U.S.Stocks Fall; Intel Net Drops 55%

123jump.com Staff
14 Apr, 2009
New York City

U.S. economic reports overshadowed the better than expected earnings from Johnson & Johnson and Goldman Sachs. UK pound edged higher after a interbank interest rate in London steadily declined. European banks gained on Goldman Sachs earnings. Intel net drops 55% to 11 cents or $647 million.

5:00PM New York, 11:00PM Frankfurt, 8:00AM Sydney[R]– U.S. economic reports overshadowed better than expected earnings from Johnson & Johnson and Goldman Sachs and dragged stocks lower. UK pound edged higher after a interbank interest rate in London steadily declined. European banks gained on Goldman Sachs earnings.[/R]

Global Markets

U.S. retail sales in March declined 1.1% and producer prices also edged lower. Weak sales in all retail segments expect grocery sales dragged the overall data in the month. February sales were revised to an increase of 0.3% from a decline of 0.1% and January sales were revised higher to 1.9% from 1.8%.

Johnson & Johnson, the health care products maker reported first quarter revenues fell 7.4% to $15.0 billion from $16.2 billion a year ago. Net income in the quarter fell 2.7% to $3.5 billion or $1.26 per diluted share compared to net income of $3.6 billion or $1.26 per share a year ago.

After the close of regular trading, Intel reported first quarter earnings decline of 55% to 11 cents a share or $647 million from $1.44 billion or 25 cents a share. Revenues in the quarter declined 26% from a year ago to $7.1 billion or declined 13% from the fourth quarter. Gross margin declined to 45.6% from 53.1% in the fourth quarter.

UK stocks dropped as much as 1.1% and pound strengthened on a steady fall in interbank loans. Mining companies rose after copper prices increased. Poland the second nation after Mexico is seeking IMF assistance to support its currency.

Koninklijke Philips Electronics N.V., Europe’s largest maker of consumer electronics said first quarter sales fell 15% to €5.08 billion from €5.97 billion. Net loss was €59 million or 6 euros per diluted share compared to net profit of €294 million or 28 euros per share a year ago.

Stocks in Shanghai and Hong Kong edged higher on speculation that auto industry may get government incentives and sales may increase as the government extends more tax benefits to buyers. SAIC Motor Company jumped 8.4%, Beiqi Foton Motor jumped to the daily limit of 10% and Dongfeng Automobile Company increased 4.4%.

Cosco Shipping declined 1.5% after it reported first quarter profit decline of more than 50% and hinted weaker earnings for the rest of the year.

Australian stocks gained as commodities and gold prices edged higher. Australian business lending falls 14.7% to A$25 billion in February but business confidence increase in March. Qantas slashes its earnings estimate for the fiscal year to as low as A$100 million.

North American Markets

Dow Jones Industrial Average declined 137.63 or 1.71% to a close of 7,920.18, S&P 500 Index decreased 17.23 or 2.01% to 841.50, and Nasdaq Composite Index declined 54.00 or 0.58% to close at 1,625.72.

Of the stocks in S&P 500 index, 98 increased, 400 declined and 2 were unchanged.

Gannett Company led decliners in the S&P 500 index with a loss of 19.5% followed by losses in Fifth Third Bancorp of 17.1%, in Marshall & Ilsley of 14.3%, in Prologis of 14.5%, in Principal Financial of 12.9% and in Hartford Financial Services of 12.8%.

Tenet Healthcare led gainers in the S&P 500 index with a surge of .02% followed by gains in Dynegy Inc of 8.15%, in E*Trade Financial of 7.5%, in AIG of 7.1%, in Express Script of 5.95% and in Citigroup Inc of 5.53%.

South American Markets Indexes

Mexico Bolsa Index increased 79.64 or 0.4% to 21,918.60. Brazil Bovespa Stock Index declined 573.71 or 1.25% to 45,418.18.

Argentina declined 1.5%, Chile added 0.3% and Peru decreased 2.1%. Colombia increased 0.8% and Venezuela added 0.2%.

Europe Markets Review

In London FTSE 100 Index closed higher 5.28 or 0.13% to 3,988.99, in Paris CAC 40 Index increased 26.04 or 0.88% to close at 3,000.22 and in Frankfurt DAX index higher 65.89 or 1.47% to close at 4,557.01. In Zurich trading SMI increased 28.72 or 0.57% to close at 5,099.32.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 81.75 or 0.92% to 8,842.68, Hang Seng index in Hong Kong increased 678.75 or 4.55% closed to 15,580.16, CSI 300 index in China higher 20.35 or 0.77% closed to 2,676.87. ASX 200 index in Australia increased 81.30 or 2.21% closed to 3,752.90. The KL Composite index in Malaysia higher 12.30 or 1.31% closed to 953.71.

The Kospi Index in South Korea increased 4.37 or 0.33% to close at 1,342.63. JSE Index in Indonesia increased 29.86 or 1.94% closed to 1,570.26. The Markets of Thailand and India were close today.

Commodities, Metals, and Currencies

Crude oil decreased $0.65 to close at $49.40 a barrel for a front month contract, natural gas increased 8 cents to $3.71 per mBtu and gasoline futures increased 3.84 cents to close at 147.80 cents per gallon.

Wheat futures closed down 1.50 cents in Chicago trading and closed at $5.34 a bushel. Sugar decreased 0.10 cent in trading at 13.67 cents a pound. Soybean future closed up 14.50 cent to $10.36 a bushel.

Gold decreased $6.30 in New York trading to close at $889.50 per ounce, silver closed down $0.085 to $12.68 per ounce and copper for the front month delivery decreased 1.70 cents to $2.1225 per pound.

Dollar edged higher against euro to $1.3260 and fell against yen to 99.00.

Yields on 10-year U.S. bonds decreased to 2.78% and with 30-year maturities closed down to 3.66%.