U.S. Stocks Seek Direction on Anniversary Day

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

U.S. stocks and commodities traded lower. The S&P 500 index has recovered 67% from the 12-year low it reached a year ago. Copper and gold are trading lower. Kroger Co. fourth quarter sales increased 7.5% and net surged 27%.

[R]9:40 AM New York – U.S. stocks and commodities traded lower. The S&P 500 index has recovered 67% from the 12-year low it reached a year ago. Copper and gold are trading lower. Kroger Co. fourth quarter sales increased 7.5% and net surged 27%.[/R]

U.S. stocks traded lower ahead of one year anniversary when indexes had traded at multi-year lows. The three broader indexes have rebounded at least 55%. The S&P 500 index has soared 67% from a 12-year low reached a year ago.

Mixed earnings dominated the trading sentiment in New York and Europe. Kroger reported earnings in line with expectations but the defense contractor EADS and Antofagasta reported lower than expected earnings in Europe.

Kroger Co. fourth quarter sales increased 7.5% to $18.6 billion and net income surged 27% to $255.4 million from a year ago quarter.

European Aeronautic, Defence & Space Co., also known as EADS reported 2009 sales fell 1% to €42.8 billion and net loss for the year of €763 million or €0.94 per diluted share compared to net profit of €1.57 billion or €1.95 per share a year ago.

The wider than expected loss dragged the market indexes in the European trading.

Antofagasta plc, the Chilean copper producer traded on the London Stock Exchange said 2009 sales fell 12% to $2.96 billion and net profit for the year fell 61% to $667.7 million or 67.7 cents per diluted share compared to net profit of $1.71 billion or 173.1 cents per share a year ago.

Currencies, Commodities and Bonds

Futures of crude oil declined $1.13 to $80.74 and natural gas increased 6 cents to $4.58 per mBtu.

Gold futures declined $10.30 to $1,113.70 and copper futures declined 2.90 cents to 338.15 cents a pound.

Stock Movers

Casey’s General Stores, Inc ((CASY)) declined in the early trading after it reported quarterly net of 34 cents a share compared to 24 cents a share.

Cisco Systems, Inc ((CSCO)) increased 0.8% ahead of new products announcement today.

Comerica Inc ((CMA)) declined 2.2% after the bank said it plans to raise $800 million in public offering and repurchase 2.25 million shares issued to U.S. Treasury during the financial crisis.

Humana Inc ((HUM)) was unchanged and the health insurer reiterated its annual earnings outlook between $5.15 a share and $5.35 a share.

Thor Industries Inc ((THO)) dropped 6.3% after it reported adjusted second quarter profit of 22 cents.

UAL Corp ((UAUA)) increased 4.8% to $18.34 after it indicated revenues per passenger miles flown in February increased at least 17% and weather related lost revenues were approximately $40 million.

Earnings Review

Casey’s General Stores, Inc ((CASY)), the convenience store chain operator said third quarter revenues rose 30.7% to $1.11 billion from $849.3 million a year ago. Net income in the quarter rose 23% to $17.2 million or 34 cents per diluted share compared to net income of $14.0 million or 28 cents per share a year ago.

H&R Block, Inc ((HRB)), the tax preparer said third quarter revenues fell 6% to $934.9 million from $993.4 million a year ago. Net income in the quarter rose 7% to $50.6 million or 15 cents per diluted share compared to net income of $47.4 million or 14 cents per share a year ago.

Systemax Inc ((SYX)), a marketer of brand name and private-label products said fourth quarter sales rose 15% to $938.2 million from $812.7 million a year ago. Net income in the quarter rose 84% to $18.4 million or 49 cents per diluted share compared to net income of $10.0 million or 27 cents per share a year ago.

TiVo Inc ((TIVO)), the digital video recorder maker said fourth quarter revenues rose 15.7% to $68.5 million from $59.2 million a year ago. Net loss in the quarter was $10.2 million or 9 cents per diluted share compared to net loss of $3.6 million or 4 cents per share a year ago.