Wednesday, November 4th, 2009
Market Wrap-Up for November 4, 2009
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Pacer International, Inc. (PACR), Kraft Foods Inc. (KFT), and Ambac Financial Group, Inc. (ABK) are today’s featured stocks as the markets erased their gains for the day.
Featured Story Stocks
- Pacer International, Inc. [[PACR]] – Shares of the asset-light North American logistics provider rose more than 50% after it announced a surprise profit in the third quarter and a new contract with railroad operator Union Pacific. The company earned $0.02 per share in the third quarter, which is $0.03 better than analyst estimates of a $0.01 loss.
- Kraft Foods Inc. [[KFT]] – Shares of the processed food company fell more than 3% after reporting disappointing third quarter revenues. The company bucked the trend and became the only major disappointment in the Dow Jones Industrial Average. Meanwhile, the company debunked rumors that it would not proceed with its Cadbury takeover.
- Ambac Financial Group, Inc. [[ABK]] – Shares of the diversified holding company surged more than 35 percent after reporting third quarter earnings per share of $7.58 versus a loss of $8.45 per share last year. The results reflected significant unrealized mark-to-market gains in the credit derivatives portfolio and gains resulting from reinsurance cancellations during the quarter.
Market Summary
U.S. markets erased most of their gains for the day and ended mixed following volatile swings due to the FOMC release. The Dow Jones Industrial Average jumped 0.31%, the Nasdaq dropped 0.09%, and the S&P 500 increased 0.1% on the session. Meanwhile, 10 year Treasuries increased to 3.546% on the day’s session.
Commodities saw marginal gains during the session due to weakness in the U.S. dollar after the FOMC release. Both gold and silver futures pulled back late in the session, but they recovered late in the session following the FOMC release. Gold futures in particular hit a pit session high of $1,090 per ounce following demand from India’s Central Bank.
Canadian and Latin American markets ended largely higher on the day. Argentina’s MerVal rose 1.53%, Brazil’s Bovespa rose 2.03%, Canada’s TSX rose 0.23%, and the Mexican IPC rose 1.92% on the session.
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-- Written by David Breen
