U.S. Consumer Prices Rise Slower; Jobless Claims

123jump.com Staff
15 Oct, 2009
New York City

Jobless claims declined 10,000 and consumer prices increased at a slower pace in September. The index of consumer prices increased at a slower pace in September at 0.2% after rising at 0.4% in August. Prices are lower 1.3% form a year ago.

[R]10:00 AM New York – Stocks in early trading traded sideways after the release of earnings from Goldman Sachs and Citigroup. Goldman net surged more than three-fold and Citigroup net loss shrank. Jobless claims declined 10,000 and consumer prices increased at a slower pace in September.[/R]

U.S. stocks in the morning traded sideways after the release of earnings from Goldman Sachs, Citigroup and the jobless claims and consumer price index.

Goldman earnings surged three fold but investors took profit after the recent run up in the stock and investors questioned the adequacy of loan loss reserves at Citigroup.

The index of consumer prices increased 0.2% in September after rising at 0.4% in August. The unadjusted index decreased 1.3% in the last one year to the month.

Jobless claims in the week ending October 10 declined 10,000 to 514,000 from the revised 524,000 claims in the previous week. The insured unemployment rate decreased to 4.5%.

Earnings in Review

Goldman Sachs ((GS)) third quarter net surged more than three times to $3.19 billion or $5.25 a share compared to $845 million or $1.81 a share. In the quarter, the trader and investment banker increased its reliance on trading on its own account and asset management as revenues in investment banking and other segments fell from the second quarter.

The third quarter return on equity increased to 21.4% compared to 7.7% in the quarter a year ago and book value per share increased to $110.75 compared to $106.41.

Citigroup Inc, the troubled global financial service provider and a bank reported third quarter sales increased 25% to $20.4 billion from $16.3 billion a year ago. Net income in the quarter was $101 million or 27 cents loss per diluted share compared to net loss of $2.8 billion or 61 cents per share a year ago.

After the weaker than expected rise in consumer prices, gold and base metals fell. Gold decreased $9.50 to $1,055.20 and oil increased 23 cents to $75.41.

Yield on 10-year bonds hovered at 3.47% and 30-year bonds at 4.31%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 178.44 or 1.77% to 10,238.65, Hang Seng index in Hong Kong increased 112.60 or 0.51% to 21,999.08, and CSI 300 index in China higher 12.24 or 0.38% to 3,239.64. ASX 200 index in Australia increased 28.80 or 0.60% to 4,859.90. The FTSE Bursa KL Composite index in Malaysia was higher 0.02 or 0.00% to 1,246.86.

The Kospi Index in South Korea increased 9.90 or 0.60% to close at 1,658.99 SET Index in Thailand closed lower 38.75 or 5.30% to 692.72. JSE Index in Indonesia increased 3.66 or 0.15% to 2,515.38. The Sensex index in India decreased 35.91 or 0.21% to 17,195.20.

Europe Markets Review

In London FTSE 100 Index traded lower 6.07 or 0.12% to 5,250.03, in Paris CAC 40 Index increased 7.58 or 0.20% to 3,890.25 and in Frankfurt DAX index traded higher 4.88 or 0.08% to 5,859.02. In Zurich trading SMI decreased 5.10 or 0.08% to 6,400.82.

Nokia Corporation, the cellphone maker reported third quarter sales fell 19.7% to €9.8 billion from €12.2 billion a year ago. Net income in the quarter fell 58% to €741 million or €0.17 per diluted share compared to net income of €1.76 billion or €0.33 per share a year ago.

Remy Cointreau SA, the producer and distributor of wines and spirits said first-half sales fell 0.7% to €362.7 million from €365.2 million a year ago.

Sales of cognac rose 7.6% to €183.1 million from €170.2 million a year ago. Sales of liqueurs and spirits rose 2.9% to €100.7 million from €97.8 million a year ago. Sales of champagne fell 42% to €35.8 million from €61.4 million a year ago. Partner brands sales rose 20.6% to €43.1 million from €35.8 million a year ago.

ASX 200 Index Movers

Elders Limited led the decliners in the ASX 200 index of 13.0% followed by losses Energy World Corporation Limited of 4.5%, in St Barbara Limited of 4.3%, in Caltex Australia Limited of 3.9% and in Spotless Group Limited of 3.5%.

Nexus Energy Limited gainers in the ASX 200 index with a rise of 9.0% followed by gains in Om Holdings Limited of 9.0%, in Molopo Australia Limited of 8.3% and in JB Hi-Fi Limited of 5.5%.

Nikkei 200 Average Movers

Japan Airlines Corporation led the decliners in the Nikkei 225 index of 10.9% followed by losses in Sapporo Holdings Limited of 5.2%, in Nomura Holdings, Inc. of 2.7%, in Shinsei Bank, Limited of 2.4% and in Jtekt Corporation of 1.8%.

Trend Micro Incorporated led gainers in the Nikkei 225 index with a rise of 7.6% followed by gains Pioneer Corporation of 5.1%, in The Sumitomo Trust and Banking Company, Limited of 4.6% and in Nitto Boseki Co., Ltd. of 4.2%.