10:25 AM New York – U.S. indexes struggled to trade higher and labor productivity rose more than estimated in the second quarter. PTC agreed to acquire Servigistics for $220 million. Dish Network quarterly net slumped 33%.
U.S. indexes struggled to reach positive line in early morning trading and commodities fell. However, labor productivity rose more than anticipated in the second quarter.
European indexes traded lower after a rating downgrade of Greece’s credit rating outlook and the Bank of England lowered its growth outlook in the third quarter and estimated slower recovery from the current recession.
In Asian trading, markets followed international movements and generally closed lower. Markets in Japan, South Korea and Australia gained but lost a fraction in India and in Hong Kong.
Japan reported a current account surplus of 433.3 billion yen in June, the Ministry of Finance said today.
U.S. Labor Productivity Climbs
Labor productivity in the U.S. rose more than anticipated in the second quarter, according to a report released by the U.S. Bureau of Labor Statistics today.
The report said nonfarm business sector labor productivity increased 1.6% in the second quarter following a revised 0.5% drop in the first quarter.
The increase in productivity reflects increases of 2.0% in output and 0.4% in hours worked.
Unit labor costs in nonfarm businesses increased 1.7% in the second quarter, while hourly compensation increased 3.3%.
PTC to Acquire Servigistics
Parametric Technology Corp. agreed to acquire Servigistics, Inc., developer of an innovative suite of service lifecycle management software solutions, for approximately $220 million in cash. The transaction is expected to be completed in September.
Computer Sciences Corporation
), the information technology provider said first quarter revenues declined 1.9% to $3.96 billion from the earlier year period. Net income attributable to common shareholders plunged to $40 million or 26 cents per diluted share, from $183 million or $1.17 per share in the prior-year quarter.
Dish Network Corp.
), the pay-television provider said second quarter revenue fell to $3.57 billion compared with $3.59 billion for the corresponding period in 2011. Net income attributable to the company declined 32.6% to $226 million or 50 cents per diluted share, from $335 million or 75 cents per share in the prior-year quarter.
) the retailer said second quarter net sales advanced 3% from a year ago to $6.12 billion. Net income rose to $279 million or 67 cents per diluted share from $241 million or 55 cents per share in the year-ago quarter.
Ralph Lauren Corp.
), the fashion retailer reported first-quarter net revenues increased 4% to $1.6 billion from $1.5 billion in the comparable period last year. Net income in the quarter declined to $193 million or $2.03 per diluted share compared to net income of $184 million or $1.90 per diluted share, for the first quarter of fiscal 2012.