Stocks opened mixed on Wall Street on Friday as investors turned some of their attention to a brewing currency battle that could affect global trade. þþIn the opening minutes of trading, the Dow Jones industrial average was down 19.91 points, or 0.2 percent. The Standard & Poor’s 500-stock index rose by less than a point, while the Nasdaq composite gained 4.34 points, or 0.2 percent. þþEuropean markets were also little changed. þþThe quiet opening on Wall Street came after more positive earnings reports. þþThe energy services firm Schlumberger reported earnings that beat forecasts as land-based drilling activities increased in the United States and Canada. Manufacturer Honeywell International also reported a better-than-expected profit. þþKeyCorp’s profit surged as charges tied to defaulted loans dropped. Many banks and lenders have reported a drop in losses tied to soured loans during the quarter. þþAmerican Express, which is a component of the Dow Jones industrial average, said after the closing bell Thursday its profit also jumped because of dwindling losses tied to failed loans. Improving credit quality could be a signal that consumers are getting more comfortable with their finances and the worst of a wave of mortgage and loan defaults is over. þþEarnings at Verizon Communications, which is also a member of the Dow, fell during the third quarter but still managed to beat analysts’ expectations. þþDozens of companies in recent days have beat modest expectations by Wall Street analysts. That has lifted the confidence of traders who remain concerned about the health of the broader economy. þþThe Dow is looking to extend a two-day winning streak. It ended Thursday at its highest closing level since May 3 and was on the brink of closing at its highest level in more than two years before shares pared their gains in afternoon trading. þþA meeting of finance ministers and central bank governors from the Group of 20 nations in South Korea could add some caution to the market, which has been volatile throughout the week. Shares dropped early in the week because of global economic concerns before recovering in recent days following the string of earnings reports. þþFinance ministers and central bank governors are meeting in South Korea to discuss a growing trend of countries trying to devalue their currency to gain an advantage in the international marketplace. þþThere are worries that some countries, like China, are holding their currencies at artificially low levels. That gives them an advantage in exporting goods as the global economy slowly recovers from a deep recession. þþThe dollar edged higher Friday against other major currencies, but remains near a 15-year low against Japan’s yen. It’s also near its lowest level of the year against the euro. þþSince the end of August, the ICE Futures dollar index, which measures the dollar against six other currencies, has dropped nearly 7 percent. þþBond prices fell slightly. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.57 percent from 2.54 percent late Thursday. þþYields on Treasury securities have been steadily falling in recent months. Lower yields on United States bonds further hurts the dollar because it makes it a less attractive investment. Currency traders will pour money into other countries’ debt because yields on their bonds are higher. þþ
Source: NY Times
