Market Snapshot June 25, 2009, 4:45PM EST

Stocks Finish with Strong Gains

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In economic news Thursday, U.S. first-quarter GDP was revised higher to a -5.5% growth rate, vs. -5.7% in the preliminary report and the -6.1% in the advance report.

U.S. initial jobless claims rose 15,000 to 627,000 in the week ended June 20, from a revised 612,000 previously (was 608,000). The 4-week moving average edged up to 617,250 from 616,750 (revised from 615,750). Continuing claims climbed 29,000 to 6,738,000 in the week ended June 13, from a revised 6,709,000 (was 6,687,000).

Among companies in the news Thursday, home-goods retailer Bed Bath & Beyond posted first-quarter earnings per share (EPS) of $0.34, vs. $0.30 one year earlier, despite 1.6% lower same-store sales. Wall Street was looking for $0.25 EPS.

Footwear and apparel maker Nike (NKE) reported fourth-quarter EPS before items of $0.99, vs. $0.94 one year earlier, despite a 7% revenue drop. Wall Street was looking for $0.96 EPS. Nike also reported that worldwide futures orders for Nike-brand athletic footwear and apparel slated for delivery from June through November 2009 totaled $7.8B, 12% lower than in the year-ago period (-5% excluding foreign currency translation).

ConAgra Foods (CAG) posted fourth-quarter EPS from continuing operations (excluding items) of $0.41, vs. $0.18, one year earlier, on an 8% sales rise. The company said it is in a good position to deliver healthy EPS growth in fiscal 2010 while increasing investment in its brands; it sees EPS from continuing operations of $1.63-$1.66 (excluding items).

Homebuilder Lennar Corp. posted a $0.76 second-quarter loss per share, vs. a $0.76 loss one year earlier, despite a 21% revenue drop. Lennar noted that its second-quarter fiscal 2009 loss includes a $0.38 per share charge related to valuation adjustments and other write-offs, and a $0.27 per share charge related to a non-cash deferred tax asset valuation allowance.

Kimberley-Clark (KMB) says it will cut its worldwide workforce by about 1,600 positions and streamline its organization. The paper-goods maker said these actions are expected to generate annualized pre-tax savings of about $150 million and strengthen its profitability and cash flow.