U.S. Stocks Gain; Eastman Kodak, Rural-Metro Soar

Bikram Pandey
28 Mar, 2011
New York City

U.S. stocks traded higher after personal income increased 0.3% and disposable personal income increased 0.3% in February. Markets in Europe traded lackluster and German ruling coalition lost two regional elections. Eastman Kodak soared on a patent ruling case.

[R]9:57 AM New York – U.S. stocks traded higher after personal income increased 0.3% and disposable personal income increased 0.3% in February. Markets in Europe traded lackluster and German ruling coalition lost two regional elections. Eastman Kodak soared on a patent ruling case.[/R]

U.S. stocks traded higher in the early trading after the release of personal income and personal savings data. The 0.2% increase in personal income was in line with expectations by economists and market is awaiting the pending home sales index and regional manufacturing survey in the Dallas district.

February personal income rose 0.3% and disposable personal income increased 0.3%. Personal consumption expenditure increased 0.7% in the month.

In January personal income increased 1.2%, DPI increased 0.8% and Personal Consumption Expenditure increased 0.3% on revised estimate. Separately, core PCE price index increased 0.2% last month from January.

European stocks traded sideways in the early trading and energy prices eased in London. Asian markets closed mixed after Japan struggled with radiation leak.

German regional elections results were in line with expectations and ruling coalition controlled by Angela Merkel party suffered set backs in two regions. The Greens defeated Christian Democrat Union in Baden-Wuerttemberg and 58 straight years of rule in the state.

Chancellor Merkel after the results told a news conference, “We lost our majority there and that’s painful.” “It is a deep wound in the history of” state and for the party and “the pain from the loss won’t go away in just one day.”

Crude oil declined after Libyan rebels advanced and regained to oil complex cities and raised the prospects of higher oil flow to Europe.

The dollar gained against the euro and traded at $1.4033 compared to $1.409 on Friday.

Stock Movers

Eastman Kodak ((EK)) soared 12% to $3.80 after the U.S. International Trade Commission said it will review a recent patent ruling that Research in Motion and Apple did not violate its digital camera patents.

Rural/Metro Corporation ((RURL)) soared 36% or $4.57 to $17.12 after the private equity company agreed to take the company private at $17.25 a share or for $438 million.

Lululemon Athletica Inc ((LULU)) increased 5.3% to $82.79 after the retailer of casual and athletic wear reported better than expected earnings last week and the stock extended gains.

Alcatel-Lucent ((ALU)) increased 9.2% to $5.83 after Goldman Sachs made positive comments on the company and increased its stock rating on price basis.