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Market Update : 
Lackluster Averages Despite Job Data
Author: 123jump.com Staff
123jump.com
Last Update: 4:12 PM EST March 09 2007


Trading in New York remained volatile in the face of weekly jobless and monthly trade deficit data. At the end of the previous week 95,000 jobs were added and Commerce Department said the January U.S. trade deficit narrowed by 3.8% to $59.12 billion. Fed Governor Beis cautioned on sub-prime loans. New Century Financial shares fell 12%. Yahoo dropped 5% but Big Lots gained 19%. Crude-oil prices declined $1.36 or 2.66% to $60.23 a barrel.

 
5:00PM NY; 11:00PM Frankfurt; 3:30AM Mumbai - GLOBAL MARKETS
Yield on 10-year bond closed at 4.589% and the 30-year bond closed at 4.721%.

Gold declined $6.200 to close at $649.300 a troy ounce, silver decreased 15 cents to end at $12.970 a troy ounce and copper advanced $139.500 to close at $6276.500 per ton.

Oil declined $1.640 to close at $60.000 a barrel and heating oil lost 4.740 cents to finish at 171.390 cents a gallon. Natural gas decreased 16.9 cents to close at $7.070 per MMBtu. Gasoline went down 2.400 cents to end at 190.210 cents a gallon.

Asian markets closed mixed as Japanese shares advanced on upbeat economic data, while Hong Kong lost. The advancers were led by Philippines with an increase of 2.36%, Singapore with an advance of 0.68% and Japan with a gain of 0.43%. The decliners were led by India with a decrease of 1.26%, China with a loss of 0.27% and Hong Kong with a decline of 0.21%. Australia gained 0.18%.

European markets finished higher after fears about U.S. employment data proved largely unfounded, though a disappointing outlook from Airbus owner EADS and a negative broker note on the pharmaceutical sector contributed some selling pressure. The advancers were led by Spain with an increase of 0.45%, U.K. with a gain of 0.28% and Netherlands with an advance of 0.27%. The decliners were Norway with a decrease of 0.56%, Switzerland with a decline of 0.24% and Italy with a loss of 0.04%.

Latin America markets finished rising in tandem with U.S. stocks. The advancers were led by Brazil with an increase of 1.02%, Mexico with an advance of 0.97% and Argentina with a gain of 0.07%. There were no decliners. Canada ended flat.

2:30PM NY, U.S. Market Movers

AeroVironment Inc. (AVAV: chart), maker of unmanned aircraft systems, said that its third-quarter net profit increased to $8.89 million, or 57 cents per share, compared with $4.39 million, or 29 cents per share, in the year-ago period. Revenue climbed to $46.3 million against $35.5 million in the same period a year earlier. Shares climbed 12%.

Air Methods (AIRM: chart) results were above two analysts'' estimates by a penny, earning 10 cents per share in the fourth quarter. Shares went up 7.4%.

Blue Coat Systems Inc. (BCSI: chart), Internet monitoring equipment maker, reported third-quarter net revenue of $47.1 million, compared with $35.5 million during the year-ago period. Net revenue in the quarter rose 32.6 percent to $47.1 million. Last month, the company had raised its forecast to $45.5 million to $47.5 million. Shares climbed 12%.

Big Lots Inc. (BIG: chart), closeout retailer, said that its fourth-quarter net profit jumped to $104.3 million, or 94 cents per share, compared with $14.7 million, or 13 cents per share a year earlier due to an extra week in the quarter, higher same-store sales, an improved margin and a gain from discontinued operations. Net sales for the period increased 10.8% to $1.55 billion, with same-store sales rising 4.9%. Earnings included a $12.7 million profit from discontinued operations, compared to a loss of $23 million a year earlier. Earnings from continuing operations reached 83 cents a share from 33 cents a share. Shares climbed 18.5%.

Callon Petroleum Co. (CPE: chart) said it agreed to buy an 80% working interest in the Entrada Field from oil company BP PLC for $150 million. Callon, which already owns the other 20% of the field, also agreed to pay another $40 million if the field reaches certain undisclosed production milestones. Callon plans to finance the purchase using a $200 million revolving credit line from Merrill Lynch Capital Corp. Shares climbed 6.2%.

Jones Soda Co. (JSDA: chart), natural soda maker, said that its fourth-quarter net earnings increased to $2.06 million, or 8 cents per share, compared with $580,245, or 3 cents per share, in the year-ago period. Revenue climbed to $10.05 million against $8.75 million in the same period a year ago. Shares went up 21.7%.

La Jolla Pharmaceuticals (LJPC: chart) shares soared 56.2% after it reported positive interim results from a late-phase study of a drug proposed to treat lupus, a chronic condition in which the immune system mistakenly attacks the body''s own tissues.

Middleby Corp. (MIDD: chart) shares soared to 9.3% after the company reported its fourth-quarter net income increased 53%, beating analysts'' expectations. The company said it earned $11.1 million, or $1.34 per share, on $98.3 million in sales. Robert W. Baird analyst Peter Lisnic upgraded the stock to ""Outperform"" from ""Neutral,"" and raised his price target to $140 from $97. He praised the company''s market share and brand loyalty.

Winston Hotels Inc. (WXH: chart) stock jumped 8.8% after the real estate investment trust said it received a $15-a-share buyout offer from Inland American Real Estate Trust.

Ashworth Inc. (ASHW: chart), which designs golf sportswear, said its fiscal first-quarter loss widened on a drop in revenue. For the quarter Ashworth posted a loss of $2.5 million, or 17 cents per share, compared with $50,000, or no cents per share, for the same quarter in 2006. Revenue fell 5.8% to $38.3 million from $40.6 million in the year-ago period. Shares fell 4.6%.

Elong (LONG: chart) posted a small loss for the period as revenue climbed 24% higher to $8.9 million. Analysts were expecting the company to earn $0.10 per ADS on $9.6 million in revenue. Even on a more favorable adjusted basis, eLong''s profitability was disappointing. Shares fell 21.1%.

Encysive Pharmaceuticals (ENCY: chart), drug developer, said fourth-quarter losses widened to $25.8 million, 44 cents a share, compared with $19.4 million, or 33 cents per share, a year earlier, due primarily to costs related to the launch of Thelin tablets in Europe and maintaining its commercial infrastructure in the U.S. Revenue declined to $5.4 million versus $5.6 million in the same period a year ago. Shares fell 10.7%.

Gmarket Inc. (GMKT: chart), electronic commerce merchant, said that its fourth-quarter net income increased to $6.8 million, or 13 cents per share, compared with $3.8 million, or 9 cents per share, a year earlier. Revenue jumped 67% to $51.6 million versus $30.9 million a year ago. The company''s gross merchandise value, which represents the total value of all items sold on Gmarket''s website, rose 53% to $737.4 million from $480.8 million. Shares fell 21.3%.
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