U.S. Companies Add 187,000 Jobs; Oil, Copper in Focus

Bikram Pandey
02 Feb, 2011
New York City

U.S. stocks struggled in early trading after private sector added 187,000 jobs in January. Services added 166,000 jobs. U.S. auto sales in January increased 17%. AOL, IAC/InterActiveCorp and The Nasdaq OMX Group earnings rose.

[R]9:40 AM New York – U.S. stocks struggled in early trading after private sector added 187,000 jobs in January. Services added 166,000 jobs. U.S. auto sales in January increased 17%. AOL, IAC/InterActiveCorp and The Nasdaq OMX Group earnings rose.[/R]

U.S. stocks struggled at the opening after the release of private employer data and a steady rise in commodity prices. U.S. auto sales in January rose 17% as consumers returned to showrooms but Asian car makers retained sales momentum.

Crude oil gained base metal prices were in focus as demonstrators clashed in Cairo, Egypt.

Latest survey of private sector showed an increase in employment.

ADP Employer Services said that U.S. companies added 187,000 jobs in January after revised increase of 247,000. Service sector added 166,000 and manufacturing and construction added 21,000 jobs.

Small companies with less than 50 staff added 97,000 and mid size companies with less than 499 employees added 79,000 and large companies added 11,000.

Copper and tin prices in London trading surged to a new high on the threat from Cyclone Yasi. Copper surged more than 2.5% and tin gained more than 2%.

The category four Cyclone Yasi with more than 250 km per hour winds is expected to hit Australian eastern shores near Cairns and inflict widespread damage. Sugar industry is expected to suffer damages and metal production in Queensland has been halted only weeks after severe flood damages.

Nickel rose to $27,864 a ton in New York trading, copper closed at $9,810 a ton and tin closed at $30,400 in previous day trading.

The records label manager EMI Group Ltd was seized by Citigroup Inc after it failed to meet the covenants of debt. The bank is likely to write down the debt 65% to 1.2 billion pounds or $1.94 billion and seek a buyer as several private equity groups are bidding for the company.

Earnings Review

AOL Inc. ((AOL)), the Internet portal reported fourth quarter total revenue decreased 26% to $596.0 million from $ 806.7 million a prior year. Net income in the quarter increased to $66.2 million or 61 cents per diluted share compared to $1.4 million or 1 cent per share a year ago.

Cameron International Corporation ((CAM)), the flow equipment products provider reported fourth quarter revenue rose 23% to $1.81 billion from $ 1.46 billion a prior year. Net income in the quarter increased to $164.6 million or 66 cents per diluted share compared to $97.3 million or 41 cents per share a year ago.

Hospira, Inc. ((HSP)), the pharmaceutical company said fourth quarter net sales decreased 6% to $992.1 million from $ 1,055.2 million a prior year. Net income in the quarter decreased 37.3% to $60.6 million or 36 cents per diluted share compared to $96.7 million or 58 cents per share a year ago.

IAC/InterActiveCorp. ((IACI)), the Internet media company reported fourth quarter revenue surged 27% to $451.4 million from $355.7 million last year. Net income in the quarter was $87 million or $0.90 per diluted share compared to net loss of $1,012.9 million or $7.94 per share a year earlier.

Sales for the full year 2010 soared 22% to $1,636.8 million from $1,346.7 million a year ago. For the full year, the company''s net income was $99.4 million or $0.93 per diluted share from $978.8 million or $7.06 per share in the prior year.

The NASDAQ OMX Group, Inc. ((NDAQ)), the global exchange group said fourth quarter total revenues increased 8% to $400 million from $369 million a prior year. Net income in the quarter increased to $137 million or 69 cents per diluted share compared to $43 million or 20 cents per share a year ago.

Revenue for the full year 2010 grew to $1.52 billion from $1.45 billion a year ago. For the full year, the company''s net income soared to $395 million or $1.91 per diluted share from $266 billion or $1.25 per share in the prior year.