Brothers reported 46 percent growth in its quarterly net income after delivering more homes at higher prices to its customers. Its stock rose $1.20, close to 4 percent, to $33.01.
Toll Brothers caters to the luxury sector, which has withstood the economic downturn better than others. Its target market includes households that making more than $100,000 a year, with better credit and more job security.
The Commerce Department reported last week that applications for building permits rose to their highest level since August 2008, which signals that construction companies are growing more confident about the housing landscape.
Other homebuilder stocks also made big gains: PulteGroup gained 50 cents, or close to 4 percent, at $13.29 and Lennar rose $1.17, or close to 4 percent, at $32.35.
Among other stocks making big moves Wednesday:
-Dell slumped more than 5 percent and traded near a 52-week low. It was the worst-performing stock in the S&P 500. The computer maker said PC sales remained weak in its fiscal second quarter, and it forecast a disappointing third quarter and lowered its full-year profit forecast. Its stock slid 66 cents to $11.68.
-Williams-Sonoma jumped close 12 percent after the kitchen and home store chain reported a 10 percent jump in profit. Its stock rose $4.45 to $42.68.
-Fifth Third Bancorp's stock shot to a 52-week high after the Fed allowed the bank to raise its dividend and buy back more of its own stock. The Cincinnati regional bank's stock was up 3 percent to $14.81, a jump of 42 cents. The stock had reached $15.02 in morning trading, a high for the past year.
-Discover Financial Services stock gained 4 percent, or $1.43, to $38.43 after announcing a partnership with PayPal. More than 7 million stores that take Discover cards will be able to process PayPal payments beginning next year.
China fuel prices hit trigger point for another hike
Aug 22 (Reuters) - China, the world's second-largest oil consumer, may consider raising the prices of gasoline and diesel again next month as a basket of crude oil prices has risen to hit a trigger point, data from an energy consultancy showed.
The 22-day moving average price of Brent, Dubai and Cinta on August 21 was 4.25 percent above the level when China last raised fuel prices, data from C1 Energy showed on Wednesday.
But the government may only consider such a move in mid-Septemper, about a month after Beijing's last hike on August 10, under the current one-month review period.
An increase in crude benchmarks by more than 4 percent over a 22-working-day period typically triggers a hike under China's current pricing regime, although the government often postpones any rise if it is worried about inflationary pressures.
China's annual consumer inflation fell to a 30-month low of 1.8 percent in July from June's 2.2 percent.
China has been considering a revamp of the current fuel pricing scheme to better reflect refining costs, with plans to lower the trigger point, shorten the adjustment period and change the composition of the basket of crudes to which pump prices are linked.
The 22-day moving average price of Brent, Dubai and Cinta on August 21 was 4.25 percent above the level when China last raised fuel prices, data from C1 Energy showed on Wednesday.
But the government may only consider such a move in mid-Septemper, about a month after Beijing's last hike on August 10, under the current one-month review period.
An increase in crude benchmarks by more than 4 percent over a 22-working-day period typically triggers a hike under China's current pricing regime, although the government often postpones any rise if it is worried about inflationary pressures.
China's annual consumer inflation fell to a 30-month low of 1.8 percent in July from June's 2.2 percent.
China has been considering a revamp of the current fuel pricing scheme to better reflect refining costs, with plans to lower the trigger point, shorten the adjustment period and change the composition of the basket of crudes to which pump prices are linked.
Oil prices up on hopes for US central bank action
The price of oil is rising for a second day after signs that the Federal Reserve may take additional action to help the sluggish economic recovery in the U.S.
Strong economic news tends to boost oil prices because it's a sign that demand will rise. Benchmark oil rose 39 cents, or 0.4 percent, to $97.65 per barrel Thursday in New York.
The price of natural gas is lower after a government report showed that more gas went into storage than analysts expected. The price fell 4 percent to $2.71 per 1,000 cubic feet.
