Weaker-than-expected reports leaves Wall Street feeling mixed

The daily Dow

Some weaker-than-expected economic news left investors feeling slightly mixed Tuesday. The Dow Jones industrial average dropped 5.77 points to close at 12,080.73. The Nasdaq composite index, on the other hand, gained 2.94 points to close at 2,366.71, and the S&P 500 gained a tenth of a point to close at 1,377.94.

The Conference Board reported that its consumer confidence index dropped slightly in October to 105.4 from 105.9 in September. Analysts had expected the index to rise. Wal-Mart also reported weak sales numbers.

Most South Florida major stocks dropped Tuesday. The rule: Ryder System dropped $2.12 a share to close at $52.65; Citrix Systems dropped 71 cents a share to close at $29.53 and Carnival Corp. dropped 47 cents a share to close at $48.82.

The exceptions: FPL Group rose 23 cents a share to $51, and BankAtlantic picked up 14 cents a share to close the day at $13.10. During the day, Moody’s Investor Services announced that it was upgrading the outlook for FPL to stable from negative. Moody’s cited the death of FPL’s proposed merger with Constellation Energy.

Royal Caribbean sees profit fall

MIAMI — Royal Caribbean Cruises Ltd., the world's second-largest cruise company, said Tuesday its third-quarter profit dipped 8 percent from the same period a year ago.

Profit fell to $345.4 million, or $1.63 a share, from $374.7 million, or $1.64 a share, during the same period a year ago. The year-agoe numbers included  a one-time gain of $44.2 million, or 19 cents a share, from Royal Caribbean’s investment in First Choice Holidays Plc.

Analysts polled by Thomson Financial expected earnings of $1.59 a share on sales of $1.63 billion.

Royal Caribbean also announced today that Chief Financial Officer Luis Leon will be retiring, to be succeeded by Brian Rice, who is executive vice president of revenue performance.

Consumer confidence down nationally but surging in Florida

Separate reports released Tuesday showed consumer confidence flagging slightly nationally while surging significantly in Florida thanks in large measure to lower gasoline prices.

The New York-based Conference Board’s consumer confidence index, which increased in September to 105.9, edged down in October to 105.4. Meanwhile, the University of Florida’s consumer confidence index for the state rose 7 points to 90, its highest reading since March.

"October's dip in confidence was prompted by consumers' mixed assessment of present-day business conditions and a less favorable view of the job market," says Lynn Franco, director of The Conference Board’s consumer research center. "Consumers' short-term expectations posted a slight improvement, but the outlook for the labor market remains mixed. Overall, this month's readings continue to suggest a moderate pace of economic growth and more of the same for the first few months of 2007."

Florida survey Director Chris McCarty said lower gas prices and a calm hurricane season helped boost the state’s consumers, especially those with low incomes.

“Gas prices across the US are nearly 40 cents lower than this time a year ago, and in the lower Atlantic states they are 53 cents lower. This, coupled with the absence of hurricanes here in Florida and solid employment numbers, provides some much needed relief for low-income consumers."

McCarty questioned how long this period of good feelings might last among consumers, considering the high debt load many carry, stagnant wages and the weakening housing market.

“Frankly I am puzzled that the decline in housing has not significantly affected consumers here in Florida yet,” said McCarty.

 

State regulators approve steep cut in workers comp insurance rates

TALLAHASSEE — It’s official. Workers comp insurance rates will decline for the fourth straight year in 2007.

The Florida Office of Insurance Regulation approved NCCI’s rate filing made last week that cut employer premiums an average of 15.7 percent. Rates have gone down every year since 2003, the year the legislature overhauled the state’s workers comp code.

The lower rates, which go into effect Jan. 1, will save employers about $400 million a year.

Premiums for office and clerical workers will see the largest percentage decline at 16.2 percent, followed by contracting at 16 percent. Manufacturing premiums dropped by 15.4 percent, goods and services by 15.3 percent and miscellaneous by 15.7 percent.

NCCI originally requested a 13.3 percent cut in rates but regulators wanted the bigger reduction. The two sides were close enough that NCCI, the Boca Raton firm that files workers comp rates on behalf of all carriers in the state, agreed to the change last week.

 

FPL Group sees profit jump on strength of Energy subsidiary

JUNO BEACH — FPL Group Monday reported third quarter profit of $524 million, or $1.32 a share, on revenue of $4.7 billion, compared with profit of $339 million, or 87 cents a share, on revenue of $3.5 billion for the same period a year ago.

