Durable Goods Orders Up 3.4%

Elena
29 Nov, 2005
New York City

Asian-Pacific benchmarks lost ground on Wall Street losses. The Nikkei rebounded from an eight-day winning streakm, ending down 0.4% European stocks were little changed at mid-day on oil and banking shares. In earnings news, United Natural Foods reported lower-than-expected Q1 earnings of 18 cents a share on 12% higher sales. SkillSoft posted Q3 earnings rise of 6 cents a share on 3% revenue, beating estimates.

U.S. MARKET AVERAGES

Stock futures advanced, indicating a positive start amid expectations economic data would show an increase in U.S. consumer confidence, boosting the outlook for the holiday season.

A drop in oil prices may also help support stocks. Crude was down 41 cents to $56.95 a barrel in New York. However, shares of energy heavyweights such as Chevron and ConocoPhilips may come under pressure.

S&P 500 futures were up 3.40 points, above their fair value. Dow Jones industrial average futures were up 24 points, and Nasdaq 100 futures rose 3 points.

ECONOMIC NEWS

Durable goods orders rebounded in October after showing a notable decline in September, according to a report from the Department of Commerce. The increase came in well above economist estimates.

The report showed that new orders for durable goods rose 3.4 percent in October following a revised 2.0 drop in September. Economists had expected a much more modest increase of about 1.8 percent.

INTERNATIONAL MARKET NEWS

Asian-Pacific benchmarks declined across the region, reflecting weakness in U.S. trading Monday. The Nikkei fell 0.4%, ending an eight-session rally which sent the index on a five-year high. Data on unemployment and lower-than-expected output growth also weighed on market sentiment. Among other regional markets, South Korea’s Kospi dropped 1.1%, Hong Kong’s Hang Seng lost 0.5%, and Australia’s All Ordinaries fell 0.5%.

European markets traded near the flat line at mid-day, pressured by lower oil prices and banking shares, but losses were partly offset by well-received corporate news from Dutch food group Ahold and catering giant Compass. The German DAX 30 edged up 0.03%, the French CAC 40 lost 0.1%, and London’s FTSE 100 slipped 0.1%.

OIL, METALS, CURRENCIES

Crude oil prices dropped below $57 a barrel after OPEC assured it is prepared to keep fuel supplies steady. Light sweet crude for January delivery dropped 47 cents to $56.89 a barrel. London Brent fell 50 cents to $54.38.

European Gold traded mixed. Gold also retreated from its decade-high of $500 per ounce, reached in Asian trading due to inflation and geopolitics worries. In London the precious metal was fixed at $497.10 per troy ounce, up from $495.20. In Zurich gold traded at $495.45, down from $495.95. In Hong Kong gold fell 25 cents to close at $497.50. Silver traded unchanged at $8.13.

The U.S. dollar climbed against its major counterparts. The euro was quoted at $1.1820, down from $1.1873. The dollar bought 119.13 yen, up from 118.57. The British pound stood at $1.7256, down from $1.7328.

EARNINGS NEWS

SkillSoft PLC ((SKIL)), electronic learning content company, posted Q3 earnings of 6 cents a share, up from 4 cents a share in the same period last year on 3% revenue growth, beating analyst estimate of 3 cents per share. The results include $6.4 million in charges for amortization of assets and income tax provisions. Gross margin went down to 88% from 89%.

United Natural Foods ((UNFI)), natural and organic foods distributor, posted Q1 earnings of 18 cents a share, down from 24 cents a share, in the year-earlier period. Q1 sales advanced 21%. Adjusted earnings amounted to 24 cents a share, matching analyst forecasts.