Apr 29, 2008
ownturn initial New York, Merck and Visa fell sharply
Wall Street opened down after the disappointing results of the giant Visa and rejection by the FDA of the new treatment from Merck (MKGAY.PK - news) against cholesterol. In contrast, Office Depot (NYSE: ODP - news) is being sought through an earnings per share above expectations.
Investors stand on their guard pending the publication of an index on consumer confidence. The other element of uncertainty related to the attitude of the Fed on rates. If a majority of economists predicts a drop of a quarter-point Fed funds rate tomorrow, some believe that the central bank could end tomorrow in its cycle of monetary relaxation.
At 9.45 am local, the Dow Jones (news) yields 0.05% to 12.864,83, the S & P 500, 0.15% at 1.394,21 points and the Nasdaq Composite (NASDAQ: news) 0.21% to 2.419,19 points.
In terms of statistics, the market is waiting to 16.00 index of consumer confidence as calculated by the Conference Board for the month of April. Analysts assume a new downturn after the lowest in five years struck in March.
The Fed on Tuesday began a two-day meeting of its board of monetary policy.
The barrel of WTI crude quality fell by 2.56 dollars to 116.19 after touching a record $ 119.93 Monday.
Merck & Co. abandons 7.65% to 38.26 dollars. The pharmaceutical group announced that the Food and Drug Administration (FDA) has rejected its new drug to increase HDL or "good" cholesterol. Merck did not provide details regarding the reasons given by the FDA to explain its refusal. In Paris, Action Merck fell by 7%.
Visa fell by 4.36% to 72.33 dollars. The first U.S. network of credit cards announced a growth of 28% of its net profits to 314 million in the second quarter of its 2007-2008 fiscal year. It is the first publication of the group since its entry on the stock market, last month. Excluding exceptional items, the result is clear to 52 cents per share, below the 55 cents anticipated by the market. Revenues rose by 21.8% to 1.45 billion dollars.
Office Depot rose by 8.78% to 13.01 dollars. The number one U.S. office supplies saw its net profit fall by more than half to 69 million dollars, the crisis of real estate have weighed on sales of its main markets. The result adjusted per share amounted to 29 cents against 22 cents estimated by analysts. Sales fell by 3% to 3.96 billion dollars.
Take-Two Interactive Software takes 1.02% to 26.74 dollars. The director general of the group believes that sales of game "Grand Theft Auto IV", whose output world takes place this Tuesday, are expected to exceed analysts' forecasts.
Avon Products (NYSE: AVP - news) is gaining 1.47% to 40.69 dollars. The world's number one direct sale of cosmetics products registered a jump of 23% of its net income to $ 184.7 million in the first quarter, the growth of its business in emerging markets and developing offsetting the weakness recorded in USA. Excluding restructuring costs, profit reached 47 cents per share, 3 cents better than expected by Wall Street. The turnover increased by 14% to $ 2.5 billion. Avon said he was confident in its ability to achieve its target operating margin of approximately 14%.
Finally, Corning (NYSE: GLW - news) wins 2.96% to 26.44 dollars. The world's leading manufacturer of glass for flat screens announced a tripling of its net profits to 1.03 billion dollars in the first quarter, boosted by strong demand for laptops and LCD televisions. Excluding exceptional items, profit was 44 cents per share, against 42 cents expected by operators. The billings rose by 24% to 1.62 billion dollars. For the current quarter, Corning expects a profit of at least 47 cents per share excluding exceptional and on a turnover of 1.71 to 1.75 billion dollars, respectively, against 43 cents per title and 1.68 billion dollars estimated by the consensus reached by Bloomberg
by erectusplus at 7:17 AM |
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