Markets Higher Closing News 12/6/2012

Stocks closed higher in a volatile session today, with most of the upside move coming in the last half hour of trading ahead of tomorrow’s jobs report.  Gains were capped to the upside as no new information was delivered regarding fiscal cliff discussions.  Shares started the day lower following reports out of Europe that showed their economy shrank in the third quarter.  In the US, fewer workers filed for jobless claims.  Money moved from industrials and utilities today into technology and consumer related stocks.  The Dow closed up 39.55 points to 13,074.04.


Jobless claims decreased by 25,000 to 370,000 in the week ended Dec. 1.  The median forecast called for a drop to 380,000. Data tomorrow is forecast to show U.S. payrolls rose by 86,000 workers last month, the smallest gain since June, according to the median forecast of economists.


The euro weakened against the green back after Draghi’s remarks signaled that the ECB may consider interest-rate cuts.  The ECB stated that their economy will shrink 0.5 percent this year, more than the 0.4 percent contraction it had predicted in September. It cut its 2013 forecast to a contraction of 0.3 percent from 0.5 percent growth, and projected expansion of 1.2 percent in 2014.


Household wealth in the U.S. climbed in the third quarter, reflecting increases in stock values and home prices that are helping boost consumer confidence.  Net worth for households and non-profit groups increased by $1.72 trillion from July through September, or 2.7 percent from the previous three months, to $64.8 trillion, the Federal Reserve said today from Washington in its flow of funds report.


Susser Holdings Corporation (NASDAQ: SUSS) announced that it has received authorization from the New York Stock Exchange (NYSE) to transfer the listing of its common stock to the NYSE.  The Company expects its common stock to begin trading on the NYSE on Friday, December 21.  “We are very pleased to join other strong, growing retail and energy companies trading on the New York Stock Exchange,” said Sam L. Susser, Susser Holdings President and Chief Executive Officer. “Given our exceptional operating results in recent years, the accelerated expansion of our convenience store business, the increased float and the growing institutional participation in our stock, we believe the time is right to make this transition to the world’s largest stock exchange. “


Have a good Thursday night!                                                                                            


Market Indices/Statistics:

  • Dow closed up 39.55 pts/+0.30% to 13,074.04; 22 of the 30 Dow stocks closed higher

  • S&P closed up 4.66 pts/+0.33% to 1,413.94;  7 of the 10 S&P 500 sectors closed higher

  • Nasdaq closed up 15.57 pts/-0.52% to 2,989.27

  • Technology was  the most positive sector (+0.83%); the most negative sector was Utilities (-0.19%)

  • The VIX ended up 0.12 to 16.58

  • Oil is down $1.49  to $86.39

  • Nat Gas closed down $0.056 to $3.644

  • Gold is up $6.80 to $1,700.60

  • Euro vs. Dollar is down 0.0097 to $1.2969

  • Dollar vs. Yen is down $0.08 at $82.38



Top Headlines:


Cincinnati Financial (CINF, +$0.09/+0.22% to $40.61) won't be changing its dividend policy due to any tax hikes, CEO Steve Johnston tells conference-goers, noting a sizable number of the firm's investors are immune to taxes. CFO Mike Sewell says the insurer's relatively large (25%) allocation to equities is paying off, and the firm is sitting on $1B in unrealized portfolio gains.


Treasury 10-year note yields dipped to a more than a two-week low amid speculation that U.S. employment is floundering.  Investors moved money into the safer asset before a Labor Department report tomorrow that economists said will show U.S. non-farm payrolls rose by 86,000 in November, the smallest gain since June. Treasuries were also supported by ECB President Mario Draghi who said economic weakness in the region will continue.  Gold rebounded from a four-week low following Draghi’s comments as he left the door open for further rate cuts to boost the region’s economy.


Best Buy (BBY + 0.28/2.32% to $12.36) shares were higher today  following reports indicating that Richard Schulze is looking to buy the company with the help of private equity dollars.  Some analysts were concerned that the lower cash flow forecast from the retailer would have caused potential buyers to pass on the deal. 


Gasoline prices continue to slide, as the AAA Fuel Gauge puts the average U.S. price for regular gas at $3.379/gal. vs. $3.409 a week ago and $3.463 a month ago. Especially noteworthy is the drop in some of the most populous states, such as $3.678 in California and $3.846 in New York. With crude prices tumbling, fuel prices could keep heading lower.




Palo Alto Networks (PANW): FQ1 EPS of $0.04 beats by $0.01. Revenue of $85.9M (+50% Y/Y) beats by $2M.


Esterline Technologies (ESL): FQ4 EPS of $1.97 beats by $0.37. Revenue of $530.7M (+6% Y/Y) beats by $7M


Cooper Companies (COO): FQ4 EPS of $1.47 misses by $0.08. Revenue of $396.3M (+10% Y/Y) in-line.


Flow International (FLOW): FQ2 EPS of $0.04 misses by $0.02. Revenue of $67M (+4% Y/Y) in-line.


Smith & Wesson Holding (SWHC): FQ2 EPS of $0.24 in-line. Revenue of $136.5M (+48% Y/Y) beats by $2M.


Coming Friday:


Economic Reports:  Change in Nonfarm Payrolls  (Est. 86k) 8:30am;  Change in Private Payrolls (Est. 90k) 8:30am;  Change in Manufact. Payrolls (Est. -3k) 8:30am; Unemployment Rate for Nov. (Est. 7.9%); U. of Michigan Confidence (Est. 82.0) 8:30am; Consumer Credit for Oct. (Est. $10.000 bill.)8:30am.


Earnings Friday:   Bank of Nova Scotia (Est. $1.18); KMG Chemicals (Est. $0.31). 




Carmen Barone

Corporate Actions & Market Watch

Global Corporate Client Group

NYSE Euronext