US midday: Goldman raises fourth quarter GDP view

RELATED QUOTES

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FLEX9.46-0.09
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ROST68.43-0.10
NBXB.DE0.00
NKE73.39-0.71

LONDON (ShareCast) - -Obama may work on accord with Senate leaders -NY Times
-Boehner says both sides must continue contacts
-Some believe Boehner may lose position of speaker
-Mostly better than expected data

Dow Jones Industrials: -1.32%
Nasdaq Comp.: -1.49%
S&P 500: -1.36%

The main US equity benchmarks are registering large falls, following last night´s fiscal cliff set back. Republicans in the US House of Representatives, the lower chamber of Congress, pulled their Plan-B proposal due to a lack of support within even their own rank and file.

At an early morning press conference the speaker of the House - Republican John Boehner - indicated that both parties must continue to work towards a solution. That led to a small up-tick in stocks, but equities subsequently fell back again.

It is thus all too clear that risks remain, although yesterday´s unexpected turn of events was apparently not completely unexpected by economists; some, such as those at Nomura, believe a solution may have to wait until March.

In a more positive vein, economists at Goldman Sachs (NYSE: GS-PB - news) on Friday revised their estimate for US fourth quarter gross domestic product growth higher, to 1.8% from a previous estimate of 1.0%.



Mergers&acquisitions front and center again

Tyco Intl. has proposed increasing its dividend pay-out by 7%.

Crane&Co. is to acquire MEI for 820m dollars.

Pinnacle will purchase Ameristar Casinos (NasdaqGS: ASCA - news) for $868m.

GE will pay $4.3bn for Avio´s aviation parts unit.

Mostly better than expected data
US personal incomes rose at a rate of 0.6% month-on-month in November (Xetra: A0Z24E - news) according to the latest data out today from the Census Bureau (Consensus: 0.3 per cent). That was the largest rise since February.

The latest data on durable goods orders showed an 0.7% month-on-month increase for November (Consensus: 0.3%). Furthermore, the previous month´s reading has been revised up to show a rise of 1.1%, well above the 0% of the preliminary estimate.

Core capital good orders bounced back by 2.7% last month.

The Federal Reserve Bank of Chicago´s latest national activity index also registered a strong increase.

The University of Michigan´s consumer confidence gauge for the month of December dropped to 72.9 points, after a reading of 74.5 for the month before (Consensus: 74.7).

Large drop in crude futures
Front month West Texas crude futures are now dropping 1.88% to the 88.42 dollar mark on the NYMEX.

10 year US Treasury bond yields are now down by 5 basis points to the 1.75% level.



S&P 500 - Risers
Nike Inc (NYSE: NKE - news) . (NKE) $103.88 +4.93%
Red Hat Inc (NYSE: RHT - news) . (RHT) $54.65 +3.88%
Intuitive Surgical Inc (NasdaqGS: ISRG - news) . (ISRG) $502.43 +2.89%
Big Lots Inc (NYSE: BIG - news) . (BIG) $28.55 +2.11%
Ross Stores Inc (NasdaqGS: ROST - news) . (ROST) $53.90 +1.20%
Newmont Mining Corp (NYSE: NEM - news) . (NEM) $44.61 +1.16%
EQT Corp. (EQT) $59.67 +0.85%
Fastenal Co. (FAST) $45.32 +0.67%
W.W. Grainger Inc. (GWW) $198.16 +0.62%
Apartment Investment & Management Co. (AIV) $26.84 +0.56%

S&P 500 - Fallers
Sears Holdings Corp. (SHLD) $40.52 -8.39%
Micron Technology Inc (NasdaqGS: MU - news) . (MU) $6.25 -7.95%
Yum! Brands Inc. (YUM) $63.09 -5.11%
Jabil Circuit Inc (NYSE: JBL - news) . (JBL) $19.05 -4.51%
R.R. Donnelley & Sons Co. (RRD) $9.01 -4.41%
Masco Corp. (MAS) $15.95 -4.20%
Walgreen Co (NYSE: WAG - news) . (WAG) $35.99 -4.15%
Cintas Corp. (CTAS) $41.08 -4.00%
D. R. Horton Inc. (DHI) $19.34 -3.78%
Alpha Natural Res (ANR) $9.16 -3.68%

Dow Jones I.A - Risers

Dow Jones I.A - Fallers
Bank of America Corp. (BAC) $11.23 -2.47%
Microsoft Corp. (MSFT) $27.05 -2.28%
Mondelez International Inc (NasdaqGS: MDLZ - news) . (MDLZ) $25.49 -2.22%
Hewlett-Packard Co. (HPQ) $14.11 -2.22%
Caterpillar Inc (NYSE: CAT - news) . (CAT (Taiwan OTC: 4990.TWO - news) ) $87.55 -2.18%
Walt Disney Co. (DIS) $49.83 -2.16%
Intel Corp. (INTC) $20.61 -1.99%
Procter & Gamble Co (NYSE: PG - news) . (PG) $68.49 -1.90%
Cisco Systems Inc (NasdaqGS: CSCO - news) . (CSCO) $19.85 -1.90%
Exxon Mobil Corp. (XOM) $87.21 -1.90%

Nasdaq 100 - Risers
Intuitive Surgical Inc. (ISRG) $502.43 +2.89%
Ross Stores Inc. (ROST) $53.90 +1.20%
Fastenal Co. (FAST) $45.32 +0.67%
Liberty Interactive Corp (LINTA) $19.77 +0.61%
Randgold Resources Ltd. Ads (GOLD (Other OTC: GDCWF - news) ) $98.97 +0.49%
Citrix Systems Inc (NasdaqGS: CTXS - news) . (CTXS) $65.69 +0.18%
F5 Networks Inc (NasdaqGS: FFIV - news) . (FFIV) $97.38 +0.05%

Nasdaq 100 - Fallers
Research in Motion Ltd. (RIMM) $11.26 -20.26%
Sears Holdings Corp. (SHLD) $40.52 -8.39%
Micron Technology Inc. (MU) $6.25 -7.95%
Life Technologies Corp. (LIFE) $49.59 -3.39%
Green Mountain Coffee Roasters Inc (Xetra: 887856 - news) . (GMCR) $41.27 -3.10%
BMC Software Inc (NasdaqGS: BMC - news) . (BMC) $40.65 -3.08%
Nvidia Corp. (NVDA) $12.26 -3.01%
Apollo Group Inc (NasdaqGS: APOL - news) . (APOL) $20.18 -2.98%
Flextronics International Ltd (NasdaqGS: FLEX - news) . (FLEX) $6.13 -2.85%
Staples Inc (NasdaqGS: SPLS - news) . (SPLS) $11.43 -2.72%

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