Market Awaits Oil Report

Elena
08 Sep, 2005
New York City

South Korea's leading index reached a record high, the Nikkei lost 0.6%. European markets traded near the flat line at mid-day. e-Bay is in talks to acquire privately held internet-telephone company Skype Technologies fot $2 billion to $3 billion.

U.S. MARKET AVERAGES

Stocks point to a lower opening Thursday as market expects jobless claims and wholesale inventories data as oil advanced and is now close to the $65-a-barrel level.

eBay Inc. shares dropped on a report that the company is in talks to acquire Skype Technologies SA for $2 billion to $3 billion.

Take-Two Interactive Software posted weaker-than-expected 3Q losses late Wednesday and issued full-year outlook below estimates. Hovnanian Enterprises’s guidance for fiscal 2005 and 2006 was also below analysts’ projections.

National Semiconductor is scheduled to post 1Q earnings of 21 cents a share before the bell. Dave & Busters, CBRL Group and Molex are also due to report earnings Thursday.

News Corp. has agreed to pay $650 million to buy the network of video game-related Web sites IGN Entertainment Inc., that has recently filed for an IPO.

Bear Stearns ((BSC)) and Calpine ((CPN)) said they have reached a deal to form an energy marketing and trading venture, which will be called CalBear Energy LP and is going to focus on physical natural gas and power trading. Trading operations are scheduled to start in 4Q, according to the companies.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks closed mixed on declining crude-oil prices to a three-week low. The Nikkei shed 0.56% as investors sold steel, bank and real estate issues, the central bank said that it would keep monetary policy and national elections approached. Across the region Hong Kong’s Hang Seng lost0.38%, while South Korea’s Kospi reached a record high, rising 0.2% on interest-rate hikes speculations. The dollar bought 110.40 yen.

European markets traded near the flat line at mid-day dealings, pressured by slightly rising crude-oil prices and mixed earnings reports, including declining building-materials maker Lafrage and gaining luxury retailer PPR. The German DAX 30 was unchanged, the French CAC 40 lost 0.3%, and London’s FTSE 100 slipped 0.1%.

ENERGY, METALS, CURRENCIES

Crude-oil prices started rising ahead of U.S. data, expected to show a sharp decline in crude and product stocks. Light sweet crude gained 57 cents to $64.94 a barrel. London Brent climbed 65 cents to $63.54.

Gold was mixed in European trading. In London the precious metal traded at $444.80, up from $443.75 per troy ounce. In Hong Kong gold gained $0.40 to close at $445.15. Silver traded unchanged at $7.04.

The U.S. dollar was mixed against its major counterparts in European trading. The euro was quoted at 1.2413, down from $1.2416. The dollar bought 110.48 yen, up from 110.06. The British pound traded at $1.8369, up from $1.8356.

EARNINGS NEWS

SWS Group, investment and financial-services holding company, expects to post 4Q net income of $5.3 million, or 30 cents a share, up from the year-ago period when the company recorded a net loss of $4.3 million, together with an $8 million charge to settle an anticipated regulatory enforcement action.

Powell Industries, manufacturer of electricity management equipment, posted 3Q net income of 19 cents a share, up vs. 7 cents in the same period last year on strong revenue growth to $66.9 million from last year's $52.8 million, beating analyst estimate of 13 cents a share.

InBev , brewer, announced first-half adjusted EBITDA advanced 20.8% to 1.36 billion euros, on 6.8% revenue growth up to 5.22 billion euros. The company announced that it’s going to meet EBITDA margins of 30% by 2007, after posting adjusted EBITDA margins of 26.1% in the first half.

PPR, luxury goods retailer, reported that first-half net income climbed 12.5% to 169.6 million euros, with sales up 3.1% to 8.1 billion euros, on a strong performance at its Gucci and Bottega Veneta brands.

Havas, French media company, announced that first-half net income rose 52% to 8 cents a share despite a sales decline of 6.4%, mainly due to changes in scope and exchange rate variations. Sales advanced 2.2% on a comparable basis.