At the pump, the national average for gasoline rose less than a penny overnight to $3.718 per gallon. That's about a quarter more than a month ago.
Heating oil is up 2 cents to $3.16 per gallon.
Strong economic news tends to boost oil prices because it's a sign that demand will rise. Benchmark oil rose 39 cents, or 0.4 percent, to $97.65 per barrel Thursday in New York.
The price of natural gas is lower after a government report showed that more gas went into storage than analysts expected. The price fell 4 percent to $2.71 per 1,000 cubic feet.
At the pump, the national average for gasoline rose less than a penny overnight to $3.718 per gallon. That's about a quarter more than a month ago.
Heating oil is up 2 cents to $3.16 per gallon.
Crude Oil Sold on Japan Export Drop, Gold Supported Before Fed Minutes
Crude Oil, Copper Follow Stocks Down as Japanese Export Slump Dents Sentiment
Gold and Silver Find Support on QE3 Speculation Before FOMC Minutes Release
Growth-sensitive crude oil and copper prices are following stocks lower in European trade in the wake of disappointing Japanese Trade Balance figures . The report showed exports fell at an annual pace of 8.1 percent in July, marking the largest drop in six months. Japan is the world's fourth-largest exporter and markets appear to have interpreted the sharp decline in overseas sales in terms of its implications for slowing global demand.
While risk aversion would typically be expected to boost demand for the safe-haven US Dollar and thereby extend selling pressure to gold and silver , the precious metals holding their own this time around. Support comes courtesy of speculation about Federal Reserve QE3 as markets gear up for the release of minutes from Augusts' FOMC meeting. Investors will pick apart the text for clues about the possibility of more stimulus being unveiled in the coming weeks, either at the Jackson Hole symposium on August 31 or policymakers' next sit-down in mid-September.
S&P 500 stock index futures are pointing firmly lower, hinting the risk-off mood is likely to carry forward as Wall Street comes online. This suggests oil and copper are likely to remain under pressure for now, although a dovish lean from Fed officials is likely to boost sentiment and force a recovery. Needless to say, such a result would add fuel to gold and silver's upward push. On the other hand, a set of minutes that doesn't materially advance the case for further accommodation may prove disappointing, forcing the anti-fiat metals to play catch-up to the downside.
WTI Crude Oil (NY Close): $96.84 // +0.58 // +0.60%
Prices are testing resistance at 97.82, the 61.8% Fibonacci retracement, with a break higher exposing a falling trend line set from the late-February swing top now at 99.30. This barrier is reinforced by the psychologically significant $100/barrel figure. Near-term support is at 95.41, the February 2 low, with a drop back below that targeting the 50% Fib at 93.90.
Spot Gold (NY Close): $16 37 . 80 // + 17 . 30 // + 1 . 07 %
Prices breached key resistance in the 1620.45-35.70 congestion area, exposing a major falling trend set from the August 23 2011 peak, now at 1664.47, as the next upside objective. A break above this barrier would mark a significant bullish trend development and initially open the door for a challenge of 1680.00. The 1620.45-35.70 area has been recast as near-term support.
Spot Silver (NY Close): $2 9 . 31 // +0. 53 // + 1 . 82 %
Prices are testing above resistance in the 29.28-42 area marked by the June 6 close and the 23.6% Fibonacci retracement. A break through this barrier exposes the 30.00 figure, followed by the 30.69-85 region defined by the 38.2% Fib and a pivot anchored at the November 21 2011 swing low. Near-term support is at 28.44, with a push below that targeting 27.68.
COMEX E-Mini Copper (NY Close) : $3.454 // +0.082 // +2.43%
Prices broke resistance at a falling trend line set from the April 3 high to challenge a horizontal barrier at 3.442, with a break above that exposing 3.535. The trend line, now at 3.416, has been recast as near-term support. A move back below that aims for a shorter-term rising line set from the August 2 low, now at 3.365.
