U.S. Stocks Trim Gains on Inventories

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

Stocks in early trading retained positive bias. Of the stocks in the S&P 500 index, 310 gained and 177 declined. The dollar edged higher after the rating agency Fitch lowered Greek debt rating. The convenience retail chain Casey

[R]11:00 AM New York – Stocks in early retained positive bias. Of the stocks in the S&P 500 index, 310 gained and 177 declined. The dollar edged higher after the rating agency Fitch lowered Greek debt rating. The convenience retail chain Casey’s General Stores Inc receives a takeover proposal.[/R]

Stocks in New York and traded higher but pared gains are February inventories increased. The dollar advanced and precious metals and crude oil prices gained.

February wholesale sales increased 0.8% to $388.7 billion from the revised January sales and up 9.8% from a year ago month. February inventories increased 0.6% to $393.5 billion from the revised January data and were down 7.4% from a year ago.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.3389 and decreased against the Japanese yen to 93.67.

Crude oil increased $1.00 to $86.01 a barrel for a front month contract, natural gas edged higher $0.06 cent to $4 per mBtu and gasoline increased 1.05 cents to 230.88 cents.

Gold increased $4.40 in New York trading to close at $ 1,157.30 per ounce, silver closed higher $0.218 to $18.34 per ounce and copper for the front month delivery increased 1.65 cents to $3.60 per pound.

Yields on 10-year U.S. bonds increased to 3.92% and on 30-year U.S. bonds traded at 4.77%.

Stock Movers

Alcoa Inc fell 1.1% after aluminum producer was downgraded to “neutral” from “overweight” at JPMorgan Chase & Co.

Casey’s General Stores Inc soared 20% after Canada based Alimentation Couche-Tard Inc proposed to acquire the convenience retailer for $36 a share in cash.

Central European Distribution Corporation fell 0.8% after the Polish vodka producer agreed to sell its polish distribution business to Eurocash SA for 400 million zloty or $138 million.

JC Penney Co. added more than 2.5% after the company reported better than expected March sales that prompted Goldman Sachs to raise stock price target to $37 from $32.

McKesson Corporation dropped 0.6% after the pharmaceutical distributor to sell its Asia-Pacific business to Medibank Private Ltd.

Wynn Resorts, Limited fell 0.1% after the casino company announced termination of Philadelphia discussions.

Earnings Review

Joe''s Jeans Inc ((JOEZ)) the clothing company said first quarter sales rose 40.6% to $23.2 million from $16.5 million a year ago. Net income in the quarter fell 13% to $694,000 or 1 cent per diluted share compared to net income of $800,000 or 1 cent per share a year ago.

Penford Corporation ((PENX)) the manufacturer and marketer of specialty natural-based ingredient systems said second quarter sales fell 2.5% to $62.3 million from $63.9 million a year ago. Net income in the quarter was $11.2 million or 99 cents per diluted share compared to net loss of $22.2 million or $1.99 per share a year ago.

Richardson Electronics, Ltd ((RELL)) the wireless products and video display equipment distributor said third quarter sales rose 10% to $121.3 million from $110.3 million a year ago. Net income in the quarter was $4.5 million or 25 cents per diluted share compared to net loss of $11.4 million or 65 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 36.14 or 0.32% to 11,204.34, and Hang Seng index in Hong Kong increased 341.46 or 1.56% to 22,208.50, and CSI 300 index in China higher 32.43 or 0.97% to 3,379.17. ASX 200 index in Australia increased 10.20 or 0.21% to 4,948.10 and the FTSE Bursa KL Composite index in Malaysia was higher 1.05 or 0.08% to 1,333.98.

The Kospi Index in South Korea decreased 9.31 or 0.54% to close at 1,724.47. SET index in Thailand closed higher 5.73 or 0.73% to 789.66. JSE Index in Indonesia decreased 5.82 or 0.20% to 2,845.01. The Sensex index in India increased 218.74 or 1.23% to 17,933.14.

Europe Markets Review

In London FTSE 100 Index traded higher 42.25 or 0.74% to 5,754.95, in Paris CAC 40 Index increased 45.06 or 1.13% to 4,023.52 and in Frankfurt DAX index traded higher 51.64 or 0.84% to 6,223.47. In Zurich trading SMI increased 93.75 or 1.38% to 6,884.76.