U.S. Stocks Gain; Chrysler Narrows Loss

Arthi Gupta
09 Aug, 2010
New York City

U.S. stocks advance after positive economic data in the euro-zone. BP estimates permanent sealing of leaking well by August 15. Chrysler quarterly loss narrowed on 22% increase in worldwide unit sales. DigitalGlobe concludes $3.55 billion EnhancedView agreement with NGA.

[R]9:35 AM New York – U.S. stocks advance after positive economic data in the euro-zone. BP estimates permanent sealing of leaking well by August 15. Chrysler quarterly loss narrowed on 22% increase in worldwide unit sales. DigitalGlobe concludes $3.55 billion EnhancedView agreement with NGA.[/R]

U.S. stocks trade higher, Asian and European markets climb. Hewlett-Packard’s CEO Mark Hurd resigns and Apple''s iPhone engineering head Mark Papermaster leaves the company.

Hewlett-Packard said that its CEO Mark Hurd resigned on charges of sexual harassment. Hurd''s decision was made following an investigation by outside legal counsel and the General Counsel''s Office, overseen by the Board, of the facts and circumstances surrounding a claim of sexual harassment against Hurd and HP by a former contractor. The company said its board has appointed CFO Cathie Lesjak as interim CEO.

Apple Inc.''s Mark Papermaster, the Senior Vice President in charge for iPhone and iPod hardware left the company following criticism of faulty design of the phone''s antenna. The Senior Vice President in charge of Macintosh hardware engineering, Bob Mansfield, would succeed Papermaster, media reports stated.

Research In Motion Ltd. began offering Blackberry services in Saudi Arabia after a temporary outage, according to media reports.

Earlier the Saudi government threatened to block text messaging, e-mail and instant messaging services if the company prohibited access to users'' encrypted data. The Canadian smartphone maker had responded to the demands by stating that it would not allow any government special access to customer data.

BP today provided an update on developments in the response to the MC252 oil well incident in the Gulf of Mexico.

The company reported that the MC252 well has been shut-in since July 15 and there is currently no oil flowing into the Gulf of Mexico. In addition, following the completion of cementing operations on the MC252 well on August 5, pressure testing was performed which indicated there is an effective cement plug in the casing. BP believes the static kill and cementing procedures have been successful.

Depending upon weather conditions, August 15th is the current estimate of the most likely date by which the first relief well will intercept the MC252 well annulus.

Operations on the second relief well, which started May 16, have been suspended at a measured depth of 15,874 feet, so as not to interfere with the completion of the first relief well.

BP said it would continue to make claim payments to individuals and businesses impacted by the oil spill until the process is taken over by the Gulf Coast Claims Facility under the leadership of Ken Feinberg later in August. As of August 7, around 145,000 claims have been submitted and over 103,900 payments have been made, totaling $319 million.

DigitalGlobe Inc. entered into a $3.55 billion agreement with National Geospatial Intelligence Agency under the EnhancedView procurement, effective September 1 upon expiration of the company''s NextView Agreement.

DigitalGlobe noted that the agreement provides for the company to supply satellite imagery deliveries from the WorldView satellite constellation under a Service Level Agreement in a total amount of $2.8 billion. The agreement also provides for up to $750 million for value-added products, infrastructure enhancements and other services. The agreement has a ten year term, inclusive of nine one-year options exercisable by NGA.

Earnings Review

Amedisys, Inc., the provider of home health care and hospice services stated second quarter net service revenue increased 11.8% to $422.35 million from $377.89 million in the previous year. Net income in the quarter declined 8.2% to $32.20 million or $1.13 per share from $35.08 million or $1.27 per share in the previous year.

Chrysler Group LLC, the automobile manufacturer reported second-quarter net revenues rose 8.2% to $10.478 billion. Net loss in the quarter narrowed 12% to $172 million from $197 million in the prior quarter, driven by the increase in operating profit.

Worldwide vehicle sales rose 22% to 407,000 units for second-quarter of 2010, compared to 334,000 units in first-quarter of 2010, with all brands posting gains.

Clinical Data Inc., the biotechnology company said first-quarter net revenue soared 48.6% to $5.5 million compared to $3.7 million a year ago. Net loss in the quarter narrowed 9.7% to $13.92 million or 51 cents per share, compared to a loss of $15.41 million or 67 cents per share in the year-ago quarter.

Dish Network Corp., a pay-television provider reported second-quarter total revenue rose 9.1% to $3.17 billion from $2.90 billion in the year-ago quarter. Net income in the quarter surged 307% to $257 million or 57 cents a share from $63 million or 14 cents a share a year earlier.

Tyson Foods, Inc., the meat protein and food production company said its third-quarter sales edged higher 11.7% to $7.44 billion from $6.66 billion in the prior-year quarter. Net income in the quarter surged 89.3% to $248 million or 65 cents per share from $131 million or 35 cents per share in the same quarter last year.

WellCare Health Plans, Inc., the provider of Medicare and Medicaid managed care health plans reported second quarter total revenues slumped 25.1% to $1.34 billion from $1.79 billion in the previous year. Net loss in the quarter was $128.87 million or $3.05 per share compared to a profit of $37.01 million or 88 cents per share a year ago.