U.S. Indexes Lower; Nokia Drops 10%, Kraft Net Declines 24%

Bikram Pandey
11 Feb, 2011
New York City

U.S. stocks traded lower after tensions in Egypt rose after President Hosni Mubarak said he is ready to relinquish some power to vice president. Nokia dropped as much as 10% after it announced a strategic partnership with Microsoft for its smartphones operating system. Kraft quarterly net fell 24%.

[R]9:10 AM New York – U.S. stocks traded lower after tensions in Egypt rose after President Hosni Mubarak said he is ready to relinquish some power to vice president. Nokia dropped as much as 10% after it announced a strategic partnership with Microsoft for its smartphones operating system. Kraft quarterly net declined 24%. Ford will cut its debt by $3 billion.[/R]

U.S. stocks traded lower as markets in Europe edged lower in the afternoon and indexes in Asia closed mixed. Kraft Foods fourth quarter revenues rose 30% but net declined 24%.

Nokia Corp declined as much as 10% in European trading after the company released a strategic partnership with Microsoft.

Nokia will use the mobile operating system developed by Microsoft for its smartphones as it struggles to gain traction in the market dominated by Google’s operating system Android and Apple Inc made iPhone.

The decision to use Microsoft’s Windows Phone has not been easy for the company after struggling with Symbian operating system and its internal group developing higher end system for smartphones.

Of the 100 million smartphones shipped it he fourth quarter Windows Phone has were only 2 million.

Trade deficit in December increased to $40.6 billion from $38.3 billion in November. December exports raised $2.8 billion and imports increased $5.1 billion. The goods deficit increased to $53.6 billion and service surplus unchanged at $13.0 billion.

Inflation in Germany rose to 2% annual rate in January from 1.9% in December according to the latest data released by the Federal Statistics Office in Wiesbaden.

Prices declined 0.5% in the month and rose 1.2% in December on a harmonized basis and the increase in food prices are still not visible in the core prices.

Food prices have been on the rise worldwide and a rise in fuel prices of more than 11% in the last three months have also not affected the core inflation rate so far.

Vietnam devalued its currency as the difference between the office rate and in the open market widened to more than 10%.

The State Bank of Vietnam fixed the reference rate for its currency dong at 20,693 or 8.5% lower from 18,932 to a dollar. The central bank also narrowed the currency trading band to 1% form 3%.

Vietnam has been battling with 20% plus inflation as government keeps focus on economic expansion and on growth. Interest rate, the key barometer for the inflation in the nation has hovered near 20% even though reference rate determined by the bank is 9%.

Vietnam foreign exchange reserves have dropped to less than three months of its imports of less than $15 billion, according to private estimates.

India’s industrial output increased at the slowed pace in nearly two years as factories struggle to add capacity.

Industrial output increased 1.6% in December from a year ago when the out pout rose 16.8%. November data was also revised higher to 3.7% from the previous estimate of increase of 2.7%.

Stock Movers

Alcatel Lucent ((ALU)), the France based transformation solution provider reported fourth quarter revenue increased 22.6% to 4.86 billion euros from 3.97 billion a prior year. Net income in the quarter surged to 340 million euros or 17 cents per diluted share compared to 46 million euros or 3 cents per share a year ago.

Revenue for the full year 2010 increased 5% to 16.00 billion euros from 15.16 billion euros a year ago. For the full year, the company''s net loss declined to 334 million euros or $0.20 per diluted share from 524 billion euros or $0.33 per share in the prior year.

Chipotle Mexican Grill, Inc. ((CMG)), the Mexican food restaurant company said fourth quarter revenue increased 24.5% to $482.5 million from $387.5 million a prior year. Comparable restaurant sales increased 12.6%. Net income in the quarter soared 47% to $46.4 million or $1.47 per diluted share compared to $31.6 million or $0.99 per share a year ago.

Credit Suisse Group AG, the Switzerland based financial services company reported fourth quarter revenue increased 7% to CHF 6,960 million from CHF 6,533 million a prior year. Net income in the quarter increased 6% to CHF 841 million or CHF 0.59 per diluted share compared to CHF 793 million or CHF 0.56 per share a year ago.

Revenue for the full year 2010 fell 9% to CHF 30,625 million from CHF 33,617 million a year ago. For the full year, the company''s net income decreased 24% CHF 5,098 million or CHF 3.89 per diluted share from CHF 6,724 million or CHF 5.14 per share in the prior year.

Kraft Foods Inc. ((KFT)), the packaged food maker reported fourth quarter revenue soared 30% to $13.8 billion from $10.6 billion a prior year. Net income in the quarter declined 24% to $540 million or 31 cents per diluted share compared to $710 million or 48 cents per share a year ago.

Revenue for the full year 2010 increased 27% to $49.2 billion from $38.7 billion a year ago. For the full year, the company''s net income increased 36.2% to $4.11 billion or $2.39 per diluted share from $3.02 billion or $2.03 per share in the prior year.

L''Oreal SA, the France-based cosmetics company reported for the year net sales increased to 19.50 billion euros from 17.47 billion euros a prior year. Net profit for the year increased to 2.242 billion euros or 3.79 euros per diluted share compared to 1.795 billion or 3.07 euros per share a year ago.