Stock Market Wrapup April 30th
Stocks traded indifferently before closing lower on mixed economic data. The government reported weak consumer spending in March, but an important inflation measure was flat. Technology stocks suffered more today than the Blue Chips as investors weighed the consumer spending news. Crude oil prices declined 75 cents a barrel in New York trading, while the 10-year Treasury note advanced.
The Commerce Department reported consumer spending grew by a slower-than-expected 0.3% in March compared to February, when spending increased at a revised 0.7%. After adjusting for price increases and taking spending for energy out of the equation, consumer spending actually declined -0.2% last month. The price index for personal consumption expenditures, an inflation gauge closely watched by the Federal Reserve, was flat in March when food and energy costs are excluded.
Verizon Communications (NYSE: VZ - News) closed up 0.8% after reporting its Q1 revenue rose but its net income declined -8.4% to $1.5 billion. The drop was attributed to the loss of income from assets sold in the past year, offset by growth in its Verizon Wireless unit and from its new fiber-optic high-speed service offering TV, voice, and Internet. Revenue grew 6.4% to $22.6 billion. The results beat Wall Street forecasts.
Shares of health insurer Humana (NYSE: HUM - News) lost -2.6% after the company reported a -15% drop in its Q1 profit. The company's results beat expectations, and it raised its outlook for the full year. The company said enrollment in its Medicare Advantage plans grew 50% compared with the year-ago period, and was up 11% since year-end to exceed 1.1 million. The drop in shares was attributed to profit taking.
Investors cheered the results posted by packaged food maker Kellogg (NYSE: K - News), pushing the stock to a 52-week high. The maker of Eggo waffles and Keebler cookies reported a 17% increase in Q1 net income on a 9% increase in revenue. Excluding one-time gains, Kellogg beat analyst estimates. The company also boosted its full-year guidance. Meat processor Tyson Foods (NYSE: TYN - News), meanwhile, returned to profitability in its fiscal Q2. Tyson reported a profit of $68 million, or 19 cents per share, against a year-ago loss of -$127 million, or -37 cents per share, and also raised its earnings outlook. The stock initially jumped on the news but faded in the afternoon.
In other news, German stock market operator Deutsche Boerse said it agreed to buy U.S.-based options exchange International Securities Exchange (NYSE: ISE - News) for $2.8 billion in cash. ISE's stock jumped 45.9%. The German exchange offered $67.50 a share, which is a 48% premium over Friday's closing price. Deutsche Boerse has been shopping for acquisition candidates since it lost out to NYSE Group (NYSE: NYX - News) in a bid to acquire Europe's Euronext market.
Finally, shares of Citigroup (NYSE: C - News) moved higher after a news report in London suggested the company could come under pressure to break itself into smaller pieces from activist hedge funds. Yahoo (Nasdaq: YHOO - News) closed lower after announcing it would buy the 80% of advertising exchange operator Right Media it did not already own.
By the BullMarket.com Staff
The Commerce Department reported consumer spending grew by a slower-than-expected 0.3% in March compared to February, when spending increased at a revised 0.7%. After adjusting for price increases and taking spending for energy out of the equation, consumer spending actually declined -0.2% last month. The price index for personal consumption expenditures, an inflation gauge closely watched by the Federal Reserve, was flat in March when food and energy costs are excluded.
Verizon Communications (NYSE: VZ - News) closed up 0.8% after reporting its Q1 revenue rose but its net income declined -8.4% to $1.5 billion. The drop was attributed to the loss of income from assets sold in the past year, offset by growth in its Verizon Wireless unit and from its new fiber-optic high-speed service offering TV, voice, and Internet. Revenue grew 6.4% to $22.6 billion. The results beat Wall Street forecasts.
Shares of health insurer Humana (NYSE: HUM - News) lost -2.6% after the company reported a -15% drop in its Q1 profit. The company's results beat expectations, and it raised its outlook for the full year. The company said enrollment in its Medicare Advantage plans grew 50% compared with the year-ago period, and was up 11% since year-end to exceed 1.1 million. The drop in shares was attributed to profit taking.
Investors cheered the results posted by packaged food maker Kellogg (NYSE: K - News), pushing the stock to a 52-week high. The maker of Eggo waffles and Keebler cookies reported a 17% increase in Q1 net income on a 9% increase in revenue. Excluding one-time gains, Kellogg beat analyst estimates. The company also boosted its full-year guidance. Meat processor Tyson Foods (NYSE: TYN - News), meanwhile, returned to profitability in its fiscal Q2. Tyson reported a profit of $68 million, or 19 cents per share, against a year-ago loss of -$127 million, or -37 cents per share, and also raised its earnings outlook. The stock initially jumped on the news but faded in the afternoon.
In other news, German stock market operator Deutsche Boerse said it agreed to buy U.S.-based options exchange International Securities Exchange (NYSE: ISE - News) for $2.8 billion in cash. ISE's stock jumped 45.9%. The German exchange offered $67.50 a share, which is a 48% premium over Friday's closing price. Deutsche Boerse has been shopping for acquisition candidates since it lost out to NYSE Group (NYSE: NYX - News) in a bid to acquire Europe's Euronext market.
Finally, shares of Citigroup (NYSE: C - News) moved higher after a news report in London suggested the company could come under pressure to break itself into smaller pieces from activist hedge funds. Yahoo (Nasdaq: YHOO - News) closed lower after announcing it would buy the 80% of advertising exchange operator Right Media it did not already own.
By the BullMarket.com Staff