U.S., World Stocks Lackluster; Jiabao Comments

Mayank Mehta
12 Nov, 2009
New York City

U.S. indexes traded sideways after comments from world leaders in Asia. Chinese Premier Jiabao observed that world economic recovery will be uneven and slow. U.S. Treasury Secretary Geithner said that early progress is made in solving world economic imbalances.

[R]10:45 AM New York – U.S. indexes traded sideways after comments from world leaders in Asia. Chinese Premier Jiabao observed that world economic recovery will be uneven and slow. U.S. Treasury Secretary Geithner said that early progress is made in solving world economic imbalances.[/R]

Asian markets focused on the comments from the Chinese and U.S. leaders.

Chinese Premier Wen Jiabao indicated that worst of the current financial crisis is behind us but the recovery in the global economy will be “a slow and bumpy process.” Premier Jiabao comments were televised from Beijing.

U.S. Treasury Secretary Timothy Geithner focused on the macro imbalances in the world economy and said that there is early progress in addressing global mismatch in spending and savings. Geithner commented at a press briefing in Singapore after the APEC meeting.

Seasonally adjusted weekly jobless claims in the U.S. decreased 12,000 to 502,000 from the revised previous week claims of 514,000. The preliminary unemployment rate in the week ending October 31 unchanged from the prior week''s unrevised rate of 4.3%.

Two leading chip makers settled their patent dispute. Intel Corp agreed to pay Advanced Micro Devices $1.25 billion and agreed into a comprehensive cross licensing arrangement for five years. Intel also agreed to a certain business practice requirements in the future to meet the terms of the agreement.

U.S. Earnings Review

Advance Auto Parts, Inc., the automotive parts retailer said third quarter sales rose 6% to $1.26 billion from $1.19 billion a year ago. Net income in the quarter rose 10.3% to $62 million or 65 cents per diluted share compared to net income of $56.2 million or 58 cents per share a year ago.

Applied Materials, Inc, the semiconductor equipment maker said fourth quarter sales fell 25% to $1.53 billion from $2.04 billion a year ago. Net income in the quarter fell 40.3% to $137.9 million or 10 cents per diluted share compared to net income of $231.1 million or 17 cents per share a year ago.

Net sales for the fiscal year 2009 fell 38.4% to $5.01 billion from $8.13 billion a year ago. Net loss for the year was $305.3 million or 23 cents per diluted share compared to net income of $960.7 million or 70 cents per share a year ago.

Computer Sciences Corporation, the information technology services provider said second quarter revenues fell 4.7% to $4.04 billion from $4.24 billion a year ago. Net income in the quarter fell 52.2% to $216 million or $1.40 per diluted share compared to net income of $452 million or $2.95 per share a year ago.

Ctrip.com International, Ltd., the travel service provider said third quarter revenues rose 47% to Rmb 583.4 million from Rmb 397.0 million a year ago. Net income in the quarter rose 80.4% to Rmb 188.5 million or Rmb 2.65 per ADS compared to net income of Rmb 104.5 million or Rmb 1.52 per ADS a year ago.

European Companies Earnings

Aegon NV, an insurer said third quarter net profit €145 million compared to net loss of €329 million a year ago.

Anheuser-Busch InBev NV, the consumer products company said third quarter revenues rose 61% to $9.76 billion from $6.06 billion a year ago. Net profit in the quarter rose 124% to $1.55 billion or 98 cents per diluted share compared to net profit of $690 million or 72 cents per share a year ago.

Celesio AG, the pharmaceutical distribution company said nine months revenues fell 0.6% to €15.7 billion from €15.8 billion a year ago. Net loss in the nine months was €72 million or €0.44 per diluted share compared to net profit of €192.7 million or €1.12 per share a year ago.

Davide Campari-Milano SpA, the manufacturer of spirits said nine months revenues rose 7.2% to €696.5 million from €649.6 million a year ago. Pre-tax profit in the nine months rose 14.8% to €133.7 million compared to profit of €116.5 million a year ago.

Euro Disney SCA, an entertainment company said full-year revenues fell 7% to €1.23 billion from €1.32 billion a year ago. Net loss in the full-year was €55.5 million compared to net loss of €2.8 million a year ago.

K+S AG, the chemical company said third quarter revenues fell 51.6% to €698.1 million from €1.44 billion a year ago. Net profit in the quarter fell 99% to €3.7 million compared to net profit of €333.5 million a year ago.

Repsol YPF, S.A., an integrated oil and gas company said third quarter net profit fell 47.4% to €368 million or €0.30 per diluted share compared to net profit of €699 million or €0.58 per share a year ago.

Rexel SA, the distributor of electrical parts said third quarter revenues fell 17.6% to €2.8 billion from €3.4 billion a year ago. Net profit in the quarter fell 17.5% to €28.3 million compared to net profit of €34.3 million a year ago.

RWE AG, the power producer said nine months revenues fell 2% to €33.77 billion from €34.45 billion a year ago. Net profit in the nine months rose 26% to €2.79 billion or €5.24 per diluted share compared to net profit of €2.21 billion or €4.09 per share a year ago.

Salzgitter AG, the steelmaker said third quarter revenues fell 46% to €1.83 billion from €3.41 billion a year ago. Net loss in the quarter was €67.0 million or €1.26 per diluted share compared to net profit of €252.1 million or €4.66 per share a year ago.

Telefonica, S.A., the telecommunications and media company said third quarter revenues fell 5.7% to €14.13 billion from €14.99 billion a year ago. Net profit in the quarter fell 0.5% to €1.99 billion compared to net profit of €2.0 billion a year ago.

Asian Companies Earnings

Alps Electric Co., Ltd, in the last one year traded as high as ¥691.00 in September 2009 and as low as ¥249.00 in March 2009. Based on the yesterday’s closing price of ¥517.00 the company has market cap of ¥92.66 billion.



Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 67.19 or 0.68% to 9,804.49, and Hang Seng index in Hong Kong decreased 229.64 or 1.01% to 22,397.57, and CSI 300 index in China higher 4.32 or 0.12% to 3,499.99. ASX 200 index in Australia decreased 9.10 or 0.19% to 4,747.90. The FTSE Bursa KL Composite index in Malaysia was higher 1.60 or 0.13% to 1,271.75.

The Kospi Index in South Korea decreased 22.09 or 1.39% to close at 1,572.73. SET index in Thailand closed lower 21.18 or 2.95% to 696.72. JSE Index in Indonesia increased 16.40 or 0.68% to 2,420.28. The Sensex index in India decreased 153.57 or 0.91% to 16,696.03.

Europe Markets Review

In London FTSE 100 Index traded higher 20.12 or 0.38% to 5,286.87, in Paris CAC 40 Index increased 9.10 or 0.24% to 3,823.49 and in Frankfurt DAX index traded higher 18.96 or 0.33% to 5,687.31. In Zurich trading SMI decreased 14.68 or 0.23% to 6,360.02.