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Entries in NYSE (12)

Tuesday
Oct302012

Stock Markets to Reopen After Hurricane Sandy Shut Down NYSE

Hemera/Thinkstock(NEW YORK) -- Hurricane Sandy‘s winds and rains subsided Tuesday, and the New York Stock Exchange announced it will open for normal operations on Wednesday.  This was the first time since 1888 that weather shut down stock trading for two days.

NYSE Euronext said trading will resume for all U.S. equities, bonds, options and derivatives markets on — perhaps fittingly — Halloween.

Investors have been grappling with a volatile earnings season as it is, and now are dealing with uncertainty as they wait for reliable estimates of the cost of damage caused by the storm.

“We are pleased to be able to return to normal trading tomorrow.  Our building and systems were not damaged and our people have been working diligently to ensure that we have a smooth opening tomorrow," said Duncan Niederauer, NYSE Euronext CEO, in a statement. "Our thoughts and prayers remain with the families and communities suffering in the wake of this terrible natural disaster."
On Monday evening, news reports — quickly denied by a spokesperson — said the floor of the exchange was flooded with three feet of water.

“It’s one more uncertainty, and loss of life and damage are always tragic, but to an extent, it’s not a big event that will throw us into recession. It’s more disruptive than anything,” said Scott Brown, chief economist with the investment firm Raymond James.

The last time the exchange was closed for two days for weather was March 12 and 13, 1888, due to the famed blizzard of 1888, according to the NYSE website. The New York Stock Exchange was formed when two dozen stock brokers signed the Buttonwood Agreement in 1792.

Hurricane Gloria, on Sept. 27, 1985 was the cause of the last weather-related closing.

The longest the exchange has recently closed was Sept. 11 to 14, 2001, following the attacks on the World Trade Center.

The NYSE says the exchange also closed at the outbreak of World War I, from July 31 to Nov. 27, 1914.

Brown, whose office in St. Petersburg, Fla. was far from the damage caused by Hurricane Sandy, said many investors are feeling anxious about the opening, though “there may be a bit of optimism if the markets are back in business.”

He said he is not concerned about a long term economic effect on the U.S.

“It pales in significance to the fiscal cliff,” he said.

Brown said most financial firms will recover from weather damage but lost electricity and transportation are also concerns for businesses.

“How will people get to work? Are subways going to be operating?” Brown said.

Though many transactions can be conducted online, that’s not much help if brokers’ homes are without power.  Stock watchers said they did not expect a great surge of trading volume in the morning to make up for the lost days.

“Activity may be a bit subdued if people can’t get to work and get around, but for the most part this is postponing activity that will occur later on,” Brown said regarding trading volume.

When asked what financial professionals have been doing for the last two days, Brown said, “Other than sheer boredom, for us it was an opportunity in research to take a step back and look at the broader themes rather than focus on the day to day.”

Copyright 2012 ABC News Radio

Monday
Oct292012

NYSE Closes as Hurricane Sandy Approaches

Spencer Platt/Getty Images(NEW YORK) -- The New York Stock Exchange will be shut down on Monday as New York City prepares for Hurricane Sandy.

In a statement, NYSE Euronext, the company that runs the exchange, said: “We support the consensus of the markets and the regulatory community that the dangerous conditions developing as a result of Hurricane Sandy will make it extremely difficult to ensure the safety of our people and communities, and safety must be our first priority.”

The storm is expected to make landfall late Monday night in Atlantic City, N.J., bringing with it life-threatening storm surges, forceful winds and rainfall that could cripple transportation and leave millions without power.

Transit officials in New York City shut down the subway system at 7 p.m Sunday.  Other means of mass transportation into the city, including other railway and bus services, have also been suspended.

New York City Mayor Michael Bloomberg on Sunday ordered the evacuation of areas of lower Manhattan and the Rockaways.

"If you don't evacuate, you are not only endangering your life, you are also endangering the lives of the first responders who are going in to rescue you," Bloomberg said at a news conference.  "This is a serious and dangerous storm."

American Express, JP Morgan Chase and Citigroup are among many financial companies that decided to close operations in Lower Manhattan.  Many of the businesses are in the storm-evacuation zone.

