JDfn Daily Digest - August 25, 2008

The National Association of Realtors reported that resales of U.S. single-family homes and condos rose 3.1% in July to a seasonally adjusted annual rate of 5.0 million; economists expected sales to rise to 4.91 million. Despite the increase in sales, the inventory of unsold homes on the market rose 3.9% to an 11.2 month supply.

The Lundberg Survey shows gas prices have dropped 15 cents a gallon in the last two weeks. The average price of a gallon of regular gasoline at self-serve stations was $3.70 Friday. Despite the drop, gas nationally was almost 95 cents higher than a year ago.

Canadian oil and natural gas driller Precision Drilling Trust (PDS) is buying gas driller Grey Wolf (GW) for $2.02 billion. Precision announced it would pay $1.12 billion in cash and 42 million units valued at $896.7 million, based on Friday's closing stock price.

Broadcom Corp (BRCM) plans to buy Advanced Micro Devices' (AMD) digital television business for $192.8 million in cash in a move to broaden its own product portfolio. The board of directors of each company approved the deal and the transaction does not require approval by shareholders of either company.

Wyndham Hotel Group (WYN) announced an exclusive agreement with a South Korean company to develop 20 Ramada Encore hotels throughout that country during the next six years.

Indiana has sued Countrywide Financial (CFC), becoming the latest state to take the mortgage lender to court over its lending practices. Indiana Attorney General Steve Carter said that a state investigation uncovered a "pattern of misleading and questionable practices" by Countrywide Home Loans and its parent company.

Scheduled U.S. Economic Reports (Tuesday)

Retail Chain Index (Week of Aug 23rd), Case-Shiller Home Prices (June), New Home Sales (July), Consumer Confidence (Aug)

In Earnings News

LDK Solar Co. Ltd. (LDK) projected 2009 revenue above Wall Street estimates as the China-based solar wafer maker said it met its goal of expanding its wafer production capacity ahead of schedule. LDK said it expects revenue between $2.8 billion and $3 billion for 2009. Analysts expect full-year revenue of $2.43 billion for next year.

Gilat Satellite Networks Ltd. (GILT), which services satellite-based communications networks, said its second-quarter profit fell on weak results from its Colombian operations. The company earned $1.3 million, or 3 cents per share, compared with profit of $5.5 million, or 13 cents per share, during the same period a year prior.

Healthways Inc. (HWAY) set profit guidance below Wall Street forecasts for the quarter ending in November, citing contract losses and renegotiations. The Company forecast profit between 34 cents and 37 cents per share for the quarter, below the average estimate of analysts of 46 cents per share.
Scheduled Earnings Reports (Tuesday)

Borders Group, American Eagle Outfitters, Michaels Stores, Chicos FAS, Smithfield Foods, Big Lots

Stocks in the News

Citigroup Inc (C) plans to reorganize the capital- markets business within its investment bank.

Lehman Brothers Holdings (LEH) traded higher after Richard Fuld, the chief executive of the investment firm, is facing an internal campaign to force him out by the end of the year.

Aon Corp (AOC) may have its ratings downgraded by Standard & Poor's on the company's proposed acquisition of reinsurance and risk intermediary Benfield Group for about $1.4 billion.

China Sunergy (CSUN) traded higher after Jefferies & Co. upgraded the solar-cell manufacturer to buy from hold.

Toyota Motor Corp (TM) said it will raise retail prices of some hybrid and commercial vehicles in Japan from Sept. 1st to offset higher raw-material costs.

American International Group (AIG) and its subsidiaries may be downgraded at Fitch Ratings because of uncertainties about a business review the company plans to complete in September.