Intel cut its forecast, while Wal-Mart posts higher earnings. Weekly jobless claims hit a seven-year high
Stocks unrelenting Thursday after Intel slashed its outlook for the fourth quarter and hebdomadal jobless claims collision a seven-year high.
Wal-Mart Stores (WMT) earnings rose, but the globe’s largest retailer lowered expectations since profits nearest quarter.
In U.S. relating to housekeeping news, weekly jobless claims rose 32,000 to a 7-year high 516,000. The September exchange of commodities deficit eased to $56.5 billion from $59.1 billion in August.
“The jobless claims data are the closest thing that we have to a real-time indicator on economic activity,” said John Ryding of RDQ Economics. “In narrow, the labor market is acquisition in reality ugly and this report will likely reinforce the Fed’s desire to cut rates again in December and put pressure in succession Congress to pass a stimulus package that extends unemployment benefits.”
After Wednesday’sitting 4.7% ear-ring in the Dow and 5% decline for the S&P 500, stocks were again in negative territory Thursday.
Around 1:45 pm ET Thursday, the Dow Jones Industrial Average was off 67.62 points, or 0.82%, to 8,215.04. The broad S&P 500 index dropped 3.56 points, or 0.42%, to 848.74. And the tech-heavy Nasdaq compounded fell 20.73 points, or 1.38%, to 1,478.48.
Among stocks in the news, Wal-Mart Stores (WMT) reported slightly better-than-expected quarterly gain advantage on as shoppers seeking relief from deteriorating global relating to housekeeping conditions scoured its aisles as antidote to discounts on groceries and medicine. Wal-Mart reported net income of $3.14 billion, or 80 cents by share, for the third locality ended Oct. 31, up from $2.86 billion, or 70 cents per share, a year earlier. The company said earnings from continuing operations were 77 cents per share. It had previously forecast 73 cents to 76 cents, and analysts on average had been expecting 76 cents, according to Reuters Estimates.
The results come as other retailers visit their sales and profits fall as a global financial meltdown and rising unemployment prompt shoppers to severely curb spending. Wal-Mart, the world’s largest retailer, said its low prices and plans to cut prices every week until Christmas were attracting shoppers, giving it momentum headed into the crucial year-end holiday season. But Wal-Mart expects its current fourth-quarter results to suffer for of currency fluctuations as a stronger U.S. dollar lowers the value of its between nations sales.
After the market grapple Wednesday, Intel (INTC) slashed its fourth quarter forecast, citing significantly weaker-than-expected demand in total geographies and market segments. The cut chips from maker also says PC supply chain is aggressively reducing component inventories. It lowered $10.1-$10.9 billion fourth region revenue guidance to $9 billion, plus or minus $300 million — which amounts to a sales decline of around 12% from the third quarter. An Intel prolocutor said the social meeting has experienced “a pretty quick decline” in its vocation. He said Intel is ordering a hiring freeze and cutting other discretionary spending, moreover has no plans to subjugate its work force.
CIT Group (CIT) says it applied to the Federal Reserve to become a bank holding company, one effort to partake in the U.S. Treasury’s bailout program.
Wellcare Health Plans (WCG) says it will not meet the deadline to file its third quarter financial results in a 10-Q with the Securities and Exchange Commission. The firm says it expects significant changes in results from the third quarter of 2007 to have existence reflected in the report when it is in the end filed.
Dr. Pepper Snapple Group (DPS) posted up income of 45 cents per share, vs. 63 cents a year ago, as net sales relentless 2%. Further reductions in consumer spending are hurting the not soft’s ability to look forward to in the near- and mid-term, executives said while projecting 2008 net sales growth of about 1%.
Crocs (CROX) reported a $1.79 per share loss, vs. 66 cents a year ago, as revenue implacable 32% and the company reported $104 million in charges. Crocs plans to close its Brazil manufacturing put in the ground in the fourth quarter and divide capital expenditures through half next year.
World stock markets were mixed Thursday. London’s FTSE 100 was disrespectfully lower, while Frankfurt and Paris indexes gained ground. In Asia, Tokyo stocks plunged 5.25%, Hong Kong stocks skidded 5.15% and Shanghai stocks rose 3.68%.
Bonds were mixed before Treasury’s 30-year refunding auction. The 10-year record was flat at 100-05/32 for yield of 3.737%, moderate 30-year bonds against at 105-07/32 for yield of 4.193%.
December gold futures were off $5.20 to $713.10. Oil was narrowly lower, with the price of a barrel of crude oil on the NYMEX down 48 cents to $55.68.
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