Crude Oil at $143, Robbins Surge 12%

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

U.S. stocks opened sharply lower after crude oil prices reached to a record high of $143 a barrel. Transportations and auto makers declined. AMR Corp, Delta, UAL and Southwest fell. In the overnight trading Asian markets fell, tracking the weakness in the U.S. markets. European markets traded lower with another fall in Swedish and Spanish stocks. Robbins & Meyer, industrial equipment maker surged 12% after it reported earnings gain of 50%.

[R]10:20AM New York – U.S. stocks fell in the morning after crude oil rose to a record high of $143 a barrel.[/R]

U.S. stocks in the morning trading quickly fell after crude oil futures rose to a record high. Transportation and auto manufacturer stocks declined. At the end of the second quarter, stocks are now nearly 20% lower from peak and earnings expectations for the current quarter are revised lower.

United Airlines, Delta, Jet Blue and American Airlines parent AMR Corp fell. General Motors and Ford declined as well.

Whole Foods ((WFMI)) fell $1.06 to $23.59 and traded at a five-year low. CarMax dropped 54 cents to $14.32. Blue Nile declined 5% or $2.37 to $44.55.


Asian Markets Review

In Tokyo Nikkei 225 Index closed lower 62.98 or 0.46% to 13,481.38, in Hong Kong Hang Seng index increased 59.66 or 0.27% closed to 22,102.01. In Australia ASX 200 index lower 21.70 or 0.41% to close 5,215.30. In Malaysia KL Composite index decreased 3.97 or 0.33% closed to 1,186.57.

In South Korea Kospi Index decreased 9.53 or 0.57% to close at 1,674.92, in Thailand SET index closed lower 7.14 or 0.92% to 768.59 and Indonesia JSE Index edged increased 16.99 or 0.73% to 2,349.10. Sensex index in India decreased 340.62 or 2.47% to 13,461.60.


H&R Block, Inc, a financial services company reported fourth quarter revenues increased 11% to $2.6 billion from $2.3 billion a year ago. Net income in the quarter was $543.6 million or $1.66 per diluted share compared to net loss of $85.6 million or 26 cents per share, a year ago.

Fiscal 2008 earnings from continuing operations grew 21% to $454.5 million, or $1.39 per share, compared to $374.3 million, or $1.15 per share for the prior year. Full year revenues rose 10% to $4.4 billion, primarily reflecting growth in tax services. Consolidated net loss for the year ended April 30, 2008 was $308.6 million, or $0.94 per share, compared with a net loss of $433.7 million, or $1.33 per share, for full year fiscal 2007. The Company expects fiscal 2009 earnings from continuing operations to be in the range of $1.60 to $1.70 per share.

H&R Block, Inc ((HRB)) in the last one year traded as high as $24.64 in May 2008 and as low as $16.89 in January 2008. Based on the yesterday’s closing price the company has a market cap of $6.77 billion. In today’s trading, H&R Block stock traded up $1.45 to $22.26.

LCC International, Inc, a wireless voice and data turn-key services provider reported first quarter revenues increased 41% to $41.9 million from $24.6 million a year ago. Net loss in the quarter was $6.2 million or 23 cents per diluted share compared to net loss of $9.3 million or 36 cents per share, a year ago.

LCC International, Inc ((LCCI)) in the last one year traded as high as $4.85 in July 2007 and as low as $0.90 in June 2008. Based on the yesterday’s closing price the company has a market cap of $24.87 million. LCC stock in the morning trading was unchanged at 94 cents.

Mesa Air Group, Inc, scheduled passenger carrier reported second quarter revenues increased 7.50% to $320.3 million from $296.3 million a year ago. Net income in the quarter was $9.4 million or 29 cents per diluted share compared to net loss of $23.9 million or 75 cents per share, a year ago.

Mesa Air Group, Inc ((MESA)) in the last one year traded as high as $7.25 in July 2007 and as low as $0.42 in June 2008. Based on the yesterday’s closing price the company has a market cap of $12.10 million. Mesa stock rose 5 cents to 50 cents.

Robbins & Myers Inc, Industrial machinery maker reported third quarter revenues increased 17% to $201 million from $171.4 million a year ago. Net income in the quarter rose 50% to $26.5 million or 76 cents per diluted share compared to net income of $13.2 million or 39 cents per share, a year ago.

Robbins & Myers Inc ((RBN)) in the last one year traded as high as $44.37 in May 2008 and as low as $21.59 in August 2007. Based on the yesterday’s closing price the company has a market cap of $1.42 billion. Robbins & Myers stock rose $5.97 to $47.05.