Markets Mixed, Dell in Focus

07 Apr, 2005
New York City

European and Asian markets were mixed Thursday. In the U.S. investors shift attention to company news as earnings season began. Dell and retailers guide positive show.

European and Asian markets were mixed Thursday. In the U.S. investors shift attention to company news as earnings season began. Dell and retailers guide positive show.

The dollar slipped against the euro and the yen as investors judged U.S. inflation is well controlled for the moment.

Three U.S. Federal Reserve officials are scheduled to speak later in the day about monetary policy, following Mr. Chairman Alan Greenspan’s failure to raise inflation warnings.

European central bankers are expected to leave benchmark interest rates unchanged, at 2% in the euro zone and at 4.75% in the U.K.

Investors in the U.S. are shifting attention to company news after markets jittered with oil prices and reports of improved oil supplies in the last couple of days.

Dell Inc. (DELL) confirmed its forecast for first-quarter earnings of 37 cents a share on revenue of $13.4 billion, compared with 28 cents a share on sales of $11.54 billion a year ago.

The computer maker more than doubled its stock-buyback goal for the current quarter in a pursuit to maintain heady growth in the next several years. Dell plans to spend $2 billion to repurchase stock.

The company predicted annual revenue will grow from $49 billion to $80 billion over the next three to four years, potentially faster than analysts’ expectations.

Specialty retailer Bed Bath & Beyond (BBY) said fourth-quarter profit rose to 59 cents a share from 47 cents a year ago. Revenue surged 13 percent to $1.47 billion.

Clothing retailer Men's Warehouse (MW) said same-store sales rose 17.7 percent in March, bringing total sales to $159.5 million. The company expects to beat its previously issued earnings outlook.

Coffee chain Starbucks Corp. (SBUX) said March revenue surged 22 percent to $559 million driven by food and espresso drinks sales. Same-store sales rose 6 percent.

Alcoa Inc. (AA), the world's largest aluminum company, said first-quarter earnings dropped to 30 cents a share from 41 cents a year ago because of high aluminum prices and efforts to restart idled production facilities.

Revenue rose 13 percent to $6.29 billion.

Kodak Co. (EK) said 2004 earnings came in at 88 cents a share, down from 92 cents a year ago, reflecting accounting errors in taxation, pensions and restructuring. Revenue was up 5 percent to $13.52 billion.