Tokyo Closed 2% Lower

Elena
17 Feb, 2006
New York City

Asian-Pacific markets closed mixed. The Nikkei tumbled 330 points,or 2.06% on inflation concerns raised by strong GDP data, while South Korean Kospi surged 1.4%. European averages reached a fresh four-and-a-half year high in a quiet morning session. U.K''s Daily Mail & General Trust dropped over 11%. Computer maker Dell reported 52% profit jump in Q4 on 13% revenue growth, beating expectations.

U.S. MARKET AVERAGES

U.S. stock futures were sitting under the flat level, predicting a lower market opening on a sharp jump in crude oil prices and disappointing outlook released by computer maker Dell. On Thursday market averages advanced, with the Dow extending its multi-year high.

Computer maker Dell reported 52% profit jump in Q4 on 13% revenue growth, beating expectations, but forecast Q1 results below analysts' expectations.

Friday will be another day of heavy economic news release. Important inflation information and a report on consumer sentiment are due out later in the day. Producer price index for January is scheduled before the opening bell. Economists expect this key gauge of wholesale inflation to rise by 0.3% in the month, compared to the 0.9% increase recorded in December. Core PPI, which excludes the volatile food and energy sectors, is expected to advance by 0.2%.

Earnings reports on Friday are due from Campbell Soup Co. ((CPB)) and PG&E Corp ((PCG)).

Standard & Poor's 500 futures were down 0.9 point, below fair value. Dow Jones industrial average futures were down 9 points, and Nasdaq 100 futures were down 1.5 points.

INTERNATIONAL MARKETS NEWS

Asian-Pacific benchmarks ended Friday session mixed. The Nikkei sharply dropped 330 points, or 2.06%, despite higher-than-expected GDP growth. Across the region South Korea’s Kospi climbed 1.4%, Hong Kong’s Hang Seng gained 0.2%, while the Bombay Stock Exchange’s Sensitive index suffered a steep decline of 1.13%.

European stocks reached a new four-and-a-half year high in a quiet morning session Friday. Economic news from the U.S. and Japan failed to give a certain direction to the stocks and the U.K.’s Daily Mail & General Trust tumbled 11%. The German DAX 30 lost 0.1%, the French CAC 40 added 0.1%, and London’s FTSE 100 was slightly down st 5.827.

OIL, METALS, CURRENCIES

Crude oil prices advanced on renewed supply concerns, raised by Nigeria’s threat to declare ‘total war’ to all foreign oil companies. Light sweet crude for March delivery rose $1.29 to $59.75 a barrel. London Brent climbed $1.30 to $60.09.

European gold prices recovered from recent declines. In London gold traded at the fixed price of $545.75 bid per troy ounce, up from $540.80. In Zurich the precious metal traded at $546.20, up from $539.30. In Hong Kong gold rose $4.70 to close at $544.70. Silver opened at 9.36, up from $9.25.

The U.S. dollar advanced against most other major currencies. The euro traded at $1.1874, down from $1.1893. The dollar bought 118.32 yen, up from 117.74. The British pound stood at $1.7372, down from $1.7395.

EARNINGS NEWS

Dell, ((DELL)), computer producer, reported Q4 net income of 43 cents a share, up from 26 cents a share in the year-ago period on 13% revenue growth, even though desktop PC sales were unsatisfactory, topping analyst views of 41 cents a share. The increase was a reflection of strong demand for Dell's laptops, software and peripheral computer products.

Zale Corp, ((ZLC)), jewelry retailer, reported Q2 earnings of $1.78 a share, down from a profit of $1.91 a share a year-ago. If not for items, such as restructuring costs related to its closing of certain Bailey Banks & Biddle locations and a tax benefit from the repatriation of foreign earnings, the company reported a profit of $1.96 a share. Revenue advanced 2.3%. The analysts’ estimates were for a profit of $1.91 a share in Q2.

Sirius Satellite Radio, ((SIRI)), media firm, reported a Q4 loss of 23 cents a share, slightly down from a loss of 21 cents a share in the year-ago quarter despite revenue growth, missing by a penny analyst estimate of a loss of 22 cents. Subscriptions advanced 190% and the company expects six million subscribers by the end of 2006.

RadioShack Corp, ((RSH)), home electronics retailer, posted a decline in Q4 net income of 36 cents a share, down from 81 cents a share in the year-earlier period due to weakness in wireless sales and lower sales in its high-margin categories. Excluding an accounting change Q4 of 2005 earnings per share was 38 cents, missing analysts’ forecasts of 67 cents a share. As part of a restructuring plan, RadioShack will replace old, slower-moving merchandise with new, faster- moving merchandise within higher growth categories. Closure of 400 to 700 company-operated stores and expand its kiosk business is envisaged.

American Pharmaceutical Partners, ((APPX)), producer of injectable pharmaceutical products, reported Q4 net income of 32 cents a share, up 7% from 30 cents a share in the year-earlier quarter on 18% revenue growth, missing analysts’ expectations of 35 cents a share.

J.M. Smucker Co, ((SJM)), jelly maker, reported that Q3 net income shed 13.3% to 54 cents a share due to 2.5% sales decline. Adjusted earnings from continuing operations before restructuring costs came to 68 cents a share, down vs. 70 cents, missing analyst estimate of 73 cents.

Hewlett-Packard Co., ((HPQ)), computer and printer maker, reported a 30% jump in profit to 42 cents a share, up from 32 cents a share a year-ago and a nearly 6% increase in revenue for its Q1 on cost cutting and enhanced profit and sales across its portfolio of businesses. If not for amortization and other items, the company would have reported net income of 48 cents a share, topping expectations of 44 cents.