Jobless Rate Rises, GM Loss of $15.5. B

123jump.com Staff
01 Aug, 2008
New York City

U.S. stocks fell after a rise in unemployment rate in July and weak earnings from several companies including General Motors. In the month U.S. shed 51,000 jobs matching losses in June and unemployment rate rose to 5.7% from 5.5% in June. Except government sector all other sectors in the economy shed jobs. General Motors reported quarterly loss of $15.5 billion or $27.33 a share on worldwide sales decline of 18% to $38.2 billion.

[R]10:15AM New York – U.S. stocks fell after unemployment rate rose to 5.7% and the economy lost 51,000 jobs in the month.[/R]

U.S. stock market indexes fell after jobless rate rose to 5.7% in July, General Motors reported $15.5 billion in the latest quarterly loss and economic worries haunted investors. Dow Jones Industrial Average fell 86.55 to 11,291.79, Nasadaq declined 32.62 to 2,293.08 and S&P 500 index lost 9.60 to 1,257.

The U.S. unemployment rate rose and job losses in July matched the declines in June. Employers shed 51,000 jobs in July and in June and the economy has lost jobs for every month of this year. The unemployment rate jumped to 5.7% in July from 5.5% I June and was as low as 5% in April.

Service sector decreased payroll for the first time in four months, since March and 5,000 people lost their jobs in the month. Retail payrolls fell 16,500 and financial sector employment was unchanged. However, government added 25,000 in July after adding 43,000 in June as government agencies at federal and state level expand for the last twelve months in a row.

Alpha Natural Resources, Inc ((ANR)) rose 6% or $6.22 to $105.20 after media speculation in Europe suggested that Arcelor Mittal may make a higher offer for the company than currently offered $8.8 billion from Cleveland-Cliffs Inc.

Dolby Laboratories fell $2.05 to $38.64 after it reported third quarter revenue 29% and earnings rise of 36%.

General Motors ((GM)) dropped 84 cents to $10.24 after it reported second quarter loss of $15.5 billion or $27.33 a share compared to $891 million profit or $1.56 a share. The company worldwide sales dropped 18% to $38.2 billion. GM reported fourth quarterly loss in a row as in the quarter net cash outflow was $3.6 billion. Even after what company claims to be one-time charges the company lost $6.3 billion or $11.21 a share.

Monster Worldwide ((MNST)) dropped $1.05 after it reported second quarter revenue rise of 9% and earnings gain of 7%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 282.22 or 2.11% to 13,094.59, Hang Seng index in Hong Kong increased 131.50 or 0.58% closed to 22,862.60. ASX 200 index in Australia decreased 73.40 or 1.47% to close 4,904.00. The KL Composite index in Malaysia decreased 3.99 or 0.34% closed to 1,159.10.

The Kospi Index in South Korea decreased 20.90 or 1.31% to close at 1,573.77, SET index in Thailand closed higher 2.34 or 0.35% to 678.66 and JSE Index in Indonesia decreased 55.76 or 2.42% to 2,248.75. The Sensex index in India increased 300.94 or 2.10% to 14,656.69.

Earnings Review

Atlas Pipeline Partners, L.P, a provider of natural gas gathering services said second quarter revenues increased 36.02% to $149.1 million from $95.4 million a year ago. Net loss in the quarter was $38.2 million or $1.40 per diluted share compared to net loss of $1.3 million or 6 cents per share, a year ago.

Atlas Pipeline Partners, L.P ((APL)) in the last one year traded as high as $54.33 in August 2007 and as low as $34.96 in July 2008. Based on the yesterday’s closing price the company has a market cap of $1.45 billion.

Chiquita Brands International, Inc, producer of bananas and packaged salads said second quarter sales increased 6% to $995 million from $934 million a year ago. Net income in the quarter rose 86.15% to $62.1 million or $1.37 per diluted share compared to net income of $8.6 million or 20 cents per share, a year ago.

Chiquita Brands International, Inc ((CQB)) in the last one year traded as high as $25.77 in June 2008 and as low as $12.51 in July 2008. Based on the yesterday’s closing price the company has a market cap of $664.59 million.

Dolby Laboratories, Inc, audio technology licensor said third quarter revenues increased 29% to $154.3 million from $119.6 million a year ago. Net income in the quarter rose 36.08% to $46.4 million or 40 cents per diluted share compared to net income of $29.7 million or 26 cents per share, a year ago.

Dolby Laboratories, Inc ((DLB)) in the last one year traded as high as $53.63 in January 2008 and as low as $31.01 in July 2007. Based on the yesterday’s closing price the company has a market cap of $4.54 billion.

Drugstore.com, Inc, an online provider of health and pharmacy products said second quarter sales increased 11% to $122.8 million from $110.4 million a year ago. Net loss in the quarter was $2.3 million or 2 cents per diluted share compared to net loss of $3.0 million or 3 cents per share, a year ago.

Drugstore.com, Inc ((DSCM)) in the last one year traded as high as $3.74 in November 2007 and as low as $0.95 in July 2008. Based on the yesterday’s closing price the company has a market cap of $206.46 million.

Monster Worldwide, Inc, provides a global online employment solution said second quarter revenues rose 8.55% to $354.3 million from $324 million a year ago. Net income in the quarter rose 7.14% to $30.8 million or 25 cents per diluted share compared to net income of $28.6 million or 21 cents per share, a year ago.

Monster Worldwide, Inc ((MNST)) in the last one year traded as high as $40.92 in October 2007 and as low as $17.10 in July 2008. Based on the yesterday’s closing price the company has a market cap of $2.20 billion.

Nautilus, Inc, markets branded fitness and apparel products said second quarter sales decreased 7% to $95.6 million from $102.5 million a year ago. Net loss in the quarter was $8.8 million or 28 cents per diluted share compared to net income of $1.1 million or 4 cents per share, a year ago.

Nautilus, Inc ((NLS)) in the last one year traded as high as $10.41 in August 2007 and as low as $3.00 in January 2008. Based on the yesterday’s closing price the company has a market cap of $154.00 million.

Peet''s Coffee & Tea, Inc, the premium coffee seller said second quarter revenues increased 17% to $70.1 million from $60.1 million a year ago. Net income in the quarter rose 67% to $3.0 million or 21 cents per diluted share compared to net income of $1.8 million or 13 cents per share, a year ago.

Peet''s Coffee & Tea, Inc ((PEET)) in the last one year traded as high as $30.37 in December 2007 and as low as $18.50 in July 2008. Based on the yesterday’s closing price the company has a market cap of $272.21 million.

Weight Watchers International, Inc, a provider of weight management services, with a presence in over 25 countries around the world said second quarter revenues increased 3.42% to $400.0 million from $386.3 million a year ago. Net income in the quarter rose 20% to $46.6 million or 59 cents per diluted share compared to net income of $58.0 million or 73 cents per share, a year ago.

Weight Watchers International, Inc ((WTW)) in the last one year traded as high as $58.24 in October 2007 and as low as $33.09 in July 2008. Based on the yesterday’s closing price the company has a market cap of $2.82 billion.