Stocks Edge Higher Ahead of Jobs Data

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dollar index declined after the European Central Bank and the Bank of England left interest rates unchanged. Supply concerns had ebbed slightly after a U.S. government report on Wednesday showed a surprising 1.2 million barrel gain in crude inventories.

Among stocks in the news Thursday, NutriSystem (NTRI) shares plunged 33.6% to close at a new 52-week low of $31.59, after it said it sees lower-than-expected revenue of $188 million and earnings of 62 to 66 cents a share in the third quarter. The weight-loss products manufacturer's board approved a $100 million increase to its stock repurchase program and it opened a $200 million credit facility. Lazard reportedly downgraded the stock to hold from buy.

Constellation Brands (STZ) shares rose 1.5% on a second-quarter earnings report of 33 cents a share, up from 28 cents a share in the year-ago period, as lower restructuring and operational charges offset a 32% drop in sales. The world's largest wine producer expects a fiscal 2008 profit of $1.34 to $1.42 on low-single-digit growth in organic net sales.

International Speedway (ISCA) shares fell 4.1% after it posted a third-quarter profit of 53 cents a share, down from 64 cents a share (non-GAAP) a year ago, as higher deferred income-tax expenses, inventory charges and other items offset a 10% revenue increase. The company expects fiscal 2007 non-GAAP earnings of $2.70 to $2.75 a share on revenue of $810 million to $815 million.

Dresser-Rand Group (DRC) shares finished 10.3% lower after the company said late Wednesday it had lowered its operating income outlook for the remainder of the year due to a strike and flat aftermarket sales. The supplier of rotating equipment to the oil and gas industries now expects third-quarter operating income of $32 million to $36 million and full-year operating income of $205 million to $225 million, compared with the $250 million to $270 million it had forecast three months ago.

Wendy's International (WEN) reported a slight rise in average sales at U.S. restaurants open at least one year for the third quarter, and a 1.3% increase in average same-store sales at U.S. franchise restaurants. Shares were down 1.1%.

Acuity Brands (AYI) shares fell 6.0% after it posted a profit of $1.16 a share for its fourth quarter, up from 93 cents a year ago, but two cents below analysts' consensus estimate of $1.18 a share. Sales rose 3.0%.

Wet Seal (WTSLA) shares dropped 18.6% in response to the company's warning that September same-store sales are expected to fall 7.5% to 8.5%, vs. a previous forecast of -1.0% to +3.0%. The retailer expects October comparable sales to fall 2% to 6% and slashed its third-quarter profit outlook to breakeven to two cents a share from a prior estimate of seven to 10 cents a share.

European equity indexes finished mostly lower Thursday after the ECB and Bank of England kept interest rates unchanged. In London, the FTSE 100 index gained 0.19% to trade at 6,547.90. Germany's DAX index edged 0.13% lower to 7,944.99. In Paris, the CAC 40 gave back early gains to trade 0.03% lower at 5,804.39.

Asian markets ended lower. In Japan, the Nikkei 225 index fell 0.62% to 17,092.49. In Hong Kong, the Hang Seng index dropped 1.84% to 26,973.98. The Shanghai composite index is closed all week for a Chinese national holiday.

Treasury Market

Treasuries strengthened in light trading ahead of the Friday morning release of the September jobs report. The 10-year note climbed 12/32 to 101-28/32 for a yield of 4.51%, and the 2-year bond edged up 02/32 to 100-01/32 for a yield of 3.98%. The 30-year bond gained 22/32 to trade at 103-26/32 for a yield of 4.76%.

Bogoslaw is a reporter for BusinessWeek's Investing channel .