New York Stocks Rally on Greece, India

123jump.com Staff
02 Mar, 2010
New York City

U.S. stocks retained a positive bias on improved sentiment. Greece and EU inch closer to terms of the bailout. Terra industries surged 12% after it received a higher bid from CF Industries that valued the company at $4.73 billion or $47.40 a share.

[R]11:30 AM New York – U.S. stocks retained a positive bias on improved sentiment. Greece and EU inch closer to terms of the bailout. Terra industries surged 12% after it received a higher bid from CF Industries Holdings that valued the company at $47.40 a share.[/R]

U.S. stocks retained positive bias in the morning trading after Qualcomm Inc announced $3 billion of stock buyback, India reported stronger than expected manufacturing and deeper cuts are expected by Greece to trim budget deficit further.

Greek government is expected to announce additional and deeper cuts to tame its estimated budget deficit from 8.7% to 6.7% in the current year.

Bowing to pressures from the European Union regulators and demands of the German and French investors, Greece is looking to increase taxes on tobacco, alcohol and general sales and cut benefits to government employees.

The additional budget cuts are scheduled to be announced as early as tomorrow ahead of the meeting between Prime Minister George Papandreou and German Chancellor Angela Markel in two days.

The euro traded higher at $1.3548 to and one dollar traded at 89.08 yen.

Futures of immediate month crude oil increased 94 cents to $79.64 and natural gas added 2 cents to $4.68 per mBtu. Gold futures increased $9.30 to $1,127.60.

Yields on 10-year U.S. Treasuries traded at 3.64% and 30-year bonds at 4.60%.

Stocks on the Move

Bridgepoint Education Inc surged 9% after the private education provider 2010 adjusted earnings of $1.86 per share.

Domino’s Pizza Inc increased 3% after it reported fourth quarter adjusted profit of 30 cents a share.

Dress Barn Inc soared 4% after it reported second quarter adjusted earnings of 37 cents.

Staples Inc declined 7.3% after the office supplies retailer forecasted lower than expected earnings and fourth quarter earnings decreased 18%.

Terra Industries surged 12% after the company today confirmed that it received a proposal from CF Industries Holdings, Inc. to acquire all of the outstanding common stock of Terra for $37.15 in cash and 0.0953 of a share of CF Industries common stock for each company share.

Earnings Review

CMS Energy Corporation ((CMS)), an energy company said fourth quarter revenues fell 12.5% to $1.61 billion from $1.84 billion a year ago. Net income in the quarter fell 90% to $6 million or 2 cents per diluted share compared to net income of $60 million or 26 cents per share a year ago.

Domino’s Pizza, Inc ((DPZ)), a pizza delivery company reported fourth quarter revenues rose 8% to $462.9 million from $428.2 million a year ago. Net income in the quarter rose 114.5% to $23.6 million or 41 cents per diluted share compared to net income of $11.0 million or 19 cents per share a year ago.

Comparable same-stores sales increased 3.9%.

Fresh Del Monte Produce Inc ((FDP)), the fruit and vegetable producer reported fourth quarter sales rose 5% to $872.1 million from $831.0 million a year ago. Net income in the quarter rose 23% to $28.2 million or 44 cents per diluted share compared to net income of $22.9 million or 36 cents per share a year ago.

Luxottica Group S.p.A ((LUX)), the manufacturer and distributor of fashion, luxury and sports eyewear said fourth quarter sales fell 6.4% to €1.16 billion from €1.24 billion a year ago. Net income in the quarter fell 8.2% to €35.6 million or €0.8 per ADS compared to net income of €38.8 million or €0.8 per ADS a year ago.

McDermott International, Inc ((MDR)), an energy infrastructure company said fourth quarter revenues fell 12% to $1.46 billion from $1.66 billion a year ago. Net income in the quarter rose 129.5% to $98.7 million or 42 cents per diluted share compared to net income of $43.0 million or 19 cents per share a year ago.

The Warnaco Group, Inc ((WRC)), the distributor of intimate apparel, sportswear and swimwear said fourth quarter revenues rose 13.5% to $505.4 million from $445.3 million a year ago. Net income in the quarter was $11 million or 23 cents per diluted share compared to net loss of $16.3 million or 35 cents per share a year ago.