U.S. Stocks Sideways; Services Shrink

Mukesh Buch
03 Dec, 2009
New York City

U.S. stocks traded sideways. General Electric and Comcast agreed to form a venture that will transfer the majority stake in NBC Universal to cable company. The service industry index in November fell and weekly claims in the last week decreased.

[R]12:10 PM, New York – U.S. stocks traded sideways. General Electric and Comcast agreed to form a venture that will transfer the majority stake in NBC Universal to cable company. The service industry index in November fell and weekly claims in the last week decreased.[/R]

Stocks in New York traded sideways and commodities retain their recent advances. General Electric and Comcast agreed to form a venture with a majority stake controlled by the cable company in NBC Universal that values the entertainment company at $37 billion.

The service industry index showed a decline in November according to the latest release from the Institute for Supply Management. The index decreased to 48.7 in the month from 50.6 in October.

Crude oil and gold edged lower. Gold traded down $4.70 to $1,208.30 and oil declined 1% to $75.76 a barrel.

Seasonally adjusted weekly jobless claims decreased 5,000 to 457,000 from the revised previous week claims of 462,000. The preliminary unemployment rate in the week ending November 21 was 4.1%, unchanged from the prior week''s unrevised rate of 4.1%.

Nonfarm business sector labor productivity increased at a 8.1% annual rate during the third quarter of 2009, the largest gain in productivity since the third quarter of 2003. Labor costs drops 2.5% and unit labor cost fell to 1.4% in the last four quarters.

During the third quarter Euro-area of 16 nations GDP increased 0.4% and in the EU27 it increased 0.3% from second quarter 2009. Seasonally adjusted GDP compared to the quarter a year ago decreased 4.1% in the euro area and 4.3% in the EU27 in the third quarter of 2009.

Earnings Review

Del Monte Foods Company, distributor of branded food and pet products reported second quarter sales rose 6.4% to $958.9 million from $901.0 million a year ago. Net income in the quarter rose 24.2% to $62.6 million or 31 cents per diluted share compared to net income of $50.4 million or 25 cents per share a year ago.

Toll Brothers, Inc, the luxury homebuilder reported fourth quarter revenues fell 29.6% to $486.6 million from $691.1 million a year ago. Net loss in the quarter was $111.4 million or 68 cents per diluted share compared to net loss of $78.8 million or 49 cents per share a year ago.

Siemens AG, an electronics and electrical engineering company said fourth quarter revenues fell 9% to €19.7 billion from €21.7 billion a year ago. Net loss in the quarter was €1.13 billion or €1.31 per diluted share compared to net loss of €2.46 billion or €2.85 per share million a year ago.

For the fiscal year 2009 revenues fell 0.8% to €76.7 billion from €77.3 billion a year ago. Net profit for the year fell 59.6% to €2.3 billion or €2.63 per diluted share compared to net profit of €5.7 billion or €6.39 per share million a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 368.73 or 3.84% to 9,977.67, and Hang Seng index in Hong Kong increased 264.30 or 1.19% to 22,553.87, and CSI 300 index in China lower 6.45 or 0.18% to 3,590.88. ASX 200 index in Australia increased 12.20 or 0.26% to 4,774.60. The FTSE Bursa KL Composite index in Malaysia was higher 1.20 or 0.09% to 1,272.35.

The Kospi Index in South Korea increased 23.37 or 1.47% to close at 1,615.00. SET index in Thailand closed higher 13.33 or 1.92% to 706.84. JSE Index in Indonesia increased 28.47 or 1.15% to 2,500.04. The Sensex index in India increased 15.77 or 0.09% to 17,185.68.

Europe Markets Review

In London FTSE 100 Index traded higher 14.31 or 0.27% to 5,341.70, in Paris CAC 40 Index increased 22.53 or 0.59% to 3,818.45 and in Frankfurt DAX index traded higher 29.79 or 0.52% to 5,811.47. In Zurich trading SMI increased 67.18 or 1.05% to 6,453.72.