10:30AM New York – U.S. stocks edged lower after the release of final read on the economic growth, existing home sales in May and jobless claims data.

U.S. stocks fell in the morning trading after dollar declined and crude oil future prices increased. Analysts lowered earnings estimates for Merrill Lynch and Citigroup. After the release of earnings Research in Motion and Nike fall.

The U.S. dollar dropped to 1.5724 and gold rose $27.80 to $910.10 per ounce as rising inflation and negative interest rates in the U.S. draw investors to commodities. Crude oil futures for the front month rose $3.34 to $137.89.

The Fed kept its short term rate at 2.0% and hinted that inflationary pressures in the economy are building but risk to the slow down in the economy are receding.

Yield on 10-year bond was at 4.07% and for 30-year bond at 4.63%.

GDP Estimate Revised Higher

Final read on the first quarter economic growth was increased to 1% from the preliminary estimate of 0.9% increase. The GDP rose at 0.6% in the fourth quarter of last year and at 2.5% from a year ago.

The economy grew at a rate of 2.2% in 2007 and at 2.9% in 2006. The slowest annual economic growth in the last ten years was registered in 2001 of 0.8% and economy shrank at a rate of 0.2% in 1991, the only decline in the last twenty years.

Existing Home Sales Increase

Existing home sales in May rose 2% to 4.99 million as sellers lower prices, however home market may take long time to recover as a significant imbalance exist between the annual demand and inventories of homes for sale. The inventory of unsold homes in the month fell 1.4% to 4.49 million from 4.55 million in April. The Commerce Department, a day ago said the new home sales in May rose to 512,000, only second lowest monthly sale in the last sixteen years.

Earnings Review

Bed Bath & Beyond Inc, home furnishings and appliance retailer said first quarter sales rose 6.1% to $1.65 billion from $1.55 billion a year ago. Net income in the quarter tumbled 27% to $76.8 million or 30 cents per diluted share compared to net income of $104.6 million or 38 cents per share, a year ago.

Same-store sales open at least a year rose 0.8%.

Bed Bath & Beyond Inc (BBBY: chart) in the last one year traded as high as $37.61 in June 2007 and as low as $24.49 in January 2008. Based on the yesterday’s closing price the company has a market cap of $7.42 billion. Bed Bath stock rose $1.49 to $30.07.

CKE Restaurants, Inc, fast-food chain operator said first quarter revenues fell 3% to $466.2 million from $481.8 million a year ago. Net income in the quarter increased 8% to $16.6 million or 31 cents per diluted share compared to net income of $15.4 million or 23 cents per share, a year ago.

Same-store sales or sales at locations open at least a year, rose 1.8% system-wide. By brand, same-store sales rose 3.9% at Carl's Jr. and fell 0.6% at Hardee's.

CKE Restaurants, Inc (CKR: chart) in the last one year traded as high as $21.67 in June 2007 and as low as $9.60 in May 2008. Based on the yesterday’s closing price the company has a market cap of $644.11 million.

Herman Miller, Inc, Furniture maker said fourth quarter revenues jumped 7% to $519.1 million from $485.3 million a year ago. Net income in the quarter rose 25% to $39.5 million or 71 cents per diluted share compared to net income of $31.7 million or 50 cents per share, a year ago.

North American sales rose 6% and the rest of the world sales increased 23%. For the year, profit climbed 18% to $152.3 million, or $2.56 per share, from $129.1 million, or $1.98 per share, in the prior year. Revenue rose 5% to $2.01 billion from $1.92 billion in 2007.

Herman Miller, Inc (MLHR: chart) in the last one year traded as high as $35.15 in June 2007 and as low as $22.25 in April 2008. Based on the yesterday’s closing price the company has a market cap of $1.35 billion. Herman Miller stock rose 51 cents to $24.50.