Yahoo Rebounds, European Stocks Higher

123jump.com Staff
02 Jul, 2008
New York City

U.S. stocks are expected to open higher in the morning trading and European stocks are advancing. Banks and pharmaceuticals lifted the market indexes in Europe. A private survey of private employers suggested a loss of 79,000 jobs in the U.S. in June. Yahoo deal appears to be in focus again after Microsoft, Time Warner and News Corp may make a second run at the company. India soared 5% in the overnight trading.

[R]9:15AM New York – U.S. stocks are likely to open higher on a rise in the European markets. India soared more than 5%.[/R]

A private survey of employers suggested that 79,000 jobs were lost in U.S. in June. The latest monthly survey of private employers conducted by ADP also lowered the payroll gains by 25,000 in May. The ADP survey includes only the private employers and excludes the government jobs has in the past overstated new job creations in the private sector. The Department of Labor is expected to report loss of 65,000 jobs in June.

Yahoo gained in the pre-market trading after Microsoft and other media companies are likely to make a revised approach at the company. Microsoft is expected to keep the search business and MySpace controlled by News Corp and AOL controlled by Time Warner Inc would divvy up the other properties of Yahoo. The news first reported in the Wall Street Journal lifted the stock 6% in the morning trading.

Asia Markets Review

In Tokyo Nikkei 225 Index closed lower 176.83 or 1.31% to 13,286.37, in Hong Kong Hang Seng index decreased 397.56 or 1.80% closed to 21,704.45. In Australia ASX 200 index lower 44.10 or 0.86% to close 5,094.80. In Malaysia KL Composite index decreased 21.13 or 1.80% closed to 1,153.70.

In South Korea Kospi Index decreased 42.86 or 2.57% to close at 1,623.60, in Thailand SET index closed lower 8.58 or 1.12% to 760.01 and Indonesia JSE Index edged decreased 0.33 or 0.01% to 2,378.47. Sensex index in India increased 702.94 or 5.42% to 13,664.62.

European Markets Review

European stocks rallied in the morning trading after banks and drug stocks gained. UBS rose 2.5% after it said that may not need additional capital for now. Deutsche Bank rose 5% after it affirmed that it will declare profit in the second quarter. Societe Generale rose 2% after its Deputy Chief Executive Officer said that the bank has taken ‘bulk’ of the write downs in its sub-prime loan portfolio in an interview with Bloomberg Television.

In London FTSE 100 Index traded higher 82.30 or 1.50% to 5,562.20, in Paris CAC 40 Index increased 31.96 or 0.74% to 4,373.17 and in Frankfurt DAX index edged higher by 70.27 or 1.11% to 6,375.21. In Zurich trading SMI increased 63.37 or 0.93% to close at 6,913.04.

Earnings Review

Apollo Group, Inc, a for-profit education company that owns the University of Phoenix said third quarter revenues rose 14% to $835.2 million from $733.4 million a year ago. Net income in the quarter rose 5.53% to $139.1 million or 85 cents per diluted share compared to net income of $131.4 million or 75 cents per share, a year ago.

Apollo Group, Inc ((APOL)) in the last one year traded as high as $81.68 in February 2008 and as low as $37.92 in March 2008. Based on the yesterday’s closing price the company has a market cap of $7.78 billion.

CardioDynamics International Corporation, health care equipment company said second quarter sales increased 15% to $6.2 million from $5.4 million a year ago. Net loss in the quarter was $732,000 or 10 cents per diluted share compared to net loss of $13.0 million or $1.86 per share, a year ago.

CardioDynamics International Corporation ((CDIC)) in the last one year traded as high as $2.02 in February 2007 and as low as $0.20 in March 2008. Based on the yesterday’s closing price the company has a market cap of $10.07 million.