U.S. Stocks, Home Builders Rise

123jump.com Staff
02 Feb, 2010
New York City

U.S. stocks and commodities traded higher. Barnes & Noble increased after activist investor Ron Burkle sought to increase his stake in the book retailer to 37%. Index of pending home sales increased 1%. Earnings lifted stocks of D.R. Horton and Lexmark International.

[R]11:20 AM New York – U.S. stocks and commodities traded higher. Barnes & Noble increased after activist investor Ron Burkle sought to increase his stake in the book retailer to 37%. Index of pending home sales increased 1%. Earnings lifted stocks of D.R. Horton and Lexmark International.[/R]

U.S. stocks are trading higher in the early trading in the absence of any economic news and better than expected earnings reports.

Stocks have been on the slide for three weeks in a row as investors digest sovereign debt risks in Greece and Spain, tighter monetary policy in China and the prospect of more legislation in the U.S. for banks.

D.R. Horton, Inc, Lexmark International Inc, Rent-A-Center, Inc traded higher more than 9% after reporting better than expected earnings.

Barnes & Noble, Inc surged more than 9% after Ron Burkle asked the permission to increase his stake to 37% from his current stake of 19%.

Home builders were on the rise after the index of pending home sales in December increased 1% from November and jumped 11% from a year ago month according to the National Association of Realtors.

Commodities traded higher in the morning trading. Futures of crude oil increased $1.36 to $75.79. Gold edged up $9.70 to $1,114.70 an ounce.

Yields on 10-year Treasuries hovered near 3.65% and 30-year bonds at 4.57%.

Earnings Review

D.R. Horton, Inc, the homebuilder reported first quarter revenues rose 22% to $1.1 billion from $900.3 million a year ago. Net income in the quarter was $192 million or 56 cents per diluted share compared to net loss of $62.6 million or 20 cents per share a year ago.

Reinsurance Group of America, Incorporated, the insurance company said fourth quarter revenues rose 40.6% to $1.94 billion from $1.38 billion a year ago. Net income in the quarter was $112.4 million or $1.52 per diluted share compared to net income of $9.4 million or 14 cents per share a year ago.

Rent-A-Center, Inc, the rent-to-own operator said fourth quarter revenues fell 4% to $672.9 million from $699.8 million a year ago. Net income in the quarter rose 21% to $43.7 million or 66 cents per diluted share compared to net income of $36.1 million or 54 cents per share a year ago.

Total revenues for the fiscal year 2009 fell 4.5% to $2.75 billion from $2.88 billion a year ago. Net income for the year rose 20.3% to $167.9 million or $2.52 per diluted share compared to net income of $139.6 million or $2.08 per share a year ago.

Tupperware Brands Corporation, the direct seller of consumer products said fourth quarter sales rose 20% to $626 million from $521.7 million a year ago. Net income in the quarter rose 28% to $84.1 million or $1.31 per diluted share compared to net income of $65.8 million or $1.05 per share a year ago.