GDP 0.6%, GM and PG Earnings; Stocks Up

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

U.S. stocks edged higher on the release of first quarter GDP data. The economy in the quarter rose at annual rate of 0.6%, same rate as in the fourth quarter of 2007. Higher investment in inventory contributed to the mild gain. Citigroup revised its stock offering plan to $4.5 billion from $3 billion. General Motors reported narrower than expected loss. Procter & Gamble earnings rose 7.9% on rising demand in China, India and Latin America.

[R]9:25AM New York – U.S. stock indexes gain after the release of GDP data.[/R]

U.S. stocks edged higher after first quarter GDP rose at 0.6%, the same as in the fourth quarter. Inventory investment and higher prices paid by consumers contributed to the rise.

General Motors, Procter & Gamble and CB Richard Ellis rose after the release of earnings. Citigroup fell after it released a plan to raise $4.5 billion in capital to replenish balance sheet from the losses and asset write downs totaling $41 billion. The troubled bank increased its offering size to $4.5 billion from $3 billion.

GDP rises in the first quarter at 0.6%

U.S. economy grew at annual rate of 0.6% after adjusting for inflation after rising at the same rate in the fourth quarter.

The increase in real GDP in the first quarter primarily reflected positive contributions from personal consumption expenditures (PCE) for services, private inventory investment, exports of goods and services, and federal government spending that were partly offset by negative contributions from residential fixed investment and PCE for durable goods. Imports, which are a subtraction in the calculation of GDP, increased.

The increase in real GDP is the same as in the fourth quarter, reflecting an upturn in inventory investment that was offset by an upturn in imports, and downturns in nonresidential structures, in PCE for durable goods, and in PCE for nondurable goods.

Private employers expand staff

Separately ADP reported that companies in April added 100,000 jobs after adding revised 3,000 people in March.

Earnings review

CB Richard Ellis Group, Inc. a commercial real estate services broker and property manager reported first quarter 2008 revenue of $1.23 billion compared to $1.21 billion from a year ago.

First quarter net income was $20.45 million or $0.10 cent per diluted share versus net income of $11.97 million or $0.05 cent per share in the corresponding period in 2007.

Express Scripts, Inc. a pharmacy benefit management n North America said that revenue for the for the first quarter 2008 climbed to $4,604.2 million compared to $4,508.9 million for the same quarter of 2007.

First quarter net income increased to $177.2 million or $0.69 cent per diluted share compared with net income of $133.7 or $0.49 cent per diluted share for the same quarter of prior year.

Asian markets review

In Tokyo Nikkei 225 Index closed lower 44.38 or 0.32% to 13,849.99, in Hong Kong Hang Seng index decreased 158.80 or 0.61% closed to 25,755.35. In Australia ASX 200 index lower 11.50 or 0.21% to close 5,595.40. In Malaysia KL Composite index decreased 3.79 or 0.30% closed to 1,279.86.

In South Korea Kospi Index increased 13.96 or 0.77% to close at 1,825.47, in Thailand SET index closed lower 1.18 or 0.14% to 832.45 and Indonesia JSE Index edged increased 0.99 or 0.04% to 2,304.52. Sensex index in India decreased 91.15 or 0.52% to 17,287.31.