After his recovery in the day Wall Street takes a break. The Dow Jones falling by 0.25% to 11,549 points and the Nasdaq 0.70% to 2639 points. Investors should indeed play the card of caution before the release, after closing, the beige book of the U.S. central bank. This snapshot report on the health of the U.S. economy is still highly anticipated by the markets.
Meanwhile investors remain focused on company results and the problems of sovereign debt in Europe. After the warning on the sovereign rating of France, Moody's downgraded by two notches on Tuesday night the note of Spain. This goes from A1 to Aa2 with negative outlook. The rating agency believes that the country remains vulnerable to difficulties in credit markets.In addition, Moody's does not exclude a further reduction if the crisis worsens in the euro area.
Paris and Berlin would be willing to strengthen the stability fund
Rumors press reported an agreement between France and Germany to increase the capacity of European Financial Stability Fund (EFSF) to 2000 billion. But European officials have denied the existence of a formal agreement. This issue should be at the heart of the EU summit on Sunday. Yesterday, however, German Chancellor Angela Merkel reiterated that the top of Sunday should be an "important step" but that the crisis can not be resolved "in a single peak."
At the macroeconomic level, housing starts in the U.S. rebounded strongly in September (15%), driven by the community housing sector, according to figures released Wednesday in Washington by the Department of Commerce.The consumer prices increased in September (0.3%) for the third consecutive month, continuing to erode the purchasing power of households. Investors will also monitor the weekly report on Wednesday oil stocks.
On the foreign exchange market, the European currency climbed to 0.60% in mid-session 1.3825 dollars against 1.3752 dollars late Tuesday.Oil, however, is more mixed.
The barrel of "light sweet crude" for November delivery lost four hundred, to 88.30 dollars a barrel while Brent North Sea crude for December delivery was appreciating by 13 cents to 111.28 dollars.
Mixed results
• Morgan Stanley (2.77% to 17.09 dollars)
The bank on Wednesday reported a profit of $ 2.2 billion in the third quarter against a loss a year earlier, along with a sales increase, both worn by an accounting adjustment.
• AMR (-7.80% to 2.60 dollars)
The parent of the airline American Airlines, announced Wednesday a net loss of $ 162 million for the third quarter, stronger than expected, partly attributed to rising fuel prices no fax payday advances.
• United Technologies (-0.39% to 73.83 dollars)
Technology Group has announced a 10.5% increase in profit to 1.32 billion in the third quarter and raised its forecast for annual results.
• Abbott Laboratories (4.50% to 54.80 dollars)
The health group will split into two listed companies, one centered on the biotechnology and pharmaceutical drugs, the other on medical devices, diagnostics, nutritional supplements and generic drugs, announced the laboratory management.
After the close of Wall Street, Tuesday, several big names from the coast, including three technology giants Apple, Intel and Yahoo! have announced their quarterly results.
• Apple (-5.17% to 400.41 dollars)
The company issued a apple annual net profit up 85% to 25.22 billion dollars but less than market expectations, with a fourth quarter hit by the slowdown in sales of iPhones. The turnover stood at $ 28.3 billion against $ 29.6 billion expected. The firm at the apple has sold 17 million iPhones during the quarter (as against 20 million expected), 4.89 million Mac computers (4.4 million expected) and 11.12 million iPads. For the current quarter, the group of Cupertino expects earnings per share of 9.3 dollars against 9.02 dollars estimated by analysts.
• Intel (4.40% to 24.43 dollars)
Micoprocesseurs a giant in the third quarter against a BPAD $ 0.65 $ 0.61 expected and $ 0.52 last year.The turnover stood at 14.23 billion against $ 13.87 billion a year earlier. The group also increased the amount of its share repurchase program to $ 10 billion.
• Yahoo! (4.46% to 16.16 dollars)
The engine iinternet published for the third quarter EPS of $ 0.21 against $ 0.17 expected. The revenue excluding traffic acquisition costs amounted to $ 1.07 billion, as expected. For the current quarter, the company expects a turnover of 1.13 billion dollars against 1.24 billion expected by analysts.
• Cree (-8.17% to 25.52 dollars) has reported a turnover of 269 million dollars in the first quarter of 2011/2012, stable over one year. Net income fell 58% to 28 million.For the current quarter, Cree expects a net profit of 29-33 million.
• CSX (1.63% to 21.05 dollars)
The group of small electrical equipment achieved a turnover up 11% to $ 2.96 billion. Net income was $ 464 million against $ 414 million a year earlier.
After the close American Express and eBay announce their figures.