U.S. Stocks Flat; Jobless Claims Fall, Chain Store Sales Ahead of Expectations

Bikram Pandey
07 Apr, 2011
New York City

U.S. stocks were flat after the release of weekly jobless claims and chain store sales in March. Jobless claims declined to 382,000. Store sales were ahead of expectations despite the calendar shift and rising energy prices. Costco and Limited same store sales surged and Gap lowered profit outlook.

[R]10:15 AM New York – U.S. stocks were flat after the release of weekly jobless claims and chain store sales in March. Jobless claims declined to 382,000. Same store sales were ahead of expectations despite the calendar shift and rising energy prices. Costco and Limited Brands same store sales surged and Gap lowered profit outlook.[/R]

U.S. stocks in early trading were flat after the release of weekly jobless claims and chain store March sales.

Retailers reported better than expected same store sales in March. Sales at Target, Costco Wholesale Corp and Limited reported higher than expected sales despite late Easter and high gasoline prices.

Seasonally adjusted weekly jobless claims decreased 10,000 to 382,000 from the revised previous week revised claims of 392,000.

The preliminary insured unemployment rate in the week ending March 26 was unchanged from the prior week''s unrevised rate of 3.0%.

Across the Atlantic, European Central Bank lifted key lending rate by 0.25% to 1.25% and President Jean-Claude Trichet said at a press conference that the central bank has not decided about future successive rate increases.

Bank of England left its key lending rate at 0.5% despite the sharp increase in inflation rate at 4.4% in March. The central bank also left its bond buying program on hold and took a wait and see approach on inflation.

Portugal is expected to ask as much as 90 billion euros of help from the European Union between now and July to stave off the widening financial crisis. The move was widely expected but investors shifted their focus now on France, Spain and Italy.

Stock Movers

Retailers were among the leading gainers today.

The Buckle, Inc increased 11%, Bed Bath & Beyond Inc gained 9.4% and Limited Brands Inc was flat after it reported same store sales increase of 14% in March.

Costco Wholesale Corp increased 4% after it reported 13% increase in same store sale and Target Corp declined 0.8%.

Gap Inc declined 3% after it reported weaker than expected store sales and also guided lower earnings in the quarter on the recent natural disaster in Japan.

Kohl’s increased 1.1% after it reported same store sales declined 6.5% in March, lower than expected decline between 7% and 7.5% by analysts.