Devon, BP in $7 B Deal; Trade Deficit Falls

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

U.S. stocks traded sideways and January trade deficit declined on the smallest import of crude oil since 1999. Weekly jobless claims fell by 6,000. Devon Energy agreed to sell its international assets of gas and oil fields to BP Plc for $7 billion.

[R]10:15 AM New York – U.S. stocks traded sideways and January trade deficit declined on the smallest import of crude oil since 1999. Devon Energy agreed to sell its international assets of gas and oil fields to BP Plc for $7 billion.[/R]

Stocks traded sideways in the early trading and January trade deficit unexpectedly declined and weekly jobless claims fell in the previous week. Devon Energy agreed to sell its portfolio of international assets to BP Plc for $7 billion.

Trade deficit in January decreased to $37.3 billion from $39.9 billion in December. January exports fell to $0.5 billion and imports edge lower to $3.1 billion. The goods deficit decreased to $49.4 billion and service surplus increased to $12.1 billion.

Exports declined by $500 million to $142.7 billion on a decline in sale of autos and aircraft shipments. Imports decreased 1.7% to $180 billion after crude oil import fell to 245 million barrels in the month.

Seasonally adjusted weekly jobless claims decreased 6,000 to 462,000 from the revised previous week claims of 468,000. The preliminary insured unemployment rate in the week ending February 27 unchanged from the prior week''s unrevised rate of 3.5%.

Stock Movers

American International Group Inc increased more than 3% after the Federal Reserve of New York agreed with the troubled insurer to share in losses related to Japan real estate investment as a part of sale of its life insurance division to MetLife.

CA Inc gained a fraction after the software company agreed to acquire privately held Nimsoft Inc active in cloud computing for $350 million.

Devon energy Corp increased 2% after the energy explorer agreed to sell its portfolio of assets in the Gulf of Mexico, Brazil and Azerbaijan to BP Plc for $7 billion.

Men’s Wearhouse Inc dropped 6% after the retailer reported lower than expected earnings.

Earnings Review

The Buckle, Inc ((BKE)), the apparel retailer reported fourth quarter sales rose 9% to $274.4 million from $251.4 million a year ago. Net income in the quarter rose 22.7% to $42.1 million or 90 cents per diluted share compared to net income of $34.3 million or 74 cents per share a year ago.

Comparable same-store sales increased 3.8%.

Hot Topic, Inc ((HOTT)), a teen clothing retailer reported fourth quarter sales fell 10% to $214.2 million from $238.0 million a year ago. Net income in the quarter fell 43.6% to $8.0 million or 18 cents per diluted share compared to net income of $14.2 million or 32 cents per share a year ago.

IMAX Corporation ((IMAX)), a giant-screen movie theater operator reported fourth quarter revenues rose 98% to $54.2 million from $27.4 million a year ago. Net income in the quarter was $4.0 million or 6 cents per diluted share compared to net loss of $9.0 million or 21 cents per share a year ago.

Smithfield Foods, Inc ((SFD)), the meat processor reported third quarter sales fell 14% to $2.88 billion from $3.35 billion a year ago. Net income in the quarter was $37.3 million or 22 cents per diluted share compared to net loss of $105.7 million or 74 cents per share a year ago.