U.S. Jobless Claims Rise; Cisco Net Surges

Arthi Gupta
12 Aug, 2010
New York City

U.S. stocks traded lower after weekly jobless claims rose 2,000 to 484,000. U.S. foreclosure filings fell in July. Apache completed acquisition of BP Permian Basin assets for $3.1 billion. Cisco said its quarterly profit soared 79% as sales rose 27%.

[R]9:35 AM New York – U.S. stocks traded lower after weekly jobless claims rose 2,000 to 484,000. U.S. foreclosure filings fell in July. Apache completed acquisition of BP Permian Basin assets for $3.1 billion. Cisco said its quarterly profit soared 79% as sales rose 27%.[/R]

Asian and European markets declined on global economic concerns. U.S. notes negligent driving led to Toyota crashes.

The U.S. Labor Department released a report today showing that first-time claims for unemployment benefits unexpectedly saw a modest increase in the week ended August 7th. The report showed that initial jobless claims rose to 484,000 from the previous week''s revised figured of 482,000.

The U.S. import price index increased 0.2% in July but the index for export prices decreased 0.2%, according to a report released by the U.S. Bureau of Labor Statistics today.

The U.S. foreclosure filings in July declined 10% from last year, but grew 4% from the previous month, according to a U.S. Foreclosure Market Report published by RealtyTrac. The market researcher said one in every 397 U.S. housing units received a foreclosure filing during the month. July''s bank repossession increased both year-over-year and sequentially.

The researcher further added 97,123 U.S. properties received default notices in July, a 28% decrease from last year. Banks foreclosed on 92,858 U.S. properties last month. This is an increase of 6% from last year and up 9% from the prior month.

DirecTV, the satellite television company entered into an advertising partnership with Google Inc. under which the Internet search provider would be able to sell advertisements on several cable networks carried on DirecTV.

Under the deal, advertisers will be able to reach eleven DirecTV channels through Google TV ads. The channels include Bloomberg, Fox Business, Centric, Fuel, G4, Current, Ovation, Fit, Sleuth, Chiller and TV Guide.

The deal expands the reach of Google''s ad network to up to 30 million satellite households through both DirecTV and existing partnerships. Financial terms of the deal were not disclosed.

The US government''s investigation into unintended acceleration crashes revealed no defects in the Toyota Corp.’s electronic throttle system. The Transportation Department reviewed selected Toyota electronic data recorders, or ""Black Boxes,"" in order to get to the bottom of the unintended acceleration in Toyota vehicles.

The regulators told Congress that the 58 recorders did not reveal any other safety defects other than the sticky accelerator pedals or floor mat entrapment, suggesting mechanical failures or human error caused the accidents.

The data from the recorders suggested that brakes had not been applied before impact in 35 cases out of the 58 randomly checked.

Nintendo Co. Ltd., the Japanese console maker said the company sold 30 million of its Nintendo Wii gaming consoles in the U.S. alone since its launch in November 2006.

GlaxoSmithKline, the British drug manufacturer and California-based Valeant Pharmaceuticals International said that a U.S. Food and Drug Administration advisory committee voted unanimously that studies had provided substantial evidence on the safety and effectiveness of ezogabine to treat epilepsy.

The Peripheral and Central Nervous System Drugs Advisory Committee reviewed efficacy data from three pivotal studies of ezogabine and an integrated safety data base including all patients who had at least one dose of ezogabine.

Oil and gas company Apache Corp. completed the acquisition of energy giant BP Plc''s assets in the Permian Basin of West Texas and New Mexico for $3.1 billion.

Apache Corp. announced the acquisition of BP''s oil and gas operations, acreage and infrastructure in the Permian Basin of West Texas and New Mexico.

Apache stated that it acquired 10 Permian field areas with estimated proved reserves of 141 million boe or 65% liquids, first-half 2010 net production of 15,110 barrels of liquids and 81 MMcf of gas per day, and two operated gas processing plants. The transaction also included 1.7 million gross acres, including 405 thousand net mineral and fee acres.

The company further stated that it paid $3.1 billion for the Permian properties, including a $1.5 billion deposit paid July 30 and the balance paid on closing. BP will continue to operate the properties on Apache''s behalf through Nov. 30.

Earnings Review

Advance Auto Parts, Inc. ((AAP)), the retailer of automotive aftermarket parts reported second quarter sales increased 7.6% to $1.42 billion from $1.32 billion in the same quarter last year. Net income in the quarter soared 25.7% to $100.9 million or $1.16 per share compared to net income of $80.3 million or 83 cents per share in the prior-year quarter.

Cisco Systems, Inc. ((CSCO)), the computer networking gear maker said fourth quarter net sales rose 27% to $10.84 billion from $8.54 billion in the same quarter last year. Net income in the quarter surged 79% to $1.9 billion or 33 cents per share, compared to $1.1 billion or 19 cents per share for the year-ago quarter

General Motors Corporation ((GM)), the automaker stated second quarter sales rose 5.4% to $33.2 billion, versus $31.5 billion in the first quarter. Net profit in the quarter surged 50.3% to $1.3 billion as against net profit of $865 million in the preceding quarter.

Kohl''s Corporation ((KSS)), the department store chain said second quarter net sales advanced 7.6% to $4.10 billion from $3.81 billion in the year-ago quarter on comparable store sales rise of 4.6%. Net income in the quarter increased 13.5% to $260 million or 84 cents per diluted share compared to net income of $229 million or 75 cents per diluted share, a year ago.

Sara Lee Corp. ((SLE)), the food products maker stated fourth-quarter net sales edged higher 4.2% to $2.77 billion from $2.66 billion in the comparable period. Net income in the quarter was $187 million or 28 cents per diluted share versus a net loss of $14 million or 2 cents per share in the prior-year period.

The Estee Lauder Companies Inc. ((EL)), the cosmetics maker said fourth quarter sales increased 9.5% to $1.84 billion from $1.68 billion in the comparable prior-year period. Net earnings in the quarter were $23.9 million, or 12 cents per diluted share, compared to a net loss of $17.9 million or 9 cents per share last year.