Verizon Gains, Financials Fall

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

U.S. stocks traded lower as investors avoided financial stocks in the morning trading. Fannie Mae and Freddie Mac traded mix after the passage of housing bill over the weekend. Verizon Communications second quarter net income rose 12% on less than 4% rise in revenue. The wirelss carrier added 1.2 million net new subscribers. One of the largest buyout firms, KKR plans to sell a stake in a public offering.

[R]11:15AM New York – U.S. stocks traded lower. One of the largest buyout firms KKR plans to sell a stake in public offering.[/R]

U.S. stocks trended lower in the morning after the passage of a large housing bill over the weekend. The Federal Deposit Insurance Company on Friday seized two more banks. Investors grew weary of financial and banking stocks.

Kohlberg Kravis Roberts & Company plans to sell a stake in the company and list and may value the company as high as $15 billion, according to a report in the Wall Street Journal.

Verizon Communications ((VZ)) rose after it reported 12% increase in second quarter earnings on 3.7% rise in sales. The wireless segment also added 1.5 million to 68.7 million.

Crude oil and natural gas traded flat in the morning with future price of the near month delivery rose 4 cents to $123.30 and natural gas rose 8 cents to $9.16.

Gold fell $1.50 to $935.40 and the U.S. dollar against one euro traded at $1.5737.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 19.02 or 0.14% to 13,353.78, Hang Seng index in Hong Kong decreased 53.50 or 0.24% closed to 22,687.21. ASX 200 index in Australia decreased 48.40 or 0.97% to close 4,922.10. The KL Composite index in Malaysia increased 14.34 or 1.26% closed to 1,156.09.

The Kospi Index in South Korea increased 0.36 or 0.02% to close at 1,598.29, SET index in Thailand closed higher 0.06 or 0.01% to 685.53 and JSE Index in Indonesia increased 30.33 or 1.35% to 2,275.68. The Sensex index in India increased 74.17 or 0.52% to 14,349.11.

Earnings Review

Alberto-Culver Company, a manufacturer and marketer of personal care products including Alberto VO5, Nexxus and St. Ives reported third quarter sales rose 12.3% to $364.9 million from $325.0 million a year ago. Net income in the quarter decreased 19% to $21.1 million or 21 cents per diluted share compared to net income of $25.1 million or 25 cents per share, a year ago.

Alberto-Culver Company ((ACV)) in the morning rose $2.85 to $26.87 and in the last one year traded as high as $28.42 in March 2008 and as low as $20.92 in August 2007. Based on the yesterday’s closing price the company has a market cap of $2.42 billion.

CNA Financial Corporation, an insurance holding company reported second quarter net income in the quarter decreased 20% to $181 million or 67 cents per diluted share compared to net income of $217 million or 80 cents per share, a year ago.

CNA Financial Corporation ((CNA)) in the morning trading rose 58 cents to $25.55 and in the last one year traded as high as $46.11 in June 2007 and as low as $21.88 in July 2008. Based on the yesterday’s closing price the company has a market cap of $6.72 billion.

Fomento Economico Mexicano, S.A.B. de C.V, a holding company engaged in the beverage business reported second quarter revenues rose 7.7% to Ps. 40.569 billion from Ps. 37.676 billion a year ago. Net income in the quarter increased 9.1% to Ps. 3.494 or 83 cents per diluted share compared to net income of Ps. 3.202 or 94 cents per share, a year ago.

Fomento Economico Mexicano, ((FMX)) in the morning trading rose $2.83 to $46.50 and in the last one year traded as high as $48.12 in May 2008 and as low as $29.40 in November 2007. Based on Friday’s closing price the company has a market cap of $15.61 billion.

Grupo Aeroportuario del Pacifico, S.A.B. de C.V, operates 12 airports reported second quarter revenues rose 1.0% to Ps. 8.8 million from Ps. 8.7 million a year ago. Net income in the quarter increased 10.4% to Ps. 318,003 or 55.02 cents per ADS share compared to net income of Ps. 287,984 or 49.82 cents per ADS, a year ago.

Grupo Aeroportuario del Pacifico, ((PAC)) in the morning trading fell 80 cents to $29.50 and in the last one year traded as high as $58.02 in October 2007 and as low as $24.61 in July 2008. Based on the yesterday’s closing price the company has a market cap of $1.70 billion.

Sohu.com Inc, Chinese media firm reported second quarter revenues rose 162% to $102 million from $39.0 million a year ago. Net income in the quarter increased 85.82% to $40.2 million or $1.02 per diluted share compared to net income of $5.7 million or 15 cents per share, a year ago.

Sohu.com ((SOHU)) in the morning trading fell $2.50 to $80.32 and in the last one year traded as high as $91.50 in June 2008 and as low as $27.30 in August 2007. Based on the Friday’s closing price the company has a market cap of $3.13 billion.

Verizon Communications Inc, telecommunication services provider reported 3.7% increase in second quarter revenues to $24.1 billion from $23.0 billion a year ago. Net income in the quarter grew 11.8% to $1.88 billion or 66 cents per diluted share compared to net income of $1.68 billion or 58 cents per share, a year ago.

Verizon Communications Inc ((VZ)) in the morning trading fell 67 cents to $33.78 and in the last one year traded as high as $46.03 in October 2007 and as low as $33.00 in March 2008. Based on the Friday’s closing price the company has a market cap of $98.20 billion.