US mid-morning: Economic data buoys stocks
Posted on: 19 Nov 2012 by Polly York

-US home inventories at February 2006 lows
-NAHB housing index rises far above forecasts
-Wal Mart brings forward dividend payments

Dow Jones Industrials: 1.23%
Nasdaq Comp.: 1.57%
S&P 500: 1.48%

The main US equity market averages are now registering large gains, of well over 1 per cent on average, on the back of remarks by President Obama, last night, regarding his optimism over on-going debt talks with Republicans in both the House and the Senate.

Speaking at a press conference in Bangkok he said, ‘I am confident we can get our fiscal situation dealt with.’

Similarly, the news-flow coming out of the Eurozone today seems to have taken a turn for the better.

Of interest, the combination of falling stocks and rising profits as the economy recovers has left the S&P 500′s price-earnings ratio below the ending level of eight of the nine bull markets since 1962 and beneath the average of any since Ronald Reagan was in power, Bloomberg is reporting.

Wal Mart brings forward dividend payments

Meantime, and in stock specific news, Intel Chief Executive Officer Paul Otellini has announced his departure.

Of interest, Wal Mart has brought forward the date of its next regular dividend to the next 27th of December, instead of January 2nd, so as to avoid the new legislation governing the taxation of dividends.

Shares of meat processor Tyson Foods rose sharply after the company announced a special dividend and posted fiscal fourth-quarter earnings which beat analysts’ estimates.

Cisco Systems will acquire Meraki for $1.2bn.

The latest quarterly results out from home improvement retailer Lowe’s also came in ahead of analysts’ consensus forecasts, on the back of strong demand for its wares in the aftermath of hurricane Sandy.

Analysts at Bank of America Merrill Lynch have lowered their price target on shares of Apple to $780 from $840 before, albeit while maintaining their view on the company’s shares at buy.

Better than expected economic figures

Existing home sales rose by 2.1% month-on-month in October, to an annualized rate of 4.79m (Consensus: 4.75m). The previous month’s reading was revised down to 4.69m from a preliminary reading go 4.75m. Worth noting, inventories of homes for sale fell to February 2006 lows.

The NAHB’s housing market index for the month of November has risen to 46 points, from 41 in the month before (Consensus: 41). Economists at Barclays Research were of the following opinion: ‘Home builder sentiment has been moving higher throughout the recent housing recovery and we expect this trend to continue.’

Large rise in energy quotes

Front month West Texas crude futures are rising by $2.315 to the $88.99 barrel mark on the NYMEX.

10 year US Treasury yields are now 4 basis points higher, at 1.62%.

S&P 500 – Risers
Tyson Foods Inc. (TSN) $18.34 +8.65%
Lowe’s Companies Inc. (LOW) $34.19 +6.91%
Lexmark International Inc. (LXK) $24.50 +6.04%
Tesoro Corp. (TSO) $40.21 +5.62%
Apple Inc. (AAPL) $556.77 +5.51%
Phillips 66 Common Stock (PSX) $47.93 +4.72%
Agilent Technologies Inc. (A) $37.48 +4.66%
Genworth Financial Inc. (GNW) $5.62 +4.46%
LSI Corporation (LSI) $6.69 +4.37%
United States Steel Corp. (X) $20.90 +4.19%

S&P 500 – Fallers
Progressive Corp. (PGR) $21.58 -4.30%
Cliffs Natural Resources Inc. (CLF) $34.43 -2.55%
Intuit Inc. (INTU) $58.54 -1.25%
Edwards Lifesciences Corp. (EW) $84.83 -1.06%
R.R. Donnelley & Sons Co. (RRD) $9.10 -0.98%
Monster Beverage Corp (MNST) $45.07 -0.88%
Pinnacle West Capital Corp. (PNW) $49.41 -0.80%
Harman International Industries Inc. (HAR) $37.07 -0.75%
KLA-Tencor Corp. (KLAC) $44.00 -0.74%
Xcel Energy Inc. (XEL) $26.09 -0.69%

Dow Jones I.A – Risers
Bank of America Corp. (BAC) $9.47 +3.84%
Verizon Communications Inc. (VZ) $42.46 +2.56%
JP Morgan Chase & Co. (JPM) $40.54 +2.56%
General Electric Co. (GE) $20.58 +2.16%
AT&T Inc. (T) $33.82 +2.05%
Hewlett-Packard Co. (HPQ) $13.09 +1.89%
E.I. du Pont de Nemours and Co. (DD) $42.72 +1.84%
Coca-Cola Co. (KO) $37.21 +1.78%
Alcoa Inc. (AA) $8.32 +1.71%
Caterpillar Inc. (CAT) $83.32 +1.70%

Dow Jones I.A – Fallers
Intel Corp. (INTC) $20.18 -0.02%

Nasdaq 100 – Risers
Green Mountain Coffee Roasters Inc. (GMCR) $26.94 +9.74%
Apple Inc. (AAPL) $556.77 +5.51%
Nuance Communications Inc. (NUAN) $21.35 +4.91%
Randgold Resources Ltd. Ads (GOLD) $106.10 +4.25%
Electronic Arts Inc. (EA) $13.59 +4.14%
Dollar Tree Stores Inc. (DLTR) $40.02 +3.09%
Marvell Technology Group Ltd. (MRVL) $7.63 +3.04%
Staples Inc. (SPLS) $12.08 +2.98%
Ross Stores Inc. (ROST) $55.30 +2.90%
Flextronics International Ltd. (FLEX) $5.70 +2.89%

Nasdaq 100 – Fallers
Intuit Inc. (INTU) $58.54 -1.25%
Monster Beverage Corp (MNST) $45.07 -0.88%
KLA-Tencor Corp. (KLAC) $44.00 -0.74%
Netflix Inc. (NFLX) $80.40 -0.62%
Sandisk Corp. (SNDK) $39.22 -0.61%
Akamai Technologies Inc. (AKAM) $35.93 -0.47%
Autodesk Inc. (ADSK) $31.38 -0.32%
DIRECTV (DTV) $48.85 -0.29%
Apollo Group Inc. (APOL) $19.46 -0.24%
Sears Holdings Corp. (SHLD) $47.42 -0.15%

AB

Tags: chief executive officer | fourth quarter earnings | home improvement retailer | jones industrials | market averages | meat processor | new legislation | paul otellini | quarterly results | tyson foods