GM Dividend Lowered to $1

Elena
07 Feb, 2006
New York City

Asian markets ended mixed. The Nikkei declined 0.2%, South Korean Kospi dropped 0.7%, while Bombay Stock Exchange''s 30-share Sensex hit an all-time high of 1% at 10066.55 points. European stocks traded lower with London FTSE 100 down 0.5% on disappointing outlook from BP. Toll Brothers posted 35% home building revenue rise in Q1, but lowered its guidance for home deliveries for 2006. Disney posted 7% income growth in Q1, beating earnings and revenue estimates.

U.S. MARKET AVERAGES

U.S. stock futures traded below the flat line, pointing to a decline at opening, as oil prices supported by tensions over Iran’s resumption of the uranium program counteracted upbeat earnings news from Walt Disney Co. A lowered home sales outlook from home builder Toll Brothers Inc, further drove market to the downside.

Disney ((DIS)), entertainment company, reported a 7% increase in first-quarter profit after the market close on Monday.

Regal Entertainment Group ((RCG)), movie theater chain, reported a jump in quarterly profit.

Home builder Toll Brothers Inc. ((TOL)) reported quarterly profit growth but cut its sales view for 2006, citing a decline in signed contracts and difficulty obtaining building permits.

The Coca-Cola Company ((KO)) reported a decline in quarterly profit, hurt by a repatriation charge.

Cisco Systems Inc. ((CSCO)) and Fortune Brands Inc ((FO)) are also expected to give their quarterly reports on Tuesday.

Standard & Poor''s 500 futures were down 2.7 points, below fair value. Dow Jones industrial average futures were down 22 points, and Nasdaq 100 futures were down 7 points.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks finished mixed, following a slide on Wall Street Monday, despite easing oil prices. The Nikkei slipped 0.2% with Sumitomo Insurance and tech stock TDK among the decliners. South Korea’s Kospi fell 0.7% on weak bank, automobile and brokerage stocks. India’s Stock Exchange’s 30-share Sensex reached an all-time high of 10066.55 points to close up 1%. Singapore Straits Times advanced 0.3%.

European stocks traded lower at mid-day after gains in the telecom sector failed to offset declines in the oil and gas sectors. The German DAX 30 lost 0.4%, the French CAC 40 slipped 0.3%, and London’s FTSE 100 dropped 0.5% after BP reported disappointing outlook.

OIL, METALS, CURRENCIES

Crude oil prices declined below $65 a barrel on easing concerns about possible disruptions to the oil supply from Iran. Light sweet crude for March delivery fell 45 cents to $64.66 a barrel. Heating oil lost less than a cent to $1.7587 a gallon, while gasoline only declined 1 cent to $1.6342. Natural gas dropped 17 cents to $7.820 per 1,000 cubic feet. London Brent dropped 44 cents to $62.89.

European gold prices lost ground Tuesday. In London gold traded at the fixed price of $568.25 bid per troy ounce, down from $572.80. In Zurich the precious metal traded at $568.53, down from $573.10. In Hong Kong gold fell 40 cents to close at $569.60. Silver opened at $9.73, down from $9.83.

The U.S. dollar declined against most other major currencies. The euro was quoted at $1.1995, up from $1.1964. The dollar bought 117.84 yen, down from $118.97. The British pound stood at $1.7496, up from $1.7474.

EARNINGS NEWS

Polo Ralph Lauren Corp, ((RL)), clothing and accessories company, reported that Q3 profit advanced to 84 cents a share, from 72 cents in the year-ago period on revenue growth, topping analyst estimate of 76 cents a share.

Ariad Pharmaceuticals, ((ARIA)), pharmaceutical company, reported a Q4 loss of 23 cents a share, down from the year-ago loss of 20 cents a share on higher research and development expenses, beating analyst expectations of a loss of 25 cents a share.

Fortune Brands, ((FO)), alcohol producer, reported Q4 net income of $1.17 a share, down 30% from $1.68 a share in the year-earlier period. Before charges and gains earnings came to $1.22 a share, topping analyst forecasts of $1.20 a share. Revenue advanced 24%.

Hillenbrand Industries Inc, ((HB)), health care industry manufacturer reported Q1 net income from continuing operations of 79 cents a share, up from 69 cents a share in the year-earlier period, beating analyst forecasts of 65 cents a share. Adjusted net income came to 79 cents a share, up vs. 71 cents a share. Revenue inched up 0.6% to $477.5 million.

Benchmark Electronics Inc, ((BHE)), outsourced manufacturing services to the electronics industry provider, reported that Q4 net income advanced 22% to 57 cents a share, while sales grew 19.3%. Analysts were expecting earnings of 51 cents a share.

Performance Food Group Co, ((PFGC)), food and non-food products producer and distributor, posted earnings of 44 cents a share, nearly three times the year-ago profit of 18 cents a share, beating analyst estimate of 31 cents a share. Consolidated net sales from continuing operations in the fourth quarter advanced 7%, while Q4 inflation was approximately 1%.

MeriStar Hospitality Corp, ((MHX)), real estate investment fund, reported a Q4 loss of $1.30 a share, down from a year-ago loss of 20 cents a share. On an adjusted basis, the company reported funds from operations of 17 cents a share, beating on that basis analyst predictions of 15 cents a share. Revenue grew to $183.4 million from $159.4 million in the same time a year earlier.