Nordstrom Profit Jumps 26%

Elena
21 Nov, 2006
New York City

U.S. stock futures moved higher. Nordstrom posted Q3 profit rise of 26%, benefiting from higher margins and brisk same-store sales. The company earned 52 cents a share, up from 39 cents a share a year ago, above estimates of 51 cents. Total sales increased 12%, while same-store sales rose 11%. Medtronic reported Q2 earnings decline of 59 cents a share, down 16.6% from 67 cents a share last year due to higher costs. However, revenue for the quarter jumped 11%, exceeding estimates.

[R]9:00AM U.S. stock futures advanced, boosted by earnings and corporate news.[/R]
Stock index futures pointed to a higher market opening on Tuesday on a multibillion-dollar order for Boeing, strong earnings reports and several brokerage upgrades.

Boeing Co. ((BA)) received a $5.5 billion order for planes from Korean Air. A brokerage upgrade of software maker Adobe Systems Inc. ((ADBE)) also boosted sentiment. Wachovia lifted its rating on shares of Adobe ((ADBE)), while J.P. Morgan Securities raised its rating on Medtronic ((MDT)) after the medical device maker reported earnings above estimates. Bear Stearns raised its price target on online retailer Amazon.com ((AMZN)) to $45 from $40.

On the earnings news front, Jack in The Box ((JBX)) reported a 54% rise in Q4 net income after selling 25 restaurants in Hawaii and said it would buy 5.5 million of its shares through a modified Dutch-auction tender offer. Nordstrom Inc. ((JWN)), operator of high-end department stores, posted Q3 profit rise of 26%, benefiting from higher margins and brisk same-store sales. The company earned 52 cents a share, up from 39 cents a share in the year-ago period, surpassing estimates of 51 cents. Total sales increased 12% to $1.9 billion while same-store sales rose 11%.

Medtronic Inc. ((MDT)), medical device maker, reported Q2 earnings decline of 59 cents a share, down 16.6% from 67 cents a share last year due to higher costs. However, revenue for the quarter jumped more than 11% to $3.08 billion from, exceeding estimates. The S&P 500 futures were up 0.9 point, above fair value. Dow Jones industrial average futures rose 8 points, and Nasdaq 100 futures gained 2.25 points.


[R]8:00AM Stock futures were steady.[/R]
U.S. stock market futures were trading near the flat line after a six-session winning streak for the Dow Industrials Index was snapped on Monday, despite several mega merger deals totaling about $70 billion. However, Vow components Boeing and Verizon are seen as potential gainers for the blue-chip index.

Of companies in focus, Korean Air said it is buying 25 planes from Boeing ((BA)) that are worth $5.5 billion. Dow component Verizon ((VZ)) was upgraded at Credit Suisse to outperform from neutral, citing expectations of earnings increase.

On the earnings news front Deere & Co ((DE)), agricultural equipment maker, reported Q4 earnings and revenue that rose above year-earlier levels and topped analyst forecasts. The company also said production levels are expected to decline 4% in Q1 and for the year. Other companies reporting quarterly earnings today include Borders, J. Crew Group ((BGP)) and Jack in the Box ((JBX)). S&P 500 futures rose 1 point at 1,406.30 and Nasdaq 100 futures rose 2 points at 1,813.25. Dow industrial futures advanced 10 points.



[R]7:30AM Asian stocks finished higher Tuesday, HK gained on property.[/R]
Asian markets finished mostly higher on Tuesday. The Nikkei 225 Index added 0.05% to finish at 15,734.14. Tech stocks gained after an overnight advance by U.S. counterparts. Casio Computer reported a 3.4% rise and Mitsui O.S.K. Lines moved 2.8% higher.

Banking stocks mostly declined as the results for major banks in the first fiscal half showed slow recovery in their main lending business. Sumitomo Trust and Banking lost 1.2% and Mizuho Financial Group sank 2.19%.

In Hong Kong, shares closed higher on a strong performance by Chinese property stocks. The Hang Seng Index gained 0.3% to 19,008.30. China Resources Land soared 6.9% after announcing the $350.6 million acquisition of land from its parent, which Mr. Chow said could almost double the holdings in its portfolio. Guangzhou Investment rose 4.1%, on the second day after it said it was buying two large development sites in the center of Guangzhou.

The Straits Times Index in Singapore gained 0.9% to 2,796.26. Singaporean property group Keppel Land rose as much as 4% while fellow developer City Developments rose as much as 3% following an upbeat Deutsche Bank report.

In Seoul, telecommunication shares led the Korea Composite Stock Price Index, or Kospi, 0.3% higher to 1,405.90. Among telecommunication stocks, SK Telecom gained 1.4%, while its smaller rival KT Freetel moved up 0.2%. KT rose 1.3%. Korea Exchange Bank, rose 2.8% on hopes that Lone Star may propose high dividends for KEB shareholders.

Australia S&P/ASX 200 advanced 0.7% to 5,358.00 and New Zealand NZX-50 Index added 0.3% to 3,821.19. Taiwan Weighted Price Index gained 0.7% to 7,309.69, while China Shanghai Composite Index advanced 1% to 2,037.55.


[R]6:30AM European stocks advance on Tuesday helped by banks and export stocks.[/R]
European markets were higher on Tuesday. By mid morning, the FTSE 100 in London climbed 0.1% to 6,208.4, Frankfurt Xetra Dax gained 0.2% to 6,463.39, and the CAC 40 in Paris added 0.2% to 5,467.1.

Advancers

Swatch Group, the Swiss watchmaker, led the advancers after the Federal Customs Office of Switzerland said exports of watches rose 15.5% year-on-year in October. Swatch shares gained 2.9%.

Richemont, the maker of Cartier watches, gained 1% after Goldman Sachs, which rates the company conviction buy, raised its full-year earnings per share estimates.

Interdealer broker Icap Plc announced that its first-half adjusted profit rose 23% to 120.8 million pounds, with revenue up 22% to 542.8 million pounds after growth in the interdealer market, in particular in energy, transport, credit and equity derivatives products. Profit for the year is expected to be in line with analysts'' expectations, it added.

Banca Monte dei Paschi di Siena, the Italian bank, rose 2.1% after French insurer CNP Assurances said it was interested in bidding for a stake in MPS Vita, Monte Paschi’s insurance division. Shares in CNP were 0.6% higher.

British Land led a rally in property stocks after it reported a better-than-expected rise in net asset value, an important performance measure in the sector. Its shares gained 0.9%. Stock exchange operator Deutsche Boerse increased 1.6% following recent M&A moves in the sector.

Decliners

On the downside, German tyre maker Continental fell 1.4% after loss-making Russo-Dutch rival Amtel-Vredestein announced the two companies were in talks about a possible joint venture.

Oil and gold

Crude oil gained on trader speculation that rising demand will cut U.S. fuel inventories and the OPEC may agree to lower production for a second time in two months. Crude oil for January delivery rose as much as 40 cents, or 0.7%, to $59.20 a barrel in after-hours electronic trading on the NYME. It was at $59.05 in early trading in London. Brent crude oil climbed as much as 40 cents, or 0.7%, to $59.38 a barrel on the ICE Futures exchange. Gold traded in London at $625.00 bid per troy ounce, up from $624.10 late Monday.


Currencies

The U.S. dollar was lower against other major currencies in European trading Tuesday morning. The euro was quoted at US$1.2817, up from $1.2813 late Monday. The British pound was quoted at $1.8981, up from $1.8966. The dollar bought 118.01 Japanese yen, down from 118.09.