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Wall Street headed higher after upbeat earnings reports
Wednesday April 16, 9:11 am ET

Stocks futures rise after earnings from Intel, JPMorgan, Coca-Cola ease profit anxiety

NEW YORK -- Wall Street appeared headed for a higher opening Wednesday, led by robust first-quarter results from JPMorgan Chase & Co. and two other Dow Jones industrial components.
Investors, anxious about the health of corporate balance sheets and their impact on the economy, were relieved after JPMorgan, Coca-Cola Co., and Intel Corp. all topped projections. The three companies are among dozens of others that will post quarterly results Wednesday.

The battered financial sector was expected to advance after JPMorgan reported profit fell 50 percent because of tight credit markets, but still beat analysts' expectations. The nation's third-biggest bank, which is in the process of acquiring ailing Bear Stearns Cos., reported $2.6 billion of write-downs tied to its loan portfolio.

In addition to earnings reports, Wall Street weighed sluggish economic reports on inflation and housing. The Federal Reserve will also release its Beige Book assessment of regional economies later in the day.

Dow Jones industrial average futures added 79, or 0.58 percent, to 12,433. Standard & Poor's 500 index futures rose 10.30, or 0.77 percent, to 1,346.20. Nasdaq 100 index futures were up 26.00, or 1.45 percent, to 1,822.75.

Bond prices fell as stocks looked more attractive. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.62 percent from 3.57 percent late Tuesday.

Oil prices -- which crossed $114 for the first time on Tuesday -- extended their advance ahead of a report that is expected to indicate a modest rise in crude stockpiles. Light, sweet crude added 13 cents to $113.92 a barrel in premarket electronic trading on the New York Mercantile Exchange.

Gold prices rose, and the dollar was mostly lower against other major currencies.

In corporate news, Dow component Intel late Tuesday reported a first-quarter profit that matched analysts' expectations and sales that topped projections. Intel also issued a forecast that kept profit-margin predictions for 2008 intact, and expects to protect its earnings despite falling memory-chip prices and fears about a slowdown in tech spending.

Meanwhile, Coca-Cola reported first-quarter profit rose 19 percent on a 21 percent increase in sales. Results from the Dow component easily surpassed Wall Street expectations.

Government data showed that consumer inflation pushed higher last month as increases in energy, food and airline tickets overwhelmed the biggest drop in clothing prices in nearly a decade. The Labor Department reported consumer prices rose 0.3 percent in March after being unchanged in February.

Core inflation, which excludes food and energy, posted a 0.2 percent rise. Both the overall increase and the rise in core prices were in line with analysts' expectations.

Meanwhile, home construction plummeted during March to its lowest level in 17 years, the government said in a report signaling the housing sector will continue slumping. Housing starts decreased 11.9 percent to a seasonally adjusted 947,000 annual rate, after falling 0.7 percent in February to 1.075 million, according to the Commerce Department.

Overseas, Japan's Nikkei stock average rose 1.20 percent. Britain's FTSE 100 rose 0.92 percent, Germany's DAX index was up 0.65 percent, and France's CAC-40 added 1.18 percent.

Coca-Cola profit climbs 19 pct in 1st-qtr as sales soar
Wednesday April 16, 8:03 am ET
Soaring sales help send Coca-Cola's profit up 19 pct in 1st-qtr, beating Wall Street estimates

ATLANTA -- The Coca-Cola Co. said Wednesday acquisitions, growth in its key carbonated beverage brands and success overseas helped boost its first-quarter profit by 19 percent on a 21 percent increase in sales. The results beat Wall Street expectations, and its shares rose more than 2 percent in premarket trading.
The world's biggest beverage company said its profit was $1.50 billion, or 64 cents a share, in the three-month period ending March 28. That compared to a profit of $1.26 billion, or 54 cents a share, a year earlier.

Excluding a one-time charge of 3 cents a share related to restructuring charges and asset write-downs, Atlanta-based Coca-Cola said it earned $1.58 billion, or 67 cents a share, in the quarter.

Analysts polled by Thomson Financial were expecting earnings of 63 cents a share in the quarter. Analysts generally exclude one-time items from their estimates.

Revenue rose to $7.38 billion from $6.10 billion a year earlier.

Its shares rose $1.54, or 2.5 percent, to $62.48 in premarket trading.

Coca-Cola said its revenue growth was helped by an increase in concentrate sales, structural changes primarily related to bottler acquisitions, currency benefits and better pricing and mix.

