Stocks, Metals Fall; Retail Sales Up 0.5%

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

U.S. stock indexes dropped nearly 1%. January retail sales gained 0.5%. Commodities and resource linked stocks led the decliners after China increased bank reserve ratios unexpectedly. Euro declined. Chipotle Mexican Grill, Panera Bread and Cheesecake Factory advance.

[R]10:15 AM New York – U.S. stock indexes dropped nearly 1%. January retail sales increased 0.5%. Commodities and resource linked stocks led the decliners after China increased bank reserve ratios unexpectedly. Euro declined. Chipotle Mexican Grill, Panera Bread and Cheesecake Factory advance.[/R]

U.S. and European market indexes declined after China raised bank reserve requirements ahead of the holiday period. The euro fell more than 1% on the lack of Greek bailout details.

S&P 500 index declined 1.1% and the Nasdaq fell 0.8%. Markets in Canada, Brazil and Mexico decreased between 0.6% and 1.1%.

U.S. retail sales adjusted for seasonality and calendar increased in January 0.5% to $355.8 billion from December and up 4.7% from a year ago. December retail sales revised lower to 0.1% from the previous estimate of 0.3%.

Retail sales increased for the third month in a row and sales excluding autos increased 0.6%.

Commodities traded lower after China increased bank reserve ratios to curb bank lending and overheating in the real estate markets.

Crude oil futures decreased $1.94 to $73.34 a barrel, gold declined $13.10 to $1,081 an ounce and copper declined 3% or 9.45 cents to 305.70 cents a pound.

Yields on 10-year Treasuries traded at 3.68% and 30-year bonds at 4.65%.

Stock Movers

ArcelorMittal ((MT)) declined nearly 4% after iron ore miners are asking another price increase this year following four years of successive price hikes averaging 35% a year. The latest price negotiations tone was reported by Financial Times in London.

Mining companies declined after China tightened its monetary policy. Rio Tinto Plc dropped 4% and Vale SA decreased 2%.

Blue Nile Inc ((NILE)) dropped 8% after the online diamond seller estimated first quarter earnings of 16 cents a share.

Buffalo Wild Wings Inc ((BWLD)) dropped 12% after it reported adjusted earnings of 48 cents a share.

McAfeee Inc ((MFE)) increased 2.2% after it fourth quarter earnings increased 20% to 34 cents a share.

Panera Bread Co. ((PNRA)) decreased 1.3% after it reported net income increased 16.4% in the fourth quarter to 95 cents a share.

Earnings Review

Buffalo Wild Wings, Inc., the restaurant operator said fourth quarter revenues rose 19.6% to $145.0 million from $121.2 million a year ago. Net income in the quarter rose 8% to $8.3 million or 46 cents per diluted share compared to net income of $7.7 million or 43 cents per share a year ago.

Chipotle Mexican Grill, Inc., the restaurant said fourth quarter sales rose 12.2% to $387.5 million from $345.3 million a year ago. Net income in the quarter rose 86% to $31.6 million or 99 cents per diluted share compared to net income of $17.0 million or 52 cents per share a year ago.

Chipotle Mexican Grill, Inc. ((CMG)) in the last one year traded as high as $102.90 in February 2010 and as low as $47.89 in March 2009. Based on the yesterday’s closing price of $101.12 the company has market cap of $3.20 billion.

McAfee, Inc, the security software maker said fourth quarter revenues rose 24% to $525.7 million from $424.0 million a year ago. Net income in the quarter rose 20% to $54.5 million or 34 cents per diluted share compared to net income of $45.4 million or 29 cents per share a year ago.

Panera Bread Company, the operator of retail bakery-cafes said fourth quarter revenues rose 2.6% to $367.0 million from $357.8 million a year ago. Net income in the quarter rose 16.4% to $29.7 million or 95 cents per diluted share compared to net income of $25.5 million or 84 cents per share a year ago.

The Cheesecake Factory Incorporated, the restaurant chain said fourth quarter revenues rose 0.05% to $400.6 million from $400.4 million a year ago. Net loss in the quarter was $13,000 or break even per diluted share compared to net income of $7.1 million or 12 cents per share a year ago.

Comparable same-stores sales decreased 0.9%.