Stocks Trade in a Tight Range

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

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.Winn-Dixie plan to close as much as one third of its store and exit from operations in four state. Dolby Labs jumps 14% and shares of Catuity flies 310% higher and Proctor $ Gamble cuts earnings outlook.

MARKET AVERAGES

Major averages remained in a tight trading range due to lack of earnings, economic news and oil data. Markets are awaiting demand consumption data from the Energy department tomorrow. Oil slipped 78 cents for the session.

Caterpillar stock traded up 2% before settling at one percent higher on the upbeat comments from Lehman Brothers. Maytag stock traded up 5.8%.

Sectors in food retailing, Internet services and semi conductors were up. Oil services, oil exploration, steel and copper miners closed lower. Shares of Kroger and Factset Research closed higher on the earnings news and airlines stocks closed higher despite high oil prices.


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 markets ended higher with indexes near three-year highs as crude-oil prices retreated to $59 a barrel after the frantic escalation Monday. News in Europe caused worries as U.K. media companies warned of difficult conditions and the Swedish central bank cut sharply interest rates. Averages in Germany gained 0.5%, in France added 0.7%, and in the U.K. climbed 0.2%.


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.

Commercial metals, steel maker & metals recycler, posted 3Q earnings increase of $1.14 per share vs. 84 cents last year on strong margins. In spite of the increase the results fell short of Wall Street’s estimate of$1.25 a share. The company projected 4Q earnings from $1.15 to $1.30 a share.

Kroger, supermarket chain, reported net income rise to 40 cents a share from 35 cents a year ago exceeding analysts’ estimates of 34 cents. Net sales jumped 6.2%, same-store sales advanced 3.8%.The company raised its 2005 earnings guidance to more than $1.24 a share.

Christopher & Banks, women’s clothes retailer, announced 1Q net profit of 26 cents vs. 26 cents last year matching analysts’ estimates. Sales grew 20% and same-store sales also went up 4%.


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.

OIL AND METALS MARKETS

Oil remained volatile during the day. During the session the oil traded below $60 and closed at $59.10 down 78 cents. Gold, silver and copper stayed closed to unchanged during the session.

Oil markets continue to gyrate on rumors of impending strike in Norway and possible unrests in Nigeria and rise in demand in the U.S. Traders are now awaiting the supply and demand for the U.S. market tomorrow.