Jobless Claims Rise; U.S. Stocks Struggle

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

U.S. indexes struggled near eighteen months high after jobless claims increased. March industrial production increased 0.1% and increased at annual rate of 7.8% in the first quarter.

[R]12:00 PM New York – U.S. indexes struggled near eighteen months high after jobless claims increased. March industrial production increased 0.1% and increased at annual rate of 7.8% in the first quarter.[/R]

U.S. stocks struggled in the morning trading as the Dow and the S&P 500 index trade near 18-month high. The market indexes have gained more than 50% from the lows reached in the fourth quarter 2008.

Seasonally adjusted weekly jobless claims increased 24,000 to 484,000 from the revised previous week claims of 460,000. The preliminary insured unemployment rate in the week ending April 03 was 0.1%, from the prior week''s unrevised rate of 3.5%.

March industrial production increased 0.1% and also increased annual rate of 7.8% in the quarter first. Manufacturing production and mining rose 0.9% and 2.3% respectively. Utility output fell 6.4% and Capacity utilization for total industry increased to 73.2%.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.3535 and decreased against the Japanese yen to 93.19.

Crude oil increased 85 cents to $84.87 a barrel for a front month contract, natural gas edged lower $0.04 cent to $4.15 per mBtu and gasoline increased 0.010 cents to 233.28 cents.

Gold decreased $2.80 in New York trading to close at $1,152.70 per ounce, silver closed lower $0.110 to $18.30 per ounce and copper for the front month delivery decreased 3.550 cents to $3.58 per pound.

Yields on 10-year U.S. bonds increased to 3.84% and on 30-year U.S. bonds traded at 4.72%.

Stock Movers

CompuCredit Holdings Corp surged 16.9% after the marketer of credit cards to subprime borrowers announced that it has commenced a cash tender offer its outstanding 3.625% convertible notes due 2025 up to the aggregate principal amount of $100 million and its stock for $7 a share.

The Macerich Company decreased 3.9% after the owner of shopping malls announced that it intends to offer to sell, subject to market and other conditions, 18.5 million shares of its common stock.

The Princeton Review, Inc fell 6.9% after the provider of college and graduate-school test-preparation services announced today that it intends to offer subject to market and other conditions, 14 million shares of its common stock. Roth Capital Partners is acting as sole manager for the offering.

Santarus, Inc plunged 38.4% after the biopharmaceutical company announced that the U.S. District Court for the District of Delaware has ruled that five patents covering Santarus'' ZEGERID(R) prescription products are invalid.

United Parcel Service, Inc added 4.6% after the express package and logistic operator pre-announced a 37% increase in adjusted diluted earnings per share for the first quarter of 2010.

Earnings Review

Alliance Financial Corporation ((ALNC)) the finance company said first quarter net interest income rose 11% to $11.1 million from $10.0 million a year ago. Net income in the quarter rose 4% to $2.7 million or 59 cents per diluted share compared to net income of $2.6 million or 57 cents per share a year ago.

J.B. Hunt Transport Services, Inc ((JBHT)) the provider of transportation service said first quarter revenues rose 17% to $844.7 million from $722.8 million a year ago. Net income in the quarter rose 21.7% to $37.5 million or 29 cents per diluted share compared to net income of $30.8 million or 24 cents per share a year ago.

Landstar System, Inc ((LSTR)) the transportation and logistics supplier said first quarter sales rose 17% to $548.1 million from $469.2 million a year ago. Net income in the quarter rose 23.7% to $17.2 million or 34 cents per diluted share compared to net income of $13.9 million or 27 cents per share a year ago.

Pacific Continental Corporation ((PCBK)) the bank said first quarter net interest income fell 0.8% to $13.1 million from $13.2 million a year ago. Net income in the quarter fell 62% to $1.1 million or 6 cents per diluted share compared to net income of $2.9 million or 23 cents per share a year ago.

Universal Forest Products, Inc ((UFPI)) the lumber and wood packaging producer said first quarter sales rose 8.7% to $393.0 million from $361.7 million a year ago. Net income in the quarter was $1.7 million or 5 cents per diluted share compared to net loss of $1.2 million or 6 cents per share a year ago.

Yum! Brands, Inc ((YUM)) the fast-food chain operator said first quarter sales rose 6% to $2.35 billion from $2.22 billion a year ago. Net income in the quarter rose 10.5% to $241 million or 50 cents per diluted share compared to net income of $218 million or 46 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 68.89 or 0.61% to 11,273.79, Hang Seng index in Hong Kong increased 36.39 or 0.16% to 22,157.82 and CSI 300 index in China lower 9.13 or 0.27% to 3,394.57. ASX 200 index in Australia increased 7.20 or 0.14% to 5,001.90. The FTSE Bursa KL Composite index in Malaysia closed higher 2.94 or 0.22% to 1,338.83.

The Kospi Index in South Korea increased 8.58 or 0.49% to close at 1,743.91, JSE Index in Indonesia increased 15.52 or 0.54% to 2,900.53. The Sensex index in India decreased 182.70 or 1.03% to 17,639.26 and The Markets of Thailand were closed today.

Europe Markets Review

In London FTSE 100 Index traded lower 0.63 or 0.01% to 5,795.62, in Paris CAC 40 Index decreased 5.52 or 0.14% to 4,052.18 and in Frankfurt DAX index traded lower 7.15 or 0.11% to 6,271.25. In Zurich trading SMI increased 21.72 or 0.31% to 6,938.31.