Microsoft to Provide Mobile E-mail

Elena
13 Feb, 2006
New York City

Asian markets closed mostly weak, led by the Nikkei with a drop of 2.3% on strong export data. South Korean Kospi and Astralia All Ordinaries fell 1%, while India Sensex index gained 0.4%. European shares traded higher at mid-day supported by auto stocks. Merrill Lynch is near a deal to buy half of fund manager BlackRock for about $8 billion. Microsoft released software with push e-mail function built-in for handheld devices made by HewlettPackard, Chunghwa Telecom.

U.S. MARKET AVERAGES

U.S. stock futures were weak Monday morning, pointing to a lower opening, reflecting a negative report on Google from Barron’s and focus on deal news involving Merrill Lynch.

Barron's warned in a negative article on Google that the company’s shares could be cut in half over the next year on competition from Microsoft and Yahoo and pricing pressures for online ad sales.

Merrill Lynch & Co is reported to be in advanced talks to acquire a large stake in fund manager BlackRock for $8 billion.

Among other companies in focus, Home Depot Inc. is in talks to buy a 49% stake in China's Orient Home, one of the mainland's leading do-it-yourself chains, for more than $200 million.

Microsoft released software with push e-mail function built-in for handheld devices made by Hewlett-Packard, Chunghwa Telecom, Asus and Fujitsu Siemens. However, Research in Motion leads the push e-mail market with its popular BlackBerry device.

UBS downgraded coffee chain operator Starbucks Corp. to neutral from buy, citing a slowdown in the stock’s upside movement and a potential for slower same-store sales growth.

Dow Jones futures were recently down 29 points, S&P 500 futures fell 3.1 points, and Nasdaq 100 futures dropped 4.5 points.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks finished largely in the negative with Tokyo leading the decliners. The Nikkei tumbled 2.3%, or 380.17 points on strong export data which renewed speculations that the Bank of Japan would tighten its monetary policy. South Korea’s Kospi and Sydney All Ordinaries fell 1.1% each, while the Bombay Stock Exchange Sensitive index gained 0.4% and Singapore Straits Times gained 0.3%.

European stocks advanced at mid-day, supported by higher close of U.S. markets Friday and strong auto sector on the back of steady oil and weaker euro. Auto stocks like Volkswagen. BMW, DaimlerChrysler and Renault rose above 2.5%. The German DAX 30 rose 0.3%, the French CAC 40 gained 0.1%, and London’s FTSE 100 added 0.1%.

OIL, METALS, CURRENCIES

Crude oil prices hovered round $62 a barrel, but are expected to rise again as Iran’s tensions keep markets on the alert. Light sweet crude for March delivery gained 9 cents to $61.93 a barrel. London Brent rose 25 cents to $59.89.

European gold traded lower Monday. In London gold fell to $546.60 bid per troy ounce from $547.60. In Zurich the precious metal traded at $546.20, down from $550.40. In Hong Kong gold dropped $14.20 to close at $545.30. Silver opened at 9.26, down from $9.30.

The U.S. dollar grew stronger against other major currencies. The euro was quoted at $1.1887, down from $1.1901. The dollar bought 118.19 yen, down from $117.88. The British pound stood at $1.7385, down from $1.7441.

EARNINGS NEWS

Orbotech Ltd, ((ORBK)), maker of systems that inspect circuit boards and flat panel displays, reported that Q4 net income jumped 84.6% to 36 cents a share on 9.8% revenue growth, in line with analysts’ predictions. The company, said it has recently received orders worth an additional $20 million from two companies in the Far East that will be filled during 2006.

Radica Games Ltd, ((RADA)), developer of electronic games, videogame accessories and high-tech toys, reported that it reversed to Q4 profit 18 cents a share, up from 9 cents a share on 5.1% higher sales. Sales reached $45.7 million from $43.5 million. The electronic-games segment performed the best, offset by lower VGA sales as videogame-platform producers are in transition to new models, the company announced. Gross-profit margin grew to 41.5% from 35.1%.

Syneron Medical Ltd, ((ELOS)), producer of medical devices for aesthetic applications, reported Q4 net income growth of 47% to 43 cents a share, up vs. 30 cents a share in the year-ago period on 36% higher sales, missing analyst view of 46 cents a share. The company''s gross-profit margin was level with the year-earlier period at 87%.

Alpha Natural Resources Inc, ((ANR)), coal producer, reported Q4 net income of 20 cents a share up more than double from 8 cents a share in the year-ago period on revenue growth, beating analyst estimate of 13 cents a share. The company announced that current quarter earnings include a previously announced after-tax charge of 5 cents a share for stock-based compensation.

Holly Corp, ((HOC)), petroleum refining and pipeline transportation company, reported Q4 earnings of $1.31 a share, up from a profit of 23 cents a share a year-ago on revenue growth, missing analyst estimate of $1.38 a share. The company said its latest earnings were boosted by higher refined product margins, which went to $13.76 per produced barrel in the period from $7.03 a barrel a year ago.