U.S. Indexes Decline; Home Depot Gains

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

U.S. stocks and commodities declined in the early trading as investors focus on Greece sovereign debt issues. The euro declined. Home Depot reported better than expected earnings but Nordstrom earnings missed expectations.

[R]9:00 AM New York – U.S. stocks and commodities declined in the early trading as investors focus on Greece sovereign debt issues. The euro declined. Home Depot reported better than expected earnings but Nordstrom earnings missed expectations.[/R]

U.S. stocks and benchmark indexes traded lower in the pre-market trading after commodities weakened and German business confidence index declined.

The ongoing worries related to Greece sovereign debt and a wider contagion involving Spain and Portugal has kept currency traders on the edge.

Financial markets are expected to drive sovereign bond yields higher and Greece and Portugal may face “lot of troubles” according to comments by Kenneth Rogoff, former chief economists at the International Monetary Fund.

Rogoff commented at a forum in Tokyo today and further added that rich nations like Germany and U.S. will tighten belts only when interest rates are on the rise as quoted on Bloomberg.

Federal judge Rakoff reluctantly approved revised settlement of $150 million between Bank of America and the Securities and Exchange Commission. Rakoff had threatened a trial date of March 1 and said that the earlier settlement amount of $33 million was “vacuous proposal.”

Legal experts believe that Bank of America got off very lightly after it failed to make adequate and proper disclosures regarding its purchase of Merrill Lynch.

Stock Movers

Brocade Communications Systems Inc ((BRCD)) traded lower in the pre-market trading after the company estimated lower than estimated 2010 adjusted earnings of 58 cents a share.

Home Depot traded higher after it reported better than expected earnings.

MercadoLibre Inc ((MELI)) traded lower in the pre-market trading after it reported fourth quarter revenues of $49 million, sharply lower than $55 million estimated by analysts surveyed by 123jump.com.

Nordstrom In ((JWN)) is expected to open lower after the luxury retailer reported fourth quarter net income of $172 million or 77 cents a share lower than estimated by analysts.

Earnings Review

Home Depot Inc ((HD)) fourth quarter earnings totaled $342 million or 20 cent a share compared to a loss of $54 million or 3 cents a share. Comparable same store sales increased 1.2% in the quarter. The retailer increased its quarterly dividend by 5% to 23.625 cents.

Nordstrom, Inc, the department store chain said fourth quarter sales rose 10.4% to $2.54 billion from $2.30 billion a year ago. Net income in the quarter rose 153% to $172 million or 77 cents per diluted share compared to net income of $68 million or 31 cents per share a year ago.

Comparable same-store sales increased 6.9%.

Net sales for the fiscal year 2009 fell 0.1% to $8.26 billion from $8.27 billion a year ago. Net income for the year rose 10% to $441 million or $2.01 per diluted share compared to net income of $401 million or $1.83 per share a year ago.

RadioShack Corporation, the retailer of innovative mobile and technology products said fourth quarter sales rose 4.7% to $1.32 billion from $1.26 billion a year ago. Net income in the quarter rose 26% to $75.7 million or 60 cents per diluted share compared to net income of $60.1 million or 48 cents per share a year ago.