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Reports US

US stock market daily report (September 12, 2013, Thursday)

September 13, 2013, Friday, 05:18 GMT | 00:18 EST | 08:48 IST | 11:18 SGT
Contributed by Millennium Traders


Dell Inc. (DELL-Nasdaq) shareholders on Thursday by an unspecified majority of votes, approved a proposal led by founder Michael Dell to take the iconic computer company private in its attempts to navigate a fast-changing technology market. Dell said it was necessary to go private because executing the changes "would require at least three to five years to reach fruition and would require additional investments that could weaken earnings for two or more years and increase pressure on the company's stock price." The deal, valued at nearly $25 billion, includes Dell shareholders to receive $13.75 in cash for each share of Dell common stock, plus a special cash dividend of 13 cents per share. Michael Dell said, "I am pleased with this outcome and am energized to continue building Dell into the industry's leading provider of scalable, end-to-end technology solutions."

Lululemon Athletica Shares Falling
Lululemon Athletica Inc. (LULU-Nasdaq) shares were lower by 6% into late morning trading Thursday after reporting Q2 profit fell to $56.5 million from $57.2 million in same period of 2012. Net revenue rose to $344.5 million from $282.6 million in same period of 2012. Lululemon same-store sales rose 8%. The retailer cut its 2013 per-share earnings forecast to a range of $1.94 to $1.97.

Men's Wearhouse Shares Off by 14%
The Men's Wearhouse, Inc. (MW-NYSE) shares were hammered during pre-market trading session Thursday, down by 14%. Into early afternoon trading, shares were off by 12%. During after-hours session on Wednesday, the retailer reported Q2 profit fell 28%. The company also reported they will be cutting adjusted per-share earnings guidance by 30 cents to a range of $2.40 to $2.50 per share. CEO Doug Ewert said on a conference call, “We believe the number 13 in 2013 is causing a small but meaningful number of brides to avoid getting married this year. It’s reassuring to see a significant increase in advanced reservation for 2014 weddings, though.”

New Jobless Claims Fall
U.S. Labor Department on Thursday announced the number of new applications for U.S. jobless benefits fell below 300,000 for the first time since 2006. The improvement however, was attributed to the surprising plunge of computer-related delays and not that of a sudden improvement in the labor market. Initial claims for week ending September 7 fell by 31,000 to 292,000. Due to the Labor Day holiday, initial claims are likely to rise in the following week. Average of new claims over August fell by 7,500 to 321,250 for the lowest level since October 2007. For week ending August 31, continuing claims decreased by 73,000 to 2.87 million.

Prices Paid for Imported Goods Unchanged
U.S. Labor Department reported on Thursday, prices paid for imported goods remained unchanged during August. Import prices excluding fuel fell by 0.2% in August while fuel imports rose 0.5%, food prices climbed higher by 0.3% however, prices fell for consumer goods, imported autos and industrial supplies. Import prices have fallen by 0.4% over the past 12 months, a sign that inflationary pressure in the U.S. remains low. Price of U.S. made goods exported to other nations declined by 0.5% during August.