U.S. Current Account Deficit Narrows, Budget Talks Progress

Arthi Gupta
18 Dec, 2012
New York City

U.S. current-account deficit narrowed in the third quarter. ConocoPhillips agreed to sell its Algerian business unit for $1.75 billion. Coca-Cola Enterprises affirmed full-year earnings guidance.

[R]9:10 AM New York – U.S. current-account deficit narrowed in the third quarter. ConocoPhillips agreed to sell its Algerian business unit for $1.75 billion. Coca-Cola Enterprises affirmed full-year earnings guidance.[/R]

U.S. indexes advanced after budget talks progressed. Investors are optimistic that the December 31 deadline for automatic spending cuts and tax increases may be averted as lawmakers negotiate on key issues.

Yesterday, U.S. House Speaker John Boehner and President Barack Obama made some headway in talks after Boehner offered to increase takes on taxpayers with income of $1 million or more.

President Barack Obama for his part offered to raise taxes beginning from incomes of $400,000 and not $250,000 thereby lowering tax revenues.

The European and Asian indexes edged higher as U.S. lawmakers inch closer to a resolution on the fiscal cliff crisis.

U.S. Current Account Deficit Narrows

U.S. current-account deficit narrowed 9% to $107.5 billion in the third quarter, from a $118.1 billion shortfall in the second quarter, according to a report released by the Commerce Department today.

The trade deficit in goods and services declined to $124.5 billion in the third quarter from $137.4 billion in the previous quarter.

ConocoPhillips to Sell Algerian Business Unit

ConocoPhillips agreed to sell its Algerian business unit for $1.75 billion plus customary adjustments. The proposed sale is subject to co-venturer preemption rights and Algerian government approval.

The transaction is anticipated to close by mid-2013.

Earnings Review

Coca-Cola Enterprises Inc. ((CCE)), the nonalcoholic beverages distributor affirmed diluted earnings per share guidance for the full-year in a range of $2.20 to $2.24, with results expected at the high end of the range.

FactSet Research Systems Inc. ((FDS)), the financial information provider reported first quarter revenues increased 7.5% to $211.08 million from last year. Net income in the quarter increased 9.3% to $49.77 million or $1.11 per diluted share from $45.54 million or 99 cents per share last year.

Jefferies Group, Inc. ((JEF)), the securities and investment banking firm reported fourth-quarter net revenues rose to $769 million compared with $554 million in the earlier year quarter. Net earnings in the quarter climbed to $72 million or 31 cents per diluted share from $48 million or 21 cents per share last year.

Steel Dynamics, Inc. ((STLD)), the steel maker provided fourth quarter earnings guidance in the range of 18 cents to 22 cents per diluted share, which includes an expected favorable tax adjustment of approximately 6 cents per diluted share.