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Chinese bank stocks look shaky: Credit Suisse

Thu, 23 Feb 2012 05:47:48 GMT

HONG KONG (MarketWatch) -- Credit Suisse warned in a note Thursday against investing Chinese banks, maintaining its underweight recommendation on the sector, on concerns that recent plans to allow banks to rollover loans extended to local governments' financing vehicles will backfire on equity holders. The analysts said the plan would lead to lower returns, less transparency and reduced likelihood of a central-government-led "carve-out" of troubled loans. They said that property-related lending remained the biggest risk in 2012, as a potential meltdown would affect between 40% to 50% of banks' loan books.

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Hong Kong stocks fall, with real-estate dropping

Thu, 23 Feb 2012 01:44:02 GMT

LOS ANGELES (MarketWatch) -- Hong Kong stocks opened solidly lower Thursday, with the Hang Seng Index down 0.8% at 21,378.88, and Hang Seng China Enterprises Index losing 0.7%. The Shanghai Composite traded flat. Real-estate stocks were among the worst performers, after Shanghai's housing bureau denied reports that it was easing restrictions on second-home purchases. Mainland Chinese developer Agile Property Holdings Ltd. fell 1.7%, while among Hong Kong real-estate names, Cheung Kong Holdings Ltd. dropped 2.6%, and Henderson Land Development Co. fell 2%. Banks also suffered after U.S. financials lost ground in reaction to weak euro-zone business-activity data. HSBC Holdings PLC dropped 1.7%, China Merchants Bank Co. gave up 1.6%, and Agricultural Bank of China Ltd. fell 1.1%.

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Obama signs payroll-tax cut into law

Thu, 23 Feb 2012 00:52:00 GMT

WASHINGTON (MarketWatch) -- President Barack Obama signed a bill into law on Wednesday that extends a payroll-tax cut through the end of 2012, prolongs extended unemployment benefits, and prevents a cut in pay for doctors who treat Medicare patients. The House and Senate passed the bill last week. Obama campaigned hard for the bill, which he says will prevent a tax hike for 160 million Americans.

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Japanese stocks open lower, with banks weak

Thu, 23 Feb 2012 00:13:43 GMT

LOS ANGELES (MarketWatch) -- Japanese stocks traded lower early Thursday, with banks retreating in line with their U.S. peers after a raft of weak euro-zone data. The Nikkei Stock Average lost 0.2% to 9,535.12, while the Topix moved 0.3% lower. A surprise contractionin European business activity help push shares of globally exposed banks downward, with Mitsubishi UFJ Financial Group Inc. dropping 1.7%, Mizuho Financial Group Inc. gving up 1.2%, and Shinsei Bank Ltd. off by 1%. Stock in Mazda Motor Corp. plunged 8.2% as the car maker confirmed plans to issue new shares.

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Australian shares lower in early trading

Wed, 22 Feb 2012 23:24:56 GMT

SYDNEY (MarketWatch) -- Australian shares edged lower in early trading, with the S&P/ASX 200 index down 0.2% at 4,286.60. Miners were lower, with Fortescue Metals Group Ltd. down 0.9% and Rio Tinto Ltd. also down 0.9%. Investors were also eyeing earnings, with airline Virgin Australia Holdings Ltd. up 6.9% but Fairfax Media Ltd. down 2.4% after updating investors.

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Australia's Gillard calls leadership contest

Wed, 22 Feb 2012 23:21:07 GMT

SYDNEY (MarketWatch) -- Australia's prime minister Julia Gillard Thursday called a leadership contest for the Labor Party after Kevin Rudd resigned as foreign minister in Washington late Wednesday.

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Vivus weight-loss drug backed by FDA advisers

Wed, 22 Feb 2012 23:08:33 GMT

SAN FRANCISCO (MarketWatch) -- Vivus Inc. said late Wednesday a Food and Drug Administration advisory panel recommended 20 to 2 that the agency approve its weight-loss drug Qnexa. Shares of Vivus, which had been halted all day Wednesday, surged 91% to $20.11 on heavy volume in after-hours activity. The FDA, which is not bound by the panel recommendations but often follows them, is set to make a final decision on the drug by April 17. Qnexa, if approved, would fill a void left by several diet drugs that had been pulled from the U.S. market in past years due to safety concerns.

