U.S. Jobless Rate at 8.3%, Stocks Surge

Arthi Gupta
03 Aug, 2012
New York City

U.S. indexes gained after nonfarm payrolls rose more than estimated in July. CF Industries agreed to acquire Viterra

[R]9:45 AM New York – U.S. indexes gained after nonfarm payrolls rose more than estimated in July. CF Industries agreed to acquire Viterra’s interests in CFL for C$915 million. Procter & Gamble net surged 45%.[/R]

U.S. indexes shot up at the opening after the release of latest monthly unemployment data. The economy added more than expected jobs in July but unemployment rate also edged up.

In Europe markets opened higher a day after the European Central Bank showed willingness to buy more bonds of Italy and Spain and lower the debt yields but shifted the onus on politicians to act first and restructure economies faster. Markets accelerated gains after the release of retail sales in the region and better than expected unemployment data from the U.S.

Markets in Asia were mixed and focused on domestic earnings and economic news.

The seasonally adjusted purchasing managers'' index for the Chinese services sector fell to 55.6 in July from 56.7 in June.

U.S. Payrolls Climb

The Labor Department said non-farm payroll employment increased by 163,000 jobs in July following a downwardly revised increase of 64,000 jobs in June.

In a separate survey, the department estimated unemployment rate advanced to 8.3% in July from 8.2% in June.

CF Industries to Acquire Viterra Interests in CFL

CF Industries Holdings, Inc. entered into an agreement with Glencore International plc to acquire the 34% interests in Canadian Fertilizers Limited currently owned by Viterra, Inc. for C$915 million in cash.

Earnings Review

The Procter & Gamble Company ((PG)), the packaged consumer goods provider said fourth quarter net sales decreased 1% to $20.2 billion. Net earnings surged 45% to $3.63 billion or $1.24 per diluted share compared to $2.51 billion or 84 cents per share a year earlier.

Toyota Motor Corporation ((TM)), the Japan-based automobile maker reported first quarter total net revenues surged 59.9% annually to 5.5 trillion yen from 3.44 trillion yen. Net income attributable to the company soared to 290.35 billion yen or 91.68 yen per share from 1.16 billion yen or 0.37 yen per share last year.

Viacom Inc. ((VIAB)), the entertainment content company reported third quarter revenues declined 14% to $3.24 billion from last year. Net earnings attributable to Viacom fell to $534 million or $1.01 per share from $574 million or 97 cents per share last year.

WellCare Health Plans, Inc. ((WCG)), the managed care services provider reported second quarter revenue grew 22% to $1.81 billion from last year. Net income fell to $46.44 million or $1.06 per diluted share compared with $69.6 million or $1.61 per share a year ago.