Weekly Jobless Claims Fail to Spark U.S. Indexes

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

U.S. stocks traded lackluster after weekly jobless claims decreased and the EU leaders said that Greece will not be left alone and a bailout package is in works. PepsiCo Inc fourth quarter earnings nearly doubled. Prudential Financial adjusted earnings increased but lower than expected.

[R]9:40 AM New York – U.S. stocks traded lackluster after weekly jobless claims decreased and the EU leaders said that Greece will not be left alone and a bailout package is in works. PepsiCo Inc fourth quarter earnings nearly doubled. Prudential Financial adjusted earnings increased but lower than expected.[/R]

U.S. stocks traded higher in the early morning after the release of fewer than expected weekly jobless claims and a deal involving Germany and France to provide a financial assistance to Greece under tough conditions.

Seasonally adjusted weekly jobless claims decreased 43,000 to 440,000 from the revised previous week claims of 483,000. The preliminary insured unemployment rate in the week ending January 30 unchanged from the prior week''s unrevised rate of 3.5%.

Commodities increased on the prospects of stronger Asian economies after China reported a record lending in January and home prices increased 9.5%. China inflation in January of 1.5% was lower than expected.

Crude oil prices increased 33 cents to $74.85 a barrel, gold increased $7.40 to $1,083 an ounce.

Yields on 10-year Treasuries increased to 3.69% and 30-year Treasuries advanced to 4.63%.

Stock Movers

Allstate Corp ((ALL)) gained after it reported its third quarterly profit in a row after investment returns in the portfolio gained.

AutoNation Inc ((AN)) traded higher after adjusted net profit increased to 29 cents a share.

JA Solar Holdings Co. ((JASO)) increased more than 6% and fourth quarter earnings adjusted for one-time items increased to 17 cents per share.

Prudential Financial Inc ((PRU)) declined after fourth quarter net profit adjusted for certain items was $1.07 a share.

Viacom Inc ((VIA)) increased after it reported adjusted profit of $1.09 a share and said that profit surged on the video sale of titles “Start Trek.”

Earnings Review

Copa Holdings, SA, the provider of airline passenger and cargo service said fourth quarter revenues fell 0.9% to $343.0 million from $346.1 million a year ago. Net income in the quarter rose 173% to $70.4 million or $1.61 per diluted share compared to net profit of $25.8 million or 59 cents per share a year ago.

LoopNet, Inc, an online marketplace for commercial real estate said fourth quarter revenues fell 13.3% to $18.3 million from $21.1 million a year ago. Net income in the quarter fell 22% to $3.2 million or 7 cents per diluted share compared to net profit of $4.1 million or 12 cents per share a year ago.

Prudential Financial, Inc, the financial services company said fourth quarter revenues rose 15% to $6.8 billion from $5.9 billion a year ago. Net income in the quarter was $1.78 billion or $3.79 per diluted share compared to net loss of $1.66 billion or $3.89 per share a year ago.

The Allstate Corporation, the property and casualty insurer said fourth quarter revenues rose 23% to $8.06 billion from $6.57 billion a year ago. Net income in the quarter was $518 million or 96 cents per diluted share compared to net loss of $1.13 billion or $2.10 per share a year ago.

Vale S.A., the mining company said fourth quarter revenues fell 13% to $6.33 billion from $7.26 billion a year ago. Net income in the quarter rose 10.9% to $1.52 billion or 28 cents per diluted share compared to net profit of $1.37 billion or 26 cents per share a year ago.