Record Crude, Stocks Flat

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

U.S. stocks open flat with a negative bias as oil continues to scale new highs in Asian and European trading. Stocks are likely to come under pressure as investors revive the fears of rising inflation and worries of the economic slowdown. Lowes, the second largest hardware retailer chain reported first quarter sales declined 1.3% to $12 billion and earnings fell 18% to $607 million.

[R]9:30AM New York – U.S. stocks indicate flat opening.[/R]

U.S. stocks are expected to open flat as oil continues to scale new highs in Asian and European trading. Stocks are likely to come under pressure as investors revive the fears of rising inflation and worries of the economic slowdown.

Microsoft returned to the deal negotiations with Yahoo and suggested a narrower focus and said it reserves the right to restart the negotiations when it wants. The new negotiations focus on search technology and advertising placements and not on the total acquisition for the company.

Lowe’s Companies reported first quarter revenue fell 1.3% to $12.00 billion from $12.2 billion and earnings in the quarter declined 17.9% to $607 million. The home improvement retail chain reported diluted earnings per share fell 14.6% to 41 cents from 48 cents.

The company expects to open 23 new stores in the second quarter on top of the 20 store opening in the first quarter and expects the sales to improve 1% from a year ago. Same store sales are expected to decline between 6% and 8%. The company estimates second quarter earnings per share to be between 54 cents and 59 cents.

Lowe’s stock ((LOW)) in the pre-market trading fell 98 cents or 4% to $24.89.

Excel Maritime, the dry bulk ocean freight carrier reported first quarter revenue jumped 94% to $69.8 million and earnings rose to $36 million. Net income in the quarter increased 213% to $38.5 million or $1.93 per share compared to $12.3 million or 61 cents per share in the first quarter of 2007. In the quarter the freight carrier operated 18 vessels and at a net daily rate of $41,754.

The company declared 20 cents per share quarterly dividend payable on June 16th.

Excel Maritime stock ((EXM)) in the pre-market trading surged 3.3% or $1.89 to $57.72.

World markets

In European markets trading at mid day Swiss market index led the region with a rise of 1% and other indexes in Germany, France and UK edged between 0.3% and 0.5% higher. Milan index dropped 2.75%.

In Tokyo Nikkei 225 Index closed higher 50.13 or 0.35% to 14,269.61, in Hong Kong Hang Seng index increased 123.37 or 0.48% closed to 25,742.23. In Australia ASX 200 index higher 18.40 or 0.31% to close 5,949.40. Markets in Malaysia are closed today.

In South Korea Kospi Index decreased 3.51 or 0.19% to close at 1,885.37. Indonesia JSE Index edged increased 25.42 or 1.71% to 2,510.96. Market in Thailand and India are closed today.