A decision about whether the NYSE will remain shut down on Tuesday will be made later.

Copyright 2012 ABC News Radio

Friday
Mar022012

Yelp Shares Soar After Initial Public Offering

Scott Eells/Bloomberg via Getty Images(NEW YORK) -- In one of the most highly anticipated IPOs of the year, shares of the unprofitable online local business rating and directory service Yelp soared Friday.

After Jeremy Stoppelman, co-founder and CEO of Yelp, rung the opening bell at the New York Stock Exchange Friday morning, he made the first trade for his company according to tradition at the exchange.  Investors crowded around the floor, watching Stoppelman begin arguably the hottest tech IPO this year after Facebook.
 
The online review site priced its IPO at $15 a share, above its expected range, Thursday night.  The tech company, based in San Francisco, raised $107.25 million, valuing it at $898.1 million.

By 10:50 a.m., the shares had surged to $24.15, or 61 percent, on the New York Stock Exchange.  This comes even though competition in the local ad and listings market is fierce and Yelp hasn't had a profit since at least 2007.

Copyright 2012 ABC News Radio

Sunday
Aug282011

NYSE to Resume Regular Trading Monday Despite Irene

TIMOTHY A. CLARY/AFP/Getty Images(NEW YORK) – The New York Stock Exchange and Nasdaq intends to open on Monday per usual despite extensive flooding in lower Manhattan by Hurricane Irene.

Exchange officials will discuss Monday’s opening in a conference call with the SEC on Sunday at 1 p.m.

Copyright 2011 ABC News Radio

Thursday
Aug112011

Wall Street Report: Stocks Open Higher after Big Sell-Off

Mario Tama/Getty Images(NEW YORK) -- U.S. stocks moved sharply higher Thursday after nearly a week of steep losses over debt fears here and in Europe.

At 1:25 p.m. Thursday, the Dow rose 352 points, or 3.2 percent, to 11,072.

Investors reacted positively to a bit of good news among the gloom: New U.S. claims for unemployment benefits dropped to a four-month low last week, the government reported Thursday. Initial claims for state unemployment benefits fell 7,000 to a seasonally adjusted 395,000, the Labor Department said, the lowest level since the week ended April 2.

The markets here and abroad were also buoyed by an announcement that French President Nicolas Sarkozy and German Chancellor Angela Merkel will meet in Paris next Tuesday to discuss euro zone governance and other international issues.

Investor worries over French banks have weighed on the stocks over the past two days.

U.S. stocks skidded Wednesday on new worries about government debt in Europe, losing all of Tuesday's rally and then some. Gold, which surged to yet another new high Wednesday, fell back $25 to $1,758 an ounce Thursday.

Copyright 2011 ABC News Radio

Sunday
Apr102011

NYSE Board Rejects Nasdaq/ICE Offer, Backs Deutsche Merger

Comstock/Thinkstock(NEW YORK) -- The parent company of the New York Stock Exchange has rejected an $11.3 billion offer from Nasdaq and IntercontinentalExchange, paving the way for a possible merger with Germany's Deutsche Boerse.

The Frankfurt-based company originally made a $9.53 billion offer to buy the New York Stock Exchange, but the company’s offer has since risen to $9.68 billion, according to Bloomberg News. A deal with Nasdaq and IntercontinentalExchange would have been “highly conditional,” a statement by NYSE Euronext said Sunday, and would have required shareholders to “shoulder unacceptable risk.”

An agreement with Deutsche Boerse, NYSE Euronext said, would allow for more stability and growth.

Copyright 2011 ABC News Radio

Saturday
Apr022011

Nasdaq Throws Hat in the Ring for Ownership of NYSE

Getty(NEW YORK) -- Nasdaq has prepared a $11.3 billion bid for the New York Stock Exchange, part of an effort to top a German rival's offer.

Nasdaq OMX Group Inc. and Intercontinental Exchange Inc. announced the solicited bid on Friday. The partnership has reportedly been working to draft a deal since February when the NYSE announced it was being purchased by Deutsche Börse AG for $9.5 billion.

The NYSE has confirmed that it received the new proposal and was in the process of reviewing it.

