Books on Amazon.com for BUSSINES and INVESTING

Friday, August 5, 2016

Canada stocks higher at close of trade; S&P/TSX Composite up 0.83%

Stock market


Canada stocks were higher after the close on Friday, as gains in the Consumer DiscretionaryIT and Industrials sectors led shares higher.
At the close in Toronto, the S&P/TSX Composite rose 0.83% to hit a new 52-week high.
The best performers of the session on the S&P/TSX Composite were Enerflex Ltd . (TO:EFX), which rose 12.36% or 1.39 points to trade at 12.64 at the close. Meanwhile,Concordia Healthcare Corp (TO:CXR) added 10.16% or 1.99 points to end at 21.58 andCott Corporation (TO:BCB) was up 5.94% or 1.23 points to 21.93 in late trade.
The worst performers of the session were Sierra Wireless Inc . (TO:SW), which fell 18.21% or 4.08 points to trade at 18.33 at the close. OceanaGold Corporation (TO:OGC) declined 6.11% or 0.290 points to end at 4.460 and Endeavour Mining Corp (TO:EDV) was down 5.73% or 1.380 points to 22.710.
Rising stocks outnumbered declining ones on the Toronto Stock Exchange by 763 to 400 and 121 ended unchanged.
Shares in Cott Corporation (TO:BCB) rose to 5-year highs; gaining 5.94% or 1.23 to 21.93.
The S&P/TSX 60 VIX, which measures the implied volatility of S&P/TSX Composite options, was down 3.48% to 13.58.
Gold for December delivery was down 1.81% or 24.80 to $1342.60 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in September rose 0.12% or 0.05 to hit $41.98 a barrel, while the October Brent oil contract rose 0.27% or 0.12 to trade at $44.41 a barrel.
CAD/USD was down 1.12% to 0.7593, while CAD/EUR fell 0.77% to 0.6849.
The US Dollar Index was up 0.46% at 96.19.
Source by Investing.com

U.S. stocks higher at close of trade; Dow Jones Industrial Average up 1.04%

Stock market


U.S. stocks were higher after the close on Friday, as gains in the FinancialsTechnology and Industrials sectors led shares higher.
At the close in NYSE, the Dow Jones Industrial Average rose 1.04%, while the S&P 500 index gained 0.86%, and the NASDAQ Composite index gained 1.06%.
The best performers of the session on the Dow Jones Industrial Average were Merck & Company Inc (NYSE:MRK), which rose 10.41% or 6.02 points to trade at 63.86 at the close. Meanwhile, JPMorgan Chase & Co (NYSE:JPM) added 2.70% or 1.74 points to end at 66.30 and Goldman Sachs Group Inc (NYSE:GS) was up 2.56% or 4.04 points to 162.09 in late trade.
The worst performers of the session were Verizon Communications Inc (NYSE:VZ), which fell 0.54% or 0.29 points to trade at 53.64 at the close. Procter & Gamble Company (NYSE:PG) declined 0.31% or 0.27 points to end at 85.78 and Coca-Cola Company (NYSE:KO) was down 0.07% or 0.03 points to 43.48.
The top performers on the S&P 500 were Merck & Company Inc (NYSE:MRK) which rose 10.41% to 63.86, EOG Resources Inc (NYSE:EOG) which was up 7.03% to settle at 90.16 and Quanta Services Inc (NYSE:PWR) which gained 5.97% to close at 24.85.
The worst performers were Bristol-Myers Squibb Company (NYSE:BMY) which was down 15.99% to 63.28 in late trade, Chesapeake Energy Corporation (NYSE:CHK) which lost 4.68% to settle at 4.890 and TripAdvisor Inc (NASDAQ:TRIP) which was down 4.37% to 60.81 at the close.
The top performers on the NASDAQ Composite were Lantheus Holdings Inc(NASDAQ:LNTH) which rose 54.24% to 6.000, Fuling Global Inc (NASDAQ:FORK) which was up 38.57% to settle at 2.910 and KBS Fashion Group Ltd (NASDAQ:KBSF) which gained 34.89% to close at 0.6190.
The worst performers were Great Basin Scientific Inc (NASDAQ:GBSN) which was down 30.76% to 0.2600 in late trade, Computer Programs and Systems Inc (NASDAQ:CPSI) which lost 29.74% to settle at 27.47 and Intermolecular Inc (NASDAQ:IMI) which was down 25.93% to 1.000 at the close.
Rising stocks outnumbered declining ones on the New York Stock Exchange by 2282 to 964 and 36 ended unchanged; on the Nasdaq Stock Exchange, 1853 rose and 721 declined, while 55 ended unchanged.
Shares in Merck & Company Inc (NYSE:MRK) rose to 5-year highs; gaining 10.41% or 6.02 to 63.86. Shares in EOG Resources Inc (NYSE:EOG) rose to 52-week highs; rising 7.03% or 5.92 to 90.16. Shares in Merck & Company Inc (NYSE:MRK) rose to 5-year highs; gaining 10.41% or 6.02 to 63.86. Shares in Computer Programs and Systems Inc (NASDAQ:CPSI) fell to 5-year lows; falling 29.74% or 11.63 to 27.47. Shares in Intermolecular Inc (NASDAQ:IMI) fell to all time lows; falling 25.93% or 0.350 to 1.000.
The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was down 9.10% to 11.29 a new 52-week low.
Gold for December delivery was down 1.82% or 24.85 to $1342.55 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in September rose 0.10% or 0.04 to hit $41.97 a barrel, while the October Brent oil contract rose 0.25% or 0.11 to trade at $44.40 a barrel.
EUR/USD was down 0.38% to 1.1088, while USD/JPY rose 0.53% to 101.76.
The US Dollar Index was up 0.45% at 96.18.
Source by Investing.com