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Vivus diet drug gets FDA panel backing: reports

Wed, 22 Feb 2012 22:52:08 GMT

SAN FRANCISCO (MarketWatch) -- A panel that advises the Food and Drug Administration recommended approval of a weight-loss drug made by Vivus Inc. , according to media reports later Wednesday. The advisory panel, which the FDA is not required to follow, voted 20 to 2 to support the approval of Vivus' Qnexa, which would fill a void left by weight-loss drugs pulled from the U.S. market because of various safety issues. The FDA is expected to make a decision by April 17. Shares of Vivus, which had been halted early Wednesday morning, jumped 91% to $20.17 in after-hours activity.

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EU firewall comes before G-20 aid to IMF: Brainard

Wed, 22 Feb 2012 22:17:17 GMT

WASHINGTON (MarketWatch) - The G-20 will not decide on boosting resources for the International Monetary Fund until after euro-zone officials agree on their own rescue fund at a summit in early March, Lael Brainard, Treasury undersecretary for international affairs, said Wednesday. The IMF is currently seeking to raise up to $500 billion in additional lending resources so it's better equipped to respond to the euro crisis and other emergencies. But the United States and other countries are pushing Europe to first bolster the firewall designed to prevent the debt crisis from engulfing Spain or Italy. Brainard refused to give details on the size of the rescue fund, saying only that it must be big enough to convince financial markets "of the commitment by the members of the euro area to protect the euro area." She added that the firewall also must be "fully operational" and able to provide emergency funding for bank recapitalizations and sovereign needs. Europe's debt crisis will be a topic of discussion at the G-20 finance and central-bank officials' meeting in Mexico City this weekend, according to Brainard.

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Oil stocks up 3.6 million barrels: trade group

Wed, 22 Feb 2012 21:38:32 GMT

SAN FRANCISCO (MarketWatch) -- Crude-oil supplies rose 3.6 million barrels on the week ended Feb. 17, a trade group said late Wednesday. The American Petroleum Institute reported its weekly supply data a day later due to Presidents Day holiday. The API said gasoline supplies rose 314,000 barrels, while distillates stockpiles were up 630,000. The Energy Information Administration reports official data Thursday, also a day later than usual. Analysts polled by Platts expect crude-oil supplies up 1.7 million barrels, gasoline stockpiles down 450,000 barrels, and distillates inventories down 1.8 million barrels. Oil futures ended at a nine-month high on Wednesday at $106.28 a barrel on the New York Mercantile Exchange.

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SkullCandy swings to a profit as sales jump

Wed, 22 Feb 2012 21:18:01 GMT

SAN FRANCISCO (MarketWatch) -- SkullCandy Inc. said Wednesday afternoon that it swung to a fourth-quarter profit on stronger-than-expected sales of its headphone products and other audio accessories. For the quarter ended Dec. 31, SkullCandy reported net income of $12.3 million, or 44 cents a share, compared to a net loss of $9.7 million, or 69 cents a share, for the same period the previous year. Earnings on a non-GAAP basis would have been $13.2 million, or 47 cents a share, for the recent period. Revenue rose 29% to $83.4 milliion. Analysts were expecting earnings of 48 cents a share on revenue of $662.4 million for the period, according to consensus estimates from FactSet Research.

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U.S. stocks fall for first day in four

Wed, 22 Feb 2012 21:13:16 GMT

SAN FRANCISCO (MarketWatch) -- U.S. stocks closed lower Wednesday, breaking three straight days of gains, as investors backed off from a rally that had sent indexes to multiyear highs, and following economic data that showed business activity contracting in China and Europe. The Dow Jones Industrial Average lost 27.02 points, or 0.2%, to 12,938.67, its first down day in four. The S&P 500 fell 4.55 points, or 0.3%, to 1,357.66, also quitting three straight days of gains. The Nasdaq Composite fell 15.40 points, or 0.5%, to 2,933.17; the tech-weighted index has lost ground for three days.

