The economy added 94,000 non-farm payroll jobs last month down from the 170,000 added in October. As a result of strong employment growth in household survey, the unemployment rate was steady at 4.7%.
Oil prices increased, as the U.S. government lobbied international powers not to back down on OPEC's second-largest producer, Iran, over its nuclear program.
December's consumer sentiment index, from the University of Michigan Consumer Sentiment Report, hit 74.5 in December, down from the prior month's reading of 76.1. Economists expected December sentiment to hit 75.0. It's the second lowest level since 1992.
Macrovision Corp. (MVSN) said it will buy television listings provider Gemstar-TV Guide International Inc. (GMST) for $2.8 billion in cash and stock.
JetBlue Airways Corp. (JBLU) will start offering limited e-mail and instant messaging services for free on one of its planes next week as airlines renew efforts to offer in-flight Internet access.
In Forex News
The yen headed for a weekly fall against 14 of the 16 most-active currencies after a rally in global stocks prompted investors to buy higher-yielding assets with funds borrowed in Japan.
The yen fell against the dollar and equity markets in Asia and Europe rose today after an announcement by U.S. President George W. Bush to freeze interest rates on some subprime mortgages, easing concern that defaults will hurt the worlds' largest economy.
Canada's dollar rose for a second day after a government report showed employers added more jobs last month than economists forecast. The currency rose 0.6 percent against the U.S. dollar.
New Zealand's dollar headed for its third straight weekly gain on the prospect interest rates will stay high as the nation's central bank battles inflation. Reserve Bank Governor Alan Bollard left the official cash rate at a record 8.25 percent yesterday, saying annual inflation may exceed the bank's 1 percent to 3 percent band until March 2009.
Scheduled Economic Reports (Next Week)
Wholesale Inventories, FOMC Meeting, Trade Balance, Import Price Index, Federal Budget, Producer Price Index, Retail Sales, Inventories, Consumer Price Index, Industrial Production, Capacity Utilization
In Earnings News
Kellwood Co. (KWD) reported a loss of $1.1 million, or 4 cents per share, versus profit of $8.1 million, or 31 cents per share in the prior year quarter.
And Palm Inc. (PALM) said it will post a net loss of 8 to 10 cents a share - excluding certain charges -- while analysts expected earnings of 4 cents a share.
Scheduled Earnings Reports (Next Week)
The third quarter earning season is coming to an end and next week?s schedule is a little short?.some of the marquee names include H&R Block, Vail Resorts, John Wiley & Sons, Cooper Companies, Kroger, CKE Restaurants, Ciena, Costco Wholesale, and Lehman Brothers
Stocks in the News
Fannie Mae (FNM) said it priced a sale of $7 billion in new preferred shares as the mortgage giant bolsters its capital after suffering subprime-related losses.
Halliburton (HAL) said Chief Operating Officer Andrew Lane is retiring and it will eliminate the position.
Yum Brands (YUM) said it expects earnings growth of at least 10% for 2008.
And Smith & Wesson (SWHC) posted a second-quarter profit of $2.94 million, or 7 cents a share, up from $2.85 million, or 7 cents a share, a year ago.
Friday, December 7, 2007
Thursday, December 6, 2007
The PremiereTrade Market Wrap for 12/06/07
The European Central Bank held its benchmark rate unchanged at 4 percent, despite surging inflation and a stronger euro. Earlier, The Bank of England cut its key rate by a quarter of a point to 5.5 percent, worried about a slowing economy.
The Labor Department reported that applications for jobless benefits dipped by 15,000 last week to a total of 338,000. The decline was the largest since the level of claims had dipped by 22,000 in the first week of September.
The holiday shopping season got off to an uneasy start despite a big Thanksgiving weekend as consumers took advantage of big discounts and then pulled back, leaving retailers with mixed sales results for November. According to Thomson Financial, only seven merchants beat sales estimates, while 19 missed expectations.
Dell (DELL) announced that it will sell a variety of XPS and Inspiron notebooks and desktop computers through Best Buy (BBY) in the next few weeks.
Chevron (CVX) said its capital spending budget for 2008 will weigh in at $22.9 billion, up 15% from $20 billion last year.
Coca-Cola Co. (KO) named President and Chief Operating Officer Muhtar Kent to succeed E. Neville Isdell as chief executive officer in July. Kent has worked at Coca-Cola or its bottlers since 1978.
In Forex News
According to the Organization for Economic Cooperation and Development, China should let its currency rise faster to help it counter overheating in its booming economy. The OECD's latest Economic Outlook raised its forecast for China's economic growth this year to 11.4 percent, up from the earlier estimate of 10.4 percent. The economy grew 11.5 percent in the third quarter from the same period a year ago.
The report by the Paris-based OECD, an international non-governmental organization that collects and studies economic statistics and social data, said China's controls on its currency were hampering efforts to slow growth and ease inflation.
Beijing has pledged to loosen controls that keep the yuan trading in a narrow range, but says the country's developing markets and financial institutions require a stable currency. Meanwhile, the yuan has weakened against the euro, prompting complaints from EU trading partners about China's growing trade surpluses with that region. While the report did not directly criticize China's foreign exchange controls, it noted that efforts to tighten money supply to counter inflation were not having much impact.
Scheduled Economic Reports (Friday)
Non-Farm Payrolls (Nov), University of Michigan Consumer Sentiment (DEC), Consumer Credit (Oct)
In Earnings News
Toll Brothers (TOL) reported a net loss of $81.8 million, or 52 cents per share, for the three months ending Oct. 31, compared with a net income of $173.8 million, or $1.07 per share, a year ago.
And Krispy Kreme Doughnuts Inc. (KKD) said its net loss narrowed to $798,000, or 1 cent per share, compared to a net loss of $7.2 million, or 12 cents per share, a year earlier.
Eli Lilly & Co. (LLY) said it was holding onto its 2007 sales and earnings guidance and forecast 2008 earnings between $3.85 and $4 a share.
Scheduled Earnings Reports (Friday)
Kellwood Company, Star Gas Partners, Schick Technologies, C&D Technologies
Stocks in the News
Novastar Financial (NFI) said Wachovia extended until Dec. 7 a waiver of a covenant requiring the company to maintain a certain adjusted tangible net worth.
Conagra Foods (CAG) said earnings from continuing operations for the second quarter, ended Nov. 25, will be higher than planned.
And General Dynamics (GD) plans to buy back as many as 10 million, or 2.5%, of the 402 million shares outstanding.
The Labor Department reported that applications for jobless benefits dipped by 15,000 last week to a total of 338,000. The decline was the largest since the level of claims had dipped by 22,000 in the first week of September.
The holiday shopping season got off to an uneasy start despite a big Thanksgiving weekend as consumers took advantage of big discounts and then pulled back, leaving retailers with mixed sales results for November. According to Thomson Financial, only seven merchants beat sales estimates, while 19 missed expectations.
Dell (DELL) announced that it will sell a variety of XPS and Inspiron notebooks and desktop computers through Best Buy (BBY) in the next few weeks.
Chevron (CVX) said its capital spending budget for 2008 will weigh in at $22.9 billion, up 15% from $20 billion last year.
Coca-Cola Co. (KO) named President and Chief Operating Officer Muhtar Kent to succeed E. Neville Isdell as chief executive officer in July. Kent has worked at Coca-Cola or its bottlers since 1978.
In Forex News
According to the Organization for Economic Cooperation and Development, China should let its currency rise faster to help it counter overheating in its booming economy. The OECD's latest Economic Outlook raised its forecast for China's economic growth this year to 11.4 percent, up from the earlier estimate of 10.4 percent. The economy grew 11.5 percent in the third quarter from the same period a year ago.
The report by the Paris-based OECD, an international non-governmental organization that collects and studies economic statistics and social data, said China's controls on its currency were hampering efforts to slow growth and ease inflation.
Beijing has pledged to loosen controls that keep the yuan trading in a narrow range, but says the country's developing markets and financial institutions require a stable currency. Meanwhile, the yuan has weakened against the euro, prompting complaints from EU trading partners about China's growing trade surpluses with that region. While the report did not directly criticize China's foreign exchange controls, it noted that efforts to tighten money supply to counter inflation were not having much impact.
Scheduled Economic Reports (Friday)
Non-Farm Payrolls (Nov), University of Michigan Consumer Sentiment (DEC), Consumer Credit (Oct)
In Earnings News
Toll Brothers (TOL) reported a net loss of $81.8 million, or 52 cents per share, for the three months ending Oct. 31, compared with a net income of $173.8 million, or $1.07 per share, a year ago.
And Krispy Kreme Doughnuts Inc. (KKD) said its net loss narrowed to $798,000, or 1 cent per share, compared to a net loss of $7.2 million, or 12 cents per share, a year earlier.
Eli Lilly & Co. (LLY) said it was holding onto its 2007 sales and earnings guidance and forecast 2008 earnings between $3.85 and $4 a share.
Scheduled Earnings Reports (Friday)
Kellwood Company, Star Gas Partners, Schick Technologies, C&D Technologies
Stocks in the News
Novastar Financial (NFI) said Wachovia extended until Dec. 7 a waiver of a covenant requiring the company to maintain a certain adjusted tangible net worth.
Conagra Foods (CAG) said earnings from continuing operations for the second quarter, ended Nov. 25, will be higher than planned.
And General Dynamics (GD) plans to buy back as many as 10 million, or 2.5%, of the 402 million shares outstanding.
Wednesday, December 5, 2007
The PremiereTrade Market Wrap for 12/05/07
Congressional aides say the Bush administration has hammered out an agreement with industry to freeze interest rates for certain subprime mortgages for five years in an effort to combat a soaring tide of foreclosures.
The Mortgage Bankers Association's index of applications to buy a home or refinance a loan increased 22.5 percent to 791.8, the highest level since July 2005.
Productivity in the non-farm business sector increased at a 6.3% annual rate in the quarter. A month ago, the government reported that productivity rose 4.9% annualized.
The ISM non-manufacturing index fell to 54.1% from 55.8% in October. The drop was larger than expected. Economists were looking the index to decline to 55.0%.
The Commerce Department reported that factory orders advanced by 0.5 percent in October, far better than the flat reading that had been expected.
ADP Employer Services reported that companies in the U.S. added 189,000 jobs in November, more than economists had forecast.
The Organization of Petroleum Exporting Countries decided to keep production unchanged. Reports from Abu Dhabi indicated that OPEC left output at current levels, with a meeting scheduled next month to discuss policy again.
U.S. retailers' sales rose 2.5 percent last month, starting off what may be the slowest-growing holiday shopping season in five years. Consumers scaled back purchases in the last week of November following Thanksgiving weekend discounts.
In Forex News
The British pound dropped sharply, as traders bet that the Bank of England will follow in the Bank of Canada's footsteps and cut its base interest rate tomorrow. The increasingly dovish stance in currency markets comes after measures released today showed declines in house prices, services-sector sentiment and consumer confidence.
The European Central Bank, which also decides interest rates tomorrow, isn't facing the same pressure to cut interest rates, with euro-zone inflation running at 3%.
Separately, the Australian dollar was lower against rivals after the Reserve Bank of Australia held interest rates unchanged but gave a more dovish outlook than it did in the preceding month.
According to Xinhua News Agency Reports, China will shift its monetary policy "from prudent to tight" in 2008 to prevent its already hot economy from overheating and to try to contain accelerating inflation that threatens social stability. Xinhua said the decision was made at a closed-door economic conference, which the country's Communist Party leaders hold every December to draft policy for the coming year.
Scheduled Economic Reports (Thursday)
Initial Jobless Claims (Week of Dec 1st)
In Earnings News
Sanderson Farms (SAFM) reported profit well above its year-ago results, although earnings still missed Wall Street expectations by a penny per share mainly due to squeezed margins.
Neiman Marcus, Inc. reported total revenues of $1.13 billion compared to $1.04 billion in the prior year.
And the Isle of Capri Casinos (ISLE) reported a quarterly loss of $24.6 million, or 80 cents per share. Excluding one-time items, the company posted a loss of 45 cents per share. Analysts expected a loss of 4 cents per share.
Scheduled Earnings Reports (Thursday)
Korn Ferry International, Toll Brothers, Fleetwood Enterprises, Hooker Furniture, Movado Group, Dave & Busters, and Smith & Wesson
Stocks in the News
Collective Brands? (PSS) fiscal third-quarter net income fell to $25.5 million or 39 cents a share, from $28.9 million, or 43 cents a share, a year earlier.
Intel (INTC) was upgraded to overweight from market weight with the broker seeing PC strength and benign selling price pressure next year.
Prudential Financial Inc (PRU) and India's real-estate developer DLF Group agreed to form a joint venture in Mumbai.
The Mortgage Bankers Association's index of applications to buy a home or refinance a loan increased 22.5 percent to 791.8, the highest level since July 2005.
Productivity in the non-farm business sector increased at a 6.3% annual rate in the quarter. A month ago, the government reported that productivity rose 4.9% annualized.
The ISM non-manufacturing index fell to 54.1% from 55.8% in October. The drop was larger than expected. Economists were looking the index to decline to 55.0%.
The Commerce Department reported that factory orders advanced by 0.5 percent in October, far better than the flat reading that had been expected.
ADP Employer Services reported that companies in the U.S. added 189,000 jobs in November, more than economists had forecast.
The Organization of Petroleum Exporting Countries decided to keep production unchanged. Reports from Abu Dhabi indicated that OPEC left output at current levels, with a meeting scheduled next month to discuss policy again.
U.S. retailers' sales rose 2.5 percent last month, starting off what may be the slowest-growing holiday shopping season in five years. Consumers scaled back purchases in the last week of November following Thanksgiving weekend discounts.
In Forex News
The British pound dropped sharply, as traders bet that the Bank of England will follow in the Bank of Canada's footsteps and cut its base interest rate tomorrow. The increasingly dovish stance in currency markets comes after measures released today showed declines in house prices, services-sector sentiment and consumer confidence.
The European Central Bank, which also decides interest rates tomorrow, isn't facing the same pressure to cut interest rates, with euro-zone inflation running at 3%.
Separately, the Australian dollar was lower against rivals after the Reserve Bank of Australia held interest rates unchanged but gave a more dovish outlook than it did in the preceding month.
According to Xinhua News Agency Reports, China will shift its monetary policy "from prudent to tight" in 2008 to prevent its already hot economy from overheating and to try to contain accelerating inflation that threatens social stability. Xinhua said the decision was made at a closed-door economic conference, which the country's Communist Party leaders hold every December to draft policy for the coming year.
Scheduled Economic Reports (Thursday)
Initial Jobless Claims (Week of Dec 1st)
In Earnings News
Sanderson Farms (SAFM) reported profit well above its year-ago results, although earnings still missed Wall Street expectations by a penny per share mainly due to squeezed margins.
Neiman Marcus, Inc. reported total revenues of $1.13 billion compared to $1.04 billion in the prior year.
And the Isle of Capri Casinos (ISLE) reported a quarterly loss of $24.6 million, or 80 cents per share. Excluding one-time items, the company posted a loss of 45 cents per share. Analysts expected a loss of 4 cents per share.
Scheduled Earnings Reports (Thursday)
Korn Ferry International, Toll Brothers, Fleetwood Enterprises, Hooker Furniture, Movado Group, Dave & Busters, and Smith & Wesson
Stocks in the News
Collective Brands? (PSS) fiscal third-quarter net income fell to $25.5 million or 39 cents a share, from $28.9 million, or 43 cents a share, a year earlier.
Intel (INTC) was upgraded to overweight from market weight with the broker seeing PC strength and benign selling price pressure next year.
Prudential Financial Inc (PRU) and India's real-estate developer DLF Group agreed to form a joint venture in Mumbai.
Tuesday, December 4, 2007
The PremiereTrade Market Wrap for 12/04/07
According to a survey from the International Council of Shopping Centers and UBS Securities, chain-store sales for the week ended Dec. 1st rose 3.1% from the year-ago period. On a week-over-week basis, sales dropped 2%.
Oil prices rose a bit today as investors placed bets on whether OPEC oil ministers would increase production during a meeting later this week. High prices were supported by comments from Iranian President Mahmoud Ahmadinejad that he opposes a production increase by the Organization of Petroleum Exporting Countries, as well as Libya's oil chief who said he does not think the cartel will raise output.
Yahoo Japan Corp. and eBay Inc. (EBAY) agreed to team up in online auctions, planning services for next year that will make it easier for consumers to buy things over the Internet from the U.S. and Japan. The move marks a return to Japan of eBay, which pulled out of the market in 2002.
Dow Chemical Co. (DOW) will close several operations, cutting 1,000 jobs, as part of its effort to improve the cost effectiveness of its global operations.
Cerberus Capital Management LP and H&R Block Inc. (HRB) announced they terminated their agreement for Cerberus to purchase H&R Block's mortgage subsidiary, which has now stopped accepting new mortgage applications.
In Forex News
The yen rose against the dollar and euro after comments from U.S. Treasury Secretary Henry Paulson failed to revive credit-market confidence, prompting traders to sell higher-yielding assets bought with loans from Japan. The yen advanced against 15 of the 16 most-active traded currencies after equity markets in Europe and Asia fell and U.S. stock-index futures slipped.
The euro was up against the dollar and the pound after a report showed European producer-price inflation accelerated in October to the fastest pace this year, stoking speculation the European Central Bank won't be able to cut interest rates.
The Bank of Canada said it's cutting its target rate by a quarter-point to 4.25%, citing inflation figures that were below expectations and downside risks to the bank's inflation projection. Officials said that global financial market difficulties related to the valuation of structured products and anticipated losses on U.S. sub-prime mortgages have worsened since mid-October, and are expected to persist for a longer period of time.
Scheduled Economic Reports (Wednesday)
Productivity (Q3), ISM Non-Manufacturing (Nov), Factory Orders (Oct)
In Earnings News
Nokia (NOK), the world's biggest maker of mobile phones, raised its forecast for profit margins while predicting a further decline in selling prices next year.
Merck & Co. (MRK) forecast higher profit for next year as it plans to boost sales of its cervical cancer vaccine and diabetes pill to offset lost revenue to cheaper generic competition.
AutoZone Inc. (AZO) said fiscal first-quarter earnings rose 7 percent on an increase in sales, particularly of parts with high profit margins.
Sanderson Farms Inc. (SAFM) said its fourth-quarter profit more than doubled due to higher chicken prices.
Scheduled Earnings Reports (Wednesday)
Casella Waste Systems, Neiman Marcus, Casey?s General Stores, Novell
Stocks in the News
Philips-Van Heusen?s (PVH) third-quarter net income rose to $60.8 million, or $1.05 a share, from $50.8 million, or 89 cents a share, in the prior-year period
AFC Enterprises (AFCE) named a director, John Cranor, chairman to succeed Frank Belatti, who is retiring.
Tower Semiconductor (TSEM) said that in an effort to increase profitability, it would cut jobs, diversify its sources of materials and parts.
Oil prices rose a bit today as investors placed bets on whether OPEC oil ministers would increase production during a meeting later this week. High prices were supported by comments from Iranian President Mahmoud Ahmadinejad that he opposes a production increase by the Organization of Petroleum Exporting Countries, as well as Libya's oil chief who said he does not think the cartel will raise output.
Yahoo Japan Corp. and eBay Inc. (EBAY) agreed to team up in online auctions, planning services for next year that will make it easier for consumers to buy things over the Internet from the U.S. and Japan. The move marks a return to Japan of eBay, which pulled out of the market in 2002.
Dow Chemical Co. (DOW) will close several operations, cutting 1,000 jobs, as part of its effort to improve the cost effectiveness of its global operations.
Cerberus Capital Management LP and H&R Block Inc. (HRB) announced they terminated their agreement for Cerberus to purchase H&R Block's mortgage subsidiary, which has now stopped accepting new mortgage applications.
In Forex News
The yen rose against the dollar and euro after comments from U.S. Treasury Secretary Henry Paulson failed to revive credit-market confidence, prompting traders to sell higher-yielding assets bought with loans from Japan. The yen advanced against 15 of the 16 most-active traded currencies after equity markets in Europe and Asia fell and U.S. stock-index futures slipped.
