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Market Update

Wall Street Indexes Lack Direction, Manufacturing Orders Rebound


Author: Nichole Harper
ticker.com
Last Update: 1:11 PM ET August 04 2015

1:10 PM New York City, New York Market indexes on Wall Street lacked direction and manufacturing orders rebounded in June on strong demand for transportation equipment including aircrafts. Shire offered $33 billion to acquire the recent Baxter spin-off Baxalta.

Stocks on Wall Street lacked direction and investors digested latest earnings reports, a hostile offer from Shire and manufacturing orders report for June month.

New orders for manufactured goods in June jumped $8.7 billion or 1.8% to $478.5 billion, followed by 1.1% decrease in May, the Department of Commerce reported.

On Wall Street, Tollbooth Strategy Index edged up 13.43 to 10,815.78.

S&P 500 index slid 1.29 to 2,096.74 and the Nasdaq Composite Index fell 6.36 to 5,109.06.

Crude oil in New York gained 88 cents to $46.05 a barrel and gold added $2.20 to $1,091.60 an ounce.

U.S. Movers

American International Group Inc (AIG) declined 5.1% or $3.27 to $60.88 after the insurance company reported total revenues in the second-quarter ending in June slumped 2.7% to $15.70 billion form a year ago period.

Net income in the quarter tumbled 41.9% to $1.80 billion or $1.32 per diluted share compared to $3.07 billion or $2.10 from the same quarter last year.

Separately, AIG plans to buyback an additional $5 billion of its common stock.

Archer Daniels Midland Company (ADM) jumped 2.5% or $1.18 to $48.88 after the food processing company reported total revenues in the second-quarter ending in June plunged 20% to $17.19 billion form a year ago period.

Net income in the quarter declined 27.6% to $386 million or 62 cents per diluted share compared to $533 million or 81 cents from the same quarter last year.

The food processing company said revenues in agricultural services business tumbled 24% to $7.01 billion and revenues in corn processing segment plunged 19.9% to $2.58 billion while revenues in oilseeds processing business slumped 21.4% to $6.82 billion.

Kellogg Company (K) gained 1.9% or $1.25 to $67.32 after the ready-to-eat cereal and convenience foods maker reported net sales in the second-quarter ending on July 4 declined 5.1% to $3.50 billion form a year ago period.

Net income in the quarter declined 24.6% to $223 million or 63 cents per diluted share compared to $295 million or 82 cents from the same quarter last year.

Net sales in North America dropped 2.8% to $2.3 billion while net sales in Europe plummeted 15.3%. Net sales in Asia Pacific slumped by 5.2% but sales in Latin America increased 2.5%.

European Markets

In the euro area industrial producer price index in May fell 0.1%. In May, prices were stable in the euro area and rose 0.1% in the wider region of EU28, the Statistical Office of the European Communities said.

In London trading, FTSE 100 index fell 10.64 or 0.2% to 6,684.32 and in Frankfurt the DAX index edged down 2.55 to 11,441.28.

In Paris, CAC 40 index slid 15.58 or 0.3% to 5,105.23.

AXA SA rose 0.1% to 24.29 after the France-based insurance services provider reported total revenues in the first-half ending in June climbed 10% to 54.52 billion from 49.71 billion in a year ago period.

Net profit in the period rose 2% from a year ago to 3.08 billion compared to 3.01 billion and diluted earnings per share increased to 1.19 from 1.18.

AXA said revenues in the U.S. soared 23% and in France climbed 9%.

Bayerische Motoren Werke AG dropped 2.6% to 89.71 after the Germany-based auto maker reported total revenues in the first-half ending in June surged 17.6% to 44.85 billion or 38.14 billion in a year ago period.

Net profit in the period increased 1.2% from a year ago to 3.27 billion compared to 3.23 billion and diluted earnings per share increased to 4.96 from 4.90.

Total number of passenger cars sold in the first-half jumped 7.8% to 1,099,748 units from 1,020,211 units in a year ago period.

Shire Plc declined 4.6% to 5,465 pence after the Ireland-based rare diseases medicines maker confirmed that it has made a hostile offer to acquire rare-disease treatment maker Baxalta Inc. in a stock deal with a total enterprise value of about $33.9 billion.

The proposal valued the company at $45.23 a share, representing a premium of 36% over closing price of August 3.

Asian Markets

Earnings season in Japan picked up momentum as trading companies reported shrinking revenues and rising profits. Yen held firm as monetary base in July jumped 32.8% from a year ago. Current account surplus surged nearly 50%.

Earnings season in Tokyo picked up and trading, engineering and technology companies reported mixed results.

The monetary base in July soared 32.8% to 325.74 trillion yen after 34.2% decline in June, the Bank of Japan said.

Current account balances surged 49.5% and adjusted monetary base climbed 25.6% from a year ago month.

The Nikkei 225 Stock Average slipped 27.75 or 0.2% to 20,520.36 and the broader Topix index edged up 0.23 to 1,659.83.

The yen eased to 124 against a dollar.

Itochu Corp slipped 1.1% to 1,484.50 yen after the diversified trading company said net sales in the first-quarter ending in June slumped 4.9% to 1.26 trillion yen from 1.32 trillion yen in a year ago period.

Net income in the quarter surged 50.3% to 121.46 billion yen compared to 80.84 billion yen and diluted earnings per share climbed to 75.48 yen from 48.89 yen the same period a year ago.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc