U.S. Jobless Claims Drop, Exxon Net Drops

Arthi Gupta
26 Apr, 2012
New York City

U.S. indexes declined after new unemployment claims fell 1,000 to 388,000. H&R Block planned to eliminate 350 positions and close 200 underperforming offices. Colgate-Palmolive earnings improved 3% in the quarter but Exxon Mobil quarterly net fell.

[R]9:45 AM New York – U.S. indexes declined after new unemployment claims fell 1,000 to 388,000. H&R Block planned to eliminate 350 positions and close 200 underperforming offices. Colgate-Palmolive earnings improved 3% in the quarter but Exxon Mobil quarterly net fell.[/R]

U.S. indexes dropped and the new unemployment claims fell 1,000 to 388,000 in the last week and Exxon Mobil quarterly net dropped on higher exploration investment.

Comments from the Federal Reserve Chairman Bernanke yesterday did nothing to boost investor sentiment. The Fed said interest rates would be at near-zero levels until 2014 and there was no hint of additional quantitative easing. Fed also lowered its estimate of economic growth.

The European indexes pared gains after the euro area sentiment fell more than estimated in April and the latest batch of earnings showed mixed results from Royal Dutch Shell, Barclays, Deutsche Bank, Bayer and Volkswagen.

Italy sold 6-month bills at higher borrowing costs and market jitters continue to push sovereign bond yields higher in the euro zone.

In Asian trading, the benchmark indexes in Japan added 0.2% and in Hong Kong advanced 0.6% but in India fell 0.4%.

U.S. Initial Jobless Claims Fall

Seasonally adjusted new unemployment claims for the week ending April 21 fell 1,000 to 388,000 from the previous week''s revised level of 389,000, according to a report released by the U.S. Department of Labor today.

H&R to Cut Staff

H&R Block, Inc., the largest U.S. tax preparer plans to eliminate approximately 350 full-time positions throughout its Kansas City headquarters and nationwide field organization and close approximately 200 under performing company-owned offices.

The company expects to realize net annualized savings of $85 million to $100 million by the end of fiscal year 2013.

Earnings Review

Colgate-Palmolive Company ((CL)), the consumer products company reported first quarter sales grew 5.3% to $4.20 billion from $3.99 billion reported in the same quarter last year. Net income for the quarter climbed 3% to $593 million or $1.23 per diluted share compared to net income of $576 million or $1.16 per share in the prior-year quarter.

Exxon Mobil Corporation ((XOM)), the energy company stated revenue rose 8.8% to $124.05 billion from last year’s revenue of $114 billion. Net earnings in the quarter fell 11% to $9.45 billion or $2 per diluted share compared to net earnings of $10.65 billion or $2.14 per share, a year earlier.

Starwood Hotels & Resorts Worldwide, Inc. ((HOT)), the hotel chain operator reported first quarter revenues rose 32.3% to $1.72 billion from $1.30 billion last year. Net income in the quarter quadrupled to $128 million or 65 cents per diluted share compared to net income of $28 million or 14 cents per share in the first quarter of 2011.

Time Warner Cable Inc. ((TWC)), the provider of video, high-speed data and voice services reported first quarter total revenues grew 6.4% to $5.13 billion from $4.83 billion a year ago. Net income in the quarter advanced 17.5% to $382 million or $1.20 per diluted common share compared to net income of $325 million or.93 cents per diluted common share, for the first quarter of 2011.

Whirlpool Corporation ((WHR)), the manufacturer and marketer of home appliances reported first quarter sales edged down 1% to $4.35 billion compared to $4.4 billion reported in the first quarter of 2011. Net earnings in the quarter declined 46% to $92 million or $1.17 per diluted share compared to net earnings of $169 million or $2.17 per share reported during the same riod last year.