Oil prices dip as traders eye Europe crisis talks
LONDON (AP) — The price of oil fell Wednesday as investors kept one eye on Europe's efforts to solve its debt crisis and the other on the potential for Middle East tensions to disrupt supply.
Benchmark crude for October delivery fell 33 cents to $96.53 per barrel in midday trading in London in electronic trading on the New York Mercantile Exchange. The contract finished 71 cents higher at $96.68 in New York on Tuesday.
Greece's prime minister will meet will key European leaders this week to ask for more time to meet deficit reduction targets. The country's continued access to bailout funds depends on the negotiations.
Traders also awaited the release of minutes from the Federal Reserve's previous policy meeting for signs that it might lower interest rates. Lower rates tend to drive oil prices because they steer investors away from less-risky investments.
Analysts at Goldman Sachs, meanwhile, said tightening supplies and oil-producing Iran's standoff with the West over its nuclear program were factors to be considered in the direction of oil prices.
"In our view, it is only a matter of time before inventories and OPEC spare capacity become effectively exhausted, requiring higher oil prices to restrain demand, keeping it in line with available supply. Further, as tensions between Iran and the West escalate, the risk to crude oil prices is becoming increasingly skewed to the upside," the analysts said in an email commentary.
Brent crude, which is used to price international varieties of oil, fell 68 cents to $113.96 per barrel on the ICE Futures exchange in London.
In other futures trading on the Nymex, heating oil was down 0.2 cents to $3.11 a gallon. Natural gas was 4 cents higher $2.81 per 1,000 cubic feet.
Benchmark crude for October delivery fell 33 cents to $96.53 per barrel in midday trading in London in electronic trading on the New York Mercantile Exchange. The contract finished 71 cents higher at $96.68 in New York on Tuesday.
Greece's prime minister will meet will key European leaders this week to ask for more time to meet deficit reduction targets. The country's continued access to bailout funds depends on the negotiations.
Traders also awaited the release of minutes from the Federal Reserve's previous policy meeting for signs that it might lower interest rates. Lower rates tend to drive oil prices because they steer investors away from less-risky investments.
Analysts at Goldman Sachs, meanwhile, said tightening supplies and oil-producing Iran's standoff with the West over its nuclear program were factors to be considered in the direction of oil prices.
"In our view, it is only a matter of time before inventories and OPEC spare capacity become effectively exhausted, requiring higher oil prices to restrain demand, keeping it in line with available supply. Further, as tensions between Iran and the West escalate, the risk to crude oil prices is becoming increasingly skewed to the upside," the analysts said in an email commentary.
Brent crude, which is used to price international varieties of oil, fell 68 cents to $113.96 per barrel on the ICE Futures exchange in London.
In other futures trading on the Nymex, heating oil was down 0.2 cents to $3.11 a gallon. Natural gas was 4 cents higher $2.81 per 1,000 cubic feet.
Crude Oil Prices Down After Weak Japan Data
Japan's wider-than-expected trade deficit sends oil prices lower
Market participants look to Fed minutes, U.S. EIA data on crude inventories
Tension in the Middle East means this price dip likely to be temporary, analysts say
Focus on upcoming meetings between Greece's prime minister, EU leaders
LONDON--Crude oil futures were lower Wednesday after Japan reported a wider-than-expected trade deficit, a worrying sign for the export-reliant economy that is the third largest oil consumer in the world behind the U.S. and China.
Iran discounts U.S. bid to lower oil prices by tapping into reserves
Iran’s OPEC representative has dismissed renewed U.S. threat to tap into its strategic oil reserves in a bid to bring down global crude prices as a ploy with short-term impact, predicting further price hikes in fall and winter seasons.
Iran’s representative to the Organization of Petroleum Exporting Countries (OPEC) Seyyed Mohammad Ali Khatibi insisted on Tuesday that the fresh U.S. threat to open its strategic reserves in an attempt to reduce the steadily climbing oil prices in global markets would definitely not lead to declining crude prices in the long run.
