Trader's Highlight

DJI- NEW YORK, Sept 24 (Reuters) - U.S. stocks edged lower on Monday as a disappointing forecast from Caterpillar CAT.N and weak German data increased concerns that global growth may remain sluggish.


Minutes before the close, Caterpillar cut its earnings forecast for 2015, citing weakness in the world economy. Its stock fell 0.9 percent to $90.87 and was the top drag on the Dow. After the bell, Caterpillar's stock lost another 2.1 percent to $88.99.

An index of German business sentiment declined for a fifth consecutive month in September, showing Europe's strongest economy was moving closer toward recession as the euro zone's debt crisis remains unresolved.
Concerns about a stalling global economy also were reflected in energy and technology shares, with the S&P energy index .GSPE down 0.5 percent and the S&P 500 technology index .GSPT down 0.8 percent.

But the S&P 500 is on track for a 7.6 percent gain for the quarter. Analysts said investors are probably now participating in "window dressing," where fund managers add some of the latest outperformers to their portfolio.

"Hedge funds remain somewhat short the market, and the end of the quarter is coming up, so I wouldn't be surprised to see equity markets push a bit higher over the near term," said Michael Sheldon, chief market strategist of RDM Financial, in Westport, Connecticut.

The gains have largely been tied to central bank stimulus plans. On Sept. 6, the European Central Bank announced its bond-buying plan; a week later, the Federal Reserve unveiled a third round of quantitative easing intended to bolster the economy and reduce U.S. unemployment.

The Dow Jones industrial average .DJI declined 20.55 points, or 0.15 percent, to close at 13,558.92. The Standard & Poor's 500 Index .SPX shed 3.26 points, or 0.22 percent, to 1,456.89. The Nasdaq Composite Index .IXIC dropped 19.18 points, or 0.60 percent, to end at 3,160.78.

Dragging down the Nasdaq, Apple Inc AAPL.O fell 1.3 percent to $690.79 even as its latest iPhone sold out. Concerns arose that the company was unable to produce the new phone quickly enough to meet demand.
Among other high-profile tech decliners, Facebook FB.O shares dropped 9.1 percent to $20.79. It was the Nasdaq's most actively traded stock.

In contrast, shares of Google Inc GOOG.O, the world's No. 1 search engine, climbed to a record high of $750.04 as analysts said its solid advertising business and its revenue make the company look more attractive compared with once-hot newcomers to the social media scene. Google's stock closed at $749.38, up 2.1 percent.

In the energy sector, the PHLX oil service sector index .OSX shed 1.4 percent, while U.S. crude oil CLc1 declined 1 percent to settle at $91.93. Worries about global demand pushed crude prices down more than 6 percent last week.
For the third quarter so far, the energy sector has performed well, however, with the S&P energy index .GSPE up 10.6 percent so far.

Shares of home builder Lennar Corp LEN.N fell 1.5 percent to $36.96 despite reporting steep increases in its third-quarter earnings and revenue.

Lennar's results follow a similarly strong report from KB Home KBH.N last week, and together give further evidence the housing market is moving toward recovery.
The PHLX housing index .HGX is up 61.1 percent for the year so far.

"What we're watching is the stocks in the sector recover from a very depressed base from a couple of years ago," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon.

Among the largest decliners on Monday was Peregrine Pharmaceuticals Inc PPHM.O, which plunged 78.5 percent to $1.16 after the company said it found major discrepancies in results from a mid-stage study of its experimental lung cancer drug conducted by a third-party contractor.
Volume was lower than average, with roughly 5.54 billion shares traded on the New York Stock Exchange, the Nasdaq and the Amex, compared with the year-to-date average daily closing volume of 6.54 billion.

Decliners outnumbered advancers on the NYSE by about 3 to 2, and on the Nasdaq, about seven stocks fell for every six that rose.

NYMEX- Sept 24 (Reuters) - U.S. crude oil stockpiles likely rose last week for the third straight week, while gasoline and distillate stockpiles were also seen higher, a preliminary Reuters poll showed on Monday.

The survey of eight analysts forecast on average that crude stocks climbed 1.4 million barrels last week. Six of the analysts projected a build in stockpiles, while two expected a draw.

Last week, the U.S. Energy Information Administration reported that in the week ended Sept. 14, domestic stocks of crude rose by 8.5 million barrels to 367.6 million barrels.

Gasoline stocks were forecast up 500,000 barrels for the week ended Sept. 21. In the previous week, gasoline inventories fell 1.4 million barrels to 196.3 million barrels, the EIA data showed. Gasoline supplies generally pick up in the fall as consumption eases with end of the summer driving season and as looser winter gasoline specifications come into force.

"We look for EIA gasoline stocks to post a moderate upswing that could be accentuated by secondary destocking amidst last week's price plunge," Jim Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois, said.

Carl Larry, President, Oil Outlooks and Opinions, forecast a draw, however, noting that gasoline has generally been stronger in the second half of the year in recent years.

Distillates inventories, which include heating oil and diesel, were expected to have increased 900,000 barrels last week. Seven analysts polled saw a build in distillate stocks.

Distillate stocks should indicate a small increase that could also receive some assistance from wholesaler destocking as rack prices plunged last week, Ritterbusch said.

Refinery utilization was forecast up 0.3 percentage for the week of Sept. 21, with four analysts expecting utilization to increase, while one saw a fall. Two other analysts forecast no change in refinery runs for the week, and one did not provide any value.

Refinery utilization had gained 4.2 percentage points to 88.9 percent in the week on Sept. 14.

