U.S. Private Sector Adds 119,000 Jobs, MasterCard Net Rises 21%

Arthi Gupta
02 May, 2012
New York City

U.S. indexes edged lower after private employment rose less than estimated in April and March estimate was lowered. Wolverine and private equity firms agreed to acquire the parent of Payless ShoeSource for $2 billion. Ascena Retail agreed to buy Charming Shoppes for approximately $890 million.

[R]9:20 AM New York – U.S. indexes edged lower after private employment rose less than estimated in April and March estimate was lowered. Wolverine and private equity firms agreed to acquire the parent of Payless ShoeSource for $2 billion. Ascena Retail agreed to buy Charming Shoppes for approximately $890 million.[/R]

U.S. indexes edged lower after disappointing private sector employment data for April.

In earnings news, MasterCard reported quarterly earnings rose 21% and Comcast Corp said net earnings rose 30% and CVS Caremark earnings increased 20%.

Auto sales in April were mixed and the sales at GM and Ford fell in the month from a year ago.

The European indexes gained modestly despite the latest unemployment rate increase across the region. In addition, manufacturing activities in Spain and Italy contracted. Asian stocks gained with China''s manufacturing contracting for a sixth month in April.

The final HSBC China Manufacturing Purchasing Managers Index rose to 49.3 in April compared with 48.3 in March.

U.S. Private Sector Employment Up

Private sector employment in the U.S. increased less than estimated in April, according to a report released by payroll processor Automatic Data Processing today,

ADP said that private sector employment increased by 119,000 jobs in April following a downwardly revised increase of 201,000 jobs in March.

Wolverine Consortium to Acquire Collective Brands

Collective Brands, Inc. will be acquired by a consortium of Wolverine Worldwide, Blum Capital Partners and Golden Gate Capital for $21.75 per share in cash or a total of approximately $2 billion, including the assumption of debt.

The company expects the transaction to generate earnings per share accretion in the ranges of $0.25 to $0.40 in 2013, and $0.50 to $0.70 in fiscal 2014.

Ascena Retail to Buy Charming Shoppes

Ascena Retail Group, Inc. agreed to acquire Charming Shoppes in a cash transaction valued at approximately $890 million or for $7.35 per share.
U.S. Auto Sales

General Motors and Ford reported lower U.S. vehicles sales in April but Chrysler and Japanese automaker Toyota Motor Corp. sales improved.

GM said monthly domestic sales declined 8.2% from a year ago to 213,387 units from 232,538 units in the same month last year. Ford sales declined 5% to 180,350 vehicles from a year ago.

Chrysler reported that its U.S. vehicle sales for April increased 20% to 141,165 units from 117,225 units in the same month last year.

Toyota Motor Sales, U.S.A., Inc., a unit of Toyota Motor Corp. said its U.S. vehicle sales for April rose 11.6% to 178,044 units from 159,540 units in April last year.

Earnings Review

Comcast Corporation ((CMCSA)), the cable network reported first quarter revenues rose 22.7% to $14.88 billion from $12.13 billion in the prior year quarter. Net income in the quarter rose 29.8% to $1.224 billion or 45 cents per diluted share compared to net income of $943 million or 34 cents per share in the same quarter last year.

CVS Caremark Corporation ((CVS)), the pharmacy health care provider said first quarter net revenues increased 19.9% to $30.8 billion from $25.7 billion in the prior-year quarter. Net income in the quarter climbed 8.8% to $776 million or 59 cents per diluted share compared to net income of $713 million or 52 cents per share a year ago.

Devon Energy Corporation ((DVN)), the independent natural gas and oil producers said first quarter total revenues grew 16.3% to $2.5 billion from $2.15 billion in the prior-year quarter. Net earnings in the quarter fell 5.5% to $393 million compared to net earnings of $416 million last year. Earnings per diluted share were 97 cents, flat with the prior-year quarter.

MasterCard Inc. ((MA)), the global payments and technology company reported first quarter net revenue gained 17% to $1.76 billion, from $1.50 billion for the same period in 2011. Net income for the period rose 21% to $682 million or $5.36 per diluted share compared to net income of $562 million or $4.29 per share a year ago.

Time Warner Inc. ((TWX)), the media and entertainment company said first quarter revenues rose 4.5% to $6.98 billion from $6.68 billion in the year-ago quarter. Net income for the period fell 10.7% to $583 million compared to net income of $653 million a year earlier, while quarterly earnings per diluted share remained unchanged at 59 cents.