Retail Sales, Jobless Claims Lift Stocks

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

U.S. stocks opened higher after the release of jobless data and same store retail sales. Discount retailers led gains in sales in April as families look for ways to save money. Costco, for the twelve months in a row reported same store sales rise above 5%. In April sales rose 6%, excluding gasoline sales. Wal-Mart sales rose 3.2%. The ECB and the Bank of England left rates unchanged at 4% and 5% respectively.

[R]9:45AM New York – U.S. stocks opened higher after jobless claims and same-store sales data.[/R]

U.S. stocks opened higher after the release of April same-store sales. Costco continued to lead store sales growth as more families look shop at discount retailer.

Costco leads same store sales gain

Costco, in one of the few retailers that have managed to show more than 5% same store sales rise for twelve months in a row. Costco same store sales rose 8% and excluding fuel sales rose 6% in the U.S. International sales rose 14% in April. Wal-Mart Stores reported sales rise of 3.2% in April as the company offered more drugs on discounts.

Jobless claims fall

Initial jobless claims filed for the week ending last week fell 18,000 to 365,000 and continuing claims in the period fell 10,000 to 3.02 million.

European central banks leave rates unchanged

The Bank of England left key rate at 5% and European Central Bank left rates unchanged at 4% today. Central banks around the world are fighting inflation, unlike the Federal Reserve in the U.S. which is more concerned with the falling economic growth.

Earnings review

News Corporation reported third quarter sales rise of 16% to $8.75 billion from a year ago revenue of $7.5 billion. Earnings in the period rose to $2.7 billion from $871 million on tax-free sale of certain assets and stock exchange with Liberty Media. Earnings per class A share rose to 91 cents from 29 cents in the prior year.

News Corp ((NWS.A)) stock rose 47 cents to $18.89.

Blackboard Inc, a provider of enterprise software applications said first quarter revenues increased 24% to $68.5 million from $55.2 million a year ago. Net loss in the quarter was $3.3 million or 11 cents per diluted compared to net income of $1.9 million or 7 cents per share, a year ago.

Blackboard Inc ((BBBB)) stock added $1.22 to $36.69.

Expeditors International of Washington, Inc, engaged in the business of providing global logistics services said first quarter revenues increased 12% to $374.3 million from $334.1 million a year ago. Net income in the quarter increased 11% to $66.4 million or 30 cents per diluted compared to net income of $59.2 million or 27 cents per share, a year ago.

Expeditors International ((EXPD)) stock increased $1.55 to $48.49.

The Dun & Bradstreet Corporation, a source of commercial information said first quarter revenues increased 8% to $414.7 million from $379 million a year ago. Net income in the quarter increased 23% to $61.2 million or 1.07 cents per diluted compared to net income of $52.7 million or 87 cents per share, a year ago.

Dun & Bradstreet ((DNB)) stock gained $3.81 to $89.52.

ZipRealty, Inc, an Internet enabled residential real estate brokerage firm said first quarter revenues declined 11.8% to $20.6 million from $23.4 million a year ago. Net loss in the quarter was $7.3 million or 31 cents per diluted compared to net loss of $3.1 million or 14 cents per share, a year ago.

ZipRealty ((ZIPR)) stock traded at $5.08.

Asian Markets review

In Tokyo Nikkei 225 Index closed lower 159.22 or 1.13% to 13,943.26, in Hong Kong Hang Seng index decreased 160.42 or 0.63% closed to 25,449.79. In Australia ASX 200 index higher 54.80 or 0.97% to close 5,723.20. In Malaysia KL Composite index decreased 6.80 or 0.53% closed to 1,280.35.

In South Korea Kospi Index decreased 6.01 or 0.32% to close at 1,848.00, in Thailand SET index closed higher 1.46 or 0.17% to 850.17 and Indonesia JSE Index edged decreased 5.77 or 0.24% to 2,376.93. Sensex index in India decreased 258.66 or 1.49% to 17,080.65.