S&P 500 Index Drops 1%; Weak Durable Orders

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

U.S. stocks trade lower after durable goods orders declined in January excluding transportations orders. Weekly jobless claims increased 22,000 and insured unemployment rate was unchanged at 3.5%.

[R]9:40 AM New York – U.S. stocks trade lower after durable goods orders declined in January excluding transportations orders. Weekly jobless claims increased 22,000 and insured unemployment rate was unchanged at 3.5%.[/R]

Seasonally adjusted weekly jobless claims increased 22,000 to 496,000 from the revised previous week claims of 474,000.

The preliminary insured unemployment rate in the week ending February 13 unchanged from the prior week''s unrevised rate of 3.5%.

January durable goods orders increased 3% or $5.2 billion to $175.7 billion, second consecutive monthly increase including 1.9% in December. Excluding defense orders, new orders rose 1.6% and excluding transportations orders decreased 0.6%.

Coca-Cola Acquires its North American Bottling Operations

Coca-Cola Company agreed to acquire bottling operations of Coca-Cola Enterprises Inc in exchange for $10 a share and one share in the new bottling company.

The statement released by Coca-Cola said that the company will also assume $8.8 billion in debt and all assets and liabilities of its North American operations.

Coca-Cola Enterprises surged 27% to $24.18 in the early trading and Coca-Cola edged up a fraction.

Coca-Cola and Pepsi have been bringing back their bottling operations in their control as U.S. consumers reduce their soda consumption and prefer water and fruit juice and other beverages.

Both beverage companies have been diversifying their portfolio of beverages and are facing rising costs of packing and distributing.

Earnings Review

Express Scripts, Inc, the pharmacy benefit manager said fourth quarter revenues rose 49% to $8.2 billion from $5.5 billion a year ago. Net income in the quarter rose 8% to $223.3 million or 80 cents per diluted share compared to net income of $206.8 million or 83 cents per share a year ago.

Revenues for the fiscal year 2009 rose 12.3% to $24.7 billion from $22.0 billion a year ago. Net income for the year rose 6.6% to $827.6 million or $3.11 per diluted share compared to net income of $776.1 million or $3.08 per share a year ago.

Limited Brands, Inc, the specialty retailer of women’s apparel said fourth quarter sales rose 2.3% to $3.06 billion from $2.99 billion a year ago. Net income in the quarter was $356.1 million or $1.08 per diluted share compared to net income of $16.1 million or 5 cents per share a year ago.

Comparable same-store sales increased 1%.

Whiting Petroleum Corporation, the oil and gas company said fourth quarter revenues rose 41% to $316.0 million from $223.9 million a year ago. Net loss in the quarter was $11.2 million or 24 cents per diluted share compared to net loss of $3.0 million or 7 cents per share a year ago.