Excluding adjustments for hedges and costs related to its recently aborted merger with Constellation Energy, FPL Group’s quarterly earnings would have been $457 million, or $1.15 a share, compared with $395 million, or $1.01 a share, a year ago.

“FPL Group had very healthy third quarter results, once again driven by the strength of FPL Energy,” said Lew Hay, chairman, president and chief executive officer of FPL Group. “FPL Group’s adjusted results increased approximately 14 percent, with FPL Energy’s adjusted results increasing 40 percent over the prior year quarter.”

Florida Power & Light Co., FPL Group's principal subsidiary, reported third quarter profit of $328 million, or 82 cents a share, compared to $311 million or 80 cents a share a year ago.

FPL Energy, the competitive energy subsidiary of FPL Group, reported adjusted third quarter 2006 profit of $141 million, or 35 cents a share, compared to $100 million, or 25 cents a share, in 2005.

Hay said the strong performance of FPL Energy puts the company in position to hit the high end of its projected earnings range of $2.80 to $2.90 a share for the year. For the 2007, Hay project a range of $3.35 to $3.45 a share, and for 2008, a range of $3.60 to $3.80 a share.

 

State orders insurer to cut rates

TALLAHASSEE — The Florida Office of Insurance Regulation has ordered Florida Peninsula Insurance Co. to lower its rates for homeowners insurance to no more than 25 percent above those charged by Citizens Property Insurance Corp.

Florida Peninsula primarily operates in South Florida and the Keys, taking wind-only policies from Citizens. In April, the company put into effect a 91 percent rate hike without the prior approval of the OIR. Wednesday's order requires the company to refund any excess premium it collected from customers since June 15. The company also must submit to the state a revised business plan.

NCCI agrees to bigger cut in workers compensation premiums

BOCA RATON — NCCI has agreed to reduce workers comp rates by an average of 15.7 percent as recommended by the Office of Insurance Regulation, said Lori Lovgren, the firm's state relations executive, on Wednesday.

Boca Raton-based NCCI is a nonprofit group that files proposed workers compensation insurance rates on behalf of all carriers in Florida. Last month, NCCI originally filed for a 13.3 percent reduction on overall rates, citing fewer claims and less cost per claim.

Insurance Commissioner Kevin McCarty ordered NCCI to amend the filing, citing disagreements with the way it projected losses and with “trend factors” such as changes in wages, losses and claims frequency. The 15.7 percent reduction in rates will save employers more than $400 million. It marks the fourth straight year rates have gone down.

Corporate news lifts Wall Street; investors avoid pre-Fed jitters

The daily Dow

Forget the usual jitters that inevitably hit investors just before the Federal Open Market Committee gathers to contemplate things economic and decide thumbs up or down on another interest rate hike. Instead they took a bullish cue from the corporate world Monday and drove the Dow upward into new territory.

The Dow Jones industrial Average finished at 12,166.91, up 114.54 points. The Nasdaq composite index finished at 2,355.56, up 13.26, while the S&P closed at 1,377.02, up 8.42 points.

Wal-Mart announced intentions of cutting back on capital expenditures to improve profitability. That drove the retailer's stock to $51.17, a 52-week high. The Fed meets Tuesday and Wednesday.

Among major South Florida stocks, Citrix Systems gained $1.23 a share to close at $29.65, recovering some of the ground lost last week to a disappointing earnings report. Royal Caribbean picked up 45 cents a share to close at $41.30. On the dark side, Lennar dropped 73 cents a share to close at $45.39. Ryder System closed at $51.70, down 84 cents a share.

Founder of billion-dollar viaticals scam pleads guilty, faces prison

Peter Lombardi, a co-founder of Mutual Benefits Corp., has pleaded guilty and agreed to pay nearly $1 billion in restitution. According to the U.S. Attorney's Office in Miami, Mutual Benefits scammed that much from investors between 1994 and 2004.

Markets end the trading day mixed; Dow drops but stays above 12,000

Wasn’t the best of days on Wall Street, nor the worst. Blah might be a good word.

The Dow Jones industrial average finished Friday’s trading at 12.002.37, down 9.36 points. The Nasdaq composite index closed at 2,342.30, up 1.36 points, while the S&P 500 closed at 1,368.60, up 1.64 points.

