Stocks Down on Wider Deficit

12 Apr, 2005
New York City

U.S. averages opened lower as the February trade deficit widened to a record $61 billion, raising concerns of slow U.S. economic growth.

Media Stocks Lose Ground

U.S. averages opened lower as the February trade deficit widened to a record $61 billion, raising concerns of slow U.S. economic growth.

The trade gap jumped 4.3% from January as U.S. consumers continued to buy imported goods and oil became more expensive. Imports rose 1.6% to $161.5 billion. Exports grew 0.1% to $100.5 billion.

Positive earnings news failed to move up shares of biotech giant Genentech Inc. (DNA), down 1.4%, and software company NCR Corp. (NCR), down 1.4%.

Media stocks also suffered losses. Shares of New York Times Co. (NYT), Knight-Ridder (KRI), Tribune Co. (TRB), Dow Jones & Co., (DJ) and XM Satellite Radio (XMSR) all dropped in morning trading.

Among gainers, Pepsi Bottling Group Inc. (PBG) rose 6.7% to $28.87 as the company posted first-quarter earnings of 15 cents a share, above forecasts.

Shares of BMC Software Inc. (BMC) rose 3.4% after the company announced plans to cut 12% of its work force and reduce expenses. Dismissals should cut annual expenses by $100 million.

AVI BioPharma Inc. (AVII) surged more than 7% to $2.95 in pre-market trade as the company announced successful results of therapy studies related to viral diseases.

Online broker Ameritrade Holding Corp. (AMTD) was up 0.6% to $10.77 as the company beat analyst first-quarter estimates by a penny.

Dow component American International Group Inc. (AIG) climbed 2.2% to $53.26 after analysts at Merrill Lynch reiterated a BUY rating on the company’s stock.

IT services provider Computer Associates International Inc. (CA) lowered its fourth-quarter forecast to one cent to two cents a share, down from 7 cents to 8 cents a share. Shares last traded up 0.2% to $27.28.