U.S. Stocks Waver; P&G Rises

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

U.S. stocks traded sideways in the morning after the rise in international trade deficit and weekly jobless claims were lower than expected. Procter & Gamble increased after it confirmed earnings outlook and plans to lower prices.

[R]9:50 AM New York – U.S. stocks traded sideways in the morning after the rise in international trade deficit and weekly jobless claims were lower than expected. Procter & Gamble increased after it confirmed earnings outlook and plans to lower prices.[/R]

U.S. stocks wavered after the release of trade deficit data and weekly jobless claims. Procter & Gamble increased after it plans to cut prices and increase promotions and confirmed earnings outlook for the year.

July trade deficit increased 16.3% from June but fell sharply from a year ago according to the latest data released by the Commerce Department. The increase was the largest in a decade as oil imports surge in the month.

July exports of $127.6 billion and imports of $159.6 billion resulted in a goods and services deficit of $32.0 billion, up from $27.5 billion in June, revised. July exports were $2.7 billion more than June exports of $124.9 billion. July imports were $7.2 billion more than June imports of $152.4 billion.

Seasonally adjusted claims at the end of last week decreased 4,000 to 570,000 from the revised figure of 574,000 at the end of previous week. Preliminary unemployment rate increased 0.1% to 4.7% according to the latest data from the Department of Labor.

Earnings Review

Korn/Ferry International, a staffing company said first quarter sales fell 43% to $123.3 million from $217.5 million a year ago. Net loss in the quarter was $14.3 million or 33 cents per diluted share compared to net income of $15.9 million or 36 cents per share a year ago.

The Men’s Wearhouse, Inc, the seller of men''s clothing said second quarter revenues fell 3% to $526.2 million from $545.3 million a year ago. Net income in the quarter rose 20% to $39.5 million or 75 cents per diluted share compared to net income of $32.8 million or 63 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 201.53 or 1.95% to 10,513.67, Hang Seng index in Hong Kong increased 218.52 or 1.05% to 21,069.56 and CSI 300 index in China lower 32.00 or 1.00% to 3,162.91. ASX 200 index in Australia increased 48.60 or 1.07% to 4,570.80. The FTSE Bursa KL Composite index in Malaysia closed higher 4.82 or 0.40% to 1,201.28.

The Kospi Index in South Korea increased 36.91 or 2.30% to close at 1,644.68. SET index in Thailand closed higher 7.50 or 1.08% to 703.09 and JSE Index in Indonesia increased 28.52 or 1.20% to 2,411.86. The Sensex index in India increased 33.31 or 0.21% to 16,216.86.

Australia Signs A$70 Billion LNG Deals

Prime Minister Kevin Rudd told Australian Parliament that Chevron Australia has signed three binding agreements to sell liquefied natural gas to Japan and Korea in a 20-year deal that may generate A$70 billion.

The Gorgon project off the coast of Western Australia will supply 1.375 million tons of gas to Osaka Gas and 1.1 million to Tokyo Gas. Additional 0.5 million tons of natural gas will be exported for 20 years to GS Caltex based in South Korea.

Europe Markets Review

In London FTSE 100 Index traded lower 41.74 or 0.83% to 4,962.56, in Paris CAC 40 Index decreased 19.53 or 0.53% to 3,688.16 and in Frankfurt DAX index traded lower 8.36 or 0.15% to 5,565.90. In Zurich trading SMI decreased 16.94 or 0.27% to 6,185.10.

ASX 200 Index Movers

Sigma Pharmaceuticals Limited led the decliners in the ASX 200 index of 8.2% followed by losses in St Barbara Limited of 7.8%, in Elders Ltd of 4.0%, in Lihir Gold Ltd of 3.2% and in Macquarie Airports of 3.1%.

Babcock & Brown Infrastructure Group led gainers in the ASX 200 index with a rise of 17.3% followed by gains in ING Industrial Fund of 14.0%, in Virgin Blue Holdings Ltd of 8.4% and in Gindalbie Metals Ltd of 7.6%.

Nikkei 200 Average Movers

Sojitz Corp led the decliners in the Nikkei 225 index of 3.5% followed by losses in Tokyu Land Corp of 1.1%, in GS Yuasa Corp of 0.8%, in Kobe Steel Ltd of 0.5% and in Meidensha Corp of 0.5%.

JGC Corp led gainers in the Nikkei 225 index with a rise of 6.2% followed by gains in Sumitomo Trust & Banking Co Ltd of 5.9%, in Chiyoda Corp of 5.9% and in Fujitsu Ltd of 5.9%.