Stocks in New York Open Higher, Morgan Stanley to Trim 1,600 Traders

Nichole Harper
09 Jan, 2013
New York City

Stocks on Wall Street gained after Alcoa reported better than expected quarterly results. Market indexes participated in a broad rally that lifted consumer and industrial and tech stocks. Morgan Stanley plans to trim 1,600 staff in its institutional securities business.

[R]11:45 AM New York – Stocks on Wall Street gained after Alcoa reported better than expected quarterly results. Market indexes participated in a broad rally that lifted consumer and industrial and tech stocks. Morgan Stanley plans to trim 1,600 staff in its institutional securities business.[/R]

Stocks on Wall Street rose in early trading after Alcoa reported better than expected quarterly results.

S&P 500 index gained 0.4% and the Nasdaq index added 0.5% after two hours of trading. Consumer staples, industrials and technology stocks led the gainers.

Alcoa estimated rising global demand for aluminium used in several industries from construction to consumer packaging to aerospace.

European markets advanced and Italy reported record unemployment above 11%. Youth unemployment increased to a new high of 37%.

The prospect of slow economic recovery rose in the euro zone after Germany reported weak 0.2% increase in industrial output in November.

The increase was sharply lower than 1% estimated by many economists and highlighted economic anxieties and slow growth in the largest economy in the euro zone.

Stocks in Review

Alcoa Inc. ((AA)) gained 6 cents to $9.17 after the aluminum producer reported revenue in the fourth quarter ending in December dropped 2% to $5.90 billion from $5.99 billion in the same period of last year. Net income the quarter swung to $242 million or 21 cents per diluted share compared to net loss of $191 million or 18 cents a share a year ago.

In 2013, Alcoa expects global aluminum demand growth of 7%, up from 6% in 2012.

Apollo Group, Inc. ((APOL)) declined 10.5% or $2.25 to $18.68 after the education provider said net sales in the first quarter ending in November slipped 9% to $1.06 billion from $1.17 billion in the same period of last year. Net income in the quarter dropped 11% to $133.5 million or $1.18 per diluted share compared to $149.3 million or $1.14 a share a year ago earlier.

The company expects net revenue for fiscal year 2013 between $3.65 billion and $3.75 billion.

Clearwire Corporation ((CLWR)) soared 7.4% or 22 cents to $3.14 after the broadband service provider received unsolicited non-binding proposal from Dish Network Corporation to acquire all common stock for $3.30 a share.

Global Payments Inc. ((GPN)) climbed 5.2% or $2.43 to $48.50 after the electronic payment provider stated net sales in the second quarter ending in November jumped 11% to $588.5 million from $530.5 million in the same period of last year. Net income in the quarter soared 15% to $70.2 million or 89 cents a diluted share compared to $61.2 million or 78 cents a share a year ago quarter.

For the fiscal year 2013, the company expects annual revenue in the range of $2.36 billion to $2.40 billion or an increase between 7% and 9% from a year ago.

Helen of Troy ((HELE)), the consumer products maker that has a portfolio of brands including Dr Scholl’s, Vicks and Fabreze, gained 70 cents to $34.23 after it reported 15% increase in earnings.

Morgan Stanley ((MS)) increased 1 cent to $19.66 and the investment banker and broker said it plans to trim 1,600 jobs in its institutional securities business or 6% of the unit’s staff. The cuts are expected to be equally divided between the U.S. and international locations.

Last year, Morgan Stanley lowered its total head count by 6% and employed nearly 57,700 employees.