Overview: the corporate reports that were released yesterday were upbeat with most, including Yahoo (NYSE: YHOO), drugmaker Pfizer (NYSE: PFE), defence contractor Lockheed Martin (NYSE: LMT) and construction equipment manufacturer Caterpillar (NYSE: CAT), beating expectations to give a boost to the markets. However, the early rally on Wall Street fuelled by the latest string of corporate reports was quickly subdued by worse than expected US housing data and profit taking, which sent the main stock indexes down and kept them in the negative for the rest of the day. The Dow Jones industrial average lost 0.5%, while the Nasdaq composite was down 0.6%. S&P 500 also was in decline.
Asian markets were off to a slow start with Hong Kong’s Hang Seng shedding 85 points, while the Shanghai composite index in China declined 0.2%. Japan’s Nikkei also fell.
The FTSE 100 is projected to open slightly lower today after declining 0.7% on Tuesday, responding to the declines in US and Asia.
Commodity markets were weak as oil continued falling after its recent surge that almost saw it eclipse $80 per barrel.
December Brent Crude declined to US$76.90/barrel, while US light, sweet crude for December delivery moved down to US$78.72/barrel.
Gold was still fluctuating around US$1,055/oz, while Silver declined to US$17.44/oz. Platinum was at US$1,354/oz.
Base metals followed the trend.
Copper dropped to US$2.89/pound, while Nickel was down to US$8.48/pound. Zinc slipped below US$0.95/pound.
Defence systems manufacturer BAE Systems (LSE: BA), broadcaster BSkyB (LSE: BSY), technology company Smiths Group (LSE: SMIN) and hotel operator Whitbread (LSE: WTB) will go ex-dividend today.
Not much news was out in the UK this morning.
In the FTSE 100, Home Retail Group (LSE: HOME) released its H1 results, reporting a 3% increase in sales, while its pre-tax profit increased 1%, as did earnings per share. The group’s cash position was at £352 million.
In the FTSE 250, Asia focused oil and gas company Salamander Energy (LSE: SMDR) said that its Belawan Power Plant in Indonesia was ready to recommence receiving gas following repairs to the turbines. Recommencement of Kambuna production is expected on completion of the ongoing investigation into the cause of the turbine failure.
Electrical power generation company Drax Group (LSE: DRX) said that whilst conditions in the commodity markets remained challenging, the company was trading in line with expectations for the current year.
In the AIM, Kazakhstan operating Max Petroleum (LSE: MXP) announced the results of its final prospect review for 2009 for its two onshore licenses in western Kazkahstan, reporting 12 post-salt drillable prospects ranging in estimated size from 9 to 48 million barrels of oil (mmbo) with an estimated range of geological chance of success between 25% to 60%, while the group’s pre-salt portfolio now consisted 15 mapped leads and prospects including 11 recently mapped features with an estimated mean recoverable resource of 100 to 500 mmbo.
Diamond miner with assets in Sierra Leone and Guinea West African Diamonds (AIM: WAD) released its preliminary full year results today, reporting an operating loss of £247,442 compared to last year’s loss of £228,325, while losses per share were at 0.48 pence, down from last year’s 0.58 pence.