Volatile Oil Drives Stocks, MGIC Down 15%

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

U.S. stocks rebounded after crude oil futures fell from the intra-day record high of $143 a barrel. Corn futures fell 4%, the daily limit after the latest planting report from the USDA. The report showed 2% increase to 87.3 million acres of corn planting from its previous estimate in March. H&R Block rose after it reported profit in the latest quarter. MBIA and MGIC Investment led the decliners in the S&P 500 index.

[R]1:10PM New York – U.S. stocks rebound from the morning losses after crude oil gains were trimmed and corn futures fell.[/R]

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

Dow Jones Industrial Average gained 33.30 or 0.29% to 11,379.81 S&P 500 gained 7.32 or 0.57% to 1,285.70.

Market Indexes

Of the 30 stocks in Dow Jones Industrial Average 17 stocks gained and 13 declined.

Citigroup led the decliners in the Dow Jones Industrial Average with a loss of 2.90% or $0.50, to $16.75 followed by losses in AIG of 2.70% or $0.75, to $27.00, in General Motors of 1.39% or $0.16, to $11.39, in JPMorgan Chase of 1.28% or $0.45, to $34.60 and in Boeing of 0.88% or $0.59, to $66.33.

Merck & Co led the gainers in the Dow Jones Industrial Average index with a rise of 2.73% or $1.01, to $37.99 followed by increases in Verizon Communication of 2.71% or $0.93, to $35.21, in Alcoa Inc of 2.09% or $0.74, to $36.12, in Pfizer Inc of 1.85% or $0.32 to $17.60 and in General Electric of 1.59% or $0.42 to $26.68.

Of the stocks in S&P 500 index, 292 increased 201 declined and 7 remained unchanged.

MGIC Investment Corp led the decliners in the S&P 500 index with a loss of 15.24% or $1.06, to $5.92 followed by in losses in MBIA Inc of 9.35% or $0.39, to $3.78, in Citigroup Inc of 8.12% or $0.65, to $7.35, in XL Capital Ltd of 7.28% or $1.73, to $22.04 and in Wachovia Corp of 6.95% or $1.13, to $15.09.

Campbell Soup Co led the gainers in the S&P 500 index with a rise of 6.18% or $1.99, to $34.17 followed by increases in Sprint Nextel Co of 6.17% or $0.55, to $9.46, in H&R Block Inc of 5.09% or $1.06, to $21.88, in Cabot Oil & Gas of 5.00% or $3.26 to $68.45 and in Devon Energy & Co of 4.62% or $5.30 to $120.18.

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.