U.S. Weekly Jobless Claims Rise; Synopsys Acquires Magma

Arthi Gupta
01 Dec, 2011
New York City

The U.S. indexes slid after weekly jobless claims rose to 402,000. Spain and France completed the auctioned of

[R]9:35 AM New York – The U.S. indexes slid after weekly jobless claims rose to 402,000. Spain and France completed the auctioned of €8.25 billion of sovereign bonds. BP agreed to sell its Canadian natural gas liquids business to Plains Midstream Canada for $1.67 billion. Costco sales grew 11% in November.[/R]

U.S. indexes slid in early trading after new claims for unemployment benefits rose unexpectedly.

European indexes traded mixed after a strong rally yesterday. Spain and France auctioned €8.25 billion of bonds today at a slightly favorable yield and demand at auction was better than expected.

Spain sold €3.75 billion of five-year bonds due January 2017 at an average yield of 5.544% compared to 4.848% in a previous auction of notes with a similar maturity held on November 3.

The French treasury agency sold a total of €4.346 billion of bonds, at its monthly auction and raised €595 million in 6-year bonds at a rate of 2.42% and sold €1.57 billion of 10-year bonds at an average yield of 3.18%, lower from 3.22% at the previous November 3 auction.

France also sold €1.1 billion of 5-year bond yielding 3.65%, down from 3.77% at the auction last month. The 30-year bond of €1.08 billion yielded only 3.94%, up from the 3.72% at the last auction in September.

Asian markets traded higher extending yesterday’s gains.

U.S. Weekly Jobless Claims Up

New claims for unemployment benefits rose unexpectedly last week, rising above the key 400,000 mark, according to data released by the U.S. Labor Department today.

New claims for unemployment rose to 402,000 for the week ended November 26, an increase of 6,000 from the previous week''s revised level of 396,000.

BP Agrees to Sell Canadian NGL Business

BP agreed to sell its Canadian natural gas liquids business to Plains Midstream Canada ULC, a wholly-owned subsidiary of Plains All American Pipeline, L.P. for a total consideration of $1.67 billion in cash.

Synopsys to Acquire Magma Design

Synopsys agreed to acquire Magma, the provider of chip design software for $7.35 per Magma share in cash, resulting in a transaction value of approximately $507 million net of cash and debt acquired.

Earnings Review

Aeropostale, Inc. ((ARO)), the casual apparel retailer said third quarter total sales declined 1% to $596.5 million from $602.8 million a year ago. Net income in the quarter slumped 59% to $24 million or 30 cents per diluted share compared to net income of $58.5 million or 63 cents per share last year.

Costco Wholesale Corp. ((COST)), the membership warehouse operator reported net sales for the four weeks ended November 27 increased 11% to $7.51 billion from $6.78 billion in the same period last year and comparable store sales increased 9%.

Guess?, Inc. ((GES)), the international fashion house said third quarter total net revenue rose 4.7% to $642.80 million from $613.90 million in the same quarter last year. Net income in the quarter fell 4% to $66.3 million or 71 cents per diluted share compared to net income of $69.1 million or 75 cents per share for the year-ago quarter.

Synopsys, Inc. ((SNPS)), the electronic design automation company reported fourth quarter revenues rose 4% to $390.5 million from $375.5 million in the year-ago quarter. Net income in the quarter surged 57% to $39.9 million or 27 cents per diluted share compared to net income of $25.4 million or 17 cents per share in the year-ago period.

Talbots, Inc. ((TLB)), the women''s apparel retailer reported third quarter net sales decreased 6.6% to $279.46 million from $299.1 million. Net loss in the quarter was $22.04 million or 32 cents per diluted share compared to a profit of $17.05 million or 24 cents per share last year.