The eleventh trading week of the year comes to a close as investors continue to monitor the effects of the Japanese earthquake, tsunami, and nuclear disaster, along with the threat of the US having to take military action in Libya to enforce a no fly zone.
Hi. I’m Sayoko Murase. Welcome to the “Weekly Market Wrap” for Friday March 18, 2011.
The NASDAQ, S&P 500, and the Dow Jones Industrial Average were all lower for the week.
Crude oil futures were little changed for the week, with crude trading around $101.15 per barrel late Friday.
Gold futures were also little changed for the week to around $1418 an ounce late Friday.
In notable economic news this week, housing construction fell by more than expected in February, according to a Commerce Department report today.
Housing starts fell 22.5% to a seasonally adjusted rate of 479,000 units, well below economist forecasts. Building permits, seen as a leading indicator for the market, fell 8.2%, to a seasonally adjusted 517,000 units, the lowest recorded level. February’s housing starts was the lowest since a record low of 477,000 in April 2009. Single-family home construction starts dipped nearly 12%, while multi-family starts fell 46%.
In corporate news this week, Quest Diagnostics (DGX) said it has agreed to acquire genetic diagnostics developer Celera (CRA) for $8 per share.
The entire transaction is valued at $344 million, net of $327 million in acquired cash and short-term investments.
Shipping giant FedEx (NYSE:FDX) posted fiscal third quarter earnings today of $231 million, or $0.73 per share, down slightly from $239 million, or $0.76 per share, in last year’s third quarter. Revenue grew 11%, to $9.66 billion. Adjusted earnings of $0.81 per share fell short of analyst expectations. FedEx said its full-year earnings forecast is in a range of $4.83 to $5 per share, which is ahead of analyst forecasts at the high end.
Pacific Sunwear of California (PSUN) posted a fourth quarter loss of $35.2 million, or $0.53 per share, slightly narrower than a loss of $36.5 million, or $0.56 per share, in the same quarter last year. An adjusted loss of $0.33 per share was still wider than analysts expected. Revenue fell 10%, to $263 million, on a 7% decline in same-store sales. PacSun said it anticipated an adjusted loss of $0.29 to $0.35 per share in the first quarter.
Teen retailer Rue21 (RUE) said fourth quarter net income rose to $30.2 million, or $1.21 per share, from $22 million, or $0.96 per share, in the same quarter last year. Net sales rose 22%, to $190.1 million, on same-store sales growth of 1.5%. Rue21 forecast first quarter earnings of $0.27 to $0.29 per share, below analyst expectations on the low end.
Internet company IAC (IACI) said that former Walt Disney (NYSE:DIS) Chairman and CEO Michael Eisner has been elected to its board of directors.
The board was expanded to 13 members to accommodate Eisner’s election, which was effective March 10.
This is the “Weekly Market Wrap” for Friday March 18th. Please join us on Monday for the “Week Ahead Market Report.”
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