The euro was up against the dollar and the pound after a report showed European producer-price inflation accelerated in October to the fastest pace this year, stoking speculation the European Central Bank won't be able to cut interest rates.
The Bank of Canada said it's cutting its target rate by a quarter-point to 4.25%, citing inflation figures that were below expectations and downside risks to the bank's inflation projection. Officials said that global financial market difficulties related to the valuation of structured products and anticipated losses on U.S. sub-prime mortgages have worsened since mid-October, and are expected to persist for a longer period of time.
Scheduled Economic Reports (Wednesday)
Productivity (Q3), ISM Non-Manufacturing (Nov), Factory Orders (Oct)
In Earnings News
Nokia (NOK), the world's biggest maker of mobile phones, raised its forecast for profit margins while predicting a further decline in selling prices next year.
Merck & Co. (MRK) forecast higher profit for next year as it plans to boost sales of its cervical cancer vaccine and diabetes pill to offset lost revenue to cheaper generic competition.
AutoZone Inc. (AZO) said fiscal first-quarter earnings rose 7 percent on an increase in sales, particularly of parts with high profit margins.
Sanderson Farms Inc. (SAFM) said its fourth-quarter profit more than doubled due to higher chicken prices.
Scheduled Earnings Reports (Wednesday)
Casella Waste Systems, Neiman Marcus, Casey?s General Stores, Novell
Stocks in the News
Philips-Van Heusen?s (PVH) third-quarter net income rose to $60.8 million, or $1.05 a share, from $50.8 million, or 89 cents a share, in the prior-year period
AFC Enterprises (AFCE) named a director, John Cranor, chairman to succeed Frank Belatti, who is retiring.
Tower Semiconductor (TSEM) said that in an effort to increase profitability, it would cut jobs, diversify its sources of materials and parts.
Monday, December 3, 2007
The PremiereTrade Market Wrap for 12/03/07
U.S. manufacturing expanded in November as new orders and production improved, but the pace of growth was a touch weaker than the prior month. The Institute for Supply Management reported that its manufacturing index registered 50.8 last month, down from 50.9 in October.
If you've got a 7% adjustable mortgage that's about to skyrocket past 10%, getting a break may get a lot easier. One solution to the foreclosure problem gaining traction would freeze rates at lower levels. The Hope Now Alliance, coalition of lenders, servicers, investors and community groups, put together by the Treasury Department, is working on a version of a freeze that could be announced later this week.
Lennar Corp. (LEN) has sold a property portfolio to a new venture mostly owned by an affiliate Morgan Stanley (MS) for $525 million. As part of the deal, Lennar sold the entity about 11,000 home sites. The properties had a book value of about $1.3 billion.
Oil prices fell about $1 a barrel in a volatile market on speculation that OPEC may still boost output at this week?s meeting.
Lehman Brothers (LEH) said it plans to re-brand its Australian business, Grange Securities, to Lehman Brothers Australia as it seeks to build its brand name in the fast-growing region. It will also rename its Grange Asset Management arm Lehman Brothers Asset Management.
In Forex News
The yen rebounded from a two-week low against the dollar after Moody's Investors Service said it is preparing the biggest credit-rating cuts since subprime-mortgage defaults rocked financial markets.
The yen rose versus all 16 most-traded currencies as investors retreated from carry trades and sold higher-yielding assets bought with loans from Japan. The yen also advanced as Bank of Japan Governor signaled interest rates may have to rise.
At a time when everyone from billionaire investors such as Warren Buffett and Bill Gross to celebrities all want nothing to do with the dollar, a growing number of strategists say the stage is being set for a rally in 2008.
The U.S. budget and trade deficits are narrowing in tandem for the first time since 1995, when the currency gained 8 percent as measured by the Federal Reserve's U.S. Trade Weighted Dollar Index.
Scheduled Economic Reports (Tuesday)
None Scheduled
In Earnings News
MetLife (MET) forecast quarterly operating earnings per share between $1.40 and $1.45, up from $1.36 per share in the fourth quarter of 2006. Analysts expected $1.43 per share.
UnitedHealth Group (UNH) said it expects 2007 profit between $3.49 and $3.50 per share.
CH Energy Group (CHG) lowered its full-year earnings to the range of $2.50 to $2.70 a share.
Scheduled Earnings Reports (Tuesday)
AutoZone, Chico?s FAS, Layne Christensen, Payless ShoeSource, Sanderson Farms, Photronics
Stocks in the News
Activision (ATVI) traded higher after Vivendi said it will buy control of the videogame giant and merge its own game division into ATVI.
Jakks Pacific (JAKK) said the U.S. District Court for the Southern District of New York would dismiss a complaint filed against it by World Wrestling Entertainment Inc.
Goodrich Petroleum (GDP) launched a public offering for 5.2 million shares.
If you've got a 7% adjustable mortgage that's about to skyrocket past 10%, getting a break may get a lot easier. One solution to the foreclosure problem gaining traction would freeze rates at lower levels. The Hope Now Alliance, coalition of lenders, servicers, investors and community groups, put together by the Treasury Department, is working on a version of a freeze that could be announced later this week.
Lennar Corp. (LEN) has sold a property portfolio to a new venture mostly owned by an affiliate Morgan Stanley (MS) for $525 million. As part of the deal, Lennar sold the entity about 11,000 home sites. The properties had a book value of about $1.3 billion.
Oil prices fell about $1 a barrel in a volatile market on speculation that OPEC may still boost output at this week?s meeting.
Lehman Brothers (LEH) said it plans to re-brand its Australian business, Grange Securities, to Lehman Brothers Australia as it seeks to build its brand name in the fast-growing region. It will also rename its Grange Asset Management arm Lehman Brothers Asset Management.
In Forex News
The yen rebounded from a two-week low against the dollar after Moody's Investors Service said it is preparing the biggest credit-rating cuts since subprime-mortgage defaults rocked financial markets.
The yen rose versus all 16 most-traded currencies as investors retreated from carry trades and sold higher-yielding assets bought with loans from Japan. The yen also advanced as Bank of Japan Governor signaled interest rates may have to rise.
At a time when everyone from billionaire investors such as Warren Buffett and Bill Gross to celebrities all want nothing to do with the dollar, a growing number of strategists say the stage is being set for a rally in 2008.
The U.S. budget and trade deficits are narrowing in tandem for the first time since 1995, when the currency gained 8 percent as measured by the Federal Reserve's U.S. Trade Weighted Dollar Index.
Scheduled Economic Reports (Tuesday)
None Scheduled
In Earnings News
MetLife (MET) forecast quarterly operating earnings per share between $1.40 and $1.45, up from $1.36 per share in the fourth quarter of 2006. Analysts expected $1.43 per share.
UnitedHealth Group (UNH) said it expects 2007 profit between $3.49 and $3.50 per share.
CH Energy Group (CHG) lowered its full-year earnings to the range of $2.50 to $2.70 a share.
Scheduled Earnings Reports (Tuesday)
AutoZone, Chico?s FAS, Layne Christensen, Payless ShoeSource, Sanderson Farms, Photronics
Stocks in the News
Activision (ATVI) traded higher after Vivendi said it will buy control of the videogame giant and merge its own game division into ATVI.
Jakks Pacific (JAKK) said the U.S. District Court for the Southern District of New York would dismiss a complaint filed against it by World Wrestling Entertainment Inc.
Goodrich Petroleum (GDP) launched a public offering for 5.2 million shares.
Friday, November 30, 2007
The PremiereTrade Market Wrap for 11/30/07
According to the Chicago purchasing managers' index, most firms in the Chicago region were growing in November. The index improved to 52.9% in November from 49.7% in October.
The Commerce Department reported that consumer spending edged up 0.2 percent in October, the weakest showing since a similar increase in June. Individual incomes grew by just 0.2 percent last month, the poorest showing in six months. A gauge of core inflation tied to consumer spending edged up just 0.2 percent in October and is up only 1.9 percent over the past year.
Federal Reserve Chairman Ben Bernanke gave investors more reason to believe further interest rate cuts are on the way. In a speech late Thursday, Bernanke said tight credit conditions, the housing slump and high energy prices will probably create some "headwinds for the consumer in the months ahead."
Spending on U.S. construction projects resumed a decline in October, reversing two months of gains as outlays on homes and other private building projects fell. September's gain was previously estimated to be 0.3%.
ConocoPhillips (COP) said it submitted a proposal to develop a pipeline in Alaska that would transport about 4 billion cubic feet per day of natural gas to the United States and Canada. The company said it is "prepared to make significant investments, without state matching funds, to advance this project."
In Forex News
The yen fell against the dollar after a rally in global stocks prompted investors to buy higher- yielding assets with funds borrowed in Japan through a practice known as the carry trade.
The dollar headed for a third monthly decline against the euro as traders started to bet the Fed will lower the target overnight lending rate between banks by as much as half a percentage point next month to bolster economic growth. Also, the U.S. Dollar Index was set for a third monthly loss as the six members of the Gulf Cooperation Council that includes Saudi Arabia may consider relaxing their fixed exchange rates to the U.S. currency at a meeting in Qatar starting Dec. 3rd.
China's yuan had the biggest monthly gain since a link to the dollar was scrapped in July 2005 as European and U.S. officials stepped up a diplomatic offensive to seek faster appreciation. The Chinese currency strengthened this week as European Central Bank President Jean-Claude Trichet led a delegation that met leaders in Beijing to push for faster appreciation in the yuan.
Scheduled Economic Reports (Next Week)
ISM Manufacturing and Services Index (Nov), Productivity (Q3), Factory Orders (Oct), Non-Farm Payrolls (Nov), Consumer Sentiment (Dec)
In Earnings News
Dell (DELL) earned $766 million, or 34 cents per share, in the three months ended Nov. 2nd. Analysts were expecting the company to post profits of 35 cents.
Tiffany & Co.'s (TIF) said net income climbed to $98.9 million, or 71 cents per share.
Mentor Graphics (MENT) reported a third-quarter loss of $9.2 million, or 10 cents a share, from a year-earlier profit of $2.5 million, or 3 cents a share.
OmniVision Technologies (OVTI) fiscal second-quarter net income rose to $20.5 million, or 36 cents a share.
Scheduled Earnings Reports (Next Week)
Guess, Isle of Capri Casinos, Readers Digest, AutoZone, Layne Christensen, Payless Shoes, Sanderson Farms, Novell, Korn Ferry International, and Toll Brothers
Stocks in the News
Freddie Mac (FRE) priced its $6 billion fixed-to-floating rate non-convertible non-cumulative perpetual preferred stock at $25 a share.
McDonald?s (MCD) said it named Neil Golden chief marketing officer of McDonald's USA, effective April 1st.
And Morgan Stanley (MS) said Zoe Cruz is retiring as co-president.
The Commerce Department reported that consumer spending edged up 0.2 percent in October, the weakest showing since a similar increase in June. Individual incomes grew by just 0.2 percent last month, the poorest showing in six months. A gauge of core inflation tied to consumer spending edged up just 0.2 percent in October and is up only 1.9 percent over the past year.
Federal Reserve Chairman Ben Bernanke gave investors more reason to believe further interest rate cuts are on the way. In a speech late Thursday, Bernanke said tight credit conditions, the housing slump and high energy prices will probably create some "headwinds for the consumer in the months ahead."
Spending on U.S. construction projects resumed a decline in October, reversing two months of gains as outlays on homes and other private building projects fell. September's gain was previously estimated to be 0.3%.
ConocoPhillips (COP) said it submitted a proposal to develop a pipeline in Alaska that would transport about 4 billion cubic feet per day of natural gas to the United States and Canada. The company said it is "prepared to make significant investments, without state matching funds, to advance this project."
In Forex News
The yen fell against the dollar after a rally in global stocks prompted investors to buy higher- yielding assets with funds borrowed in Japan through a practice known as the carry trade.
The dollar headed for a third monthly decline against the euro as traders started to bet the Fed will lower the target overnight lending rate between banks by as much as half a percentage point next month to bolster economic growth. Also, the U.S. Dollar Index was set for a third monthly loss as the six members of the Gulf Cooperation Council that includes Saudi Arabia may consider relaxing their fixed exchange rates to the U.S. currency at a meeting in Qatar starting Dec. 3rd.
China's yuan had the biggest monthly gain since a link to the dollar was scrapped in July 2005 as European and U.S. officials stepped up a diplomatic offensive to seek faster appreciation. The Chinese currency strengthened this week as European Central Bank President Jean-Claude Trichet led a delegation that met leaders in Beijing to push for faster appreciation in the yuan.
Scheduled Economic Reports (Next Week)
ISM Manufacturing and Services Index (Nov), Productivity (Q3), Factory Orders (Oct), Non-Farm Payrolls (Nov), Consumer Sentiment (Dec)
In Earnings News
Dell (DELL) earned $766 million, or 34 cents per share, in the three months ended Nov. 2nd. Analysts were expecting the company to post profits of 35 cents.
Tiffany & Co.'s (TIF) said net income climbed to $98.9 million, or 71 cents per share.
Mentor Graphics (MENT) reported a third-quarter loss of $9.2 million, or 10 cents a share, from a year-earlier profit of $2.5 million, or 3 cents a share.
OmniVision Technologies (OVTI) fiscal second-quarter net income rose to $20.5 million, or 36 cents a share.
Scheduled Earnings Reports (Next Week)
Guess, Isle of Capri Casinos, Readers Digest, AutoZone, Layne Christensen, Payless Shoes, Sanderson Farms, Novell, Korn Ferry International, and Toll Brothers
Stocks in the News
Freddie Mac (FRE) priced its $6 billion fixed-to-floating rate non-convertible non-cumulative perpetual preferred stock at $25 a share.
McDonald?s (MCD) said it named Neil Golden chief marketing officer of McDonald's USA, effective April 1st.
And Morgan Stanley (MS) said Zoe Cruz is retiring as co-president.
Thursday, November 29, 2007
The PremiereTrade Market Wrap for 11/29/07
A Department of Commerce report showed that new home sales rose 1.7 percent, but lower than expected, to an annual rate of 728,000 units in October from a revised 716,000 unit rate in the previous month. Economists had expected sales to come in at 750,000.
The Labor Department reported that new applications filed for unemployment insurance rose by a seasonally adjusted 23,000 to 352,000. It was the highest level since Feb. 10th.
The U.S. economy expanded at the fastest pace in four years in the third quarter, growing at a real annual rate of 4.9%. The upward revision to gross domestic product was due to larger inventory building and a better trade balance. It was in line with Wall Street expectations.
U.S. fixed-rate mortgages fell again in the latest week. The national average interest rate on the benchmark 30-year, fixed-rate loan averaged 6.10%
in the week ending Thursday.
U.S. foreclosure filings nearly doubled in October from the same month last year, the latest sign many homeowners are falling behind on mortgage payments and increasingly losing their homes.
E-Trade Financial Corp. (ETFC) disclosed it is getting a $2.5 billion capital infusion from a group led by Citadel Investment Group and said Mitchell H. Caplan has stepped down as its chief executive.
In Forex News
The dollar rose as investors bet that the likelihood of more U.S. interest rate cuts will help avoid a recession and attract more dollar-positive inflows into the U.S. equity market. Traders said moves were exaggerated by low liquidity, with some currency investors -- especially those who are in profit for 2007 so far -- showing reluctance to take new positions.
Canada's dollar fell the most in almost two weeks on signs currency appreciation has damped exporter competitiveness, slowing economic growth. A government report showed today Canada's current-account surplus at its lowest since third quarter 2003.
Goldman Sachs Group Inc. said the top trade for 2008 will be selling the dollar against a basket of currencies from Malaysia, Singapore and Taiwan as Asian central banks allow faster currency appreciation. Goldman, in its annual selection of the top 10 trades, also recommended that investors sell the pound against the yen as U.K. growth slows, pushing the Bank of England to cut its benchmark interest rate from 5.75 percent. Goldman?s Chief Economist believes the dollar's decline has reached a limit.
Scheduled Economic Reports (Friday)
Personal Income & Spending (Oct), Core Inflation (Oct), Chicago PMI (Nov), Construction Spending (Oct)
In Earnings News
Sears Holdings Corp. (SHLD) reported a 99 percent drop in third-quarter profit on weak sales at its Sears and Kmart department stores. For the first three quarters, profits were $394 million, or $2.66 per share.
H.J. Heinz Co. (HNZ) reported net income rose to $227 million, or 71 cents per share, for the three months ended in October.
Smithfield Foods Inc. (SFD) said its fiscal second-quarter profit dropped 61 percent. For the quarter ended Oct. 28th, net income fell to $17.4 million, or 13 cents per share.
TiVo Inc.'s (TIVO) narrower third-quarter loss is a welcome sign of progress for the maker of digital video recorders. TiVo on said posted a loss of $8.2 million, or 8 cents per share. Analysts expected a loss of 13 cents per share.
Scheduled Earnings Reports (Friday)
Big Lots, Kirklands, Tiffany, Eagle Broadband, Krispy Kreme Doughnuts
Stocks in the News
General Motors (GM) was upgraded to peer perform from underperform at Bear Stearns, with the broker citing a more balanced near-term risk/reward ratio.
Anadarko Petroleum (APC) said it increased its fourth-quarter and full-year production outlook.
Men's Warehouse (MW) reported its third-quarter net income rose from a year ago but issued a profit projection that fell short of Wall Street's target.
The Labor Department reported that new applications filed for unemployment insurance rose by a seasonally adjusted 23,000 to 352,000. It was the highest level since Feb. 10th.
The U.S. economy expanded at the fastest pace in four years in the third quarter, growing at a real annual rate of 4.9%. The upward revision to gross domestic product was due to larger inventory building and a better trade balance. It was in line with Wall Street expectations.
U.S. fixed-rate mortgages fell again in the latest week. The national average interest rate on the benchmark 30-year, fixed-rate loan averaged 6.10%
in the week ending Thursday.
U.S. foreclosure filings nearly doubled in October from the same month last year, the latest sign many homeowners are falling behind on mortgage payments and increasingly losing their homes.
E-Trade Financial Corp. (ETFC) disclosed it is getting a $2.5 billion capital infusion from a group led by Citadel Investment Group and said Mitchell H. Caplan has stepped down as its chief executive.
In Forex News
The dollar rose as investors bet that the likelihood of more U.S. interest rate cuts will help avoid a recession and attract more dollar-positive inflows into the U.S. equity market. Traders said moves were exaggerated by low liquidity, with some currency investors -- especially those who are in profit for 2007 so far -- showing reluctance to take new positions.
Canada's dollar fell the most in almost two weeks on signs currency appreciation has damped exporter competitiveness, slowing economic growth. A government report showed today Canada's current-account surplus at its lowest since third quarter 2003.
Goldman Sachs Group Inc. said the top trade for 2008 will be selling the dollar against a basket of currencies from Malaysia, Singapore and Taiwan as Asian central banks allow faster currency appreciation. Goldman, in its annual selection of the top 10 trades, also recommended that investors sell the pound against the yen as U.K. growth slows, pushing the Bank of England to cut its benchmark interest rate from 5.75 percent. Goldman?s Chief Economist believes the dollar's decline has reached a limit.
Scheduled Economic Reports (Friday)
Personal Income & Spending (Oct), Core Inflation (Oct), Chicago PMI (Nov), Construction Spending (Oct)
In Earnings News
Sears Holdings Corp. (SHLD) reported a 99 percent drop in third-quarter profit on weak sales at its Sears and Kmart department stores. For the first three quarters, profits were $394 million, or $2.66 per share.
H.J. Heinz Co. (HNZ) reported net income rose to $227 million, or 71 cents per share, for the three months ended in October.
Smithfield Foods Inc. (SFD) said its fiscal second-quarter profit dropped 61 percent. For the quarter ended Oct. 28th, net income fell to $17.4 million, or 13 cents per share.
TiVo Inc.'s (TIVO) narrower third-quarter loss is a welcome sign of progress for the maker of digital video recorders. TiVo on said posted a loss of $8.2 million, or 8 cents per share. Analysts expected a loss of 13 cents per share.
