10:20 AM New York – U.S. stock traded sideways and resource sector companies in New York, Europe and Asia traded higher after China reported better than expected increase in industrial production. American Movil offer valued Dutch telecom operator KPN for $13.7 billion.
Stocks on Wall Street lacked direction and broader indexes in Europe closed higher after China reported better than expected growth in industrial production and wholesale inflation declined for the seventeenth month in a row.
S&P 500 index declined 2.05 to 1,695.43 and Nasdaq Composite Index decreased 1.47 to 3,667.65.
Gap Inc increased 2% after the apparel retailer reported July same store sales increased 1%.
Nvidia decreased 3% after the maker of graphics processor said revenues in the last quarter declined 6.4% to $977 million and in the current quarter is expected between $1.03 billion and $1.07 billion.
Priceline.com Inc soared 6% after second-quarter sales soared 27% to $1.68 billion and international booking surged to $8.6 billion from $6 billion and accounted for 85% of all transactions.
European indexes increased for the second day in a row led by the advance in resource stocks after China reported better than expected industrial production growth.
In London resource sector heavy FTSE 100 index gained 0.6% and in Frankfurt the DAX index added 0.2%.
In Paris, CAC 40 index edged up 0.15% and in Zurich the SMI closed up 0.2%.
Fresnillo Plc gained 6%, Randgold Resources soared 4% and Lonmin Plc added 4.1%.
KPN, Holland based telecom company soared 16% after Mexico based American Movil offered 2.40 euros a share, 20% premium to yesterday’s closing price, for 70.1% of shares it does not own.
On the offer news, Telekom Austria AG, partly owned by American Movil, surged 7.6%.
Rheinmetall AG increased 4% after the German maker of armored vehicles said its defense unit increase non-European orders share to 66% in the first-half compared to 46% in the year ago period.
Industrial production in July increased 9.7% from a year ago and the economy expanded at 7.5% in the second quarter to June, the National Bureau of Statistics said today.
National Bureau of Statistics in China said consumer price inflation index was flat in July at 2.7% and producer price index declined for the 17th month in a row to 2.3% from 2.7% in June.
In addition, statistics agency said consumer price inflation index was flat in July at 2.7% and producer price index declined for the 17th month in a row to 2.3% from 2.7% in June.
The Nikkei index in Tokyo edged up in choppy session and for the week plunged as investors turned cautious ahead of fundamental reforms including sales tax increase in the next few months. For the week, the Nikkei index plunged 5.9%.