U.S. Stocks Mixed On Productivity, Jobs Data

123jump.com Staff
02 Sep, 2009
New York City

U.S. stocks gained in the morning despite the private jobs report showed 298,000 jobs were lost in August. U.S. productivity increased 6.6% in the second quarter, the sharpest gain in nearly six years.

[R]10:30 AM New York – U.S. stocks gained in the morning despite the private jobs report showed 298,000 jobs were lost in August. U.S. productivity increased 6.6% in the second quarter, the sharpest gain in nearly six years.[/R]

U.S. stocks edge higher in the morning in light trading volume. Investors are still cautious as the earnings season winds down.

Commodities edged higher in the early morning trading. Oil edged up 0.6% to $68.45 a barrel, natural gas increased 1.5% to $2.86 and gold increased $17.50 to $974 per ounce.

Yields on 10-year U.S. bonds hovered at 3.35% and 30-year bonds at 4.16%.

The private jobs report suggested that more employers laid-off people in August. According to the latest report from ADP, 298,000 jobs were eliminated in the month and July data was revised downward to a decline of 360,000. The data does not take into account the government jobs.

Employment in construction industry fell by 73,000 and financial industry declined by 19,000.

U.S. worker productivity surged at the fastest pace in six years in the second quarter according to the latest data from the Labor Department.

Nonfarm business sector labor productivity increased at a 6.6% annual rate during the second quarter of 2009. The output fell 5.5% while hours fell 7.2%, yielding an increase in productivity of 1.9% when compared to the second quarter a year ago.

Stocks in overnight trading in Asia fell following the 2% decline in the U.S. benchmark indexes.

Fast Retailing Co in Japan reported 682 billion yen in sales and 101 billion yen in earnings for the year ended in August. The company is targeting 1 trillion yen in sales and expects to have 4,000 Uniqlo locations around the world by 2020.

Gainers & Losers

DHT Maritime Inc ((DHT)) plunged 22% to $3.94 after the oil tanker owner and operator reported second quarter revenues fell 5.9% to $26.2 million from $27.8 million a year ago. Net income for the quarter fell 51.5% to $5.0 million or 10 cents per diluted share compared to net income of $10.3 million or 29 cents per share a year ago.

Las Vegas Sands ((LVS)) increased 2.5% to $13.78 after the company secured $600 million of financing through the sale of exchangeable bonds. The bonds have to be converted into one of its subsidiaries once the initial public offering on the Hong Kong Stock Exchange is completed.

Vonage Holding Corp ((VG)) surged 26% after Apple Inc approved the company’s mobile application on iPhone and iPod devices. Vonage is battling the loss of customers to cable and other telecom carriers as more companies offer flat price plans for telecom services.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 249.60 or 2.37% to 10,280.46, Hang Seng index in Hong Kong decreased 350.30 or 1.76% to 19,522.00 and CSI 300 index in China higher 47.23 or 1.66% to 2,890.93. ASX 200 index in Australia decreased 76.40 or 1.69% to 4,438.20. The FTSE Bursa KL Composite index in Malaysia closed lower 3.27 or 0.28% to 1,168.01.

The Kospi Index in South Korea decreased 9.90 or 0.61% to close at 1,613.16. SET index in Thailand closed higher 0.00 or 0.00% to 654.12 and JSE Index in Indonesia decreased 40.99 or 1.76% to 2,285.92. The Sensex index in India decreased 83.73 or 0.54% to 15,467.46.

Europe Markets Review

In London FTSE 100 Index traded lower 7.42 or 0.15% to 4,812.28, in Paris CAC 40 Index decreased 23.25 or 0.65% to 3,560.19 and in Frankfurt DAX index traded lower 24.93 or 0.47% to 5,302.36. In Zurich trading SMI decreased 66.39 or 1.08% to 6,061.78.

ASX 200 Index Movers

Nexus Energy Limited led the decliners in the ASX 200 index of 11.3% followed by losses in PMP Ltd of 9.3%, in Gunns Limited of 8.7%, in Energy World Corp Ltd of 7.1% and in Minara Resources Limited of 6.9%.

Transpacific Industries Group Ltd led gainers in the ASX 200 index with a rise of 6.2% followed by gains in Astro Japan Property Trust of 4.7%, in Tower Australia Group Limited of 4.0% and in Roc Oil Company Limited of 3.8%.

Nikkei 200 Average Movers

Trend Micro Inc led the decliners in the Nikkei 225 index of 5.5% followed by losses in Heiwa Real Estate Co Ltd of 5.0%, in UNY Co Ltd of 5.0%, in Oki Electric Industry Co Ltd of 5.0% and in Sekisui House Ltd of 4.9%.

Showa Denko KK led gainers in the Nikkei 225 index with a rise of 2.3% followed by gains in West Japan Railway Co of 1.8%, in Shiseido Co Ltd of 0.4% and in Mitsui Engineering & Shipbuilding Co Ltd of 0.4%.