The mixed results reflect mixed economic news during the week. There reports, including one on manufacturing from the Federal Reserve of Philadelphia, and some disappointing earnings news pointing to an economic slowdown. On the other hand, the producer price index and consumer price index provided some good news on inflation. And there were some sterling results from the likes of IBM.

Most major South Florida stocks ended the day picking up at least a few cents a share. Office Depot gained 78 cents a share to close at $42.74, while FPL Group gained 43 cents a share to close at $47.90 and Citrix Systems, which was pounded Thursday, picked up 27 cents a share to close at $28.42.

The few losers didn’t lose much. Ryder System dropped 7 cents a share to close at $52.54; AutoNation dropped 4 cents to $20.70 a share and Royal Caribbean lost a penny to close at $40.85.

 

Jobless rates for most of Florida remain near historical lows

September unemployment rates for most of Florida continued to hover near historic lows, according to data released Friday by the Florida Agency for Workforce Innovation.

Statewide unemployment dropped to 3.2 percent from 3.3 percent in August and 3.5 percent a year ago.  The rates are seasonally adjusted.

"It's not a record, but it's close," said agency spokesman Warren May.

By comparison the national rate for September was 4.6 percent.

Broward County had the lowest rate in South Florida at 3.1 percent, down from 3.2 percent in August and 3.5 percent a year ago. County numbers are not seasonally adjusted, making year-over-year comparisons the most telling.

Rates in Palm Beach County also fell, to 3.7 percent from 3.9 percent in August and 4.1 percent a year ago.

However, in Miami-Dade rates actually rose to 4.5 percent in September from 4.3 percent in August and 4.1 percent a year ago. Manufacturing lost 1,900 jobs, while retail and information — wired telecommunications companies — dropped 1,000 jobs each.

Florida added 230,500 jobs since September 2005, an increase of 2.9 percent. Business and professional services and leisure and hospitality accounted for nearly 42 percent of the new jobs. Construction continued to add jobs, though at more sustainable rate than the 18 percent posted last year.

Manufacturing was the only sector to lose jobs.

The Miami-Fort Lauderdale metropolitan statistical area, which includes Palm Beach County, led the state, with 54,200 new jobs year over year. Nearly half of those jobs were in Broward.

Dow closes above 12,000 for the first time on positive earnings

A slew of positive earnings reports from the likes of Apple, Coca-Cola and eBay helped push the Dow past the 12,000 mark despite some less positive news about the economy. The Dow Jones industrial average closed Thursday at 12,011.73, up 19.05 points, while the Nasdaq composite index closed at 2,340.94, up 3.79 points. The S&P 500 finished 1,366.96, a gain of a point for the day.

The Federal Reserve Bank of Philadelphia reported a decline in manufacturing activity in October, while analysts had expected a gain. Oil prices finished at $58.50 a barrel, up 85 cents.

Among major South Florida stocks, Citrix Systems lost $6.91 a share, nearly one-fifth of their value, to close at $28.15. Citrix issued disappointing earnings late Wednesday. Royal Caribbean dropped 35 cents to close at $40.86. South Florida winners included Ryder System, up 71 cents to close at $52.61, while Lennar Corp. gained 19 cents to close at $46.07.

Atlantic reports dramatic drop in profits for the third quarter

FORT LAUDERDALE — BankAtlantic Bancorp Inc. Thursday reported third quarter profit of $2.3 million, or 4 cents a share, compared to profit of $16.3 million, or 26 cents a share, for the same period a year ago.

For the nine months, profit totaled $17.2 million, or 27 cents a share, compared to $60.7 million, or 95 cents a share, for the same period a year ago.

The results reflect a $4.8 million loss at Ryan Beck, BankAtlantic’s securities subsidiary, slower growth of low-cost deposits, flat net interest income and costs from expanding its branch network.

“Despite the quarter’s results, we remain committed to our banking strategy,” said chairman and CEO Alan B. Levan.

BankAtlantic shares were down 60 cents to $12.62 in early afternoon trading.

State rejects Nationwide rate hike; company says it's reviewing options

TALLAHASSEE — Florida Insurance Commissioner Kevin McCarty said Wednesday that he has issued a notice of intent to deny Nationwide Insurance Co.’s request to increase homeowners insurance rates by a statewide average of 71.5 percent.

Nationwide spokesman Joe Case said the company is reviewing its options.