Scheduled Earnings Reports (Friday)
Big Lots, Kirklands, Tiffany, Eagle Broadband, Krispy Kreme Doughnuts
Stocks in the News
General Motors (GM) was upgraded to peer perform from underperform at Bear Stearns, with the broker citing a more balanced near-term risk/reward ratio.
Anadarko Petroleum (APC) said it increased its fourth-quarter and full-year production outlook.
Men's Warehouse (MW) reported its third-quarter net income rose from a year ago but issued a profit projection that fell short of Wall Street's target.
Wednesday, November 28, 2007
The PremiereTrade Market Wrap for 11/28/07
Federal Reserve Vice Chairman Donald Kohn said recent market ``turbulence'' may reduce credit to businesses and consumers, suggesting he sees higher risks to economic growth than a month ago. Kohn's remarks indicate the performance of credit markets since the October Federal Open Market Committee meeting has shaped his outlook for growth and inflation.
The Commerce Department reported that orders for durable goods declined 0.4 percent last month, a weaker showing than expected.
Sales of existing homes fell further in October even as more homes came on the market, driving the supply of homes to the highest level in 22 years. The National Association of Realtors reported sales dropped 1.2% to a 4.97 million seasonally adjusted annualized pace in October.
Freddie Mac's (FRE) planned sale of $6 billion in special stock to help shore up its battered finances will be closely watched by investors gauging the damage inflicted by the turmoil this year in the credit and housing markets.
American consumers jammed online shopping sites on Monday, the official start of the holiday season for e-tailers, resulting in robust sales. Consumers spent $733 million online on Monday, a 21 percent gain from the same day a year ago. Analysts had expected that sales would exceed the $700 million figure.
According the trade group Mortgage Bankers Association's weekly application survey, mortgage application volume fell 4.3 percent during the week ending Nov. 23.
Al Hubbard, chairman of President Bush's National Economic Council, announced that he's leaving his post, joining a growing line of top presidential advisers exiting the White House as the Bush administration heads into its final year.
In Forex News
The dollar gained strength following the release of a consumer data report that showed the fourth consecutive month of slipping consumer confidence in Germany, Europe's largest economy.
The euro hit an all-time high on Friday, the latest in a string of recent records triggered by worries about credit and instability in the United States. A research group reported that consumer confidence in Germany fell for the fourth consecutive month despite the end-of-the-year holiday season, driven by fears surrounding the strong euro and high prices. That, and other economic developments, has led to speculation that the ECB will leave rates unchanged at its next meeting -- supporting the dollar.
The dollar fell versus the yen in Asia as short-term investors sold the greenback after a drop in Japanese stocks. The U.S. dollar climbed in early trade above 109 yen for the first time since last week but then dropped back a bit. Japanese stocks' failure to build on Wall Street's overnight gains prompted players to sell the U.S. currency for yen to cut their risk. Selling by Japanese exporters also pushed the dollar lower.
Scheduled Economic Reports (Thursday)
Initial Jobless Claims (Week of Nov 24th), Gross Domestic Product (Q3), New Home Sales (Oct)
In Earnings News
Brown Shoe Company?s (BWS) net income for the quarter rose less than 1 percent to $27 million, or 61 cents per share.
CBRL Group (CBRL) net income for the quarter ended Nov. 2 fell to $13.9 million, or 57 cents per share.
Pep Boys - Manny, Moe & Jack (PBY) said it cut approximately 550 jobs and closed 31 stores as part of a five-year restructuring plan, while its third-quarter loss widened partly on declining merchandise sales.
Scheduled Earnings Reports (Thursday)
Dell, H.J. Heinz, Sears Holdings, American Woodmark, Del Monte Foods, Smithfield Foods, Michael?s Store, Wet Seal, Bon-Ton Stores
Stocks in the News
Analog Devices Inc (ADI) reported fourth-quarter net income fell 29% to $97.9 million, or 31 cents a share, from $138.4 million, or 39 cents, in the year-ago quarter.
Wells Fargo (WFC) will set aside $1.4 billion during the fourth quarter to cover higher losses on home-equity loans caused by deterioration in the real estate market.
Target Corp (TGT) traded higher after Moody's Investors Service downgraded the retailer's long-term rating on debt.
The Commerce Department reported that orders for durable goods declined 0.4 percent last month, a weaker showing than expected.
Sales of existing homes fell further in October even as more homes came on the market, driving the supply of homes to the highest level in 22 years. The National Association of Realtors reported sales dropped 1.2% to a 4.97 million seasonally adjusted annualized pace in October.
Freddie Mac's (FRE) planned sale of $6 billion in special stock to help shore up its battered finances will be closely watched by investors gauging the damage inflicted by the turmoil this year in the credit and housing markets.
American consumers jammed online shopping sites on Monday, the official start of the holiday season for e-tailers, resulting in robust sales. Consumers spent $733 million online on Monday, a 21 percent gain from the same day a year ago. Analysts had expected that sales would exceed the $700 million figure.
According the trade group Mortgage Bankers Association's weekly application survey, mortgage application volume fell 4.3 percent during the week ending Nov. 23.
Al Hubbard, chairman of President Bush's National Economic Council, announced that he's leaving his post, joining a growing line of top presidential advisers exiting the White House as the Bush administration heads into its final year.
In Forex News
The dollar gained strength following the release of a consumer data report that showed the fourth consecutive month of slipping consumer confidence in Germany, Europe's largest economy.
The euro hit an all-time high on Friday, the latest in a string of recent records triggered by worries about credit and instability in the United States. A research group reported that consumer confidence in Germany fell for the fourth consecutive month despite the end-of-the-year holiday season, driven by fears surrounding the strong euro and high prices. That, and other economic developments, has led to speculation that the ECB will leave rates unchanged at its next meeting -- supporting the dollar.
The dollar fell versus the yen in Asia as short-term investors sold the greenback after a drop in Japanese stocks. The U.S. dollar climbed in early trade above 109 yen for the first time since last week but then dropped back a bit. Japanese stocks' failure to build on Wall Street's overnight gains prompted players to sell the U.S. currency for yen to cut their risk. Selling by Japanese exporters also pushed the dollar lower.
Scheduled Economic Reports (Thursday)
Initial Jobless Claims (Week of Nov 24th), Gross Domestic Product (Q3), New Home Sales (Oct)
In Earnings News
Brown Shoe Company?s (BWS) net income for the quarter rose less than 1 percent to $27 million, or 61 cents per share.
CBRL Group (CBRL) net income for the quarter ended Nov. 2 fell to $13.9 million, or 57 cents per share.
Pep Boys - Manny, Moe & Jack (PBY) said it cut approximately 550 jobs and closed 31 stores as part of a five-year restructuring plan, while its third-quarter loss widened partly on declining merchandise sales.
Scheduled Earnings Reports (Thursday)
Dell, H.J. Heinz, Sears Holdings, American Woodmark, Del Monte Foods, Smithfield Foods, Michael?s Store, Wet Seal, Bon-Ton Stores
Stocks in the News
Analog Devices Inc (ADI) reported fourth-quarter net income fell 29% to $97.9 million, or 31 cents a share, from $138.4 million, or 39 cents, in the year-ago quarter.
Wells Fargo (WFC) will set aside $1.4 billion during the fourth quarter to cover higher losses on home-equity loans caused by deterioration in the real estate market.
Target Corp (TGT) traded higher after Moody's Investors Service downgraded the retailer's long-term rating on debt.
Tuesday, November 27, 2007
The PremiereTrade Market Wrap for 11/27/07
Prices of existing U.S. single-family homes slumped 4.5 percent in the third quarter from a year earlier, matching a record decline from the previous period as the housing downturn deepened.
Consumer confidence dropped to the lowest in two years in November as Americans struggled with surging fuel costs and falling home prices, economists project reports today will show. The consumer confidence index fell to 87.3 from 95.2, well below the 90.2 expected by economists.
The International Council of Shopping Centers-UBS Retail Chain Store Sales Index decreased by 0.1% in the week ended Nov. 24th from its level in the week before, on a seasonally adjusted, comparable-store basis.
According to a report compiled for the U.S. Conference of Mayors, rising foreclosures will lead to billions of dollars in lost economic activity next year in the nation's major metropolitan areas, but homeowners and financial institutions have the ability to work together to contain the effects. The report also stated that the current housing problem will drive down property values by $1.2 trillion next year and slash tax revenue by more than $6.6 billion.
Oil prices continued to fall on growing expectations that OPEC ministers will raise crude production following a meeting next week. Many traders believe Saudi Arabia is pushing for production increases against opposition from Iran, Venezuela and other OPEC members.
Sirius Satellite Radio Inc. (SIRI) announced that Ford Motor Co. (F) is looking to have its satellite radio services in approximately 70 percent of Ford and Mercury 2009 vehicles next year. More than 1 million Ford, Lincoln and Mercury cars have already shipped with factory-installed Sirius radios.
In Forex News
The premium for options on major economies' currencies over emerging ones fell from a four-year high as risk aversion increased amid speculation subprime mortgage-related losses will widen.
Emerging currency volatility is picking up relative to the majors amid concern a spreading economic slowdown will slow demand for the region's assets. Currencies in emerging countries, such as Brazil, have appreciated against the dollar this year. The swings in their exchange rates have trailed those of major currencies since September, when the Federal Reserve began cutting its benchmark overnight interest rate.
The dollar gained on the euro after last week's record lows as investors looked for clues as to what the European Central Bank might due with interest rates next week. In Asia, the dollar strengthened against the Japanese currency. Japanese authorities say the economy is recovering but are alert for possible fallout from the U.S. subprime mortgage crisis and high oil prices.
Scheduled Economic Reports (Wednesday)
Durable Goods (Oct), Existing Home Sales (Oct)
In Earnings News
Staples (SPLS) said net income for the three-month period ended Nov. 3rd was $274.5 million, or 38 cents per share.
American Eagle Outfitters Inc. (AEO) net income fell to $99.4 million, or 45 cents per share, from $100.9 million, or 44 cents per share in the prior year quarter.
Casual Male Retail Group Inc. (CMRG) reported a loss of $3.8 million, or 9 cents per share.
Scheduled Earnings Reports (Wednesday)
Jo-Ann Stores, TiVo, Coldwater Creek, Dollar Tree Store, Men?s Warehouse
Stocks in the News
Intuit Inc (INTU) will purchase Homestead Technologies Inc. for about $170 million.
Dick?s Sporting Goods (DKS) said it plans to buy closely held Chick's Sporting Goods for about $40 million.
Yahoo Inc (YHOO) said it had been suffering outages of its hosted online-shopping services during one of the busiest days of the year for Internet commerce.
Pulte Homes (PHM) affirmed its fourth-quarter pre-impairment earnings and cash-position outlooks, despite a weak housing market.
Consumer confidence dropped to the lowest in two years in November as Americans struggled with surging fuel costs and falling home prices, economists project reports today will show. The consumer confidence index fell to 87.3 from 95.2, well below the 90.2 expected by economists.
The International Council of Shopping Centers-UBS Retail Chain Store Sales Index decreased by 0.1% in the week ended Nov. 24th from its level in the week before, on a seasonally adjusted, comparable-store basis.
According to a report compiled for the U.S. Conference of Mayors, rising foreclosures will lead to billions of dollars in lost economic activity next year in the nation's major metropolitan areas, but homeowners and financial institutions have the ability to work together to contain the effects. The report also stated that the current housing problem will drive down property values by $1.2 trillion next year and slash tax revenue by more than $6.6 billion.
Oil prices continued to fall on growing expectations that OPEC ministers will raise crude production following a meeting next week. Many traders believe Saudi Arabia is pushing for production increases against opposition from Iran, Venezuela and other OPEC members.
Sirius Satellite Radio Inc. (SIRI) announced that Ford Motor Co. (F) is looking to have its satellite radio services in approximately 70 percent of Ford and Mercury 2009 vehicles next year. More than 1 million Ford, Lincoln and Mercury cars have already shipped with factory-installed Sirius radios.
In Forex News
The premium for options on major economies' currencies over emerging ones fell from a four-year high as risk aversion increased amid speculation subprime mortgage-related losses will widen.
Emerging currency volatility is picking up relative to the majors amid concern a spreading economic slowdown will slow demand for the region's assets. Currencies in emerging countries, such as Brazil, have appreciated against the dollar this year. The swings in their exchange rates have trailed those of major currencies since September, when the Federal Reserve began cutting its benchmark overnight interest rate.
The dollar gained on the euro after last week's record lows as investors looked for clues as to what the European Central Bank might due with interest rates next week. In Asia, the dollar strengthened against the Japanese currency. Japanese authorities say the economy is recovering but are alert for possible fallout from the U.S. subprime mortgage crisis and high oil prices.
Scheduled Economic Reports (Wednesday)
Durable Goods (Oct), Existing Home Sales (Oct)
In Earnings News
Staples (SPLS) said net income for the three-month period ended Nov. 3rd was $274.5 million, or 38 cents per share.
American Eagle Outfitters Inc. (AEO) net income fell to $99.4 million, or 45 cents per share, from $100.9 million, or 44 cents per share in the prior year quarter.
Casual Male Retail Group Inc. (CMRG) reported a loss of $3.8 million, or 9 cents per share.
Scheduled Earnings Reports (Wednesday)
Jo-Ann Stores, TiVo, Coldwater Creek, Dollar Tree Store, Men?s Warehouse
Stocks in the News
Intuit Inc (INTU) will purchase Homestead Technologies Inc. for about $170 million.
Dick?s Sporting Goods (DKS) said it plans to buy closely held Chick's Sporting Goods for about $40 million.
Yahoo Inc (YHOO) said it had been suffering outages of its hosted online-shopping services during one of the busiest days of the year for Internet commerce.
Pulte Homes (PHM) affirmed its fourth-quarter pre-impairment earnings and cash-position outlooks, despite a weak housing market.
Monday, November 26, 2007
The PremiereTrade Market Wrap for 11/26/07
According to a UBS poll, investor optimism about the outlook for U.S. financial markets fell this month to the lowest since September 2005 after concern grew that the world's biggest economy is headed into a recession. The Index of Investor Optimism dropped to 44 in November from 70 last month.
The Federal Reserve Bank of New York announced it will conduct a series of term repurchase agreements that will extend into the New Year "in response to heightened pressure in money markets for funding through the year-end." The first operation will be arranged and settle on Nov. 28th and mature on Jan. 10th next year for an amount of about $8 billion.
There are news reports that Citigroup (C), the top U.S. bank by assets, is planning major job cuts over the coming months. No exact number had yet been set, though some jobs were already being eliminated but it is estimated that the cuts could total anywhere between 17,000 and 45,000.
Prospective buyers of online brokerage E*Trade Financial (ETFC) are battling over the value of its weakening mortgage portfolio. Analysts have previously said E*Trade will have to pursue strategic alternatives, such as a deal of some assets, after large losses in its mortgage business.
Sears Holdings Corp. (SHLD) is considering a tender offer to buy Restoration Hardware Inc. for $6.75 per share but said it is prohibited by the company's refusal to provide confidential information.
Defying concerns about gasoline prices and macro-economics, shoppers gave U.S. retailers some relief after initial sales and traffic from Black Friday weekend indicated a solid start to their biggest selling season. Sales on Black Friday rose 8.3% to an estimated $10.3 billion.
In Forex News
The euro rose slightly against the U.S. dollar as traders consolidated their positions following a volatile week that saw new highs daily for the 13-nation currency. The euro, the pound and other currencies have been climbing steadily against the dollar since August amid fears for the health of the U.S. economy, stoked by the subprime credit crisis.
The dollar has been further weakened by interest rate cuts, which can be used to jump-start an economy, but can also weaken a currency as investors transfer funds to countries where they can earn higher returns. The Federal Reserve has already cut rates twice and speculation is growing that as the subprime fallout continues, it will be forced into another cut.
Markets remain in narrow range as the quiet start of the week continues. Some volatility is seen in the Japanese yen following a strong Asian stock market and after news that China is going to invest a portion of its Foreign Exchange reserves in Japanese stocks. But the impact is expected to be brief and volatility in the yen is anticipated to decrease after European stocks markets turn flat at the beginning of the week.
Scheduled Economic Reports (Tuesday)
Retail Chain Index (Week of Nov 17th), Housing Starts (Oct), Building Permits (Oct)
In Earnings News
SkillSoft PLC (SKIL) reported net income in the quarter ended Oct. 31 fell to $6 million, or 6 cents per share, from $7.1 million, or 7 cents per share, in the year-ago period.
TAT Technologies Ltd. (TATTF) third-quarter earnings rose to $26.1 million, or $3.98 per share, from $1.7 million, or 27 cents per share during the same quarter a year ago.
Newell Rubbermaid (NWL) cut back its sales targets for the fourth quarter and year, but maintained its profit view, as it struggles with weakness in the office products retail market.
Scheduled Earnings Reports (Tuesday)
Staples, American Eagle Outfitters, Jackson Hewitt Tax Services, Dress Barn, Pep Boys, Talbots, Marvell Technology
Stocks in the News
Sony (SNE) traded higher after Dubai International Capital, a unit of Dubai Holding, said it bought a stake in the Tokyo entertainment giant.
Rio Tinto (RTP) said it would lift the dividend in 2007, 2008 and 2009, increase its divestment target by more than 50%.
Countrywide Financial (CFC) has turned to the Federal Home Loan Bank in Atlanta as its major source of funding and the bank?s borrowing stands at $51.1 billion.
Freddie Mac (FRE) is expected to announce a share offering of as much as $5 billion early this week.
The Federal Reserve Bank of New York announced it will conduct a series of term repurchase agreements that will extend into the New Year "in response to heightened pressure in money markets for funding through the year-end." The first operation will be arranged and settle on Nov. 28th and mature on Jan. 10th next year for an amount of about $8 billion.
There are news reports that Citigroup (C), the top U.S. bank by assets, is planning major job cuts over the coming months. No exact number had yet been set, though some jobs were already being eliminated but it is estimated that the cuts could total anywhere between 17,000 and 45,000.
Prospective buyers of online brokerage E*Trade Financial (ETFC) are battling over the value of its weakening mortgage portfolio. Analysts have previously said E*Trade will have to pursue strategic alternatives, such as a deal of some assets, after large losses in its mortgage business.
Sears Holdings Corp. (SHLD) is considering a tender offer to buy Restoration Hardware Inc. for $6.75 per share but said it is prohibited by the company's refusal to provide confidential information.
Defying concerns about gasoline prices and macro-economics, shoppers gave U.S. retailers some relief after initial sales and traffic from Black Friday weekend indicated a solid start to their biggest selling season. Sales on Black Friday rose 8.3% to an estimated $10.3 billion.
In Forex News
The euro rose slightly against the U.S. dollar as traders consolidated their positions following a volatile week that saw new highs daily for the 13-nation currency. The euro, the pound and other currencies have been climbing steadily against the dollar since August amid fears for the health of the U.S. economy, stoked by the subprime credit crisis.
The dollar has been further weakened by interest rate cuts, which can be used to jump-start an economy, but can also weaken a currency as investors transfer funds to countries where they can earn higher returns. The Federal Reserve has already cut rates twice and speculation is growing that as the subprime fallout continues, it will be forced into another cut.
Markets remain in narrow range as the quiet start of the week continues. Some volatility is seen in the Japanese yen following a strong Asian stock market and after news that China is going to invest a portion of its Foreign Exchange reserves in Japanese stocks. But the impact is expected to be brief and volatility in the yen is anticipated to decrease after European stocks markets turn flat at the beginning of the week.
Scheduled Economic Reports (Tuesday)
Retail Chain Index (Week of Nov 17th), Housing Starts (Oct), Building Permits (Oct)
In Earnings News
SkillSoft PLC (SKIL) reported net income in the quarter ended Oct. 31 fell to $6 million, or 6 cents per share, from $7.1 million, or 7 cents per share, in the year-ago period.
TAT Technologies Ltd. (TATTF) third-quarter earnings rose to $26.1 million, or $3.98 per share, from $1.7 million, or 27 cents per share during the same quarter a year ago.
