Stock Market Wrapup Dec. 5th
On the economic front, a report by ADP Employer Services showed that the private sector added 189,000 jobs in November. Forecasts were calling for a gain of 50,000 jobs. A separate report from the Labor Department showed worker productivity grew at an annual rate of 6.3% in the third quarter, far better than anticipated and representing the fastest growth in four years. A third report showed a reading of the ISM services index fell to 54.1 in November, down from 55.8 in October. Any reading over 50 represents expansion in the sector. Economists were expecting a drop to 55.0.
In earnings news, shares of Guess? (NYSE: GES - News) were up 5.3% in trading after the company reported a surge in third-quarter profits after Tuesday's close. For the quarter, the jeans maker posted net income of $58.3 million, or 62 cents per share, up 32% from $44 million, or 48 cents per share, last year. Quarterly revenue rose to $469.1 million, up 43% from $328.8 million a year earlier. On average, analysts were looking for earnings of 57 cents per share on $424.5 million in revenue.
Meanwhile, late yesterday Chico's (NYSE: CHS - News) posted a drop in third-quarter profit to $23.5 million, or 13 cents per share, down -44% from $42.1 million, or 24 cents per share, a year ago. Results included a 2-cent gain stemming from an asset sale. Revenue for the quarter grew to $416 million, up from $402 million last year. Analysts were expecting a profit of 11 cents per share on revenue of $421 million. Chico's stock tumbled -12.5% on the day.
In corporate news, shares of Comcast (Nasdaq: CMCSA - News) were off -12.3% at the bell after the conglomerate said revenue from its cable arm would grow slower than expected this year, as the company battles increased competition and a lagging economy.
Elsewhere, Jones Soda (Nasdaq: JSDA - News) announced today that its founder and CEO, Peter van Stolk, will step down as the head of the company by year-end. The move comes amid a string of disappointing results for the company including a November announcement that it swung to a third-quarter loss. Jones Soda stock was up 7.2% at the bell.
By the BullMarket.com Staff
