U.S. Jobless Claims Up; Record Greek Bond Yields

123jump.com Staff
08 Apr, 2010
New York City

U.S. stocks traded lower after weekly jobless claims increased at the end of last week. European Central Bank left its key rate at 1% and President Trichet stressed that Greece is not likely to default. Greek bond yields increased.

[R]10:00 AM New York – U.S. stocks traded lower after weekly jobless claims increased at the end of last week. European Central Bank left its key rate at 1% and President Trichet stressed that Greece is not likely to default. Greek bond yields increased.[/R]

U.S. stocks declined in the morning trading after weekly jobless claims increased at the end of last week.

Seasonally adjusted weekly jobless claims increased 18,000 to 460,000 from the revised previous week claims of 442,000. The preliminary insured unemployment rate in the week ending March 27 was 0.1%, from the prior week''s unrevised rate of 3.6%.

The Greek 10-year bonds yields increased 18 basis points to 7.35% as more investors speculated that the EU led bailout may unravel.

The European Central Bank left its key lending rate at 1%. The ECB President Jean-Claude Trichet stressed again today Greece is not likely to default.

Trichet said to reporters in Frankfurt after the rate decision, “A default is not issue for Greece.”

The euro was unchanged after the rate decision.

European retail trade sales in February decreased 0.6% compared to January in the euro area and in the wider zone of 27 nations. Compared with February 2009 retail sales index decline 1.1% in the euro area and 0.7% in the EU27.

UK production output in February fell by 0.1% from a year ago. Output in mining declined 7.6%, energy fell 2.6%. Manufacturing output increased 1.0% in February from a year ago month.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.3311 and decreased against the Japanese yen to 93.

Crude oil decreased $1.00 to $85.88 a barrel for a front month contract, natural gas edged lower $0.013 cent to $4 per mBtu and gasoline decreased 2.34 cents to 229.13 cents.

Gold decreased $2.17 in New York trading to close at $1,147.20 per ounce, silver closed lower $0.064 to $18.02 per ounce and copper for the front month delivery decreased 3.90 cents to $3.55 per pound.

Yields on 10-year U.S. bonds increased to 3.86% and on 30-year U.S. bonds traded at 4.74 %.

Stock Movers

Compellent Technologies, Inc plunged 15% after the storage area network producer estimated first quarter in a range of approximately $31.5 to $32.0 million.

Forest Laboratories, Inc plunged 9.0% after the drugmaker failed to win backing to sell a new lung treatment.

Hot Topic, Inc surged 20.2% after the clothing retailer said March comparable store sales down 7.5%.

US Airways Group, Inc gained 7.3% after the airline and United Airlines are reported be in talks to merge.

Earnings Review

Bed Bath & Beyond Inc ((BBBY)) the home-goods superstore said fourth quarter sales rose 16.7% to $2.24 billion from $1.92 billion a year ago. Net income in the quarter rose 60% to $226.0 million or 86 cents per diluted share compared to net income of $141.4 million or 55 cents per share a year ago.

The Pep Boys-Manny, Moe & Jack ((PBY)) an auto parts retailer said fourth quarter revenues fell 2.7% to $452.9 million from $465.5 million a year ago. Net income in the quarter was $2.3 million or 4 cents per diluted share compared to net loss of $33.3 million or 63 cents per share a year ago.

Ruby Tuesday, Inc ((RT)) an operator of dining restaurants said third quarter revenues fell 3.2% to $307.3 million from $317.5 million a year ago. Net income in the quarter rose 271% to $17.8 million or 28 cents per diluted share compared to net income of $4.8 million or 9 cents per share a year ago.

Schnitzer Steel Industries, Inc ((SCHN)) the recycler of ferrous and nonferrous metals said second quarter sales rose 39% to $564.3 million from $406.7 million a year ago. Net income in the quarter was $17.5 million or 62 cents per diluted share compared to net loss of $7 million or 25 cents per share a year ago.

The Shaw Group Inc ((SHAW)) the construction, engineering and environmental company said second quarter sales fell 3% to $1.62 billion from $1.67 billion a year ago. Net income in the quarter rose 75.5% to $63.7 million or 74 cents per diluted share compared to net income of $36.3 million or 43 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 124.63 or 1.10% to 11,168.20, and Hang Seng index in Hong Kong decreased 61.73 or 0.28% to 21,867.04, and CSI 300 index in China lower 40.20 or 1.19% to 3,346.74. ASX 200 index in Australia increased 23.00 or 0.46% to 4,937.90 and the FTSE Bursa KL Composite index in Malaysia was lower 12.16 or 0.90% to 1,332.93.

The Kospi Index in South Korea increased 7.18 or 0.42% to close at 1,733.78. SET index in Thailand closed lower 28.70 or 3.53% to 783.93. JSE Index in Indonesia decreased 47.75 or 1.65% to 2,850.83. The Sensex index in India decreased 255.62 or 1.42% to 17,714.40.

Europe Markets Review

In London FTSE 100 Index traded lower 54.62 or 0.95% to 5,707.44, in Paris CAC 40 Index decreased 57.00 or 1.42% to 3,969.97 and in Frankfurt DAX index traded lower 59.85 or 0.96% to 6,162.56. In Zurich trading SMI decreased 62.61 or 0.91% to 6,780.88.