Newell Rubbermaid (NWL) cut back its sales targets for the fourth quarter and year, but maintained its profit view, as it struggles with weakness in the office products retail market.
Scheduled Earnings Reports (Tuesday)
Staples, American Eagle Outfitters, Jackson Hewitt Tax Services, Dress Barn, Pep Boys, Talbots, Marvell Technology
Stocks in the News
Sony (SNE) traded higher after Dubai International Capital, a unit of Dubai Holding, said it bought a stake in the Tokyo entertainment giant.
Rio Tinto (RTP) said it would lift the dividend in 2007, 2008 and 2009, increase its divestment target by more than 50%.
Countrywide Financial (CFC) has turned to the Federal Home Loan Bank in Atlanta as its major source of funding and the bank?s borrowing stands at $51.1 billion.
Freddie Mac (FRE) is expected to announce a share offering of as much as $5 billion early this week.
Wednesday, November 21, 2007
The PremiereTrade Market Wrap for 11/21/07
Slower growth for the economy may be on the horizon, continuing after the holidays, the Conference Board said, reporting that a gauge of future economic growth fell 0.5% in October. Only three of the 10 leading economic indicators rose in October, with the largest positive contribution from stock prices.
First-time seasonally adjusted claims for state unemployment benefits fell in the latest week. The number of initial claims in the week ending Nov. 17th fell 11,000 to 330,000. Wall Street economists had expected claims to hit 330,000. Jobless claims in the previous week were revised to 341,000.
Toyota Motor Corp. (TM) announced that it has raised its 2007 sales projection for China on solid sales of small cars and aims to sell even more vehicles there next year. Toyota may be on track to beat General Motors Corp. as the world's top automaker as soon as the end of the year.
U.S. Treasury Secretary Henry Paulson said the number of potential U.S. home-loan defaults "will be significantly bigger" in 2008 than in 2007.
Standard & Poor's expects the U.S. Federal Reserve to cut interest rates to 3.5 percent in 2008 to deal with the fallout from the housing market.
Friday is the biggest shopping day of the year ? Black Friday. Retail experts predict that high energy prices and credit woes may curtail the urge to shop like crazy during the holiday season. Some retail analysts believe people who have money are going to spend at least some of it on holiday goods but that might not happen until after "Black Friday.?
In Forex News Today
The yen rose to the highest level in more than two years against the dollar on concern widening credit-market losses and record fuel costs will slow global economic growth.
Currencies in Australia, South Africa, Brazil and New Zealand tumbled at least 2.4 percent versus the yen as investors exited higher-yielding assets funded by loans in Japan. The dollar rebounded from a record low against the euro as traders sought safety in Treasuries. Global stocks fell, crude oil rose above $99 a barrel and the cost to borrow dollars increased.
Australia's dollar declined 3.3 percent to 94.89 against the yen, extending this month's decline to 12 percent. New Zealand's dollar weakened 2.4 percent to 82.11 yen and South Korea's won declined 2.3 percent.
The dollar was little changed against the euro, after falling earlier to the lowest level since the European currency started trading in 1999. The U.S. currency gained the most against the Australian dollar and South African rand, rising 2.1 percent and 1.6 percent, respectively.
The pound weakened to the lowest level since 2003 against the euro and fell versus the dollar on speculation the Bank of England may start cutting borrowing costs from 5.75 percent as soon as next month. The pound fell 0.4 percent while losing 0.3 percent to versus the euro.
Canada's dollar fell 0.8 percent to 98.75 Canadian cents per U.S. dollar and has dropped from 90.58 cents on Nov. 7, the highest level since Canada floated the currency in 1950.
Scheduled Economic Reports (Next Week)
Consumer Sentiment, Durable Goods, Existing Home Sales, Gross Domestic Product, New Home Sales, Personal Income & Spending, Chicago PMI, Construction Spending
In Earnings News
Deere & Co.'s (DE) reported that net income increased to $422.1 million or $1.88 a share. Analysts expected $1.52 a share.
Abercrombie & Fitch (ANF) reported that its profits rose 15 percent. Abercrombie said it made $118 million, or $1.29 per share.
Patterson Cos. Inc. (PDCO) said its second-quarter profit rose more than 11 percent, but the results did not meet Wall Street's expectations.
Scheduled Earnings Reports (Next Week)
Talk America, Skillsoft, Books A Million, American Eagle Outfitters, Staples, Dollar Tree Stores, Men?s Warehouse, TiVo, Del Monte, Dell, HJ Heinz, Smithfield Foods
Stocks in the News
Par Pharmaceutical (PRX) filed revised earnings reports for the first and second quarters and raised its earnings estimate for the year.
Foot Locker Inc (FL) a third-quarter loss of $33 million, or 22 cents a share, from a profit of $65 million, or 42 cents a share.
Mead Westvaco Corp (MWV) entered an agreement with Goldman Sachs to buy back $400 million of stock.
First-time seasonally adjusted claims for state unemployment benefits fell in the latest week. The number of initial claims in the week ending Nov. 17th fell 11,000 to 330,000. Wall Street economists had expected claims to hit 330,000. Jobless claims in the previous week were revised to 341,000.
Toyota Motor Corp. (TM) announced that it has raised its 2007 sales projection for China on solid sales of small cars and aims to sell even more vehicles there next year. Toyota may be on track to beat General Motors Corp. as the world's top automaker as soon as the end of the year.
U.S. Treasury Secretary Henry Paulson said the number of potential U.S. home-loan defaults "will be significantly bigger" in 2008 than in 2007.
Standard & Poor's expects the U.S. Federal Reserve to cut interest rates to 3.5 percent in 2008 to deal with the fallout from the housing market.
Friday is the biggest shopping day of the year ? Black Friday. Retail experts predict that high energy prices and credit woes may curtail the urge to shop like crazy during the holiday season. Some retail analysts believe people who have money are going to spend at least some of it on holiday goods but that might not happen until after "Black Friday.?
In Forex News Today
The yen rose to the highest level in more than two years against the dollar on concern widening credit-market losses and record fuel costs will slow global economic growth.
Currencies in Australia, South Africa, Brazil and New Zealand tumbled at least 2.4 percent versus the yen as investors exited higher-yielding assets funded by loans in Japan. The dollar rebounded from a record low against the euro as traders sought safety in Treasuries. Global stocks fell, crude oil rose above $99 a barrel and the cost to borrow dollars increased.
Australia's dollar declined 3.3 percent to 94.89 against the yen, extending this month's decline to 12 percent. New Zealand's dollar weakened 2.4 percent to 82.11 yen and South Korea's won declined 2.3 percent.
The dollar was little changed against the euro, after falling earlier to the lowest level since the European currency started trading in 1999. The U.S. currency gained the most against the Australian dollar and South African rand, rising 2.1 percent and 1.6 percent, respectively.
The pound weakened to the lowest level since 2003 against the euro and fell versus the dollar on speculation the Bank of England may start cutting borrowing costs from 5.75 percent as soon as next month. The pound fell 0.4 percent while losing 0.3 percent to versus the euro.
Canada's dollar fell 0.8 percent to 98.75 Canadian cents per U.S. dollar and has dropped from 90.58 cents on Nov. 7, the highest level since Canada floated the currency in 1950.
Scheduled Economic Reports (Next Week)
Consumer Sentiment, Durable Goods, Existing Home Sales, Gross Domestic Product, New Home Sales, Personal Income & Spending, Chicago PMI, Construction Spending
In Earnings News
Deere & Co.'s (DE) reported that net income increased to $422.1 million or $1.88 a share. Analysts expected $1.52 a share.
Abercrombie & Fitch (ANF) reported that its profits rose 15 percent. Abercrombie said it made $118 million, or $1.29 per share.
Patterson Cos. Inc. (PDCO) said its second-quarter profit rose more than 11 percent, but the results did not meet Wall Street's expectations.
Scheduled Earnings Reports (Next Week)
Talk America, Skillsoft, Books A Million, American Eagle Outfitters, Staples, Dollar Tree Stores, Men?s Warehouse, TiVo, Del Monte, Dell, HJ Heinz, Smithfield Foods
Stocks in the News
Par Pharmaceutical (PRX) filed revised earnings reports for the first and second quarters and raised its earnings estimate for the year.
Foot Locker Inc (FL) a third-quarter loss of $33 million, or 22 cents a share, from a profit of $65 million, or 42 cents a share.
Mead Westvaco Corp (MWV) entered an agreement with Goldman Sachs to buy back $400 million of stock.
Tuesday, November 20, 2007
The PremiereTrade Market Wrap for 11/20/07
The Commerce Department reported that housing construction rose by 3 percent in October, the first increase after three months of declines and the biggest advance since a 6 percent rise last February. Applications for building permits fell for the fifth straight month in October.
According to the eighth annual holiday-spending survey by the Consumer Federation of America and the Credit Union National Association, the highest percentage of consumers in eight years says they will ease back on holiday shopping this year, with many Americans citing rising gas and home-heating costs, plus gift prices, as top reasons for their stricter budgeting.
H&R Block Inc. (HRB) replaced Mark Ernst as chairman and chief executive officer after a yearlong effort to sell its money-losing subprime home lending unit neared collapse. Richard Breeden, the former chairman of the SEC who won a proxy fight to get on the company's board, was named chairman.
In Forex News Today
Despite calls from Iran and Venezuela - OPEC's steadfast bashers of the U.S. government - experts say there's little chance the cartel will shift from pricing oil in dollars to something like the Euro. At a summit of leaders from Organization of Petroleum Exporting Countries members in Riyadh, Saudi Arabia, over the weekend, Venezuelan head Hugo Chavez and Iranian President Mahmoud Ahmadinejad indicated the historic link between crude oil and the dollar should be severed.
The dollar fell to a record low against the euro and Swiss franc on concern credit-market losses will slow economic growth, prompting the Federal Reserve to lower interest rates again this year. Currencies in New Zealand, the U.K., Australia and Norway gained on speculation a group of six Arab nations will change their fixed exchange rates from the U.S. currency.
The rising cost of using currency options to protect returns on carry trades is helping push traders to exit the strategy, which involves borrowing in countries such as Japan where interest rates are low. Volatility implied on options for major exchange rates reached a three-month high last week. Traders use implied volatility as part of setting options prices. The yen surged against all 16 major currencies yesterday as traders dumped carry-trade bets amid concern that losses in credit markets will increase and trigger a U.S. recession.
Scheduled Economic Reports (Wednesday)
Initial Jobless Claims (Week of November 17th), Leading Indicators (Oct), Consumer Sentiment (Nov)
In Earnings News
Hewlett-Packard Co. (HPQ) reported a 28% rise in its fourth-quarter earnings as the computing and printing giant saw growth across all its main business areas, leading to revenue of $28.3 billion.
Freddie Mac (FRE) rocked the credit markets further as it reported a large loss along with an $8.1 billion drop in the value of its assets, as it set aside $1.2 billion to cover credit losses.
D.R. Horton Inc. (DHI) reported a loss in the fiscal fourth quarter from a year-ago profit, as the nation's largest homebuilder by deliveries took massive charges to write down inventory and the value of land options.
Target Corp. (TGT) reported an unexpected 4.4% decline in third-quarter profit, hurt by sluggish sales of apparel and home goods.
Office Depot Inc. (ODP) said its third-quarter profit fell 9 percent, hurt by lower consumer spending, an economic slowdown in the U.K. and higher costs in North America.
Scheduled Earnings Reports (Wednesday)
Abercrombie & Fitch, The Gap, Trans World Entertainment, Children?s Place Retail Stores
Stocks in the News
QLogic Corp (QLGC) said its chief financial officer, resigned, effective upon completion of the company's third-quarter earnings announcement in late January.
Countrywide Financial (CFC) fell after Moody's affirmed ratings on Countrywide and kept its outlook on the company at negative.
Perry Ellis International (PERY) fiscal third-quarter profit rose 3.6% to $8.53 million, or 55 cents a share, from $8.24 million, or 53 cents a share, in the prior-year period.
Tyson Foods (TSN) plans to revise labels that say its fresh chicken is ?raised without antibiotics? after the USDA said it made a mistake in approving the labels.
According to the eighth annual holiday-spending survey by the Consumer Federation of America and the Credit Union National Association, the highest percentage of consumers in eight years says they will ease back on holiday shopping this year, with many Americans citing rising gas and home-heating costs, plus gift prices, as top reasons for their stricter budgeting.
H&R Block Inc. (HRB) replaced Mark Ernst as chairman and chief executive officer after a yearlong effort to sell its money-losing subprime home lending unit neared collapse. Richard Breeden, the former chairman of the SEC who won a proxy fight to get on the company's board, was named chairman.
In Forex News Today
Despite calls from Iran and Venezuela - OPEC's steadfast bashers of the U.S. government - experts say there's little chance the cartel will shift from pricing oil in dollars to something like the Euro. At a summit of leaders from Organization of Petroleum Exporting Countries members in Riyadh, Saudi Arabia, over the weekend, Venezuelan head Hugo Chavez and Iranian President Mahmoud Ahmadinejad indicated the historic link between crude oil and the dollar should be severed.
The dollar fell to a record low against the euro and Swiss franc on concern credit-market losses will slow economic growth, prompting the Federal Reserve to lower interest rates again this year. Currencies in New Zealand, the U.K., Australia and Norway gained on speculation a group of six Arab nations will change their fixed exchange rates from the U.S. currency.
The rising cost of using currency options to protect returns on carry trades is helping push traders to exit the strategy, which involves borrowing in countries such as Japan where interest rates are low. Volatility implied on options for major exchange rates reached a three-month high last week. Traders use implied volatility as part of setting options prices. The yen surged against all 16 major currencies yesterday as traders dumped carry-trade bets amid concern that losses in credit markets will increase and trigger a U.S. recession.
Scheduled Economic Reports (Wednesday)
Initial Jobless Claims (Week of November 17th), Leading Indicators (Oct), Consumer Sentiment (Nov)
In Earnings News
Hewlett-Packard Co. (HPQ) reported a 28% rise in its fourth-quarter earnings as the computing and printing giant saw growth across all its main business areas, leading to revenue of $28.3 billion.
Freddie Mac (FRE) rocked the credit markets further as it reported a large loss along with an $8.1 billion drop in the value of its assets, as it set aside $1.2 billion to cover credit losses.
D.R. Horton Inc. (DHI) reported a loss in the fiscal fourth quarter from a year-ago profit, as the nation's largest homebuilder by deliveries took massive charges to write down inventory and the value of land options.
Target Corp. (TGT) reported an unexpected 4.4% decline in third-quarter profit, hurt by sluggish sales of apparel and home goods.
Office Depot Inc. (ODP) said its third-quarter profit fell 9 percent, hurt by lower consumer spending, an economic slowdown in the U.K. and higher costs in North America.
Scheduled Earnings Reports (Wednesday)
Abercrombie & Fitch, The Gap, Trans World Entertainment, Children?s Place Retail Stores
Stocks in the News
QLogic Corp (QLGC) said its chief financial officer, resigned, effective upon completion of the company's third-quarter earnings announcement in late January.
Countrywide Financial (CFC) fell after Moody's affirmed ratings on Countrywide and kept its outlook on the company at negative.
Perry Ellis International (PERY) fiscal third-quarter profit rose 3.6% to $8.53 million, or 55 cents a share, from $8.24 million, or 53 cents a share, in the prior-year period.
Tyson Foods (TSN) plans to revise labels that say its fresh chicken is ?raised without antibiotics? after the USDA said it made a mistake in approving the labels.
Monday, November 19, 2007
The PremiereTrade Market Wrap for 11/19/07
The painful collapse of the housing market along with the credit crunch will weigh down economic growth in the final three months of this year and cause economic activity to lag in 2008. The latest look-ahead from the National Association for Business Economics says the gross domestic product is on track to expand at just a 1.5 percent pace from October through December.
Oil prices increased with more talk among OPEC members about converting their cash reserves to the euro and away from the U.S. dollar. There is also doubt a possible OPEC output hike next month would get more supplies to market in time for the northern winter.
The national average price for gasoline rose about 13 cents over the last two weeks. According to oil industry analyst Trilby Lundberg, the average price of regular gasoline was $3.09 a gallon, mid-grade was $3.21, and premium was $3.32.
Xerox (XRX) announced its first quarterly cash dividend in six years, a sign that the business is again healthy. A dividend of 4.25 cents per share will be payable Jan. 31 for shareholders of record on Dec. 31.
Chrysler is considering wide-ranging branding changes that would streamline its product offerings and eliminate as many as 1,000 dealers. A plan currently under discussion calls for Chrysler dealers to sell all of the automaker's passenger cars under the Chrysler name. Dodge dealers would sell only pickup and commercial trucks, and Jeep dealers would sell only Jeep and sport-utility vehicles.
In Forex News Today
The U.S. Dollar continued to consolidate against majors in a quiet day. The Yen was lifted on risk aversion by a decline in the Asian and European stock markets. But after all, it's still stuck in a familiar range. Markets will look into housing data from US tomorrow to trigger some volatility and is expected to take the dollar even. Tomorrow's housing starts and building permits are also expected to show further deterioration in the U.S. housing markets.
The Bank of England's latest Inflation Report was one of the pessimistic documents it has produced in the 10 years since it became independent. It is realistic in seeing the most likely outcome that growth next year slows sharply in the UK and that inflation, while moving a bit higher near term, will be comfortably close to the 2% target level beyond that small near-term hump.
The U.S. dollar was slightly higher against most major counterparts throughout the day, but fell modestly against the yen, with many investors reluctant to take aggressive new positions in a Thanksgiving holiday-shortened week in which the U.S. Federal Reserve will release the minutes of its Oct. 31st meeting as well as its new economic forecasts through 2009. Some analysts believe that Tuesday's inaugural release of the Fed's three-year forecasts should, by design, reveal a relatively encouraging growth path for inflation and output.
Scheduled Economic Reports (Tuesday)
Housing Starts (Oct)
In Earnings News
Lowe's Cos. (LOW) said said it earned $643 million, or 43 cents a share, for the three months ended Nov. 2, down from $716 million, or 46 cents a share, a year earlier.
The Campbell Soup Co. (CPB) reported a 7.2 percent decline in first-quarter profit on Monday as the world's largest soup maker absorbed higher costs.
ConAgra Foods Inc. (CAG) plans to reiterate its earnings forecast for 2009 and 2010 when it meets with institutional investors this week.
Scheduled Earnings Reports (Tuesday)
Office Depot, BJs Wholesale, Hormel Foods, DR Horton, Barnes & Noble, Foot Locker, Borders Group, Hot Topic, Saks, Mesa Air Group, and Zales
Stocks in the News
Citigroup (C) was downgraded to sell from neutral at Goldman Sachs, with the broker seeing up to $15 billion in write-downs from collateralized debt obligations over the next two quarters.
Applied Materials (AMAT) said it is purchasing privately held Italy-based Baccini for approximately $330 million in cash.
Cooper Tire & Rubber (CTB) said its board approved a $100 million share buyback.
Oil prices increased with more talk among OPEC members about converting their cash reserves to the euro and away from the U.S. dollar. There is also doubt a possible OPEC output hike next month would get more supplies to market in time for the northern winter.
The national average price for gasoline rose about 13 cents over the last two weeks. According to oil industry analyst Trilby Lundberg, the average price of regular gasoline was $3.09 a gallon, mid-grade was $3.21, and premium was $3.32.
Xerox (XRX) announced its first quarterly cash dividend in six years, a sign that the business is again healthy. A dividend of 4.25 cents per share will be payable Jan. 31 for shareholders of record on Dec. 31.
Chrysler is considering wide-ranging branding changes that would streamline its product offerings and eliminate as many as 1,000 dealers. A plan currently under discussion calls for Chrysler dealers to sell all of the automaker's passenger cars under the Chrysler name. Dodge dealers would sell only pickup and commercial trucks, and Jeep dealers would sell only Jeep and sport-utility vehicles.
