U.S. Indexes Higher; AMD Net Doubles

Arthi Gupta
25 Apr, 2011
New York City

U.S. stocks rebounded after better-than-anticipated earnings and leading indicators index rose in March. Barrick Gold agreed to acquire Equinox Minerals for about C$7.3 billion. Toyota global production dropped more than 30% in March.

[R]8:00 AM New York – U.S. stocks rebounded after better-than-anticipated earnings and leading indicators index rose in March. Barrick Gold agreed to acquire Equinox Minerals for about C$7.3 billion. Toyota global production dropped more than 30% in March.[/R]

Stocks index futures advanced ahead of market opening on better than earnings expectations. Crude oil gained as tensions in the Middle East remained high and fighting in Libya continued with the no end in sight.

Three leading automakers in Japan reported a sharp reduction in auto production after the nation was hit with triple disasters in March.

Asian markets traded lower after oil prices rose and many European markets remained closed on account of Easter holidays.

Media reports on Sunday suggested that at least three people were killed and several injured in Jableh, a coastal city in Syria, after security forces opened fire on protesters without warning. Protesters are demanding political reform and for an end to Assad''s 11-year rule.

The political tension in Libya amid continued fighting between the government and the rebels.

U.S. Leading Indicators Index Rises

Leading U.S. economic indicators saw continued growth in the month of March, according to a report released by the Conference Board on Thursday.

The Conference Board said its leading economic index rose for the ninth consecutive month to 0.4% in March following an upwardly revised 1.0% increase in February.

Wal-Mart Tests Online Grocery Delivery Service

Wal-Mart Stores Inc. has reportedly begun testing an online grocery delivery service in San Jose, California. The largest grocery seller is looking to ward off competition from the online retailer Amazon.com Inc. and Safeway Inc.

Barrick Gold Acquires Equinox Minerals

Barrick Gold Corp. entered into a support agreement with Equinox Minerals Ltd. by which Barrick would acquire all of the issued and outstanding common shares of Equinox through an all-cash offer. The offer is for C$8.15 per Equinox share in cash, or a total of around C$7.3 billion.

Samsung-Sony JV Plans on Capital Reduction

S-LCD Corp., a flat-panel joint venture of Samsung Electronics Co. Ltd. and Sony Corp. is planning to reduce its capital by 600 billion won or $555 million, media reported on Monday, citing a regulatory filing.

After the capital reduction, the JV''s equity capital will decline to 3.3 trillion won or $3.1 billion from current 3.9 trillion won through share cancellations. The company''s issued shares will also decrease by about 15% to 660 million from 780 million.

Toyota Estimates Normal Production by Year-End

Toyota Motor Corp., the Japanese automaker, said on Friday that the company expected to normalize its production operations around November or December 2011.

Toyota announced last week that it had decided to proceed with vehicle production in Japan at approximately 50% of the normal rate from May 10 to June 3.

Honda, Toyota Production Falls

Honda Motor Co. Ltd. reported that its March 2011 worldwide total production totaled 282,254 units, down 19.2% from the prior year. Worldwide production in Japan for the same month dropped 62.9% to 34,754 units.

Toyota Motor Corp. reported a 31.3% annual decrease in its worldwide production to 591,240 units for the month of March 2011. Total production in Japan for the same month amounted to 162,309 units, a decline of 61.5% on a yearly basis.

Earnings Review

Advanced Micro Devices, Inc. ((AMD)), the chip maker said first quarter net revenue grew 2.5% to $1.61 billion from $1.57 billion in the same quarter last year. Net income in the quarter soared 98.4% to $510 million or 68 cents per diluted share compared to net income of $257 million or 35 cents per share for the year-ago quarter.

BE Aerospace, Inc. ((BEAV)), a manufacturer of aerospace and defense products reported first quarter revenue rose 29.5% to $600.2 million from $463.5 million in the prior-year period. Net earnings in the quarter increased 48.8% to $50.3 million or 49 cents per diluted share compared to net earnings of $33.8 million or 34 cents per share last year.

Changyou.com Limited ((CYOU)), the online game developer and operator said first quarter total revenues increased 35% to $97.1 million from $72.1 million in the comparable period. Net income in the quarter grew 33% to $52.85 million from $39.71 million last year. Earnings per ADS were $0.99, higher than $0.75 in the first quarter of 2010.

Johnson Controls, Inc. ((JCI)), the provider of automotive interiors second quarter net sales improved 22% to $10.14 billion from $8.32 billion in the comparable period a year ago. Net income in the quarter grew 29.2% to $354 million or 51 cents per diluted share compared to net income of $274 million or 40 cents per share last year.

RadioShack Corporation ((RSH)), the consumer electronics goods and services retailer stated first quarter net sales and operating revenues increased 1.9% to $1.06 billion from $1.04 billion in the comparable period last year. Net income in the quarter declined 29.9% to $35.1 million or 33 cents per diluted share compared to net income of $50.1 million or 39 cents per share last year.

Sohu.com Inc. ((SOHU)), the Chinese online media company reported first quarter total revenues climbed 35% to $174.37 million from $129.45 million in the prior year. Net income attributable to Sohu.com rose 48.4% to $44.81 million compared to net income of $30.19 million last year. Earnings per share grew to $1.01 from $0.73 a year ago.