U.S. Stocks Flat; Disney Up, Cisco Down

123jump.com Staff
07 May, 2008
New York City

U.S. stocks wavered with a negative bias after one hour of trading. First quarter productivity rose at 2.2% across the economy and surged 4.1% in manufacturing sector. Cisco fell a fraction after quarterly earnings declined but sales rose in the latest quarter. Disney earnings rose 22% on 11% rise in revenue. An index of pending home resale fell in March as buyers find it difficult to get financing. Asian markets closed mixed and European markets edged higher.

[R]10:30AM New York – U.S. stocks traded mixed after one hour of trading. Oil traded lower ahead of the weekly inventory report.[/R]

U.S. stocks were mixed after first hour of trading as market awaited weekly oil report. Cisco fell a fraction after it reported sales gain of 10.4% and net income declined 5.4% Disney rose after strong gains at the theme parks revenue on international visitors.

First quarter productivity rises

Department of Labor reported first quarter non-farm productivity rose at 2.2% annual rate after rising at a rate of 1.8% in the fourth quarter of 2007. Labor costs increased 0.2% in the quarter from a year ago. Hourly compensation increased 4.4% and manufacturing sector productivity increased at 4.1% after rising at 4.2% in the fourth quarter of 2007.

Home sales soften

An index of existing home resale fell in the March according to the information published by National Association of Realtors. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, edged down 1.0% to 83.0 from a downwardly revised level of 83.8 in February, and was 20.1% lower than the March 2007 index of 103.9.

Lawrence Yun, NAR chief economist said, “Existing-home sales are projected to rise from an annual pace of 4.95 million in the first quarter to 5.82 million in the fourth quarter. For all of 2008, existing-home sales are likely to total 5.39 million, and then rise 6.1 percent to 5.72 million next year.

Although more than half of local markets are expected to see price growth this year, the aggregate existing-home price will decline 2.4 percent in 2008, driven by a relatively few markets that are very oversupplied.”

The median price is forecast at $213,700 this year before rising 4.1 percent to $222,600 in 2009.

Earnings review

The Walt Disney Company, worldwide entertainment company said second quarter revenues rose 11% to $8.71 billion from $7.9 billion a year ago. Net income in the quarter increased 22% to $1.1 billion or 58 cents per diluted share compared to net income of $931 million or 44 cents per share, a year ago.

Disney stock ((DIS)) rose $1.09 to $34.85.

Blue Nile, Inc, an online retailer of diamonds and jewelry said first quarter net sales increased 3.61% to $70.5 million from $67.9 million a year ago. Net income in the quarter $2.6 million or 16 cents per diluted share compared to net income of $3.1 million or 19 cents per share, a year ago.

Blue Nile stock ((NILE)) rose 96 cents to $46.08.

Papa John’s International, Inc, franchises pizza delivery said first quarter revenues rose 11% to $289 million from $260.6 million a year ago. Net income in the quarter fell to $8.6 million or 30 cents per diluted share compared to net income of $13.2 million or 43 cents per share, a year ago.

Papa John’s International ((PZZA)) stock fell 19 cents to close at $26.91.

Churchill Downs Incorporated, an owner of pari-mutuel wagering properties reported first quarter revenues rose 37% to $65.7 million from $47.8 million a year ago. Net income in the quarter was $0.8 million or 6 cents per diluted compared to net loss of $8.4 million or $0.61 cents per share, a year ago.

Churchill Downs stock ((CHDN)) added 43 cents to $46.19.

Eagle Bulk Shipping Inc, ocean transportation provider said first quarter revenues increased 36% to $36.7 million from $26.9 million a year ago. Net income in the quarter was $14.3 million or 31 cents per diluted share compared to net income of $4.5 million or 23 cents per share, a year ago.

Eagle Bulk ((EGLE)) rose $2.60 to $33.29.

Eagle Materials Inc, a manufacturer of building materials said fourth quarter revenues declined 24% to $144.8 million from $191.7 million a year ago. Net income in the quarter was $3.2 million or 7 cents per diluted share compared to net income of $36.5 million or 75 cents per share, a year ago.

Tesoro Corporation, an independent petroleum refiner said first quarter revenues rose 68.5% to $6.53 billion from $3.88 billion a year ago. Net loss in the quarter was $82 million or 60 cents per diluted share compared to net income of $116 million or 84 cents per share, a year ago.

Tesoro stock ((TSO)) stock rose 50 cents to $25.50.

Asian markets review

In Tokyo Nikkei 225 Index closed higher 53.22 or 0.38% to 14,102.48, in Hong Kong Hang Seng index decreased 651.92 or 2.48% closed to 25,610.21. In Australia ASX 200 index lower 33.00 or 0.58% to close 5,668.40. In Malaysia KL Composite index increased 11.06 or 0.87% closed to 1,287.15.

In South Korea Kospi Index decreased 5.05 or 0.27% to close at 1,854.01, in Thailand SET index closed higher 2.88 or 0.34% to 848.71 and Indonesia JSE Index edged increased 10.87 or 0.46% to 2,382.70. Sensex index in India decreased 33.70 or 0.19% to 17,339.31.