Nationwide filed the new rates on July 6 to become effective for new and renewal business Nov. 10.  The primary reason the company cited for the increase was higher reinsurance costs The Office of Insurance Regulation found there was not sufficient support in the filing to justify the request.
    
“Many Floridians are being forced to make painful economic choices to deal with rising insurance premiums,” McCarty said.  “In such an environment insurers must redouble efforts to fully and completely support all requests for increased rates, and that has absolutely not been done in this case.  The filing contains proposed hurricane rate hikes in excess of 300 and 400 percent for some territories which are entirely unsustainable.”

Nationwide has over 253,000 policies statewide in Florida, including 29,177 in Palm Beach County and 13,459 in Broward County.

"We are concerned with the denial of the rate request given the risks and challenges that are very real in the Florida insurance market," Case said. "The rate request reflects the cost of doing business in Florida. That cost includes the rising price of reinsurance, labor and re-building materials. Just like every individual Floridian, insurance companies also need to be prepared when catastrophe strikes.

"Nationwide will continue to evaluate its business strategy with the goal of maintaining long-term viability for our Florida customers."

Stocks finish mixed; Dow surges past 12,000 mark before retreating

The daily Dow

The Dow Jones industrial average charged past 12,000 during the opening minutes of trading Wednesday, thanks in large measure to IBM's excellent earnings report Tuesday and positive news on the inflation front from the Labor Department before the start of trading. The mark couldn't be sustained, and the index settled at 11,992.68, up 42.66 for the day. The Nasdaq composite index closed at 2,337.15, down 7.80 points, while the S&P 500 finished at 1,365.96, up 1.91 points.

The Labor Department reported Wednesday morning that the consumer price index dropped .5 percent in September, largely because of falling oil prices. The Commerce Department reported that housing starts rose 5.9 percent in September, the first increase since May, but building permits dropped 6.3 percent.

Among major South Florida stocks, FPL Group picked up 79 cents to close at $47.77 a share, while Carnival Corp. gained 60 cents to close at $48.14 a share.

Lennar Corp. dropped 63 cents a share to close at $45.88. Citrix Systems, which reported third quarter earnings late Wednesday afternoon, was flat during regular trading at $35.06, but was falling more than $4 in after-hours trading.

Citrix posts $47 million profit

FORT LAUDERDALE — Citrix System Inc. Wednesday reported third quarter profit of $47 million, or 25 cents a share, on revenue of $278 million compared with profit of $41 million, or 23 cents a share, on revenue of $227 million for the same period a year ago.

For the nine months, Citrix recorded profit of $138 million, or 73 cents a share, on revenue of $813 million compared with profit of $107 million, or 61 cents a share, on revenue of $640 million.

CEO Mark Templeton said the results reflect strong performance by the company’s portfolio of new products and demand for Citrix’s established wares. Citrix makes computer network access systems. Citrix shares finished regular trading flat at $35.06 but had dropped more than $4 during after-hours trading.

In the third quarter of fiscal 2006, Citrix achieved revenue of $278 million, compared to $227 million in the third quarter of fiscal 2005, representing 22 percent revenue growth.

The company expects revenue to be in the range of $1.12 billion to $1.13 billion, compared to $909 million in 2005. Earnings are expected to be in the range of $1 to $1.01 per share.

 

Stocks fall on producer price report

The daily Dow

Forget Dow 12,000, at least for this day. A higher-than-expected increase in the producer price index, released Tuesday morning by the Labor Department, pushed stocks down all day. The Dow Jones industrial average closed at 11,950.02, down 30.58 points. The Dow fell as low as 11,887 before rallying in late afternoon trading. The Nasdaq composite index fell 18.98 points to close at 2,344.95, while the S&P 500 fell 5.45 points to close at 1,363.60.

The core portion of the producer price index rose a higher-than-expected 0.6 percent in September, according to a Labor Department report released before the start of trading. That sparked concerns of inflation and what the consumer price index might show when it's released Wednesday. A report from the National Association of Home Builders indicating that the housing slump might be leveling off helped rally investors late in the day.

Most major South Florida stocks moved southward Tuesday, notably Ryder System, which dropped $2.08 a share to close at $52.64. Lennar Corp. lost 50 cents a share to close at $46.51, while Repubic Services lost 42 cents a share to close at $41.27.

Office Depot, which released a positive earnings report Tuesday morning, was the big winner, gaining 65 cents a share to close the day at $43.06. Other winners included Royal Caribbean, gaining 8 cents a share to close at $41.06, and FPL Group, which picked up a couple of pennies to close the day at $46.48 a share.

