US Indexes Lower; MasterCard Net Rises 24%, Pfizer Net Up 10%

Arthi Gupta
03 May, 2011
New York City

U.S. indexes traded lower after construction spending rose more than estimated in March and manufacturing activity fell in April. Pfizer net climbed 10%. MasterCard quarterly net beats forecasts.

US Indexes Lower; MasterCard Net Rises 24%, Pfizer Net Up 10%

[R]9:40 AM New York – U.S. indexes traded lower after construction spending rose more than estimated in March and manufacturing activity fell in April. Pfizer net climbed 10%. MasterCard quarterly net beats forecasts.[/R]

Global indexes traded lower tracking lower commodities.

Euro area producer price inflation accelerated for the fifth straight month in March according to the data from Eurostat today.

The Reserve Bank of India raised its key interest rate by 50 basis points to contain inflationary expectations. The repo, the rate at which the RBI lends, was raised by 50 basis points to 7.25% from 6.75% with immediate effect.

The reverse repo, the rate at which the central bank borrows from banks, automatically adjusts to 6.25%.

U.S. Construction Spending Rises

Construction spending in the U.S. rebounded more quickly than expected in March following a contraction in February.

Construction spending in March came in at a seasonally adjusted annual rate of $768.9 billion, a 1.4% increase from the revised figures for February, according to figures released by the Census Department on Monday.

In another report, the Institute for Supply Management said that U.S. manufacturing activity increased at a slower pace in April.

The ISM said its index of manufacturing activity fell to 60.4 in April from 61.2 in March.

Nasdaq and ICE Plans Exchange Offer

Nasdaq OMX Group, Inc. and Intercontinental Exchange, Inc. said on Monday that their boards have approved the commencement of an exchange offer to acquire all of the outstanding shares of NYSE Euronext. The cash and stock transaction is valued at approximately $11 billion.

The Nasdaq and ICE''s combined hostile takeover seeks to scuttle the mid-February deal between NYSE Euronext and Germany''s Deutsche Boerse AG.

Sony Confirms Data Theft

Sony Corp.''s independent business unit Sony Computer Entertainment Inc. that markets the PlayStation game consoles announced on Monday that there have been illegal intrusions into the Sony Online Entertainment or SOE, systems which led to the theft of personal information from millions of SOE accounts.

The company noted that personal information from about 24.6 million SOE accounts may have been stolen through system intrusions on April 16 and April 17. Further, about 10,700 direct debit records of certain customers in Austria, Germany, Netherlands and Spain may also have been stolen.

Earnings Review

Anadarko Petroleum Corporation ((APC)), the independent oil and natural gas exploration and production company reported first quarter revenue grew 3.5% to $3.25 billion from $3.14 billion in the year-ago period. Net income in the quarter slumped 69.8% to $216 million or 43 cents per diluted share compared to net income of $716 million or $1.43 per share in the year-ago quarter.

Automatic Data Processing, Inc. ((ADP)), the payroll processor said third quarter total revenue rose 12% to $2.74 billion from $2.44 billion in the same quarter last year. Net income in the quarter increased 5% to $423.8 million or 85 cents per diluted share compared to net income of $403.6 million or 80 cents per share for the year-ago quarter.

Chesapeake Energy Corporation ((CHK)), the producer of natural gas said first quarter revenues declined 43% to $1.6 billion from $2.8 billion in the same quarter of last year. Net loss in the quarter was $205 million or 32 cents per diluted share compared to a net profit of $732 million or $1.14 per share last year.

Cognizant Technology Solutions Corp. ((CTSH)), the information technology services provider reported first quarter revenue rose 42.9% to $1.37 billion from $959.7 million in the comparable period a year ago. Net income in the quarter climbed 37.5% to $208.3 million or 67 cents per diluted share compared with net income of $151.5 million or 49 cents per share last year.

MasterCard, Incorporated ((MA)), the global payment processor reported first quarter net revenues grew 14.8% to $1.50 billion from $1.31 billion in the same quarter last year. Net income in the quarter rose 23.5% to $562 million or $4.29 per share compared to net income of $455 million or $3.46 per share in the prior-year quarter.