U.S. Weekly Jobless Claims, Productivity Drop

Arthi Gupta
01 Sep, 2011
New York City

U.S. indexes traded sideways after weekly jobless claims fell 12,000 to 409,000 and nonfarm business sector labor productivity decreased at a 0.7% annual rate in the second quarter. IBM agreed to acquire Canada-based Algorithmics for $387 million.

[R]9:35 AM New York – U.S. indexes traded sideways after weekly jobless claims fell 12,000 to 409,000 and nonfarm business sector labor productivity decreased at a 0.7% annual rate in the second quarter. IBM agreed to acquire Canada-based Algorithmics for $387 million.[/R]

U.S. indexes traded mixed after mixed economic data.

European indexes slumped after manufacturing activity in the euro zone contracted in August. The final Markit Purchasing Managers'' Index fell to 49 in August from 50.4 in July.

Asian markets traded higher after manufacturing activity in China expanded for the first time in five months. China''s Purchasing Managers Index rose to 50.9 in August from 50.7 in July, the China Federation of Logistics and Purchasing said. Latest data showed new export orders fell 2.1% in August.

U.S. Weekly Jobless Claims Drop

New U.S. unemployment claims fell 12,000 to 409,000 in the week ended August 27th from the previous week''s revised figure of 421,000, according to data released by the U.S. Labor Department today.

The claims declined after union workers ended a strike at the telecom carrier Verizon.

The previous week''s numbers were upwardly revised from initial figures that had shown 417,000 new claims.

The preliminary insured unemployment rate in the week ending August 20 was 3% unchanged from the prior week''s revised rate.

U.S. Productivity in Q2 Falls at 0.7%

Nonfarm business sector labor productivity decreased at a 0.7% annual rate during the second quarter of 2011. Output increased 1.3% and hours worked increased 2% in the second quarter.

IBM to Acquire Algorithmics

International Business Machines Corp. agreed to acquire Canadian risk analytics firm Algorithmics Inc., indirectly owned by the French holding company Fimalac, for $387 million.

This acquisition expands IBM''s business analytics capabilities in the financial services industry.

Earnings Review

Ciena Corporation ((CIEN)), the telecommunications networking equipment maker reported third quarter revenues grew 11.7% to $435.31 million from $389.67 million in the same quarter last year. Net loss in the quarter narrowed 71.4% to $31.45 million or 33 cents per diluted share compared to net loss of $109.86 million or $1.18 per share reported last year.

The Cooper Companies, Inc. ((COO)), the contact lens maker reported third quarter revenues increased 19% to $351.39 million from $295.64 million in the comparable quarter last year. Net income in the quarter fell 4% to $38.1 million or 78 cents a diluted share compared to net income of $39.7 million or 86 cents per share in the last year period.

UTi Worldwide Inc. ((UTIW)), the non-asset-based supply chain services and solutions company said second quarter revenues climbed 13% to $1.3 billion from last year''s $1.15 billion. Net profit in the quarter increased 21% to $22.9 million, or 22 cents per diluted share compared to net profit of $18.9 million, or 19 cents per share in the year-ago quarter.