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H-P net falls 44%, beats earnings view

Wed, 22 Feb 2012 21:12:22 GMT

SAN FRANCISCO (MarketWatch) - Hewlett-Packard on Wednesday reported a fiscal first-quarter profit of $1.47 billion, or 73 cents a share, compared with a profit of $2.6 billion, or $1.17 a share, for the year-earlier period. Revenue was $30.04 billion, down from $32.3 billion. Adjusted profit was 92 cents a share. Analysts were expecting earnings of 87 cents a share, on revenue of $30.7 billion, according to a consensus survey by FactSet Research.

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Analog Devices earnings fall 37% in first quarter

Wed, 22 Feb 2012 21:07:43 GMT

SAN FRANCISCO (MarketWatch) -- Analog Devices said Wednesday afternoon that earnings for the first fiscal quarter slid by 37% as a drop in sales was offset by higher expenses. For the quarter ended Feb. 4, Analog Devices reported net income of $139.4 million, or 46 cents a share, compared to net income of $222.1 million, or 70 cents a share, for the same period the previous year. Revenue fell 11% to $648 milliion. Analysts were expecting earnings of 48 cents a share on revenue of $662.4 million for the period, according to consensus estimates from FactSet Research. The company also raised its regular quarterly dividend by 20% to 30 cents a share.

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Oil inches higher, settles past $106 a barrel

Wed, 22 Feb 2012 19:48:08 GMT

SAN FRANCISCO (MarketWatch) -- Crude-oil futures ended marginally higher Wednesday, buoyed by lingering fears of a supply disruption after meetings in Tehran to assess Iran's nuclear program ended in disappointment for the officials with a watchdog nuclear agency. Crude traded in the red in early trading, only to seesaw as the day progressed. The April contract advanced 3 cents to settle at $106.28 a barrel on the New York Mercantile Exchange.

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Gold settles at three-month high, above $1,770/oz

Wed, 22 Feb 2012 19:28:38 GMT

SAN FRANCISCO (MarketWatch) -- Gold futures shook off initial weakness to settle at a three-month high on Wednesday. Gold for April delivery advanced $12.80, or 0.7%, to end at $1,771.30 an ounce on the Comex division of the New York Mercantile Exchange, the highest for a most-active gold contract since Nov. 16. Early losses were met with vigorous buying, aided as the dollar pared gains slightly during the session, analysts said.

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Two shot at Wal-Mart distribution center

Wed, 22 Feb 2012 18:50:23 GMT

BOSTON (MarketWatch) -- Local officials have confirmed that two people were shot on Wednesday at a Wal-Mart Stores Inc. distribution center in Dinwiddie County, Va., the Associated Press reported. A spokeswoman for the Dinwiddie County Fire Department told the AP that she didn't know the conditions of the two victims or whether a suspect had been apprehended. State and county police were still at the crime scene as of early afternoon.

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Time Warner's TBS renews "Conan"

Wed, 22 Feb 2012 18:37:52 GMT

BOSTON (MarketWatch) -- Time Warner Inc.'s TBS division has renewed Conan O'Brien's show "Conan" for two more years, according to the Associated Press on Wednesday. The show debuted on the cable network in November 2010 and has averaged about 1.1 million viewers per show so far this year.

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U.S. sells 5-yr notes at highest yield in 3 months

Wed, 22 Feb 2012 18:10:04 GMT

NEW YORK (MarketWatch) -- The Treasury Department sold $35 billion in 5-year notes on Wednesday at a yield of 0.9%, the highest level since November. Bidders offered to buy 2.89 times the amount of debt sold, compared to an average of 3.02 times at the last four sales of 5-year notes, according to CRT Capital Group. Indirect bidders, a group which includes foreign central banks, purchased 41.8%, compared to 47.2% of recent sales. Direct bidders, a class which includes domestic money managers, brought another 12.9%, versus an average of 11.1%. After the auction, the broader bond market held onto gains. Yields on 10-year notes , which move inversely to prices, fell 3 basis points to 2.03%.

