Market Rumours

Greek Nerves Reach Boiling Point
2010-04-08 08:25 Prevailing uncertainty over Greece's ability to fund itself, and the rising likelihood that the country will resort to the emergency lending facility set up for it, kept Greek government bonds under increasing pressure Thursday, pushing 10-year Greek yields further above 7%."There can now be little doubt that Greece will have to turn to the IMF [International Monetary Fund] for help," said Beat Siegenthaler of UBS AG in a note.Siegenthaler said a debt restructuring proposal at the outset can be ruled out; "rather, the objective of the IMF programme will be to help Greece regain market confidence by means of heavy financial and verbal support."While the costs of insuring Greek debt against default increased further, the euro stabilized ahead of the European Central Bank's decision to hold interest rates, and President Jean-Claude Trichet's subsequent news conference where he is expected to give more details on terms by which the ECB will accept government bonds as collateral.The European Union and the IMF agreed on a safety net for Greece late March as a last-resort solution to the country's debt problems. The set-up of the mechanism has brought short-term relief to bond markets but the lack of details soon caused fresh uncertainties to surface.A head of bond-trading at a large local bank in Athens, speaking on condition of anonymity, said: "I don't think Greece will be able to raise the EUR10 billion it needs in this next month at such rates, nor do I expect anything more than anemic demand. Moreover, today's bond market developments are likely to act as a trigger for the activation of the EU-IMF mechanism."The Greek yield spread over German bunds rose to a new high of 4.48 percentage points midday Thursday, as investors demanded a yield of 7.57% for a 10-year Greek bond, compared with a 3.09% yield on German bunds. On Wednesday the yield spread ended at around 4.06 percentage points.The rise in yields, which has been affecting the whole Greek yield curve, is more significant at the short end.Two-year yields surged more than one percentage point on the day, to 7.86% at 1125 GMT compared with 6.64% at Wednesday's close. The yield premium over equivalent German paper widened to 6.94 percentage points from 5.68 percentage points.Such a sharp rise in shorter-dated bond yields shows that investors aren't just worried about the long-term outlook for a borrower, but also about the nearer-term risk that it won't be able to service its debt.Some economists say there is an increasing risk that Greece will have to tap the EU/IMF emergency lending facility."We think that we are getting ever closer to this point, particularly if the PDMA [Greek Public Debt Management Agency] struggles to find strong sponsorship for its global dollar-denominated issue," said Citigroup strategist Steven Mansell.As the terms of activating this emergency funding are still very unclear, Citigroup said there's little scope for market tension to dissipate in the near term.The euro was stable against the dollar ahead of the ECB press conference, trading at $1.3303 at around 1200 GMT.The annual cost of insuring EUR10 million of Greek government debt against default for five years using credit default swaps surged to EUR472,000, compared with EUR415,000 early Thursday, and surpassing a previous all-time high of EUR425,000, according to data from CMA DataVision.

