U.S. Stocks Open Higher; Deficit Falls

123jump.com Staff
10 Dec, 2009
New York City

U.S. stocks open higher after weekly jobless claims stabilize and trade deficit declined in October. The Bank of England left its key lending rate at 0.5% and kept in place its bonds purchase plan. Korea and Iceland lowered their lending rates.

[R]8:30 AM New York – U.S. stocks are expected to open higher after weekly jobless claims stabilize and trade deficit declined in October. The Bank of England left its key lending rate at 0.5% and kept in place its bonds purchase plan. Korea and Iceland lowered their lending rates.[/R]

U.S. stocks open higher after October trade deficit declined and weekly jobless claims at the end of last week stabilized.

Seasonally adjusted weekly jobless claims increased 17,000 to 474,000 from the revised previous week claims of 457,000. The preliminary unemployment rate in the week ending November 28 was 3.9%, a decline from the prior week''s unrevised rate of 4.1%.

Of the 5.16 million people on jobless claims, 4.59 people are on extended benefits program that provide assistance for as much as 20 weeks. Workers in 50 of the 53 states and territories are eligible to receive at least 13-week of additional benefits.

Trade Deficit Declines in October

Trade deficit in October decreased to $32.9 billion from $35.7 billion in September on exports slightly edge up to$133.4 billion and imports edge up to $169.0 billion. The goods deficit decreased to $44.8 billion and service surplus increased to $35.7 billion.

U.S. Earnings Review

Ciena Corporation, the network equipment maker reported fourth quarter revenues fell 2% to $176.3 million from $179.7 million a year ago. Net loss in the quarter was $26.7 million or 29 cents per diluted share compared to net loss of $25.4 million or 28 cents per share a year ago.

Total revenues for the fiscal year 2009 fell 28% to $652.6 million from $ 902.4 million a year ago. Net loss for the year was $581.2 million or $6.37 per diluted share compared to net income of $38.9 million or 42 cents per share a year ago.

Ciena Corporation ((CIEN)) in the last one year traded as high as $16.64 in September 2009 and as low as $4.98 in March 2009. Based on the yesterday’s closing price of $13.23 the company has market cap of $1.21 billion.

Costco Wholesale Corporation, the wholesale-club operator reported first quarter revenues rose 5.5% to $17.3 billion from $16.4 billion a year ago. Net income in the quarter rose 1.1% to $266 million or 60 cents per diluted share compared to net income of $263 million or 60 cents per share a year ago.

Bank of England Left Rates Unchanged

The Bank of England left its key lending rate unchanged at 0.5% and did not revise its plan to purchase £220 billion of government bonds.

Ireland’s government said it plans to cut salaries of employees including nurses, teachers and police and emergency staff to lower its swelled budget deficit of 11.7%.

Iceland also lowered its key lending rate to 10%.

European Earnings Review

DS Smith plc, the packaging and office products supplier said first-half revenues fell 8% to £1.01 billion from £1.10 billion a year ago. Net profit for the first-half rose 35% to £23.4 million or 5.9 pence per diluted share compared to net profit of £17.3 million or 4.4 pence per share a year ago.

Mulberry Group plc, a luxury fashion brand said first-half revenues rose 16% to £32.3 million from £27.8 million a year ago. Net profit for the first-half rose 14.6% to £1.02 million or 1.8 pence per diluted share compared to net profit of £0.89 million or 1.5 pence per share a year ago.

Premier Farnell plc, an international electronic products distributor said third quarter revenues fell 4.4% to £199.8 million from £209.1 million a year ago. Net profit for the quarter fell 38% to £7.6 million or 2.1 pence per diluted share compared to net profit of £12.3 million or 3.3 pence per share a year ago.

Industria de Diseno Textil SA (Inditex SA), the textile industry said nine months sales rose 5.4% to €7.8 billion from €7.4 billion a year ago. Net profit in the nine months fell 1.4% to €831 million or 133 cents per diluted share compared to net profit of €843 million or 136 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 141.90 or 1.42% to 9,862.82, and Hang Seng index in Hong Kong decreased 41.72 or 0.19% to 21,700.04, and CSI 300 index in China higher 22.76 or 0.64% to 3,577.24. ASX 200 index in Australia decreased 31.20 or 0.67% to 4,606.70. The FTSE Bursa KL Composite index in Malaysia was higher 4.14 or 0.33% to 1,259.90.

The Kospi Index in South Korea increased 18.56 or 1.14% to close at 1,652.73. JSE Index in Indonesia increased 5.14 or 0.21% to 2,486.44. The Sensex index in India increased 64.09 or 0.37% to 17,189.31. The Market in Thailand were closed today.

Europe Markets Review

In London FTSE 100 Index traded higher 25.99 or 0.50% to 5,229.88, in Paris CAC 40 Index increased 22.27 or 0.59% to 3,779.66 and in Frankfurt DAX index traded higher 36.94 or 0.65% to 5,684.78. In Zurich trading SMI increased 60.66 or 0.96% to 6,412.37.