Stock Market Wrapup Sept. 19th
Equities continued their march higher after yesterday's Fed-fueled rally as investors continued to find comfort in buying attractive names. At the end of Wednesday's session, all three major market averages finished the session with gains of just over half a percent. Oil, meanwhile, continued to trade higher, ending the session up 42 cents to $81.93 a barrel. Gold also kept on climbing, trading up $5.80 to settle out at $729.50 a troy ounce.
The Labor Department reported today that U.S. consumer prices fell -0.1% in August. Excluding food and fuel prices, which tend to be volatile, prices rose 0.2%, in line with what economists were forecasting. Energy prices fell -3.2%, while prices for medical care rose. In other economic news, the Commerce Department said that housing starts fell to a 12-year low in August. Home starts declined by -2.6% to a seasonally adjusted rate of 1.33 million. Meanwhile, authorized building permits fell by -5.9%. In the past year, overall housing starts are down by -19.1%, while permits have plummeted -24.5%.
On the earnings front, Morgan Stanley (NYSE: MS - News) shares declined -2.2% after the company reported earnings from continuing operations of $1.47 billion, or $1.38 a share, down from $1.59 billion, or $1.50 a share, last year. Revenue rose 13% to $8 billion, despite fixed income and trading revenue falling -3% from year-ago levels. During the quarter, the company said it took a -$940 million loss from the decreased market value of loans on its books, mostly due to the recent turmoil in credit markets. Analysts expected the investment bank to post earnings of $1.54 a share on revenue of $8.35 billion.
Restaurant operator Darden Restaurants (NYSE: DRI - News) posted a 20% rise in second-quarter earnings as sales growth at its Olive Garden and Red Lobster establishments grew. For the quarter, the company earned $105.9 million, or 72 cents a share, up from $88.5 million, or 59 cents a share, in the year-ago period. Earnings from continuing operations, meanwhile, rose to 73 cents a share from 62 cents a share last year. Sales totaled $1.47 billion. Same-store sales increased 7% at its Red Lobster locations and 4.8% at its Olive Garden restaurants. The results sent the share up 1.6% on the day.
Used car seller CarMax (NYSE: KMX - News) saw its shares hit a brick wall after the company slashed its 2008 fiscal-year outlook. The company now sees earnings coming in at a range of 92-98 cents a share, down from its previous range of $1.03-$1.14 a share. The company cited a slower-than-anticipated pace in same-store sales growth. The guidance overshadowed its second-quarter earnings, which came in at $65 million, or 29 cents a share, up from $54.3 million, or 25 cents a share, a year earlier. Revenues rose to $2.12 billion.
General Mills (NYSE: GIS - News), the world's second-largest maker of cereal, posted first-quarter net income of $289 million, or 81 cents a share, compared to $267 million, or 74 cents a share, last year. The 8.2% profit jump was due to price hikes for its products. Sales rose a robust 7% to $3.07 billion. Analysts were looking for revenue of $3.0 billion. The company also affirmed its full-year profit outlook of $3.39-$3.43 a share. Shares gained 0.3%.
By the BullMarket.com Staff
The Labor Department reported today that U.S. consumer prices fell -0.1% in August. Excluding food and fuel prices, which tend to be volatile, prices rose 0.2%, in line with what economists were forecasting. Energy prices fell -3.2%, while prices for medical care rose. In other economic news, the Commerce Department said that housing starts fell to a 12-year low in August. Home starts declined by -2.6% to a seasonally adjusted rate of 1.33 million. Meanwhile, authorized building permits fell by -5.9%. In the past year, overall housing starts are down by -19.1%, while permits have plummeted -24.5%.
On the earnings front, Morgan Stanley (NYSE: MS - News) shares declined -2.2% after the company reported earnings from continuing operations of $1.47 billion, or $1.38 a share, down from $1.59 billion, or $1.50 a share, last year. Revenue rose 13% to $8 billion, despite fixed income and trading revenue falling -3% from year-ago levels. During the quarter, the company said it took a -$940 million loss from the decreased market value of loans on its books, mostly due to the recent turmoil in credit markets. Analysts expected the investment bank to post earnings of $1.54 a share on revenue of $8.35 billion.
Restaurant operator Darden Restaurants (NYSE: DRI - News) posted a 20% rise in second-quarter earnings as sales growth at its Olive Garden and Red Lobster establishments grew. For the quarter, the company earned $105.9 million, or 72 cents a share, up from $88.5 million, or 59 cents a share, in the year-ago period. Earnings from continuing operations, meanwhile, rose to 73 cents a share from 62 cents a share last year. Sales totaled $1.47 billion. Same-store sales increased 7% at its Red Lobster locations and 4.8% at its Olive Garden restaurants. The results sent the share up 1.6% on the day.
Used car seller CarMax (NYSE: KMX - News) saw its shares hit a brick wall after the company slashed its 2008 fiscal-year outlook. The company now sees earnings coming in at a range of 92-98 cents a share, down from its previous range of $1.03-$1.14 a share. The company cited a slower-than-anticipated pace in same-store sales growth. The guidance overshadowed its second-quarter earnings, which came in at $65 million, or 29 cents a share, up from $54.3 million, or 25 cents a share, a year earlier. Revenues rose to $2.12 billion.
General Mills (NYSE: GIS - News), the world's second-largest maker of cereal, posted first-quarter net income of $289 million, or 81 cents a share, compared to $267 million, or 74 cents a share, last year. The 8.2% profit jump was due to price hikes for its products. Sales rose a robust 7% to $3.07 billion. Analysts were looking for revenue of $3.0 billion. The company also affirmed its full-year profit outlook of $3.39-$3.43 a share. Shares gained 0.3%.
By the BullMarket.com Staff
posted by Stock Administrator @ 1:56 AM
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