U.S. Home Prices Rise, Consumer Confidence Declines

Arthi Gupta
25 Oct, 2011
New York City

U.S. indexes edged lower after disappointing earnings and economic data. U.S. home prices rose in August and consumer confidence deteriorated in October. Ecolab net declined 11.4%.

[R]10:45 AM New York – U.S. indexes edged lower after disappointing earnings and economic data. U.S. home prices rose in August and consumer confidence deteriorated in October. Ecolab net declined 11.4%.[/R]

U.S. indexes declined after disappointing economic data and earnings.

European indexes traded sideways in anticipation of final details of the bank recapitalization plan, Greek bond crisis and the process and the amount of leverage in the rescue fund.

Investors are increasingly worried that the European policymakers and leaders are lagging market expectations and situation may spin out of control. Italian and Spanish bond yields were on the rise as Italy may become the next focus of speculators.

The Spanish Treasury issued €3.47 billion of bonds, but yields rose significantly compared with the last auction.

Germany''s forward looking consumer sentiment index rose unexpectedly to 5.3 for November from 5.2 in October; according to a survey carried out by the market research group GfK.

French consumer sentiment indicator rose to 82 in October from 80 in September, the statistics office Insee said.

Asian stocks traded mixed and Australia requested four largest banks to prepare for emergency plan beyond government funding in the event of the next financial crisis.

Thailand floods are expected to flow to Bangkok and the government raised the death toll to 366 and at least 700,000 employees are not able to access 1,400 factories in the seven industrial estates.

U.S. Home Prices Rise

Home prices in major U.S. metropolitan areas rose slightly in August, according to a report released by Standard & Poor''s today.

The S&P/Case-Shiller 20-City Composite Home Price Index edged up 0.2% in August following a 0.9% increase in July.

U.S. Consumer Confidence Declines

Consumer confidence in the U.S. deteriorated in October, according to a report released by the Conference Board on Tuesday, dropping to its lowest level since March of 2009.

The Conference Board said its consumer confidence index dropped to 39.8 in October from a revised 46.4 in September.

Earnings Review

Ecolab Inc. ((ECL)), the sanitation supply company reported third quarter net sales rose 11.5% to $1.74 billion from $1.56 billion in the prior year quarter. Net income in the quarter declined 11.4% to $154.3 million or 65 cents per diluted share compared to net income of $174.2 million or 74 cents per share in the same quarter last year.

Illinois Tool Works Inc. ((ITW)), the diversified industrial manufacturer said third quarter operating revenues increased 16.2% to $4.581 billion from $3.941 billion in the prior year. Net income in the quarter increased 20.3% to $507.62 million or $1.04 per diluted share compared to net income of $422.03 million or 84 cents per share in the prior year.

Netflix, Inc. ((NFLX)), the rental and streaming services provider reported third quarter revenues surged 49% to $821.8 million from $553.2 million in the year-ago quarter. Net income in the quarter rose 63% to $62.5 million or $1.16 per diluted share compared to net income of $38.0 million or 70 cents per share last year.

In the U.S. the company lost net 0.81 million subscribers in the quarter, compared to 1.80 million net additions in the year-ago quarter.

Xerox Corporation ((XRX)), the printer and copier maker said third quarter total revenues increased 3% to $5.58 billion from $5.43 billion a year ago. Net income in the quarter soared 28% to $320 million or 22 cents per diluted share compared to net income of $250 million or 17 cents per share a year ago.