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Market Update

U.S. Trade Deficit Widens, World Markets Focus on Domestic Earnings


Author: Nichole Harper
ticker.com
Last Update: 2:55 PM ET August 05 2015

2:55 PM New York City, New York S&P 500 and Tollbooth indexes extended gains in the session. Trade deficit widened in June and exports declined for the second month in a row. Private employers added fewer jobs in July. Media stocks declined after Disney lowered cable profit outlook.

Stocks on Wall Street traded higher after trade deficit widened and exports fell for the second month in a row.

U.S. trade deficit in June widened $2.9 billion to $43.8 billion from the revised $40.9 billion in May.

Exports in June slid $0.1 billion but imports jumped $2.8 billion compared to May, the Department of Commerce reported.

In addition, a private survey showed a decline in net new jobs added in July to 185,000 from the revised 229,000 in June, according to the data released by the ADP National Employment report.

On Wall Street, Tollbooth Strategy Index jumped 143.48 or 1.3% to 10,946.80.

S&P 500 index gained 11.23 or 0.5% to 2,104.56 and the Nasdaq Composite Index rose 54.16 or 1.1% to 5,159.81.

Crude oil in New York fell 22 cents to $45.52 a barrel and gold slid $7 to $1,083.70 an ounce.

U.S. Movers

Baxalta Inc, the biopharmaceutical company rejected an unsolicited takeover bid from Ireland-based pharmaceutical company Shire plc worth about $30 billion.

Baxalta noted that the same proposal was received privately from Shire on July 10.

Time Warner Inc (TWX) tumbled 7.7% or $6.65 to $81 after the media and entertainment company reported total revenues in the second-quarter ending in June climbed 8% to $6.79 billion form a year ago period.

Net income in the quarter surged 14.2% to $971 million or $1.16 per diluted share compared to $850 million or 95 cents from the same quarter last year.

Revenues in Turner segment jumped 3% to $2.83 billion and revenues in Home Box Office rose 1% to $1.44 billion while revenues in Warner Bros soared 15% to $3.30 billion.

The company confirmed adjusted earnings per share from continuing operations for the year between $4.60 and $4.70.

Walt Disney Co (DIS) declined 7.9% or $9.68 to $112.01 after the entertainment and media company reported total revenues in the third-quarter ending in June jumped 5% to $13.10 billion form a year ago period.

Net income in the quarter soared 10.2% to $2.48 billion or $1.45 per diluted share compared to $2.25 billion or $1.28 from the same quarter last year.

Disney said revenues in media networks segment in the quarter climbed 5% to $5.8 billion and revenues studio entertainment division surged 13% to $2. Revenues in parks and resorts jumped 4% to $4.1 billion while revenues in consumer products segment soared 6% to $954 million.

European Markets

Seasonally adjusted retail trade in June fell 0.6% compared to May in euro area and 0.5% in the wider region EU28.

May retail trade increased 0.1% in the euro area and 0.2% in the EU28, according to Eurostat, the statistics office of the euro zone.

In London trading, FTSE 100 index gained 47.57 or 0.7% to 6,734.48 and in Frankfurt the DAX index increased 160.76 or 1.4% to 11,616.31.

In Paris, CAC 40 index jumped 80.35 or 1.6% to 5,192.

Beiersdorf AG jumped 3.1% to 82.50 after the Germany-based personal and cosmetic products maker reported total revenues in the first-half ending in June climbed 7.3% to 3.40 billion or 3.17 billion in a year ago period.

Net profit in the period soared 13.6% from a year ago to 351 million compared to 309 billion.

The Nivea skin care products maker said sales in Eastern Europe region jumped 6.4% but sales in Western Europe dropped 1.4%.

Beiersdorf forecasted sales for the year in the consumer business segment to increase between 3% and 5%.

Societe Generale SA surged 8.9% to 48.63 after the France-based bank reported interest income in the first-half ending in June jumped 4.1% to 12.52 billion or 12.03 billion in a year ago period.

Net profit in the period surged 77.6% from a year ago to 2.22 billion compared to 1.25 billion and diluted earnings per share jumped to 2.54 from 1.37.

UniCredit SpA soared 6.4% to 24.29 after the Italy-based financial services provider reported total group revenues in the first-half ending in June gained 0.9% to 11.48 billion or 11.39 billion in a year ago period.

Net profit in the period declined 7.3% from a year ago to 1.03 billion compared to 1.12 billion.

The bank set aside 913 million to cover loans losses, less than from 1 billion in a year ago period and improved assets performance after creating a division to reduce the non-core assets.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc