DJI - NEW YORK, Jan 16 (Reuters) - The
S&P 500 ended nearly flat on Wednesday as solid earnings from two major
banks and a bounceback in Apple shares offset concerns about a lower forecast
for global growth in 2013.
Shares of Goldman Sachs hit their highest since May 2011 as earnings nearly tripled on increased
revenue from dealmaking and lower compensation expenses. JPMorgan Chase Said fourth-quarter net income jumped 53 percent and earnings for 2012 set a
record.
JPMorgan shares rose 1 percent to
$46.82, while Goldman climbed 4.1 percent to $141.09.
They were among the first big banks
to report results and helped to lift estimates for S&P 500 corporate
earnings slightly, to a 2.2 percent gain, Thomson Reuters data showed.
"Pretty solid numbers from both
JPMorgan and Goldman Sachs are putting a lot of momentum behind the financials,
with a lot more names to report this week. But I think that's helping to put a
better bid to the market overall," said Michael James, senior trader at
Wedbush Morgan in Los Angeles.
"There could not have been more
negativity around Apple going into today. So was it due for an oversold bounce
on a trading basis? Absolutely," James said.
The Dow Jones industrial average was down 23.66 points, or 0.17 percent, at 13,511.23. The Standard & Poor's
500 Index was up 0.29 points, or 0.02 percent, at
1,472.63. The Nasdaq Composite Index was up 6.77 points, or 0.22 percent, at 3,117.54.
Other data showed U.S. homebuilder
confidence in the market for single family homes held steady near seven year
highs in January, suggesting the outlook for the housing market remained
upbeat.
NYMEX - NEW YORK, Jan 16 (Reuters) - U.S.
crude futures rose on Wednesday after the Energy Information Administration's
weekly inventory report showed crude stocks fell last week in the United
States.
CBOT SOYBEAN - Soybean futures on
the Chicago Board of Trade rallied on technical buying and concerns about
outlooks for hotter and drier crop weather in Argentina, traders said.
· The Commodity Weather Group said crop areas of Argentina will turn drier in the next 10 days. The firm said crop stress will be minor and focus on about one-quarter of Argentine corn and soybeans, but more notable rains will be needed in early February.
· Basis bids for soybeans shipped by barge to the U.S. Gulf Coast were mostly steady early on Wednesday, underpinned by strong spot demand but capped by good soybean movement on the river system.
· Trade expects USDA on Thursday to report export sales of U.S. soybeans in the latest week at 750,000 to 950,000 tonnes, weekly soymeal sales at 100,000 to 150,000 tonnes and soyoil sales at 15,000 to 25,000 tonnes.
· Malaysian palm oil futures rose to a one-week high on investor optimism a zero-duty tax structure will spur exports from the world's No.2 producer and help boost global demand for the tropical oil.
KUALA LUMPUR, Jan 16 (Reuters) -
Malaysian palm oil futures rose to their highest in over a week on Wednesday on
investor optimism a zero-duty tax structure will spur exports from the world's
No.2 producer and help boost global demand for the tropical oil.
The positive sentiment was also
buoyed by seasonally slowing production which could help curb stockpiles that
hit a new record of 2.63 million tonnes in December.
The Malaysian government announced
on Tuesday that it will retain its crude palm oil export tax at zero percent
for February, the same as January, in an effort to give a competitive edge over
top producer and biggest rival Indonesia.
"Indonesia's crude palm oil is
now pricier than Malaysian crude palm oil. So Malaysian exports will definitely
pick up," said a trader with a foreign commodities brokerage.
"Most traders are trading on
the forward view. Even though exports are not looking so good now, but with the
overall drop in production, we are expecting stocks to be lower in February or
March," the trader added.
The benchmark April contract on the Bursa Malaysia Derivatives Exchange closed 0.5 percent higher at 2,428
ringgit ($804) per tonne. Prices had earlier touched 2,444 ringgit, the highest
level seen since Jan. 7.
Total traded volume stood at 35,249
lots of 25 tonnes each, higher than the usual 25,000 lots.
Weaker winter demand from Europe and
China had taken a toll on palm oil exports, causing shipments to fall more than
20 percent in the first 15 days of January. Palm oil tends to solidify in cold
temperatures.
But with warmer weather on its way,
traders expect demand to pick up in the next few weeks.
"Moving forward, it can only
improve -- it will not go worse. The weather is getting warmer and you will see
more imports going into China," the trader added.
Regional equities - BANGKOK, Jan 16 (Reuters) - Thai
stocks edged lower for a second session on Wednesday as investors took profits
on large caps and the strengthening baht kept inflows in check, while
Indonesian shares extended gains to a record finish led by banking shares.
After a range-bound session,
Bangkok's benchmark SET index finished 0.5 percent lower at 1,416.14, taking
the SET's 14-day relative strength index to 67.04, below the overbought mark of
70 and above.
The recent rally had capped Thai
shares in overbought territory in most sessions this year, prompting
profit-taking. Petrochemicals firm PTT Global Chemical Pcl, which hit a record
high on Monday, extended its loss for a second day to fall nearly 2 percent.
The market recorded modest foreign
inflows of $20 million on Wednesday after Tuesday's $17 million and Monday's $66
million, the Thai bourse said. The baht hit 29.86 per dollar on Wednesday, its
strongest since September 2011.
Jakarta's Composite Index added 0.23
percent to close at 4,410.96, topping its record close of 4,410.02 set on Jan.
4.
Broker Citi maintained its year-end
index target of 5,000, with 'overweight' rating on banks, property, cement and
infrastructure sectors, it said in a research note dated Jan. 15.
