Trade Report to Boost the Opening

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

Morning positive report on trade deficit may overshadow the mild uptick in the oil price in London and New York. The stocks are likely to respond to the earnings news. Report from Abbot, Harley Davidson and AMB Property will support the morning trend for the higher opening. After the close Apple and Advanced Micro are scheduled to report earnings.

U.S. MARKET AVERAGES

Market futures indicate positive opening as investors digest the May trade deficit report. The U.S. government report 2.7% decline in trade deficit largely on the decline in prices for oil import.

The U.S. government panel that reviews mergers of companies that involve foreign companies is expected to not review the proposed merger between Unocal and Chinese company CNOOC until the companies are closed to definitive deal.


ECONOMIC NEWS

The U.S. government reported that the trade deficit for the month of May declined from the previous month. Total May exports of $106.9 billion and imports of $162.2 billion resulted in a goods and services deficit of $55.3 billion, $1.6 billion less than the $56.9 billion in April, revised. May exports were $0.2 billion more than April exports of $106.7 billion. May imports were $1.4 billion less than April imports of $163.6 billion.

In May, the goods deficit decreased $1.6 billion from April to $60.8 billion, and the services surplus was virtually unchanged at $5.4 billion. Exports of goods decreased $0.1 billion to $74.5 billion, and imports of goods decreased $1.6 billion to $135.3 billion. Exports of services increased $0.2 billion to $32.4 billion, and imports of services increased $0.2 billion to $27.0 billion.

In May, the goods and services deficit was up $6.6 billion from May 2004. Exports were up $10.5 billion, or 10.9 percent, and imports were up $17.1 billion, or 11.8 percent.


INTERNATIONAL MARKET NEWS

Asian benchmarks closed mixed as U.S. blue chips slipped and crude-oil climbed back to $61 a barrel on a new approaching summer storm. Japanese stocks ended down 0.3% as investors locked in profits awaiting corporate earnings reports in the U.S and Japan. South Korea’s Kospi gained 0.6% on strong demand for financial stocks. Hong Kong’s Hang Seng climbed 1.1% on solid gains for select blue chips. In Tokyo the dollar traded at 111.42 yen.

European shares advanced in mid-day dealings boosted by oil companies as crude-oil resumed higher levels of over $61 a barrel under the threat of the oncoming Tropical Storm Emily and gains posted by automakers. The German DAX 30 added 0.3%, the French CAC 40 rose 0.4%, and the U.K.’s FTSE 100 climbed 0.6%. In currency markets the euro and the pound lost ground against the dollar and quoted at $1.2183 and $1.7652 respectively.

ENERGY, METALS AND CURRENCIES MARKETS

OIL futures climbed on fears of supply disruptions at U.S oil facilities caused by approaching summer storm Emily. But prices eased from stronger early gains amid news of weaker-than expected Chinese consumption. U.S. crude delivery for August was up 13 cents at $60.75 after trading as high as $61.30 a barrel. London Brent was up 23 cents at $59. 05.

EARNINGS AND CORPORATE NEWS

Abbot Laboratories, drug maker, posted 2Q earnings of 56 cents a share against 40 cents a year ago. Excluding discontinued operations and one-time tax expenses, earnings would be 58 cents a share beating expectations of 57 cents. The company backed its 2005 profit of $2.47 to $2.53 a share excluding special items.

Datalink Corporation, independent information storage architect, posted 2Q profit of $04 a share compared with a net loss of $10 last year exceeding estimates of $08 loss to a net income of $02 a share.

Harley-Davidson, motorcycle seller, reported 2Q profit of 84 cents a share vs. 83 cents a year ago beating expectations of 79 cents a share. The company raised its 2005 outlook to 10% to 13% from 5% to 8% helped by share repurchases.

Wolverine World Wide, casual shoes maker, announced 2Q earnings rise of 22 cents per share vs. 18 cents last year on stronger sales and profit increases at its Outdoor Group & Hush Puppies unit. Analysts had expected net income of 21 cents per share.

International Electronics, electronic access control product maker, reported 3Q net loss of 8 cents per share down from a loss of 18 cents a share a year ago on 13% sales growth.

Party City, retailer of party supplies, posted decline in 4Q same-store sales of 0.8% citing weak demand for seasonal merchandise.

Winmark Corporation, financial services provider, reported 2Q net income fall of $08 per share compared with $11 per share last year.

Rocky Mountain Chocolate Factory, confectionery products maker, announced 1Q profit growth of 11 cents a share vs. 9 cents a year earlier on improved sales. Same-store sales rose 4.1%. The company backed its full-year outlook.

Resources Global Professional, business consulting firm, posted 4Q net income rise to 31 cents a share, up from 22 cents a year ago reflecting 40% jump in sales. The quarterly profit exceeded expectations of 22 cents a share.

Innoves, manufacturer of flexible circuits, reported 3Q narrower net loss of 13 cents per share compared with 88 cents last year on sales growth and strong demand for flat-panel display products. Analysts had expected a wider loss of 14 cents a share.

FRANKLIN COVEY CO, provider of professional leadership and training services, posted a narrowed loss of 34 cents a share against a loss of 37 cents in the comparable period last year.

Century Bancorop A, reported 2Q profit fall of 37 cents per share compared with 43 cents a year ago on higher operating expenses.

AMB Property Corporation, global developer and owner of industrial real estate, posted 2Q earnings rise of 45 cents a share vs. 20 cents a year ago on development and contribution gains. The quarterly results exceeded previous company’s guidance of earnings from 30 to 33 cents a share
BANK OF THE OZARKS, reported 2Q profit increase of 46 cents a share compared with 38 cents last year on record interest income and service charges.