U.S. Stocks, Metals Decline; Jobless Claims Up

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

U.S. stocks followed world markets and traded lower in the early trading. Initial claims of unemployment increased 1,000 to 434,000 at the end of last week. Lennar, the troubled home builder Lennar reported a surprise quarterly profit but still lost money in 2009.

[R]10:00 AM New York – U.S. stocks followed world markets and traded lower in the early trading. Initial claims of unemployment increased 1,000 to 434,000 at the end of last week. Lennar, the troubled home builder Lennar reported a surprise quarterly profit but still lost money in 2009.[/R]

New York stocks opened lower after world markets were on the retreat. China increased its lending rate for the first time in more than four months and finance minister of Japan reiterated his preference for lower yen. The Bank of England left its key lending rate unchanged amidst mixed economic data in the UK.

Freezing weather in most of the northern hemisphere continues to drive energy demand higher and disrupt passenger travel and commodities transportation.

The People’s Bank of China offered yields for its three-month bill at 1.3684% from 1.328%.

Seasonally adjusted weekly jobless claims increased 1,000 to 434,000 from the revised previous week claims of 433,000. The preliminary insured unemployment rate in the week ending December 26 was fell 0.2%, unchanged from the prior week''s unrevised rate of 3.8%.

Commodities were on the decline in New York trading but edged higher in London. The immediate futures of crude oil in New York decreased 35 cents to $82.82 a barrel and natural gas decreased 12 cents to $5.89 per mBtu. Gold decreased $4.10 an ounce to $1,132.40.

The dollar traded at $1.4322 to a euro and 93.22 yen and yield on 10-year U.S. bonds hovered near 3.81%.

Earnings Review

Bed Bath & Beyond Inc, the housewares retailer said third quarter sales rose 11% to $1.98 billion from $1.78 billion a year ago. Net income in the quarter rose 72.5% to $151.3 million or 58 cents per diluted share compared to net income of $87.7 million or 34 cents per share a year ago.

Christopher & Banks Corporation, a women''s apparel retailer said third quarter sales fell 7.7% to $132 million from $143 million a year ago. Net income in the quarter rose 75% to $7.0 million or 19 cents per diluted share compared to net income of $4.0 million or 11 cents per share a year ago. Comparable same-store sales fell 8.4%.

Immucor, Inc, the blood-testing products maker said second quarter sales rose 13% to $82.6 million from $73.0 million a year ago. Net income in the quarter rose 14% to $19.7 million or 28 cents per diluted share compared to net income of $17.3 million or 24 cents per share a year ago.

Constellation Brands, Inc, the wine and spirits maker reported third quarter sales fell 6% to $1.23 billion from $1.31 billion a year ago. Net income in the quarter fell 47% to $44.1 million or 20 cents per diluted share compared to net income of $83.5 million or 38 cents per share a year ago.

Constellation Brands, Inc ((STZ)) in the last one year traded as high as $17.56 in November 2009 and as low as $10.72 in April 2009. Based on the yesterday’s closing price of $16.13 the company has market cap of $3.57 billion.

Lennar Corporation, the homebuilder reported fourth quarter revenues fell 28.6% to $913.7 million from $1.28 billion a year ago. Net income in the quarter was $35.6 million or 19 cents per diluted share compared to net loss of $811 million or $5.12 per share a year ago.

Total revenues for the fiscal year 2009 fell 32% to $3.12 billion from $4.58 billion a year ago. Net loss for the year was $417.1 million or $2.45 per diluted share compared to net loss of $1.11 billion or $7.00 per share a year ago.