US, Euorpe Head Lower; Gold, Oil Drop

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

U.S stocks edged lower as home builders and resource stocks traded lower. European and Asian markets declined on the worries that world market valuations are ahead of economic fundamentals.

[R]11:10 AM New York – U.S stocks edged lower as home builders and resource stocks traded lower. European and Asian markets declined on the worries that world market valuations are ahead of economic fundamentals.[/R]

Stocks edged lower in New York trading after weakness in Asia and Europe. The index of leading indicators in August increased 0.6% according to the latest data from the Conference Board but investors stayed on the side lines.

Dell Inc offered $3.9 billion to acquire Perot Systems as it looks beyond hardware sales. Home builders edged lower after Lennar reported wider than expected loss.

Immediate month futures of crude oil and natural gas declined 4%. Crude oil fell to $69.19 and natural gas dropped to $3.63 per mBtu.

Gainers & Losers

Perot Systems surged 65.3% to $29.62 after Dell Inc agreed to acquire the system integrator for $3.9 billion or $30 a share.

Lennar Corp declined 5.3% to $15.66 after it reported wider than expected losses in the latest quarterly results.

Earnings Review

Lennar Corporation, the homebuilder reported third quarter revenues fell 35% to $720.7 million from $1.11 billion a year ago. Net loss in the quarter was $171.6 million or 97 cents per diluted share compared to net loss of $89 million or 56 cents per share a year ago.

Potash Corporation of Saskatchewan Inc, the fertilizer producer expects full-year earnings of $3.25-$3.75 per share, shifting from a range of $4.00-$5.00 per share. Earnings for third-quarter 2009 are expected to be at the low-end of the $0.80-$1.20 per share. Analysts currently expect 93 cents a share in earnings.

Qantas Airways Limited, an Australian airline company said full-year revenues fell 6.4% to A$14.6 billion from A$15.6 billion a year ago. Net profit for the full-year fell 87% to A$123 million or 5.6 cents per diluted share compared to net profit of A$970 million or 49 .0 cents per share a year ago.

China Foods Ltd, the food manufacturer said first-half sales rose 0.4% to HK$8.19 billion from HK$8.15 billion a year ago. Net profit in the first-half rose 24.6% to HK$301 million compared to net profit of HK$241.6 million a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 73.26 or 0.70% to 10,370.54, Hang Seng index in Hong Kong decreased 150.60 or 0.70% to 21,472.85 and CSI 300 index in China higher 8.92 or 0.28% to 3,208.60. ASX 200 index in Australia decreased 15.80 or 0.34% to 4,677.40. The Nikkei 225 Index in Tokyo, The FTSE Bursa KL Composite index in Malaysia was closed today.

The Kospi Index in South Korea decreased 4.21 or 0.25% to close at 1,695.50. SET index in Thailand closed lower 0.51 or 0.07% to 713.16. JSE Index in Indonesia and The Sensex index in India was closed today.

Europe Markets Review

In London FTSE 100 Index traded lower 47.71 or 0.92% to 5,125.18, in Paris CAC 40 Index decreased 29.27 or 0.76% to 3,798.57 and in Frankfurt DAX index traded lower 73.15 or 1.28% to 5,630.68. In Zurich trading SMI decreased 37.92 or 0.60% to 6,287.23.