Regulators want bigger cut in workers comp insurance rates

TALLAHASSEE — Florida Insurance Commissioner Kevin McCarty today disapproved NCCI’s proposed 13.3 percent cut in workers comp insurance rates for next year, proposing instead a 15.7 percent reduction.

Boca Raton-based NCCI is a nonprofit group that files proposed workers compensation insurance rates on behalf of all carriers in Florida. Last month, NCCI filed for a 13.3 percent reduction on overall rates, citing fewer claims and less cost per claim.

McCarty ordered NCCI to amend the filing, citing disagreements with the way it projected losses and with “trend factors” such as changes in wages, losses and claims frequency. A 15.7 percent reduction in rates would save employers more than $400 million. Either way, it would mark the fourth straight year rates have gone down.

Lori Lovgren, NCCI’s state relations executive for Florida, said the organization has not decided whether it will go along with the order or contest it. NCCI has until Nov. 1 to decide.

"We're extremely close," Lovgren said, "closer than we usually are. "(The Office of Insurance Regulation) is slightly more optimistic than NCCI is."

Office Depot posts 3rd quarter profit

DELRAY BEACH — Office Depot Inc. Tuesday posted third quarter profit of $133 million, or 47 cents a share, on revenue of $3.9 billion compared with a loss of $48 million, or 15 cents a share, on revenue of about $3.5 billion.

North American sales increased 10 percent, while International sales increased 13 percent. Same-store sales in North America increased 3 percent for the quarter.

"We are extremely pleased with the record sales and earnings Office Depot achieved in the third quarter," said chairman and CEO Steve Odland. "The strategic initiatives that we have implemented have led to significant sales growth in each of our Divisions as well as lower operating expenses and expanded margins."

During the quarter, Office Depot continued to expand internationally, buying Papirius in Eastern Europe and AsiaEC in China.

Shares of the company were down 2 cents to $42.39 in early afternoon trading.

Chicago commodities exchanges to merge

The Chicago Mercantile exchange has agreed to buy the Chicago Board of Trade for $8 billion. Talks between the two have been going on for a year. The deal, which must be approved by shareholders, regulators and exchange members, is expected to close by the middle of 2007.

Despite low turnout at expo, interest is high in Florida's free hurricane inspection program

BOCA RATON — Perhaps it was the fine October weather. Or maybe scheduling the event toward the end of a thankfully quiet hurricane season had something to do with it.

Whatever the reason, Saturday’s turnout at the Fortify Florida expo on the Boca Raton campus of Florida Atlantic University produced the smallest crowd of the three state-sponsored events held to date. About 200 people showed up to learn how to prepare for hurricanes, ways to limit hurricane damage, save on insurance and what to do if a home does get smacked. Read more...

Markets continue winning streak; Dow industrial approaches 12,000

The daily Dow

The Dow Jones industrial average came within three points of hitting 12,000 Monday before retreating to close at 11,980.60, up 19.29 points. It was the third straight day the Dow has posted gains. The Nasdaq composite index picked up 6.55 points for the day to close at 2,363.84, while the S&P 500 gained 1,727.61, up 3.43.

Energy stocks led the way Monday as crude oil rose $1.37 a barrel to close at $59.94. Earning season goes into full swingTuesday, with reports due out from Office Depot, IBM and Motorola.

Most major South Florida stocks finished up for the day. Royal Caribbean gained 82 cents a share to close at $40.98. Pediatrix, which bought a New Jersey neonatal practice Monday, closed at $45.75, up 80 cents and Lennar Corp. picked up 70 cents a share to close at $47.01. Republic Services dropped 35 cents a share to close at $41.69, while BankAtlantic fell 31 cents a share to close at $13.29.

Investors end week with modest gains

The daily Dow

No bad news. No major disappointments. No huge gains, either. Optimistic economic outlooks from the Federal Reserve earlier in the week gave Wall Street enough momentum to end the week with modest gains. The Dow Jones industrial average added 12.81 points Friday to close at 11,960.51. The Nasdaq composite index picked up 11.11 points to close at 2,357.29, while the S&P 500 gained 2.79 points to close at 1,365.62.

One significant piece of business news: The Federal Communications Commission agreed to delay a vote on AT&T's proposed buyout of BellSouth until Nov. 3. The extra time gives commissioners more time to study AT&T's proposals and gain additional public comment. BellSouth shares dropped 15 cents to $44.13, while AT&T was unchanged at $33.60.

