U.S. Stocks Rise on Bernanke Outlook

123jump.com Staff
02 Apr, 2008
New York City

The Fed Chairman Bernanke said that conditions for economy will improve later in the year. He added that the economy may not grow and may even shrink for the first half of this year. The remarks kept stock market in check in the morning trading. Weekly crude oil inventories rose but that of gasoline fell sharply. CarMax rose after reporting lower than expected decline in earnings. Best Buy edged higher after its net income dropped 3.4%.

[R]11:45AM New York – U.S. stocks gains were muted after the Fed chairman raised the prospect of economic slowdown.[/R

The Commerce Department reported a decline in factory orders by 1.3% in February after the orders were revised to a decline of 2.3% in January. Excluding volatile transportation orders, factory orders fell 1.8% after losing 0.3% in January.

The Fed Chairman in prepared remarks to Congressional Joint Economic Committee suggested that economy may not grow much and may contract. He also suggested that conditions for the economic growth may improve in the second half of the year and most of the financial markets and economic adjustments have already occurred.

He reiterated that economy should improve in the second half of year if housing market stabilizes.

CarMax, Inc. ((KMX)), user car retailer today reported total sales increased 9% to $2.04 billion from $1.88 billion in the fourth quarter of fiscal 2007.

For the fourth quarter ended February 29, 2008, net earnings declined 48% to $21.8 million, or $0.10 per share, compared with $42.1 million, or $0.19 per share, in the fourth quarter of fiscal 2007.

For the fiscal year, total sales increased 10% to $8.20 billion from $7.47 billion. Comparable store used unit sales increased 3% for both the fourth quarter and the fiscal year. Total used unit sales raised 13% in the fourth quarter and 12% for the fiscal year.

For the fiscal year ended February 29, 2008, net earnings declined 8% to $182.0 million, or $0.83 per share, compared with $198.6 million, or $0.92 per share, in fiscal 2007.

The company guided fiscal 2009 earnings per share between 78 cents and 94 cents with revenue growth of 7% to 14% and same-store sales being down 2% to up 5%.

CarMax, Inc. ((KMX)) shares jumped $1.54 or 6.1%, to $21.14.

Lululemon Athletica Inc. retailer of athletic apparel reported fourth quarter net revenue increased 101% to $105.1 million from $52.2 million for the fourth quarter of fiscal 2006.

Net revenue from corporate-owned stores was $92.5 million, an increase of 117% from $42.6 million for the fourth quarter of fiscal 2006, with comparable-store sales increasing 41%, or 24% on a constant dollar basis.

Earnings per share in the quarter ended on February 28 were $0.21 on net income of $14.6 million, compared to earnings per share of $0.01 on net income of $0.9 million in the same quarter of fiscal 2006. For the fiscal year ended Feb. 3, 2008, net revenue increased 84% to $274.7 million from $148.9 million for the same year in fiscal 2006.

The Company has previously stated its long-term growth targets of net revenue growth of approximately 25% and diluted EPS growth in excess of 25%. For fiscal 2008, diluted earnings per share are expected to be in the range of $0.70 to $0.72.

Lululemon ((LULU)) stock rose $1.35 to $32.92.

Monsanto Company agricultural seed and fertilizer chemical company second quarter revenue jumped 45% to $3.8 billion from $2.6 billion in the same quarter prior-year.

For the second quarter ended Feb. 29, 2008, Monsanto earned $1.13 billion, or $2.02 per share, in the three months ended Feb. 29 from $543 million, or 98 cents per share, in the prior year.

Monsanto attributed the sales growth to increases in corn seed and traits revenue in the U.S.

Monsanto ((MON)), shares fell $2.94, or 2.6%, to $110.01.

International Markets

In Tokyo Nikkei 225 Index closed higher 532.94 or 4.21% to 13,189.36, in Hong Kong Hang Seng index increased 734.97 or 3.18% closed to 23,872.43. In Australia ASX 200 index higher 141.70 or 2.64% to close 5,502.90. In Malaysia KL Composite index decreased 10.76 or 0.86% closed to 1,239.65.

In South Korea Kospi Index increased 39.94 or 2.35% to close at 1,742.19, in Thailand SET index closed higher 2.35 or 0.29% to 825.71 and Indonesia JSE Index edged decreased 51.06 or 2.13% to 2,342.19. Sensex index in India increased 123.78 or 0.79% to 15,750.40.