PwC must face $1 billion MF Global malpractice lawsuit: U.S. judge

Business


A federal judge rejected PricewaterhouseCoopers' [PWC.UL] bid to dismiss a $1 billion lawsuit accusing the accounting firm of professional malpractice for helping cause the October 2011 bankruptcy of MF Global Holdings Ltd [MGHL.UL], a brokerage once run by former New Jersey Governor Jon Corzine.
In a 69-page decision made public on Friday, U.S. District Judge Victor Marrero in Manhattan said there remained open questions concerning whether PwC's alleged bad accounting advice was a substantial cause of MF Global's rapid demise.
"PwC has not satisfied its burden of demonstrating the absence of any genuine issue of material fact," Marrero wrote.
Caroline Nolan, a PwC spokeswoman, said the accounting firm was reviewing the decision.
Corzine is not a defendant in the lawsuit, which was filed in March 2014 by MF Global's bankruptcy plan administrator.
"This is a major victory for the MF Global estate," Nader Tavakoli, director of the administrator, said in a statement. "We hope to secure a substantial recovery for MF Global's stakeholders."
The decision keeps alive one of the last remaining pieces of litigation relating to MF Global's Oct. 31, 2011 bankruptcy.
PwC in April 2015 reached a $65 million cash settlement with former shareholders and bondholders, in which it denied wrongdoing. MF Global officials and bank underwriters have also settled with investors, with some payments covered by insurance. Customers have been made whole.
MF Global sought Chapter 11 protection after investors grew anxious about Corzine's $6.3 billion wager on European sovereign debt, a large quarterly loss, credit rating downgrades, margin calls, and the use of customer funds to shore up liquidity.
The plan administrator accused PwC of "extraordinary and egregious professional malpractice and negligence" in approving MF Global's accounting for "repurchase-to-maturity" transactions through which Corzine bet on sovereign debt.
It also faulted PwC's advice on some deferred tax assets, on which MF Global took a $119.4 million write-off just six days before going bankrupt. That contributed to a $191.6 million quarterly loss.
In papers filed under seal but summarized by Marrero, PwC said no reasonable jury could find that its advice proximately caused MF Global's bankruptcy.
It also said the administrator "stands in the shoes" of the company under a legal doctrine called "in pari delicto," and could not prevail because MF Global had been an "active and voluntary participant" in the decision-making.

Corzine and former MF Global Assistant Treasurer Edith O'Brien still face a 2013 civil lawsuit by the U.S. Commodity Futures Trading Commission.
Source by Reuters

Alibaba says it is not making an investment in Netflix

Technology


Alibaba (NYSE:BABA) Group Holding Inc is not making an investment in Netflix Inc (NASDAQ:NFLX), Alibaba spokesman Bob Christie told Reuters on Friday.
Christie was responding to market rumors about a possible deal between the Chinese e-commerce company and the U.S. video service.
Source by Reuters

