U.S. Trade Deficit Rises; Stocks Struggle

123jump.com Staff
13 Nov, 2009
New York City

U.S. trade deficit in September as demand for auto parts picks up and crude oil prices rise. Monthly deficit surges to the high for the year to $36.5 billion. Walt Disney fourth quarter earnings increased 18%. Abercrombie & Fitch net drops 39%. European markets turn lower.

[R]10:00 AM New York – U.S. trade deficit in September as demand for auto parts picks up and crude oil prices rise. Monthly deficit surges to the high for the year to $36.5 billion. Walt Disney fourth quarter earnings increased 18%. Abercrombie & Fitch net drops 39%. European markets turn lower.[/R]

U.S. stocks opened mixed with tech stocks trading higher. Earnings from Abercrombie & Fitch and Walt Disney lifted stocks select stocks in the entertainment and retail sectors.

U.S. trade deficit surged in September to $36.5 billion and August deficit was revised to $30.8 billion according to the Commerce Department in Washington. Imports increased 5.8% to $168.4 billion and exports gained 2.9% to $132 billion in the month.

The goods deficit decreased to $47.6 billion and service surplus increased to $36.5 billion.

Crude oil declined 1% to $76.16 and gold edged lower but traded above $1,106 an ounce.

European markets after edging higher turned lower as the markets approached the final hour of trading.

Earnings Review

Abercrombie & Fitch Co., the clothing retailer reported third quarter sales fell 14.6% to $765.4 million from $896.3 million a year ago. Net income in the quarter fell 39.3% to $38.8 million or 44 cents per diluted share compared to net income of $63.9 million or 72 cents per share a year ago.

J. C. Penney Company, Inc, the department-store operator reported third quarter sales fell 3.2% to $4.18 billion from $4.32 billion a year ago. Net income in the quarter fell 78.2% to $27 million or 11 cents per diluted share compared to net income of $124 million or 56 cents per share a year ago. Comparable same-store sales decreased 4.6%.

Blockbuster Inc, a provider of media entertainment said third quarter revenues fell 21.5% to $910.5 million from $1.16 billion a year ago. Net loss in the quarter was $116.8 million or 60 cents per diluted share compared to net loss of $20.6 million or 11 cents per share a year ago.

Copa Holdings, S.A., the provider of airline passenger and cargo service said third quarter revenues fell 7.2% to $323.7 million from $348.9 million a year ago. Net income in the quarter rose 87.4% to $43.1 million or 99 cents per diluted share compared to net income of $23.0 million or 53 cents per share a year ago.

Nordstrom, Inc, the department store operator said third quarter revenues rose 4.3% to $1.96 billion from $1.88 billion a year ago. Net income in the quarter rose 17% to $83 million or 38 cents per diluted share compared to net income of $71 million or 33 cents per share a year ago.

Comparable same-store sales decreased 1.2%.

The Walt Disney Company, the entertainment company said fourth quarter revenues rose 4.4% to $9.87 billion from $9.45 billion a year ago. Net income in the quarter rose 18% to $895 million or 47 cents per diluted share compared to net income of $760 million or 40 cents per share a year ago.

Revenues for the fiscal year 2009 fell 4.5% to $36.1 billion from $37.8 billion a year ago. Net income for the year fell 25.3% to $3.31 billion or $1.76 per diluted share compared to net income of $4.43 billion or $2.28 per share a year ago.

Earnings Review

Arnoldo Mondadori Editore SpA, an editorial group said nine months sales fell 19% to €1.11 billion from €1.37 billion a year ago. Net profit for the nine months fell 54% to €27.1 million or €0.11 per diluted share compared to net profit of €58.8 million or €0.25 per share a year ago.

Benetton Group S.p.A, the clothing retailer said third quarter revenues rose 13% to €609 million from €538 million a year ago. Net profit for the quarter rose 46% to €54 million compared to net profit of €37 million a year ago.

Bulgari SpA, the luxury jeweler said third quarter revenues fell 9% to €233.2 million from €256.2 million a year ago. Net profit for the quarter fell 69.6% to €7 million compared to net profit of €23 million a year ago.

Compagnie Financiere Richemont SA, a luxury goods company said first-half revenues fell 14.3% to €2.4 billion from €2.8 billion a year ago. Net profit for the first-half fell 60% to €344 million or €0.62 per diluted share compared to net profit of €862 million or €1.53 per share a year ago.

Dexia SA, the bank said third quarter revenues rose 334.6% to €1.37 billion from €315 million a year ago. Net profit for the quarter was €274 million or €0.16 per diluted share compared to net loss of €1.54 billion or €1.34 per share a year ago.

Iberia Lineas Aereas de Espana SA, the airline operator said third quarter revenues fell 19.6% to €1.17 billion from €1.46 billion a year ago. Net loss for the quarter was €16.4 million or €0.02 per diluted share compared to net profit of €30.4 billion or €0.03 per share a year ago.

Natixis SA, the bank said third quarter net banking income rose 1.5% to €1.35 billion from €1.33 billion a year ago. Net profit for the quarter was €268 million compared to net loss of €234 million a year ago.

Vivendi SA, the telecommunications services and media entertainment company said third quarter revenues fell 2.5% to €6.35 billion from €6.51 billion a year ago. Net profit for the quarter fell 78% to €600 million or €0.49 per diluted share compared to net profit of €2.76 billion or €2.35 per share a year ago.

Asian Companies Earnings

Japan Airlines Corporation, the provider of air transport services said first-half sales fell 29% to ¥764 billion from ¥1.07 trillion a year ago. Net loss for the first-half was ¥131.2 billion compared to net profit of ¥36.7 billion or ¥10.86 per share a year ago.

Mizuho Financial Group, Inc, the bank said first-half revenues fell 21.6% to ¥1.49 trillion from ¥1.90 trillion a year ago. Net profit for the first-half fell 7% to ¥87.8 billion or ¥6.17 per diluted share compared to net profit of ¥94.6 billion or ¥7,078.95 per share a year ago.

Mizuho Financial Group, Inc, in the last one year traded as high as ¥277,200.00 in December 2008 and as low as ¥166.00 in November 2009. Based on the yesterday’s closing price of ¥179.00 the company has market cap of ¥2.00 trillion.

Sumitomo Mitsui Financial Group, Inc, the bank said first-half sales fell 14% to ¥1.57 trillion from ¥1.82 trillion a year ago. Net profit for the first-half rose 48% to ¥123.5 billion or ¥125.97 compared to net profit of ¥83.3 billion or ¥9,964.41 per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 34.18 or 0.35% to 9,770.31, and Hang Seng index in Hong Kong increased 156.06 or 0.70% to 22,553.63, and CSI 300 index in China higher 18.73 or 0.54% to 3,518.72. ASX 200 index in Australia decreased 41.50 or 0.87% to 4,706.40. The FTSE Bursa KL Composite index in Malaysia was higher 0.79 or 0.06% to 1,270.96.

The Kospi Index in South Korea decreased 0.74 or 0.05% to close at 1,571.99. SET index in Thailand closed higher 1.61 or 0.23% to 698.33. JSE Index in Indonesia increased 6.52 or 0.27% to 2,426.80. The Sensex index in India increased 152.80 or 0.92% to 16,848.83.

Europe Markets Review

In London FTSE 100 Index traded higher 15.32 or 0.29% to 5,291.82, in Paris CAC 40 Index decreased 3.97 or 0.10% to 3,804.10 and in Frankfurt DAX index traded higher 14.09 or 0.25% to 5,678.05. In Zurich trading SMI decreased 13.59 or 0.21% to 6,342.17.