Humana Net Drops 22%

Elena
01 May, 2006
New York City

U.S. stock futures predicted a positive market opening on personal spending and income data. In earnings news, food distributor Sysco Corp. announced Q3 net income drop of 30 cents a share from 34 cents a year ago, missing analyst estimates. Par Pharmaceutical reported Q1 earnings rise of 24 cents per share on revenue growth, meeting expectations. Humana reported net income for Q3 of 40 cents per share, down from 65 cents per share last year, despite 39% revenue growth.

[R]9:00 AM Stock futures indicated a positive market opening.[/R]
U.S. stock futures were poised to a higher start of Monday session, awaiting government report on consumer spending and clues on the impact of high energy prices on the key economic index. Last week stocks closed generally weak as disappointing earnings from Microsoft hurt tech stocks and oil prices climbed back on growing tensions over Iran’s nuclear program. However, stock markets received some support on hope that the fed Reserve will stop raising interest rates. On Monday investors may also focus on the outlook for interest rates as Federal Reserve Bank of Chicago President Michael Moskow, and the Federal Reserve Bank of Atlanta President Jack Guynn are both due to speak.

In corporate news, Boeing Co. ((BA)) may be in focus on report that the company is in advanced discussions to buy aviation parts supplier Aviall Inc. ((AVL)). Microsoft Corp. ((MSFT)) shares are also expected to be in focus after the sharp 11.5%-drop on Friday. Shares of Xerox Corp. ((XRX)) may draw attention on speculation that its stock may be undervalued compared to its peers. On the economic news front, the Commerce Department is due to release March personal income and consumption data at 8:30 a.m. as well as March construction spending at 10 a.m. The Institute for Supply Management will release its April manufacturing index at 10 a.m. Standard & Poor''s 500 futures were up 2.3 points, above fair value. Dow Jones industrial average futures were not yet active, and Nasdaq 100 futures were up 4.5 points.

[R]Higher-than-expected consumer spending and income growth.[/R]
Monday morning, the Department of Commerce released its report on personal income and spending in the month of March. The report showed strong growth in both income and spending. The Commerce Department said that personal spending rose 0.6 percent in March after an upwardly revised 0.2 percent increase in February. Economists had expected spending to increase by 0.4 percent compared to the 0.1 percent increase originally reported for February. Personal income also saw a significant increase, rising 0.8 percent in March following an unrevised 0.3 percent increase in February. The increase came in well above economist estimates of a 0.4 percent increase. The report also showed that consumer prices, excluding food and energy, rose 0.3 percent in March, the fastest pace of growth since October of 2005. Core prices rose at an annual rate of 2.0 percent in March.

Crude oil prices jumped nearly $1 after a refinery fire in Italy added to global supply concerns. Light sweet crude June delivery gained 59 cents to $72.47 a barrel. London Brent rose 66 cents to $72.68. Gold futures surged to 25-year highs, as weaker dollar and worries about Iran’s nuclear program helped increase the appeal of the precious metal. Gold for June delivery rose $5.50 to $660 per troy ounce. Silver July delivery gained 3 cents to $13.92, following a rally Friday as the first silver exchange-traded fund was launched. Copper added about 10 cents to trade at $3.434 a pound. The U.S. dollar traded mixed in light European trading. The euro traded at $1.2614, down from $1.2636. The dollar bought 113.26, down from 113.83 yen. The British pound was quoted at $1.8250, up from $1.8239.

Tyson Foods Inc, ((TSN)), chicken and beef producer, reported a Q2 loss of 37 cents a share, reversing from a year-ago profit of $ 21 cents a share on sales decline, missing analyst expectations for company to post a loss, of 25 cents a share.

Gevity HR Inc., ((GVHR)), provider of employment management software, ported Q1 earnings of 30 cents a share, up from a profit of $7.5 million, or 26 cents a share a year-earlier on 10.3% revenue growth. Q1 includes 2 cents a share in stock option expensing. The company added that its total number of client employees totaled 136,200, an rise of 8.6% from the end of last year's Q1. The company missed analysts’ estimate for a profit by a penny.

Sysco Corp, ((SYY)), food distributor, reported that Q3 income dropped to 30 cents a share, from 34 cents a year earlier. If not for stock-option expense, earnings would have been 34 cents a share, the company said. Sales for Q3 advanced to $8.14 billion from $7.44 billion in Q3 last year. The company missed analysts’ forecasts for earnings of 32 cents a share.

Par Pharmaceutical Cos, ((PRX)), manufacturer of generic drugs, reported Q1 net income of 24 cents a share, up from 6 cents, earned in the same period a year ago on revenue growth. The company met analysts’ forecasts for earnings of 24 cents a share. Par Pharma''s growth came even as it continued to make investments in building an organization around its first branded product, Megace ES.

FTD Group Inc, ((FTD)), florist, reported that it reversed to Q3 net income of 26 cents a share, from a loss of $1.14 a share a year-earlier on revenue growth, beating analysts’ estimates for earnings of 23 cents a share. on sales of $125 million.


[R]8:15AM European markets are closed Monday for the May Day holiday.[/R]

[R]7:30AM Nikkei closes a notch up, bullion prices cross the $660.00 an ounce level.[/R]
In Japan the Nikkei 225 Average closed at 16,921.51, 15.29 points higher. Investors denied the yen impulse to breach the level of 113.84 yen to dollar. Australia''s S&P/ASX 200 Index went up 1% in intraday, putting up 50.4 points to 5,309.20, as mining and natural resource issues added up gains in bullion prices that reached above the $660.00 an ounce level. Shares in New Zealand fell slightly. Elsewhere, leading stocks around the region were closed for a public holiday. Sony Corp. went down 5.14%, while Toshiba Corp reversed the trend to gain as much as 2.9% after posting a 16% jump in profit to 41.69 billion yen last week. Both Toyota motor and Honda Motor went slightly up in automotive stocks. Mazda Motor advanced 1.2% after Friday''s announcement that profits hit a record high in fiscal 2005 on strong vehicle sales worldwide.