BetterTrades Stock Market Summary

In a huge reversal of fortune, the markets did a complete one-eighty by the end of today’s trading session despite the continuing concerns over the future of Lehman Brothers. By the close of trade today, many investors took the opportunity to relinquish their holdings within the company that sent the shares of LEH down more than 41%, or $3.03, to end the day at $4.22 a share. With the markets down big through the majority of the day’s session, they all managed to rebound and end the day with each index gaining more than 1% each. By the sound of the closing bell, the Dow Jones Industrial average gained 164.79 points, or 1.46%, to 11, 433.71, despite being down 188 points early in the session. The broader market indicators also concluded the day in the green, as the S&P 500 Index added 17.01 points, or 1.38%, to 1,249.05, while the NASDAQ composite index garnered 29.52 points, or 1.32%, to end the day at 2,258.22

In their weekly report, the Labor Department made it known before the markets opened today in which new applicants for unemployment retreated less than experts were anticipating. In the release, the final numbers showed that 6,000 applicants filed for unemployment to a seasonally adjusted figure of 445,000, higher than the 440,000 expected. As a rule, economists see a jobless claims’ figure above 400,000 as a strong indicator of a receding economy. Additionally, the number of individuals continuing to collect benefits for unemployment increased 122,000 to more than 3.5 million people. Last week, employers reduced their payrolls by some 84,000 workers, which brings the full-year tally to more than 605,000 jobs lost already this year.

In another government release related to the state of the economy, the Commerce Department announced their findings earlier today in which the width between imports and exports increased by 5.7% for July, its highest level in nearly a year-and-a-half. Not surprisingly, the main culprit for the increased deficit lies with the importation of crude oil, which helped overall imports jump to an all-time high of $230.3B, a 3.9% increase from June’s total. Once again, the increase in oil imports overshadowed the strong showing of exports which advanced by 3.3% at a record of $168.1B, with automobiles, aircraft and personal computers leading the way.

In a statement released early Thursday morning, the Campbell Soup Co. (CPB) announced results from the company’s 4Q that saw net income jump nearly 46% year-over-year. Campbell, together with its consolidated subsidiaries, is a global manufacturer and marketer of high quality, branded convenience food products that operates in three business segments: Soup and Sauces, Biscuits and Confectionery, and Away From Home. For their recent quarter, CPB recorded earnings of $89M, or $0.21 per share, compared to last year’s results of $61M, or $0.16 per share. In addition to increased income, the company also managed to increase overall sales, from $1.5B to $1.72B, an increase of 13%. Meanwhile, analysts were looking for the soup-maker to post earnings of $0.25 per share on total revenues of $1.72B. Furthermore, the company added guidance for the upcoming fiscal year, in which the company anticipates sales to grow at a 3% to 4% pace, and to generate net earnings per share at a 5% to 7% clip above 2008’s full-year earnings of $2.08 per share that would equate to about $2.19 to $2.23 per share. With the markets turning around by the close, shares of Campbell benefited greatly, adding $1.42, or 3.8%, to conclude the session at $39.00 a share.

Lululemon Athletica Inc. (LULU) is a yoga inspired athletic apparel company that creates components for people to live longer, healthier and more fun lives. By producing products that help keep people active and stress free, they believe that their world will be a better place. Setting the bar in technical fabrics and functional designs, they work with yogis and athletes in local communities for continuous research and product feedback. Early Thursday morning, the company made it known that their 2Q profits more than doubled year-over-year. For the recent period, LULU posted net income of $11.1M, or $0.16 per share, versus last year’s tally of $5.1M, or $0.07 per share. The main culprit for the quarterly success resides with the surge in overall sales, which jumped 48%, from $57.9M to $85.5M. During the recent quarter, analysts were projecting that LULU record earnings of $0.13 per share on total sales of $88.2M. By the sound of the closing bell, shares of Lululemon were higher, up $2.62, or 14.6%, to close out at $20.62 a share.