ECB Says Current Interest Rate &apos
Prevailing uncertainty over Greece's ability to fund itself, and the rising likelihood that the country will resort to the emergency lending facility set up for it, kept Greek government bonds under increasing pressure Thursday, pushing 10-year Greek yields further above 7%."There can now be little doubt that Greece will have to turn to the IMF [International Monetary Fund] for help," said Beat Siegenthaler of UBS AG in a note.Siegenthaler said a debt restructuring proposal at the outset can be ruled out; "rather, the objective of the IMF programme will be to help Greece regain market confidence by means of heavy financial and verbal support."While the costs of insuring Greek debt against default increased further, the euro stabilized ahead of the European Central Bank's decision to hold interest rates, and President Jean-Claude Trichet's subsequent news conference where he is expected to give more details on terms by which the ECB will accept government bonds as collateral.The European Union and the IMF agreed on a safety net for Greece late March as a last-resort solution to the country's debt problems. The set-up of the mechanism has brought short-term relief to bond markets but the lack of details soon caused fresh uncertainties to surface.A head of bond-trading at a large local bank in Athens, speaking on condition of anonymity, said: "I don't think Greece will be able to raise the EUR10 billion it needs in this next month at such rates, nor do I expect anything more than anemic demand. Moreover, today's bond market developments are likely to act as a trigger for the activation of the EU-IMF mechanism."The Greek yield spread over German bunds rose to a new high of 4.48 percentage points midday Thursday, as investors demanded a yield of 7.57% for a 10-year Greek bond, compared with a 3.09% yield on German bunds. On Wednesday the yield spread ended at around 4.06 percentage points.The rise in yields, which has been affecting the whole Greek yield curve, is more significant at the short end.Two-year yields surged more than one percentage point on the day, to 7.86% at 1125 GMT compared with 6.64% at Wednesday's close. The yield premium over equivalent German paper widened to 6.94 percentage points from 5.68 percentage points.Such a sharp rise in shorter-dated bond yields shows that investors aren't just worried about the long-term outlook for a borrower, but also about the nearer-term risk that it won't be able to service its debt.Some economists say there is an increasing risk that Greece will have to tap the EU/IMF emergency lending facility."We think that we are getting ever closer to this point, particularly if the PDMA [Greek Public Debt Management Agency] struggles to find strong sponsorship for its global dollar-denominated issue," said Citigroup strategist Steven Mansell.As the terms of activating this emergency funding are still very unclear, Citigroup said there's little scope for market tension to dissipate in the near term.The euro was stable against the dollar ahead of the ECB press conference, trading at $1.3303 at around 1200 GMT.The annual cost of insuring EUR10 million of Greek government debt against default for five years using credit default swaps surged to EUR472,000, compared with EUR415,000 early Thursday, and surpassing a previous all-time high of EUR425,000, according to data from CMA DataVision.

US Jobless Claims Rise 18K To 460K In Week
2010-04-08 08:34 expected initial claims to decrease by 1,000.The four-week moving average, which aims to smooth volatility in the data to help paint a better picture of the underlying trend, also went up for the week ending April 3. The Labor Department said the four-week moving average rose by 2,250 to 450,250 from the previous week's revised average of 448,000. In a more positive sign, however, total claims lasting more than one week fell to their lowest levels since Dec. 13, 2008.A U.S. Labor Department economist said Thursday the unexpected increase in claims was due in part to the Easter holiday and also due to the celebration of Cesar Chavez Day in California -- a state that is big enough to move the national numbers. The economist noted that because Easter occurs at a different time each year, the seasonal factors the Labor Department uses in calculating claims can sometimes be inaccurate."This is a volatile time when the numbers are moving around quite a bit," the economist said. "I think a lot of what is going on in this particular week is seasonal factor volatility. I don't think there is anything really unusual in the numbers."This latest increase in jobless claims comes just one week after the Labor Department reported that U.S. employers created jobs at the fasted pace in three years during the month of March. That report found that nonfarm payrolls rose by 162,000. Although some of those new jobs reflect only temporary hiring for the 2010 decennial Census, Democrats and other top Obama administration officials stressed that the figure also reflects gains in private sector employment and touted the report as a sign that the labor market is starting to stabilize.Along with nonfarm payrolls, jobless claims have been among the most stubborn economic indicators since the financial crisis.Even with those recent gains in employment, the Labor Department report last week also showed that unemployment still remains at 9.7%, and economists don't expect that figure to drop much for the rest of the