Verizon, McGraw Hill, Marvell in Focus

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

Stocks in New York traded higher in the early trading after investors focused on earnings. Verizon reported higher earnings on cost cuts and net customer additions. Corning Inc net declined on 5% fall in sales. Markets in China and Japan edged higher.

[R]10:10 AM New York – Stocks in New York traded higher in the early trading after investors focused on earnings. Verizon reported higher earnings on cost cuts and net customer additions. Corning Inc net declined on 5% fall in sales. Markets in China and Japan edged higher.[/R]

Stocks in early trading in New York traded higher after a barrage of earnings this morning lifted market sentiment. Verizon, McGraw Hill, RadioShack and Marvell Technology traded higher after earnings.

The dollar traded near its recent lows as currency traders look for the next technical level of $1.55 against the euro.

Crude oil in the early trading gained $1.01 to $81.51 a barrel and gold increased $2.90 to $1,059.30 an ounce. Copper, silver and agriculture commodities are on the rise.

ING Groep NV in a settlement with the European Commission will sell its insurance unit and raise capital in a rights offering to receive cash infusion of 10 billion euros and guarantees of 21.6 billion in mortgage loan assets.

The troubled Dutch bank expects to raise in a rights offering as much as 7.5 billion and also plan to prepay Dutch government aid and accrued interest payment that may be more than 900 million euros.

Earnings Review

Verizon Communications Inc, the phone company reported third quarter revenues rose 10% to $27.3 billion from $24.8 billion a year ago. Net income in the quarter fell 9.4% to $2.9 billion or 41 cents per diluted share compared to net income of $3.2 billion or 59 cents per share a year ago.

Lorillard, Inc, the cigarette maker reported third quarter sales rose 26.5% to $1.42 billion from $1.13 billion a year ago. Net income in the quarter fell 0.8% to $235 million or $1.44 per diluted share compared to net income of $237 million or $1.38 per share a year ago.

AB Electrolux, the producer of home appliances third quarter sales rose 4.8% to SEK27.6 billion from SEK26.3 billion a year ago. Net profit in the quarter rose 91.8% to SEK1.6 billion or SEK5.55 per diluted share compared to net profit of SEK821 million or SEK2.90 per share a year ago.

Wuhan Iron and Steel Company Limited, the manufacturer of iron and steel products said third quarter sales fell 33% to Rmb 13.9 billion from Rmb 20.8 billion a year ago. Net profit for the quarter fell 76 % to Rmb 546.6 million compared to net profit of Rmb 2.26 billion a year ago.

JFE Holdings, Inc, the steelmaker reported first-half fiscal year 2010 sales fell 37.6% to ¥1.31 billion from ¥2.10 billion a year ago. Net loss in the first-half was ¥28.7 million compared to net profit of ¥153.1 million a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 79.63 or 0.77% to 10,362.62, and CSI 300 index in China higher 0.99 or 0.03% to 3,414.24. ASX 200 index in Australia decreased 29.10 or 0.60% to 4,830.30. The FTSE Bursa KL Composite index in Malaysia was lower 7.18 or 0.57% to 1,259.92. Markets in Hong Kong were closed today.

The Kospi Index in South Korea increased 16.94 or 1.03% to close at 1,657.11, SET index in Thailand closed higher 3.07 or 0.43% to 711.83. JSE Index in Indonesia decreased 0.23 or 0.01% to 2,467.71. The Sensex index in India decreased 70.31 or 0.42% to 16,740.50.

Europe Markets Review

In London FTSE 100 Index traded higher 20.81 or 0.40% to 5,263.38, in Paris CAC 40 Index increased 22.84 or 0.60% to 3,831.08 and in Frankfurt DAX index traded higher 43.63 or 0.76% to 5,783.88. In Zurich trading SMI increased 5.57 or 0.09% to 6,383.63.