Stock market review, July23

ASIA

Asian stocks rose, extending a two-month high, after Premier Li Keqiang said China’s economic growth won’t be less than 7 percent and as U.S. housing data damped concerns the Federal Reserve will reduce stimulus.

 

The MSCI Asia Pacific Index climbed 1% to 137.37.

 

The Shanghai Composite Index (SHCOMP) jumped 2%. China’s “bottom line” for gross domestic product growth is 7% and the nation can’t let growth go below that, Beijing News reported today, citing Premier Li’s comments at a recent meeting with economists and business people.

 

The Hang Seng China Enterprises Index of mainland companies traded in Hong Kong added 3.9%, its biggest gain since Jan. 2. The benchmark Hang Seng Index gained 2.3%, its largest rally since July 11.

 

Japan’s Topix (TPX) index added 0.5%, while the benchmark Nikkei 225 Stock Average climbed 0.8%. South Korea’s Kospi index jumped 1.3% and Australia’s S&P/ASX 200 Index rose 0.3%. New Zealand’s NZX 50 Index advanced 0.6%, Taiwan’s Taiex Index (TWSE) gained 1.4% and Singapore’s Straits Times Index increased 0.5 %.

 

Industrial & Commercial Bank of China Ltd., the world’s second-biggest lender by market value, jumped 4.9% in Hong Kong. Samsung Electronics Co., the largest maker of smartphones, rose 2.7% in Seoul. Nippon Steel & Sumitomo Metal Corp. (5401) climbed 3.3% in Tokyo after the Nikkei newspaper reported the No. 1 steelmaker by value agreed to a 10% price increase with Toyota Motor Corp.

 

EUROPE

European stocks declined from a seven-week high as a measure of U.S. manufacturing unexpectedly slumped, outweighing gains by companies from Royal KPN NV to Vivendi SA on plans to sell assets.

 

The Stoxx Europe 600 Index dropped 0.3% to 299.44 at the close of trading. National benchmark indexes mostly weakened: France’s CAC 40 and the U.K.’s FTSE 100 slipped 0.4%, while Germany’s DAX fell 0.2%.

 

Investors are looking to flash Purchasing Managers' Index data on Wednesday as, despite the euro's recent resilience, worries about euro zone economies are re-emerging. Analysts said any rebounds in the euro would probably be sold into.

 

In Germany, the Ifo institute releases its business-climate index on Thursday. Economists forecast the measure will rise to 106.1 in July from 105.9 in June.

 

Sulzer AG plunged 14%. The Swiss pump maker said it expects full-year profitability to decline rather than increase. Sulzer posted a 23% tumble in first-half profit to 99.5 million francs ($106 million), falling short of the median analyst estimate of 142.5 million francs.

 

STMicroelectronics NV (STM) slid 11%, its biggest drop since April 2012. Intel Corp.’s biggest competitor in Europe reported a seventh consecutive quarter of losses. It lost $152 million in the second quarter, according to a statement. Revenue slipped 4.8% to $2.05 billion.

 

Tullow Oil Plc slumped 6.6% after failing to find commercial quantities of crude oil or gas at two wells off the coasts of Mozambique and French Guiana.

 

Bouygues SA surged 6.9%. The company said it has begun talks to share its mobile-phone network in France with Vivendi’s SFR.

 

Swatch Group AG (UHR) advanced 1.7% as the biggest maker of Swiss watches said it expects a strong second half after first-half profit rose. Net income increased 6.1% to 768 million Swiss francs.

 

Glencore Xstrata Plc rose 5.1%. A gauge of commodity producers posted the best performance of the 19 industry groups on the Stoxx 600. China’s Premier Li Keqiang said the world’s second-biggest economy will grow by a minimum of 7%.

 

USA

U.S. stocks were mixed Tuesday as investors weighed the latest corporate results against a weak regional manufacturing report.

 

Weak results last week from Microsoft, Google and Intel have "put a pox on the technology sector."

 

Among the companies that reported Tuesday morning, earnings were better than feared, but revenue growth was generally tepid.

 

UPS (+0.1%) reported earnings in line with its preliminary expectations.

 

Shares of United Technologies (+3.28%) were up after the aerospace supplier raised its earnings outlook for the year.

 

DuPont (+0.72%) reported earnings that beat forecasts but revenue fell short, which the company blamed on slipping chemical sales and economic headwinds in Europe and Asia.

 

Travelers (-3.52%) reported a boost in quarterly profit, citing "lower catastrophe losses."

 

Texas Instruments (+4.06%) shares rose after the semiconductor maker reported quarterly earnings that came in ahead of expectations.

 

Lockheed Martin (+2.13%) said net income rose 10% in the second quarter, despite a 4% drop in revenue.

 

Wendy's (+7.26%) reported better-than-expected earnings and announced plans to sell 425 company-owned restaurants.

 

Netflix (-4.44%) shares sank one day after the streaming-video service added fewer subscribers than expected in the second quarter.

 

Meanwhile, Cisco (-0.27%) announced plans to buy cybersecurity company Sourcefire (+27.84%) for $2.7 billion.

 

 

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