U.S. Jobless Claims Rise; Wal-Mart Net Up 22%

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

U.S. stocks declined after weekly jobless claims increased 31,000. Wal-Mart comparable sales declined more than estimated and fourth quarter sales increased 4.5%. Hewlett Packard quarterly net increased 24.7% on sales increase of 8.3%. UK reported its first January deficit in seventeen years.

[R]9:35 AM New York – U.S. stocks declined after weekly jobless claims increased 31,000. Wal-Mart comparable sales declined more than estimated and fourth quarter sales increased 4.5%. Hewlett Packard quarterly net increased 24.7% on sales increase of 8.3%. UK reported its first January deficit in seventeen years.[/R]

U.S. stocks, commodities and the dollar declined after jobless claims increased in the previous week. The yields on Treasuries increased after the Fed debated ways to shrink its ballooned balance sheet of $2.2 trillion.

Federal Reserve policy makers debated various plans to shrink its balance sheet of $2.2 trillion. The members of the committee debated reducing reserve balances, shifting the composition of securities to Treasuries and selling the assets earlier than the maturities.

Initial jobless claims increased 31,000 to 473,000 in the previous week, surprising most economists.

Commodities traded lower. Immediate month delivery futures of gold, crude oil and copper fell.

Gold fell $4.60 to $1,115.50 an ounce and crude oil edged lower 2 cents to $77.30 and copper declined 32 cents to 324.85 pence.

One euro fetched $1.3603 and one dollar traded 90.64.

UK January Deficit Worrisome

UK government reported its first January deficit after tax revenues declined and stimulus spending surged. The Office for National Statics said deficit in January was 4.3 billion pounds.

According the office, government tax collection declined 7.7% and spending increased 9.7% based on accrual accounting.

Total deficit in the first ten months to January in the current fiscal year increased to 122.4 billion pounds, more than twice in the same period a year ago.

Economists were surprised with the extent of the monthly deficit when most were expecting a surplus of at least 2 billion pounds.

Earnings Review

Advance Auto Parts, Inc, the retailer of automotive aftermarket parts said fourth quarter sales fell 4% to $1.14 billion from $1.19 billion a year ago. Net income in the quarter rose 41% to $34.4 million or 36 cents per diluted share compared to net income of $24.4 million or 26 cents per share a year ago.

Net sales for the fiscal year 2009 rose 5% to $5.41 billion from $5.14 billion a year ago. Net income for the year rose 13.6% to $270.4 million or $2.83 per diluted share compared to net income of $238.0 million or $2.49 per share a year ago.

Hewlett-Packard Company, the provider of products, technologies, software, solutions and services said first quarter revenues rose 8.3% to $31.2 billion from $28.8 billion a year ago. Net income in the quarter rose 24.7% to $2.32 billion or 96 cents per diluted share compared to net income of $1.86 billion or 75 cents per share a year ago.

Wal-Mart Stores fourth quarter sales increased 4.5% to $113.65 billion and net income increased 22% to $4.63 billion or $1.17 per share from $3.79 billion or 96 cents a share.

Comparable same store sales declined 1.6%, more than estimated by the company not to exceed 1%.

Wal-Mart estimated first quarter profit per share to be between 81 cents and 85 cents and comparable same store sales to be unchanged to 1% increase or decline.