Market Updates

Market Manages to Rise Despite Volatile Oil

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

    Volatility in oil markets spilled over to stock market. 10-year treasury closed at 3.91%. May retail sales rose despite tough weather conditions and rise in crude oil inventory lowered crude oil price in NY. Gold and other metals rose in volatile trading session. Teenage retailers jumped 10% or more on strong rise in same-store sales.

Market averages early momentum was curtailed by rise in oil price in the morning trading hours. The release of rise in oil inventories data failed to curb speculation in oil but as traders digested the data crude prices fell. At close crude price fell by 97 cents to $53.63.

U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) rose by 1.4 million barrels from the previous week. At 333.8 million barrels, U.S. crude oil inventories remain well above the upper end of the average range for this time of year.

Total motor gasoline inventories increased by 1.3 million barrels last week, putting them just below the upper end of the average range. Distillate fuel inventories rose by 0.7 million barrels last week, but remain in the lower half of the average range for this time of year.

An increase in low-sulfur distillate fuel (diesel fuel) more than compensated for a surprising drop in high- sulfur distillate fuel (heating oil). Total commercial petroleum inventories climbed by 7.4 million barrels last week, and are near the upper end of the average range.


Mixed economic and employment report caused several investors to stay on the sidelines. Labor department reported larger-than-expected rise in unemployment claims for the last week.

In the week ending May 28, the advance figure for seasonally adjusted initial claims was 350,000, an increase of 25,000 from the previous week's revised figure of 325,000. The 4-week moving average was 334,500, an increase of 3,500 from the previous week's revised average of 331,000.

Revised productivity data--as measured by output per hour of all persons--for the first quarter of 2005. The revised seasonally adjusted annual rates of productivity change in the first quarter were 2.6 percent in the business sector and 2.9 percent in the non-farm business sector.

In both sectors, the first-quarter productivity gains were somewhat higher than those reported initially on May 5.

In manufacturing, the revised productivity changes in the first quarter Were, 4.4 percent in manufacturing, 6.3 percent in durable goods manufacturing, and 2.4 percent in nondurable goods manufacturing.

Manufacturing productivity growth was faster than reported on May 5, reflecting an upward revision to productivity in nondurable goods manufacturing. Productivity growth in durable goods manufacturing was unchanged from the figure released last month.

Output and hours in manufacturing, which includes about 13 percent of U.S. business-sector employment, tend to vary more from quarter to quarter than data for the aggregate business and non-farm business sectors.

May retail sales for the most stores met the expectations except few noticeable misses like Gap, Pier 1, Sharper Image and Restoration Hardware. Teen age retail sales for stores such as Abercrombie & Fitch and American Eagle Outfitters same-store sales jumped 29% and 17.1%. Chico’s also delivered 19% rise in same-store sales.

Gap posted 8% decrease in same-store sales below the forecasted 3% to 5% decline. Target with 5.1% growth continued to surpass same-store sales growth of 2.5% of sales growth at Wal-Mart stores.

Ross Stores, apparel retailer, announced that for the 4-week period ended May 28 sales increased 16% to $370 million from $319 million last-year period. Comparable store sales rose 7%.

Sun Microsystems agreed to buy Storage Technology for $4 billion in cash. Sun has been under pressure to position its data storage products in the market which is heavily competed by IBM, EMC and others. Sun will be able to add 1,000 sales persons to its current staff.

Jackson Hewitt, tax preparer, reported 4Q 4% profit rise on 8% higher revenue. Net income grew to $54.6 million, or $1.44 earnings per share compared to $52.4 million or $1.40 per share a year earlier.

CVS, pharmacy retailer, announced 31.5% sales increase for the 4-week period ended May 28 which reached $2.85 billion compared to $2.17 billion a year ago. Same store sales rose 5.8% over the prior year period.

Pall, filtration and purification company, reported 3Q net earnings of $43.7 million, or 35 cents a share, down from $46.5 million, or 37 cents, a year ago. Revenue totaled $493.5 million, up 6.5% from $463.9 million a year earlier.

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