Stocks On the Defensive

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

Lack of earnings and economic news have pushed traders on the side-lines. Maytag gets a second buyout offer this time a Chinese rival teaming up with private equity firm, oil and metals markets trade lower. Overnight Asian markets and at mid-day European markets are trading lower. Oil traders are watching possibilities oil workers strike in Norway tomorrow.

INTERNATIONAL MARKETS

Asian stocks ended mixed on a backdrop of surging crude-oil prices, Wall Street pullback and mixed U.S. economy news. The Nikkei Stock Average finished up 0.05%, supported by the bank and blue-chip tech sector. Hong Kong’s Hang Seng climbed 0.2% while South Korea’s Kospi fell 0.5%, and Shanghai Composite was down 1.3%. Crude-oil traded at $58.95 a barrel, the dollar was in the lower 109-yen ranges.

European shares traded higher at mid-day as crude-oil prices eased back about 1% after hitting record highs Monday. Germany’s DAX 30 gained 0.3%, France’s CAC 40 added 0.4%, U.K.’s FTSE 100 rose 0.2%. The euro was near nine-month lows at $1.2137.

EARNINGS

Apogee Enterprises, value-added glass products and services deliverer, reported 1Q 2006 earnings of 14 cents a share vs. 11 cents last year. The company lifted its full-year guidance to a range from 74 to 80 cents a share on revenue growth of 9 to 11%.

Darden Restaurants posted 4Q profit increase of 52 cent a share vs. 32 cents a year ago on 2.9% higher sales. Same-store sales rose 9.9% at Olive Garden and 3.4% at Red Lobster.

Diedrich Coffee reported 3Q earnings of $2.99 including an after-tax gain of $2.98 compared with a penny loss a year earlier.

FactSet Reasearch, information provider, announced 3Q earnings growth of 39cents per share from 30 cents last year on subscriptions rise. The results including income tax benefit of 4 cents a share beat analysts’ estimates of 34 cents a share.

Lennar, home builder, posted 2Q net earnings of $1.48 per share vs. $1.22 a share last year on steady demand and higher home prices beating estimates of $1.31 a share. The company raised its 2005 earnings outlook to $7.80 from previous forecast of $7.15 a share.

Valueclick, on line advertising services provider, reaffirmed 2Q earnings of 8 cents a share in line with analysts’ expectations. The company raised its 2005 earnings outlook to the range of 38 to 40 cents per share compared with earlier estimates of 37 to 39 cents a share.


CORPORATE NEWS

Maytag received a buyout offer from rival Chinese manufacturer for $16 per share. Chinese company Haeir America, the U.S. division of its namesake, has teamed up with Bain Capital and Blackstone partners to offer $2 per share more than the current bid from Ripplewood Holdings. The stock is up 5%.

Steelmakers in Europe traded lower after U.S. peer Nucor cut its 2Q earnings forecast and after Tokyo Steel Manufacturing announced its intention of cutting prices next month. In London Corus Group fell 4%, in Paris Arcelor slid 2.3%, and in Frankfurt Thyssen Krupp decline 2.1%.

Procter & Gamble said it expects the acquisition of Gillette for $53 billion will cut into profit 2 years after the deal ends and will start adding to earnings in the third year. P& G forecasts the acquisition will bring from 1 to 5 cents a share in the third year.