** US WRAP **
January 31st, 2006| ** US MARKETS ** | ||||||
| Dow -0,32%; Nasdaq -0,04%; S&P -0,4%; Soxx -1,44%; Russel2k 0,32%; DJAIG -0,32%; 10yr Bond -0,04%; 10yr Yield 4,52%; Crude future 67,77; Gold 569,45 | ||||||
| | Materials 0,12%| Utilities 0,11%| Healthcare 0,01%| ConsDisc -0,3%| Industrials -0,39%| Financials -0,4%| ConsStaples -0,52%| Telecom -0,57%| Energy -0,67%| Technology -0,74% | ||||||
** TRADING HEADLINES **
- Oil Falls as OPEC Maintains Production Policy, Letting Stockpiles Increase
- Gold Prices Climb to 25-Year High Amid Concerns About Iran, Middle East
- Soybean Prices Fall; Rain in Argentina, Brazil May Ease Crop-Yield Concern
- Copper Rises Close to a Record in London as World Demand Outpaces Supply
- Zinc Rises to Record in London; Mining Disruptions May Deepen Shortage
- Sugar May Be in a `Bubble’ After Reaching Multi-Year Highs, Sucden Says
- Google Profit Rises 82 Percent on Holiday Ads Linked to Web-Search Results
- Fed Raises Rates, Drops View for `Measured’ Increases to Cap Greenspan Era
- U.S. Stocks Trim January Advance After Fed Raises Rates; Google Declines
- Allstate’s Net Income Falls 8.8 Percent on Claims After Hurricane Wilma
- Merck, Wyeth Sales Stagnate as Competition Erodes Demand for Leading Drugs
- Altria’s Profit Rises 18 Percent on Overseas Sales, Higher Marlboro Prices
** FED STATEMENT **
The Fed hiked to 4.5% as was widely expected and suggested the run of increases is still not finished. Going over the statement, the Fed dropped ‘measured’ from the statement which was in there since May 2004. Further the Fed substituted ‘is likely to be needed’ by ‘may be needed’ with regards to further rate increases. The bond market hardly reacted on the move, with ten year yields dropping about 1bp. What got less media attention though was that the yield curve (10-2 yr) moved near the point of inversion again.
** AFTER HOURS **
- Google dropped 15% after the company announced Q4 net income excluding one-time items was $1.54 p/s, short of the $1.76 consensus number.
- Symantec dropped 5% after hours following an inline Q3 report but disappointing forecast.
** IN PLAY WEDNESDAY **
On the macro calendar Wednesday are Mortgage applications (13:00 CET) followed by Construction Spending and ISM Manufacturing (16:00 CET). Among the companies reporting before the market open are Time Warner, Devon Energy and Boeing. After the market close we’ll see reports of amongst others JDS Uniphase, Starbucks, Anheuser Busch and Boston Scientific.