U.S. Stocks Flat; December Job Loss of 84,000

123jump.com Staff
06 Jan, 2010
New York City

Stocks in New York were nearly unchanged after the release of private sector employment data. Orange juice futures traded near two-year high and natural gas and heating prices advance as well. Family Dollar surges 10% after quarterly net gains 14%.

[R]10:00 AM New York – Stocks in New York were nearly unchanged after the release of private sector employment data. Orange juice futures traded near two-year high and natural gas and heating prices advance as well. Family Dollar surges 10% after quarterly net gains 14%.[/R]

U.S. stocks in the early morning nudged lower as severe weather grips much of Northern Hemisphere. Energy and agriculture futures were in focus.

Freezing weather continues to wreak havoc in much of Northern hemisphere. Severe weather in China, Northern Europe and eastern region of North America has hampered travel plans of millions of people, driven the energy demand higher and affected crop in Florida.

Crude oil futures edged lower to $81.76 after trading near $82 a barrel but natural gas jumped 21 cents to $5.84 per mBtu. Gold increased $11.40 to $1,130.10 per ounce.

The dollar in the early trading hovered near $1.43 to a euro and 92.32 yen.

Orange juice concentrate futures for March delivery increased 4% or 5.65 cents to $1.48 a pound. The futures are at a two-year high.

Early indications are that the freezing weather may have damaged less than 1% of crop in Florida. However, National Weather Service is forecasting temperatures to dip to 27 degrees Fahrenheit.

The estimate released by the U.S. Department of Agriculture in early December forecasted the orange crop to decline 17% this season to 135 million boxes from 162 million boxes a year ago.

U.S. Treasury yields have been on the rise for the last fifteen days. The yield on 10-year bond increased to 3.77% and 30-year bonds edged lower to 4.63%.

Private Sector Payrolls Fall 84,000

Job losses continue in the private sector but at the slowest pace in a year according to the latest survey by ADP. Employers cut 84,000 in December, from the revised 145,000 job losses in November from the earlier estimate of 169,000.

The U.S. Labor Department is scheduled to release its estimate of December unemployment data on Friday. Economists are estimating the rate to increase to 10.1% from 10%.

U.S. Earnings Review

Family Dollar Stores, Inc, the discount retailer reported first quarter sales rose 4% to $1.82 billion from $1.75 billion a year ago. Net income in the quarter rose 14% to $67.6 million or 49 cents per diluted share compared to net income of $59.3 million or 42 cents per share a year ago. Comparable same-stores sales rose 2.4%.

Monsanto Company, the seed maker reported first quarter sales fell 36% to $1.70 billion from $2.65 billion a year ago. Net loss in the quarter was $19 million or 3 cents per diluted share compared to net income of $556 million or $1.00 per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 49.62 or 0.46% to 10,731.45, and Hang Seng index in Hong Kong increased 137.09 or 0.62% to 22,416.67, and CSI 300 index in China lower 22.31 or 0.63% to 3,541.73. ASX 200 index in Australia decreased 2.90 or 0.06% to 4,921.40. The FTSE Bursa KL Composite index in Malaysia was higher 4.93 or 0.38% to 1,293.17.

The Kospi Index in South Korea increased 14.70 or 0.87% to close at 1,705.32. SET index in Thailand closed higher 3.62 or 0.49% to 735.73. JSE Index in Indonesia decreased 1.98 or 0.08% to 2,603.30. The Sensex index in India increased 14.89 or 0.08% to 17,701.13.

Europe Markets Review

In London FTSE 100 Index traded lower 9.55 or 0.17% to 5,512.95, in Paris CAC 40 Index decreased 0.15 or 0.00% to 4,012.76 and in Frankfurt DAX index traded higher 2.57 or 0.04% to 6,034.43. In Zurich trading SMI increased 3.82 or 0.06% to 6,583.08.