In Forex News Today
The U.S. Dollar continued to consolidate against majors in a quiet day. The Yen was lifted on risk aversion by a decline in the Asian and European stock markets. But after all, it's still stuck in a familiar range. Markets will look into housing data from US tomorrow to trigger some volatility and is expected to take the dollar even. Tomorrow's housing starts and building permits are also expected to show further deterioration in the U.S. housing markets.
The Bank of England's latest Inflation Report was one of the pessimistic documents it has produced in the 10 years since it became independent. It is realistic in seeing the most likely outcome that growth next year slows sharply in the UK and that inflation, while moving a bit higher near term, will be comfortably close to the 2% target level beyond that small near-term hump.
The U.S. dollar was slightly higher against most major counterparts throughout the day, but fell modestly against the yen, with many investors reluctant to take aggressive new positions in a Thanksgiving holiday-shortened week in which the U.S. Federal Reserve will release the minutes of its Oct. 31st meeting as well as its new economic forecasts through 2009. Some analysts believe that Tuesday's inaugural release of the Fed's three-year forecasts should, by design, reveal a relatively encouraging growth path for inflation and output.
Scheduled Economic Reports (Tuesday)
Housing Starts (Oct)
In Earnings News
Lowe's Cos. (LOW) said said it earned $643 million, or 43 cents a share, for the three months ended Nov. 2, down from $716 million, or 46 cents a share, a year earlier.
The Campbell Soup Co. (CPB) reported a 7.2 percent decline in first-quarter profit on Monday as the world's largest soup maker absorbed higher costs.
ConAgra Foods Inc. (CAG) plans to reiterate its earnings forecast for 2009 and 2010 when it meets with institutional investors this week.
Scheduled Earnings Reports (Tuesday)
Office Depot, BJs Wholesale, Hormel Foods, DR Horton, Barnes & Noble, Foot Locker, Borders Group, Hot Topic, Saks, Mesa Air Group, and Zales
Stocks in the News
Citigroup (C) was downgraded to sell from neutral at Goldman Sachs, with the broker seeing up to $15 billion in write-downs from collateralized debt obligations over the next two quarters.
Applied Materials (AMAT) said it is purchasing privately held Italy-based Baccini for approximately $330 million in cash.
Cooper Tire & Rubber (CTB) said its board approved a $100 million share buyback.
Friday, November 16, 2007
The PremiereTrade Market Wrap for 11/16/07
The output of the nation's factories, mines and utilities fell 0.5% in October, the biggest decline since January. The factory sector was weak across the board, with civilian aircraft as one of the few bright spots. Factory output fell 0.4%. Capacity utilization - a gauge of inflationary pressures -- fell to 81.7% from 82.2%.
Cisco Systems Inc. (CSCO), the world's largest network equipment company, said Friday it plans to buy back up an additional $10 billion of its shares, expanding its total stock repurchase program to $62 billion. As of Sept. 7, the company had about 6.09 billion shares outstanding.
Royal Caribbean Cruises Ltd. (RCL) said it will apply a fuel surcharge of $5 per person per day on some of its voyages due to rising fuel prices. It will be effective on voyages departing on Feb. 1, 2008.
AT&T Inc. (ATT) said it completed its acquisition of Dobson Communications Corp., a provider of wireless communications services under the Cellular One brand. The acquisition extends AT&T's coverage area in rural and suburban areas in 17 states.
Google (GOOG) may be preparing to bid on wireless spectrum at a Federal Communications Commission auction in January, paving the way for creation of its own mobile network.
In Forex News Today
U.S. Treasury Secretary Henry Paulson expects more of the losses in the U.S. mortgage industry that have hit the dollar, but predicted a long-term recovery for the battered currency. Paulson was in South Africa to address a U.S.-Africa business summit and for a weekend meeting of finance ministers and central bankers from the G20 group of developed and big developing nations. The dollar has suffered in past months, as losses in the U.S. mortgage industry have led the U.S. Federal Reserve to cut interest rates to protect economic growth.
Some hawkish comments were delivered by Fed officials today. Fed Governor Randall Kroszner said that economic indicators in the coming months will reflect a "rough patch" However, that is not enough to guarantee additional rate cuts. Poole said that Fed must lead, but not follow the markets on rate policy. Even though subprime problem take time to resolve, he doesn't expect a recession yet and he doubts the need for more rate cuts.
The dollar and yen fell as an increase in U.S. stocks made investors more comfortable holding higher-yielding currencies. Canada's dollar rose from a five- week low as prices of the nation's commodity exports increased, boosting the currency's appeal. Crude oil exceeded $95 a barrel after Venezuela's oil minister said OPEC shouldn't increase production at its next meeting in December. Gold also advanced. Commodities account for about half of Canada's exports.
Scheduled Economic Reports (Next Week)
Home Builders? Index (Nov), Housing Starts (Oct), Consumer Sentiment (Nov), Leading Indicators (Oct)
In Earnings News
FedEx Corp. (FDX) cut its earnings expectations for the fiscal second quarter and full year, citing soaring fuel costs and a troubled U.S. freight market. FedEx expects to earn $1.45 to $1.55 per share, compared with a previous forecast of $1.60 to $1.75 per share.
Starbucks Corp. (SBUX) fell in morning trading after the coffee-shop operator posted a rise in quarterly profit, but trimmed its fiscal-year forecast.
AnnTaylor Stores Corp. (ANN) said fiscal third-quarter profit rose to $40.8 million, or 66 cents per share. Analysts expected 60 cents.
The J.M. Smucker Co. (SJM) net income for the quarter ended Oct. 31 climbed to $50.2 million, or 87 cents per share. Analysts expected 91 cents.
Scheduled Earnings Reports (Next Week)
Barnes & Noble, Perry Ellis International, Nordstrom, Benihana, Campbell Soup, Lowes Companies, Borders, Limited, Hot Topic, Target, Zale, Abercrombie & Fitch, Deere & Co., Krispy Kreme
Stocks in the News
BP Plc (BP) intends to sell its U.S. convenience stores over two years.
Intuit?s (INTU) fiscal first-quarter net loss narrowed to $20.8 million or 6 cents a share, from the year-earlier $58.9 million, or 17 cents a share.
Jack in the Box (JBX) fourth-quarter net income fell to $27 million or 43 cents a share, from $33.2 million, or 46 cents a share.
Cisco Systems Inc. (CSCO), the world's largest network equipment company, said Friday it plans to buy back up an additional $10 billion of its shares, expanding its total stock repurchase program to $62 billion. As of Sept. 7, the company had about 6.09 billion shares outstanding.
Royal Caribbean Cruises Ltd. (RCL) said it will apply a fuel surcharge of $5 per person per day on some of its voyages due to rising fuel prices. It will be effective on voyages departing on Feb. 1, 2008.
AT&T Inc. (ATT) said it completed its acquisition of Dobson Communications Corp., a provider of wireless communications services under the Cellular One brand. The acquisition extends AT&T's coverage area in rural and suburban areas in 17 states.
Google (GOOG) may be preparing to bid on wireless spectrum at a Federal Communications Commission auction in January, paving the way for creation of its own mobile network.
In Forex News Today
U.S. Treasury Secretary Henry Paulson expects more of the losses in the U.S. mortgage industry that have hit the dollar, but predicted a long-term recovery for the battered currency. Paulson was in South Africa to address a U.S.-Africa business summit and for a weekend meeting of finance ministers and central bankers from the G20 group of developed and big developing nations. The dollar has suffered in past months, as losses in the U.S. mortgage industry have led the U.S. Federal Reserve to cut interest rates to protect economic growth.
Some hawkish comments were delivered by Fed officials today. Fed Governor Randall Kroszner said that economic indicators in the coming months will reflect a "rough patch" However, that is not enough to guarantee additional rate cuts. Poole said that Fed must lead, but not follow the markets on rate policy. Even though subprime problem take time to resolve, he doesn't expect a recession yet and he doubts the need for more rate cuts.
The dollar and yen fell as an increase in U.S. stocks made investors more comfortable holding higher-yielding currencies. Canada's dollar rose from a five- week low as prices of the nation's commodity exports increased, boosting the currency's appeal. Crude oil exceeded $95 a barrel after Venezuela's oil minister said OPEC shouldn't increase production at its next meeting in December. Gold also advanced. Commodities account for about half of Canada's exports.
Scheduled Economic Reports (Next Week)
Home Builders? Index (Nov), Housing Starts (Oct), Consumer Sentiment (Nov), Leading Indicators (Oct)
In Earnings News
FedEx Corp. (FDX) cut its earnings expectations for the fiscal second quarter and full year, citing soaring fuel costs and a troubled U.S. freight market. FedEx expects to earn $1.45 to $1.55 per share, compared with a previous forecast of $1.60 to $1.75 per share.
Starbucks Corp. (SBUX) fell in morning trading after the coffee-shop operator posted a rise in quarterly profit, but trimmed its fiscal-year forecast.
AnnTaylor Stores Corp. (ANN) said fiscal third-quarter profit rose to $40.8 million, or 66 cents per share. Analysts expected 60 cents.
The J.M. Smucker Co. (SJM) net income for the quarter ended Oct. 31 climbed to $50.2 million, or 87 cents per share. Analysts expected 91 cents.
Scheduled Earnings Reports (Next Week)
Barnes & Noble, Perry Ellis International, Nordstrom, Benihana, Campbell Soup, Lowes Companies, Borders, Limited, Hot Topic, Target, Zale, Abercrombie & Fitch, Deere & Co., Krispy Kreme
Stocks in the News
BP Plc (BP) intends to sell its U.S. convenience stores over two years.
Intuit?s (INTU) fiscal first-quarter net loss narrowed to $20.8 million or 6 cents a share, from the year-earlier $58.9 million, or 17 cents a share.
Jack in the Box (JBX) fourth-quarter net income fell to $27 million or 43 cents a share, from $33.2 million, or 46 cents a share.
Thursday, November 15, 2007
The PremiereTrade Market Wrap for 11/15/07
The consumer price index increased 0.3% in October, driven by a 1.4% gain in energy prices. This was the fastest increase in energy prices since May. Food prices rose 0.3%. The core CPI, which excludes food and energy costs, was up 0.2% in October.
The number of initial claims in the week ending Nov 10 rose 20,000 to 339,000. It's the highest level since the week ended Oct. 13.
OPEC said it sees a modest downturn in the U.S. economy in the fourth quarter due in part to record high oil prices, but booming growth in China and the Middle East will keep world oil demand strong.
Barclays Group PLC took a $2.7 billion write-down for losses on securities linked to the U.S. subprime mortgage market collapse -- less than the market had expected.
Ralcorp Holdings Inc. (RAH) said it will purchase Kraft Foods Inc.'s Post cereals unit, the nation's third largest with brands like Spoon Size Shredded Wheat and Post Raisin Bran. The companies said the deal includes Ralcorp stock valued at about $1.65 billion.
Pitney Bowes Inc. (PBI) is cutting 4 percent of its work force, about 1,500 jobs, and taking a charge of between $300 million and $400 million as it begins to provide fully digital equipment.
In Forex News Today
The dollar rose against the euro but slipped against the yen as fears about the effects of the credit crunch and falling equity markets led investors to pare back on profitable trades. After a report showed core U.S. consumer inflation in October was in line with forecasts, dealers began cutting their bets against the dollar, which had become quite stretched.
The yen rose versus the euro and dollar and high yielding currencies dipped as concerns about the effects of the credit crunch and falling equity markets led investors to pare back risky carry trades. The Japanese currency extended gains as weaker Asian stock markets were followed by a slide in European equities and by futures pointing to a lower open on Wall Street, which led investors to sell high yielding currencies in favour of safe haven assets.
Options bets signal that the Canadian dollar's 19 percent surge versus its U.S. counterpart this year to a record high may fade as interest-rate differentials lessen and commodity prices stabilize. Traders are paying the largest premium since January for Canadian dollar put options, granting the right to sell the currency, over calls providing the right to buy. The risk- reversal rate for one-month options, which hadn't favored Canadian dollar puts in a month, reached a 0.45 percent percentage point premium.
Scheduled Economic Reports (Friday)
Industiral Production (Oct), Capacity Utilization (Oct)
In Earnings News
J.C. Penney Co. (JCP) said its third-quarter profit fell 9 percent, hurt by weak sales in September and October, and the department store operator slashed its fourth-quarter outlook.
Williams-Sonoma Inc. (WSM) said net income for the fiscal third quarter fell 7 percent, hurt by falling same-store sales and higher expenses. Net income for the quarter ended Oct. 28 fell to $27.1 million, or 25 cents per share.
Brewer SABMiller PLC posted a 21 percent increase in first-half profits , but warned of tougher trading conditions in the second half due to the rising cost of raw materials.
Scheduled Earnings Reports (Friday)
Jack in the Box, Ann Taylor Stores, Johnson Outdoors, Carrington Labs
Stocks in the News
Delta Air Line's (DAL) Chief Executive Richard Anderson said the carrier is not talking to United Airlines about a merger, throwing cold water on merger speculation.
Merrill Lynch (MER) named John Thain chairman and chief executive, effective Dec. 1.
PetSmart Inc (PETM) reported third-quarter net income of $29.5 million compared with $31.7 million in the year-earlier period.
The number of initial claims in the week ending Nov 10 rose 20,000 to 339,000. It's the highest level since the week ended Oct. 13.
OPEC said it sees a modest downturn in the U.S. economy in the fourth quarter due in part to record high oil prices, but booming growth in China and the Middle East will keep world oil demand strong.
Barclays Group PLC took a $2.7 billion write-down for losses on securities linked to the U.S. subprime mortgage market collapse -- less than the market had expected.
Ralcorp Holdings Inc. (RAH) said it will purchase Kraft Foods Inc.'s Post cereals unit, the nation's third largest with brands like Spoon Size Shredded Wheat and Post Raisin Bran. The companies said the deal includes Ralcorp stock valued at about $1.65 billion.
Pitney Bowes Inc. (PBI) is cutting 4 percent of its work force, about 1,500 jobs, and taking a charge of between $300 million and $400 million as it begins to provide fully digital equipment.
In Forex News Today
The dollar rose against the euro but slipped against the yen as fears about the effects of the credit crunch and falling equity markets led investors to pare back on profitable trades. After a report showed core U.S. consumer inflation in October was in line with forecasts, dealers began cutting their bets against the dollar, which had become quite stretched.
The yen rose versus the euro and dollar and high yielding currencies dipped as concerns about the effects of the credit crunch and falling equity markets led investors to pare back risky carry trades. The Japanese currency extended gains as weaker Asian stock markets were followed by a slide in European equities and by futures pointing to a lower open on Wall Street, which led investors to sell high yielding currencies in favour of safe haven assets.
Options bets signal that the Canadian dollar's 19 percent surge versus its U.S. counterpart this year to a record high may fade as interest-rate differentials lessen and commodity prices stabilize. Traders are paying the largest premium since January for Canadian dollar put options, granting the right to sell the currency, over calls providing the right to buy. The risk- reversal rate for one-month options, which hadn't favored Canadian dollar puts in a month, reached a 0.45 percent percentage point premium.
Scheduled Economic Reports (Friday)
Industiral Production (Oct), Capacity Utilization (Oct)
In Earnings News
J.C. Penney Co. (JCP) said its third-quarter profit fell 9 percent, hurt by weak sales in September and October, and the department store operator slashed its fourth-quarter outlook.
Williams-Sonoma Inc. (WSM) said net income for the fiscal third quarter fell 7 percent, hurt by falling same-store sales and higher expenses. Net income for the quarter ended Oct. 28 fell to $27.1 million, or 25 cents per share.
Brewer SABMiller PLC posted a 21 percent increase in first-half profits , but warned of tougher trading conditions in the second half due to the rising cost of raw materials.
Scheduled Earnings Reports (Friday)
Jack in the Box, Ann Taylor Stores, Johnson Outdoors, Carrington Labs
Stocks in the News
Delta Air Line's (DAL) Chief Executive Richard Anderson said the carrier is not talking to United Airlines about a merger, throwing cold water on merger speculation.
Merrill Lynch (MER) named John Thain chairman and chief executive, effective Dec. 1.
PetSmart Inc (PETM) reported third-quarter net income of $29.5 million compared with $31.7 million in the year-earlier period.
Wednesday, November 14, 2007
The PremiereTrade Market Wrap for 11/14/07
The Federal Open Market Committee announced that it's taking a series of steps to give the public a greater understanding of the basis for its interest-rate decisions. In a statement, the FOMC -- charged with formulating U.S. monetary policy -- said it would provide more-timely information about the evolving outlook by releasing its economic projections four times each year, rather than twice as done previously.
U.S. businesses built up their inventories modestly in September but sold more goods than they kept. Sales at U.S. businesses rose 0.6% in September, the most in two months, while inventories increased 0.4%. The inventory number is a two-month high.
Wholesale prices rose 0.1% in October as food prices rose and energy prices fell. The core producer price index which excludes food and energy costs didn't grow at all.
Retail sales grew at a sluggish pace in October as many cash-strapped Americans continue to struggle with higher gas prices, less equity in the home and tighter credit availability. The Commerce Department said total sales rose 0.2 percent last month from a revised gain of 0.7 percent in September.
The Mortgage Bankers Association reported that mortgage application filings increased 5.5% last week on a seasonally adjusted basis compared to the prior week, driven by a jump in applications to refinance existing loans.
Three states, California, Florida and Ohio, continue to dominate new foreclosure filings, as most of the nation saw increases in the third quarter.
Bear Stearns Cos. (BSC) will take a $1.2 billion write-down in the fourth quarter related to weakness in its credit portfolios.
In Forex News Today
The dollar resumed its recent familiar pattern, gaining on the yen but slipping against other major rivals, as risk aversion faded in the shining light of a stock market rally. The dollar extended gains against the yen after data showed U.S. retail sales in October were in line with market expectations while producer price inflation was benign.
Japan's low interest rates make the yen a popular currency for carry trades, in which investors borrow lower-yielding funds to buy higher-yielding assets. Such trades are less popular when risk aversion rises. Japan's third-quarter gross domestic product data revealed that the nation's economy grew at a 2.6% annualized rate in the third quarter, but the prior quarter was revised down to a 1.6% contraction from a 1.2% contraction.
In China, the yuan fell nearly 0.3% versus the dollar -- its biggest daily drop since China stopped pegging its currency to the greenback in July 2005. The People's Bank of China set its official parity rate for the midpoint of yuan trading, compared with a record high rate the previous trading day. The central bank allows the yuan to trade in a band of 0.5% on either side of its parity rate.
In Europe, Sterling pared early gains after the Bank of England?s quarterly inflation report suggested UK interest rates would fall in 2008.
And in Canada, Paul Jenkins, senior deputy governor of the Bank of Canada, said a persistently high Canadian dollar could pose a threat to Canadian economic growth and push inflation lower. Jenkins said the rapid and significant decline of the U.S. dollar increased the risk of disorderly adjustments to global imbalances.
Scheduled Economic Reports (Thursday)
Initial Jobless Claims (Week of Nov 19th), Consumer Price Index (Oct), Philadelphia Fed Index (Nov)
In Earnings News
Macy's Inc. (M) reported a profit of $33 million in the third quarter in contrast to a slim loss a year ago.
Daktronics Inc. (DAKT) reported fiscal 2008 second-quarter profit fell 10 percent to miss Wall Street's expectations, hurt by supply chain issues at one of its manufacturing facilities.
Regency Energy Partners LP's (RGNC) posted a loss of $12.8 million, compared with $11.3 million a year earlier.
Scheduled Earnings Reports (Thursday)
JC Penney, Intuit, Agilent Technologies, Franklin Covey, Kohl?s, Starbucks, Tyco International
Stocks in the News
Ethan Allen Interiors (ETH) said its board increased the company's stock buyback authorization to 2 million shares.
Arvin Meritor (ARM) narrowed its quarterly loss on sales flat at $1.6 billion.
Eddie Bauer Holdings (EBHI) said its third-quarter loss narrowed to $16.4 million or 54 cents a share.
Longs Drugs Stores (LDG) said its board approved the buyback of up to $200 million of shares.