S&P 500 and Nasdaq close at record highs

Stock market


U.S. stocks notched their best day in a month on Friday, with the S&P 500 and Nasdaq closing at record highs after a second straight month of robust labor market data increased optimism that economic growth is accelerating.
The Dow Jones industrial average (DJI) rose 191.48 points, or 1.04 percent, to 18,543.53, the S&P 500 (SPX) gained 18.6 points, or 0.86 percent, to 2,182.85 and the Nasdaq Composite (IXIC) added 54.87 points, or 1.06 percent, to 5,221.12.
Source by Reuters

Colombia stocks lower at close of trade; COLCAP down 0.05%

Stock market


Colombia stocks were lower after the close on Friday, as losses in the IndustrialsPublic Services and Agriculture sectors led shares lower.
At the close in Colombia, the COLCAP fell 0.05%.
The best performers of the session on the COLCAP were Avianca Holdings, which rose 1.75% or 40.0 points to trade at 2330.0 at the close. Meanwhile, Cemex Latam Holdings SA added 0.83% or 100.0 points to end at 12100.0 and Pfgrupsura was up 0.80% or 300.0 points to 37800.0 in late trade.
The worst performers of the session were Canacol Energy Ltd, which fell 2.16% or 210.0 points to trade at 9530.0 at the close. Cemargos declined 1.20% or 140.0 points to end at 11500.0 and Grupo Argos SA was down 0.86% or 160.0 points to 18540.0.
Rising stocks outnumbered declining ones on the Colombia Stock Exchange by 11 to 10 and 7 ended unchanged.
US coffee C for September delivery was up 0.25% or 0.35 to $142.23 . Elsewhere in commodities trading, US cocoa for delivery in September rose 0.43% or 13.00 to hit $3009.50 , while the December Gold contract fell 1.81% or 24.75 to trade at $1342.65 a troy ounce.
USD/COP was down 0.52% to 3066.50, while BRL/COP rose 0.23% to 967.50.
The US Dollar Index was up 0.47% at 96.20.
Source by Investing.com

Obama prepares to boost U.S. military's cyber role: sources

Technology


The Obama administration is preparing to elevate the stature of the Pentagon’s Cyber Command, signaling more emphasis on developing cyber weapons to deter attacks, punish intruders into U.S. networks and tackle adversaries such as Islamic State, current and former officials told Reuters.
Under the plan being considered at the White House, the officials said, U.S. Cyber Command would become what the military calls a "unified command" equal to combat branches of the military such as the Central and Pacific Commands.
Cyber Command would be separated from the National Security Agency, a spy agency responsible for electronic eavesdropping, the officials said. That would give Cyber Command leaders a larger voice in arguing for the use of both offensive and defensive cyber tools in future conflicts.
Both organizations are based at Fort Meade, Maryland, about 30 miles north of Washington, and led by the same officer, Navy Adm. Michael S. Rogers.
A former senior intelligence official with knowledge of the plan said it reflects the growing role that cyber operations play in modern warfare, and the different missions of the Cyber Command and the NSA. The official spoke on condition of anonymity.
A Cyber Command spokesman declined comment on the plan, and the NSA did not respond to requests for comment.
Established in 2010, Cyber Command is now subordinate to the U.S. Strategic Command, which oversees military space operations, nuclear weapons and missile defense.
U.S. officials cautioned that details of the plan, including some aspects of Cyber Command's new status, are still being debated.
It was unclear when the matter will be presented to President Barack Obama for final approval, but the former senior intelligence official said it was unlikely anyone would stand in the way.
The Pentagon acknowledged earlier this year that it has conducted cyber attacks against Islamic State, although the details are highly classified.
"We are dropping cyberbombs. We have never done that before," Deputy Defense Secretary Robert Work said in April.
The Washington Post reported last month that Pentagon leaders had been frustrated with the slow pace of Cyber Command's electronic offensive against Islamic State, militants who control parts of Iraq and Syria and have sympathizers and supporters worldwide.
In response, Rogers created Joint Task Force Ares to develop new digital weapons against Islamic State and coordinate with the Central Command, which is responsible for combat operations in the Middle East and South Asia.
The new task force has "the specific mission to accomplish cyberspace objectives in support of counter-ISIL operations," a Cyber Command statement said. Task Force Ares, it said, "comprises operations and intelligence professionals from each of the military services."
James Lewis, a cybersecurity expert at the Center for Strategic and International Studies, said the plan that will be presented to Obama highlights how Cyber Command, reliant on the NSA in its early years, is developing its own work force and digital tools.
"It reflects the maturing of Cyber Command and its own capabilities," Lewis said.
Defense Secretary Ash Carter hinted at the higher status for Cyber Command in an April speech in Washington, in which he said the Pentagon is planning $35 billion in cyber spending over the next five years.
"Adapting to new functions will include changes in how we manage ourselves in cyberspace," Carter said.
NSA's primary mission is to intercept and decode adversaries' phone calls, emails and other communications. The agency was criticized for over-reach after former NSA contractor Edward Snowden revealed some of its surveillance programs.
NSA's focus is gathering intelligence, officials said, often favoring the monitoring of an enemy's cyber activities. Cyber Command's mission is geared more to shutting down cyber attacks - and, if ordered, counter attacking.
The NSA director has been a senior military officer since the agency's founding in 1952. Under the plan, future directors would be civilians, an arrangement meant to underscore that NSA is not subordinate to Cyber Command.
Source by Reuters

