U.S. Stocks Gain; U.S. Steel, Amgen Rise

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

U.S. stocks traded higher in the morning after earnings from U.S. Steel and Amgen beat expectations. U.S. Steel surged nearly 10% after it reported second quarter earnings surge of 55% to $668 million or $5.65 per share. Amgen reported earnings of $1.14 a share. Valero, the largest crude oil refiner reported earnings decline of 67% to $734 million or $1.37 a share.

[R]9:30AM New York – Merrill Lynch reported $8.5 billion in stock sale and took a charge of $5.7 billion for the third quarter.[/R]

Merrill Lynch plans to raise $8.5 billion in capital and sell $30 billion of its troubled loans at a steep discount. Merrill Lynch stock fell $1.48 to $22.84. Merrill Lynch will also take $5.7 billion in asset write-down in the third quarter. So far Merrill has taken $41 billion in asset write-down since the credit crisis began a year ago.

Europe Markets Review

In London FTSE 100 Index traded higher 25.70 or 0.48% to 5,338.30, in Paris CAC 40 Index decreased 46.46 or 1.07% to 4,277.99 and in Frankfurt DAX index traded lower 33.69 or 0.53% to 6,317.46. In Zurich trading SMI decreased 38.64 or 0.55% to 6,930.29.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 194.33 or 1.46% to 13,159.45, Hang Seng index in Hong Kong decreased 429.21 or 1.89% closed to 22,258.00. ASX 200 index in Australia decreased 74.70 or 1.52% to close 4,847.40. The KL Composite index in Malaysia decreased 3.29 or 0.29% closed to 1,150.80.

The Kospi Index in South Korea decreased 31.09 or 1.95% to close at 1,567.20, SET index in Thailand closed lower 8.80 or 1.28% to 676.73 and JSE Index in Indonesia increased 3.01 or 0.13% to 2,278.68. The Sensex index in India decreased 557.57 or 3.89% to 13,791.54.

Earnings Review

The Hartford Financial Services Group, Inc, one of the nation''s largest diversified financial services companies said second quarter net income fell 13% to $543 million or $1.73 per diluted share compared to net income of $627 million or $1.96 per share, a year ago.

The Hartford Financial Services Group, Inc ((HIG)) in the last one year traded as high as $99.21 in October 2007 and as low as $53.20 in July 2008. Based on the yesterday’s closing price the company has a market cap of $18.34 billion.

Rent-A-Center, Inc, the nation’s largest rent-to-own operator said second quarter revenues decreased 0.72% to $719.0 million from $724.2 million a year ago. Net income in the quarter falls 9.54% to $37.7 million or 56 cents per diluted share compared to net income of $41.3 million or 58 cents per share, a year ago. Same store sales increased 0.9%.

Rent-A-Center, Inc ((RCII)) in the last one year traded as high as $24.96 in July 2007 and as low as $11.67 in January 2008. Based on the yesterday’s closing price the company has a market cap of $1.57 billion.

BE Aerospace, Inc, the world''s biggest supplier of aircraft interior products reported second quarter sales rose 31.1% to $522.2 million from $398.2 million a year ago. Net income in the quarter increased 47.30% to $53.9 million or 59 cents per diluted share compared to net income of $28.4 million or 31 cents per share, a year ago.

BE Aerospace, Inc ((BEAV)) in the last one year traded as high as $54.09 in December 2007 and as low as $20.62 in July 2008. Based on the yesterday’s closing price the company has a market cap of $2.31 billion.

Group 1 Automotive, Inc, one of the largest auto retailers reported second quarter revenues fell 7.1% to $1.5 billion from $1.6 billion a year ago. Net income in the quarter decreased 31.35% to $18.5 million or 82 cents per diluted share compared to net income of $24.3 million or $1.02 per share, a year ago.

Group 1 Automotive, Inc ((GPI)) in the last one year traded as high as $40.00 in September 2007 and as low as $14.53 in July 2008. Based on the yesterday’s closing price the company has a market cap of $399.28 million.

Martha Stewart Living Omnimedia, Inc, a media and merchandising company reported second quarter revenues rose 5% to $77.1 million from $73.4 million a year ago. Net income in the quarter was $328,000 or $0.01 per diluted share compared to net loss of $6.7 million or 13 cents per share, a year ago.

Martha Stewart Living Omnimedia, Inc ((MSO)) in the last one year traded as high as $15.48 in August 2007 and as low as $5.22 in January 2008. Based on the yesterday’s closing price the company has a market cap of $414.33 million.

The McGraw-Hill Companies, Inc, a global information services provider serving the financial services reported second quarter revenues slipped 2.6% to $1.67 billion from $1.72 billion a year ago. Net income in the quarter slipped 23.4% to $212.3 million or 66 cents per diluted share compared to net income of $277.1 million or 79 cents per share, a year ago.

The McGraw-Hill Companies, Inc ((MHP)) in the last one year traded as high as $61.62 in July 2007 and as low as $33.91 in March 2008. Based on the yesterday’s closing price the company has a market cap of $11.96 billion.

United States Steel Corporation, an integrated steel producer reported second quarter revenues increased 60% to $6.74 billion from $4.23 billion a year ago. Net income in the quarter rose 55% to $668 million or $5.65 per diluted share compared to net income of $302 million or $2.54 per share, a year ago.

United States Steel Corporation ((X)) in the last one year traded as high as $196.00 in June 2008 and as low as $74.41 in August 2007. Based on the yesterday’s closing price the company has a market cap of $17.11 billion.

Valero Energy Corporation, North America''s largest crude oil refiner reported second quarter revenues rose 34% to $36.6 billion from $24.2 billion a year ago. Net income in the quarter fell 67% to $734 million or $1.37 per diluted share compared to net income of $2.25 billion or $3.89 per share, a year ago.

Valero Energy Corporation ((VLO)) in the last one year traded as high as $75.75 in October 2007 and as low as $29.70 in July 2008. Based on the yesterday’s closing price the company has a market cap of $16.81 billion.