U.S. Stocks Decline on Inflation Increase; Yahoo, Nvidia Down

Bikram Pandey
13 May, 2011
New York City

U.S. stocks traded lower after consumer prices rose more than expected. Tech stocks declined after Yahoo and Nvidia dropped 7%. Dillard

[R]11:30 AM New York – U.S. stocks traded lower after consumer prices rose more than expected. Tech stocks declined after Yahoo and Nvidia dropped 7%. Dillard’s surged 15% after earnings rose more than expected. European markets gained after gross domestic product expanded in the euro-zone.[/R]

U.S. stocks declined after consumer prices rose more than expected and tech stocks declined on weakness in Nvidia and Yahoo.

The index of consumer prices increased 0.4% in April from March and increased 3.2% from a year ago month. The energy index rose 2.2% and gasoline index increased 3.3% in April, according to the U.S. Labor Department.

European markets edged higher after euro-zone gross domestic product increased in the quarter to March. Germany and France economic expansion led the region with peripheral nations still struggling.

The latest economic data showed Germany expanded at 1.5% in the latest quarter from the fourth quarter and rose 4.9% a year ago. France expanded at 1% in the quarter from the fourth quarter.

Portugal and Italy reported weaker than expected economic expansion and Spain expanded but domestic consumption was lower than expected.

The market indexes and bank stocks were under pressure after Chief Cabinet Secretary Yukio Edano comments. Stocks declined to a two-week low in heavy trading after the government approved a plan to help Tepco.

The Nikkei 225 Stock Average declined 0.7% to 9,648.77 and Edano comments dragged the benchmark Nikkei down to 1.7% or 9,552 but recovered from the market low.

Stock Movers

Agilent Technologies, Inc. ((A)) surged 5.7% or $2.88 to $53.21 after the measurement company reported second quarter revenues soared 32% to $1.68 billion compared to $3.50 billion in the same period last year. Net income in the quarter increased of $200 million or 56 cents per diluted share compared to $108 million or 31 cents per share a year ago.

CA, Inc. ((CA)) tumbled 8.7% or $2.19 to $22.87 after the software company reported fourth quarter total revenues grew 4% to $1.13 billion compared to $1.07 billion in the same period last year. Net income in the quarter surged to $188 million or 37 cents per diluted share compared to $101 million or 19 cents per share a year ago period.

Dillard''s, Inc. ((DDS)) surged 16% or $7.81 to $56.40 after the apparel and home furnishing retailer reported second quarter total revenues rose to $1.50 billion compared to $1.48 billion in the same period last year. Net income in the quarter grew 5.2% to $76.7 million or $1.31 per diluted share compared to $48.8 million or $0.68 per share a year ago.

Nordstrom, Inc. ((JWN)) slumped 2.1% or $1.06 to $48.11 after the specialty retailer reported first quarter total revenues surged 12% to $2.23 billion compared to $2.09 billion in the same period last year. First quarter same-store sales increased 6.5%. Net earnings in the quarter increased to $145 million or 65 cents per diluted share compared to $116 million or 52 cents per share a year ago period.

NVIDIA Corporation ((NVDA)) plunged 6.9% or $1.42 to $19.08 after the visual computing technology provider reported first quarter total revenues fell 4% to $962.0 million compared to $1,001.8 million in the same period last year. Net income in the quarter fell to $135.2 million or 22 cents per diluted share compared to $137.6 million or 23 cents per share a year ago.

Yahoo! Inc ((YHOO)) declined 7% after the Internet company disclosed in a filing that it was informed after Hong Kong based Alibaba transferred ownership of an online payment service Alipay to a new company controlled by Alibab Chief Executive Jack Ma. Yahoo has a 43% stake in Alibaba.