Speculators pare net longs in U.S. 10-year T-notes: CFTC

Stock market


Speculators reduced their net bullish bets on U.S. 10-year Treasury note futures from their highest levels since late 2012, according to Commodity Futures Trading Commission data released on Friday.
The amount of speculators' bullish, or long, positions in 10-year Treasury futures exceeded bearish, or short, positions by 121,220 contracts on Aug. 2, according to the CFTC's latest Commitments of Traders data.
A week earlier, speculators held 185,521 net long positions in 10-year T-note futures, which was the most net longs since 202,691 on Dec. 4, 2012.
Below is a table of the speculative positions in Treasury futures on the Chicago Board of Trade and in Eurodollar futures on the Chicago Mercantile Exchange in the latest week:
U.S. 2-year T-notes (Contracts of $200,000)
02 Aug 2016 Prior week
week
Long 297,291 257,223
Short 249,205 264,130
Net 48,086 -6,907
U.S. 5-year T-notes (Contracts of $100,000)
02 Aug 2016 Prior week
week
Long 406,149 367,725
Short 596,616 569,043
Net -190,467 -201,318
U.S. 10-year T-notes (Contracts of $100,000)
02 Aug 2016 Prior week
week
Long 575,489 606,471
Short 454,269 420,950
Net 121,220 185,521
U.S. T-bonds (Contracts of $100,000)
02 Aug 2016 Prior week
week
Long 143,727 171,816
Short 72,852 74,377
Net 70,875 97,439
U.S. Ultra T-bonds (Contracts of $100,000)
02 Aug 2016 Prior week
week
Long 45,569 66,455
Short 144,397 144,646
Net -98,828 -78,191
Eurodollar (Contracts of $1,000,000)
02 Aug 2016 Prior week
week
Long 960,054 1,050,631
Short 1,425,621 1,541,557
Net -465,567 -490,926
Fed funds
02 Aug 2016 Prior week
week
Long 31,161 52,511
Short 127,873 94,293
Net -96,712 -41,782
Source by Reuters

Wall Street Weekahead: Again at highs, stocks to take cues from consumer

Stock market


A U.S. stock market that rose again to record highs on Friday on the back of a robust employment report will take its cues next week from a facet of the economy that also has shown signs of strength: the consumer.

Quarterly earnings reports from department store operators including Macy's, luxury goods companies such as Michael Kors and entertainment company Disney will set the tone for Wall Street, with investors also eyeing U.S. retail sales data due on Friday.
"The consumer, in our mind, is a lever that could cause equities to trend higher," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis. "Next week will be telling ... If retail sales suggest that spending is beginning to pick up that could bode well for performance."
Stocks headed into next week on a positive note, with the S&P 500 rising to a fresh intraday all-time high on Friday after two weeks of little change to the benchmark index.
On the heels of a tepid second-quarter growth report, the jobs data painted a rosier picture of the economy. Recent data has shown solid consumer spending, including higher-than-expected outlays in June as households bought more goods and services.
"Anything that really would suggest that the consumer is starting to step up and pick up a little bit more of the load would give you some optimism that maybe we can get an earnings break-out at some point," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland, Ohio.
After a tepid first half, the S&P consumer discretionary sector has climbed more than 4 percent since the end of June, helping lead the market along with tech and healthcare.
With two-thirds of the consumer discretionary sector reporting so far, second-quarter earnings are expected to have climbed 12.5 percent, better than the 9 percent rise expected at the start of July, according to Thomson Reuters I/B/E/S.
To continue the momentum, department store operators, including Macy's, Kohls and Nordstrom, will be in focus after gloomy results a quarter ago.
With about 85 percent of the overall S&P 500 already reported, second-quarter earnings are expected to have fallen 2.6 percent, not as dire as feared at the start of July. However, third-quarter profits are now expected to be negative.
The retail sales report will provide a further sense of the economy's health, but it also could give the Federal Reserve more ammunition to raise interest rates later in the year.
After the strong jobs data, traders boosted bets that the central bank could raise rates as soon as December.
"It continues to be a system in which you need the consumer to demonstrate some strength, but not too much strength because if it’s too much strength then now (Fed Chair) Janet Yellen gets into the picture," said Jeff Weniger, senior strategist at BMO Wealth Management in Chicago.
Some investors worry stock valuations have become too expensive. The S&P 500 is trading at 17.1 times earnings estimates of its component companies over the next 12 months, well above its average of 14.5 times over the past five years.
Countering those concerns is sentiment that with bond yields low, investors will stay attracted to stocks, especially those with lofty dividends.
Source by Reuters