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Argentina train crash leaves 49 dead

Wed, 22 Feb 2012 17:27:28 GMT

BOSTON (MarketWatch) -- A train crash left at least 49 dead and 600 injured at one of Argentina's busiest commuting stations, the English-language Buenos Aires Herald reported Wednesday. The crash, which occurred during morning commuting hours at Buenos Aires' Once station, resulted from a train colliding into a platform after failing to stop at a signal light. The newspaper added that emergency teams have concluded their rescue efforts, and that at least 100 victims were sent to nearby hospitals for treatment.

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Romney unveils plan to cut tax rates

Wed, 22 Feb 2012 17:25:42 GMT

WASHINGTON (MarketWatch) -- Mitt Romney unveiled a plan on Wednesday to lower Americans' marginal tax rates, repeal the alternative minimum tax and slash the corporate tax rate to 25% from 35%. Romney's campaign released the proposals ahead of Wednesday night's debate in Mesa, Arizona, the last debate before next week's Michigan and Arizona primaries. Romney is proposing a permanent, across-the-board cut of 20% in marginal rates, his campaign said.

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Gannett jumps 6% on outlook

Wed, 22 Feb 2012 16:54:17 GMT

BOSTON (MarketWatch) -- Shares of media conglomerate Gannett Co. Inc. jumped 6% to $15.91 on Wednesday after executives unveiled their plan to revitalize the company at a meeting with investors in New York. Gannett management said it expects to be able to grow revenue by 2% to 4% by 2015 and raise pre-tax margins to between 15% and 19%. The company also plans to buy back up to $300 million of its shares over the next two years, in addition to raising its dividend by 150% to 80 cents a share. The first newly raised dividend will be payable on April 2 to shareholders of record as of March 9.

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Flaw suspected in Boeing Dreamliner planes

Wed, 22 Feb 2012 16:34:49 GMT

BOSTON (MarketWatch) -- Boeing Co. plans to inspect about 55 of its new Dreamliner 787 aircraft to see if they carry a certain production flaw in the fuselage, Reuters reported on Wednesday. Boeing Chief Executive Officer James Albaugh told Reuters reporters in Singapore that the recently discovered flaw was "very fixable" and did not pose any immediate safety issues. He added that while the inspection process might impact delivery to some customers in the near term, the company should still be able to meet its production target for the year. Boeing has said it hopes to raise its monthly output from 2.5 to 10 aircraft a month by the end of 2013.

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Canadian stocks open with minor gains

Wed, 22 Feb 2012 15:28:10 GMT

NEW YORK (MarketWatch) -- Canadian stocks opened with minor gains in early trade Wednesday after Fitch Ratings downgraded Greece to a rating that reflects imminent default, deepening concerns over its debt crisis, and a business survey in Europe showed activity contracting. The S&P/TSX Composite Index added 13.79 points to 12,637.15. Gains were led by the technology sector, with shares of Research In Motion Ltd. going up 1.4%. Rogers Communications rose 1.4% after the company announced an 11% hike in its annualized dividend. Shares of Talisman Energy Inc. remained relatively flat after Japan's Mitsubishi Corp. agreed to buy stakes in nine of Talisman's licences in Papua New Guinea's natural gas blocks for $280 million. The financial subsector was among the bigger losers as shares of most banks fell.

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U.S. stocks lower after housing data

Wed, 22 Feb 2012 15:12:23 GMT

NEW YORK (MarketWatch) -- U.S. stocks retained mild losses Wednesday as an industry group reported sales of existing U.S. homes rose 4.3% in January. The Dow Jones Industrial Average fell 12.64 points to 12,953.01. The S&P 500 Index shed nearly 2 points to 1,360.28. The Nasdaq Composite slipped 1.54 point to 2,946.85.

