Retailers and Tech Drive Markets Lower

123jump.com Staff
30 Nov, -0001
New York City

After a week of 3% gain, traders are taking profit before the weekend. The light trading in equity markets, oil and metals markets are taking fewer stocks higher in the morning trading. Taiwan and Korea are already feeling the heat of oil price spike and lowering their GDP forecast and UK may do so soon. Paper pulp prices are trading higher on the third day of national strike in Finland.

Markets are trading lower with few earnings and economic news to digest. Merger news in the airline industry has taken shares of Delta, AMR and Southwest air higher. Shares of Maytag are trading above $14.

Maytag, white good appliance maker, agreed to be acquired by private investor group Ripplewood plc for $1.125 billion. The group will pay $14 per share and assume $975 billion.

Overnight markets in Tokyo, Manila, Taiwan and Sydney closed slightly lower and markets in Singapore, Mumbai, Seoul and Bangkok closed higher.

Bank of Korea said that its 1Q GDP came in at 2.7% slightly below market estimate of 2.8% down from previous quarter of 3.3%, and 5.3% a year ago. Taiwan also lowered its GDP target.

State Bank of India, largest bank in India, declared 4Q profit rise of 22%.

CarMax, used car retailer, lowered its guidance for same-store sales from 9%-12% to 6% and 1Q earnings from 35/38 cents to 35/36 cents. Shares are trading lower by 10% at the opening.

Gap, apparel retailer, reported 1Q profit of 31 cents vs. 33 cents a year ago on sales decline by 1% to $3.6 billion. Shares are trading lower in the morning by 2.8%.

Charming Shoppes, plus size women retailer, reported 1Q profit of 23 cents vs. 21 cents a year ago on 2% sales growth $603 million. Shares are trading up 5.8%.

Brocade Communications reported 1Q profit of 7 cents vs. 1 cent when it included charges of 6 cents on sales decline of 1% and decline of 10% compared to previous quarter. The company plans to restate 2004 statements. Shares are trading lower by 9.7%.

Autodesk, maker of computer-aided-design software, reported 1Q profit of 31 cents vs. 18 cents a year ago on 19% revenue growth to $355 million for the quarter. For the fiscal year ending January, the company expects revenue of $1.45 B to $1.5 B and earnings of $1.14 to $1.19. Shares are trading lower by 1.1%.

Aeropostale, teen clothing retailer, reported 1Q profit of 15 cents vs. 11 cents a year ago on 26% sales increase and same-store sales rise by 4.4% vs. 19% a year ago. Shares are trading lower by a fraction.

Hibbett Sporting Goods reported 1Q profit of 46 cents vs. 33 cents a year ago on 16% sales rise and 8.2% same-store sales growth. Shares are trading higher by 10%.

Sharper Image reported 1Q loss of 30 cents vs. profit of 13 cents a year ago on 7% revenue decline to $145 million. Shares are trading 18% lower.

Finnish paper worker’s union’s three-day old strike has brought industry to halt. The Finnish paper industry account for 15% of world production and represent 8% of Finland’s GDP and 33% of export.