12:55PM New York – U.S. benchmark indexes traded lower after the economic growth projections were revised lower. MasterCard dropped 4% after it reported a loss from a settlement with American Express.
The U.S. economic growth for the second quarter was estimated at annual rate of 1.9% and was revised lower as far back in 2005 according to the latest data release by the Commerce Department.
First quarter growth rate was lowered to 0.9% from 1% and economy shrank in the fourth quarter of 2007. The revised estimate in the quarter suggested a decline in rate of 0.2% from the previous estimate of rise of 0.6%. While the U.S. economy is not in recession officially, but the monthly job losses in the last six months suggest a worsening labor market and weakening economy.
) reported net income of $276 million, or $2.11 per diluted share, excluding a special item, and a net loss of $747 million, or $5.74 per diluted share, including the special item. The company took a one-time after-tax charge of $1.0 billion related to an antitrust litigation settlement with American Express.
The second largest payment processing company revenue in the quarter rose 25% to $1.2 billion and gross dollar volume processed increased 12.8% to $655 billion. Worldwide purchase volume in the quarter on a local currency basis increased 14% to $493 billion.
Exxon Mobil Corporation
, the world's largest publicly traded oil company reported second quarter revenues increased 40% to $138.1 billion from $98.4 billion a year ago. Net income in the quarter rose 14% to $11.68 billion or $2.22 per share compared to net income of $10.26 billion or $1.83 per share, a year ago.
Exxon Mobil Corporation (XOM
) in the last one year traded as high as $96.12 in October 2007 and as low as $77.55 in July 2008. Based on the yesterday’s closing price the company has a market cap of $430.83 billion.
CVS Caremark Corporation
, a provider of prescriptions and related healthcare services and a drug retailer reported second quarter revenues increased 2% to $21.1 billion from $20.7 billion a year ago. Net income in the quarter increased 7% to $774.8 million or 53 cents per share compared to net income of $723.6 million or 47 cents per share, a year ago.
CVS Caremark Corporation (CVS
) in the last one year traded as high as $44.29 in June 2008 and as low as $34.85 in July 2007. Based on the yesterday’s closing price the company has a market cap of $55.13 billion.
Asian Markets Review
The Nikkei 225 Index in Tokyo closed higher 9.02 or 0.07% to 13,376.81, Hang Seng index in Hong Kong increased 40.50 or 0.18% closed to 22,731.10. ASX 200 index in Australia increased 40.70 or 0.82% to close 4,977.40. The KL Composite index in Malaysia increased 3.15 or 0.27% closed to 1,163.09.
The Kospi Index in South Korea increased 16.97 or 1.08% to close at 1,594.67, SET index in Thailand closed higher 6.42 or 0.96% to 676.32 and JSE Index in Indonesia increased 25.82 or 1.13% to 2,304.51. The Sensex index in India increased 68.54 or 0.48% to 14,355.75.