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Financial stocks slip; Morgan Stanley off 1.6%

Wed, 22 Feb 2012 15:02:00 GMT

SAN FRANCISCO (MarketWatch) -- Financial stocks slipped Wednesday after a weak euro-zone manufacturing report brought back concerns about a recession in the region, to which many large institutions are exposed. The Financial Select Sector SPDR Fund , which tracks financial stocks in the S&P 500, lost 0.7%. Most bank and capital-markets stocks were slightly lower, led by Morgan Stanley , off 1.6%. Goldman Sachs Group Inc. shed 0.9%. The Stoxx Europe 600 bank index was down 2%, outpacing a 0.9% selloff for the pan-Europe Stoxx 600 index . In the Dow Jones industrial Average , J.P. Morgan Chase & Co. fell 0.7% and Bank of America Corp. lost 0.6%.

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T-Mobile asks FCC to block Verizon deal

Wed, 22 Feb 2012 14:59:54 GMT

BOSTON (MarketWatch) -- Deutsche Telekom AG's T-Mobile USA unit has asked the Federal Communications Commission to block Verizon's plan to buy certain wireless-spectrum assets from Comcast Corp. , Time Warner Cable Inc. , Bright House Networks, and Cox Communications, the Associated Press reported Wednesday. Additional spectrum would give Verizon the ability to raise download speeds for such high-data devices as laptops and smartphones. Last month, T-Mobile told regulators that it needs additional spectrum in order to compete with other wireless providers. In December, AT&T dropped its planned bid to acquire T-Mobile after facing months of opposition from the U.S. Justice Department over anti-trust concerns.

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U.S. existing home sales climb 4.3% in January

Wed, 22 Feb 2012 15:00:12 GMT

WASHINGTON (MarketWatch) -- Sales of U.S. existing homes rose 4.3% in January and inventories fell to nearly seven-year lows, as lower prices, unusually warm weather and an improving economy all lifted demand. The National Association of Realtors said Wednesday that January sales were at a seasonally adjusted annual rate of 4.57 million, compared to a MarketWatch-compiled economist forecast of 4.7 million. December's sales were downwardly revised to a 4.38 million rate from a previously reported 4.61 million; December sales were downwardly revised as part of a seasonal adjustment that impacted monthly, but not annual, sales. That's not to be confused with the 14% downward revision the trade group recently conducted on sales data from 2007 onwards. Median sales prices in January fell 2% from a year ago to $154,700. Inventories fell 0.4% to 2.31 million, which is the lowest inventory level since March 2005 and represents 6.1 months of supply.

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Chico's, Zale jump; TJX, Dollar Tree drop

Wed, 22 Feb 2012 14:59:05 GMT

NEW YORK (MarketWatch) -- Women's clothing retailer Chico's FAS Inc. and jewelry chain Zale Corp. were among the leading gainers in a mixed retail sector trading Wednesday morning. Chico's was up 11% after its fourth-quarter results and full-year sales outlook topped Wall Street expectations. Zale was up 5% after it reported better-than-expected quarterly sales. Clothing retailer Urban Outfitters Inc. climbed 3.8% after its stock was raised to outperform from market perform by BMO Capital. Among the decliners, discounter Dollar Tree Inc. was down 1.3% after the mid-point of its first-quarter forecast range missed analysts' estimates. TJX Cos. , parent company of T.J. Maxx and Marshalls, fell 1.4%. It reported an in-line fourth-quarter profit.

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Nabors, Range lead energy stocks higher

Wed, 22 Feb 2012 14:51:31 GMT

SAN FRANCISCO (MarketWatch) -- Energy stocks edged higher Wednesday, following the lead of Nabors Industries Ltd. and Range Resources Corp. after both reported quarterly results. Newfield Exploration tumbled and oil prices fell. The energy sector on the S&P 500 added 0.3%, the best of 10 sectors, while the broad index slipped. Nabors Industries rose 3.9% after the contract land driller said late Tuesday it swung to a loss, hurt by a charge related to the exit of a former chief executive. Excluding that charge, earnings topped forecasts. Range Resources gained 3.5% after reported a narrower loss in the latest quarter. Newfield Exploration , also in the wake of quarterly results late Tuesday, lost 9.1%.

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