"We have begun 2008 successfully, with another solid quarter consistent with our overriding objective of creating long-term sustainable growth," Chief Executive Officer Neville Isdell said in a statement. "Our system's success in executing our strategies -- from marketing and beverage innovation to effective execution at the point of sale -- continues to drive our growth."

Worldwide unit case volume was up 6 percent for the first quarter, helped by acquisitions, and international unit case volume was up 7 percent.

The company saw strong unit case volume growth in China, India, Brazil, Turkey, Russia, Eastern Europe and the Philippines. However, in its key North America unit volume was even, due in part to the challenges in the U.S. economy, Coca-Cola said.

The company said key brands drove its results, including Coca-Cola, Fanta and Sprite.

The results were reported ahead of Coca-Cola's annual meeting later Wednesday in Wilmington, Del.

JPMorgan profits drop 50 percent

JPMorgan Chase reported a 50 percent drop in quarterly profits, to $2.37 billion, beating expectations. Revenue dropped 11 percent. The bank wrote down $2.6 billion from the value of its loan portfolio and added $5.1 billion to its credit reserves. Investors seemed pleased with the results. JPMorgan said it was hit by a slumping job market, which left customers unable to pay credit-card debt and other loans. Separately, The Wall Street Journal reported that Merrill Lynch will take another $6 billion to $8 billion in asset writedowns this quarter, which would push it to its third straight quarterly loss.

Intel earnings ease tech concerns

Intel, the world's top computer chip maker, reported a 12 percent drop in quarterly profit, to $1.44 billion, roughly in line with estimates. But it issued an optimistic outlook for 2008, affirming its profit-margin targets for the year. The expectations for "healthy demand" in its core computer and server chip business reassured investors worried about the economic downturn severely crimping demand in the tech sector. The results are "encouraging," especially for North America and Europe, said analyst David Wu at Global Crown Capital. "Those markets appear pretty good for Intel. And what's good for Intel is good for PCs.

France Telecom weighs $54 billion aquisition

France Telecom is considering a $54 billion bid for TeliaSonera, Sweden's largest telecommunications company, France's Le Figaro reported. France owns 27 percent of France Telecom and reportedly backs the deal; Sweden owns 37 percent of Telia and Finland 13.7 percent. The acquisition would push France Telecom ahead of Deutsche Telekom, but not Spain's Telefonica, in market value, and give it access to Nordic and Turkish markets. The deal's "lack of geographical overlap" should ease antitrust concerns, said Dexia analyst Roby Goyens. But "that's perhaps also one of the weaker points -- in terms of potential synergies," he added.

China`s GDP growth tops 10%, inflation near 11-year high

Beijing, April 16: China's economy expanded 10.6 per cent in the first quarter, underlining the strength of the nation's expansion as a slump in the us drags down global growth.

Gross Domestic Product rose more than the 10.4 per cent estimate of economists surveyed after gaining 11.2 per cent in the previous three months.

Consumer prices rose 8.3 per cent in March, close to the fastest pace in 11 years and maintaining pressure for the Yuan to keep rising to ease import costs, today's figures showed.

China, the biggest contributor to world growth, is trying to prevent rising food prices from stoking social instability while avoiding measures that may trigger a bigger slowdown.

Investment and consumption sustained the economy as the worst snowstorms in 50 years closed factories, destroyed crops and delayed shipments and US demand for exports weakened.

Factory and property spending in urban areas grew 25.9 per cent in the first three months from a year earlier after a 24.3 per cent increase in January and February combined. Retail sales climbed 21.5 per cent last month, the fastest pace since at least 1999.

China will report a 9.3 per cent expansion this year as the world economy slows because of the biggest financial crisis in the US since the great depression, the International Monetary Fund forecast.

India imports 38% more crude in 2007-08

New Delhi, April 16: India's crude oil import bill has jumped by over 38 per cent to $61.16 billion in the first 11 months of 2007-08 fiscal on back of surge in global oil prices.

India imported 111.089 million tons of crude oil in April-February 07-08 for Rs 2,43,205.5 crore ($61.165 billion) as opposed to 101.213 million tons crude imported a year ago for Rs 2,00,321 crore ($44.124 billion), according to the latest data availabl e from the Petroleum Ministry here.

