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.
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