Industrial Output Grows 0.9%

Elena
17 Nov, 2005
New York City

Asian-Pacific benchmarks closed broadly higher, led by the Nikkei which rose 1.7%, hitting a fresh four-year high of 14,411,79. Seoul''''s Kospi also reached an all-time high of 1,272,80. European stocks gained at mid-day on mergers and commodities. In U.S. corporate news, Applied Materials posted Q3 46% profit drop but beat estimates by a penny. Oil producer ConocoPhillips was downgraded by J.P. Morgan to neutral from overweight.

U.S. MARKET AVERAGES

U.S. stock futures are indicating an upward bias after lackluster trading yesterday when equities remained flat but other markets gained on sharp oil prices jump. Early Thursday sentiment was boosted by gains in overseas markets, largely ignoring a downgrade of oil major ConocoPhilips.

Dow Jones futures were recently up 24 points, S&P 500 futures grew 2.8 points, and Nasdaq 100 futures rose 3.5 points.

Among stocks in focus today, chip equipment maker Applied Materials reported a 46% decline in quarterly profit, though it beat analyst estimate by a penny. The company also said new orders rose 15%, above the company''s earlier target.

In corporate news, IMS Health agreed to let Holland''s VNU N.V. cancel its $7 billion acquisition of it, as a majority of VNU shareholders opposed the deal. IMS Health in response said its board has approved the buyback of 10 million more shares, on top of its existing plan that still allows for 4.4 million shares to be bought back.

J.P. Morgan cut oil producer ConocoPhillips to neutral from overweight, saying higher capital spending may pressure returns and that production lags peer group.

On the U.S. data front, weekly jobless claims, October housing starts data and the Philly Fed manufacturing survey are due out later in the session.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks finished mostly in the positive with the Nikkei in the lead, rising 1.7% and hitting a fresh four-year high of 14,411,79 on strong dollar and bargain hunting. Hong Kong’s Hang Seng was another gainer, climbing 0.9%, followed by South Korea’s Kospi, up 0.2% after reaching an all-time peak of 1,272,80. The only decliner was Taipei’s Weighted Times, down 0.4%.

European markets advanced at mid-day dealings, supported by merger-and-acquisition news and rising commodities prices which boosted companies like BP and Rio Tinto. The automotive stocks slightly offset gains as the sector fell on Renault’s cautious profit outlook. The German DAX 30 rose 0.9%, the French CAC 40 climbed 0.6%, and London’s FTSE 100 gained 0.7%. The euro slipped to $1.665.

OIL, METALS, CURRENCIES

Crude oil prices hit $58 a barrel on cold weather in Europe and winter season supply concerns. Light sweet crude December delivery rose 12 cents to $58 a barrel in electronic trading on the Nymex. London Brent gained 11 cents to $56.11.

Gold prices neared an 18-year high in European trading. In London the precious metal was fixed at $480.75 per troy ounce, up from $475.75. In Zurich gold advanced to $481.28 from $476.45. In Hong Kong gold rose $7 to close at $479.65. Silver traded unchanged at $7.78.

The U.S. dollar traded mixed against other major currencies. The euro was quoted at $1.1669, down from $1.1686. The dollar bought 118.84 yen, down from 119.05. The British pound traded at $1.7178, up from $1.7163.

EARNINGS NEWS

Claire's Stores, Inc ((CLE)), retailer, reported Q3 net profit jumped 40% to 38 cents a share, from the year-ago period. Sales rose 10% and same-store sales 9%, partly on the success of the retailer''s back-to-school merchandise. The group stated it sees Q4 earnings excluding tax costs in the range of 66 cents to 68 cents a share on sales up between 5% and 6%.

Vivendi Universal ((V)), French media and telecommunications group, stated Q3 profit from continuing operations dropped 36% to 894 million euros ($1.04 billion) from the year-ago quarter. Earnings without minority interests fell 36% to 647 million euros. Adjusted earnings went 17% down to 525 million euros. Sales for the period advanced 12% to 4.87 billion euros.

Limited Brands Inc ((LTD)), retailer, reported a Q3 loss of 3 cents per share, down from a year-ago profit of 16 cents per share on weakness in its apparel division, which led to steep markdowns on merchandise. Sales were flat at $1.89 billion. Same-store sales dropped about 3 %.

Williams-Sonoma, Inc ((WSM)), home products seller, announced that Q3 net income advanced 30% to 31 cents a share, on 14.5% revenue growth, beating analyst estimate of 30 cents a share. Comparable store sales increased 4.4% and footage advanced 10.6%.

Shoe Carnival, Inc.((SCVL)), retailer of value-priced footwear and accessories, announced record sales and earnings for Q3. Net income rose 39.5% per share to 53 cents from 38 cents per share in the comparable period last year. Net sales for Q3 increased 12.3 % to a record $182.7 million from $162.7 million last year. Comparable store sales increased by 8.3 % for the 13-week period. Gross profit margin for latest quarter advanced to 29.5% from 29.1 % a year-ago. Selling, general and administrative expenses, as a percentage of sales, dropped to 23.1 % from 24.1 % for the comparable period.

Johnson Outdoors Inc((JOUT)), outdoor recreation company, announced that Q4 net earnings improved to a net loss of 39 cents per share, up vs. a net loss of 44 cents per share for the prior year period. Sales rose to $77.1 million in Q4, an increase of 2% compared to $75.6 million for the same period last year.