On the Slide

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

Stocks are on a slippery slope in the morning trading. Oil, gold and silver are on the rise while copper is on the downside. FedEx missed the estimates by two cents. Family Dollar, Corinthian and Del Monte disappoint. European markets at mid-day are mildly up.

MARKET AVERAGES

In the opening hours stocks are trading with a mild negative bias as stocks await the existing home sales from National Association of Realtors and await Fed Chairman testimony to Senate finance committee.

CNOOC offer for Unocal and weaker earnings from FedEx casuing some concerns in the oil and transportation sectors. Initial claims of weekly unemployment statistics have not impacted the market.


ECONOMIC NEWS

In the week ending June 18, the advance figure for seasonally adjusted initial claims was 314,000, a decrease of 20,000 from the previous week's revised figure of 334,000. The 4-week moving average was 333,000, a decrease of 2,500 from the previous week's revised average of 335,500.

The advance seasonally adjusted insured unemployment rate was 2.0 percent for the week ending June 11, a decrease of 0.1 percentage point from the prior week's unrevised rate of 2.1 percent.

The advance number for seasonally adjusted insured unemployment during the week ending June 11 was 2,600,000, a decrease of 38,000 from the preceding week's revised level of 2,638,000. The 4-week moving average was 2,603,000, an increase of 7,500 from the preceding week's revised average of 2,595,500.


EARNINGS AND CORPORATE NEWS

FedEx posted 4Q earnings rise of $1.46 per share vs. $1.36 a share last year on improved sales but missed estimates of $1.48 a share. Full-year earnings are projected to be between $5.20 and $5.45 a share.

Methode Electronics, electronic automotive components maker, reported 4Q profit rise of 27 cents a share compared with 21 cents a share a year ago on strong sales. For the full year the company predicted earnings in the range of 71 cents per share.

Gerber Scientific, automated manufacturing systems supplier, posted 4Q earnings loss of 21 cents a share compared with earnings of 16 cents per share a year ago.

Del Monte Foods, branded food producer & distributor, reported 4Q earnings decline of 9 cents per share vs. 26 cents per share last year reflecting lower sales, increased inflationary costs and integration expenses.

ATI Technologies, a maker of computer graphics processor, reported 3Q net loss of break-down per share compare with a profit of 19 cents per share last year missing estimates of 4 cents a share. The company lowered its 4Q revenue outlook to $550 to $580 million from $600 million.


INTERNATIONAL MARKET NEWS

Asian benchmarks finished mostly higher on reversed early losses by Japanese averages and data released before market opened which supported gross domestic product. The Nikkei ended up 0.3%, Hong Kong’s Hang Seng advanced 0.2%, and South Korea’s Kospi gained 0.9%. Crude-oil traded at $58.09, and he U.S. dollar at 108.72 yen.

European markets edged up in mid-day trading on carmakers’ gains, weaker euro traded down 0.4% against the dollar at $1.2084 and chip stocks buoyant. Germany’s DAX 30 ended up 0.3%, France’s CAC 40 advanced 0.3%, and London’s FTSE also added 0.3%.