Deere, Macy's Drive Stocks Lower

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

U.S. stock fell after weaker than expected earnings from Deere & Company and Macys. Deere reported earnings of $1.32 a share compared to $1.18 a share on the revenue rise of 17% to $7.7 billion. Macys net income in the second quarter fell 3% and on higher integration cost earnings rose to 17 cents a share compared to 16 cents a share. Bank of America and other banks fell after cautious comments from Merrill Lynch. CVS Caremark agreed to buy Longs Drug Stores for $2.7 billion.

[R]11:00AM New York – U.S. stocks declined on weak earnings.[/R]

U.S. stocks fell after weaker than expected earnings from Macy’s and Deere & Company and comments from Merrill Lynch suggested that housing market woes and banking industry problems are far from over.

Liz Claiborne Inc dropped 5% after it reported a loss in the second quarter and issued a lower than expected earnings outlook. In addition Macy’s revenue missed the target. Tractor maker Deere fell 7% or $5.50 to $63.91 after earnings disappointed investors.

Banks fell with a decline of 3% in Bank of America after comments from Merrill Lynch.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 280.55 or 2.11% to 13,023.05, Hang Seng index in Hong Kong decreased 347.57 or 1.61% closed to 21,293.32. ASX 200 index in Australia decreased 102.00 or 2.02% to close 4,951.60. The KL Composite index in Malaysia decreased 6.25 or 0.56% closed to 1,112.53.

The Kospi Index in South Korea decreased 14.40 or 0.91% to close at 1,562.72, SET index in Thailand closed lower 1.33 or 0.19% to 701.60 and JSE Index in Indonesia increased 5.94 or 0.29% to 2,063.52. The Sensex index in India decreased 119.01 or 0.78% closed to 15,093.12.

Europe Markets Review

In London FTSE 100 Index traded lower 35.60 or 0.64% to 5,498.90, in Paris CAC 40 Index decreased 36.99 or 0.82% to 4,481.49 and in Frankfurt DAX index traded lower 40.00 or 0.61% to 6,545.87. In Zurich trading SMI decreased 52.44 or 0.72% to 7,249.40.

Applied Materials, Inc, chip manufacturing equipment maker said third quarter revenues fell 28% to $1.85 billion from $2.56 billion a year ago. Net income in the quarter dropped 65% to $164.8 million or 12 cents per diluted share compared to net income of $473.5 million or 34 cents per share, a year ago.

Applied Materials, Inc ((AMAT)) in the last one year traded as high as $22.10 in September 2007 and as low as $16.13 in January 2008. Based on the yesterday’s closing price the company has a market cap of $25.04 billion.

Image Entertainment, Inc, an independent licensee, producer and distributor of home entertainment programming in North America said first quarter revenues increased 56.0% to $32.6 million from $20.9 million a year ago. Net income in the quarter was $1,696,000 or 8 cents per diluted share compared to net loss of $2,599,000 or 12 cents per share, a year ago.

Image Entertainment, Inc ((DISK)) in the last one year traded as high as $4.50 in August 2007 and as low as $0.80 in June 2008. Based on the yesterday’s closing price the company has a market cap of $25.57 million.

Kinross Gold Corporation, engaged in gold mining and related activities said second quarter revenues rose 3% to $299 million from $290.1 million a year ago. Net income in the quarter declined 51% to $26 million or 4 cents per diluted share compared to net income of $53 million or 9 cents per share, a year ago.

Kinross Gold Corporation ((KGC)) in the last one year traded as high as $27.40 in March 2008 and as low as $9.87 in August 2007. Based on the yesterday’s closing price the company has a market cap of $9.40 billion.

Star Bulk Carriers Corp, a global shipping company focusing on transportation of dry bulk cargoes said second quarter revenues was $59.23 million and no revenues during the three months ended June 30, 2007. Net income in the quarter rose 98.16% to $31.57 million or 56 cents per diluted share compared to net income of $0.58 million or 2 cents per share, a year ago.

Star Bulk Carriers Corp ((SBLK)) in the last one year traded as high as $15.50 in December 2007 and as low as $8.66 in August 2008. Based on the yesterday’s closing price the company has a market cap of $537.68 million.

Sonic Solutions, digital media software said first quarter revenues were $30.1 million from $30.1 million a year ago. Net loss in the quarter was $3.6 million or 14 cents per diluted share compared to net loss of $2 million or 7 cents per share, a year ago.

Sonic Solutions ((SNIC)) in the last one year traded as high as $13.07 in November 2007 and as low as $4.75 in July 2008. Based on the yesterday’s closing price the company has a market cap of $146.43 million.

Ultrapetrol (Bahamas) Limited, an industrial transportation company serving marine transportation needs in four markets said second quarter revenues rose 50.0% to $83.0 million from $55.4 million a year ago. Net income in the quarter increased 92.30% to $11.7 million or 36 cents per diluted share compared to net income of $0.9 million or 3 cents per share, a year ago.

Ultrapetrol ((ULTR)) in the last one year traded as high as $22.72 in August 2007 and as low as $7.13 in March 2008. Based on the yesterday’s closing price the company has a market cap of $385.93 million.