If the Nasdaq and ICE bid is successful, it would mean the Big Board, an icon of American capitalism, would remain in U.S. hands rather than being owned by a German company.

Copyright 2011 ABC News Radio

Monday
Mar072011

Stocks Down in Midday Trading; Fed Prepping for QE3?

Mario Tama/Getty Images(NEW YORK) -- QE3: It might be coming if oil prices continue to soar.

A top official at the Federal Reserve predicts further easing of monetary policy might happen. Right now the Fed is buying government bonds to boost the economy. That policy -- quantitative easing -- has been dubbed QE2. Dennis Lockhart, head of the Atlanta Fed, says an expansion is possible if another recession is considered likely.

Rising gasoline prices threaten to cut other forms of spending by consumers. Global crude rose again early Monday morning -- since then, oil futures are off their highs.

Stocks are down so far Monday with concerns about what oil will do to the economy. Gold is up $3 an ounce to $1431 an ounce.

Greece's debt rating has been cut with fresh concerns about a default.

Copyright 2011 ABC News Radio

Thursday
Feb242011

Hewlett-Packard Reports Dismal Growth

Photo Courtesy - Ralph Orlowski/Getty Images(PALO ALTO, Calif.) -- Hewlett-Packard Co. released a statement Tuesday showing disappointing growth in the face of poor consumer demand.

The Palo Alto-based computer giant reported a $1.21 per share profit, which disappointed investers hoping for $1.26. HP stock fell 9.6. percent at the New York Stock Exchange Tuesday afternoon in spite of reported 3.5 percent growth this year.

The report comes as an unfortunate close to Leo Apotheker's first quarter as chief executive officer. Apotheker is slated to present a renewed vision for the company at a strategy conference in San Francisco on March 14.

Apotheker took the helm of the company from Mark Hurd, whose resignation last August was prompted by a sexual harrassment scandal.

Copyright 2011 ABC News Radio

Tuesday
Feb152011

What's in a Name? It's an Issue in New York Stock Exchange Merger

Photo Courtesy - Getty Images(NEW YORK) -- The New York Stock Exchange and Deutsche Borse are both winners in the merger between the two large stock exchanges. Their costs will decrease as they share technology and resources to create the largest stock exchange in the world. And ideally, those cost savings will pass onto a larger pool of global investors.

As the 220-year-old NYSE and German stock exchange officially announced their merger Tuesday morning, Sen. Charles E. Schumer (D-N.Y.) said New York ought to come first in the new name.

"An outstanding issue that is important to me is the name of the new exchange," Schumer said in a statement. "NYSE is one of the most preeminent brands in the financial industry, and there is no reason it shouldn't come first in the new exchange's name."

During the press conference announcing the merger, Duncan Niederauer, CEO of the NYSE, said no decision has been made regarding a new name.

Sen. Schumer said if New York loses out, the merger process could be in jeopardy.

"If Deutsche Borse pushes any alternative name, it would be an indication that they are not viewing this deal as a merger of equals, and that could have negative consequences with regard to future decisions on the merger's implementations," said Schumer.

Reena Aggarwal, professor of business administration and finance at Georgetown University's McDonough School of Business in Washington, D.C., said many people like Schumer feel strongly regarding the name because of its symbolism.

"Countries see it as a prestige issue," said Aggarwal. "In the old days an exchange was a huge prestige issue for the country. And every country wanted to have an exchange."

But she said the NYSE has been facing business challenges. It has trouble attracting initial public offerings. She also said the merger will allow the NYSE to globalize. Even Schumer acknowledged that the merger was a positive business move.

"The New York Stock Exchange will be the crown jewel in this new operation, and the name of the new company should reflect that," said Schumer.

Schumer said he would keep an open mind until the name issue is settled.

Aggarwal said possible names under consideration have been rumored to be NYSE-DB or the Global Exchange.

"Certainly the NYSE has existed for a very long time and the name has been associated with American capitalism. So I can see that some people would have problems if that name goes away completely," Aggarwal said. "But from a business point of view, it doesn't matter so much, but countries see it as a prestige issue."

Copyright 2011 ABC News Radio 







ABC News Radio