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United States News Title: Stocks Rise on Earnings, Potash Bid; Treasuries Fall, Oil Gains Stocks advanced, sending the Standard & Poor’s 500 Index to its biggest gain in two weeks, as profits beat estimates and a $39 billion bid for Potash Corp. of Saskatchewan Inc. sparked a rally in agricultural companies. Oil halted a five-day slump, while Treasuries and the dollar fell. The S&P 500 climbed 1.2 percent to 1,092.6 at 4 p.m. in New York, the most since Aug. 2. The Stoxx Europe 600 Index added 1.1 percent. Oil increased 0.6 percent to $75.70 a barrel. The 10-year Treasury note’s yield gained 7 basis points to 2.63 percent after sliding to a more than 16-month low yesterday. Spanish and Irish bonds rose as borrowing costs fell at government debt sales, signaling concern has eased the nations will struggle to fund budget deficits. Wal-Mart Stores Inc., Home Depot Inc., and Carlsberg A/S, the Nordic region’s biggest brewer, posted earnings that topped estimates and increased their full-year profit forecasts. Potash Corp., the world’s largest fertilizer producer, rejected the unsolicited bid from BHP Billiton Ltd. as too low, prompting speculation of a higher offer. The bid for Potash “is helpful because it shows companies are ready to use cash to grow,” said Linda Duessel, who helps oversee $390 billion as equity market strategist at Federated Investors Inc. in Pittsburgh. “The economic reports were pretty much in line with what was expected and earnings from Wal-Mart and Home Depot looked pretty good. We still think there’s a rally coming forth at the end of this year.” Four-Day Slide The S&P 500 advanced for a second day, halting a four-day slide that threatened its rebound from a 10-month low in July. Wal-Mart and Home Depot, the biggest home-improvement retailer, climbed at least 1.4 percent each. More than 75 percent of companies in the S&P 500 that reported earnings since July 12 have beaten estimates, data compiled by Bloomberg show. Industrial production in the U.S. rose 1 percent in July, more than double the average economist forecast, easing concern that manufacturing, which led the economy out of the recession, is beginning to slow. Wholesale costs in the U.S. increased last month for the first time in four months, while housing starts rose less than forecast, Labor Department and Commerce Department reports showed. The global economic recovery is “well in place,” Mark Mobius, who oversees about $34 billion as executive chairman of Templeton Asset Management Ltd.’s emerging markets group in Singapore, said in a Bloomberg Television interview. “Going forward, the numbers will get better and better.” Potash, Pactiv Potash Corp. jumped 28 percent in New York after saying its board rejected an unsolicited takeover proposal from BHP Billiton for $130 a share in cash. K+S AG, Europe’s largest potash producer, and Norwegian rival Yara International ASA climbed more than 5.7 percent. Saskatoon, Saskatchewan-based Potash Corp. and Teck Resources Ltd., Canada’s biggest base-metals and coal producer, led Canadian stocks higher. Potash Corp. surged 26 percent in Toronto and Teck increased 6.2 percent. Mosaic Co. and CF Industries Holdings Inc. led a rise in North American fertilizer makers on speculation the offer may spark industry consolidation. Mosaic jumped 8.7 percent, the most since July 7, and CF Industries gained 4.7 percent. Also today, Pactiv Corp., the maker of Hefty trash bags, agreed to be bought by Rank Group Ltd. in a transaction valued at about $6 billion. And Stryker Corp., a maker of artificial hips and knees, is in advanced talks to buy Boston Scientific Corp.’s pain-management device unit for about $1.5 billion, said three people with knowledge of the transaction. Global takeovers have totaled $1.22 trillion so far this year, up 17 percent from the same time last year, according to data compiled by Bloomberg. Yen, Dollar The yen declined against 14 of 16 major counterparts, while the dollar dropped versus 12. The Dollar Index, a six-currency gauge of the greenback’s strength, fell 0.4 percent to 82.22. Canada’s dollar appreciated against all of its peers, advancing 1 percent against the dollar and 0.5 percent versus the euro. More than 14 shares rose for every one that fell in the Stoxx 600. Copenhagen-based Carlsberg gained 2.1 percent. Wienerberger AG, the world’s biggest brickmaker, rallied 9.3 percent after reporting its first profit in six quarters. Germany’s DAX Index surged 1.6 percent even after investor confidence in the nation dropped more than forecast to a 16- month low. The ZEW Center for European Economic Research said its index of investor and analyst expectations, which aims to predict developments six months ahead, fell to 14 in August from 21.2 the prior month. Economists had forecast a drop to 20, according to the median estimate in a Bloomberg News survey. Emerging Markets Emerging-market stocks rose for a third day, with the MSCI Emerging Markets Index gaining 0.9 percent. The Karachi Stock Exchange 100 Index jumped 1.5 percent, the most in a month, after Mobius said he was buying shares in Pakistan as the nation’s worst-ever floods prompted a sell-off. The MSCI Asia Pacific Index rose 0.2 percent. The Nikkei 225 Stock Average fell 0.4 percent after Prime Minister Naoto Kan asked ministers for stimulus proposals, spurring concern Japan’s growth is slowing. The yield on the two-year Treasury note added 2 basis points to 0.50 percent and the 30-year bond yield increased 5 basis points to 3.76 percent. China cut its holdings of Treasury notes and bonds by the most ever, a U.S. government report showed yesterday. Holdings fell by $21.2 billion in June to $839.7 billion, according to the report. The yield on the German bund climbed 3 basis points to 2.36 percent. The yield premium investors demand to hold Spain’s 10- year debt over comparable German bonds fell to 174 basis points from 186. Spanish, Irish Auctions Spain’s 10-year yield fell 6 basis points to 4.09 percent, while Ireland’s decreased 7 basis points to 5.25 percent. Spain sold 5.5 billion euros ($7.1 billion) of 12- and 18- month bills at lower yields from previous auctions in July, data from the country’s debt agency showed today. Ireland sold 1 billion euros of 5 percent bonds due October 2020 at an average yield of 5.386 percent, less than last month’s sale. Ireland and Spain are implementing austerity measures to pare their deficits, the first- and third-largest in the euro region last year, according to European Commission data. Copper rose for a second day, and zinc and nickel jumped at least 1.9 percent to lead gains on the London Metal Exchange. Hog futures climbed for the fourth straight session on an outlook for strong demand before the U.S. Labor Day holiday. Hogs for October settlement gained 1.3 percent to 75.8 cents a pound on the Chicago Mercantile Exchange.
Post Comment Private Reply Ignore Thread Top • Page Up • Full Thread • Page Down • Bottom/Latest Begin Trace Mode for Comment # 4.
#1. To: go65 (#0)
The economy still sucks.
That's true, but we're along way from the loss of 700k jobs a month and negative GDP that your beloved Republicans left us.
The Bush policies have left a lasting mark on the economy, when most of the manufacturing was sent overseas or out of country. And no pres or congress can undo it in the short term. Plus I see no movement to rescind the destructive trade treaties both parties imparted on this country.
#6. To: mininggold (#4)
And no pres or congress can undo it There. Fixed it. Elections aren't going to fix the mess. Events will.
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