The upbeat mood lifted most of South Florida's major stocks. Carnival Corp. closed at $47.95, up 51 cents a share, while Royal Caribbean gained 46 cents a share to close at $40.16. Citrix Systems also picked up 33 cents a share to close at $34.89.

Homebuilder Lennar lost $1.41 a share to close at $46.31, while Pediatrix dropped 30 cents a share to close at $44.95.

 

Strong earnings reports, optimism from the Federal Reserve give a boost to Wall Street

The daily Dow

Good news on the earnings front and a generally optimistic view of the economy contained in the Federal Reserve's Beige Book provided Wall Street pretty fair Thursday. The Dow Jones industrial average zipped past the 11,900 mark for the first time, ending the day at 11,947.90, up 93.01 points. The Nasdaq composite index climbed 37.91 points to finish at 2, 346.18, while the S&P 500 gained 12.88 points to close at 1,362.83.

McDonald's Corp. Costco and Yum Brands were among the companies posting better-than-expected earnings Thursday.

Most major South Florida stocks enjoyed the day's trading as well. Citrix Systems gained 68 cents a share to close at $34.56; Royal Caribbean gained 56 cents a share to close at $49.70; Republic Services gained 50 cents a share to close at $41.86.

Ryder System dropped 13 cents a share to close at $53.94; Pediatrix dropped 12 cents a share to close at $45.15, while FPL Group lost a penny to end the day at $46.57.

Apollo Management to buy Jacuzzi Brands

WEST PALM BEACH — Apollo Management L.P., a private investment firm, said Thursday it has signed a deal to buy West Palm Beach-based Jacuzzi Brands Inc. for $1.25 billion, including assumption of $257 million in debt. Jacuzzi Brands shareholders will receive $12.50 a share in cash.

The deal, which is expected to close in the first quarter of 2007, must go through regulatory reviews and approval by Jacuzzi shareholders. The company’s board of directors already has approved the deal.

One of Apollo’s portfolio companies, Rexnord Corp. will get Jacuzzi’s Zurn brand, which makes a variety of plumbing fixtures. Jacuzzi Brands’ bath and spa businesses will become a stand-alone company, retaining the Jacuzzi name. Al Marini, president & CEO of Jacuzzi Brands, will continue to have responsibility for both the Zurn and Jacuzzi Bath businesses.

Rexnord Chairman George M. Sherman, a co-investor in the deal, will chair Jacuzzi.

Credit Suisse served as financial advisor to Apollo Management on this transaction.

Apollo has invested $16 billion in companies since its founding in 1990.

Crash, inflation concerns send stocks down

The daily Dow

A plane crash, a few disappointing earnings report and inflation concerns at the Fed combined to send stocks downward Wednesday. The Dow Jones industrial average finished at 11,852.27, down 15.04 points. The Dow dropped as much 73 points on news that a small plane crashed into a Manhattan apartment building. The Nasdaq composite index fell 7.16 points to 2,308.27, while the S&P dropped 3.47 points to 1,349.95.

Alcoa kicked off the October earnings season with a disappointing report after the close trading on Tuesday. The Federal Reserve's Open Market Committee released minutes from its September meeting showing that members remain "quite concerned" about inflation. However, signs of a cooling economy overrided those concerns as the committee voted to keep the Fed Funds rate at 5.25 percent. On the other hand, oil prices continued to drop, losing 93 cents a barrel to close at $57. 59.

Among South Florida major stocks, losers outnumbered winners 2 to 1. Ryder System dropped $1.23 a share to close at $54.07. Office Depot dropped 76 cents to close at $41.35 a share, while Lennar Corp. closed at $46.53 down 39 cents a share. Pediatrix was the big winner, picking up 76 cents a share to close at $45.27. Cirix System closed at $33.88 picked up 28 cents a share.

Wall Street cautious ahead of earnings season

The daily Dow

Investors continued on their bullish path Tuesday but did so cautiously. The Dow Jones industrial average gained 10.08 points to close at 11,867.17, while the Nasdaq composite index picked up 3.88 points to finish at 2,315.43. The S&P 500 gained 2.76 points to close the day at 1,353.42.

The start of the October earnings season had investors a bit concerned, wondering how corporate profits might shape up amid a slowing economy. On the positive side, crude oil continued to slide, dropping $1.44 a barrel to close at $58.52.