The Iranian official further pointed out that the U.S. would ultimately have to replenish its strategic reserves by importing greater amounts of oil, leading to an increasing demand for the key energy source and higher crude prices.
Khatibi, however, emphasized that the U.S. has not yet acted on its threat and that the OPEC may decide on a retaliatory measure in case the American government moves ahead with the plan.
Meanwhile, he said the foremost reason behind the recent hike in crude prices was concern by major consumers about uninterrupted supplies of the product.
He also described geopolitical developments in the Persian Gulf region and the Middle East, as well as reduced oil production level in the North Sea region, as other reasons contributing to the increase in this summer’s crude price.
Global oil prices hit a new high on Monday, with New York's main contract, West Texas Intermediate (WTI) light sweet crude, reaching the highest level in the past 3.5 months amid renewed rhetorical threats by the Israeli regime about waging war on Iran.
New York's main contract for delivery in September soared as high as USD 96.53 a barrel -- the highest level since May 11.
In London midday deals, Brent North Sea crude for October delivery increased by 66 cents to USD 114.37 a barrel.
Crude prices have been increasing following illegal U.S. sanctions on Iran’s energy sector and persisting Israeli publicity campaign, threatening unilateral military strikes against Iran.
Iran’s representative to the Organization of Petroleum Exporting Countries (OPEC) Seyyed Mohammad Ali Khatibi insisted on Tuesday that the fresh U.S. threat to open its strategic reserves in an attempt to reduce the steadily climbing oil prices in global markets would definitely not lead to declining crude prices in the long run.
The Iranian official further pointed out that the U.S. would ultimately have to replenish its strategic reserves by importing greater amounts of oil, leading to an increasing demand for the key energy source and higher crude prices.
Khatibi, however, emphasized that the U.S. has not yet acted on its threat and that the OPEC may decide on a retaliatory measure in case the American government moves ahead with the plan.
Meanwhile, he said the foremost reason behind the recent hike in crude prices was concern by major consumers about uninterrupted supplies of the product.
He also described geopolitical developments in the Persian Gulf region and the Middle East, as well as reduced oil production level in the North Sea region, as other reasons contributing to the increase in this summer’s crude price.
Global oil prices hit a new high on Monday, with New York's main contract, West Texas Intermediate (WTI) light sweet crude, reaching the highest level in the past 3.5 months amid renewed rhetorical threats by the Israeli regime about waging war on Iran.
New York's main contract for delivery in September soared as high as USD 96.53 a barrel -- the highest level since May 11.
In London midday deals, Brent North Sea crude for October delivery increased by 66 cents to USD 114.37 a barrel.
Crude prices have been increasing following illegal U.S. sanctions on Iran’s energy sector and persisting Israeli publicity campaign, threatening unilateral military strikes against Iran.
Europe Gasoline/Naphtha-Prices edge higher with oil
Wed Aug 22, 2012 12:45pm EDT
LONDON, Aug 22 (Reuters) - Gasoline barge prices in
northwest Europe edged higher on Wednesday, boosted by late
gains in crude oil and a larger-than-expected draw in U.S.
gasoline stocks.
U.S. government data showed gasoline inventories had fallen
962,000 barrels last week to 202.74 million barrels, against
analyst expectations of a 700,000 barrel draw. The fall in
stocks could help revive imports.
Traders said a lack of prompt supply was also supporting the
spot market.
"There is not a lot of oil about and good demand, into west
Africa, Mexico, etc," said a gasoline trader.
Traders are hoping for a recovery in exports to West Africa,
where pressure on the Nigerian government is mounting to resume
subsidy payments for fuel.
Many private fuel importers have stopped importing gasoline
because the government is holding up payments.
Nigeria's capital city suffered severe fuel shortages on
Wednesday, as a union halted deliveries and threatened to cut
supplies to the rest of the country by Friday.
"We shall see if that will actually be realised," said a
gasoline trader, doubtful that a resolution was in sight.
