Market report US markets were mixed yesterday with the Dow finishing lower while the Nasdaq and broad based S&P 500 made gains. Stocks fell in the morning as investors continued to move away from equities and into safer Treasury issues. However, a meeting between Federal Reserve Chairman Bernanke, Senator Dodd and Treasury Secretary Paulson led to a come back in the afternoon. Senate Banking Committee leader Christopher Dodd said after the meeting that Bernanke pledged to use "all available tools" to calm financial markets. This led investors to believe that a rate cut could be close, although president of the Fed Reserve Bank of Richmond, Jeffrey Lacker, dampened hopes by suggesting a rate change would only be warranted if inflation or growth were levels were hurt.
The Dow Jones slipped 30.5 points to close at 13,090.9, the S&P 500 added 1.55 points to end at 1,447.1. The Nasdaq gained 12.71 points to finish at 2,521.3.
Technology shares led the market higher, with Apple Inc topping the risers board. The maker of the new iPhone gained after UBS said sales of the gadget could top estimates and that demand for their desktop and notebook computers was strong. Shares rose 4.4% to $127.57. Verizon topped the Dow, gaining 1.46% to finish at $41.71.
Financials also helped to lift the broader market and it was Countrywide Financial making the headlines again. The largest US mortgage lender jumped 10% to $21.79 after the Wall Street Journal reported Warren Buffett's Berkshire Hathaway as being interested in buying parts of the company. Elsewhere, Capital One Financial climbed 2.6% to $68.47 after stating late Monday night that it is closing its troubled GreenPoint mortgage unit, cutting 1,900 jobs and closing 31 offices by the end of the year.
Exxon Mobil was one of the biggest losers on the Dow, helping to keep it in negative territory. The stock fell in line with the price of its underlying commodity after Hurricane Dean subsided before reaching key oil facilities. Exxon declined 1.6% to $83.15 while light crude oil closed 2.3% lower at $69.47.
Treasury prices rose, lowering the yield on the 10 year note to 4.59%
COMEX gold for December delivery lost just $0.30 to settle at $666.20 an ounce.
The Nikkei finished almost unchanged today, losing 0.7 points to close at 15,900.6. Investors were cautious ahead of the central bank's decision on interest rates due Thursday. Concerns about withering credit markets and a stronger yen lingered in the market, but sharp fall were prevented by bargain hunting and short covering. Export orientated car makers were lower after the dollar fell against the yen.
The Hang Seng is 461.9 points higher at 22,191.3. Stocks were lifted amid speculation that China will expand a program allowing its citizens to buy Hong Kong traded stocks directly. The program will pave the way for China's 17 trillion yuan in household savings to enter Hong Kong's stock market.
Credit concerns continued to hang over the London market after it emerged the Bank of England made an emergency loan of £314m. The Bank's standing facility, which allows banks to borrow unlimited amounts at a penalty rate of 6.75%, was tapped for the first time since the liquidity crisis began. The FTSE 100 Index closed a mixed session 7.4 points higher at 6086.1.
One of the most closely watched stocks in London was Northern Rock after it issued a statement Monday night clarifying its exposure to the US asset classes that lie at the centre of the market's credit concerns. The update was seen as reassuring, but some analysts still have concerns about the possibility of a profits warning, leaving shares 14p lower at 702p. Other banks to suffer the fall out included Barclays off 6.5p at 628p, and HBOS, down 5.5p at 878.5p. Mortgage lender Bradford & Bingley was also down, falling 0.75p to 390.25p, but others in the sector made progress with Royal Bank of Scotland ahead 5p to 582p.
House builders were on the back foot despite Persimmon, the sector's largest player by market capitalisation, posting better-than-expected half-year profits. The group also gave a robust picture of the housing market for the second half of the year, although having enjoyed a good run recently, shares slipped 27p to 1223p. Barratt Developments also saw falls, down 30.5p at 909p. Other fallers included Tesco, down 4.5p to 396.25p, after research firm TNS said growth in the supermarket sector slowed to 3% last month.
Miners meanwhile fared well, with BHP Billiton up 26p after 1301p after the price of gold rose and investors positioned themselves ahead of results from the company today. Property firms made advances, benefiting from good results from FTSE 250 property company Brixton. The second-tier real estate investment trust enjoyed a 2% leap in shares, up 5.75p to 386p, boosting FTSE 100 counterpart British Land, ahead by 17p at 1215p. Hammerson rose 13p to 1226p and Land Securities added 22p to 1750p.
On the corporate results front, shares in valves-to-pipelines business Weir went into reverse despite an impressive set of half-year results. Analysts increased profit forecasts in light of the figures, but that was not enough to prevent shares slipping 21.5p to 678p.
Economic report
UK CBI Industrial Trends (Aug) 1100 BST
According to this survey last month, both orders and prices charged fell back sharply. Analysts expect a small moderation this month.
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