U.S. Productivity Surges; Oil Above $80

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

U.S. businesses reported 6.9% improvement in productivity in the fourth quarter of 2009 and 5.9% in the year. The surge in productivity was driven by 4.7% decline labor cost in the year as employers cut jobs. Weekly jobless claims declined and the dollar edged higher against the euro.

[R]4:00 PM New York, 9:00 PM London, 8:00 AM Sydney – U.S. businesses reported 6.9% improvement in productivity in the fourth quarter of 2009 and 5.9% in the year. The surge in productivity was driven by 4.7% decline labor cost in the year as employers cut jobs. Weekly jobless claims declined and the dollar edged higher against the euro.[/R]

U.S. weekly jobless claims declined 29,000 at the end of last week. Federal Reserve in its Beige report noted improving economic conditions but commercial construction and demands for loans remain soft. Greece launched 5 billion euros bond offering as workers demonstrate.

New orders for manufactured goods in January, up seven of the last nine months, increased $6.2 billion or 1.7% to $378.4 billion. This followed a 1.5% December increase. Excluding transportation, new orders increased 0.1%.

Nonfarm business sector labor productivity increased at a 6.9% annual rate during the fourth quarter of 2009, compared to fourth quarter of 2008 and 2009 productivity rose 5.8%. Labor costs drops 5.9% and unit labor cost fell to 4.7% in the last four quarters.

Foot Locker swings to profit. PetSmart profit dips 4% and forecast better than expected outlook. Take-Two cuts losses and revenue jumps. Limited Brands February same-store sales rise 10%. Urban Outfitters profit climbs 92%. Ciena plunges after quarterly loss widens.

The European Central Bank left its key rate unchanged at 1% and the Bank of England left its reference rate at 0.5%. Central banks are in a holding pattern as companies cut investments and unemployment hovers near record high.

Greek workers union occupy finance ministry in central Athens as demonstrators press government to ease budget cuts and lower taxes.

The Friday meeting between Greek prime minister and German Chancellor is not likely to finalize aid package. Chancellor Merkel in a local television denied that meeting is about bailout package responding to the voter resistance to any assistance to Greece.

Food prices and wholesale prices remained at elevated levels according to the latest data from the government. Truck transportation association said members plan to increase freight rate by 15% after fuel taxes were lifted. Shipping companies closed higher after container freight rates surge 40%.

North American Markets

Dow Jones Industrial Average increased 47.38 or 0.5% to close at 10,444.14, S&P 500 Index edged higher 4.18 or 0.4% to 1,122.97 and Nasdaq Composite Index added 11.63 or 0.5% to close at 2,292.31. Toronto TSX Composite Index decreased 27.88 or 0.24% to 11,824.97.

Latin American Markets Indexes

Mexico Bolsa Index decreased 151.54 or 0.5% to 32,202.00 and Brazil Bovespa Stock Index increased 173.37 or 0.2% to 67,814.71.

Europe Markets Review

In London FTSE 100 Index closed lower 6.05 or 0.11% to 5,527.16, in Paris CAC 40 Index decreased 14.11 or 0.37% to close at 3,828.41, in Frankfurt DAX index lower 22.56 or 0.39% to close at 5,795.32. In Zurich trading SMI decreased 8.29 or 0.12% to close at 6,804.87.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 107.42 or 1.05% to 10,145.72, and Hang Seng index in Hong Kong decreased 301.01 or 1.44% to 20,575.78, and CSI 300 index in China lower 84.51 or 2.53% to 3,250.57. ASX 200 index in Australia increased 14.80 or 0.31% to 4,750.50. The FTSE Bursa KL Composite index in Malaysia was lower 2.01 or 0.16% to 1,284.09.

The Kospi Index in South Korea decreased 4.24 or 0.26% to close at 1,618.20. SET index in Thailand closed lower 4.22 or 0.57% to 730.82. JSE Index in Indonesia decreased 1.44 or 0.06% to 2,565.64. The Sensex index in India decreased 28.31 or 0.17% to 16,971.70.

Commodities, Metals, and Currencies

Crude oil decreased $0.40 to $80.47 a barrel for a front month contract, natural gas edged down17 cents to $4.59 per mBtu and gasoline decreased 0.83 cents to 223.93 cents.

Soybean future closed down 21.50 cents to $9.42 a bushel. Wheat futures decreased 13.50 cents in Chicago trading to $5.02 a bushel. Sugar closed down 0.38 cents at 21.67 cents per pound.

Gold decreased $11.20 in New York trading to close at $1,132.10 per ounce, silver closed down $0.19 to $17.14 per ounce and copper for the front month delivery decreased 5.90 cent to $3.37 per pound.

Dollar edged higher against euro to $1.358 and gained against the Japanese yen to 89.02.

Yield on 10-year U.S. bonds closed down to 3.60% and with 30-year maturities closed lower at 4.56%.