Markets Down on IMF Report

savina
14 Apr, 2005
New York City

European and Asian benchmarks dropped after the International Monetary Fund said global economic growth will slow to 4.3% in 2005, down from 5.1% in 2004. Growth in Japan is seen at 0.8%, significantly lower than IMF previous estimate of 2.6%. The dollar rose against the yen and the euro in Asia.

Japan Growth Sharply Lower at 0.8% in 2005

European and Asian benchmarks dropped after the International Monetary Fund said global economic growth will slow to 4.3% in 2005, down from 5.1% in 2004. Growth in Japan is seen at 0.8%, significantly lower than IMF previous estimate of 2.6%. The dollar rose against the yen and the euro in Asia.

Heavy losses on U.S. benchmarks Wednesday cast a pall on sentiment. Stocks fell across the board on disappointing March retail sales. Blue chips ended at their lowest level since late January. Gainers were hard to find as investors chose to sell stocks throughout the day.

Lifecore Biomedical (LCBM) jumped 2.3% to $17.59 in after-hours trade after the company reported third-quarter earnings of 15 cents a share, compared with a loss of $49,000, or breakeven a share, in the previous year. Revenue rose 13% to $14.1 million. The company raised its 2005 forecast.

Lam Research Corp. (LRCX) gained 3.5% to $27, after the company said third-quarter earnings more than tripled to 41 cents a share, compared with 13 cents a year ago. Revenue rose 51% to $349.3 million on higher sales of its computer-chip making equipment.

JDA Software Group (JDAS) fell 5% to $12.65 after the company warned its first-quarter revenue is expected to fall on weak software sales.

Investors Financial Services Corp. (IFIN) reported first-quarter earnings 60 cents a share, up from 54 cents a year ago. Revenue jumped 8.1% to $167.8 million.