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U.S. futures lower as Yellen say Dec. rate hike possible

Posted: 05 Nov 2015 12:52 AM PST

Trader Kevin Lodewick, center, works on the floor of the New York Stock Exchange, Nov. 2, 2015. (Photo: Richard Drew)

Trader Kevin Lodewick, center, works on the floor of the New York Stock Exchange, Nov. 2, 2015. (Photo: Richard Drew)

Major U.S. market index futures were lower Thursday, as confidence grows that China’s stimulus efforts have succeeded in stabilizing the economy, while testimony from Fed Chair Janet Yellen pointed toward a possible December rate hike.

Here is where major index futures stood ahead of the opening bell:

  • Dow: -0.1%
  • S&P 500: -0.1%
  • Nasdaq: -0.1%

China’s Shanghai Composite jumped 63.18 points, or 1.8%, to close at 3,522.8.  Angus Nicholson, a market analyst at IG in Melbourne, Australia, said stability in China’s economic data, such as retail sales and Chinese manufacturing indicate Beijing’s stimulus policies are starting to have an effect in supporting growth.

Japan’s Nikkei 225 climbed 189.5 points, or 1%, to close at 19,116.4 and Hong Kong’s Hang Seng index stayed essentially flat, losing 2.53 points to close at 23.051.

Investors were also weighing Yellen’s testimony before the House Financial Services Committee.

Yellen said the economy is “performing well” and that a December interest rate hike is a “live possibility,” although she stressed the decision hasn’t yet been made and will depend on how the economy performs in the coming weeks.

“Even with weak data, Fed rhetoric increasingly points toward a December lift-off,” DBS Group Research said in a daily commentary. The report said it was only a week ago when markets lowered the odds of a December rate hike due to poor data. “Markets have had to adjust expectations rapidly.”

European benchmarks lost ground, with Britain’s FTSE 100 down 0.6%, Germany’s DAX 0.2% lower and France’s CAC-40 down less than 0.1%.

Contributing: The Associated Press 

Papa John’s shares fall 14% on revenue drop, weak guidance

Posted: 04 Nov 2015 01:04 PM PST

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Shares of Papa John's International fell 14% Wednesday after the pizza chain reported sluggish third quarter sales and issued a warning for a continued slowdown later this year.

The quarterly revenue dipped 0.3% from a year ago to $389.3 million. The company blamed the fall on lower equipment sales of its new retail transaction system — called FOCUS — that is being rolled out to its franchisees.

Its unit that sells pizza ingredients to restaurants, PJ Food Service, also reported lower sales, the Louisville, Ky.-based company said.

Net income went up 11.8% to $18 million. Earnings per share for the quarter totaled 45 cents, matching analysts' consensus estimate compiled by Zacks Investment Research.

Shares fell $9.25 to $58.80 as of Wednesday afternoon.

The company now expects earnings for 2015 to be “near the low end” of the range of $2.04 and $2.10 per share.

Bullish numerology: Years ending in "5" is Wall Street's lucky number

Posted: 04 Nov 2015 10:19 AM PST

Years ending in five have been Wall Street's lucky number for a long time. Not into numerology? Think again.

It's often said that there's no sure thing on Wall Street. But investing in stocks in years ending in five is as close as it gets.

The S&P 500 stock index has NEVER posted a down year in years ending in five – going back to 1928. The average gain for U.S. stocks in years ending in five is a whopping 25%.  Compare that to the average gain of roughly 10% in all years.

But 2015 has been rockier. The large-company stock index was deep in the red during this summer's price correction. And heads into Wednesday's trading up just 2.5% for the year. And there's still two months to go. And a possible rate hike from the Federal Reserve and other potential headwinds looming.

So there's still a chance the Lucky Five trend will prove faulty in 2015.

But if a year-end rally occurs, investors will be talking about the stock market's uncanny success in years ending in five – all the way to the bank.

 

Japan Post IPO shares increase

Posted: 04 Nov 2015 08:57 AM PST

A man mails a letter into a mailbox in front of a post office in Tokyo Wednesday, Nov. 4, 2015.

A man mails a letter into a mailbox in front of a post office in Tokyo Wednesday, Nov. 4, 2015.

Japan Post shares gained 26% on their first day of trading Wednesday, after Japan’s postal service sold shares to the public for the first time.

The stock, listed on the Tokyo Stock Exchange, raised $11.7 billion for the company making it one of the biggest initial public offerings of the year. The company plans to use the proceeds to help rebuild damage left from the 2011 tsunami catastrophe.

Japan Post was the biggest slice of a three part public offering, including Japan Post Bank and Japan Post Insurance, which rose 15% and 56%, respectively, says Richard Peterson of S&P Capital IQ.

Shares of Japan Post closed at 1,760 yen, giving the company a market value of $65.2 million in U.S dollars.

Follow Matt Krantz on Twitter @mattkrantz


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