Major South Florida stocks were mixed; Ryder System picked up $1.89 a share to close at $55.30, while Office Depot share gained 69 cents to close at $42.11. On the other side of the coin, Citrix Systems dropped 71 cents to close at $33.60 and Carnival Corp. dropped 35 cents a share to close at $47.95.

Gas prices continue to fall, AAA survey finds

ORLANDO — Guzzle it while it lasts. The national average price of a gallon regular self-serve gasoline dropped 37.8 cents over the last month to $2.28, according to the AAA’s Fuel Gauge Report. That’s the cheapest gas has been since March 3, when the national average was $2.26 a gallon, according to AAA.

In Florida, the average price dropped 44.2 cents a gallon to $2.43, the AAA says.

AAA credited a drop in crude oil prices from $78 a barrel to about $60 as the reason for falling gas prices.

Don’t get used to paying less to fill ‘er up. AAA says it’s doubtful whether prices will continue to fall over an extended period as refineries start producing heating oil and winter-blend gasoline. Weather, political instabilities, terrorism and other factors also could come into play.

Fort Lauderdale stations had the cheapest gas among South Florida metro areas, with an average price of $2.371 per gallon of regular self-serve. Miami stations averaged $2.417 per gallon and Palm Beach County stations charged $2.426 per gallon.

Bankrupt Winn-Dixie say it has enough creditor votes to move forward on reorganization plan

Grocery chain Winn-Dixie Stores Inc. says it has sufficient support among its creditors to move forward on its bankruptcy reorganization plan. The plan divides creditors into 21 classes; some creditors will be paid be paid as little as 53 cents on the dollar owed, while others will be paid in full, depending on what class they're in. Public shareholders will be wiped out. Winn-Dixie filed for Chapter 11 bankrputcy reorganization in February 2005. The company will ask U.S. Bankruptcy Court Judge Jerry Funk to approve the plan on Friday.

N. Korean bomb has little effect on Wall Street

The three major stock indexes managed to end the day's trading in positive territory despite news that North Korea has tested an atomic bomb. The Dow Jones industrial average closed at 11,857. 81, up 8.33 points. The Nasdaq composite index gained 11,78 points to close at 2,311.77, while the S&P 500 finished the day at 1,350.44, up 1.67 points.

Major South Florida stocks finished mostly up. Office Depot, which celebrated its 20th anniversary by ringing the closing bell on the New York Stock Exchange, picked up 91 cents a share to close at $41.42. Ryder System gained 18 cents a share to close at $43.41, while Carnival Corp. closed at $48.30 a share, down 7 cents. Royal Caribbean closed flat at $39.65.

SEC launches investigation of GlobeTel

FORT LAUDERDALE — The Securities and Exchange Commission has launched a formal investigation into the books of GlobeTel Communications Corp., the company said Friday.

The company, which provides voice over Internet services, also said the American Stock Exchange has delisted the company’s shares effective Tuesday. After that the company will trade on the pink sheets. The company plans to move to the somewhat more respectable OTC Bulletin Board.

SEC concerns include “certain accounting issues, including the treatment of certain acquisitions and the valuation of certain intangible assets,” the company said.

In July, GlobeTel received notice from the Amex that it intended to delist the company for filing “overly promotional” press releases. The exchange also said the company filed incomplete, misleading and/or inaccurate financial statements and provided Amex staff members with “materially false and misleading information.”

GlobeTel released the information after trading hours. GlobeTel shares finished the day at 49 cents but dropped 14 cents in after-hours trading.

Jobs report ends Dow's record streak

The daily Dow

The Dow’s record streak ended Friday due in measure to a mediocre jobs report for September and a jump in Treasury rates. The Dow Jones industrial average finished Friday at 11,850.21, down 15.36 points. The Dow had set record highs the previous three days. The Nasdaq composite index finished 6.36 points lower at 2,299.99, while the S&P 500 closed at 1,349.58, down 3.64 points.

The Labor Department announced that the national economy added only 51,000 jobs in September, disappointing investors. That news was offset somewhat by an upward revision in the number of jobs created in August.

The mild market malaise hit South Florida’s major stocks. FPL Group finished at 46.32 a share, down 5 cents; Citrix Systems closed down 14 cents at $34.77 a share; BankAtlantic shares also dropped 14 cents to finish at $13.62. Carnival Corp. shares managed gain a dime, finishing the day at $48.37.

