Market Review By TraderXP:
The Australian dollar fell for a second day against the yen after data showed consumer confidence was little changed from two-month low, highlighting the concerns of the economy of the South Pacific weaken.
"We saw last week that the internal data is not that good and the Australian took, perhaps a small hit," said Derek Mumford, director of Sydney Rochford Capital, foreign exchange risk management of the company. "I would not say today's data reflect any boom of confidence."
Market News
Dow, S & P 500 inch with retail, but Apple, pulls back
Dow and S & P 500 rose on Tuesday after stronger than expected data on retail, while technology heavyweight Apple, dragged on the market the third day.
Apple, was the largest weight as the S & P 500 and Nasdaq100. NDX on Monday after reports a decline in orders for iPhone parts. Shares fell 3.2 percent to $ 485.92, closing below $ 500 for the first time since February.
Retail stocks advanced after a government report showing retail sales rose more than expected in December, was regarded as a favorable sign for the fourth-quarter growth. A separate report showed manufacturing activity in New York State, the contract for the sixth consecutive month in January.
"A little better than expected news on retail sales confirms that the consumer is still alive and well," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia, which manages about $ 54 billion in assets.
Among retailers, American Eagle Outfitters Inc gained 4.8 percent to $ 20.58 and Gap Inc rose 3.4 percent to $ 32.46. Morgan Stanley index of retail. MVR advanced 1.5 percent.
Express Inc rose 23.8 percent to $ 17.40 after the apparel retailer raised its fourth quarter and 2012 outlook.
Index Dow Jones Industrial Average rose 27.57 points, or 0.20 percent, to 13,534.89. 500 Index Standard & Poor was up 1.66 points, or 0.11 percent, to 1,472.34. The Nasdaq Composite Index fell 6.72 points, or 0.22 percent, to 3,110.78.
Apple's stock has lost about 7 percent lastthree sessions and by 8.7 per cent since the beginning of the year.
"It's hard to make out exactly what is putting pressure on him. But in the end, his influence, believing that this is 3 1/2 to 4 percent of the S & P 500 index, it is felt," Luschini said.
"I attribute (it) just some of the bloom coming off the rose. They did not necessarily do anything wrong, as much as others have caught up."
Also keeping investors on edge debtceiling impending discussion. On Monday, U.S. President Barack Obama has rejected any talks with Republicans to raise the U.S. debt ceiling. U.S. may default on its debt if Congress does not increase the borrowing limit.
The solution of the debt ceiling over the question of what if. Investors do not expect the U.S. default, but they also fear another eleventh-hour agreement in August 2011.
Expected lackluster earnings season, also kept investors from making aggressive bets. Analyst estimates quarter fell sharply in October. S & P 500 earnings growth is now seen to only 1.8 per cent compared with a year ago, Thomson Reuters data showed.
Homebuilder Lennar reported a sharp rise in quarterly profit, but shares fell 0.8 percent to $ 40.68 on worries that growth was slowing orders.
Dell Inc shares added to gains on Monday, eventually 7.2 percent to $ 13.17, after sources said that the talks take private computer maker are in an advanced stage.
On the down side, Facebook shares dropped 2.7 percent to $ 30.10. The company introduced the "graph search," which CEO Mark Zuckerberg said would help its more than a billion users sort through the content in a social network and content channels.
Volume was about 5.8 billion shares traded on the New York Stock Exchange, Nasdaq and NYSE MKT, compared with 2012 average daily volume of about 6.45 billion closing.
Advanced ahead of the outsiders at the NYSE by 17 to 12, and on the Nasdaq by 13 to 11. Reuters.com
Currencies
Yen extends gains for the second day, the euro stung Juncker
The yen extended its gains for the second day on Wednesday after a warning of excessive weakness of the Japanese cabinet while the euro also slipped after a top European official complained about their recent achievements.
Traders unwound bearish positions in the Japanese yen after Japan Economy Minister Akira Amari warned Tuesday that excessive weakness of the yen may increase import prices, harm people's lives.
"The fall of the yen was pretty fast now. If it drop too quickly, its appeal can be fast as well. I think Amari comments were deliberate efforts to combat overheating in the market," said Kimihiko Tomita, head of forex at State Street in Tokyo.
The dollar fell to 88.06 yen minimum, breaking below key support at 88.25, 50 percent retracement rally from January 9-14 to 86,825 2-1/2-year high 89.67 and Tenkan Ichimoku charts.
This is the last trading at 88.33 yen, up 0.5 percent fromlate U.S. levels.
Many market participants are recent rebound yen a small correction in the long downward trend that began late last year on expectations that the Bank of Japan will have to take drastic measures to reflate sluggish economy.
New Japanese Prime Minister Shinzo Abe was very vocal about the fact that the Bank of Japan to address deflation once and for all, calling the two target inflation rate. The Bank of Japan is widely expected to do so in itspolicy meeting on 21-22 January.
But some traders say there can be a buy-on-rumor-sell-on-fact type of sales in dollar / yen after this meeting.
"I have not met people who seriously thinks that the Bank of Japan may raise inflation up to two percent," said Takako Masai, head of forex at Shinsei Bank, adding that the meeting of the Bank of Japan may offer a good chance to enter bearish bets on the yen.
The euro also slipped 0.6 percent against the yen to 117.28 yen as the single currency has lost momentum after Jean-Claude Juncker, chairman of euro zone finance ministers said the euro was "dangerously high."
The single currency also eased against the dollar, trading at $ 1.3289, up 0.1 percent on the day and gone from 11-month high of $ 1.3404 set on Monday.
Traders said comments Juncker just gave investors an excuse to cash in on recent gains and do not necessarily reflect the reversal of its uptrend.
Euro rallied about 3 percent against the dollar in the past few sessions after the European Central Bank (ECB) sounded moreupbeat to restore the region.
Since the focus is on the yen and the euro, the dollar shuffled sideways in relation to other currencies. The Australian dollar, for example, was little changed at $ 1.0561, still within reach of a 4-month high near $ 1.0600 set last week. Reuters.com
