Apple, Morgan Stanley Earnings Lift Indexes

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

Stocks in early trading in New York looked for a direction. Positive earnings from Morgan Stanley and Apple Inc lifted other stocks in financial services and technology sector. Air travel in northern Europe picked up after London and other airports reopened.

[R]10:40 AM New York – Stocks in early trading in New York looked for a direction. Positive earnings from Morgan Stanley and Apple Inc lifted other stocks in financial services and technology sector. Air travel in northern Europe picked up after London and other airports reopened.[/R]

U.S. stocks traded sideways after better than expected earnings from Morgan Stanley and Apple Inc. but European markets were volatile as Greece negotiates with the International Monetary Fund.

Morgan Stanley, the financial services provider net revenue tripled for the quarter to $9.08 billion from $2.897 billion in the prior-year quarter. Net income was $1.85 billion or 99 cents a share compared with a year-earlier loss of $17 million or 57 cents a share.

Apple Inc., the maker of mobile media and computing devices said second quarter sales rose 48.7% to $13.5 billion from $9.08 billion a year ago. Net income in the quarter rose 90% to $3.07 billion or $3.33 per diluted share compared to net income of $1.62 billion or $1.79 per share a year ago.

European Markets Volatile

Greece’s Finance Minister George Papaconstantinou was optimistic that his country would overcome the current fiscal crisis and said to reporters yesterday “whether borrowing from the market or borrowing from our partners” the nation will be able to rollover its debt scheduled by the end of next month.

The nervous markets are still awaiting the bailout details and the benchmark indexes declined in Greece, Portugal and Spain.

The ASE Index declined 1.4%, the PSI-20 index fell 1.5% and the IBEX 35 index in Madrid dropped 1.7%.

More Flights Permitted in Europe

Air travel in Europe revived after London’s Heathrow Airport opened after an agreement between the U.K. and airplane makers and engine designers regarding the testing of flights while passing through the thin air above 20,000 feet.

Regulators are worried that volcanic ash cloud containing glass and silica particles may damage engines in mid-air.

While the air traffic is slowly returning to normal levels in the northern Europe, 7,000 flights are canceled today according to Eurocontrol, the agency responsible to monitor air travel in the region.

Commodities, Currencies and Yields

Dollar edged higher against euro to $1.3377 and decreased against the Japanese yen to 93.16.

Crude oil decreased $0.02 to $83.83 a barrel for a front month contract, natural gas edged higher $0.01 cent to $3.98 per mBtu and gasoline increased 1.390 cents to 229.48 cents.

Gold increased $1.10 in New York trading to close at $1,140.30 per ounce, silver closed lower $0.061 to $17.76 per ounce and copper for the front month delivery decreased 2.750 cents to $3.51 per pound.

Yields on 10-year U.S. bonds increased to 3.79% and on 30-year U.S. bonds traded at 4.66%.

Stock Movers

Apple Inc surged 6% after sales rose 48% and net surged 90%.

Gilead Sciences, Inc., the biopharmaceutical company declined 4.5%.

Manhattan Associates, Inc., the supply chain solutions developer and provider increased 8.0% after it reported first quarter earnings of 36 cents compared to 7 cents in the quarter a year ago. License revenue was $14.2 million and total revenue was $73.9 million.

Morgan Stanley gained 3.4% after its quarterly net tripled.

Panera Bread Company, the bakery-café rose 0.2%.

Tempur-Pedic International Inc. surged 10.4% after the maker of luxury mattresses announced a new $100 million repurchase authorization.

Yahoo! Inc declined 4.3% after the Internet search engine said first quarter net profit rose to $310 million.

Earnings Review

Altera Corporation ((ALTR)), the chip maker said first quarter sales rose 52% to $402.3 million from $264.6 million a year ago. Net income in the quarter rose 248% to $153.2 million or 50 cents per diluted share compared to net income of $44.0 million or 15 cents per share a year ago.


Juniper Networks, Inc. ((JNPR)), the computer networking company said first quarter revenues rose 19.4% to $912.6 million from $764.2 million a year ago. Net income in the quarter was $163.1 million or 30 cents per diluted share compared to net loss of $4.5 million or 1 cent per share a year ago.

Tupperware Brands Corporation ((TUP)), the manufacturer of food storage containers said first quarter sales rose 20.3% to $557.1 million from $462.8 million a year ago. Net income in the quarter rose 84% to $47.1 million or 73 cents per diluted share compared to net income of $25.6 million or 41 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 189.37 or 1.74% to 11,090.05, Hang Seng index in Hong Kong decreased 112.45 or 0.52% to 21,510.93 and CSI 300 index in China higher 63.30 or 1.99% to 3,236.68. ASX 200 index in Australia increased 28.50 or 0.58% to 4,954.30. The FTSE Bursa KL Composite index in Malaysia closed lower 2.26 or 0.17% to 1,333.64.

The Kospi Index in South Korea increased 29.55 or 1.72% to close at 1,747.58. SET index in Thailand closed lower 7.91 or 1.03% to 757.85 and JSE Index in Indonesia increased 21.56 or 0.75% to 2,912.83. The Sensex index in India increased 11.98 or 0.07% to 17,472.56.

Europe Markets Review

In London FTSE 100 Index closed lower 54.00 or 0.93% to 5,729.69, in Paris CAC 40 Index decreased 28.71 or 0.71% to close at 3,997.94, in Frankfurt DAX index lower 10.29 or 0.16% to close at 6,253.94. In Zurich trading SMI decreased 20.42 or 0.30% to close at 6,821.49.