U.S. businesses built up their inventories modestly in September but sold more goods than they kept. Sales at U.S. businesses rose 0.6% in September, the most in two months, while inventories increased 0.4%. The inventory number is a two-month high.
Wholesale prices rose 0.1% in October as food prices rose and energy prices fell. The core producer price index which excludes food and energy costs didn't grow at all.
Retail sales grew at a sluggish pace in October as many cash-strapped Americans continue to struggle with higher gas prices, less equity in the home and tighter credit availability. The Commerce Department said total sales rose 0.2 percent last month from a revised gain of 0.7 percent in September.
The Mortgage Bankers Association reported that mortgage application filings increased 5.5% last week on a seasonally adjusted basis compared to the prior week, driven by a jump in applications to refinance existing loans.
Three states, California, Florida and Ohio, continue to dominate new foreclosure filings, as most of the nation saw increases in the third quarter.
Bear Stearns Cos. (BSC) will take a $1.2 billion write-down in the fourth quarter related to weakness in its credit portfolios.
In Forex News Today
The dollar resumed its recent familiar pattern, gaining on the yen but slipping against other major rivals, as risk aversion faded in the shining light of a stock market rally. The dollar extended gains against the yen after data showed U.S. retail sales in October were in line with market expectations while producer price inflation was benign.
Japan's low interest rates make the yen a popular currency for carry trades, in which investors borrow lower-yielding funds to buy higher-yielding assets. Such trades are less popular when risk aversion rises. Japan's third-quarter gross domestic product data revealed that the nation's economy grew at a 2.6% annualized rate in the third quarter, but the prior quarter was revised down to a 1.6% contraction from a 1.2% contraction.
In China, the yuan fell nearly 0.3% versus the dollar -- its biggest daily drop since China stopped pegging its currency to the greenback in July 2005. The People's Bank of China set its official parity rate for the midpoint of yuan trading, compared with a record high rate the previous trading day. The central bank allows the yuan to trade in a band of 0.5% on either side of its parity rate.
In Europe, Sterling pared early gains after the Bank of England?s quarterly inflation report suggested UK interest rates would fall in 2008.
And in Canada, Paul Jenkins, senior deputy governor of the Bank of Canada, said a persistently high Canadian dollar could pose a threat to Canadian economic growth and push inflation lower. Jenkins said the rapid and significant decline of the U.S. dollar increased the risk of disorderly adjustments to global imbalances.
Scheduled Economic Reports (Thursday)
Initial Jobless Claims (Week of Nov 19th), Consumer Price Index (Oct), Philadelphia Fed Index (Nov)
In Earnings News
Macy's Inc. (M) reported a profit of $33 million in the third quarter in contrast to a slim loss a year ago.
Daktronics Inc. (DAKT) reported fiscal 2008 second-quarter profit fell 10 percent to miss Wall Street's expectations, hurt by supply chain issues at one of its manufacturing facilities.
Regency Energy Partners LP's (RGNC) posted a loss of $12.8 million, compared with $11.3 million a year earlier.
Scheduled Earnings Reports (Thursday)
JC Penney, Intuit, Agilent Technologies, Franklin Covey, Kohl?s, Starbucks, Tyco International
Stocks in the News
Ethan Allen Interiors (ETH) said its board increased the company's stock buyback authorization to 2 million shares.
Arvin Meritor (ARM) narrowed its quarterly loss on sales flat at $1.6 billion.
Eddie Bauer Holdings (EBHI) said its third-quarter loss narrowed to $16.4 million or 54 cents a share.
Longs Drugs Stores (LDG) said its board approved the buyback of up to $200 million of shares.
Tuesday, November 13, 2007
The PremiereTrade Market Wrap for 11/13/07
Japan's central bank kept its benchmark interest rate unchanged at 0.5 percent after a two-day meeting policy meeting amid deepening concerns about slower growth in the U.S. economy.
The International Energy Agency said it sees strong indications that high prices are depressing demand, which, together with signs of higher output from Saudi Arabia, Iraq and Nigeria, have capped further price gains. "There are signs that super high crude oil prices have started to depress oil demand as drivers in the world's industrialized nations start to feel the pain of almost $100 oil," said the International Energy Agency, an energy policy advisor to 26 member countries.
Weekly chain-store sales for the week ended Nov. 10 rose 2.7% from the year-ago period. On a week-over-week basis, sales fell 0.5%.
Countrywide Financial (CFC) said its total October loan fundings fell 48% from last year, to $22 billion. The firm said its mortgage pipeline at the end of October was $41 billion. Average daily mortgage loan application activity for October 2007 was $1.8 billion, a 34% decrease from October 2006.
In Forex News Today
Markets finally calmed down a bit from massive carry trading unwinding and turns into consolidation as the day starts. BoJ left rates unchanged at 0.50% as widely expected after a mere fortnight of their last meeting. The vote split was again 8-1. The surprise in the Asian session today is indeed the Q3 GDP data from Japan, which showed a strong rebound in strength. The data eased concern that the Japanese economy has slipped into recession but provides no solid case for near term hike from BoJ yet. Some verbal intervention is heard from Japanese officials responding to recent sharp appreciation of the yen. Prime Minister Fukuda said that aren't desirable and warned traders and investors not to make speculative moves on the currency.
The Canadian dollar had the sharpest fall since 1971, partly due to carry trade unwinding and partly due to retreat in oil prices. Oil continued to retreat from record highs and could retreat further towards $90 level on prospect of another OPEC output increased. USD/CAD has made a short term bottom last week and recovery could extend further but parity will now become a strong resistance.
For the first time in 18 months, the U.S. government bond market is showing growing anxiety that the plummeting dollar will result in runaway inflation. The combination of the Dollar's 31 percent decline during George W. Bush's presidency, oil prices near a record high and interest rates at a four-year low have convinced investors that consumer prices are poised to accelerate
Scheduled Economic Reports (Wednesday)
Producer Price Index (Oct), Retail Sales (Oct), Inventories (Sep)
In Earnings News
Wal-Mart (WMT) earned 70 cents per share, up from 62 cents per share in the same period a year ago.
E-Trade Financial Corp. (ETFC) lost more than half its value, plunging as the company faces more subprime-related write-downs and as analysts at Citigroup suggest a possible bankruptcy for the online broker.
The Home Depot Inc. (HD) reported a 26.8 percent drop in third-quarter profits as the deteriorating housing market put a crimp on home renovations. Home Depot said it earned $1.09 billion, or 60 cents a share, for the quarter, compared with a profit of $1.49 billion, or 73 cents a share, for the same period a year ago.
Scheduled Earnings Reports (Wednesday)
PetSmart, Applied Materials, Federated Department Stores, Longs Drugs, Vivendi
Stocks in the News
Citigroup (C) as part of a revamp of its investment-banking business is combining its equity capital markets and debt capital markets activities.
Fossil Inc (FOSL) reported fiscal third-quarter net income rose 41 percent, helped by strong international sales.
Nash-Finch Co. (NAFC) reported a third-quarter profit on lower costs and expenses.
The International Energy Agency said it sees strong indications that high prices are depressing demand, which, together with signs of higher output from Saudi Arabia, Iraq and Nigeria, have capped further price gains. "There are signs that super high crude oil prices have started to depress oil demand as drivers in the world's industrialized nations start to feel the pain of almost $100 oil," said the International Energy Agency, an energy policy advisor to 26 member countries.
Weekly chain-store sales for the week ended Nov. 10 rose 2.7% from the year-ago period. On a week-over-week basis, sales fell 0.5%.
Countrywide Financial (CFC) said its total October loan fundings fell 48% from last year, to $22 billion. The firm said its mortgage pipeline at the end of October was $41 billion. Average daily mortgage loan application activity for October 2007 was $1.8 billion, a 34% decrease from October 2006.
In Forex News Today
Markets finally calmed down a bit from massive carry trading unwinding and turns into consolidation as the day starts. BoJ left rates unchanged at 0.50% as widely expected after a mere fortnight of their last meeting. The vote split was again 8-1. The surprise in the Asian session today is indeed the Q3 GDP data from Japan, which showed a strong rebound in strength. The data eased concern that the Japanese economy has slipped into recession but provides no solid case for near term hike from BoJ yet. Some verbal intervention is heard from Japanese officials responding to recent sharp appreciation of the yen. Prime Minister Fukuda said that aren't desirable and warned traders and investors not to make speculative moves on the currency.
The Canadian dollar had the sharpest fall since 1971, partly due to carry trade unwinding and partly due to retreat in oil prices. Oil continued to retreat from record highs and could retreat further towards $90 level on prospect of another OPEC output increased. USD/CAD has made a short term bottom last week and recovery could extend further but parity will now become a strong resistance.
For the first time in 18 months, the U.S. government bond market is showing growing anxiety that the plummeting dollar will result in runaway inflation. The combination of the Dollar's 31 percent decline during George W. Bush's presidency, oil prices near a record high and interest rates at a four-year low have convinced investors that consumer prices are poised to accelerate
Scheduled Economic Reports (Wednesday)
Producer Price Index (Oct), Retail Sales (Oct), Inventories (Sep)
In Earnings News
Wal-Mart (WMT) earned 70 cents per share, up from 62 cents per share in the same period a year ago.
E-Trade Financial Corp. (ETFC) lost more than half its value, plunging as the company faces more subprime-related write-downs and as analysts at Citigroup suggest a possible bankruptcy for the online broker.
The Home Depot Inc. (HD) reported a 26.8 percent drop in third-quarter profits as the deteriorating housing market put a crimp on home renovations. Home Depot said it earned $1.09 billion, or 60 cents a share, for the quarter, compared with a profit of $1.49 billion, or 73 cents a share, for the same period a year ago.
Scheduled Earnings Reports (Wednesday)
PetSmart, Applied Materials, Federated Department Stores, Longs Drugs, Vivendi
Stocks in the News
Citigroup (C) as part of a revamp of its investment-banking business is combining its equity capital markets and debt capital markets activities.
Fossil Inc (FOSL) reported fiscal third-quarter net income rose 41 percent, helped by strong international sales.
Nash-Finch Co. (NAFC) reported a third-quarter profit on lower costs and expenses.
Monday, November 12, 2007
The PremiereTrade Market Wrap for 11/12/07
Oil prices fell more than $1 a barrel in Asia after reports that the oil exporter group OPEC would discuss increasing its output at an upcoming meeting in a bid to cool record crude prices. The next OPEC meeting is scheduled for December 5th in Abu Dhabi.
China's trade surplus jumped to a new all-time monthly high in October, despite government pledges to restrain export growth and adding to pressure for action on trade barriers and currency.
Countrywide Financial (CFC) warned in a filing that if its credit rating dropped below its current lowest rating, this would "severely," limit its access to the public corporate debt market and that could have repercussions on its business.
IBM Corp. (IBM) said it plans to buy Cognos Inc. for $5 billion in cash. The acquisition would follow similar moves in the same market this year. IBM said Cognos' portfolio will fit in its information management software division.
Airbus has scored a major victory over U.S. rival Boeing Co. (BA) with a series of major orders, worth close to $50 billion at list prices, from Middle Eastern carriers at the Dubai Aerospace Air Show. Emirates turned down the revamped version of the 747 in favor of Airbus' flagship A380.
Honeywell International Inc. (HON) said it signed a $1 billion maintenance contract with AirTran Airways (AAI) for its entire fleet through 2030. Honeywell will also be responsible for supplying avionics on up to 150 Boeing 737s. Maintenance services will be provided for all Honeywell equipment on up to 250 AirTran aircraft, including avionics, lighting, mechanical components, auxiliary power unit and wheels and brakes.
In Forex News Today
The yen sprinted to an 18-month high against the dollar as investors unwound risky carry trades due to nervousness over credit-related losses at U.S. financial firms and weak global equity markets. Worries about U.S. financial institutions' losses from the subprime mortgage crisis, and ensuing credit market turmoil, found a new focus on Friday when Wachovia reported a potential $1.7 billion loss on mortgage-related debt.
A currency strategist at Barclays Capital said the dominant theme for the FX market is risk reduction. That was translated into a reversal of carry trades, where investors borrow low-yielding currencies to fund purchases of higher-yielding assets. The analyst said we're seeing currencies like the yen and the Swiss franc appreciate whereas some of the higher-yielding, riskier currencies, like the Aussie or sterling, are selling off. Gold futures tumbled 3%, as a rebound in the U.S. dollar against most of the other major currencies gave traders reason to lock in profits following the metal's recent bullish run.
Japanese yen surged sharply higher as the week began, following tumbling Asian stock markets on concern of deepening in the credit market crisis. The MSCI Asia-Pacific Index of regional shares fell 3% today, largest drop since Aug. 17. USD/JPY reached an 18-month low. Higher yield currencies are the worst victims in carry trade unwinding with Sterling, Aussie, Kiwi and Loonie all tumbling in respective yen crosses as well as against the U.S. Dollar.
Scheduled Economic Reports (Tuesday)
Retail Chain Index (Week of Nov 10th), Federal Budget (Oct), Pending Home Sales (Sep)
In Earnings News
Blackstone Group LP (BX) reported a loss of $113.2 million, or 44 cents per share.
Tyson Foods Inc. (TSN) reported a profit of $32 million for its fourth quarter, but forecast earnings for this year below what analysts were expecting.
International Coal Group Inc. (IOC) has delayed filing its quarterly 10-Q report with the Securities and Exchange Commission and will restate earlier reports because it overstated certain items.
Scheduled Earnings Reports (Tuesday)
Linen N Things, Fossil, Home Depot, La Z Boy, Wal-Mart, Hughes Supply
Stocks in the News
Zale Corp (ZLC) said it would report proceeds, after expenses and payables outstanding, of $175 million on the sale of its Bailey Banks & Biddle brand to Finlay Fine Jewelry.
People?s United Financial (PBCT) said Chairman and Chief Executive Officer John Klein will take a temporary leave of absence to recuperate from cancer surgery.
And Lionsgate Entertainment (LGF) said its fiscal second-quarter net loss widened to $56.2 million or 47 cents a share, from $14.4 million, or 14 cents a share, in the year-earlier period.
China's trade surplus jumped to a new all-time monthly high in October, despite government pledges to restrain export growth and adding to pressure for action on trade barriers and currency.
Countrywide Financial (CFC) warned in a filing that if its credit rating dropped below its current lowest rating, this would "severely," limit its access to the public corporate debt market and that could have repercussions on its business.
IBM Corp. (IBM) said it plans to buy Cognos Inc. for $5 billion in cash. The acquisition would follow similar moves in the same market this year. IBM said Cognos' portfolio will fit in its information management software division.
Airbus has scored a major victory over U.S. rival Boeing Co. (BA) with a series of major orders, worth close to $50 billion at list prices, from Middle Eastern carriers at the Dubai Aerospace Air Show. Emirates turned down the revamped version of the 747 in favor of Airbus' flagship A380.
Honeywell International Inc. (HON) said it signed a $1 billion maintenance contract with AirTran Airways (AAI) for its entire fleet through 2030. Honeywell will also be responsible for supplying avionics on up to 150 Boeing 737s. Maintenance services will be provided for all Honeywell equipment on up to 250 AirTran aircraft, including avionics, lighting, mechanical components, auxiliary power unit and wheels and brakes.
In Forex News Today
The yen sprinted to an 18-month high against the dollar as investors unwound risky carry trades due to nervousness over credit-related losses at U.S. financial firms and weak global equity markets. Worries about U.S. financial institutions' losses from the subprime mortgage crisis, and ensuing credit market turmoil, found a new focus on Friday when Wachovia reported a potential $1.7 billion loss on mortgage-related debt.
A currency strategist at Barclays Capital said the dominant theme for the FX market is risk reduction. That was translated into a reversal of carry trades, where investors borrow low-yielding currencies to fund purchases of higher-yielding assets. The analyst said we're seeing currencies like the yen and the Swiss franc appreciate whereas some of the higher-yielding, riskier currencies, like the Aussie or sterling, are selling off. Gold futures tumbled 3%, as a rebound in the U.S. dollar against most of the other major currencies gave traders reason to lock in profits following the metal's recent bullish run.
Japanese yen surged sharply higher as the week began, following tumbling Asian stock markets on concern of deepening in the credit market crisis. The MSCI Asia-Pacific Index of regional shares fell 3% today, largest drop since Aug. 17. USD/JPY reached an 18-month low. Higher yield currencies are the worst victims in carry trade unwinding with Sterling, Aussie, Kiwi and Loonie all tumbling in respective yen crosses as well as against the U.S. Dollar.
Scheduled Economic Reports (Tuesday)
Retail Chain Index (Week of Nov 10th), Federal Budget (Oct), Pending Home Sales (Sep)
In Earnings News
Blackstone Group LP (BX) reported a loss of $113.2 million, or 44 cents per share.
Tyson Foods Inc. (TSN) reported a profit of $32 million for its fourth quarter, but forecast earnings for this year below what analysts were expecting.
International Coal Group Inc. (IOC) has delayed filing its quarterly 10-Q report with the Securities and Exchange Commission and will restate earlier reports because it overstated certain items.
Scheduled Earnings Reports (Tuesday)
Linen N Things, Fossil, Home Depot, La Z Boy, Wal-Mart, Hughes Supply
Stocks in the News
Zale Corp (ZLC) said it would report proceeds, after expenses and payables outstanding, of $175 million on the sale of its Bailey Banks & Biddle brand to Finlay Fine Jewelry.
People?s United Financial (PBCT) said Chairman and Chief Executive Officer John Klein will take a temporary leave of absence to recuperate from cancer surgery.
And Lionsgate Entertainment (LGF) said its fiscal second-quarter net loss widened to $56.2 million or 47 cents a share, from $14.4 million, or 14 cents a share, in the year-earlier period.
Friday, November 9, 2007
The PremiereTrade Market Wrap for 11/09/07
A surge in exports in September helped push the U.S. trade deficit down to $56.5 billion, the lowest in more than two years. U.S. exports rose 1.1% to a record $140.1 billion on record shipments of capital goods, industrial materials and foods. Imports into the United States increased 0.6% to $196.6 billion, the second highest ever. The weaker U.S. dollar has been boosting exports, especially in the past three months.
According to the University of Michigan consumer sentiment continued to fell in November. The November consumer sentiment index was 75.0 -- the lowest level since October 2005.
Merck & Co. (MRK) said it will pay $4.85 billion to end thousands of lawsuits over its painkiller Vioxx in what is believed to be the largest drug settlement ever. The deal becomes binding only if 85 percent of all plaintiffs in about 26,600 lawsuits agree to drop their cases.
In Forex News Today
The US dollar has weakened more to record new lows against major currencies. The turbulences in the stock markets along with some shocks in the economy due to weak US data readings resulted in the dollar downturn. Yet the weakening of the dollar is of advantage to the dollar backed commodities as oil and gold hence acting as a hedge for inflation. As for Mr. Bernanke's testimony Thursday, the conclusion for the statement all in all was dovish signaling a possible rate cut in December according to data noting the threat of soaring energy prices.
The US Dollar held above the important 112.0 technical support region in Asia despite a further fall in Asian stock markets. Dollar confidence remained weak and the yen strengthened further to highs near 111.0 after the 112.0 level broke in Europe. The yen gained support from a renewed increase in risk aversion on rumors of further debt write-downs in the global banking sector.
The Chinese yuan continued to strengthen as the central bank tolerated further gains. There was increased speculation that the Chinese authorities would increase interest rates and allow a faster pace of yuan revaluation. Chinese speculation will help underpin the yen. There is some speculation that the Japanese Finance Ministry is encouraging institutional yen selling near recent dollar lows with the government looking to maintain a firm competitive position to support the industrial sector.
Scheduled Economic Reports (Next Week)
Pending Home Sales (Sep), Federal Budget (Oct), Producer Price Index (Oct), Retail Sales (Oct), Inventories (Sep), Consumer Price Index (Oct), Empire State Index (Nov), Philadelphia Fed Index (Nov), Industrial Production (Oct), Capacity Utilization (Oct)
In Earnings News
Wachovia Corp. (WB) said the value of collateralized debt obligations in its portfolio fell about $1.1 billion in October, making it the latest financial institution to warn of sharp losses last month in the credit markets.
