U.S. Personal Income and Spending Rises 0.4%; Indexes Up

Arthi Gupta
27 May, 2011
New York City

U.S. indexes edged higher after personal income and spending rose 0.4% in April. The European market indexes traded higher as the sentiment in the euro-zone declined. Royal Bank of Canada quarterly revenues and net improved.

[R]10:30 AM New York – U.S. indexes edged higher after personal income and spending rose 0.4% in April. The European market indexes traded higher as the sentiment in the euro-zone declined. Royal Bank of Canada quarterly revenues and net improved.[/R]

The European market indexes advanced as the sentiment in the euro-zone declined and M3 money supply growth slowed in April. The indexes across the region declined on the ongoing worries related to Greece but staged a reversal after the U.S. market opened.

The major Asian markets traded mixed with the Japan and China market indexes retreating, while most other markets closing higher.

U.S. Personal Income Rises

April personal income rose 0.4% and disposable personal income increased 0.3%. Personal consumption expenditure increased 0.4% in the month. In March personal income rose 0.4%, DPI increased 0.4% and PCE increased 0.5% on revised estimate.

SEC Charges Former Nasdaq Executive

A former managing director of the Nasdaq stock market pleaded guilty for his participation in an insider trading scheme and obtaining illicit trading profits of more than $640,000 during a three-year period, federal government officials said on Thursday.
The Securities and Exchange Commission charged Donald Johnson with insider trading, in which he purchased and sold stock in Nasdaq-listed companies based on material, non-public information he obtained in his capacity as a Nasdaq executive.

PayPal Sues Google

eBay, Inc.''s online payment business PayPal sued Google Inc. shortly after the Internet search giant unveiled its new payment application called ''GoogleWallet'' that allows shoppers to use their mobile phone as a veritable purse.

PayPal said it filed a lawsuit against Google and two former PayPal executives who currently work with Google to protect its trade secrets.

Toyota, Honda Worldwide Production Drops

Toyota Motor Corp. said its April worldwide production declined 48.1% to 346,297 units from last year. Total sales in Japan reached 62,965 units, down 61.3% from the previous year.

Total production in Japan fell 74.5% to 79,341 units from a year ago. Total overseas production was 266,956 units, down 25% from a year ago.

Honda Motor Co., Ltd. said its April worldwide total production totaled 138,498 units, down 52.9% from last year.

Worldwide production in Japan for the same month fell 81.0% to 14,168 units from a year ago. Worldwide production outside of Japan declined 43.5% to 124,330 units from last year.

Samsung Sells Solar Cell Business

South Korea''s Samsung Electronics Co. Ltd. stated that it has decided to sell its solar cell business to affiliate Samsung SDI for 160.8 billion South Korean won or about $0.15 billion.

MGM China Prices IPO

MGM China Holdings Ltd., the casino joint venture between MGM Resorts International and Macau-based Pansy Ho Chiu-King announced the pricing of its initial public offering of 760 million shares at 15.34 Hong Kong dollars.

MGM China expects to get net proceeds of HK$11.1 billion or about $1.4 billion from the offering.

Earnings Review

Marvell Technology Group Ltd. ((MRVL)), the chipmaker said first quarter net revenue fell 6% to $802.40 million from $855.60 million in the same quarter last year. Net income in the quarter dropped 29% to $146.9 million or 22 cents per diluted share compared to net income of $205.8 million or 30 cents per share for the year-ago quarter.

Mentor Graphics Corporation ((MENT)), the provider of software and hardware design solutions reported first quarter revenues rose 27.4% to $230.04 million compared to $180.58 million a year ago. Net loss in the quarter narrowed 90% to $2.35 million or 2 cents per diluted share compared to a net loss of $23.03 million or 22 cents per share a year ago.

Royal Bank of Canada ((RY, RY.TO)), the financial services firm reported second quarter total revenues grew 2.3% to C$7.13 billion from C$6.97 billion in the same quarter last year. Net income in the quarter improved 14.3% to C$1.44 billion, from C$1.26 billion in the previous year. On a per share basis, earnings were C$1, higher than C$0.88 per share in the prior-year quarter.