The U.S. dollar strengthens as the G20 summit in Seoul comes to a close this week, as the markets turn lower on Friday on China inflation worries.
Hi. I’m Sayoko Murase. Welcome to the “Weekly Market Wrap” for Friday, November 12, 2010.
Markets were lower for the the week. The S&P, Dow, and Nasdaq each shed more than two percent.
Crude oil futures fell by over 2.5 percent for the week. Oil is trading at $84.89 a barrel on Friday afternoon.
Gold futures decreased by nearly 1.7 percent this week, trading at $1370.51 an ounce on Friday afternoon.
G20 leaders failed Friday to reach an agreement on slashing the “currency imbalances” that are in part responsible for the United States’ trillion-dollar deficit in foreign trade. Measures to increase the influence of emerging market countries were agreed upon, and both criticism and respect was bestowed upon China for its emergence as the world’s second largest economic power after the US.
In economic news this week, trade data released showed that United States exports were $154.1 billion in September, the highest level in at least the last two years. Imports were $198.1 billion, leaving a deficit of $44 billion in September, down from a revised $46.5 billion deficit in August.
In a positive development, jobless claims fell last week by about 24,000, to 435,000, the lowest level in four months.
In earnings news this week, Allscripts Healthcare Solutions (NASDAQ:MDRX) posted a decline in third quarter earnings, to $1.4 million, or $0.01 per share, compared to $12.9 million, or $0.09 per share, in the same quarter last year. Revenue grew to $242.4 million, from $164.9 million last year. Allscripts said it is expecting 10-12% revenue growth in fiscal 2011 on a non-GAAP basis.
Priceline.com (NASDAQ:PCLN) posted third quarter earnings of $223 million, or $4.41 per share, down from $319 million, or $6.42 per share, in the same quarter last year. Priceline is also predicting fourth quarter profit of $2.91 to $3.06 per share, better than analysts had forecast.
Lions Gate Entertainment (NYSE:LGF) posted a loss for its fiscal second quarter late yesterday, of $29.7 million, or $0.22 per share, compared to a profit of $31.7 million, or $0.26 per share, in the same quarter last year. Earnings per share were below Wall Street Forecasts, but revenue increased 25%, to $456.3 million, well ahead of analyst expectations.
Cisco Systems (NASDAQ:CSCO) posted an increase in fiscal first-quarter earnings late yesterday, but offered a disappointing outlook. Cisco said profits totaled $1.9 billion, or $0.34 per share, compared to $1.8 billion, or $0.30 per share, in the same quarter last year. Revenue increased 19%, to $10.75 billion. Adjusted earnings of $0.42 per share were just ahead of analyst expectations. Cisco’s outlook of 3-5% revenue growth in the second fiscal quarter disappointed analyst expectations, however.
Kohl’s (NYSE:KSS) posted third quarter earnings nearly flat vs. last year. Profits totaled $194 million, or $0.63 per share, compared to $193 million, or $0.63 per share, in the same quarter last year. Revenue rose to $4.22 billion, from $4.05 billion last year. Results were in-line with Wall Street expectations, although the retailer’s fourth quarter forecast of earnings in a range of $1.51 to $1.59 per share may disappoint some analysts, who are looking for $1.57 per share, on average.
This is the “Weekly Market Wrap” for Friday, November 12. Please join us on Monday for the “Week Ahead Market Report.”
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