Fewer insurance claims and a tax gain pushed Allianz SE (AZ) third-quarter profits up 21 percent, offsetting a $76.26 million loss at its banking unit.
Walt Disney Co. (DIS) reported that net income was $877 million, or 44 cents a share, compared with $782 million or 36 cents a share from a year ago.
Scheduled Earnings Reports (Next Week)
Wal-Mart, Home Depot, Bob Evans Farms, EchoStar Communications, Fossil, Pilgrim?s Pride, Applied Materials, Longs Drug Stores, Kohl?s, Starbucks, Williams Sonoma
Stocks in the News
Chiquita Brands? (CQB) third-quarter loss narrowed on 2.8% higher sales, helped by the recovery of its value-added salads business and the stabilization of banana pricing in Europe.
Nasdaq Stock Market (NDAQ) fiscal fourth-quarter net income jumped to $157.7 million or $1.84 a share, from $2 million, or 2 cents a share, a year earlier.
Google Inc (GOOG) shares took a hit along with several technology stocks on worries that overall U.S. business spending could weaken.
According to the University of Michigan consumer sentiment continued to fell in November. The November consumer sentiment index was 75.0 -- the lowest level since October 2005.
Merck & Co. (MRK) said it will pay $4.85 billion to end thousands of lawsuits over its painkiller Vioxx in what is believed to be the largest drug settlement ever. The deal becomes binding only if 85 percent of all plaintiffs in about 26,600 lawsuits agree to drop their cases.
In Forex News Today
The US dollar has weakened more to record new lows against major currencies. The turbulences in the stock markets along with some shocks in the economy due to weak US data readings resulted in the dollar downturn. Yet the weakening of the dollar is of advantage to the dollar backed commodities as oil and gold hence acting as a hedge for inflation. As for Mr. Bernanke's testimony Thursday, the conclusion for the statement all in all was dovish signaling a possible rate cut in December according to data noting the threat of soaring energy prices.
The US Dollar held above the important 112.0 technical support region in Asia despite a further fall in Asian stock markets. Dollar confidence remained weak and the yen strengthened further to highs near 111.0 after the 112.0 level broke in Europe. The yen gained support from a renewed increase in risk aversion on rumors of further debt write-downs in the global banking sector.
The Chinese yuan continued to strengthen as the central bank tolerated further gains. There was increased speculation that the Chinese authorities would increase interest rates and allow a faster pace of yuan revaluation. Chinese speculation will help underpin the yen. There is some speculation that the Japanese Finance Ministry is encouraging institutional yen selling near recent dollar lows with the government looking to maintain a firm competitive position to support the industrial sector.
Scheduled Economic Reports (Next Week)
Pending Home Sales (Sep), Federal Budget (Oct), Producer Price Index (Oct), Retail Sales (Oct), Inventories (Sep), Consumer Price Index (Oct), Empire State Index (Nov), Philadelphia Fed Index (Nov), Industrial Production (Oct), Capacity Utilization (Oct)
In Earnings News
Wachovia Corp. (WB) said the value of collateralized debt obligations in its portfolio fell about $1.1 billion in October, making it the latest financial institution to warn of sharp losses last month in the credit markets.
Fewer insurance claims and a tax gain pushed Allianz SE (AZ) third-quarter profits up 21 percent, offsetting a $76.26 million loss at its banking unit.
Walt Disney Co. (DIS) reported that net income was $877 million, or 44 cents a share, compared with $782 million or 36 cents a share from a year ago.
Scheduled Earnings Reports (Next Week)
Wal-Mart, Home Depot, Bob Evans Farms, EchoStar Communications, Fossil, Pilgrim?s Pride, Applied Materials, Longs Drug Stores, Kohl?s, Starbucks, Williams Sonoma
Stocks in the News
Chiquita Brands? (CQB) third-quarter loss narrowed on 2.8% higher sales, helped by the recovery of its value-added salads business and the stabilization of banana pricing in Europe.
Nasdaq Stock Market (NDAQ) fiscal fourth-quarter net income jumped to $157.7 million or $1.84 a share, from $2 million, or 2 cents a share, a year earlier.
Google Inc (GOOG) shares took a hit along with several technology stocks on worries that overall U.S. business spending could weaken.
Thursday, November 8, 2007
The PremiereTrade Market Wrap for 11/08/07
Federal Reserve Chairman Ben Bernanke, warning that higher inflation and weaker economic growth could be in store, told Congress that the central bank is keeping a close eye on the subprime mortgage crisis and recent spike in oil prices. But Bernanke also downplayed fears of a recession, saying that the Fed expected the economy to grow next year, albeit at a more moderate pace than in recent quarters.
The Labor Department reported that 317,000 applicants filed for jobless claims last week, down by 13,000 from the previous week. It was the lowest level since Oct. 9th. The bigger-than-expected improvement came even though benefit applications were boosted by almost 3,000 in California as a result of the wildfires that struck that state.
The European Central Bank left key interest rate unchanged at 4 percent, even as member nations are beset by rising inflation, a stronger euro and calls to follow interest rate cuts in the United States. The ECB's move followed the Bank of England's announcement that it was keeping its benchmark rate steady at 5.75 percent -- decisions that come at a time of mixed signals from both sides of the Atlantic.
Warmer weather, combined with ongoing housing market problems and higher gas prices, eroded retail sales for a second consecutive month in October - a trend that raises questions about the strength of this year's holiday shopping season. Overall, October same-store sales rose 1.6 percent, which was weaker than its initial forecast of a 2 percent rise.
Vonage Holdings Corp. (VG) said it was in talks with AT&T to settle a patent suit, the last of several filed against it by traditional phone companies. Vonage said it and AT&T are discussing settling the suit for $39 million.
Apple (AAPL) continues to make news and generate interest around the world. The company?s popular iPhone will go on sale in Germany and Britain on Friday, making its European debut four months after its launch in the United States.
In Forex News Today
The U.S. dollar was lower early Thursday, after Federal Reserve Chairman Ben Bernanke's testimony to Congress highlighted risks to both economic growth and price stability. The dollar has remained under severe pressure against most major currencies on expectations that the stumbling U.S. housing market and related credit-market problems will hurt economic growth, leading the Fed to cut interest rates further. A currency loses value against rivals when interest rates fall.
The U.S. dollar touched the weakest since 1981 versus the pound and the cheapest since 1995 against the Swiss franc as slowing growth dimmed the allure of U.S. assets. The dollar's decline started after the European Central Bank and the Bank of England kept their borrowing costs unchanged today.
The dollar also fell this week to an all-time low against the synthetic euro, a theoretical value for where the currency would have traded before its inception. The prior record was $1.4557 set in 1992. French President Nicolas Sarkozy told the U.S. Congress that the Bush administration must stem the dollar's plunge or risk a trade war. The rising competitiveness of U.S. exports helped shrink the nation's trade deficit to $57.6 billion in August, the smallest since January.
The yield advantage of two-year German bunds over comparable-maturity Treasuries widened, the most since April 2004. A widening spread boosts the appeal of European debt relative to that of the U.S. Europe's single currency will trade at $1.44 versus the dollar by year-end.
Scheduled Economic Reports (Friday)
Trade Gap (Sep), Import Prices (Oct), Consumer Sentiment (Nov)
In Earnings News
Ford Motor (F) trimmed losses in the third quarter to post near-break even operating results, despite a sharp drop in U.S. sales in the period. Ford lost only 24 million, or 1 cent a share.
Toll Brothers Inc. (TOL) said homebuilding revenue fell 36 percent in the fourth quarter as the excess supply of homes for sale continues to hamper recovery in the housing market.
Cablevision Systems Corp. (CVC) reported a wider net loss for the third quarter, but operating income rose 59 percent as more cable TV customers signed up for high-speed Internet and digital phone services.
Scheduled Earnings Reports (Friday)
Six Flags, Lions Gate Entertainment, Dominion Homes, IMAX, Liberty Media, Shoe Pavilion
Stocks in the News
American Express (AXP) has agreed to drop Visa Inc. from a lawsuit alleging Visa and MasterCard blocked the company from the U.S. bank-issued card business.
Rio Tinto Plc (RTP) was approached about a takeover deal by Australia-based miner BHP Billiton, but rejected the bid.
Cisco Systems (CSCO) reported a 37% jump in first-quarter profit. For the quarter ended Oct. 27th, the company posted net income of $2.2 billion or 35 cents a share.
The Labor Department reported that 317,000 applicants filed for jobless claims last week, down by 13,000 from the previous week. It was the lowest level since Oct. 9th. The bigger-than-expected improvement came even though benefit applications were boosted by almost 3,000 in California as a result of the wildfires that struck that state.
The European Central Bank left key interest rate unchanged at 4 percent, even as member nations are beset by rising inflation, a stronger euro and calls to follow interest rate cuts in the United States. The ECB's move followed the Bank of England's announcement that it was keeping its benchmark rate steady at 5.75 percent -- decisions that come at a time of mixed signals from both sides of the Atlantic.
Warmer weather, combined with ongoing housing market problems and higher gas prices, eroded retail sales for a second consecutive month in October - a trend that raises questions about the strength of this year's holiday shopping season. Overall, October same-store sales rose 1.6 percent, which was weaker than its initial forecast of a 2 percent rise.
Vonage Holdings Corp. (VG) said it was in talks with AT&T to settle a patent suit, the last of several filed against it by traditional phone companies. Vonage said it and AT&T are discussing settling the suit for $39 million.
Apple (AAPL) continues to make news and generate interest around the world. The company?s popular iPhone will go on sale in Germany and Britain on Friday, making its European debut four months after its launch in the United States.
In Forex News Today
The U.S. dollar was lower early Thursday, after Federal Reserve Chairman Ben Bernanke's testimony to Congress highlighted risks to both economic growth and price stability. The dollar has remained under severe pressure against most major currencies on expectations that the stumbling U.S. housing market and related credit-market problems will hurt economic growth, leading the Fed to cut interest rates further. A currency loses value against rivals when interest rates fall.
The U.S. dollar touched the weakest since 1981 versus the pound and the cheapest since 1995 against the Swiss franc as slowing growth dimmed the allure of U.S. assets. The dollar's decline started after the European Central Bank and the Bank of England kept their borrowing costs unchanged today.
The dollar also fell this week to an all-time low against the synthetic euro, a theoretical value for where the currency would have traded before its inception. The prior record was $1.4557 set in 1992. French President Nicolas Sarkozy told the U.S. Congress that the Bush administration must stem the dollar's plunge or risk a trade war. The rising competitiveness of U.S. exports helped shrink the nation's trade deficit to $57.6 billion in August, the smallest since January.
The yield advantage of two-year German bunds over comparable-maturity Treasuries widened, the most since April 2004. A widening spread boosts the appeal of European debt relative to that of the U.S. Europe's single currency will trade at $1.44 versus the dollar by year-end.
Scheduled Economic Reports (Friday)
Trade Gap (Sep), Import Prices (Oct), Consumer Sentiment (Nov)
In Earnings News
Ford Motor (F) trimmed losses in the third quarter to post near-break even operating results, despite a sharp drop in U.S. sales in the period. Ford lost only 24 million, or 1 cent a share.
Toll Brothers Inc. (TOL) said homebuilding revenue fell 36 percent in the fourth quarter as the excess supply of homes for sale continues to hamper recovery in the housing market.
Cablevision Systems Corp. (CVC) reported a wider net loss for the third quarter, but operating income rose 59 percent as more cable TV customers signed up for high-speed Internet and digital phone services.
Scheduled Earnings Reports (Friday)
Six Flags, Lions Gate Entertainment, Dominion Homes, IMAX, Liberty Media, Shoe Pavilion
Stocks in the News
American Express (AXP) has agreed to drop Visa Inc. from a lawsuit alleging Visa and MasterCard blocked the company from the U.S. bank-issued card business.
Rio Tinto Plc (RTP) was approached about a takeover deal by Australia-based miner BHP Billiton, but rejected the bid.
Cisco Systems (CSCO) reported a 37% jump in first-quarter profit. For the quarter ended Oct. 27th, the company posted net income of $2.2 billion or 35 cents a share.
Tuesday, November 6, 2007
The PremiereTrade Market Wrap for 11/07/07
The productivity of the U.S. non-farm workplace jumped at an annual rate of 4.9% in the third quarter, the fastest growth in four years. Unit labor costs, a key gauge of inflationary pressures from wages, fell at an annual rate of 0.2% in the period between July and September, the lowest in a year.
Oil prices stalled in their climb toward $100 a barrel after a government report said oil inventories fell less than expected last week while refinery utilization remained flat. Gasoline inventories fell by 800,000 barrels last week, countering analyst expectations for an increase of 200,000 barrels.
Sales generated by U.S. wholesale merchants increased faster than their inventories in September, driving their stockpiles to the lowest level ever in relation to sales.
And according to the Mortgage Bankers Association, mortgage application volume fell 1.6 percent during the week ending Nov. 2nd. The MBA's application index fell to 670.6, from 681.7 the previous week.
In Forex News Today
The U.S. dollar stumbled to new lows after a top Chinese official called for the country to shift more of its huge foreign exchange stockpiles out of the struggling U.S. dollar. The vice chairman of the Standing Committee of the National People's Congress was quoted by wire services as saying China should shift more of its $1.43 trillion of currency reserves into "stronger currencies," such as the euro, to offset "weak" currencies like the dollar.
The dollar has been weak over the last few months as the Federal Reserve has slashed interest rates by three-quarters of a percentage point due to the credit crunch. The question in currency markets is now the degree to which China was signaling an official policy change. The European Central Bank is expected to keep its key rate at 4 percent tomorrow, while the Bank of England may hold borrowing costs at 5.75 percent.
The euro -- introduced on financial markets in 1999 -- has risen from a low of 82 U.S. cents in October 2000 mainly because of concerns over the enormous U.S. trade and budget deficits and, now, the subprime crisis. It has also increasingly gained acceptance as a foreign currency reserve in the coffers of companies and governments from China to the Middle East.
Scheduled Economic Reports (Thursday)
Initial Jobless Claims (Week of November 3rd)
In Earnings News
General Motors (GM) posted an overall net loss which amounted to $68.85 per share, compared with a net loss of $147 million, or 26 cents per share, in the third quarter of last year.
Toyota's (TM) first-half profit to a company record, and the world's number two automaker raised its forecast for the full fiscal year. Toyota appears to be on track to surpass GM as the world's top automaker for a full year as soon as this year.
Time Warner Inc. (TWX) reported a 53 percent decline in net income for the third quarter versus the same period a year ago, when results were boosted by tax and investment gains. The company earned $1.09 billion or 29 cents per share in the quarter.
Dollar Thrifty Automotive Group Inc. (DTG) reported third-quarter profit nearly doubled on growth in vehicle rental revenue. Dollar Thrifty earned $11.3 million, or 48 cents per share, compared with $5.9 million, or 24 cents per share, for the same quarter in 2006.
Scheduled Earnings Reports (Thursday)
Walt Disney Co., Ford, Dean Foods, California Pizza Kitchen, Urban Outfitters, Station Casinos, Ballard Power, Clear Channel Communications, Priceline.com, Public Storage
Stocks in the News
BMC Software (BMC) reported second-quarter profit of $78 million, or 39 cents a share, on revenue of $420.7 million.
Foster Wheeler Ltd (FWLT) reported third-quarter net income rose 70% and declared a 2-for-1 stock split.
W&T Offshore Inc (WTI) third-quarter net income fell 46% to $36.3 million, or 48 cents a share, from $66.7 million, or 91 cents a share, a year earlier.
Oil prices stalled in their climb toward $100 a barrel after a government report said oil inventories fell less than expected last week while refinery utilization remained flat. Gasoline inventories fell by 800,000 barrels last week, countering analyst expectations for an increase of 200,000 barrels.
Sales generated by U.S. wholesale merchants increased faster than their inventories in September, driving their stockpiles to the lowest level ever in relation to sales.
And according to the Mortgage Bankers Association, mortgage application volume fell 1.6 percent during the week ending Nov. 2nd. The MBA's application index fell to 670.6, from 681.7 the previous week.
In Forex News Today
The U.S. dollar stumbled to new lows after a top Chinese official called for the country to shift more of its huge foreign exchange stockpiles out of the struggling U.S. dollar. The vice chairman of the Standing Committee of the National People's Congress was quoted by wire services as saying China should shift more of its $1.43 trillion of currency reserves into "stronger currencies," such as the euro, to offset "weak" currencies like the dollar.
The dollar has been weak over the last few months as the Federal Reserve has slashed interest rates by three-quarters of a percentage point due to the credit crunch. The question in currency markets is now the degree to which China was signaling an official policy change. The European Central Bank is expected to keep its key rate at 4 percent tomorrow, while the Bank of England may hold borrowing costs at 5.75 percent.
The euro -- introduced on financial markets in 1999 -- has risen from a low of 82 U.S. cents in October 2000 mainly because of concerns over the enormous U.S. trade and budget deficits and, now, the subprime crisis. It has also increasingly gained acceptance as a foreign currency reserve in the coffers of companies and governments from China to the Middle East.
Scheduled Economic Reports (Thursday)
Initial Jobless Claims (Week of November 3rd)
In Earnings News
General Motors (GM) posted an overall net loss which amounted to $68.85 per share, compared with a net loss of $147 million, or 26 cents per share, in the third quarter of last year.
Toyota's (TM) first-half profit to a company record, and the world's number two automaker raised its forecast for the full fiscal year. Toyota appears to be on track to surpass GM as the world's top automaker for a full year as soon as this year.
Time Warner Inc. (TWX) reported a 53 percent decline in net income for the third quarter versus the same period a year ago, when results were boosted by tax and investment gains. The company earned $1.09 billion or 29 cents per share in the quarter.
Dollar Thrifty Automotive Group Inc. (DTG) reported third-quarter profit nearly doubled on growth in vehicle rental revenue. Dollar Thrifty earned $11.3 million, or 48 cents per share, compared with $5.9 million, or 24 cents per share, for the same quarter in 2006.
Scheduled Earnings Reports (Thursday)
Walt Disney Co., Ford, Dean Foods, California Pizza Kitchen, Urban Outfitters, Station Casinos, Ballard Power, Clear Channel Communications, Priceline.com, Public Storage
Stocks in the News
BMC Software (BMC) reported second-quarter profit of $78 million, or 39 cents a share, on revenue of $420.7 million.
Foster Wheeler Ltd (FWLT) reported third-quarter net income rose 70% and declared a 2-for-1 stock split.
W&T Offshore Inc (WTI) third-quarter net income fell 46% to $36.3 million, or 48 cents a share, from $66.7 million, or 91 cents a share, a year earlier.
The PremiereTrade Market Wrap for 11/06/07
The International Council of Shopping Centers-UBS Retail Chain Store Sales Index increased by 1.0% in the week ended November 3rd. On the year, chain store sales were up 2.4%.
Former U.S. Federal Reserve Chairman Alan Greenspan said that cutting excess home inventories in the United States is the key to stabilizing the financial system at home and the rest of the world. Greenspan urged central banks to avoid suppressing asset bubbles, which is "exceptionally difficult" to do.
Hovnanian Enterprises Inc. (HOV) said it delivered almost 4,000 homes during its fiscal fourth quarter, down 19 percent from last year, while net contracts fell 10 percent.
Beazer Homes (BZH) said it's planning to take a $230 million fourth-quarter non-cash pre-tax charge to abandon land option contracts. It's already cut 650 positions, or 25% of its workforce, and stopped its 10-cents a share dividend.
Ford Motor Co. (F) workers are expected to vote this week on a landmark tentative contract with the United Auto Workers that should help the ailing automaker by lowering wages for thousands of new workers and moving Ford's retiree health care obligations to a union-run trust.
Exxon Mobil (XOM) sees alternative sources of energy rapidly expanding their share of the market, even if they require a big push in the form of government subsidies and legislation.
