Libya Split Lifts Oil Again; U.S. Durable Goods Increased 2.7%

Arthi Gupta
24 Feb, 2011
New York City

World indexes fell after violence in Libya continued and crude oil price surged 21% in thirty days and rose to 30-month peak. Weekly jobless claims decline 22,000 and durable goods orders increased 2.7%.

[R]9:00 AM New York – World indexes fell after violence in Libya continued and crude oil price surged 21% in thirty days and rose to 30-month peak. Weekly jobless claims decline 22,000 and durable goods orders increased 2.7%.[/R]

Traders are worried that the political unrest in Libya may spread to other oil producing countries and Muammar Gaddafi lost control over areas in the Eastern rich in oil. The oil price has jumped 21% in the last thirty days and now trades at 30-month high.

International momentum is building for action against Libyan leader Muammar Qaddafi’s regime for a protest crackdown that has killed hundreds in more than a week. In particular, the prospect of slapping sanctions and the establishment of a no-fly zone over Libya are discussed.

The Federal Reserve will need to tighten monetary policy even before the unemployment rate drops back to satisfactory levels, the Philadelphia Federal Reserve President Charles Plosser said in Alabama.

The Federal Reserve Bank of Kansas City President Thomas Hoenig speaking at an event in Washington said too big to fail financial institutions continue to pose major risks to the US economy, and must be broken up to avoid another financial crisis.

The International Monetary Fund warned the G20 group of nations to work together to resolve global imbalances, according to a staff note released by the fund on Wednesday.

The global economy was in a two-speed recovery, with subdued growth in advanced economies contrasted by robust growth in the emerging economies.

Weekly Jobless Claims Fall 22,000

Seasonally adjusted weekly jobless claims decreased 22,000 to 391,000 from the revised previous week claims of 413,000. The preliminary insured unemployment rate in the week ending February 12 was 3.0% from the prior week''s unrevised rate of 3.1%.

U.S. Durable Goods Orders Increase 2.7%

January durable goods orders increased 2.7% or $5.3 billion to $200.5 billion, this follows four consecutive monthly declines and 0.4% fall in December. Orders excluding transportation decreased 3.6% and defense rose 1.9%

U.S. Foreclosure Home Sales Decline

Total foreclosure sales recorded in the fourth quarter in the U.S. were 149,303, a decline of 22% from the sequentially preceding quarter, according to RealtyTrac. This was despite a 21% monthly rise in foreclosure sales volume in December, the report said.

California had the highest number of foreclosure sales of 43,097 homes, followed by Florida''s 23,805 sales and Arizona''s 13,871 sales.

Apple Shareholders Reject CEO Succession Plan

Shareholders of Apple Inc. rejected a proposal that requires the company to reveal a succession plan for its ailing chief executive officer Steve Jobs. The proposal submitted by the Central Laborers'' Pension Fund, which owns 11,484 shares of Apple''s common stock had requested the board to adopt and disclose a detailed succession plan policy in case Jobs leaves as CEO.

Earnings Review

Continental Resources, Inc. ((CLR)), the independent crude oil and natural gas exploration and production company reported fourth quarter sales grew 34.3% to $273.1 million from $203.3 million last year. Net loss in the quarter was $45.0 million or 27 cents per diluted share compared with net income of $49.5 million or 29 cents per share for the year-ago quarter.

Sales for the year surged 55.3% to $948.5 million from $610.7 million in fiscal year 2009. For the full year, net income rose 136% to $168.3 million or $0.99 per share from $71.3 million or $0.42 per share for 2009.

Deere & Company ((DE)), the farm & construction machinery maker said it aims to almost double its net sales by 2018 with expansion of its global footprint amid continuing strong demand for farm machinery and construction equipments.

Dollar Thrifty Automotive Group, Inc. ((DTG)), the car rental company reported fourth quarter total revenues grew 1.1% to $349.06 million from $345.32 million year ago. Net income improved 9% to $12.49 million from $11.46 million last year. However, on a per share basis, earnings dropped to 41 cents from 42 cents the prior year.

Fluor Corporation ((FLR)), the engineering and construction company reported fourth quarter revenue declined 4% to $5.27 billion from $5.48 billion in the year-ago period. Net earnings in the quarter fell 21% to $117.1 million or 65 cents per diluted share compared to net income of $148.7 million or 82 cents per share in the year-ago quarter.

Kohl''s Corporation ((KSS)), the department store chain stated fourth quarter net sales grew 6.3% to $6.04 billion from $5.68 billion in the prior-year quarter. Comparable store sales for the quarter grew 4.3%. Net income in the quarter climbed 14.4% to $493 million or $1.66 per share compared to net income of $431 million or $1.40 per share last year.

Limited Brands, Inc. ((LTD)), the women''s apparel and personal care products retailer said fourth quarter net sales increased 13% to $3.46 billion from $3.06 billion in the same quarter last year. Comparable store sales increased 10% over a year ago. Net income in the quarter rose 27% to $452.3 million or $1.36 per share compared to net income of $356.1 million or $1.08 per share in the prior-year quarter.

Annual net sales increased 11% to $9.61 billion from $8.63 billion a year ago. The company reported a comparable store sales increase of 9% for the year. For the full year 2010, net income soared 80% to $804.8 million or $2.42 per share from $447.9 million or $1.37 per share in the previous year.

priceline.com Incorporated ((PCLN)), the online travel company reported fourth quarter total revenues increased 35% to $731.32 million from $541.75 million last year. Net income in the quarter rose 73% to $135.73 million or $2.66 per share compared to net income of $78.45 million or $1.55 per share in the previous year.

Sears Holdings Corporation ((SHLD)), the major retail conglomerate reported fourth quarter revenues declined 0.8% to $13.14 billion from $13.25 billion in the year-ago quarter. Net income in the quarter fell 13% to $374 million or $3.43 per share from $430 million or $3.74 per share in the prior year.

The TJX Companies, Inc. ((TJX)), the off-price retailer reported fourth quarter net sales climbed 7% to $6.33 billion from $5.94 billion in the prior year. Net income in the quarter dropped 15.3% to $334.41 million or 84 cents per diluted share compared with net income of $395 million or 94 cents per share a year ago.

Whiting Petroleum Corporation ((WLL)), the independent oil and gas company reported fourth quarter revenues rose 31% to $413.5 million from $316.0 million a year ago. Net income generated in the quarter was $65.9 million or 56 cents per diluted share compared to net loss of $11.2 million or 12 cents per share a year earlier.