S&P 500 and European Markets Advance; IMF and Greece 'Far Apart'

Nichole Harper
11 Jun, 2015
New York City

Market indexes on Wall Street advanced and weekly jobless claims increased less than expected. The IMF recalled its debt negotiating team to Washington and contradicted Greek assertion that an agreement is in the offing.

[R]2:30 PM – Market indexes on Wall Street advanced and weekly jobless claims increased less than expected. The IMF recalled its debt negotiating team to Washington and contradicted Greek assertion that an agreement is in the offing.[/R]

Stocks opened higher and market indexes on Wall Street extended recent gains after jobless claims rose less than expected.

Seasonally adjusted weekly jobless claims increased 2,000 to 279,000 from the previous week’s revised claims of 276,000, the U.S. Department of Labor said.

In a separate report the department said import price index in May climbed 1.3% after declining for ten months in a row. In May, export prices increased 0.6% following 0.7% decrease in April.

Retail sales in May adjusted for seasonality and calendar jumped 1.2% to $444.9 billion from April and climbed 2.7% from a year ago month, the U.S. Department of Commerce reported today.

The department in a separate report said inventories at the end of April rose 0.4% from March to $1,793.2 billion and jumped 2.6% from a year ago month.

Sales in April increased 0.6% to $1,318.8 billion from March but declined 2.3% from a year ago month.

On Wall Street, Tollbooth Strategy Index gained 0.2% or 24.83 to 10,795.86.

S&P 500 index rose 0.3% or 5.39 to 2,110.48 and the Nasdaq Composite Index edged up 3.55 to 5,080.37.

Crude oil in New York slipped 93 cents to $60.50 a barrel and gold dropped $7.30 to $1,179.30 an ounce.

U.S. Movers

Krispy Kreme Doughnuts ((KKD)) surged 11.9% or $2.08 to $19.48 after the beverages and packaged sweets retailer said revenues in the first-quarter ending on May 3 jumped 9% to $132.5 million form a year ago period.

System wide domestic same store sales in the quarter climbed 5.2%.

Net income in the quarter surged 10.5% to $10.7 million or 16 cents per diluted share compared to $9.7 million or 14 cents from the same quarter last year.

Men''s Wearhouse Inc ((MW)) climbed 5.2% or $3.03 to $61.56 after the men''s specialty retailer reported net sales in the first-quarter ending on May 2 jumped 40.4% to $885.1 million from a year ago period.

Net income in the quarter tumbled 37% to $10.4 million or 21 cents per diluted share compared to $16.5 million or 34 cents from the same quarter last year.

The retailer said net sales in retail segment climbed 43.7% to $250.6 million and corporate apparel sales advanced 7% or $4 million.

For fiscal 2015, the company forecasted earnings per share in the range of $2.70 to $2.90 compared to prior year earnings per share of $2.37.

European Markets

Market indexes in Europe advanced and the I.M.F. recalled its negotiating team to Washington after the lender and Greece remained far apart.

Contrary to the statements from Greek officials and Prime Minister Alexis Tsipras, the International Monetary Fund said “we are well away from an agreement.”

In London trading, FTSE 100 index jumped 0.5% or 36.25 to 6,866.46 and in Frankfurt the DAX index climbed 1.5% or 164.68 to 11,430.69.

In Paris, CAC 40 index advanced 1.6% or 77.64 to 5,012.58.

Airbus Group SE advanced 2.4% to €61.96 after the France-based aerospace and defense products maker secured contract worth about €1 billion for the sale of 24 military helicopters to Kuwait.

Home Retail Group Plc jumped 2.4% to 163.30 pence after the U.K.-based home improvement retailer said total sales in the first-quarter ending in May at Argos unit dropped 2.6% to £846 million mainly due to weak sales in electrical and seasonal products.

Comparable sales in the quarter declined 3.9%.

Mulberry Group Plc fell 0.4% to 901.70 pence after the U.K.-based apparel and accessories maker reported revenues in the year ending in March plunged 9% to £148.7 million from £163.5 million in a year ago period.

Net in the year swung to a loss from a year ago to £1.4 million compared to profit of £8.6 million and diluted loss per share swung to 2.3 pence from diluted earnings per share of 14.3 pence.

The company said retail sales dropped 9% £109.9 million and as expected wholesale in the year tumbled 29% to £38.8 million from the year ago period.

Asian Markets

Nikkei average in Tokyo jumped following the gains in New York and Europe. Daiwa House set up a joint venture to build residential units in Malaysia. Supermarket retailer, Kobe Bussan Co Ltd reported better-than-expected earnings and sales.

Stocks in Tokyo traded higher and the yen held firm after the international markets jumped on the prospect of an accord between Greece and international lenders.

The Nikkei 225 Stock Average climbed 336.61 or 1.7% to 20,382.97 and the broader Topix index jumped 20.65 to 1,648.88.

The yen closed at 123.40 against a dollar.

Kobe Bussan Co Ltd soared 7.1% to 6,070 yen after the supermarket retailer reported net sales in the second-half ending in April climbed 6% to 111.46 billion yen from 105.15 billion yen in a year ago period.

Net income in the period surged nearly four-fold to 2.37 billion yen compared to 652 million yen and diluted earnings per share increased to 171.83 yen from 46.36 yen in the same period a year ago.

The retailer forecasted net sales for the fiscal first-half ending in October to jump 5.1% to 225 billion yen and net income to soar 53.8% to 4 billion yen.

Market indexes in Mumbai fell sharply on the worries that the delayed monsoon may impact the economic growth in the current fiscal year and banks led the decliners.

Banks fell sharply after Deputy Governor Reserve Bank of India S.S. Mundra said the government’s plan to inject $1.2 billion or ₹7,000 crore in the banking sector may not be enough in recapitalizing state-controlled banks.

BSE Bankex index dropped 1.4%. ICICI Bank fell 1.3%, Punjab National Bank 2%, State Bank of India 2.2%, Yes Bank 1.9% and HDFC Bank 0.5%.

Rupee slipped 15 paisa to 63.98 against one U.S. dollar.

The Sensex Index declined 469.52 or 1.8% to close at 26,370.98. The CNX Nifty decreased 159.10 or 1.9% to 7,965.35.

Central government is planning to pump $1.2 billion in state controlled banks and may need to do more if monsoon arrival is delayed.