Methode Electronics, Inc. (MEI) manufactures component devices world-wide for Original Equipment Manufacturers of information processing and networking equipment, voice and data communication systems, consumer electronics, automobiles, aerospace vehicles and industrial equipment. Products employ electrical, electronic and optical technologies as sensors, interconnections and controls. The company manufactures bus systems and provides independent laboratory services for qualification testing and certification of electronic and optical components. Thursday morning brought news in which the company confirmed that their 1Q earnings dropped drastically on heavy charges and increased expenses. For the quarter, MEI posted net income of $6.82M, or $0.18 per share, compared to last year’s 1Q earnings of $8.27M, or $0.22 per share. Overall revenues during the period did increases more than 7%, from $125M to $134.5M, but not enough to offset all the write-downs. As for the charges, the company endured a $4.9M charge for restructuring, while expenses increased from $15.97M to $16.45M. By the end of the trading session, shares of MEI were down on the day, falling $0.91, or 8.2%, to conclude at $10.23 a share.

Krispy Kreme Doughnuts Inc. (KKD) is a leading branded specialty retailer of premium quality doughnuts, which are made throughout the day in their stores with their principal business being the high volume production and sale of varieties of premium quality doughnuts. The company has established Krispy Kreme as being a leading consumer brand with a loyal customer base through a longstanding commitment to quality and consistency. Before the markets opened Thursday, the company made it known that their results for their 2Q came in better than expected. For the recent quarter, KKD posted a loss of $1.9M, or $0.03 per share, down drastically from last year’s loss of $27M, or $0.42 per share. Quarterly sales figures came in at $94.2M, down almost 10% from last year’s sales total of $104.1M. Krispy Kreme attributes the lower results to increased commodity prices along with the price of fuel that increased the company’s delivery costs. By the end of the session, shares of KKD were down, slipping 4%, or $0.16, to finish the day at $3.84 a share.

In an earnings release stated after the markets closed on Wednesday, Spartech Corp. (SEH) affirmed that the company’s 3Q earnings plunged by half of what they made just a year ago. Spartech is in the plastics processing business, with its two lines of business being: Extruded Sheet & Rollstock, which sells its products to various manufacturers who use plastic components in their industrial products. The other being Merchant Compounding, which sells specialty alloys, compounds and color concentrates principally to manufacturers of specialized footwear, shutters, loose-leaf binders, cosmetic packaging products, and numerous other custom plastic applications. In their statement, Spartech posted earnings of $4.4M, or $0.15 per share, compared to the previous year’s total of $8.8M, or $0.27 per share. With earnings declining, so did overall sales, which dropped 3% from last year to $350.3M from $361.1M. The company attributes the lack-luster report to higher costs in resin, which is used to make plastics and a lack of demand from the construction, auto and leisure industries. By the closing bell, shares of Spartech managed to conclude the session in the green, gaining $0.24, or 2.4%, to finish at $10.13 a share.

Even though Hurricane Ike may be headed for the Gulf coast, the price of crude was unaffected today, as the price for a barrel of light, sweet crude for October delivery dropped $1.71 to $100.87, its lowest closing mark since March 24th, and even fell as low as $100.10. In additional NYMEX trading, gasoline futures added $0.0872 to settle at $2.7488 per gallon, while heating oil futures gained $0.0131 to finish at $2.9155 a gallon. Natural gas declined $0.145 to settle at $7.248 per 1,000 cubic feet.

One of the few bright spots for the American economy is the strengthening of the U.S. Dollar, which continued it upward trek Thursday against the major European currencies. By late afternoon trading, the 15-nation Euro slipped to $1.3907, down from last night’s price of $1.4033, and even dropped as low as $1.3881 during the day, a level it has not seen since September of last year. The British pound also declined, falling to $1.7521 from $1.7560, in addition to the Dollar sliding against the Japanese yen, from 107.76 yesterday, to 106.11 today.

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