US midday: Stocks stabilise at lower levels

Date: Monday 13 Aug 2012

The US markets upward climb could be coming to an end if the morning session is anything to go by, although prices have stabilised at lower levels in thin trade.

Macro signs point south

Macro data has not been strong enough to encourage investors to continue chasing prices higher, with Friday's disappointing Chinese trade figures still on traders' minds, especially after Bank of America cut its forecast for Chinese growth.

The US bank is now predicting that the world's second largest economy will grow by 7.7% this year, down from its previous forecast of 8% growth.

The Japanese economy grew by just 0.3% in the second quarter on the back of weak consumer spending. Annualised growth was just 1.4% in the April-June period, well below the 5.5% growth the previous quarter and under the 2.3% expansion expected.

Greece's economy contracted by 6.2% in the second quarter, versus expectations of a 7% fall, leading to some pundits to suggest Greece is ready to pull out of its tailspin.

Tesoro in slick purchase

Oil refiner Tesoro has been shopping at BP's garage sale, paying around $2.5bn for BP's refinery and related assets in Carson, California. The shares are the best performers among S&P 500 constituents.

Internet giant Google is planning on eliminating around 4,000 jobs at its Motorola Mobility Holdings unit, equivalent to 20 per cent of the company it acquired last year for about $12.5bn.

Two-thirds of the cuts will take place outside of the United States, the firm explained, saying it expects severance-related costs of no more than $275m.

"These changes are designed to return Motorola’s mobile devices unit to profitability," Google said in a regulatory filing and added that the unit will place more emphasis on more innovative and profitable mobile devices.

Bank of America has hardened slightly after announcing it is selling its non-US wealth management operations to Swiss operator Julius Baer.

Retailer JC Penney is off the pace after Piper Jaffray cuts its rating on the stock to "neutral" from "overweight".

Solar panel First Solar is friendless after German peer SolarWorld lowered full-year guidance and reported a big second quarter loss.

Other markets

Crude oil futures have recouped earlier losses, with the September contract for West Texas light sweet crude down just 10 cents to $92.77 a barrel in New York.

Thirty-year Treasury yields declined three basis points (3/100 of a percentage point) to 2.72% as the Federal Reserve prepared to buy up to $2bn of longer-term debt today.

US 10-year Treasury yields also ebbed, sliding two basis points to 1.63%. Investors sought the surety of US government bonds following some ropey economic data from Japan and Greece.

S&P 500 - Risers
Tesoro Corp. (TSO) $38.92 +9.65%
Salesforce.Com Inc. (CRM) $146.00 +4.41%
Sysco Corp. (SYY) $29.99 +3.99%
Sears Holdings Corp. (SHLD) $53.39 +3.83%
Campbell Soup Co. (CPB) $34.28 +2.91%
International Paper Co. (IP) $33.74 +2.58%
DeVry Inc. (DV) $19.72 +2.55%
CareFusion Corp. (CFN) $26.94 +2.47%
Range Resources Corp. (RRC) $67.50 +2.07%

S&P 500 - Fallers
Brown Forman Corp. Class B (BF.B) $61.14 -33.67%
TripAdvisor Inc. (TRIP) $33.24 -5.30%
First Solar Inc. (FSLR) $20.33 -5.13%
Cliffs Natural Resources Inc. (CLF) $42.87 -4.54%
United States Steel Corp. (X) $22.42 -4.23%
Denbury Resources Inc. (DNR) $15.21 -3.92%
J.C. Penney Co. Inc. (JCP) $22.53 -3.72%
Helmerich & Payne Inc. (HP) $48.13 -3.59%
QEP Resources Inc (QEP) $26.98 -3.47%
NetApp Inc. (NTAP) $31.57 -3.10%

Dow Jones I.A - Risers
Walt Disney Co. (DIS) $49.73 +0.16%
Kraft Foods Inc. (KFT) $40.96 +0.10%

Dow Jones I.A - Fallers
E.I. du Pont de Nemours and Co. (DD) $49.90 -2.31%
Alcoa Inc. (AA) $8.80 -2.00%
Cisco Systems Inc. (CSCO) $17.32 -1.28%
Caterpillar Inc. (CAT) $87.80 -1.28%
United Technologies Corp. (UTX) $76.91 -1.26%
Intel Corp. (INTC) $26.59 -1.08%
Pfizer Inc. (PFE) $23.69 -1.04%

Nasdaq 100 - Risers
Sears Holdings Corp. (SHLD) $53.39 +3.83%
Google Inc. (GOOG) $653.54 +1.80%
Intuitive Surgical Inc. (ISRG) $506.63 +1.61%
VeriSign Inc. (VRSN) $47.32 +1.20%

Nasdaq 100 - Fallers
NetApp Inc. (NTAP) $31.57 -3.10%
Check Point Software Technologies Ltd. (CHKP) $50.48 -2.53%
Electronic Arts Inc. (EA) $12.75 -2.52%
Avago Technologies Ltd. (AVGO) $36.23 -2.48%
Research in Motion Ltd. (RIMM) $8.09 -2.41%
Nuance Communications Inc. (NUAN) $22.98 -2.34%
Monster Beverage Corp (MNST) $53.03 -2.28%
Dollar Tree Stores Inc. (DLTR) $49.69 -2.03%
Marvell Technology Group Ltd. (MRVL) $11.87 -1.98%
Activision Blizzard Inc. (ATVI) $11.41 -1.98%

JH

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