Trade Deficit Falls; Stocks Decline

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

U.S. stocks traded lower after one hour of trading. The U.S. trade deficit in June fell 4% to $56.8 billion after shrinking to $59.2 billion in May according to the Commerce Department. Imports in the month rose 1.8% to $221.2 billion of which crude oil and petroleum products accounted for $44.5 billion at a cost of $117.13 a barrel. The trade deficit with Asian countries persisted and gap with China rose to $21.4 billion from $21 billion in May. Fluor Corp and McDermott International fell.

[R]10:20AM New York – U.S. stocks edge lower. Trade deficit in June falls. The U.S. dollar gains against euro.[/R]

U.S. stocks edged lower after June trade deficit shrank and crude oil prices rose in the morning.

The U.S. traded deficit in June fell 4% to $56.8 billion after shrinking to $59.2 billion in May according to the Commerce Department. Exports in the month rose 4% to $164.4 billion on weak dollar and rising demand for food, capital goods and industrial supplies. Trade deficit of goods and services fell $2.4 billion from a year ago month and exports were up $28.7 billion and imports rose 13.5% or $26.3 billion.

Imports in the month rose 1.8% to $221.2 billion of which crude oil and petroleum products accounted for $44.5 billion at a cost of $117.13 a barrel. The trade deficit with Asian countries persisted and gap with China rose to $21.4 billion from $21 billion in May. Goods deficit decreased $2.1 billion from May to $70 billion and service surplus increased $0.4 billion to $13.3 billion.

World Markets

European markets edged lower and in Asian trading Hong Kong, Shanghai, Mumbai and Jakarta exchanges closed.

Earnings Review

BearingPoint, Inc, a management and technology consulting firms said second quarter revenues rose 1.3% to $886.7 million from $875.3 million a year ago. Net income in the quarter was $18.5 million or 8 cents per diluted share compared to net loss of $64 million or 30 cents per share, a year ago.

BearingPoint, Inc ((BE)) in the last one year traded as high as $6.74 in August 2007 and as low as $0.62 in July 2008. Based on the yesterday’s closing price the company has a market cap of $257.12 million.

Fluor Corporation, the engineering and construction contractor said second quarter revenues jumped 37% to $5.77 billion from $4.22 billion a year ago. Net income in the quarter increased 54.32% to $209.3 million or $1.13 per diluted share compared to net income of $95.6 million or 53 cents per share, a year ago.

Fluor Corporation ((FLR)) in the last one year traded as high as $202.73 in June 2008 and as low as $72.67 in February 2008. Based on the yesterday’s closing price the company has a market cap of $13.50 billion.

Home Inns & Hotels Management Inc, an economy hotel chain in China said second quarter revenues surged 12 times to Rmb 448.1 million or $65.3 million from Rmb 38.4 million or $5.6 million a year ago. Net income in the quarter was Rmb 26.6 million or $3.9 million or 3 cents per diluted ADS compared to net income of Rmb 7.5 million or 10 cents per ADS, a year ago.

Home Inns & Hotels Management Inc ((HMIN)) in the last one year traded as high as $50.08 in October 2007 and as low as $14.40 in July 2008. Based on the yesterday’s closing price the company has a market cap of $558.75 million.

LDK Solar Co., Ltd, China-based solar wafer maker said second quarter revenues jumped 89.2% to $441.7 million from $99.1 million a year ago. Net income in the quarter increased 67% to $149.5 million or $1.29 per diluted ADS compared to net income of $49.8 million or 45 cents per ADS, a year ago.

LDK Solar Co., Ltd ((LDK)) in the last one year traded as high as $76.75 in September 2007 and as low as $19.64 in March 2008. Based on the yesterday’s closing price the company has a market cap of $3.58 billion.

McDermott International, Inc, an engineering and construction company said second quarter revenues rose 26% to $1.79 billion from $1.41 billion a year ago. Net income in the quarter increased 19% to $177.5 million or 77 cents per diluted share compared to net income of $149.4 million or 66 cents per share, a year ago.

McDermott International, Inc ((MDR)) in the last one year traded as high as $67.14 in June 2008 and as low as $34.31 in August 2008. Based on the yesterday’s closing price the company has a market cap of $9.48 billion.

Nuance Communications, Inc, a maker of speech recognition and imaging products said third quarter revenues climbed 38% to $216.7 million from $156.6 million a year ago. Net loss in the quarter was $9.9 million or 5 cents per diluted share compared to net loss of $7.6 million or 4 cents per share, a year ago.

Nuance Communications, Inc ((NUAN)) in the last one year traded as high as $22.56 in November 2007 and as low as $12.45 in July 2008. Based on the yesterday’s closing price the company has a market cap of $3.79 billion.

Stifel Financial Corp, a financial service holding company said second quarter revenues declined 3% to $209 million from $210 million a year ago. Net income in the quarter declined 14% to $12.3 million or 45 cents per diluted share compared to net income of $1.4 million or 6 cents per share, a year ago.

Stifel Financial Corp ((SF)) in the last one year traded as high as $44.11 in July 2008 and as low as $24.67 in March 2008. Based on the yesterday’s closing price the company has a market cap of $989.67 million.

TravelCenters of America LLC, a wholly owned subsidiary of hospitality properties trust said second quarter revenues declined 35% to $2.27 billion from $1.48 billion a year ago. Net loss in the quarter was $9.7 million or 69 cents per diluted share compared to net loss of $6.3 million or 72 cents per share, a year ago.

TravelCenters of America LLC ((TA)) in the last one year traded as high as $35.72 in August 2007 and as low as $2.03 in July 2008. Based on the yesterday’s closing price the company has a market cap of $39.41 million.