year. And while claims are now far below their peak in March 2009 when they hit above the 650,000 mark, analysts generally say they must fall to around 400,000 in order to be consistent with a stable market.In the Labor Department's Thursday report, the number of continuing claims -- those drawn by workers for more than one week in the week ended March 27 -- fell by 131,000 to 4,550,000 from the preceding week's revised level of 4,681,000.The unemployment rate for workers with unemployment insurance for the week ended March 27 was 3.5% -- a decrease of a 0.1 percentage point from the prior week's unrevised rate of 3.6%.The largest increase in initial claims for the week ended March 27 occurred in Texas due to layoffs in the finance, service and manufacturing sectors. The largest decrease in claims occurred in Michigan.The Labor Department report on jobless claims can be accessed at:http://www.dol.gov/opa/media/press/eta/ui/current.htm


Euro-Zone February Retail Sales Plummet
2010-04-08 06:08 LONDON -- Retail sales in the 16 countries that use the euro fell at their fastest pace in 13 months in February, with consumers continuing to rein in spending amid a slow economic recovery, the European Union's statistics agency Eurostat said Thursday.Sales volumes in the single-currency area fell 0.6% in February from January, the largest decline since December 2008, and were 1.1% lower compared with the comparable month a year earlier.The data were weaker than expected. Economists surveyed by Dow Jones Newswires last week estimated that February sales would be unchanged on the month and down 0.7% on the year.In January, retail sales declined 0.2% on the month and 0.6% on the year. Those figures were revised to show a less negative performance, from the originally reported 0.3% month-on-month drop and 1.3% annual decline."Although the worst of the labour market downturn seems behind, many people remain worried about the possibility of losing their job," said Martin Van Vliet, European economist for ING Bank NV. "What is more, consumers seem to be getting increasingly concerned about the income implications of future fiscal tightening, especially those in the fiscally beleaguered Southern economies," he said.The data highlight these concerns as consumers are now displaying a thriftier attitude. Spending on food, drinks and tobacco slumped by a record 1.6% in February from January. On the year, sales of food, drink and tobacco fell by 3.1%, the fastest pace of decline in 11 months.Sales of non-food items rose 0.2% on the month in February and were 0.7% higher in the year.The slowdown in sales comes a day after fourth-quarter euro-zone gross domestic product figures were revised lower. The figures showed the economy stagnated in the final months of 2009, and also suggested the region will struggle to post a significant pickup in the first three months of 2010.According to recent purchasing managers indexes, firms across the euro zone have been struggling to pass on rising input costs to consumers. The further decline in sales highlight consumers' more careful mood.The data also add further weight to the unanimous view among economists that the European Central Bank will keep interest rates on hold when it announces its decision shortly after midday Thursday--and will instead direct its discussions on supporting member states such as Greece with its broader monetary policies.In the 27-member European Union, sales were unchanged in February from January and fell 0.7% on the year.Eurostat Web site:www.europa.eu.int/en/comm/eurostat

US Retailers Post Strong Sales Gains As Consumers Spend
2010-04-08 08:30 NEW YORK -- Retailers Thursday reported strong year-over-year gains in sales at stores opened more than a year as indications continue to grow that consumers are spending again.In addition to improved consumer confidence, retailers also benefited from easy year-ago comparisons, increased Easter shopping and warmer weather."Retailers are smashing expectations," Thomson Reuters analyst Jharonne Martis said.With just under half having reported, all but one have beat Wall Street projections, with Costco Wholesale Corp. (COST), Limited Inc. (LTD), Hot Topic (HOTT) and Cato Corp. (CATO) reporting better-than-expected results.The only disappointment so far is apparel retailer Abercrombie & Fitch Co. (ANF), which posted a 5% increase in same-store sales when Wall Street expected 6.6% growth. Abercrombie shares slipped 3.2% premarket to $46.Same-store sales, a key retail metric, count only sales at stores open at least a year. Wal-Mart Stores Inc. (WMT) doesn't disclose monthly sales figures.The strong sales growth--in a month in which many retailers unveil spring merchandise at full price--suggests consumers are feeling more confident about paying a higher price, a potential boost to retailers' first-quarter margins."Consumers have been in a restrained spending mode for several months, but improved consumer confidence is prompting shoppers to loosen the purse strings after two years," Martis has said.All of which could lead to a strong beginning to 2010 for retailers."Underlying sales trends look strong, and we believe retailers are setting up for a very good first quarter," said Daniel Binder, retail analyst at Jefferies.Teen apparel, always a good indicator of discretionary spending, showed particular strength in March as Zumiez Inc. (ZUMZ) and Hot Topic reported better-than-expected results.Ironically, Hot Topic so far has reported