U.S. Foreclosure Filings Fall 21%; Jobless Claims Decline 3,000

Arthi Gupta
16 Dec, 2010
New York City

U.S. stocks traded sideways after weekly jobless claims fell and housing starts rose more than anticipated. Spain completed

[R]9:35 AM New York – U.S. stocks traded sideways after weekly jobless claims fell and housing starts rose more than anticipated. Spain completed €2.4 billion bond offering at 20% higher yield than the previous auction. FedEx net declined 18% and agreed to buy Mexico based company.[/R]

Asian and European markets fell.

The Spanish government sold €2.4 billion of long-term government bonds, with the average yield on the 10-year bonds at 5.446% and 5.932% on 15-year bonds, around 20% higher than previous auctions.

U.S. Foreclosure Filings Decline, Jobless Claims Fall

U.S. foreclosure filings in November declined 21% on a monthly basis to their lowest level in two years due to a seasonal drop as well as a pause in activity from lenders, according to RealtyTrac. The filings declined 14% from a year ago month.

The market researcher said one in 492 U.S. housing units received a foreclosure filing during November totaling 262,339 properties.

The U.S. Labor Department released a report on Thursday showing another modest drop in initial jobless claims in the week ended December 11. The report showed that jobless claims fell to 420,000 from the previous week''s revised figure of 423,000.

The U.S. Commerce Department said housing starts rose 3.9% to an annual rate of 555,000 in November from the revised October estimate of 534,000.

However, building permits, an indicator of future housing demand, fell 4.0% to an annual rate of 530,000 in November from the revised 552,000 in the previous month.

Ratings agency Standard & Poor''s raised China''s credit rating citing improved financial and economic stability. The rating was raised to AA- from A+. The outlook was maintained as ""stable.""

U.S. Sues BP

U.S. Attorney General Eric Holder announced that the Justice Department filed a civil lawsuit against BP Exploration and Production Inc. and either other companies regarding the Deepwater Horizon Oil Spill that dumped millions of barrels of oil into the Gulf of Mexico.

Along with the BP Plc unit, the other defendants include Anadarko Petroleum, Transocean, and the MOEX subsidiary of Mitsui & Co.

McDonald''s Boosts Investment in China

McDonald''s Corp. plans to boost investment in China and double its presence there by 2013, according to a release published on the company''s China Web site. The company plans to increase its investments in China by 40% next year and to add as many as 200 new restaurants in 2011.

Pfizer Extends Tender Offer

Pfizer Inc. announced that its wholly-owned subsidiary, Parker Tennessee Corp., extended the expiration date of its tender offer for all outstanding shares of common stock of King Pharmaceuticals, Inc. for $14.25 per share, net to the seller in cash.

FedEx Acquires MultiPack

FedEx Corp. signed an agreement to acquire MultiPack, a Mexican domestic express package delivery company. This transaction will allow its FedEx Express business unit to enhance its capabilities in the Mexican domestic market with a broader portfolio of transportation and logistics options under the trusted FedEx brand

AOL Buys Pictela

AOL Inc. announced the acquisition of Pictela, Inc., a provider of a technology platform for serving and distributing content across online advertising and social media. Deal terms were not disclosed.

Earnings Review

ABM Industries, Inc. ((ABM)), the janitorial, parking and security service provider reported fourth quarter revenues edged up 3.8% to $901.4 million from $868 million last year. Net income soared 45.2% to $21.8 million or 41 cents per diluted share, compared to net income of $15 million or 29 cents per share a year ago.

Danaher Corporation ((DHR)), the diversified conglomerate raised the lower end of its non-GAAP earnings outlook for the fourth quarter and full-year 2010. For the fourth quarter 2010, the company estimates non-GAAP adjusted earnings of $0.64 to $0.66 per share and for the full-year 2010. Danaher currently estimates non-GAAP adjusted earnings of $2.28 to $2.30 per share.

FedEx Corporation ((FDX)), the logistics services company said second-quarter revenue rose 12% to $9.63 billion, from $8.60 billion in the previous year. Net income in the quarter declined 18% to $283 million or 89 cents per diluted share, compared to net income of $345 million or $1.10 per share in the prior-year period.

General Mills, Inc. ((GIS)), the manufacturer and marketer of consumer foods said second quarter net sales increased 0.8% to $4.07 billion from $4.03 billion in the comparable period a year ago. Net earnings in the quarter grew 8.6% to $613.9 million or 92 cents per diluted share, compared to net earnings of $565.5 million or 83 cents per share a year earlier.

Herman Miller, Inc. ((MLHR)), the office furniture systems maker reported second quarter net sales grew 19.9% to $412.2 million from $343.7 million in the prior-year period. Net earnings in the quarter surged 86% to $17.9 million or 26 cents per diluted share, compared to net earnings of $9.6 million or 17 cents per share in the year-ago period.

Nordson Corporation ((NDSN)), the producer of precision dispensing equipment said fourth quarter net sales rose 22% to $290.18 million from $237.44 million in the same quarter last year, driven by a 23% increase in volume. Net income generated in the quarter was $53.6 million or $1.56 per share, compared to a net loss of $209.0 million or $6.22 per share for the year-ago quarter.

For the fiscal year 2010, the company reported net sales increased 27% to $1.04 billion from $819.17 billion last year. Net income for the period was $168.0 million or $4.91 per share, compared to a net loss of $160.1 million or $4.77 per share for the fiscal year 2009.

The Progressive Corporation ((PGR)), the auto insurance group reported net income for the month of November surged 37% to $109.9 million from $80.0 million in the same period last year, boosted by an increase in net premiums and higher investment gains from securities.

Valassis Communications, Inc. ((VCI)), the media and marketing services company reiterated 2010 cash earnings per share of about $3.20. For fiscal year 2011, the company forecasts earnings per share of $2.76 and cash earnings per share of $3.71.