Employee confidence index gains in September

FORT LAUDERDALE — Spherion Corp.’s employee confidence index jumped 2.8 points in September after flagging in August. The increase put the index at 58.5.

The survey, done for Spherion by Harris Interactive, found that 59 percent of workers believe the economy is strengthening or has stabilized, compared to 54 percent in August.  Sixty-one percent said they were confident in their ability to find a new job, an increase of four percentage points.

Workers remain confident in their own job security; 79 percent said they believed it unlikely that they would lose their job in the next 12 months, no change from August and July. Another indication of confidence: 36 percent said they planned to change jobs in the next year, up from 35 percent in August.

“With a low unemployment rate, higher personal earnings and continued job creation, workers have good reason to be confident about their prospects,” Spherion CEO Roy Krause said in a statement. “As a result of this confidence and current labor market trends, we are advising employers to move more quickly in their recruiting efforts and focus on retaining key talent.”

 

Tribune Co. fires Los Angeles Times publisher

Los Angeles Times publisherJeff Johnson, who had resisted orders from parent Tribune Co. to cut editorial staff was fired Thursday. He was replaced by David D. Hiller, publisher of The Chicago Tribune. Times editor Dean Baquet will continue to hold that job.

 

Dow sets record for 3rd straight day

The daily Dow

Thanks to some positive news from retailers, the three major stock indexes continued to post gains Thursday. The Dow Jones industrial average had its third straight record close, hitting 11,866.69, up 22.23 points for the day. The Nasdaq composite closed at 2,306.35, up 15.39 points, while the S&P 500 finished trading at 1,353.22, up 3 points.

News that 70 percent of retailers posted better-than-expected same-store sales for September boosted the market. Oil briefly spiked near $61 a barrel on a false rumor that OPEC had agreed to reduce output.

Major South Florida stocks finished mixed. Shares of FPL Group finished at $46.37, down 46 cents. Carnival Corp. closed at $48.27, down 47 cents a share. Citrex Systems continued to rebound, finishing at $34.91, up 32 cents a share, while Ryder System closed at $53.84 cents a share, up 81 cents.

 

FPL sues Maryland to force ruling on merger

FPL Group has sued Maryland and that state's public service commission to force a ruling on the company's proposed purchase of Constellation Energy. The deal, announced in December, stalled last month when a Maryland court barred members of the PSC from ruling on it.

The Dow sets another record as rally continues

The daily Dow

The happy days on Wall Street continued Wednesday as the Dow again set a record high and the Nasdaq and S&P closed with impressive gains. The Dow Jones industrial average gained 127.67 points to close at 11,850.61, breaking its record close of 11,727 set Tuesday. The Nasdaq composite index more impressively gained 47.30 points to close at 2,290.96, while the S&P 500 gained 16.11 points to close at 1,350.22.

Federal Reserve Chairman Ben Bernacke, appearing before the Economic Club of Washington, spoke soothing words about the housing market, saying that it is undergoing a "substantial correction" that should be limited in duration by a strong job market and low interest rates. Meanwhile the Institute of Supply Management said its services index fell to 52.9, its lowest point since April 2003. Investors took that as another indication that the Fed won't raise interest rates when it meets later this month.

Wednesday's rally helped lift major South Florida stocks. Citrix Systems, which had been hammered Monday and Tuesday, gained 85 cents a share to close at $34.59. Citrix, however, was sliding a bit early in after-hours trading. Carnival Corp. picked up 71 cents a share to close at $48.74, while FPL Group rose 84 cents a share to close at $46.83.

Fort Lauderdale swindler gets 5 years in prison

MIAMI — A federal district court judge has sentenced a Fort Lauderdale swindler to five years in prison and ordered him to pay $4.49 million in restitution for his part in a hedge fund scam.

Joseph Y. Zumwalt, a stock promoter living in Fort Lauderdale, was one of the partners behind EPG Partners Ltd., a hedge fund that scammed millions of dollars from investors, most of which came from two nonprofits. Most of the money EPG collected from investors was diverted to other, undisclosed uses rather than invested as intended.

Investors, however, were told that EPG had a fund balance of nearly $90 million and was pulling in returns as high as 43 percent.

Zumwalt’s partner, Anthony Giordano of Boca Raton, last month was sentenced 10 years in prison and ordered to pay $5.5 million in restitution.