Jobless Claims Drop, CPI Unchanged; Stocks Up

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

U.S. stocks traded higher after jobless claims declined and consumer price index was unchanged. Commodities edged higher as the dollar edged up against the euro and the yen. Nike and FedEx quarter net more than doubled.

[R]9:35 AM New York – U.S. stocks traded higher after jobless claims declined and consumer price index was unchanged. Commodities edged higher as the dollar edged up against the euro and the yen. Nike and FedEx quarter net more than doubled.[/R]

U.S. stocks in the early trading advanced after jobless claims declined and consumer price index was unchanged. FedEx quarterly net more than doubled to 76 cents a share.

Seasonally adjusted weekly jobless claims decreased 5,000 to 457,000 from the revised previous week claims of 462,000. The preliminary insured unemployment rate in the week ending March 6 unchanged from the prior week''s unrevised rate of 3.5%.

The index of consumer prices unchanged from January and increased 2.1% from a year ago month. The energy index decreased 0.5% first falls since April 2009.

Teva pharmaceutical Industries Ltd agreed to acquire for €3.63 billion Ratiopharm GmbH, the second largest German generic drug maker. The combined companies will have pro forma 2009 earnings of $16.2 billion and Teva expects the transaction to add earnings after three quarters of acquisition.

Commodities, Currencies and Yields

Crude oil futures declined 45 cents to $82.48 a barrel and natural gas futures decreased 4 cents to $4.26 per mBtu.

Gold futures increased 30 cents to $1,124.50 and copper futures

The dollar in the early trading edged up a fraction against the euro at $1.3669 and against the yen at 90.277.

Yields on 10-year bonds traded at 3.64% and 30-year U.S. bonds traded at 4.56%.

Earnings Review

FedEx Corp ((FDX)) the package delivery company reported third quarter revenues rose 7% to $8.70 billion from $8.14 billion a year ago. Net income in the quarter rose 146.4% to $239 million or 76 cents per diluted share compared to net income of $97 million or 31 cents per share a year ago.

Guess?, Inc ((GES)), the apparel brand said fourth quarter revenues rose 14.4% to $642.0 million from $561.1 million a year ago. Net income in the quarter rose 81% to $86.6 million or 93 cents per diluted share compared to net income of $47.9 million or 51 cents per share a year ago.

Herman Miller, Inc ((MLHR)), the office furniture maker said third quarter sales fell 7% to $329.6 million from $354.4 million a year ago. Net income in the quarter was $8.3 million or 12 cents per diluted share compared to net loss of $5.2 million or 10 cents per share a year ago.

IHS Inc ((IHS)), a provider of energy and security information said first quarter revenues rose 2% to $240.7 million from $235.4 million a year ago. Net income in the quarter fell 1% to $26.8 million or 42 cents per diluted share compared to net income of $27.1 million or 43 cents per share a year ago.

Luby’s, Inc ((LUB)), a restaurant operator said second quarter sales fell 12.5% to $53.8 million from $61.5 million a year ago. Net loss in the quarter was $450,000 or 2 cents per diluted share compared to net income of $146,000 or 1 cent per share a year ago.

Nike, Inc ((NKE)), the athletic shoe and clothing company said third quarter revenues rose 6.5% to $4.73 billion from $4.44 billion a year ago. Net income in the quarter rose 111% to $496.4 million or $1.01 per diluted share compared to net income of $234.8 million or 50 cents per share a year ago.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 102.95 or 0.95% to 10,744.03, and Hang Seng index in Hong Kong decreased 53.82 or 0.25% to 21,330.67, and CSI 300 index in China lower 6.36 or 0.19% to 3,267.56. ASX 200 index in Australia increased 9.90 or 0.20% to 4,863.10. The FTSE Bursa KL Composite index in Malaysia was lower 0.01 or 0.00% to 1,301.94.

The Kospi Index in South Korea decreased 7.69 or 0.46% to close at 1,675.17. SET index in Thailand closed lower 6.52 or 0.85% to 759.02. JSE Index in Indonesia decreased 19.02 or 0.69% to 2,737.24. The Sensex index in India increased 29.18 or 0.17% to 17,519.26.

Europe Markets Review

In London FTSE 100 Index traded higher 2.92 or 0.05% to 5,647.55, in Paris CAC 40 Index decreased 6.63 or 0.17% to 3,951.26 and in Frankfurt DAX index traded lower 2.45 or 0.04% to 6,021.83. In Zurich trading SMI decreased 4.71 or 0.07% to 6,887.30.