the worst same-store sales result, down 7.5%, but its shares are rising the most, up 18% premarket to $8.32, because the decline was narrower than the expected 11.2% drop and the company announced a special one-time cash dividend of $1.Women's apparel and accessories retailer Cato raised first-quarter earnings guidance, the first in what may be a number of retailers to do so as more reports come in.Retailers were setting up for something big, with several indicators suggesting improvement after the industry struggled last year under the weight of the economic downturn.The retail industry added 14,900 jobs in March, its third straight month of expansion after shedding over one million positions since the recession began in December 2007.Import cargo volume at the nation's major retail container ports is expected to rise 8% in April compared with a year ago, and solid increases are expected to continue through the summer as the US economy improves, the National Retail Federation said."Retail sales are starting to improve, and retailers are importing merchandise in the quantities they need to meet that demand," said NRF spokesman Jonathan Gold.Even the highest end is seeing encouraging signs. Predictions "of the demise of luxury and full priced spending were exaggerated," Tiffany & Co (TIF) Chief Executive Michael Kowalski said when the company posted improved fourth-quarter results in late March. "Many customers were simply waiting for some improvements in their personal incomes and balance sheets prior to resuming spending."It is not likely to be a completely smooth path for retailers because consumers are still watchful of their wallets. The latest indication came Wednesday with word that Americans put their credit cards back into the drawer in February, an indication they aren't ready to spend briskly despite the economy's improvement. Consumer credit fell $11.5 billion in February, the Federal Reserve said.Retail stocks have been ahead of the industry's improved sales figures, with many shares trading at multi-year highs coming into this week after the group bottomed in March 2009. Big advances from here may be more hard fought because of the extended run-up and the stocks now pricing in improving conditions, analysts say.

Greek Banks Seek Additional Support
2010-04-07 12:28 ATHENS -- Greece's banks, which have seen their borrowing costs soar as a result of the country's fiscal problems, have asked the Greek government to tap an extra EUR17 billion in unused liquidity measures as they struggle to cope with the economic crisis."They want to have an additional safety net now that the economy and the banking system are under pressure," Finance Minister George Papaconstantinou told reporters Wednesday after a meeting with Bank of Greece Governor George Provopoulos."The banks have asked to use the remaining funds of the support plan," he added. "We are discussing with the central bank a procedure to allocate the remaining funds."Although Greek banks are well-capitalized with an average capital-adequacy ratio of around 12%, Greece's banks have been squeezed by slower economic growth and rising provisions, which reached 7.7% of total loans outstanding last year.On account of those higher provisions, and partly because of trading losses relating to their large portfolios of Greek government bonds, Greece's banks recently reported mostly disappointing fourth-quarter earnings. That included a surprise EUR87 million loss at the National Bank of Greece SA (NBG), the country's largest lender by assets.At the same time, the four major banks--NBG, EFG Eurobank Ergasias SA (EUROB.AT), Alpha Bank SA (ALPHA.AT), Piraeus Bank SA (TPEIR.AT)--have also seen their borrowing costs soar as a result of both a series of ratings downgrades, and the rising cost of Greek government borrowing.Late last month, Moody's Investors Service downgraded five of the country's nine major banks citing a weakening in the banks' stand-alone financial strength, as well as the "anticipated additional pressures stemming from the country's challenging economic prospects in the foreseeable future."Many economists, including those at the Greek central bank, forecast an economic contraction of about 2% this year, but some expect as much as a 4% dip in economic activity this year, after a 2% decline in 2009.Concurrently, credit growth for the past four months has hovered at an anemic 4%, sharply down from a growth rate of more than 20% two years ago. Non-performing loans, meanwhile, continue to rise and aren't expected to peak until the second half of the year.In late 2008, the previous conservative government had passed a EUR28 billion support package that consisted of a mixture of loan guarantees, direct capital injections and special liquidity measures to boost the Greek banking system.However, until now, the banks have tapped only about EUR11 billion of those funds, mainly drawing on the special liquidity measures and direct capital injections, by issuing special preference shares to the Greek government.News that the banks were seeking additional assistance hit banking stocks Wednesday, with the Athens Stock Exchange banks sub-index closing 4.2% lower at 2,110.37 points. Over the past six months that index has fallen about 40%.Among the major lenders, NBG fell 4.3%, while Alpha Bank shed 4.4%, Piraeus Bank was down 5.7% and Eurobank slumped 7.5%.Officials at the Hellenic Banks Association, the trade group for the industry, declined to comment.

