Monday, October 1, 2007

JPMorgan Morning Bird's Eye View

US

  • Stocks were little changed Thursday as investors weighed mixed economic data and prepared to close out the third quarter. Stocks spent most of the day in positive territory, despite a report of another slump in housing sales. Sales of single-family homes decreased by 8.3% last month to a seasonally adjusted annual rate of 795,000, the Commerce Department said. That was below expectations and was the lowest level since June 2000. Data released on Tuesday showed existing-home sales fell 4.3% to a seasonally adjusted annual rate of 5.50 million in August, the lowest level in five years.
  • GM -3.1% after its sharp rise the previous day.
  • Palm Inc +6.3% after the company released a smart phone.
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Europe

  • European shares advanced Thursday, paced by gains in construction companies & airlines, though BMW weakened after revealing a new strategy. FTSE +0.83%, CAC +0.75%, DAX +0.64%, IBEX +0.47%, MIB -0.03%, DJ€50 +0.56%
  • Saint-Gobain +5.2% after French investment company Wendel said late Wednesday that it has built a 6% stake in the company. Lafarge +1.8% ACS +4.1%
  • BMW -1.1% benefited early in the session from a broker upgrade to buy, which said it expects to see significant change as BMW's management take action on costs. In the afternoon, however it revealed a new strategy for the next decade. BMW said its strategy to 2020 will focus on improving profitability and the brand's reputation for premium products, as well as safeguarding its independence.
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Resources

  • Crude oil futures extended prior session gains, surging over 3% on renewed concerns that tropical storms might spell damage for oil installations in the Gulf of Mexico and geopolitical fears linked to the heightened tensions between the U.S. and Iran. The ability of crude oil futures to rally in the face of an unexpected build in U.S. inventories is an important indicator that crude could be poised to make new records.
  • Gold futures closed higher Thursday, getting a boost from a rally in crude-oil prices, as traders digested a mixed bag of economic reports, including a seven year plunge in new home sales.
  • On the LME, prices were broadly higher with lead and nickel the only exceptions. Lead equalled its record $3,520 a tonne amid concerns over tight supplies approaching winter when demand from battery manufacturers rises. Profit-taking subsequently dragged lead 1% lower to $3,420 a tonne.
    And More...