Jobless Claims Nearly Flat, Bank of America Net Plunges

Arthi Gupta
19 Apr, 2012
New York City

U.S. indexes fluctuated after jobless claims dropped 2,000 to 386,000. Investors focused on the Spanish and French debt sale. Bank of America net plunged 68%.

[R]9:55 AM New York – U.S. indexes fluctuated after jobless claims dropped 2,000 to 386,000. Investors focused on the Spanish and French debt sale. Bank of America net plunged 68%.[/R]

U.S. indexes traded sideways after weekly jobless claims showed a modest declined of 2,000 and mixed earnings reports.

The European indexes edged higher after the Spanish and French bond auctions. Germany reaffirmed its forecast for a structural public deficit of less than 0.5% of gross domestic product this year.

Nokia Corp., the Finnish handset maker reported a hefty loss for the first quarter on fall in sales and the company lagged in releasing smart phones.

Asian markets traded mixed.

Japan merchandise trade deficit was 82.55 billion yen in March, following the 29.4 billion yen surplus in February, the Ministry of Finance said today.

Exports rose 5.9% on year in March, following the 2.7% contraction in February. Imports climbed an annual 10.5% in March after rising 9.2% in February.

U.S. Jobless Claims Fall

Initial jobless claims for the week ended April 14 on a seasonally adjusted basis fell 2,000 to 386,000 compared to the previous week''s revised 388,000 claims, according to a report released by the U.S. Labor Department today.

The four-week moving average rose to 374,750 from the previous week''s revised average of 369,250.

Earnings Review

Bank of America Corp. ((BAC)), the bank holding company reported first quarter total revenue declined 17% to $22.28 billion compared with $26.88 billion a year earlier. Net income in the quarter plunged 68% to $653 million or 3 cents per diluted share compared to net income of $2.05 billion or 17 cents per share a year ago.

eBay Inc. ((EBAY)), the online auctioneer said first quarter revenues grew 29% to $3.3 billion from $2.55 billion a year ago quarter. Net income in the quarter increased 20% to $570 million or 44 cents per diluted share compared to net income of $476 million or 36 cents per share for the year-ago quarter.

EI DuPont de Nemours & Co. ((DD)), the chemical company said first quarter net sales rose 12%to $11.23 billion from $10.03 billion last year. Net income in the quarter grew 4.2% to $1.49 billion or $1.57 per share compared to net income of $1.43 billion or $1.52 per share the prior year.

Nokia Corporation ((NOK)), the Finnish mobile handset maker reported first quarter net sales declined 29% to €7.4 billion from €10.4 billion in the prior year. Net loss in the quarter swung to €929 million or 25 cents per share compared to a profit of €344 million or 9 cents per share in the prior year.

VMware, Inc. ((VMW)), the virtualization software maker said first quarter revenues increased 25.1% to $1.06 billion from $843.72 million in the same quarter last year. Net income for the quarter rose 52% to $191 million or 44 cents per diluted share compared to net income of $126 million or 29 cents per diluted share, for the first quarter of 2011.