U.S. Retail Sales Rise; Consumer Sentiment Lower

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

U.S. stocks turned lower after the release of consumer sentiment index. A rise in February retail sales drove the indexes higher. KKR & Co. plans to raise $2.2 billion as it prepares list the company in New York. Terra Industries and CF Industries edge closer to a merger pact.

[R]10:10 AM New York – U.S. stocks turned lower after the release of consumer sentiment index. A rise in February retail sales drove the indexes higher. KKR & Co. plans to raise $2.2 billion as it prepares list the company in New York. Terra Industries and CF Industries edge closer to a merger pact.[/R]

Stocks traded higher after retail sales gained in February. Investors showed a willingness to add stock to portfolio as the uneven economic recovery regains sounder footing.

February retail sales adjusted for seasonality and calendar increased 0.3% to $355.5 billion from January and up 3.9% from a year ago. January retail sales revised lower to 0.1% from the previous estimate of 0.5%.

Consumer sentiment index preliminary estimate declined to 72.5 from the final estimate of 73.6 in February. The sentiment has been weak as unemployment hovers near 10% and nearly 40% of unemployed are looking for a job longer than six months.

KKR & Co., the private equity firm in a regulatory filing with the Securities & Exchange Commission to raise $2.2 billion. The company will exchange a share for every share held by KKR Guernsey shareholders and trades in Amsterdam, Holland.

The company has been looking to list in the U.S. during the last two years but its plans were derailed after credit markets froze. The 34-year merger advisory firm is valued at $8 billion based on $11.40 price in Amsterdam trading.

Stock Movers

Agrium Inc gained 6.7%, Terra Industries decreased 1.3% and CF Industries Holdings dropped 4% after Yara International of Norway said it will no longer increase its $4.1 billion bid. CF Industries has offered $4.7 billion for Terra.

Discover Financial Services decreased 2% after the company increased the estimate of pre-tax loss to $350 million and estimated a first quarter loss per share of 22 cents to 23 cents a share.

Earnings Review

AnnTaylor Stores Corporation ((ANN)), the women''s clothing retailer reported fourth quarter sales fell 3% to $469.1 million from $483.4 million a year ago. Net income in the quarter was $41,000 or break even per diluted share compared to net loss of $375.6 million or $6.66 per share a year ago.

Clear Channel Outdoor Holdings, Inc ((CCO)), an outdoor advertising company said fourth quarter revenues fell 3% to $763.1 million from $785.5 million a year ago. Net loss in the quarter was $56.8 million or 18 cents per diluted share compared to net loss of $3.0 billion or $8.53 per share a year ago.

Pacific Sunwear of California, Inc ((PSUN)), a clothing chain said fourth quarter sales fell 17% to $292.6 million from $351.7 million a year ago. Net loss in the quarter was $36.5 million or 56 cents per diluted share compared to net loss of $27.0 million or 42 cents per share a year ago.