U.S. Housing Starts Drop, Weekly Jobless Claims Rise

Arthi Gupta
16 Aug, 2012
New York City

U.S. indexes rose on positive comments from the Chinese premier. New housing construction in the U.S. fell but weekly jobless claims edged higher in July. Cisco net surged 55.6% in the fourth quarter.

[R]10:00 AM New York – U.S. indexes rose on positive comments from the Chinese premier. New housing construction in the U.S. fell but weekly jobless claims edged higher in July. Cisco net surged 55.6% in the fourth quarter.[/R]

U.S. indexes gained after hopes of additional measures in China rose after the latest comments from the Chinese premier Wen Jiabao.

U.S. housing starts fell but permits rose and weekly jobless claims rose more than anticipated.

European indexes edged lower in slow summer trading as most leaders and traders stay away for holiday. Euro zone annual inflation remained stable at 2.4% and UK retail sales rose 0.3% in July, data showed.

U.S. Housing Starts Drop

New home construction in the U.S. fell but construction permits soared in July, according to data released by the U.S. Commerce Department today.

Housing starts in July were at a seasonally adjusted annual rate of 746,000, a 1.1% drop from the revised June estimate of 754,000 but 21.5% above the rate of 614,000 in the month a year ago.

New building permits at a seasonally adjusted annual rate soared 6.8% in July to 812,000 from the revised June rate of 760,000 and 29.5% above the July 2011 estimate of 627,000.

U.S. Weekly Jobless Claims Rise

U.S. weekly jobless claims edged higher, according to a report released by the Labor Department on Thursday,

Seasonally adjusted initial claims increased 2,000 to 366,000 in the week ending August 11, from the previous week''s revised figure of 364,000. The 4-week moving average was 363,750, a decrease of 5,500 from the previous week''s revised average of 369,250.

Earnings Review

Cisco Systems, Inc. ((CSCO)), the computer networking gear maker reported fourth quarter net sales rose 4.4% to $11.7 billion. Net income for the quarter surged 55.6% to $1.9 billion or 36 cents per diluted share compared to $1.2 billion or 22 cents per share for the year-ago quarter.

For the year, net sales rose 7% to $46.1 billion and net income surged 24% to $8 billion or $1.49 per diluted share from the prior year.

Dollar Tree, Inc. ((DLTR)), the discount variety stores operator reported second quarter net sales grew 10.5% to $1.7 billion from the prior-year quarter. Comparable store sales increase slowed to 4.5% after rising at 4.7% in the month a year ago .Net income rose to $119.2 million or 51 cents per diluted share, from $94.9 million or 39 cents per share last year.

Sears Holdings Corporation ((SHLD)), the broadline retailer reported second quarter total revenues decreased to $9.47 billion from $10.14 billion last year. Net loss attributable to shareholders narrowed to $132 million or $1.25 per share compared to a loss of $146 million or $1.37 per share last year.

Wal-Mart Stores, Inc. ((WMT)), the largest retailer reported second quarter net sales rose 4.5% to $113.5 billion. Net income attributable to the company climbed 5.7% to $4.02 billion or $1.18 per diluted share compared to $3.80 billion or $1.09 per share in the year ago quarter.