A parliamentary probe found corruption in Nigeria's fuel
subsidy scheme cost the country $6.8 billion in three years, but
efforts to end subsidies have been in vain.
Naphtha is still seeing steady demand from petrochemical
companies in Europe, which are switching away from rival
feedstock propane. The propane/naphtha spread has flipped into
positive territory, with propane cargoes trading at a $10
premium to naphtha for September.
GASOLINE
* Five Eurobob barges traded in the window at $1,094-$1,06 a
tonne fob ARA, while a sixth for delivery at later dates in
September traded at $1,088 a tonne fob ARA.
* Prices were at the upper end of Tuesday's $1,090-$1,094 a
tonne fob ARA range.
* Seven barges traded ahead of the window at $1,094-$1,06 a
tonne fob ARA. Trafigura, Cargill and Glencore bought from
Gunvor, Hess, Chevron and Vitol.
* Eurobob's crack to dated Brent BFO- was at $14.56 a
barrel at 1626 GMT, steady from the previous close.
* Three barges of premium unleaded gasoline traded in the
window, two at $1,120 a tonne fob ARA and one at $1,108 a tonne
fob ARA. Prices were up from $1,107-$1,111 a tonne fob ARA the
previous session.
* Statoil sold the barges to Total and Vitol.
* ICE Brent crude futures were up 17 cents at
$114.81 a barrel around the same time.
* September U.S. RBOB gasoline futures were up 0.74
percent at $3.0879 a gallon around the same time.
LONDON, Aug 22 (Reuters) - Gasoline barge prices in
northwest Europe edged higher on Wednesday, boosted by late
gains in crude oil and a larger-than-expected draw in U.S.
gasoline stocks.
U.S. government data showed gasoline inventories had fallen
962,000 barrels last week to 202.74 million barrels, against
analyst expectations of a 700,000 barrel draw. The fall in
stocks could help revive imports.
Traders said a lack of prompt supply was also supporting the
spot market.
"There is not a lot of oil about and good demand, into west
Africa, Mexico, etc," said a gasoline trader.
Traders are hoping for a recovery in exports to West Africa,
where pressure on the Nigerian government is mounting to resume
subsidy payments for fuel.
Many private fuel importers have stopped importing gasoline
because the government is holding up payments.
Nigeria's capital city suffered severe fuel shortages on
Wednesday, as a union halted deliveries and threatened to cut
supplies to the rest of the country by Friday.
"We shall see if that will actually be realised," said a
gasoline trader, doubtful that a resolution was in sight.
A parliamentary probe found corruption in Nigeria's fuel
subsidy scheme cost the country $6.8 billion in three years, but
efforts to end subsidies have been in vain.
Naphtha is still seeing steady demand from petrochemical
companies in Europe, which are switching away from rival
feedstock propane. The propane/naphtha spread has flipped into
positive territory, with propane cargoes trading at a $10
premium to naphtha for September.
GASOLINE
* Five Eurobob barges traded in the window at $1,094-$1,06 a
tonne fob ARA, while a sixth for delivery at later dates in
September traded at $1,088 a tonne fob ARA.
* Prices were at the upper end of Tuesday's $1,090-$1,094 a
tonne fob ARA range.
* Seven barges traded ahead of the window at $1,094-$1,06 a
tonne fob ARA. Trafigura, Cargill and Glencore bought from
Gunvor, Hess, Chevron and Vitol.
* Eurobob's crack to dated Brent BFO- was at $14.56 a
barrel at 1626 GMT, steady from the previous close.
* Three barges of premium unleaded gasoline traded in the
window, two at $1,120 a tonne fob ARA and one at $1,108 a tonne
fob ARA. Prices were up from $1,107-$1,111 a tonne fob ARA the
previous session.
* Statoil sold the barges to Total and Vitol.
* ICE Brent crude futures were up 17 cents at
$114.81 a barrel around the same time.
* September U.S. RBOB gasoline futures were up 0.74
percent at $3.0879 a gallon around the same time.
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