OECD Sees G7 Growth Slowing, Germany Contracting
2010-04-07 10:16 PARIS -- Germany's economy contracted in the first quarter, the only one of the Group of Seven leading industrial nations to do so, the Organization for Economic Cooperation and Development said Wednesday.In its interim assessment of the economic outlook, the Paris-based, 30-nation think tank said G-7 economies will continue to grow in the first half of 2010, but at a slower speed and with different rhythms.Growth will slow as support from the inventory cycle fades, fiscal stimulus measures come to an end and as private demand suffers from slow credit growth and weak labor markets, the OECD said.And the OECD said in order to support the recovery, governments should announce credible medium-term plans to cut their borrowing this year, but only start to implement them in 2011.In an interview with Dow Jones Newswires, OECD Chief Economist Pier Carlo Padoan said a double-dip recession doesn't have a high probability in Europe or elsewhere.Germany may be the exception. The OECD estimates that German gross domestic product contracted at an annualized rate of 0.4% in the first quarter, while the combined GDP of the G-7 rose at an annualized rate of 1.9%.The OECD previously forecast in November last year that the German economy would grow 1.8% in the first quarter and the G-7 would grow 1.5%. Germany, the largest economy in the euro zone, is expected to return to annualized growth of 2.8% in the second quarter.Germany has largely relied on exports to drive its recovery from recession, with domestic demand remaining weak."We would like to see more growth in surplus countries and in particular in Germany," the OECD's chief economist said. "The way to address that effectively is to boost investment activities in Germany. That would close the gap between savings and investment and therefore reduce the current account surplus at the same time as boosting competitiveness."The three largest economies in the euro zone--Germany, France and Italy--will grow at an annualized rate of 0.9% in the first quarter and 1.9% in the second, the OECD forecast.Meanwhile, the U.S. economy is estimated to have grown 2.4% in the first quarter and is forecast to grow 2.3% in the second as it continues to outpace euro-zone economies. The OECD forecast in November that annualized first-quarter growth in the U.S. would be 1.6%.The OECD urged caution in the removal of policy support and said although governments should announce ambitious programs to consolidate their budgets, these should only come into effect in 2011, with the exception of countries such as Greece that need to consolidate immediately.Regarding monetary policy, Padoan said there is no pressure for central banks to withdraw exceptional measures or to raise interest rates in a hurry."We do not see inflation concerns and therefore monetary policy should be moving accordingly," he said."We would like to see monetary policy go back to normal sooner rather than later, but at the same time we caution about the speed at which that takes hold," he said at a press conference Wednesday.Padoan said normal monetary policy would be the removal of unconventional measures, like quantitative easing, and interest rates of around 2%. But the OECD isn't able to prescribe the timing, he said.Padoan also reiterated the OECD's call for China to let the yuan appreciate. He said China should take structural measures such as improving the welfare and pension system in order to lower savings of households and state-owned enterprises.Since the economic crisis, the environment has changed and the issues surrounding China's economy should now be addressed in an appropriate international forum, he said."If anybody can do it, the G-20 could do it and should do it," Padoan said in the interview.Later at the press conference, Padoan said the weakening euro isn't necessarily a negative development for Europe."The euro is now slightly devalued with respect to a few months back. And that, from the point of view of the euro area, is good news as it would support export growth," he said.

