U.S. Stocks Struggle; Barclays, Ctrip Fall

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

U.S. stocks opened modestly higher. Barclays in its interim report suggested that the first quarter earnings will be lower than in the quarter a year ago and took a charge of

[R]10:00AM New York – U.S. stocks open modestly higher after Barclays reported loss related to credit markets, GE puts its appliance unit on the block and CBS acquires CNET for $1.8 billion.[/R]

CNET Networks, Inc., publisher of technology focused content has agreed to be acquired by CBS for $1.8 billion in cash. The acquisition, agreed by both parties valued the company for $11.50 per share, 32% premium from the closing price on Wednesday at $7.95. The transaction is expected to be completed in the third quarter of this year.

CNET ((CNET)) Stock jumped 42% to $11.40.

Barclays take quarterly charge, Tier 1 ratios decline

Barclays, the third largest British bank with a significant presence in the U.S. said in its interim management statement that the first quarter 2008 earnings are below that in the first quarter of 2007, without disclosing the results. The bank also stated that Tier 1 capital and equity ratios have worsened since it reported them at the end of the last year. Ratios then were 7.6% and 5.1% respectively.

The company reported a loss of £1.1 billion in the quarter and still has exposure to 14 billion pounds to subprime and other asset backed loans at the end of the first quarter. The leverage finance loan exposure is £7.4 billion.

Earnings review

Agilent Technologies, Inc, bio-analytical and electronic equipment said second quarter revenues rose 10% to $1.46 billion from $1.32 billion a year ago. Net income in the quarter jumped 41% to $173 million or 47 cents per diluted share compared to net income of $123 million or 30 cents per share, a year ago.

Agilent Technologies, Inc stock ((A)) rose $2.66 to $35.20.

Ctrip.com International, Ltd, Internet based travel service provider in China said first quarter revenues rose 47% to RMB 340 million or $49 million from $232 million a year ago. Net income in the quarter rose 52% to RMB 99 million or $14 million. Earnings per ADS were RMB 1.43 or $0.20 per diluted share compared to net income of RMB 64 million or ADS were RMB 0.96 or $0.25 per share, a year ago.

Ctrip.com International, Ltd stock ((CTRP)) fell $6.88 to $56.45.

Spartan Stores, Inc, a regional grocery retailer said fourth quarter revenues rose 10% to $570.7 million from $520.1 million a year ago. Net income in the quarter increased 12% to $8.1 million or 37 cents per diluted share compared to net income of $7.2 million or 34 cents per share, a year ago.

For the fiscal year, Net income rose 36% to $34.3 million or $1.58 per share compared with $25.2 million or $1.18 per share last year. Revenue rose 12% to $2.48 billion from $2.21 billion.

Revenue increased on the recent acquisition of Felpausch stores and a 5.2% same stores sales rise from a year ago.

Spartan Stores, Inc stock ((SPTN)) rose $1.55 to $22.79.

Asian markets review

In Tokyo Nikkei 225 Index closed higher 133.19 or 0.94% to 14,251.74, in Hong Kong Hang Seng index decreased 19.77 or 0.08% closed to 25,513.71. In Australia ASX 200 index higher 18.00 or 0.31% to close 5,890.70. In Malaysia KL Composite index increased 6.41 or 0.50% closed to 1,294.15.

In South Korea Kospi Index increased 41.96 or 2.28% to close at 1,885.71, in Thailand SET index closed higher 6.67 or 0.79% to 855.61 and Indonesia JSE Index edged increased 0.47 or 0.02% to 2,449.81. Sensex index in India increased 375.19 or 2.21% to 17,353.54.