Weak Employment Data, Retail Sales; Stocks Down

123jump.com Staff
04 Sep, 2008
New York City

U.S. stocks fell sharply in the morning trading after retailers reported mixed same store sales. Non-farm productivity rose at 4.3% in the second quarter compared to 3.4% rise in the quarter a year ago. Discounters reported rising same store sale in August but at apparel retailers sales declined. Ciena fell 20% after it forecasted weak sales growth for the year.

[R]10:45AM New York – U.S. retailers report a decline in sales. Discount and warehouse clubs report sales gains as consumers look for bargain and trim discretionary purchases.[/R]

Wal-Mart Stores reported same store sales rise of 3% in August as more consumers look for ways to stretch their dollar. Costco reported sales gain of 9% but at Target sales declined 2.1%.

Teenage and apparel retailers reported sales decline in the month. American Eagle sales dropped 5%, Pacific Sunwear of California sales declined 6% and sales at Abercrombie & Fitch fell 11%.

Sales at luxury retailers declined. Nordstrom Inc sales dropped 7.9%, Saks Inc sales fell 5.9% and at apparel retailer Gap sales declined 8%. Children’s Place Retail Stores and TJX Companies sales nearly unchanged.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 131.93 or 1.04% to 12,557.66, Hang Seng index in Hong Kong decreased 195.58 or 0.95% closed to 20,389.48.ASX 200 index in Australia decreased 80.50 or 1.59% to close 4,979.50. The KL Composite index in Malaysia decreased 0.32 or 0.03% closed to 1,085.06.

The Kospi Index in South Korea decreased 0.46 or 0.03% to close at 1,426.43, SET index in Thailand closed higher 4.92 or 0.76% to 654.85 and JSE Index in Indonesia decreased 40.77 or 1.93% to 2,075.23. The Sensex index in India decreased 150.76 or 1.00% closed to 14,899.10.

Europe Markets Review

In London FTSE 100 Index traded higher 36.10 or 0.66% to 5,535.80, in Paris CAC 40 Index decreased 20.98 or 0.47% to 4,426.15 and in Frankfurt DAX index traded lower 67.98 or 1.05% to 6,399.51. In Zurich trading SMI decreased 33.36 or 0.46% to 7,223.27.

Earnings Review

Ciena Corporation, telecommunications and network equipment maker reported third quarter revenues increased 5% to $253.2 million from $205 million a year ago. Net income in the quarter fell 59% to $11.7 million or 12 cents per diluted share compared to net income of $28.3 million or 29 cents per share, a year ago.

Ciena Corporation ((CIEN)) in the last one year traded as high as $49.55 in October 2007 and as low as $16.34 in August 2008. Based on the yesterday’s closing price the company has a market cap of $1.57 billion.

H&R Block, Inc, the nation''s largest tax preparer said first quarter revenues fell 12.24% to $339.6 million from $381.2 million a year ago. Net loss in the quarter was $132.7 million or 41 cents per diluted share compared to net loss of $302.6 million or 93 cents per share, a year ago.

H&R Block, Inc ((HRB)) in the last one year traded as high as $26.66 in September 2008 and as low as $16.89 in January 2008. Based on the yesterday’s closing price the company has a market cap of $8.72 billion.

Jackson Hewitt Tax Service Inc, provides computerized preparation of federal, state and local individual income tax returns through a network of franchised reported first quarter revenues fell 37.20% to $4.3 million from $5.9 million a year ago. Net loss in the quarter was $20.5 million or 72 cents per diluted share compared to net loss of $19.6 million or 65 cents per share, a year ago.

Jackson Hewitt Tax Service Inc ((JTX)) in the last one year traded as high as $34.48 in November 2007 and as low as $10.90 in March 2008. Based on the yesterday’s closing price the company has a market cap of $488.37 million.

Jos. A. Bank Clothiers, Inc, men''s clothing retailer reported second quarter revenues grew 13.7% to $152.7 million from $134.3 million a year ago. Net income in the quarter grew 8% to $8.9 million or 48 cents per diluted share compared to net income of $8.2 million or 44 cents per share, a year ago.

Comparable-store sales grew 6.8% in the quarter.

Jos. A. Bank Clothiers, Inc ((JOSB)) in the last one year traded as high as $37.79 in September 2007 and as low as $18.81 in March 2008. Based on the yesterday’s closing price the company has a market cap of $521.71 million.

Provident Financial plc, engaged in the credit card business said first-half revenues rose 11% to £370.1 million from £329.8 million a year earlier. Net profit in the quarter fell 185% to £36.7 million or 28.1 pence per diluted share compared to net profit of £104.7 million or 40.6 pence per share, a year earlier.

Provident Financial plc ((PFG)) in the last one year traded as high as 950.50p in April 2008 and as low as 655p in June 2008. Based on the yesterday’s closing price the company has a market cap of £1.20 billion.