U.S. Stocks Advance on Payrolls Data

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

U.S. stocks traded higher after February unemployment was unchanged at 9.7% and payrolls declined 36,000 less than expected in the month. Greek lawmakers passed the budget cuts sought by the government. Crude oil advanced.

[R]10:30 AM New York – U.S. stocks traded higher after February unemployment was unchanged at 9.7% and payrolls declined 36,000 less than expected in the month. Greek lawmakers passed the budget cuts sought by the government. Crude oil advanced.[/R]

U.S. stocks traded higher payrolls declined less than expected and Greek lawmakers passed most of the budget cuts that the government proposed.

February non-farm payroll employment fell 36,000 and the unemployment rate was unchanged at 9.7%. The largest job losses were in construction, manufacturing and wholesale trade sectors.

The unemployment people declined 36,000 to 14.9 million and the number of long-term unemployed, those looking for work more than six months was 6.1 million in February and has been about that level since December.

About 4 in 10 unemployed persons have been unemployed for 27 weeks or more.

Stock Movers

ArcSight Inc ((ARTS)) declined more than 8% after it reported lower than expected third quarter earnings.

Capital One Financial Corp ((COF)) dropped 1.5% after Goldman Sachs lowered its rating on the credit card issuer to “neutral” from “buy.”

Ciena Corp ((CIEN)) gained 6% after Cowen & Company lifted its rating to “outperform” from “neutral.”

Coldwater Creek Inc ((CWTR)) rose nearly 9% after Barclays lifted its view on the company.

Commodities, Currencies and Bonds

Crude oil futures increased $1.34 to $81.55 a barrel and natural gas increased to $4.58 per mBtu. Futures of gold increased to $2.40 to $1,135 an ounce.

The dollar edged up to $1.3570 and edged higher against the yen gained to 90.37.

Yields on 10-year U.S. bonds traded at 3.68% and 30-year bonds hovered at 4.62%.

U.S. Earnings Review

Blount International, Inc ((BLT)), an international industrial company reported fourth quarter sales rose 5.8% to $141.5 million from $133.8 million a year ago. Net income in the quarter fell 6% to $6.5 million or 13 cents per diluted share compared to net income of $6.9 million or 14 cents per share a year ago.

Marvell Technology Group Ltd ((MRVL)), the chipmaker said fourth quarter revenues rose 64% to $842.5 million from $512.9 million a year ago. Net income in the quarter was $204.8 million or 31 cents per diluted share compared to net loss of $65.0 million or 11 cents per share a year ago.

Veolia Environnement ((VE)), the provider of environmental management services said fiscal 2009 revenues fell 3.4% to €34.6 billion from €35.8 billion a year ago. Net income for the year rose 44% to €584.1 million or €1.24 per diluted share compared to net income of €405.1 million or €0.88 per share a year ago.

European Economic Review

UK producer prices index or wholesale annual inflation for all manufactured products rose 4.1% in February. Input price annual inflation rose by 6.9%. This mainly reflects price increase in chemicals, and other imported materials equipment.

Fourth quarter gross domestic product in the euro area and wider zone of 27 nations increased 0.1% compared to previous quarter. Seasonally adjusted GDP compared to the quarter a year ago decreased 2.1% in the euro area and 2.3% in the EU27 in the fourth quarter of 2009.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 223.24 or 2.20% to 10,368.96, and Hang Seng index in Hong Kong increased 212.19 or 1.03% to 20,787.97, and CSI 300 index in China higher 9.19 or 0.28% to 3,259.76. ASX 200 index in Australia increased 16.70 or 0.35% to 4,767.20. The FTSE Bursa KL Composite index in Malaysia was higher 15.69 or 1.22% to 1,299.78.

The Kospi Index in South Korea increased 16.37 or 1.01% to close at 1,634.57. SET index in Thailand closed lower 6.86 or 0.94% to 723.96. JSE Index in Indonesia increased 13.13 or 0.51% to 2,578.77. The Sensex index in India increased 22.79 or 0.13% to 16,994.49.