Global stocks, dollar rally on bumper U.S. jobs data

Stock market


Stocks and the dollar jumped on Friday as investors cheered strong U.S. employment data which boosted expectations of an acceleration in economic growth and raised the probability of a Federal Reserve interest rate hike this year.
Forecast-beating U.S. nonfarm payrolls numbers, coming a day after the launch of a Bank of England monetary easing package, sent U.S. Treasury yields higher.
MSCI's world stocks index, which tracks shares in 45 countries, was up 0.59 percent, advancing for a second straight day. The index added to gains as the U.S. benchmark S&P 500 stock index rose to a record intraday high.
U.S. nonfarm payrolls rose by 255,000 in July as hiring increased broadly after an upwardly revised 292,000 surge in June, the U.S. Labor Department said. Economists had expected a rise of 180,000.
"This is definitely a very solid report, and I think Fed policymakers have to be very pleased with this," said Kathy Jones, fixed income strategist at Charles Schwab in New York.
Fed fund futures showed traders see close to even odds of a rate hike by early 2017, a change from before the jobs report when they saw little chance of a hike until well into next year.
Futures priced in an 18 percent chance the Fed will raise rates at its policy meeting next month, up from 9 percent late on Thursday.
The S&P 500 touched 2,182.33, its ninth record intraday high since July. Financials, which benefit from rising interest rates, led gains.
"We are going to need tech leadership and financial support in order to stay higher," said JJ Kinahan, chief market strategist at TD Ameritrade in Chicago.
The Dow Jones industrial average .DJI rose 163.2 points, or 0.89 percent, to 18,515.25, the S&P 500 gained 16.06 points, or 0.74 percent, to 2,180.31 and the Nasdaq Composite added 53.93 points, or 1.04 percent, to 5,220.18.
The S&P financial sector .SPSY was up 1.8 percent.
Europe's broad FTSEurofirst 300 index closed up 1 percent at 1,344.81. Solid earnings from companies including cement maker LafargeHolcim helped.
The dollar rallied to hit one-week peaks against the euro and the Swiss franc and turned positive versus the yen  after the jobs data.
The dollar index, which tracks the greenback against six major currencies, was up 0.48 percent to 96.215.
The rallying dollar dragged commodities, including gold and oil, lower.
Gold is sensitive to rising U.S. interest rates, which lift the opportunity cost of holding the non-yielding asset while boosting the dollar, in which it is priced.
Spot gold prices were down 1.63 percent to $1,338.58 an ounce, on pace for the worst drop in more than three weeks.
Oil prices, which fell 1 percent earlier in the session, steadied in late trading, as short-covering returned to support the market.
Brent crude LCOc1 settled down 2 cents at $44.27 a barrel, while U.S. crude CLc1 settled down 13 cents at $41.80.
U.S. Treasury prices, which move inversely to yields, fell across the board.
"The selloff in shorter-maturity bonds says the bond market today thinks the Fed is likely to tighten sometime in the immediate months ahead," said Jonathan Lewis, chief investment officer at Fiera Capital Inc in New York.
Benchmark 10-year U.S. Treasury yields hit a more than one-week high of 1.587 percent, while two-  and three-year yields hit one-week highs of 0.726 percent and 0.847 percent, respectively.
Source by Reuters