Durable Orders Fall; Microsoft, Ford Gain

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

U.S. stocks in the morning trading added after durable goods orders fell less than expected and earnings from Microsoft, Amazon.com, American Express and Ford met or exceeded expectations. Durable goods orders fell less than expected in March.

[R]10:30 AM New York – U.S. stocks edged higher after the release of durable goods orders data and earnings.[/R]

Stocks in early morning trading added after durable goods orders fell less than expected and earnings from Microsoft, American Express and Ford met or exceeded expectations.

Ford reported smaller than expected loss, American Express reported sharply lower but still a profit and Microsoft reported smaller decline in profit.

Microsoft surged 7% of $1.29 to $20.19.

U.S. Durable Goods Orders Fall

U.S. durable goods orders declined 0.8% in March after rising 2.1% in February. The orders are widely watched to measure and track the activities in the manufacturing sector and one of the data points for the health of exports.

The February orders were revised lower from 3.5% to 2.1%. Non-defense capital goods orders increased 1.5% after increasing at 4.3% in February. Transportation equipment orders declined 1.4% on 1.7% orders fall in auto sector. Aircraft orders increased 4.4% after plunging 32% in February.

Ford Reports Smaller Loss

Ford Motor Company ((F)) reported first quarter loss per share of 75 cents compared to a loss of 95 cents a share. Loss in the quarter dropped to $1.79 billion from $2.27 billion a year ago quarter. Revenues in the quarter were $24.8 billion.

Ford North America had operating loss of $637 million. Ford in the U.S. held to its market share compared to a year ago quarter and in Europe increased its market share to 9.4%, highest in 10 years. Dealer inventories in the U.S. declined 27% but Ford did not divulge the current level of inventories.

The automaker has reported losses in the last eleven of the fourteen quarters.

Ford surged 14.7% or 66 cents to $5.15 in the morning trading.

SunPower Sales Fall

SunPower Corporation ((SPWR)) reported first quarter 2009 sales declined to $214 million from $274 million a year ago quarter and dropped from $401 million in the fourth quarter 2008. The solar technology firm reported quarterly loss of $4.78 million or 6 cents a share compared to $12 million of net income or 15 cents a share a year ago quarter.

The company offered 2009 sales outlook between $1.3 billion and $1.7 billion and earnings per share between 25 cents and 75 cents.

SunPower Corporation ((SPWR)) declined 10 cents to $25.83 in the early trading.

Netflix Record Q1 Earnings

Netflix reported first quarter 2009 revenues of $394.1 million, representing 21% increase from a year ago and 10% increase from the fourth quarter 2008.

GAAP net income in the quarter increased to $22.4 million or 37 cents a share compared to $13.3 million or 21 cents a share.

Cost of acquiring new subscribers declined to $25.79 from $29.48 in the quarter a year ago and declined from $26.67 in the fourth quarter. The company ended the quarter with new gross subscribers of 2.4 million and net new subscribers of 920,000. The company had a total of 10.11 million subscribers at the end of the quarter.

Customers churn in the quarter increased to 4.2% from 3.9% in the previous quarter and matched the churn in the quarter a year ago.

Netflix ((NFLX)) fell 5% or $2.27 to $43.05 after one hour of trading.