Besides crude, the nation also imported 20.19 million tons of products, mainly naphtha, LPG, kerosene and diesel, for Rs 54,180 crore ($13.4 billion). In April-February 2006-07, it had imported 15.77 million tons of products for Rs 37,632 crore ($8.527 b illion). The country's fuel consumption grew 6.4 per cent to 116.711 million tons in April-February 07-08 on back of a double digit growth in diesel demand at 43.27 million tons.

Of the crude imports, private refiners Reliance and Essar imported 34,644 million tons for Rs 72,381 crore ($18 billion). With a surplus in refining capacity, the country saw a 20.4 per cent rise in fuel exports at $36.16 million tons for Rs 95,906 crore ($23.86 billion). The mainstay exports was that of diesel at 13 million tons (Rs 36,200 crore) and naphtha 8.62 million tons (Rs 25,002 crore).

In the April-February period, India imported 5.77 million tons of naphtha for Rs 17,495 crore ($4.34 billion) and 2.5 million tons of LPG for Rs 7,479 crore ($1.86 billion).

Net imports (crude plus product imports minus exports) stood at 95.117 million tons for Rs 2,01,479.3 crore ($50.73 billion

Russia eyes USD 10 bn bilateral trade with India by 2010

Mumbai, April 16: Russia on Wednesday said that it was keen to enhance bilateral trade with India to USD 10 billion by 2010 from the current USD 5 billion.

"Russia-India trade turnover has increased by 40 per cent last year and amounted to USD 5-billion. We are very positive about increasing the turnover to USD 10-billion by 2010," Russian Federation's Ambassador, Vyacheslav I Trubnikov, said at a meeting Organised by the All India Association of Industries (AIAI) here.

Describing trade and economic interaction as the most important components of bilateral trade between the two countries, Trubnikov attributed the successful growth in trade to public-private partnership on both sides.

The governments of both the countries were working meticulously for creating a conducive environment for enhancing bilateral cooperation, he said.

The Indo-Russia Chamber of Commerce opened in February this year would help India build a strong business relationship with Russia.

Over the last decade, India and Russia focused on political co-operation and military and technical interactions, he said, adding that now Russia wanted to concentrate on other areas such as trade with India.

ICICI Bank doubles savings A/C minimum balance to Rs 10,000

New Delhi, April 16: The country`s largest private sector lender ICICI bank on Wednesday said it has doubled the minimum quarterly balance to be maintained in its savings accounts to Rs 10,000, as the infrastructure costs have increased with the expansion of service offerings for its customers.

The new minimum balance requirement, to be effective from July 1, would not be applicable to the salary, no-frills and senior citizen accounts, the bank`s executive director V Vaidyanathan said in Mumbai.

The salary and no-frills accounts require no minimum balance to be maintained, while minimum levels for senior citizen accounts remain unchanged at current levels, he added.

Vaidyanathan said that the bank has been maintaining the minimum balance at Rs 5,000 for over 10 years now and it was considered to be necessary to revise it in view of the rise in the number of services customers were being given.

"There has been a sharp increase in the number of customers, branches and ATMs, while the bank timings have also been increased... This required us to revise the minimum quarterly balance," Vaidyanathan said.

While a number of foreign banks present in the country already has a minimum quarterly balance of Rs 10,000 for savings accounts, some of the domestic private banks such as HDFC bank have it at Rs 5,000.

However, public sector banks have a much lower minimum balance, mostly ranging from Rs 500-1,000 per savings account.

When asked whether HDFC bank, the second largest private sector lender, would also follow ICICI bank in raising the minimum balance, a company spokesperson said, "there are no such plans at this moment."

Tatas get GSM spectrum in TN under dual technology

New Delhi, April16: Tata Teleservices on Wednesday became the second major CDMA operator, after Reliance Communications, to get GSM radio frequency under the dual technology along with other new telecom players.

Tata Teleservices has been given start up 4.4 MHZ GSM spectrum in Tamil Nadu along with five new telecom players, company officials said.

Tatas earlier claimed that the company have the first legitimate right to get GSM spectrum under dual technology ahead of Reliance Communications as they applied first after the policy of dual technology was made public.

However, the government considered Anil Ambani-led Reliance Communication's application for GSM spectrum ahead of others including Tata Teleservices.

Reliance Communications has already been given spectrum in all the circles making it first company to have both CDMA and GSM technologies for mobile services through out the country.

Tatas have applied for GSM spectrum for pan India and is hoping to get the frequency in rest of the circles as and when the Department of Telecom (DoT) allocates to other new players depending upon its availability.