WSJ: US Stock Futures Pare Losses After Unemployment Rate Declines
By Kristina Peterson
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--U.S. stock futures pared losses on Friday after the U.S. unemployment rate unexpectedly declined in January, but the economy continued to shed jobs and revisions painted a bleaker picture for 2009.
Following the report, Dow Jones Industrial Average futures were down 17 points, while Standard & Poor's 500 futures were down 3 points and Nasdaq Composite futures were up 2 points. Prior to the data, Dow futures had been down 35 points, while S&P futures were down 7 and Nasdaq futures were down 1.5.
The unemployment rate fell to 9.7% last month from an unrevised 10% in December, the Labor Department said Friday. Economists surveyed by Dow Jones Newswires had forecast the jobless rate would edge higher to 10.1%.
Meantime, nonfarm payrolls fell by 20,000 compared with a revised 150,000 drop decline in December. Economists had expected payrolls to be flat. The December figure was revised down sharply from an originally reported 85,000 drop. The Labor Department's annual benchmark revision to the survey showed that last year job losses were almost 600,000 more than previously reported.
Meanwhile, anxiety over European sovereign debt continued to roil world markets.
Stocks plunged Thursday as fears over the economic health of several European countries sent jitters through global markets. The Dow lost 268 points and briefly moved below 10,000 for the first time since early November.
European shares continued to fall Friday, posting losses for the third straight session as investors fretted about the health of Greece, Portugal and Spain could lead to a possible debt default or need for a European bailout. The cost of insuring the government debt of Greece, Portugal and Spain against default hit fresh record levels, while prices of their government bonds also dropped again.
Worries about European sovereign debt also weighed on Asian markets, with Japan's Nikkei 225 Average losing 2.9%--its biggest drop in more than two months.
In other markets, the dollar strengthened against both the euro and the yen. Crude oil futures slid, while gold futures also dropped. Treasurys climbed, with the 10-year note up 7/32 to yield 3.585%.
Among stocks in focus, Toyota Motor rose 1.2% in pre-market trading, after the company's president offered "his heartfelt apology" over braking systems problems, his first press conference since the company was hit by a wave of recalls.
Airgas shot up 43% after Air Products & Chemicals offered $5.1 billion, or $60 a share, for its rival.
Changes in futures don't always accurately predict early market moves after the opening bell.
-By Kristina Peterson, Dow Jones Newswires; 212-416-2917; kristina.peterson@dowjones.com
DOW JONES NEWSWIRES
Among the companies whose shares are expected to actively trade in Friday's session are Sunoco Inc. (SUN), Con-Way Inc. (CNW) and Edwards Lifesciences Corp. (EW).
Industrial-gas company Air Products & Chemicals Inc. (APD) made an unsolicited offer to acquire smaller rival Airgas Inc. (ARG) for about $5.1 billion in cash late Thursday. In a letter to Airgas's chief executive and board, Air Products offered to pay Airgas shareholders $60 a share in cash, a nearly 38% premium to Airgas shares' closing price Thursday of $43.53. The large premium is intended to ward off rival bids. Airgas' shares jumped 42% to $62 premarket, while Air Products' weren't trading.
Sunoco's fourth-quarter profit slumped 77% as operating results suffered, but the refiner managed to stay in the black amid better-than-expected revenue and $57 million in gains. Shares fell 2% to $25.15 after hours.
Con-Way's fourth-quarter loss narrowed as the company reported fewer charges, while revenue in the less-than-truckload segment grew on higher tonnage. Shares slid 1.9% to $27.80 in late trading.
Time is on Axa SA's (AXA) side as its negotiation position over Axa Asia Pacific Holding (AXA.AU) will become increasingly flexible, Keefe, Bruyette & Woods said, expecting newsflow to build in February. The firm said news highlighting a potential positive outcome would create positive sentiment for Axa in the run-up to fiscal 2009 results on Feb. 18. American depositary shares fall 4.5% to $19.86 premarket.
Roth Capital Partners upgraded Bebe Stores Inc. (BEBE) after the women's clothing retailer's fiscal second-quarter earnings beat expectations. The firm said the results "confirm our belief that the Bebe brand is improving its merchandising and design issues." Shares rose 2.1% to $6.41 in light premarket trading.
BioTime Inc. (BTIM) said its drug Hextend in hemodynamically unstable trauma patients showed initial resuscitation with the drug had reduced mortality compared with fluid resuscitation without Hextend. The news sent shares up 4% to $5.50 premarket.
Edwards Lifesciences' fourth-quarter profit climbed 25%, paced by growth in the company's business for replacement heart valves, including ones that can be threaded into place without major surgery. Edwards, which affirmed its 2010 targets, also forecast the top end of its first-quarter earnings below analysts' estimates. Shares fell 1.9% to $87.95 after hours despite the revenue beating expectations.
Lear Corp. (LEA) swung to a fourth-quarter profit amid a $1.51 billion gain related to the auto parts maker exiting bankruptcy in November. Looking ahead, the company projected 2010 net sales below analysts' expectations. Shares rose 2.5% to $73 in light premarket trading.
Pitney Bowes Inc.'s (PBI) fourth-quarter profit climbed 33% on prior-year restructuring costs as the company noted improvements in its markets and a slowing decline in U.S. mail volumes. The mail and document-management company's earnings topped Wall Street's expectations and shares rose 0.7% to $21.45 after hours.
Power-One Inc.'s (PWER) shares surged 21% to $3.74 in after-hours trading after the power-supplies maker's fourth-quarter profit blew passed analysts' estimates, as its inverter products posted record revenue.
Ralcorp Holdings Inc.'s (RAH) fiscal first-quarter profit rose 2.6% on higher sales and margins as gains from acquisitions offset lower sales in many areas. Shares gained 3.2% to $63 in after-hours trading as the food maker's results topped Wall Street's expectations.
TTM Technologies Inc. (TTMI) swung to a fourth-quarter profit on a prior-year write-down of $123.3 million, as the company posted its first sequential revenue growth in two years. Shares fell 8% to $8.99 in after-hours trading as the maker of printed circuit boards forecast first-quarter revenue below analysts' estimate although its results in the latest quarter topped Wall Street's expectations.
Toyota Motor Corp.'s (TM) shares rose 1.9% to $73.11 in light premarket trading after being battered in recent days as the company's president said he has ordered swift action to tackle the braking system problems of its highly-popular Prius hybrid gasoline-electric model. "I'd like to offer a heartfelt apology," said Toyota's chief executive Akio Toyoda at a press conference in Nagoya in his first news conference since his company last month became enmeshed in global recalls affecting more than 8 million cars.
Tyson Foods Inc. (TSN) swung to a record fiscal first-quarter profit, smashing analysts' estimates, as margins surged and the company saw strength in its long-troubled chicken operation. Shares rose 4.4% to $14.61 premarket.
Vertex Pharmaceuticals Inc.'s (VRTX) fourth-quarter loss widened as an asset-impairment charge offset higher revenue. Shares jumped 4.7% to $40.23 in late trading as the results beat Wall Street estimates.
