Ahold to Pay $1.1B

Elena
28 Nov, 2005
New York City

Asian-Pacific markets started the new week in the ppositive, supported by U.S. trading and stronger dollar, with the Nikkei up 1.4%, hitting another five-year high of 14,986,94. European stocks also nadvanced at mid-day, led by the German DAX 30, up 0.7%. Following Thanksgiving holiday, U.S. markets are expected to open higher with retailers standing in the spotlight after the National Retail Federation reported 22% sales jump over the weekend.

U.S. MARKET AVERAGES

U.S. stock futures are showing strength in pre-market trading, pointing to a higher opening of Monday session, supported by surging retail sales over the weekend, which mark the beginning of the busy holiday shopping season. On Friday’s holiday-shortened session the three major averages extended November’s rally with the Nasdaq and S&P 500 reaching fresh four-year-and-a-half peaks.

Retailers will be in the spotlight on Monday after a report released over the weekend by the National Retail Federation showed that sales during the post-holiday weekend jumped 22% higher than the previous year. Wal-Mart ((WMT)), the nation''s largest retailer, advanced on estimates that November comparable sales will rise 4.3%.

A drop in oil prices may also help support stocks. Crude was down 92 cents to $57.79 a barrel in New York.

S&P 500 futures were up 2.40 points, above their fair value. Dow Jones industrial average futures were up 20 points, and Nasdaq 100 futures rose 4.0 points.

Following last-week holiday trading, news flow is likely to be slow on Monday. No major economic reports are due out on Monday, and corporate news is still likely to be scarce.

Applied Films Corp. ((AFCO)) announced that it has agreed to sell its 50% stake in its Chinese joint venture, Suzhou NSG AFC Thin Films Electronics Co., Ltd to its joint venture partner Nippon Sheet Glass for $14.6 million. Applied Films stated that it will take an impairment charge of $1.7-$1.9 million related to the deal.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks advanced across the region, lifted by higher Wall Street close Friday, positive U.S. retail revenue data, and continuously strengthening dollar. The Nikkei gained 1.4%, hitting a fresh high of 14,986,96 on exporter issues, boosted by the stronger dollar. Among other regional markets, Australia’s All Ordinaries rose 0.4%, Hong Kong’s Hang Seng added 0.2%, while South Korea’s Kospi was flat at 0.04%.

European markets gained at mid-day dealings on strong close of U.S. equity markets Friday, lower oil prices and corporate news, including Ahold and Novartis. The German SAX 30 was the biggest advancer, rising 0.7%, the French CAC 40 climbed 0.5%, and London’s FTSE 100 gained 0.4%.

OIL, METALS, CURRENCIES

Crude oil prices declined on mild weather forecast and lower fuel demand. Light sweet crude for January delivery dropped $1.30 to $57.41 a barrel. London Brent was little changed, adding 5 cents to $55.06. Commodities markets were closed on Thursday and Friday for Thanksgiving holiday.

European Gold traded mixed. In London the precious metal was fixed at $497.30 per troy ounce, up from $495.70. In Zurich gold traded unchanged at $495.95. In Hong Kong gold climbed $1.80 to close at $497.75. Silver traded unchanged at $8.13.

The U.S. dollar advanced against its major counterparts. The euro was quoted at $1.700, down from $1.1723. The dollar bought 119.79 yen, up from 119.58. The British pound stood at $1.7091, down from $1.7141.

EARNINGS NEWS

Hillenbrand Industries, Inc ((HB)) announced that Q4 loss from continuing operations narrowed to $1.56 a share, from $3 a share in the year-earlier period on 6% revenue growth. The company envisages fiscal-year earnings from continuing operations in the range of $3.30 to $3.40 a share.