In Forex News Today
The dollar struck fresh all-time lows against the euro and a basket of major currencies in early European trade as the market retained its negative assessment of the U.S. economy. Strong U.S. economic last week data failed to put a floor under the dollar's broad slide against the single currency and persistent fears about credit risks also continued to hurt the U.S. Dollar.
The euro has been helped by sentiment that the European Central Bank, which meets Thursday, has yet to finish a gradual campaign of rate increases, while the British pound has benefited from expectations that the Bank of England will leave rates untouched rather than follow the Fed in cutting the cost of borrowing.
A higher euro also makes vacations in Europe more expensive for U.S. travelers and can make European companies choose between raising prices or cutting profitability on goods sold in the U.S. With the holiday season approaching, it may also attract more Europeans to make shopping trips to the U.S., where their currency buys more.
The Japanese yen slipped broadly as gains in stock markets pointed to a pick-up in risk appetite and encouraged investors to re-enter risky carry trade bets funded by cheap borrowing in the Japanese currency. The Australian dollar rose ahead of the Reserve Bank of Australia's interest rate decision expected on Wednesday.
Scheduled Economic Reports (Wednesday)
Productivity (Q3), Wholesale Inventories (Sept), Consumer Credit (Sept)
In Earnings News
Nortel Networks Corp. (NT) said it had a profit in the third quarter that totaled $27 million, or 5 cents per share. Analysts were expecting 11 cents.
Church & Dwight?s (CHD) third-quarter net income rose 34% to $51.7 million, or 75 cents a share. On average, analysts expected earnings of 58 cents a share.
Tenet Healthcare Corp. (THC) reported a loss that narrowed to $59 million, or 12 cents per share. Analysts forecast a loss of 7 cents per share.
Scheduled Earnings Reports (Wednesday)
General Motors, DirecTV, Time Warner, Frontier Oil, News Corp, Sara Lee, Harrah?s Entertainment, Orient-Express Hotels, Salem Communications, Valero
Stocks in the News
Molson Coors (TAP) reported higher costs and lower volume cut into the bottom line in the third quarter, as the brewer reported that its profit dipped slightly on the period.
Sun Microsystems (JAVA) returned to a profit that matched Wall Street forecasts, but revenue fell a bit short of estimates.
IndyMac Bancorp (IMB), parent of IndyMac Bank and a major mortgage lender, swung to a third-quarter net loss from a year-earlier profit.
Former U.S. Federal Reserve Chairman Alan Greenspan said that cutting excess home inventories in the United States is the key to stabilizing the financial system at home and the rest of the world. Greenspan urged central banks to avoid suppressing asset bubbles, which is "exceptionally difficult" to do.
Hovnanian Enterprises Inc. (HOV) said it delivered almost 4,000 homes during its fiscal fourth quarter, down 19 percent from last year, while net contracts fell 10 percent.
Beazer Homes (BZH) said it's planning to take a $230 million fourth-quarter non-cash pre-tax charge to abandon land option contracts. It's already cut 650 positions, or 25% of its workforce, and stopped its 10-cents a share dividend.
Ford Motor Co. (F) workers are expected to vote this week on a landmark tentative contract with the United Auto Workers that should help the ailing automaker by lowering wages for thousands of new workers and moving Ford's retiree health care obligations to a union-run trust.
Exxon Mobil (XOM) sees alternative sources of energy rapidly expanding their share of the market, even if they require a big push in the form of government subsidies and legislation.
In Forex News Today
The dollar struck fresh all-time lows against the euro and a basket of major currencies in early European trade as the market retained its negative assessment of the U.S. economy. Strong U.S. economic last week data failed to put a floor under the dollar's broad slide against the single currency and persistent fears about credit risks also continued to hurt the U.S. Dollar.
The euro has been helped by sentiment that the European Central Bank, which meets Thursday, has yet to finish a gradual campaign of rate increases, while the British pound has benefited from expectations that the Bank of England will leave rates untouched rather than follow the Fed in cutting the cost of borrowing.
A higher euro also makes vacations in Europe more expensive for U.S. travelers and can make European companies choose between raising prices or cutting profitability on goods sold in the U.S. With the holiday season approaching, it may also attract more Europeans to make shopping trips to the U.S., where their currency buys more.
The Japanese yen slipped broadly as gains in stock markets pointed to a pick-up in risk appetite and encouraged investors to re-enter risky carry trade bets funded by cheap borrowing in the Japanese currency. The Australian dollar rose ahead of the Reserve Bank of Australia's interest rate decision expected on Wednesday.
Scheduled Economic Reports (Wednesday)
Productivity (Q3), Wholesale Inventories (Sept), Consumer Credit (Sept)
In Earnings News
Nortel Networks Corp. (NT) said it had a profit in the third quarter that totaled $27 million, or 5 cents per share. Analysts were expecting 11 cents.
Church & Dwight?s (CHD) third-quarter net income rose 34% to $51.7 million, or 75 cents a share. On average, analysts expected earnings of 58 cents a share.
Tenet Healthcare Corp. (THC) reported a loss that narrowed to $59 million, or 12 cents per share. Analysts forecast a loss of 7 cents per share.
Scheduled Earnings Reports (Wednesday)
General Motors, DirecTV, Time Warner, Frontier Oil, News Corp, Sara Lee, Harrah?s Entertainment, Orient-Express Hotels, Salem Communications, Valero
Stocks in the News
Molson Coors (TAP) reported higher costs and lower volume cut into the bottom line in the third quarter, as the brewer reported that its profit dipped slightly on the period.
Sun Microsystems (JAVA) returned to a profit that matched Wall Street forecasts, but revenue fell a bit short of estimates.
IndyMac Bancorp (IMB), parent of IndyMac Bank and a major mortgage lender, swung to a third-quarter net loss from a year-earlier profit.
Monday, November 5, 2007
The PremiereTrade Market Wrap for 11/05/07
The U.S. services sector grew at a faster-than-expected rate in October boosted by strength in new orders. The Institute for Supply Management's index gauging the health of non-manufacturing industries registered 55.8, up from 54.8 in September.
Citigroup Inc. (C) has forced out Chuck Prince as chairman and chief executive amid word the financial-services giant will write down as much as another $11 billion in bad mortgage assets. Robert Rubin, the former U.S. Treasury secretary and co-head of Goldman Sachs, will become chairman.
Time Warner?s (TWX) Chief Executive Richard Parsons will step down and be replaced by Chief Operating Officer Jeffrey Bewkes. Bewkes, identified as the heir apparent since 2005, will take over the CEO job on January 1st. Parsons will remain as chairman.
IAC/InterActiveCorp (IACI), the Internet conglomerate run by media mogul Barry Diller, said it will break itself into five publicly-traded businesses. The company said its HSN home shopping network, Ticketmaster ticketing service, Interval time-share business and LendingTree mortgage referral units would be spun off.
PetroChina Co. (PTR) shares more than doubled in their Shanghai debut, giving the oil giant a $1 trillion market capitalization and easily surpassing Exxon Mobil as the world's largest company.
Fed Chairman Ben Bernanke will head to Capitol Hill to give his views on the economy. Bernanke's appearance in front of the Joint Economic Committee on Thursday could be the highlight of the coming week's economic news.
In Forex News Today
The dollar is not getting much respect these days and nothing seems to be able to prop it up. The US currency is getting pushed around with little regard. With the subprime mortgage house of cards falling down and billions of dollars leaving top financial banks - there is an uneasy feeling of crisis; the oil price is approaching the $100/barrel mark, gold continues to advance, many equities are taking a reality check, and jobs are only starting to get wiped out. All these factors are playing a part in the continuing decline of the US Dollar.
The Canadian dollar meantime surged to its highest level against the US dollar since the currency was floated half a century ago after surprisingly strong Canadian employment data improved the loonie?s interest rate appeal. The Canadian dollar has risen over 20 per cent against the dollar so far this year. Analysts said the recent jobs data increased the chances that the Bank of Canada would leave interest rate on hold at 4.5 per cent in the coming months.
And BNP Paribas chief currency strategist said the dollar may drop to $1.50 per euro by end of the year. The median estimate of 42 strategists is for the dollar to end the year at $1.43. Among those surveyed last week, the forecast ranges from $1.42 to $1.50.
Scheduled Economic Reports (Tuesday)
Retail Chain Index (Week of November 3rd)
In Earnings News
Burger King Holdings Inc. (BKC) said its fiscal first-quarter earnings rose 23 percent, surpassing Wall Street expectations. The chain earned $49 million, or 35 cents per share. Analysts expected 33 cents.
Entergy Corp. (ETR) reported its third-quarter profit jumped 19 percent. Net income rose to $461.2 million, or $2.30 per share. Analysts expected $2.18 a share.
Food distributor Sysco Corp. (SYY) reported it earned $267 million, or 43 cents per share. Analysts, on average, expected profit of 41 cents per share.
Scheduled Earnings Reports (Tuesday)
Cox Radio, Avis Budget Group, Cooper Tire & Rubber, Silicon Graphics, Molson Coors Brewing, El Paso Corp, HealthSouth, Nortel Networks, Ruth?s Chris Steakhouse, Tenet Healthcare
Stocks in the News
PepsiCo (PEP) reorganized its business into three units - PepsiCo Americas Foods; PepsiCo Americas Beverages; and PepsiCo International.
The Home Depot Inc. (HD) and Lowe's Cos. (LOW), were downgraded by a Deutsche Bank analyst who said that a recovery in the U.S. housing market is further off than he previously thought.
And Dell Inc. (DELL) will acquire privately held EqualLogic, a network-storage provider, for $1.4 billion in cash.
Citigroup Inc. (C) has forced out Chuck Prince as chairman and chief executive amid word the financial-services giant will write down as much as another $11 billion in bad mortgage assets. Robert Rubin, the former U.S. Treasury secretary and co-head of Goldman Sachs, will become chairman.
Time Warner?s (TWX) Chief Executive Richard Parsons will step down and be replaced by Chief Operating Officer Jeffrey Bewkes. Bewkes, identified as the heir apparent since 2005, will take over the CEO job on January 1st. Parsons will remain as chairman.
IAC/InterActiveCorp (IACI), the Internet conglomerate run by media mogul Barry Diller, said it will break itself into five publicly-traded businesses. The company said its HSN home shopping network, Ticketmaster ticketing service, Interval time-share business and LendingTree mortgage referral units would be spun off.
PetroChina Co. (PTR) shares more than doubled in their Shanghai debut, giving the oil giant a $1 trillion market capitalization and easily surpassing Exxon Mobil as the world's largest company.
Fed Chairman Ben Bernanke will head to Capitol Hill to give his views on the economy. Bernanke's appearance in front of the Joint Economic Committee on Thursday could be the highlight of the coming week's economic news.
In Forex News Today
The dollar is not getting much respect these days and nothing seems to be able to prop it up. The US currency is getting pushed around with little regard. With the subprime mortgage house of cards falling down and billions of dollars leaving top financial banks - there is an uneasy feeling of crisis; the oil price is approaching the $100/barrel mark, gold continues to advance, many equities are taking a reality check, and jobs are only starting to get wiped out. All these factors are playing a part in the continuing decline of the US Dollar.
The Canadian dollar meantime surged to its highest level against the US dollar since the currency was floated half a century ago after surprisingly strong Canadian employment data improved the loonie?s interest rate appeal. The Canadian dollar has risen over 20 per cent against the dollar so far this year. Analysts said the recent jobs data increased the chances that the Bank of Canada would leave interest rate on hold at 4.5 per cent in the coming months.
And BNP Paribas chief currency strategist said the dollar may drop to $1.50 per euro by end of the year. The median estimate of 42 strategists is for the dollar to end the year at $1.43. Among those surveyed last week, the forecast ranges from $1.42 to $1.50.
Scheduled Economic Reports (Tuesday)
Retail Chain Index (Week of November 3rd)
In Earnings News
Burger King Holdings Inc. (BKC) said its fiscal first-quarter earnings rose 23 percent, surpassing Wall Street expectations. The chain earned $49 million, or 35 cents per share. Analysts expected 33 cents.
Entergy Corp. (ETR) reported its third-quarter profit jumped 19 percent. Net income rose to $461.2 million, or $2.30 per share. Analysts expected $2.18 a share.
Food distributor Sysco Corp. (SYY) reported it earned $267 million, or 43 cents per share. Analysts, on average, expected profit of 41 cents per share.
Scheduled Earnings Reports (Tuesday)
Cox Radio, Avis Budget Group, Cooper Tire & Rubber, Silicon Graphics, Molson Coors Brewing, El Paso Corp, HealthSouth, Nortel Networks, Ruth?s Chris Steakhouse, Tenet Healthcare
Stocks in the News
PepsiCo (PEP) reorganized its business into three units - PepsiCo Americas Foods; PepsiCo Americas Beverages; and PepsiCo International.
The Home Depot Inc. (HD) and Lowe's Cos. (LOW), were downgraded by a Deutsche Bank analyst who said that a recovery in the U.S. housing market is further off than he previously thought.
And Dell Inc. (DELL) will acquire privately held EqualLogic, a network-storage provider, for $1.4 billion in cash.
Friday, November 2, 2007
The PremiereTrade Market Wrap for 11/02/07
Employers added more workers to payrolls in October, according to the government's closely watched jobs report that showed the labor market significantly stronger than Wall Street expectations. There was a net gain of 166,000 jobs in the month. Economists had forecast an 80,000 increase in the period. The unemployment rate stayed at 4.7 percent.
Treasuries fell after the government released the jobs report, suggesting that the U.S. economy is weathering the worst housing slump in 16 years. Investors sold bonds as the Labor Department data encouraged traders to reduce bets that the Federal Reserve will cut borrowing costs once more this year. This week the Fed said inflation and growth risks are ``roughly balanced.''
Orders for U.S.-made factory goods rose 0.2% in September on higher gasoline prices. Orders for durable goods, such as airplanes and computers, fell 1.7% on a big drop in orders for defense aircraft and other defense goods. Excluding defense goods, orders for factory goods rose 1.3%.
In Forex News Today
The U.S. dollar fell against the euro in early trading Friday as markets looked ahead to the release of non-farm payrolls data amid continuing worries about the credit crunch. The 13-nation euro bought $1.4471 Friday, up from the $1.4462 it bought in late New York trading, but down from Wednesday's record high of $1.4503.
The U.S. currency plummeted Wednesday after the Federal Reserve's decision to cut interest rates by a quarter of a point, and has continued to suffer from market jitters about the U.S. economy driven by the sub-prime market crisis as markets looked ahead to the release of information about the October U.S. non-farm payrolls data later Friday.
In addition, the euro has been helped by sentiment that the European Central Bank has yet to finish a gradual campaign of rate increases, while the pound has benefited from expectations that the Bank of England will leave rates untouched rather than follow the Fed in cutting the cost of borrowing.
Scheduled Economic Reports (Next Week)
ISM Services Index, Productivity, Wholesale Trade, Consumer Credit, Trade, Import Prices, and Consumer Sentiment
In Earnings News
Chevron (CVX) reported third-quarter net income fell 26%. The company said profit dropped to $3.7 billion, or $1.75 a share, from $5 billion, or $2.29 a share. Analysts expected $2.07.
International Paper Co. (IP) said its third-quarter profit declined. Profit declined to $217 million, or 51 cents per share, from $224 million, or 46 cents per share, a year ago. Analysts forecast earnings per share of 57 cents.
The New York Stock Exchange (NYX) reported its third-quarter profit more than tripled. NYSE Euronext said net income surged to $258 million, or 97 cents per share, from $68 million, or 43 cents per share, a year ago.
Martha Stewart Living Omnimedia Inc. (MSO) reported a loss of $4.4 million, or 8 cents per share, versus a loss of $25.2 million, or 49 cents per share, last year. Analysts predicted a loss of 13 cents per share.
Viacom (VIA-B), which owns MTV, VH1, Nickelodeon and Paramount Pictures, earned $641.6 million, or 96 cents per share, in the three months ending in September, up from $356.8 million, or 50 cents per share, in the same period a year earlier.
Scheduled Earnings Reports (Next Week)
Disney, Ford, Cox Radio, Burger King, Anadarko Petroleum, Valero, Avis Budget Group, Cooper Tire & Rubber, Papa Johns International, Cisco Systems, Time Warner, Ballard Power Systems, Dean Foods, Public Storage
Stocks in the News
Napster Inc (NAPS) reported a second-quarter loss of $5.1 million, or 12 cents a share, compared with a loss of $9 million, or 21 cents a share, a year ago.
Unilever Plc (UL) reported a 31% increase in profits helped along by lower taxes and financing costs. Sales also increased 1%, led by growth in the Asia-Africa region.
Callaway Golf (ELY) reported a third-quarter net profit of $1.27 million, or 2 cents a share, compared with a loss of $11.9 million, or 18 cents a share, a year earlier.
Treasuries fell after the government released the jobs report, suggesting that the U.S. economy is weathering the worst housing slump in 16 years. Investors sold bonds as the Labor Department data encouraged traders to reduce bets that the Federal Reserve will cut borrowing costs once more this year. This week the Fed said inflation and growth risks are ``roughly balanced.''
Orders for U.S.-made factory goods rose 0.2% in September on higher gasoline prices. Orders for durable goods, such as airplanes and computers, fell 1.7% on a big drop in orders for defense aircraft and other defense goods. Excluding defense goods, orders for factory goods rose 1.3%.
In Forex News Today
The U.S. dollar fell against the euro in early trading Friday as markets looked ahead to the release of non-farm payrolls data amid continuing worries about the credit crunch. The 13-nation euro bought $1.4471 Friday, up from the $1.4462 it bought in late New York trading, but down from Wednesday's record high of $1.4503.
The U.S. currency plummeted Wednesday after the Federal Reserve's decision to cut interest rates by a quarter of a point, and has continued to suffer from market jitters about the U.S. economy driven by the sub-prime market crisis as markets looked ahead to the release of information about the October U.S. non-farm payrolls data later Friday.
In addition, the euro has been helped by sentiment that the European Central Bank has yet to finish a gradual campaign of rate increases, while the pound has benefited from expectations that the Bank of England will leave rates untouched rather than follow the Fed in cutting the cost of borrowing.
Scheduled Economic Reports (Next Week)
ISM Services Index, Productivity, Wholesale Trade, Consumer Credit, Trade, Import Prices, and Consumer Sentiment
In Earnings News
Chevron (CVX) reported third-quarter net income fell 26%. The company said profit dropped to $3.7 billion, or $1.75 a share, from $5 billion, or $2.29 a share. Analysts expected $2.07.
International Paper Co. (IP) said its third-quarter profit declined. Profit declined to $217 million, or 51 cents per share, from $224 million, or 46 cents per share, a year ago. Analysts forecast earnings per share of 57 cents.
The New York Stock Exchange (NYX) reported its third-quarter profit more than tripled. NYSE Euronext said net income surged to $258 million, or 97 cents per share, from $68 million, or 43 cents per share, a year ago.
Martha Stewart Living Omnimedia Inc. (MSO) reported a loss of $4.4 million, or 8 cents per share, versus a loss of $25.2 million, or 49 cents per share, last year. Analysts predicted a loss of 13 cents per share.
Viacom (VIA-B), which owns MTV, VH1, Nickelodeon and Paramount Pictures, earned $641.6 million, or 96 cents per share, in the three months ending in September, up from $356.8 million, or 50 cents per share, in the same period a year earlier.
Scheduled Earnings Reports (Next Week)
Disney, Ford, Cox Radio, Burger King, Anadarko Petroleum, Valero, Avis Budget Group, Cooper Tire & Rubber, Papa Johns International, Cisco Systems, Time Warner, Ballard Power Systems, Dean Foods, Public Storage
Stocks in the News
Napster Inc (NAPS) reported a second-quarter loss of $5.1 million, or 12 cents a share, compared with a loss of $9 million, or 21 cents a share, a year ago.
Unilever Plc (UL) reported a 31% increase in profits helped along by lower taxes and financing costs. Sales also increased 1%, led by growth in the Asia-Africa region.
Callaway Golf (ELY) reported a third-quarter net profit of $1.27 million, or 2 cents a share, compared with a loss of $11.9 million, or 18 cents a share, a year earlier.
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