Reuters: US Dollar Report: GLOBAL MARKETS-Shares down on weak earnings; U.S. Treasuries up

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GLOBAL MARKETS-Shares down on weak earnings; U.S. Treasuries up Oct 26th 2012, 16:59 Fri Oct 26, 2012 12:59pm EDT * Wall St hit by earnings; Apple shares off more than 2 pct * U.S. Treasuries climb in price with safe-haven support * U.S. 3rd-quarter economic growth accelerates to 2 pct By Angela Moon NEW YORK, Oct 26 (Reuters) - Global shares fell on Friday as lackluster corporate earnings reports undermined investor confidence while U.S. Treasuries climbed with safe-haven support. Although data showed a pick-up in U.S. economic growth in the third quarter, gloomy earnings and outlook statements from major global companies such as Apple and Amazon , South Korea's Samsung and Renault and Ericsson in Europe corroded hopes of a recovery in the global economy. Wall Street stocks fell as shares of Apple, the world's largest publicly trade company, declined more than 2 percent, although Amazon.com rebounded from earlier losses. U.S. gross domestic product expanded at a 2.0 percent annual rate, accelerating from the second quarter's 1.3 percent. But the better-than-expected data was not be enough to stem a recent slide in the market, which has caused the S&P 500 index to drop 3.3 percent over the past six sessions, its worst 6-day run in five months. Lighter revenues have been a concern this earnings season. Just 36.9 percent of S&P 500 companies so far have reported revenue that beat forecasts, compared with the 62 percent that typically exceed expectations, according to Thomson Reuters data. "There's not a lot of chest-beating coming out of these (company) earnings calls. You still have caution ruling the day," said Kurt Brunner, portfolio manager at Swarthmore Group in Philadelphia. Earnings have fared better, with 62.5 percent above expectations, almost even with the 62 percent that is historically seen. The S&P 500 has dropped 1.6 percent this week as dismal corporate earnings and cautious outlooks, especially from large multinationals, painted a pessimistic picture of the global economy. Adding to uncertainty was the U.S. presidential election on Nov. 6, with the benchmark S&P index below a key support level, the 50-day moving average, at around 1,434. Many analysts expect the retreat to wane near 1,400 or 1,375, as the Federal Reserve's latest stimulus policy puts a floor under equity prices. The Dow Jones industrial average was down 12.91 points, or 0.10 percent, at 13,090.77. The Standard & Poor's 500 Index was down 3.52 points, or 0.25 percent, at 1,409.45. The Nasdaq Composite Index was down 7.51 points, or 0.25 percent, at 2,978.61. In Europe, shares eked out small gains on Friday with the FTSEurofirst 300 provisionally closing up 0.2 percent at 1,097.94. The MSCI world equity index was down 0.5 percent at 327.75. WEAK EARNINGS Late on Thursday, Apple Inc reported a second straight quarter of disappointing results and iPad sales fell well short of analysts' targets. The company also forecast revenue and margins below Wall Street forecasts. The stock was off 2.6 percent at $593.59. Amazon.com also posted its first quarterly net loss in more than five years. It forecast fourth-quarter revenue that fell short of analysts' expectations. But the stock rose 3.3 percent to $230.18 on Friday, rebounding from earlier losses. U.S. Treasuries rose in price on Friday with safe-haven bidding spurred by lackluster corporate earnings and expectations the higher pace of third-quarter U.S. growth cannot be carried over into next year. Uncertainty over the impact of the "fiscal cliff" of tax increases and government spending cuts set to kick in at the beginning of next year also underpinned Treasuries purchases. Benchmark 10-year Treasury notes were trading 16/32 higher in price to yield 1.7539 percent, down from 1.81 percent late Thursday and just below the 200-day moving average. Oil recovered from an earlier decline on Friday to trade slightly below $109 a barrel. Brent crude was up 19 cents to $108.70 a barrel, having fallen to as low as $107.40. U.S. oil slipped 38 cents to $85.67. In the currency market, the euro traded flat against the dollar on Friday following three straight days of losses, but persistent concerns over whether Spain will ask for a bailout to address its problems and worries about Greece were expected to weigh on the currency. The euro hit a low of $1.2881, its lowest level since Oct. 11. It last traded at $1.2934, flat on the day. Link this Share this Digg this Email Reprints

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