Stock Market Wrapup Nov. 30th
Stocks were mixed in trading on the final day of a volatile week, with the Dow and S&P each posting gains. Meanwhile, the Nasdaq closed lower on the day as earnings from Dell (Nasdaq: DELL - News) fell short of expectations. The Dow added 60 points to close at 13,372, with the S&P added 11 points to end at 1,481 for the day. The Nasdaq closed down -7 points to close at 2,661 for the week. Light, sweet crude dipped on the day to settle at $88.71 for January delivery. Treasury and gold prices both fell, while the dollar gained against the euro and the yen.
In economic news, Fed Chairman Ben Bernanke fueled speculation of a December rate cut during a speech last night when he said the central bank will have to be "exceptionally alert and flexible" as consumers are likely to face headwinds in the coming months due to the credit environment, housing market, and high energy costs. Adding to rate-cut predictions is a report from the Commerce Department that showed individual income and spending slowed in October. According to the report, income earned by individuals rose 0.2%, which was below the 0.4% economists had predicted. Spending by consumers was also weaker than expected gaining just 0.2% in October, compared to the 0.3% rise economists had forecasted.
On the earnings front, shares of Tiffany (NYSE: TIF - News) were off -4.8% in trading despite reporting third-quarter earnings that more than tripled. For the quarter, the company posted net income of $98.9 million, or 71 cents per share, up from $29.1 million, or 21 cents per share, a year earlier. Excluding a gain of 48 cents a share resulting from the sale-leaseback of its Tokyo store, the company would have earned 23 cents per share. Sales for the quarter jumped to $627.3 million, up 18% from $531.8 million, in 2006. Analysts, on average, were looking for a profit of 25 cents per share on revenue of $616.2 million.
After yesterday's close, J. Crew (NYSE: JCG - News) posted third-quarter profits that beat Wall Street expectations. The apparel maker recorded net income of $26.8 million, or 42 cents per share, up from $26.0 million, or 40 cents per share, last year. Revenue for the quarter climbed to $332.7 million, up 21% from $275.6 million, a year ago. Analysts had expected earnings of 36 cents per share on $312.3 million in revenue. Shares of J. Crew soared in trading and were up 19.2% at the bell.
After the bell yesterday, Dell reported third-quarter earnings of $766 million, or 34 cents per share, up 27% from $601 million, or 27 cents per share, last year. Excluding a series of one-time charges and gains, Dell would have reported a profit of 35 cents per share. Revenue in the quarter rose 9% to $15.64 billion. On average, analysts were looking for Dell to post profits of 35 cents per share on $15.34 billion in revenue. Shares of Dell tumbled -12.8% on the day, as the company also warned that future earnings may be affected by market shifts, although no specific guidance was given.
In other corporate news, Morgan Stanley (NYSE: MS - News) announced Thursday that its co-presidents Zoe Cruz and Robert Scully will be stepping down. The move is the latest in a series of restructuring announcements following mortgage-related losses that have plagued the financial sector. According to the announcement, Cruz, who was once considered a potential CEO candidate, will be retiring, and Scully will move to a newly created position. Shares of Morgan Stanley were up 0.7% at the bell.
Elsewhere, shares of Motorola (NYSE: MOT - News) traded 2.0% higher today after the company announced that its CEO, Ed Zander, will be stepping down at the end of the year. Taking his place will be the company's current president and COO, Greg Brown.
By the BullMarket.com Staff
In economic news, Fed Chairman Ben Bernanke fueled speculation of a December rate cut during a speech last night when he said the central bank will have to be "exceptionally alert and flexible" as consumers are likely to face headwinds in the coming months due to the credit environment, housing market, and high energy costs. Adding to rate-cut predictions is a report from the Commerce Department that showed individual income and spending slowed in October. According to the report, income earned by individuals rose 0.2%, which was below the 0.4% economists had predicted. Spending by consumers was also weaker than expected gaining just 0.2% in October, compared to the 0.3% rise economists had forecasted.
On the earnings front, shares of Tiffany (NYSE: TIF - News) were off -4.8% in trading despite reporting third-quarter earnings that more than tripled. For the quarter, the company posted net income of $98.9 million, or 71 cents per share, up from $29.1 million, or 21 cents per share, a year earlier. Excluding a gain of 48 cents a share resulting from the sale-leaseback of its Tokyo store, the company would have earned 23 cents per share. Sales for the quarter jumped to $627.3 million, up 18% from $531.8 million, in 2006. Analysts, on average, were looking for a profit of 25 cents per share on revenue of $616.2 million.
After yesterday's close, J. Crew (NYSE: JCG - News) posted third-quarter profits that beat Wall Street expectations. The apparel maker recorded net income of $26.8 million, or 42 cents per share, up from $26.0 million, or 40 cents per share, last year. Revenue for the quarter climbed to $332.7 million, up 21% from $275.6 million, a year ago. Analysts had expected earnings of 36 cents per share on $312.3 million in revenue. Shares of J. Crew soared in trading and were up 19.2% at the bell.
After the bell yesterday, Dell reported third-quarter earnings of $766 million, or 34 cents per share, up 27% from $601 million, or 27 cents per share, last year. Excluding a series of one-time charges and gains, Dell would have reported a profit of 35 cents per share. Revenue in the quarter rose 9% to $15.64 billion. On average, analysts were looking for Dell to post profits of 35 cents per share on $15.34 billion in revenue. Shares of Dell tumbled -12.8% on the day, as the company also warned that future earnings may be affected by market shifts, although no specific guidance was given.
In other corporate news, Morgan Stanley (NYSE: MS - News) announced Thursday that its co-presidents Zoe Cruz and Robert Scully will be stepping down. The move is the latest in a series of restructuring announcements following mortgage-related losses that have plagued the financial sector. According to the announcement, Cruz, who was once considered a potential CEO candidate, will be retiring, and Scully will move to a newly created position. Shares of Morgan Stanley were up 0.7% at the bell.
Elsewhere, shares of Motorola (NYSE: MOT - News) traded 2.0% higher today after the company announced that its CEO, Ed Zander, will be stepping down at the end of the year. Taking his place will be the company's current president and COO, Greg Brown.
By the BullMarket.com Staff
Labels: DELL, Dell Inc., Morgan Stanley, MOT, Motorola Inc., Robert Scully, Zoe Cruz
posted by Stock Administrator @ 6:06 PM
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