U.S. Weekly Jobless Claims Rise, General Motors Net Falls

Arthi Gupta
02 Aug, 2012
New York City

U.S. indexes gained after weekly jobless claims rose less than estimated. The European Central Bank left its benchmark interest rate unchanged at 0.75%. Monsanto won $1 billion in infringement trial against DuPont. General Motors quarterly net declined 40%.

[R]10:00 AM New York – U.S. indexes gained after weekly jobless claims rose less than estimated. The European Central Bank left its benchmark interest rate unchanged at 0.75%. Monsanto won $1 billion in infringement trial against DuPont. General Motors quarterly net declined.[/R]

U.S. indexes gained after weekly jobless claims rose less than estimated and market looked ahead to comments from the European Central Bank’s president. General Motors fell in the second quarter but exceeded expectations.

European indexes edged lower after the European Central Bank left its benchmark interest rate unchanged at record low of 0.75% and deposit rate at zero and the marginal lending facility rate at 1.50%.

The Bank of England maintained the asset purchase program at £375 billion and the key interest rate at a historic low of 0.5%.

Asian markets traded mixed and awaited the rate decisions in Europe.

U.S. Weekly Jobless Claims Rise

Seasonally adjusted initial claims in the U.S. increased 8,000 to 365,000, from the previous week''s revised figure of 357,000 in the week ending July 28, the U.S. Labor Department said today.

The 4-week moving average was 365,500, a decrease of 2,750 from the previous week''s revised average of 368,250.

Monsanto Wins Infringement Trial against DuPont

Monsanto Company won a patent infringement trial against DuPont Pioneer, a wholly owned subsidiary of DuPont. The trial had centered on DuPont''s unauthorized use of Monsanto''s patented Roundup Ready technology.

The jury awarded damages of $1 billion to Monsanto based on DuPont''s willful infringement of its technology and the improper head start that DuPont obtained when it infringed Monsanto''s technology rights.

Corporate Review

DirecTV Inc. ((DTV)), the digital television entertainment provider said second quarter revenues rose 9% to $7.22 billion. Net income attributable to the company climbed 1% to of $711 million or $1.09 per share compared with $701 million or 91 cents per share last year.

General Motors Company ((GM)), the global auto manufacturer reported second quarter net revenue fell to $37.6 billion compared with $39.4 billion in the second quarter of 2011. Net income declined to $1.5 billion or 90 cents per diluted share from $2.5 billion or $1.54 per share in the year ago quarter.

Knight Capital Group said that the recent electronic malfunctions in its trading system that caused price swings in 178 stocks in the week are likely to cost institutional brokerage firm $400 million.

Teradata Corporation ((TDC), the analytic data solutions provider reported second quarter revenue rose 14% to $665 million. Net income for the quarter climbed to $112 million or 65 cents per diluted share from $103 million or 60 cents per share, in the second quarter of 2011.

The Hartford Financial Services Group Inc. ((HIG)), the insurance and financial services provider said second quarter net loss swung to $101 million or 26 cents per diluted share compared to net income of $33 million or 5 cents per share last year.