U.S. Weekly Jobless Claims Rise; Trade Deficit Narrows

Arthi Gupta
09 Jun, 2011
New York City

U.S. indexes traded sideways after weekly jobless claims rose 1,000 to 427,000 and trade deficit unexpectedly narrowed in April. Exxon Mobil acquired natural gas assets for $1.69 billion.

[R]9:05 AM New York – U.S. indexes traded sideways after weekly jobless claims rose 1,000 to 427,000 and trade deficit unexpectedly narrowed in April. Exxon Mobil acquired natural gas assets for $1.69 billion.[/R]

U.S. indexes traded sideways after weekly jobless claims rose and trade deficit unexpectedly narrowed in April.

Asian markets traded mixed on global economic worries. Indexes in Europe edged higher after the European Central Bank kept its key interest rate unchanged at 1.25%.

U.S. Weekly Jobless Claims Rise

First time claims for unemployment benefits unexpectedly showed a modest increase in the week ended June 4, according to a report released by the U.S. Labor Department today.

The report showed that initial jobless claims edged higher by 1,000 to 427,000 from the previous week''s revised figure of 426,000. The preliminary insured unemployment rate in the week ending May 28 was 2.9% from the prior week''s unrevised rate of 3.0%.

U.S. Trade Deficit Narrows

The U.S. Commerce Department released a report today showing that the trade deficit unexpectedly narrowed in the month of April.

The report showed that the trade deficit narrowed to $43.7 billion in April from a revised $46.8 billion in March.

The unexpectedly narrower deficit came as the value of exports rose 1.3% to $175.6 billion, while the value of imports fell 0.4% to $219.2 billion.

Exxon Mobil Buys Natural Gas Assets

Exxon Mobil Corp. last week bought two privately-held companies having reserves in the gas-rich Marcellus shale, reports said. Exxon bought Phillips Resources Inc. and TWP Inc., for $1.69 billion, adding to its gas holdings.

The two companies acquired by Exxon together held 228 billion cubic feet of gas reserves. Through the deal, Exxon will gain access to 317,000 acres in the Marcellus shale.

WellPoint Acquires CareMore Health Group

WellPoint, Inc., the health insurer, entered into an agreement to acquire CareMore, a senior focused health care delivery program that includes Medicare Advantage plans and clinics in California, Arizona and Nevada markets.

Financial terms of the deal were not disclosed.

China Takes Top Spot as Energy Consumer

China became the world’s largest energy consumer in 2010 overtaking the USA during a year which saw the rebound in the global economy drive consumption higher and at a rate not seen since the aftermath of the 1973 oil price shocks, according to data from the 60th annual BP Statistical Review of World Energy.

3M Buys Advanced Chemistry & Technology

3M Co. entered into an agreement to acquire Advanced Chemistry & Technology Inc., a manufacturer of quick cure, light-weight polysulfide sealants for aerospace applications. Terms of the transaction were not disclosed.

Earnings Review

The J. M. Smucker Company ((SJM)), the jelly and coffee maker said fourth quarter net sales increased 11.2% to $1.19 billion from $1.07 billion in the previous year. Net income in the quarter declined 21.3% to $94.88 million or 82 cents per diluted share compared to net income of $120.61 million or $1.01 per share last year.

Pall Corporation ((PLL)), the diversified products company reported third quarter revenues grew 15.2% to $709.8 million from $616 million last year. Net profit in the quarter rose 1.9% to $71 million or 60 cents per diluted share compared to net profit of $69.7 million or 58 cents per share in the prior year.

Texas Instruments Incorporated ((TXN)), the semiconductor company lowered its earnings as well as revenue outlook for the second quarter in a scheduled update. The company now estimates earnings per share of $0.51 to $0.55, and revenue of $3.36 billion to $3.50 billion.

The Men''s Wearhouse, Inc. ((MW)), the men''s apparel retailer said first quarter total net sales rose 22.6% to $580.38 million from $473.47 million in the same quarter last year. Net income in the quarter surged 101.5% to $27.4 million or 52 cents per diluted share compared to net income of $13.6 million or 26 cents per share for the year-ago quarter.