UK Parties Clash On Tax, Political Reform
2010-04-07 12:42 LONDON -- The leaders of the U.K.'s three main political parties clashed on political reform, taxes and the economy on the first full day of campaigning for the U.K. election Wednesday.Prime Minister Gordon Brown officially kicked off the election race on Tuesday, setting May 6 as the date for the vote. David Cameron's Conservative Party currently holds a poll lead as it seeks to return to power after 13 years in opposition.Wednesday, Brown and Cameron clashed on the economy at their final prime minister's question-time face-off before the vote.Brown said Cameron has made a "historical mistake" by promising to reverse the government's proposed national insurance tax rise due to take effect next April."There is a clear choice. We can put the national insurance up and therefore protect our schools, our hospitals and our policing or we can do what the Conservatives traditionally do and that is put our hospitals, policing and our health service at risk," Brown said.The Conservatives have said they would pay for the increase by making some GBP6 billion in extra efficiency savings in the public sector this year. They haven't set out details."The choice is Labour's decision to go on wasting money and then put up tax on every job in the country," Cameron said.He said the tax increase "would wreck the recovery by putting a tax on every job, on everyone earning over 20,000 [pounds], a tax on aspiration."The U.K. economy emerged from a deep recession in the fourth quarter of 2009.The Conservative pledge to reverse the tax rise has won broad support from the business community, with another 30 executives backing the policy Wednesday.However, it has also led to questions about the party's commitment to cut the U.K.'s soaring budget deficit--until recently the central focus of their economic message.Labour has charged that Conservative promises to reverse the tax cut, reduce the deficit further than the government and support front-line services don't add up.Meanwhile, all three parties sought to convince voters they were the real political reformers, seeking to win over an electorate outraged by last year's parliamentary expenses scandal.In a speech in London, Brown said Labour would commit to a fixed-term parliament, removing the governing party's long-standing prerogative of picking the election date.Brown laid out a series of reform proposals, including a fully elected upper chamber, a reduced voting age of 16, a new voting system and the right of voters to remove lawmakers who are found guilty of gross financial misconduct.Brown said the measures would "rebuild faith in public life" and attacked the Conservatives for opposing changes to the voting system and a fully elected House of Lords, saying they are "hostile to fundamental change in our politics."The Conservatives have also proposed a number of changes to the political system, pledging to decentralize power, reduce the number of lawmakers and strengthen the role of backbench members of parliament.Earlier Wednesday, the party laid out plans which would allow voters the right to force an election in their area if they collect signatures worth 10% of the electorate.The smaller opposition Liberal Democrat Party has also put political reform at the center of its campaign. Wednesday, its leader Nick Clegg promised a cap on political donations, a shakeup of the voting system and a crackdown on politicians who are engaged in lobbying."Only the Liberal Democrats can be trusted on political reform. Labour and the Conservatives talk about it. We will make sure it happens," Clegg said.While the Conservatives retain their lead in opinion polls, the race has tightened in recent months, opening the possibility of a hung parliament where no party has a majority.However, the latest YouGov poll for The Sun, published late Tuesday, showed the Conservatives with 40% of support, Labour with 32% and the smaller opposition party, the Liberal Democrats, with 17%.

