U.S. Jobless Rate Drops to 7.7%, Nonfarm Payrolls Rise

Arthi Gupta
07 Dec, 2012
New York City

U.S. indexes traded down on global economic slowdown worries. Yara agreed to acquire Bunge

[R]8:50 AM New York – U.S. indexes traded down on global economic slowdown worries. Yara agreed to acquire Bunge’s Brazilian fertilizer business for $750 million. The Asian Development Bank lowered developing Asia growth outlook.[/R]

U.S. indexes declined after the latest batch of reports showed signs of global economic slowdown. Yesterday, the European Central Bank cut its estimate of growth to 0.3% in the euro zone.

Non-farm payroll employment increased more than estimated in November.

The European indexes traded sideways after Bundesbank lowered the German growth outlook for 2013 and the Greek economy shrank in the third quarter.

The German central bank estimated that real gross domestic product will grow 0.4% next year and 1.9% in 2014.

Germany''s industrial production fell a seasonally adjusted 2.6% from a month ago in October compared to the upwardly revised 1.3% drop in September.

Glencore International plc receives final regulatory approval for acquisition of Viterra Inc. from the Ministry of Commerce of the People’s Republic of China.

Asian markets ended higher tracking the European and U.S. indices.

The Asian Development Bank says developing Asia will post growth of 6% in 2012 and 6.6% in 2013, 0.1% percentage point lower than anticipated by the ADB in October.

U.S. Employment Rises

Total nonfarm payroll employment rose by 146,000 in November following a downwardly revised increase of 138,000 jobs in October, the U.S. Bureau of Labor Statistics reported today.

Employment increased in retail trade, professional and business services, and health care.

The unemployment rate edged down to 7.7% in November from 7.9% in October. The number of unemployed persons, at 12 million, changed little.

The long term unemployment, those searching for jobs more than 27 weeks, was nearly unchanged at 4.8 million in November and represented 40.1% of the unemployed.

Yara Agrees to Acquire Bunge Brazilian Fertilizer Business

Yara International ASA agreed to acquire Bunge Limited’s Brazilian fertilizer business, including blending facilities, brands and warehouses, for $750 million in cash. The transaction is expected to close in the second half of 2013.

Earnings Review

Analogic Corporation ((ALOG)), the technology company reported first quarter revenue rose 2% to $119.9 million from the comparable quarter last year. Net income in the quarter increased to $4.4 million or 35 cents per diluted share compared to $4 million or 32 cents per diluted share, in the previous year quarter.

Esterline Technologies Corporation ((ESL)), the specialty manufacturer reported fourth quarter revenues rose to $530.66 million from $502.40 million last year. Net earnings in the quarter soared to $61.66 million or $1.97 per diluted share compared to $19.44 million or 62 cents per diluted share in the same period last year.

Palo Alto Networks, Inc. ((PANW)), the network security provider reported first quarter total revenue grew 50% annually to $85.9 million. Net loss for the quarter was $3.5 million or 5 cents per diluted share compared with net income of $4.1 million or breakeven per share a year ago.

The Cooper Companies, Inc. ((COO)), the contact lens maker said fourth quarter net sales rose 10% to $396.3 million from the same quarter last year. Net income for the quarter increased 27% to $71.9 million or $1.46 per diluted share compared to $56.6 million or $1.15 per share for the year-ago quarter.

For the full year, revenue increased 9% to $1.45 billion. Net income climbed 42% to $248.3 million or $5.05 per share.