U.S. Jobless Claims Rise 27,000; Foreclosure Filings Decline

Arthi Gupta
14 Apr, 2011
New York City

The U.S. indexes traded lower after weekly jobless claims rose 27,000 to 412,000. U.S. producer prices climbed less than anticipated and foreclosure filings dropped in March and the first quarter. Hasbro quarterly net dropped.

[R]9:45 AM New York – The U.S. indexes traded lower after weekly jobless claims rose 27,000 to 412,000. U.S. producer prices climbed less than anticipated and foreclosure filings dropped in March and the first quarter. Hasbro quarterly net dropped.[/R]

U.S. stocks traded sideways as commodities remained elevated and the dollar weakened against the euro and the pound. Investors are awaiting the inflation data in China tomorrow and the meeting of G-20 finance ministers in Washington.

European and Asian indexes declined after commodity prices rose and fresh concerns about inflation in China.

Hong Kong''s Phoenix TV reported that Chinese inflation could reach an annual rate as high as 5.4% in March, a 32-month high and above the government target. Inflation has been on the rise in China for the last six months as banks loan surge.

U.S. Weekly Jobless Claims Rise

First-time claims from unemployment benefits in the U.S. unexpectedly showed a notable increase in the week ended April 9, the Labor Department released showed on Thursday.

The report showed that initial jobless claims rose 27,000 to 412,000 from the previous week''s revised figure of 385,000.

The preliminary insured unemployment rate in the week ending April 2 was 2.9% from the prior week''s unrevised rate of 3.0%.

U.S. Producer Prices Climb

The U.S. Labor Department said its producer price index rose 0.7% in March following a 1.6% increase in February, with a drop in food prices partly offsetting another notable increase in energy prices.

Excluding food and energy prices, core producer prices increased 0.3% in March after edging up 0.2% in February.

U.S. Foreclosure Filings Drop

RealtyTrac, an online marketplace for foreclosure properties, said that foreclosure filings in March fell 35% from last year, while it increased 7% sequentially. For the first quarter, foreclosure filings were down 27% from a quarter year ago and 15% from the previous quarter.

A total of 73,393 properties received default notices for the first time in March. In the first quarter, 681,153 homeowners received a foreclosure notice, which represented one in every 191 U.S. homes.

Senate Panel Releases Findings on Financial Crisis

The U.S. Senate''s Permanent Subcommittee on Investigations released its findings of a two-year probe on the key causes of the financial crisis.

The Subcommittee blamed investment banks like Goldman Sachs who deliberately took advantage at the expense of their clients and investors when it realized that the mortgage market was in decline.

The report also said that the rating agencies Moody’s and Standard & Poor’s adjusted the way they rated mortgage securities and caved under the pressure from Goldman Sachs, UBS and at least six more banks.

Earnings Review

Fairchild Semiconductor International Inc. ((FCS)), the semiconductor company stated first quarter total revenue increased 9.3% to $413.0 million from $378.0 million in the comparable period a year ago. Net income in the quarter grew 92.5% to $43.5 million or 33 cents per diluted share compared to net income of $22.6 million or 18 cents per share last year.

Hasbro, Inc. ((HAS)), the games and toys maker reported first quarter revenues dropped slightly 0.1% to $671.99 million from last year''s $672.37 million. Net earnings in the quarter fell 71% to $17.20 million or 12 cents per diluted share compared to net earnings of $58.94 million or 40 cents per share last year.

Manulife Financial Corp. ((MFC, MFC.TO)), the Canada-based insurer said net income for the fourth quarter was C$1.78 billion or C$0.96 per share.

Prosperity Bancshares, Inc. ((PRSP)), the financial holding company said first quarter net income increased 9.3% to $33.88 million or $0.72 per share from $30.998 million or $0.66 per share last year. Net interest income in the quarter before provision for credit grew 3.4% to $80.413 million compared with $77.77 million during the same period in 2010.