US Stocks Drop After Weak Consumer Credit Data
2010-04-07 17:06 Industrial Average fell 72.47 points, or 0.66%, to 10897.52, marking the measure's second straight day of declines. The Dow hadn't been down two sessions in a row since February.Alcoa was the Dow's worst performer, off 29 cents, or 1.9%, to 14.74. American Express was also weak with a drop of 75 cents, or 1.7%, to 42.37, while Caterpillar dropped 82 cents, or 1.3%, to 64.47.The Nasdaq Composite fell 5.65, or 0.23%, to 2431.16. The Standard & Poor's 500 index slipped 6.99, or 0.59%, to 1182.45. Every sector ended the session in the red.The declines came as data from the Federal Reserve showed Americans put their credit cards back into the drawer during February, an indication they aren't ready to spend briskly despite the economy's improvement. Consumer credit outstanding declined at a seasonally adjusted annual rate of 5.6%, down $11.5 billion. Economists were expecting a drop of $1 billion.Also weighing on investor sentiment, Federal Reserve Chairman Ben Bernanke said the U.S. must start to prepare now for the challenges posed by an aging population with a credible plan to gradually reduce a soaring public debt. Bernanke warned long-term interest rates could rise without a credible plan to cut the debt, hurting a still-fragile economic recovery. U.S. Treasury yields have risen recently amid fears about sky-high budget deficits.In addition, Thomas Hoenig, president of the Reserve Bank of Kansas City, said the Fed could increase key rates toward 1% from near 0% as a ward against inflation and possible bubbles in financial markets without hurting the nascent economic recovery."We've had a heck of a run here, and what's happening in the fixed-income market is potentially weighing on the equity market in that you're going to have more and more interest and headlines regarding what's going to happen to rates," said Dan Genter, chief executive and chief investment officer of RNC Genter. "Even though it looks like there's going to be prolonged lower rates, the ability to raise them quickly and possibly at a larger magnitude is something that is within the realm of possibility. There's some concern in that regard."Shares of oil refiners slumped as an unexpectedly large increase in U.S. oil inventories dragged down crude oil futures. Among the decliners, Valero Energy fell 63 cents, or 3%, to 20.11, while Sunoco declined 1.04, or 3.3%, to 30.40.Also in the energy sector, Massey Energy fell another 3.23, or 6.7%, to 45.22, after the fatal blast at a Massey mine in West Virginia earlier in the week. Investors worried about the impact that lost production will have on earnings and the potential regulatory and legal fallout.Meanwhile, EOG Resources rose 6.36, or 6.5%, to 103.74, after the oil and natural-gas company unveiled a significant oil discovery in its South Texas Eagle Ford location as well as discoveries at its other operations, which led it to project double-digit organic production percentage growth through 2012.Among other stocks in focus, Tractor Supply (Nasdaq) jumped 5.07, or 8.3%, to 66.55. The farm feed-and-equipment retailer's first-quarter profit and sales soared, beating analysts' expectations, and the company raised its full-year profit and sales guidance.AOL climbed 1.05, or 4%, to 27.44 after the company said it is evaluating whether to sell or shut down Bebo, the social-networking site it acquired for $850 million two years ago in a bid to reinvent itself by tapping into the social-networking craze.Family Dollar Stores advanced 1.15, or 3%, to 38.94. The discount retailer's fiscal second-quarter earnings rose 33% on rising sales and stronger margins. The company also raised its fiscal-year earnings outlook and forecast third-quarter earnings above analysts' views.MSC Industrial Direct jumped 4.27, or 8%, to 57.47 as the company's fiscal second-quarter earnings rose 17%, beating its own estimates, while its sales climbed. The industrial and maintenance products distributor also forecast current-quarter results well above analysts' expectations.AMB Property fell 1.11, or 3.9%, to 27.53. The industrial real-estate owner and operator priced a larger-than-planned offering of 15.8 million shares at $27.50, a 4% discount to Tuesday's closing price.Netflix (Nasdaq) fell 3.64, or 4.4%, to 79.73 after Barclays Capital cut its investment rating on the online DVD rental company's stock to equal-weight from overweight. The firm said after the stock's climb this year, its risks and rewards on the stock are now more balanced. "When we push our model we have a tough time seeing Netflix generate significant upside to our/investor estimates, particularly given a significant ramp in digital spending likely in 2010/11," Barclays added.