U.S. Stocks Fall, Unemployment at 5.5%

123jump.com Staff
06 Jun, 2008
New York City

U.S. stocks fell sharply after the unemployment in May rose to 5.5% from 5% in April and from 4.5% in May of 2007. The monthly payrolls declined for the second month in a row and sparked the fears of economic slow down. Market indexes, Dow, Nasdaq and S&P 500 fell more than 1.7%. National Semiconductor gained after earnings rose 8% and earnings per share increased to 28 cents. Crude oil traded 4% higher on a sustained rise in demand.

[R]1:30PM New York – U.S. stocks fell sharply after the unemployment in May rose to 5.5% and a drop in jobs.[/R]

Non-farm payroll in May fell 49,000 and unemployment rate rose to 5.5% from 5%. Employment continued to fall in construction, manufacturing and retail sectors and in healthcare and education added jobs. Average hourly earnings rose 5 cents or 0.3%.

Unemployed persons rose by 861,000 to 8.5 million or 5.5% from a month ago and from 6.9 million and 4.5% in the month a year ago.

The civilian labor force rose by 577,000 to 154.5 million in May, and the labor force participation rate increased to 66.2%. Total employment was little changed at 146.0 million. The employment-population ratio, at 62.6%, also was little changed over the month.

National Semiconductor Corporation, semiconductor product said fourth quarter revenues rose 1% to $462 million from $455.9 million a year ago. Net income in the quarter up 8% to $83.2 million or 34 cents per diluted share compared to net income of $90.1 million or 28 cents per share, a year ago.

The company''s per-share income increased because the number of shares outstanding dropped to about 246.3 million from 327.5 million. The quarter also included $9.1 million in severance costs and $20 million in stock-based compensation expense. The company expects first quarter revenue of $460 million to $475 million.

National Semiconductor Corporation ((NSM)) in the last one year traded as high as $29.69 in November 2007 and as low as $16.21 in March 2008. National Semi stock fell $1.61 to $24.27 in today’s trading.

Trina Solar Limited, an integrated manufacturer of solar photovoltaic products reported first quarter revenues rose 183.6% to $120.7 million from $42.5 million a year ago. Net income in the quarter rose 62.80% to $12.9 million or 5.12 cents per ADS compared to net income of $4.8 million or 2.23 cents per ADS, a year ago.

Trina Solar Limited ((TSL)) in the last one year traded as high as $73.06 in July 2007 and as low as $25.88 in March 2008. In today’s trading the stock fell $4.39.

Wimm-Bill-Dann Foods OJSC, Russia''s leading dairy produce firm reported first quarter sales rose 34.8% to $731.9 million from $542.8 million a year ago. Net income in the quarter rose 30.6% to $41.9 million or 95 cents per diluted share compared to net income of $32.1 million or 73 cents per share, a year ago.

Wimm-Bill-Dann Foods OJSC ((WBD)) in the last one year traded as high as $145.28 in January 2008 and as low as $81.13 in June 2007. In today’s trading the stock fell $1.96.

Focus Media reported first quarter sales surge of 215% but reported a loss of $53.8 million. National Semiconductor Corporation fourth quarter revenue rose 1% to $462 million and net income increased 8% to $83 million. Mobile home maker Nobility Homes sales in the first quarter fell 7.7% to $8.8 million and earnings declined 17.7%. Quiksilver, outdoor apparel maker reported revenue gain of 15% to $596.3 million and net loss of $206 million of $1.59 per share.