Boeing, PepsiCo Drop; Dollar Up, Oil Down

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

Crude oil continues its slide from the record high and dropped 1.6% to below $126 a barrel. The U.S. dollar edged higher after lawmakers passed a resolution to inject funds in Fannie Mae and Freddie Mac. In the earnings news, Boeing earnings fell 14% to $1.16 per share on flat revenues. AT&T second quarter revenue rose 4.7% and net income increased 23% to $3.8 billion or 63 cents per share. Pfizer revenue increased 9% and net income surged 54% to $2.8 billion or 41 cents per share.

[R]10:05AM New York – Crude oil futures fell, the U.S. dollar gains and lawmakers pass the resolution to inject capital in Fannie Mac and Freddie Mae. Boeing and PepsiCo drop after earnings release.[/R]

Stocks in the morning trading in New York traded mixed after weaker than expected earnings from Boeing Company and PepsiCo, Inc. The U.S. dollar edged higher and prices of crude oil and other commodities dropped.

Crude oil in the morning trading in New York dropped 2% or $2.23 to $125.70 and the U.S. dollar edged higher against yen and euro. One dollar fetched 107.675 yen and one euro exchanged for $1.5739.

Hurricane Dolly is targeting south of the most of the oil installations in the Gulf of Mexico. The category 2 hurricane is not likely to hit oil producing areas of the U.S. and Mexico.

The Boeing Company, the world's largest plane maker reported second quarter revenues of $17.0 billion, flat from a year ago. Net income in the quarter decreased 14% to $852 million or $1.16 per diluted share compared to net income of $1.05 billion or $1.35 per share, a year ago.

The Boeing Company ((BA)) in the morning trading fell $2.22 to $66.92 and in the last one year traded as high as $107.83 in October 2007 and as low as $62.02 in July 2008. Based on the yesterday’s closing price the company has a market cap of $52.05 billion.

AT&T Inc, the largest U.S. telephone services provider reported second quarter revenues rose 4.7% to $30.9 billion from $29.48 billion a year ago. Net income in the quarter increased 23.07% to $3.77 billion or 63 cents per diluted share compared to net income of $2.90 billion or 47 cents per share, a year ago.

AT&T Inc ((T)) in the morning trading rose 66 cents to $32.48 and in the last one year traded as high as $42.97 in September 2007 and as low as $31.17 in July 2008. Based on the yesterday’s closing price the company has a market cap of $189.04 billion.

Pfizer Inc, drug maker reported second quarter revenues rose 9% to $12.13 billion from $11.08 billion a year ago. Net income in the quarter increased 54.15% to $2.77 billion or 41 cents per diluted share compared to net income of $1.27 billion or 18 cents per share, a year ago.

Pfizer Inc ((PFE)) in the morning trading rose 41 cents to $18.75 and in the last one year traded as high as $25.71 in October 2007 and as low as $17.12 in June 2008. Based on the yesterday’s closing price the company has a market cap of $124.14 billion.

PepsiCo, Inc, a global snack and beverage company reported second quarter revenues rose 14% to $10.9 billion from $9.6 billion a year ago. Net income in the quarter increased 9% to $1.6 billion or $1.05 per diluted share compared to net income of $1.5 billion or 94 cents per share, a year ago.

PepsiCo, Inc ((PEP)) in the morning trading rose 6 cents to $66.26 and in the last one year traded as high as $79.79 in January 2008 and as low as $63.28 in June 2008. Based on the yesterday’s closing price the company has a market cap of $104.98 billion.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 127.97 or 0.97% to 13,312.93, Hang Seng index in Hong Kong increased 607.07 or 2.69% closed to 23,134.55. ASX 200 index in Australia increased 99.70 or 1.99% to close 5,105.30. The KL Composite index in Malaysia increased 29.84 or 2.69% closed to 1,139.41.

The Kospi Index in South Korea increased 30.53 or 1.96% to close at 1,591.76, SET index in Thailand closed higher 11.99 or 1.76% to 694.14 and JSE Index in Indonesia increased 13.09 or 0.59% to 2,225.84. The Sensex index in India increased 838.08 or 5.94% to 14,942.28.