Stocks Struggle, Oil and Energy Stocks Up

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

U.S. stocks opened weak ahead of the weekly petroleum inventory report. The Asian markets closed higher and European markets traded sideways. The activist investor Carl Ichan questioned the Yahoo executives severance pay plan but failed to disclose his payment that most investors find excessive.

[R]9:30AM New York – U.S. stocks opened lower as inflation worries dominate trading sentiment. Asian markets closed higher.[/R]

Staples Inc agreed to purchase Amsterdam, the Netherlands based Corporate Express for 1.7 billion euros and assume 1 billion euro debt and pay 300 million euros for the preferred stocks. The deal was consummated after Staples revised its offer price by 28% from its initial offer in March. Corporate Express will also pay a termination fee to break a deal that the Corporate Express signed with France based Lyreco.

U.S. earnings review

Hooker Furniture Corporation, an importer and manufacturer of residential furniture reported first quarter revenues slipped 9% to $71 million from $77.3 million a year ago. Net income in the quarter decreased 65.38% to $2.6 million or 23 cents per diluted share compared to net income of $4.3 million or 33 cents per share, a year ago.

Hooker Furniture Corporation ((HOFT)) in the last one year traded as high as $24.00 in March 2008 and as low as $15.52 in November 2007.

Korn/Ferry International, a global recruitment services company reported fourth quarter revenues rose 16% to $220.5 million from $189.8 million a year ago. Net income in the quarter increased 14.01% to $15.7 million or 36 cents per diluted share compared to net income of $13.5 million or 30 cents per share, a year ago.

Korn/Ferry International ((KFY)) in the last one year traded as high as $27.13 in June 2007 and as low as $13.10 in January 2008.

World markets review

European stocks traded mixed at mid-day on rising inflation in France and current account deficit in EU27.

The CAC 40 gained 0.43% in midday to 4,781.62. In Germany the DAX 30-index advanced 17.23 points or 0.25% to 6,788.33. Stocks in Switzerland fell as the Swiss Market index retreated 36.27 points or 0.50% to 7,247.94. The FTSE 100 gained 3.20 points or 0.05% to 5,830.50.

In Tokyo Nikkei 225 Index closed higher 162.31 or 1.16% to 14,183.48, in Hong Kong Hang Seng index decreased 47.92 or 0.21% closed to 23,327.60. In Australia ASX 200 index higher 29.80 or 0.55% to close 5,467.30. In Malaysia KL Composite index decreased 1.68 or 0.14% closed to 1,229.28.

In South Korea Kospi Index increased 7.29 or 0.41% to close at 1,781.67, in Thailand SET index closed lower 0.28 or 0.04% to 791.66 and Indonesia JSE Index edged increased 0.97 or 0.04% to 2,374.78. Sensex index in India increased 296.07 or 1.99% to 15,185.32.