U.S. Stocks Fall on Jobless Claims Increase

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

U.S. stocks traded lower after weekly jobless claims increased in the last week. Goldman Sachs quarterly net surged to $4.95 billion. Quarterly sales at Starbucks increased 4% and at eBay surged 16%. Commodities were on the decline after China reported a surge in economic expansion.

[R]9:35 AM New York – U.S. stocks traded lower after weekly jobless claims increased in the last week. Goldman Sachs quarterly net surged to $4.95 billion. Quarterly sales at Starbucks increased 4% and at eBay surged 16%.[/R]

U.S. stocks were on the defensive after jobless claims increased in the last week and tighter economic measures may be needed in China. Goldman Sachs reported higher than expected earnings. Starbucks quarterly sales increased 4% and eBay fourth quarter revenues increased 16%.

Seasonally adjusted weekly jobless claims increased 36,000 to 482,000 from the revised previous week claims of 446,000. The preliminary insured unemployment rate in the week ending January 9 was 3.5% unchanged from the prior week''s unrevised rate of 3.5%.

Continuing claims count that does not include people receiving extended benefits declined 18,000 to 4.6 million in the week ended on Jan 9. Jobless claims on the extended benefits increased 613,000 to 5.92 million in the prior week.

Commodities and metals were on the defensive after Chinese economy expanded at 10.7% in the fourth quarter and at 8.7% in 2009. The surge worried commodities markets and prompted speculation that China will soon release tighter lending regulations.

Earnings Review

Goldman Sachs Group Inc reported fourth quarter net income of $4.95 billion or $8.20 a share compared to a loss of $2.12 billion or $4.97 a share in the quarter a year ago. Net revenues declined to $9.62 billion from $12.4 billion in the third quarter.

Starbucks Corporation, the coffee chain said first quarter revenues rose 4% to $2.72 billion from $2.62 billion a year ago. Net income in the quarter rose 275.6% to $241.5 million or 32 cents per diluted share compared to net income of $64.3 million or 9 cents per share a year ago.

eBay Inc, the e-commerce company said fourth quarter revenues rose 16% to $2.37 billion from $2.04 billion a year ago. Net income in the quarter rose 268% to $1.35 billion or $1.02 per diluted share compared to net income of $367.2 million or 29 cents per share a year ago.

Net revenues for the fiscal year 2009 rose 2% to $8.73 billion from $8.54 billion a year ago. Net income for the year rose 34% to $2.39 billion or $1.83 per diluted share compared to net income of $1.78 billion or $1.36 per share a year ago.

Kinder Morgan Energy Partners, L.P., the pipeline transportation and energy storage company said fourth quarter revenues fell 16.6% to $1.91 billion from $2.29 billion a year ago. Net income in the quarter rose 29% to $343.8 million or 34 cents per diluted share compared to net income of $266.1 million or 19 cents per share a year ago.

Revenues for the fiscal year 2009 fell 40% to $7.0 billion from $11.7 billion a year ago. Net income for the year fell 0.8% to $1.29 billion or $1.26 per diluted share compared to net income of $1.30 billion or $1.94 per share a year ago.