Weak Retail Sales, U.S. Jobless Claims Rise

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

U.S. stocks traded lower after retail sales declined and weekly jobless claims increased. Prices of imported goods were unchanged in December but exported goods increased 0.6%. Briggs & Stratton reported latest quarterly earnings per share of 6 cents and CRA International of 23 cents.

[R]9:35 AM New York – U.S. stocks traded lower after retail sales declined and weekly jobless claims increased. Prices of imported goods were unchanged in December but exported goods increased 0.6%. Briggs & Stratton reported latest quarterly earnings per share of 6 cents and CRA International of 23 cents.[/R]

Stocks in early trading in New York declined after weaker than expected retail sales and an increase in jobless claims.

December retail sales adjusted for seasonality and calendar decreased 0.3% to $353 billion from November and up 5.4% from a year ago. November retail sales revised lower to 1.8% from the previous estimate of 1.3%.

Seasonally adjusted weekly jobless claims increased 11,000 to 444,000 from the revised previous week claims of 433,000. The preliminary insured unemployment rate in the week ending January 2 fell 0.1%, unchanged from the prior week''s unrevised rate of 3.6%.

December import price index unchanged led by 1.4% decrease in fuel prices in December. The index for export prices increased 0.6% after rising 0.9% in November.

Economic conditions in ten of the twelve Fed Districts are modestly improving but conditions in Richmond and Philadelphia Fed Districts are still mixed. Home prices have changed little in most Districts and residential construction is low in all Districts.

Earnings in Review

Briggs & Stratton reported 6 cents a share in the latest quarter, CRA International earned 23 cents a share and Shuffle Master, Inc quarterly net was 26 cents a share.

Stocks of banks and brokerage firms traded sideways ahead of earnings from banks and brokerage firms. JP Morgan Chase is scheduled to release earnings tomorrow and Goldman Sachs and Morgan Stanley are scheduled next week.

Intel is expected to report better than expected earnings after the close today.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 172.65 or 1.61% to 10,907.68, and Hang Seng index in Hong Kong decreased 31.65 or 0.15% to 21,716.95, and CSI 300 index in China higher 47.91 or 1.40% to 3,469.05. ASX 200 index in Australia increased 29.90 or 0.61% to 4,898.00. The FTSE Bursa KL Composite index in Malaysia was higher 5.20 or 0.40% to 1,294.71.

The Kospi Index in South Korea increased 14.36 or 0.86% to close at 1,685.77. SET index in Thailand closed higher 2.68 or 0.36% to 749.72. JSE Index in Indonesia increased 12.31 or 0.47% to 2,645.18. The Sensex index in India increased 75.07 or 0.43% to 17,584.87.

Europe Markets Review

In London FTSE 100 Index traded higher 31.22 or 0.57% to 5,504.70, in Paris CAC 40 Index increased 19.78 or 0.49% to 4,020.64 and in Frankfurt DAX index traded higher 33.25 or 0.56% to 5,996.39. In Zurich trading SMI increased 74.04 or 1.13% to 6,628.59.