U.S. refined product margins showed a mixed result across regions, down 0.8 percent on average in the week that ended on Friday, Credit Suisse said in a report on Monday.
The American Petroleum Institute will release its inventory report on Tuesday at 4:30 p.m. EDT (2030 GMT). The EIA will issue its data on Wednesday at

CBOT SOYBEAN- Soybean futures on the Chicago Board of Trade fell to an 11-week low on seasonal pressure from the expanding U.S. harvest and fund long liquidation, traders said.
* In addition, a weak German business sentiment report and concerns about global economic growth prompted investors to sell risky assets including commodities.
• But bargain-buying and short-covering limited losses in soybeans and soymeal futures. Several deferred soymeal contracts settled higher.

• Front-month November soybeans Sc1 dipped to $15.90-1/4, the lowest spot soybean price since July 5, but pared losses and settled at $16.10, back above psychological support at the $16 mark.

• The U.S. corn and soybean harvest should continue at a record pace this week with only a few slowdowns due to rain in the southern half of the Midwest, forecasters said. Frost over the weekend in northwestern areas caused minimal damage because crops are well advanced.

• Traders expected USDA in its weekly crop progress report later on Monday to show the U.S. soybean harvest at 20 percent complete, up from 10 percent a week earlier.
• USDA reported export inspections of U.S. soybeans in the latest week at 12.119 million bushels, below trade expectations for 18 million to 21 million.

• Light showers fell over Brazil's grain belt over the weekend and are likely to continue throughout the week as farmers sow what could be a record soybean crop, local forecaster Somar Meteorologia said. (Full Story)

• Argentine markets were closed for a public holiday. Normal market activity will resume on Tuesday.

FCPO-SINGAPORE, Sept 24 (Reuters) - Malaysian palm oil futures tumbled on Monday to their lowest in two years, hurt by rising inventories and steep losses in U.S. soybeans on expectations of higher output.

Bearish views by industry analysts at a vegetable oil conference also weighed on palm oil prices, which are trading almost 17 percent down since the start of the year, in their worst performance since 2008.

The benchmark December contract FCPOc3 on the Bursa Malaysia Derivatives Exchange lost 4.2 percent to close at 2,646 ringgit ($862) per tonne, recovering from an intraday low at 2,577 ringgit, a level unseen since September 2010.

Total traded volumes stood at 43,373 lots of 25 tonnes each, much higher than the usual 25,000 lots.

"Prices have come to a two-year low, it's not something that's surprising. In the month of September and October, we see a higher inventory, and it's something of a seasonality factor," said Ker Chung Yang, commodities analyst with Phillip Futures in Singapore.

"Last year we saw a year-low on Oct. 6, so we are quite close to that."

Palm oil prices will fall further this year as slowing economic growth reins in demand for biofuel, leading to higher stocks in top producers Indonesia and Malaysia, key industry officials concluded on Sunday at the Globoil Conference in Mumbai. (Full Story)

Prices could drop to 2,600 ringgit-2,700 ringgit per tonne by the end of this year, top analyst Dorab Mistry, head of edible oil trading with Indian conglomerate Godrej Industries told the meeting. (Full Story)

James Fry, chairman of commodities consultancy LMC International, also told the conference prices may drop to 2,575 ringgit per tonne in the last quarter of 2012 from current levels if Brent crude oil prices come down to $95 per barrel.(Full Story)

Palm oil stocks in No.2 producer Malaysia stood at a 10-month high of 2.1 million tonnes in August, and traders said stocks could climb higher in September on strong production.

Malaysian palm oil exports rose almost 15 percent for Sept. 1-20 from a month ago, according to cargo surveyor data. Demand for the edible oil could go higher on bargain hunting as prices hit new low, traders said.

Cargo surveyors Intertek Testing and Societe Generale de Surveillance will issue exports data for Sept. 1-25 on Tuesday. PALM/ITS PALM/SGS

Other vegetable oil markets also suffered steep losses on rising U.S. soybean output and unfavourable economic sentiment.

By 1004 GMT, U.S. soyoil for December delivery BOZ2 had lost 1.8 percent. The most active January 2013 soyoil contract DBYF3 on the Dalian Commodity Exchange closed 2.7 percent down after touching the lowest level since Aug. 6.

Palm oil can be used as a substitute for soyoil.

Chicago soybeans slid almost 2 percent to fall below $16 a bushel for the first time since mid-August on expectations of higher U.S. output and slowing Chinese demand.

REGIONAL EQUITY- BANGKOK, Sept 24 (Reuters) - Southeast Asian stock markets fell on Monday amid caution over progress in the euro zone debt bailout scheme, with losses in Bumi Resources BUMI.JK sending Indonesia to a one-week low, while Malaysia was dragged lower on selling by domestic investors.

Jakarta's Composite Index .JKSE shed 1 percent to 4,200.91, its lowest close since Sept. 13, led down by a 19 percent drop in thermal coal miner Bumi Resources after its biggest shareholder said it was investigating potential financial irregularities. (Full Story)

Malaysia's key stock index .KLSE ended down 0.7 percent at 1,612.38, its lowest close since July 3. Retail investors and domestic institutions sold $5.6 million and $3.5 million of shares, respectively, while foreigners bought around $9 million, stock exchange data showed.

The Philippines .PSI ended up 0.6 percent, regaining some lost ground from a drop of 1.1 percent in the last four sessions. Manila saw light trade, with turnover falling 25 percent from the average full-day volume in the last 30 sessions.