Global stocks decline after a sell-off that started in Asia an d spread to Europe and Americas. Resource stocks led the decliners on weak economic reading in Japan and China and worries that economic rebound may be further away than estimated.
Lowes Companies, Inc second quarter revenues fell 5% to $13.84 billion and net income fell 19% to $759 million or 51 cents a share. The Valspar Corporation third quarter revenues fell 17% to $794.6 million and net income rose 40.3% to $61.6 million or 61 cents a share.
Japan GDP rebounded 0.9% in the second quarter ending in June on a turnaround in exports and a rise in industrial production. Most economists attributed the milder than expected rebound as temporary. Stocks declined sharply on weak commodities prices and U.S. consumer confidence report.
Australian stocks declined after Asian markets and commodities prices fell. Copper led the decliners in the metals trading. Fortescue Metals offered 35% discount to Chinese steel maker, breaking the long impasse the discussion between Chinese steelmakers and Australian iron ore miners.
The benchmark index in Mumbai plunged 4% as markets in Asia drop sharply. Companies in India seek capital infusion through public offering and courting international investors. Nearly nine companies are looking to raise a total of $1.5 billion. Rupee declined on monsoon worries.
Allianz SE first-half revenues increased 2.9% to 49.9 billion and net profit declined 29.6% to 1.9 billion or 4.17 a share.
Fresnillo Plc first-half revenues fell 10.7% to $378.9 million and net profit fell 37% to $105.0 million or 20.36 cents a share. Michael Page International plc first-half revenues fell 27% to £364.7 million and net profit fell 52% to £28.3 million or 8.7 pence a share.
ANTA Sports Products Limited first-half revenues rose 27.7% to Rmb 2.8 billion and net profit rose 40% to Rmb 608.3 million or Rmb 0.24 a share. Tingyi (Cayman Islands) Holding Corp first quarter revenues rose 21% to $1.18 billion and net profit rose 42.5% to $92.8 million or 1.66 cents a share.
Leighton Holdings Limited full-year revenues rose 26% to $18.3 billion and net profit fell 28% to $444.0 million or 149.5 cents a share. Newcrest Mining Limited full-year revenues rose 7.2% to $2.53 billion and net profit rose 84.7% to $248.1 million or 52.9 cents a share.
Marshall & Ilsley declined after it booked a charge related to bad mortgage loans. BB&T filed to raise $750 million after it agreed to acquire Colonial BancGroup. First Solar fell on accounting issues. Global Sources Ltd surged after net fell 39%. Healthcare insurance provider increased.
Kenneth Cole second quarter consolidated net revenues declined only 15.5% to $93.9 million driven by improved gross margins and effective cost controls. Net loss was $3.2 million or 18 cents against $2.0 billion and 11 cents in the prior year quarter. Comparable same-store sales declined 14.7%.
Dole Food files for $500 million public offering. The tight debt markets may have forced company to seek relisting of the stock after staying private for nearly six years. Dole will use proceeds to repay debt maturing in 2010 and 2011.
For all those who believe inflation is benign and under control may need to think again. The inflation index in the last eight years has jumped 25% in addtion to the surge of 100% in the previous decade. Dole Food filed $500 million offering to repay debt. BB&T surges on a deal to acquire Colonial.
Porsche agreed to sell 10% stake to Qatar and the sovereign fund will also acquire options in Volkswagen AG. Volkswagen plunged 15% after it agreed to acquire Porsche. Hochtief AG gained after it plans to spin off its portfolio holdings in airports and toll roads.
UK home possessions in the second quarter increased but at a slower pace compared to the first quarter. For the year the industry association still estimates possessions to rise to 65,000. Man Group sells remaining stake in MF Global to Nomura.
Governor Stevens of the Reserve Bank of Australia may tighten the rates from the historic lows nearly ten months ago. Australian dollar gained in the backdrop of comments and rising sentiment in the stock market. Leighton surged after positive earnings outlook. PMP reported annual loss.
Abercrombie & Fitch Co second quarter sales fell 23% to $648.5 million and net loss was $26.7 million or 30 cents a share. J. C. Penney Company, Inc second quarter sales fell 8% to $3.94 billion and net loss quarter was $1 million or break even per share.
Japanese demand for services increased 0.1% in June as the economic stimulus spurs the demand across the economy. Commodities and resource linked stocks jumped on the expectations of higher Chinese demand. Container ship lines attempt to lift rates ahead of the busiest shipment season.
India may be forced to lower its economic target in the current year near 6%. Weak monsoon, rising food prices and resurgent world energy prices may slow the economic expansion. The stocks in India may face head-winds on stretched valuations.
Southern Bear plc full-year revenues rose 116% to £11.8 million and pre-tax profit rose 186% to £1.03 million. Titan Europe Plc first-half revenues fell 36% to £149.2 million and net loss was £9.5 million or 11.47 pence a share.