Lackluster New York Trading; Crude Oil 2-year High, Visa, MasterCard Net Up

Bikram Pandey
03 Feb, 2011
New York City

U.S. stocks traded sideways as crude oil climbs to a 2-year high and copper and cotton surge. Commodities markets turn jittery for the third day as popular unrest in the Middle East spread to Yemen. Visa, News Corp, Royal Dutch Shell and Hermes earnings rise. MasterCard quarterly net soared 41%.

[R]9:45 AM New York – U.S. stocks traded sideways as crude oil climbs to a 2-year high and copper and cotton surge. Commodities markets turn jittery for the third day as popular unrest in the Middle East spread to Yemen. Visa, News Corp, Royal Dutch Shell and Hermes earnings rise. MasterCard quarterly net soared 41%.[/R]

U.S. indexes trade lackluster in the early trading as crude oil advance for the fifth day in a row, European markets decline and popular unrest spread in North Africa and Middle East.

Seasonally adjusted U.S. weekly jobless claims decreased 42,000 to 415,000 from the revised previous week claims of 457,000. The preliminary insured unemployment rate in the week ending January 22 fell to 3.1% from the prior week's unrevised rate of 3.2%.

Nonfarm business sector labor productivity increased at a 2.6% annual rate during the fourth quarter of 2010. Output increased 4.5% and hours worked increased 1.8% in the fourth quarter.

Brent Crude increase 1% in London trading above $103.30 a barrel and investors begin to factor protracted violence in Egypt and Yemen. West Texas Intermediate crude oil also gained 1.3% to $91 yesterday and edged up in the early trading to $91.11.

The euro declined 0.3% against the dollar as European stocks sell off.

U.S. Senate Democrats defeated a motion to repeal health-care overhaul. The vote required at least 60 votes in the Senate but was defeated by 51-47 as lawmakers voted along the party lines.

MasterCard Inc said fourth quarter earnings increased to $415 million from $295 million a year ago and earnings per share rose to $3.16 from $2.24.

Worldwide spending through the networks controlled by the company and MasterCard and Maestro branded cards increased 11% to $567 billion in local currencies and number transaction processed increased 6.3% to 6.2 billion.

Earnings Review

ACE Limited ((ACE)), the Switzerland based insurance company reported fourth quarter net premium edged up to $4.56 billion from $4.51 billion last year. Net income in the quarter was $1,001 million or $2.92 per diluted share compared to $953 million or $2.81 per share a year earlier.

News Corporation ((NWSA)), the media company said second quarter revenue increased to $8.76 billion from $8.68 billion last year. Net income in the quarter was $642 million or 24 cents per diluted share compared to $254 million or 10 cents per share in the prior year.

Starwood Hotels & Resorts Worldwide, Inc ((HOT)), the hotel and leisure company reported fourth quarter revenue surged 6.7% to $459 million from $430 million last year. Net income in the quarter was $339 million or $1.78 per diluted share compared to net loss of $107 million or $0.59 per share a year earlier.

Visa Inc. ((V)), the payments technology company reported first quarter net revenue increased 14% to $2.24 billion from $1.96 million a prior year. Net income in the quarter increased to $884 million or $1.23 per diluted share compared to $763 million or $1.03 per share a year ago.

YUM! Brands, Inc. ((YUM)), the quick service restaurant reported fourth quarter revenue surged 6% to $3.56 billion from $3.36 billion last year. Net income in the quarter soared 27% to $274 million or 50 cents per diluted share compared to $216 million or 42 cents per share a year earlier. Same-store-sales grew 6% in China and 1% in the U.S.