JDfn Daily Digest - August 11, 2008
According to the Lundberg Survey, the average price of a gallon of regular gasoline at self-serve stations was $3.85 Friday, down almost 15 cents from two weeks ago. Mid-grade went for $3.98 and premium went for $4.10.
Treasury Secretary Henry Paulson is taking a patient approach when it comes to the possibility of a second round of economic aid. Paulson says the $168 billion program of tax rebate checks that President Bush signed into law in February was the right size to help the struggling economy this year. A second stimulus package is the idea of congressional Democrats.
Economists believe the current U.S. economic downturn will extend into next year as the longest expansion in consumer spending on record comes to an end. Economists forecast that the U.S. economy will grow at an average 0.7 percent annual pace from July through December, half the gain in the first six months of the year.
Waste Management Inc (WMT) raised its unsolicited takeover bid for rival Republic Services (RSG) by about 9 percent to $6.7 billion in an attempt to try to prevent Republic's agreement to obtain Allied Waste Industries Inc (AW).
Pilots at Delta Air Lines Inc. (DAL) and Northwest Airlines Corp. (NWA) are being encouraged by their unions to approve a joint collective bargaining agreement. The agreement covers about 12,000 pilots of the two airlines. The pilots still don't have a deal to integrate their seniority lists.
Meantime, Verizon Communications Inc. (VZ) and two unions which represent 65,000 workers who had threatened to strike, have agreed on a new three-year contract that provides 10.5 percent in wage increases as well as other changes in retirement benefits.
Pilgrim’s Pride Corp (PPC) set plans to idle chicken-processing plants in Arkansas and Louisiana, citing its ongoing struggle with high feed costs and an oversupply of chicken. The company said both moves, which will likely be completed within 60 days, will eliminate about 600 jobs.
Scheduled U.S. Economic Reports (Tuesday)
Retail Chain Index (Week of August 9), Trade Balance (Jun)
In Earnings News
Diebold Inc (DBD) earned $25.6 million, or 38 cents per share, compared with profit of $26.9 million, or 40 cents per share, during the same period a year prior. Analysts expected profit of 34 cents per share on revenue of $715.2 million.
Sysco Corp. (SYY) said its fourth-quarter profit jumped 10 percent, helped by managing costs and a boost in sales. For the quarter, net income rose to $334.1 million, or 55 cents per share. Analysts expected profit of 52 cents per share.
Calpine Corp. (CPN) said it swung to a second-quarter profit on higher electricity rates and lower costs. The company earned $197 million, or 41 cents per share. Analysts were expecting a profit of 10 cents per share.
AgFeed Industries Inc. (FEED), a Chinese animal feed maker and pork producer, reported that its second-quarter profit increased due, in part, to strong sales of premix animal feed. For the quarter, net income rose to $3.9 million, or 12 cents per share. Analysts expected profit of 17 cents per share.
Scheduled Earnings Reports (Tuesday)
Tower Semiconductor, Fossil, Inc, Nvidia, Bob Evans Farms, UBS, Weir Group, Thomson Reuters Corp
Stocks in the News
Apple (AAPL) traded higher after it was announced that the company has sole d3 million iPhones just one month after its debut.
Clear Channel Outdoor Holdings (CCO) said second-quarter earnings rose to $83 million or 23 cents a share.
Pepco Holdings (POM) said its second-quarter profit totaled $15.0 million or 7 cents a share.
American Electric Power (AEP) said it formed a joint venture company with Duke Energy (DUK) to build and own new electric transmission assets.
Qwest Communications (Q) was upped to buy from hold at Citi, as the broker said the firm is ripe for both an operational and financial restructure to improve shareholder returns.
BankUnited Financial (BKUNA), Florida's largest bank, posted a quarterly loss after setting aside more money to cover defaulting loans. Its provision for loan losses rose to $130M from $4.4M.
Treasury Secretary Henry Paulson is taking a patient approach when it comes to the possibility of a second round of economic aid. Paulson says the $168 billion program of tax rebate checks that President Bush signed into law in February was the right size to help the struggling economy this year. A second stimulus package is the idea of congressional Democrats.
Economists believe the current U.S. economic downturn will extend into next year as the longest expansion in consumer spending on record comes to an end. Economists forecast that the U.S. economy will grow at an average 0.7 percent annual pace from July through December, half the gain in the first six months of the year.
Waste Management Inc (WMT) raised its unsolicited takeover bid for rival Republic Services (RSG) by about 9 percent to $6.7 billion in an attempt to try to prevent Republic's agreement to obtain Allied Waste Industries Inc (AW).
Pilots at Delta Air Lines Inc. (DAL) and Northwest Airlines Corp. (NWA) are being encouraged by their unions to approve a joint collective bargaining agreement. The agreement covers about 12,000 pilots of the two airlines. The pilots still don't have a deal to integrate their seniority lists.
Meantime, Verizon Communications Inc. (VZ) and two unions which represent 65,000 workers who had threatened to strike, have agreed on a new three-year contract that provides 10.5 percent in wage increases as well as other changes in retirement benefits.
Pilgrim’s Pride Corp (PPC) set plans to idle chicken-processing plants in Arkansas and Louisiana, citing its ongoing struggle with high feed costs and an oversupply of chicken. The company said both moves, which will likely be completed within 60 days, will eliminate about 600 jobs.
Scheduled U.S. Economic Reports (Tuesday)
Retail Chain Index (Week of August 9), Trade Balance (Jun)
In Earnings News
Diebold Inc (DBD) earned $25.6 million, or 38 cents per share, compared with profit of $26.9 million, or 40 cents per share, during the same period a year prior. Analysts expected profit of 34 cents per share on revenue of $715.2 million.
Sysco Corp. (SYY) said its fourth-quarter profit jumped 10 percent, helped by managing costs and a boost in sales. For the quarter, net income rose to $334.1 million, or 55 cents per share. Analysts expected profit of 52 cents per share.
Calpine Corp. (CPN) said it swung to a second-quarter profit on higher electricity rates and lower costs. The company earned $197 million, or 41 cents per share. Analysts were expecting a profit of 10 cents per share.
AgFeed Industries Inc. (FEED), a Chinese animal feed maker and pork producer, reported that its second-quarter profit increased due, in part, to strong sales of premix animal feed. For the quarter, net income rose to $3.9 million, or 12 cents per share. Analysts expected profit of 17 cents per share.
Scheduled Earnings Reports (Tuesday)
Tower Semiconductor, Fossil, Inc, Nvidia, Bob Evans Farms, UBS, Weir Group, Thomson Reuters Corp
Stocks in the News
Apple (AAPL) traded higher after it was announced that the company has sole d3 million iPhones just one month after its debut.
Clear Channel Outdoor Holdings (CCO) said second-quarter earnings rose to $83 million or 23 cents a share.
Pepco Holdings (POM) said its second-quarter profit totaled $15.0 million or 7 cents a share.
American Electric Power (AEP) said it formed a joint venture company with Duke Energy (DUK) to build and own new electric transmission assets.
Qwest Communications (Q) was upped to buy from hold at Citi, as the broker said the firm is ripe for both an operational and financial restructure to improve shareholder returns.
BankUnited Financial (BKUNA), Florida's largest bank, posted a quarterly loss after setting aside more money to cover defaulting loans. Its provision for loan losses rose to $130M from $4.4M.
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