4:00 PM New York – U.S. stocks edged lower but tech stocks surged nearly 2.7% in the week. Investors stayed on the side lines after the release of mixed U.S. economic data and lower than expected revenues from GE. Banks may face more scrutiny as foreclosure process grinds to a halt. Inflation in Europe regained momentum.
U.S. stocks struggled after CPI rose 0.1% and retail sales climbed 0.6% in September. For the week, the Dow increased 0.6%, S&P 500 index added 0.95% and the NAsdaq added 2.7%
U.S. Fed Chairman Bernanke warned prolonged high unemployment would pose a risk to economic recovery. Motorola and Nokia inked 4G licensing agreement.
Seagate Technology surged on the talks that the company may go private. General Electric declined after quarterly revenues declined 5%. Google soared 10% after it reported higher than expected adjusted earnings. Gannett Co. declined after quarterly revenues trailed market estimates.
General Electric declined after quarterly revenues declined 5%. Google soared 10% after it reported higher than expected adjusted earnings. Gannett Co. declined after quarterly revenues trailed market estimates. Charles Schwab Corporation quarterly revenues increased 5% and net income dropped sharply.
The European indexes traded mixed after euro-zone annual inflation surged in September and trade balance widened in August. The ECB member Juergen Stark reiterated that monetary policy is appropriate. European car registrations fell in September.
The UK indexes fell after weaker-than-expected U.S. economic data. Old Mutual said HSBC terminated offer talks for Nedbank. Metro Baltic Horizons agreed to sell 30.7% interest in Metro Plaza.
In Tokyo trading, stocks remained volatile and dropped after surging the most in the month on Thursday. The yen rose and investors were focused on earnings season beginning next week. Mizuho Financial booked a loss in its preferred shares for Merrill Lynch holding as it converts to Bank of America shares.
Stocks in Shanghai soared more than 3% due to record FDI and soared more than 9% in the week. August trade surplus with U.S. reached a record $28 billion. Both property prices and transaction volumes rose in September and regulatory curbs fail to stem the price increase.
Indian stocks pared most of the gains made the day before on profit booking. Infosys declared a special dividend but the stock fell on the worries of weakening dollar. Gold and silver reach records as festive season lifts the demand.
Commodities, Bonds and Currencies
Yields on 10-year bond increased to 2.57% and on 30-year bonds rose to 3.98%.
The U.S. dollar increased to $1.39 to a euro and fell against the Japanese yen to 81.45 yen.
Immediate futures prices of Texas crude oil decreased $1.42 to $81.27 a barrel, for natural gas fell 0.12 cents to $3.51 per mbtu and gasoline prices decreased 3.44 cents to 210.21 cents a gallon.
In metals trading, copper prices increased 1.45 cents to $3.83 per pound, gold decreased $12.60 to $1,365.00 per ounce and silver fell 25 cents to $24.20.