JDfn Daily Digest - September 11, 2008
The Labor Department reported that applications for jobless benefits dropped to a seasonally adjusted 445,000, down by 6,000 from the prior week. That is above analysts' expectations of 440,000. The four-week moving average, which smoothes out week-to-week fluctuations, rose slightly to 440,000.
The Commerce Department reported that the trade deficit rose by 5.7 percent to $62.2 billion in July, much worse than the $58 billion deficit that Wall Street expected. It pushed the gap between what America imports and what it sells abroad to the highest level since March 2007.
An index for U.S. import prices fell 3.7% in August -- the first decrease since December and the largest one-month decline since the index was first published monthly in December 1988. Economists were looking for a 1.7% decline. Petroleum prices fell 12.8% -- the largest monthly decrease since April 2003.
Bank of America Corp. (BAC) said it will buy back about $4.5 billion worth of auction-rate securities held by roughly 5,500 customers nationwide as part of a settlement agreement with Massachusetts regulators.
FLIR Systems Inc. (FLIR), which makes thermal imaging and stabilized camera systems, said that it received a $96.6 million U.S. Army contract for its stabilized multi-sensor systems. The military contract for the Army's Space and Missile Defense Command was issued under a previously announced contract modification.
The Army has awarded a $34 million contract to a division of General Dynamics Corp. (GD) for work on the Stryker armored vehicle. The contract is for Land Warrior systems, spare parts and other services for the 5th Brigade 2nd Infantry Division Stryker Brigade Combat Team.
And Northrop Grumman (NOC) said that its shipbuilding business received a $5.1 billion contract to build the U.S. Navy's first next-generation aircraft carrier.
Host Hotels & Resorts Inc. (HST) said its European joint venture agreed to buy six hotels for about 131 million Euros ($184.9 million), advancing its expansion into Germany and France.
Scheduled U.S. Economic Reports (Friday)
Producer Price Index (Aug), Retail Sales (Aug), Consumer Sentiment (Sept), Inventories (July)
In Earnings News
Campbell Soup Company (CPB) reported fourth-quarter net income rose 46% to $89 million or 24 cents a share from $61 million or 16 cents a share in the year-ago period. Wall Street analysts expected earnings of 25 cents a share.
Krispy Kreme Doughnuts (KKD) said it narrowed its second-quarter loss to $1.9 million, or 3 cents a share, from $27 million, or 42 cents a share, in the year-ago period, which included a 35-cent charge. Revenues for the quarter decreased 9.5% to $94.2 million compared to $104.1 million.
Spartech Corp. (SEH), which makes plastic sheet materials, said its third-quarter earnings fell 50 percent due to weak demand and high resin costs. Net profit in the quarter dropped to $4.4 million or 15 cents per share from $8.8 million, or 27 cents per share, in the same period a year ago.
Lululemon Athletica Inc. (LULU) reported its second-quarter profit soared due to a double-digit boost in sales at stores open at least a year. For the quarter, net income jumped to $11.1 million, or 16 cents per share. Analysts expected, on average, profit of 13 cents per share.
Scheduled Earnings Reports (Friday)
Burlington Coat Factory, Claire’s Stores, Apria Healthcare
Stocks in the News
General Motors (GM) is under pressure from the U.S. government's pension-insurance agency to absorb at least $1.5 billion of the pension obligations of parts producer Delphi Corp.
CME Group (CME) said that because of Hurricane Ike's potential impact on the U.S. Gulf Coast, the firm would extend trading hours for energy futures and options.
Methode Electronics (MEI) fiscal first-quarter net income fell 18% to $6.8 million, or 18 cents a share, from $8.3 million, or 22 cents, in the year-earlier period.
Washington Mutual Inc. (WM) shares fell to their lowest point in nearly two decades after Lehman Brothers announced plans to sell off assets.
Aladdin Knowledge Systems’ (ALDN) largest holder said it asked the Tel Aviv provider of computer-security solutions for accurate lists of its shareholders so it can communicate with them.
Ericsson AB (ERIC) said it has won a contract to supply and operate a complete GSM mobile network for Cable & Wireless Europe, Asia and U.S.
AstraZeneca (AZN) was downgraded to sell from neutral by Goldman Sachs.
Titan International (TWI) said it ended talks under which it might have offered to buy 51% or more of Titan Europe Plc.
Myriad Genetics (MYGN) said it's considering whether to spin off the pharmaceutical subsidiary from Myriad's molecular diagnostic business.
Apple Inc. (AAPL) executives have agreed to pay $14 million to settle investor lawsuits stemming from disputes that arose from stock-option grants.
The Commerce Department reported that the trade deficit rose by 5.7 percent to $62.2 billion in July, much worse than the $58 billion deficit that Wall Street expected. It pushed the gap between what America imports and what it sells abroad to the highest level since March 2007.
An index for U.S. import prices fell 3.7% in August -- the first decrease since December and the largest one-month decline since the index was first published monthly in December 1988. Economists were looking for a 1.7% decline. Petroleum prices fell 12.8% -- the largest monthly decrease since April 2003.
Bank of America Corp. (BAC) said it will buy back about $4.5 billion worth of auction-rate securities held by roughly 5,500 customers nationwide as part of a settlement agreement with Massachusetts regulators.
FLIR Systems Inc. (FLIR), which makes thermal imaging and stabilized camera systems, said that it received a $96.6 million U.S. Army contract for its stabilized multi-sensor systems. The military contract for the Army's Space and Missile Defense Command was issued under a previously announced contract modification.
The Army has awarded a $34 million contract to a division of General Dynamics Corp. (GD) for work on the Stryker armored vehicle. The contract is for Land Warrior systems, spare parts and other services for the 5th Brigade 2nd Infantry Division Stryker Brigade Combat Team.
And Northrop Grumman (NOC) said that its shipbuilding business received a $5.1 billion contract to build the U.S. Navy's first next-generation aircraft carrier.
Host Hotels & Resorts Inc. (HST) said its European joint venture agreed to buy six hotels for about 131 million Euros ($184.9 million), advancing its expansion into Germany and France.
Scheduled U.S. Economic Reports (Friday)
Producer Price Index (Aug), Retail Sales (Aug), Consumer Sentiment (Sept), Inventories (July)
In Earnings News
Campbell Soup Company (CPB) reported fourth-quarter net income rose 46% to $89 million or 24 cents a share from $61 million or 16 cents a share in the year-ago period. Wall Street analysts expected earnings of 25 cents a share.
Krispy Kreme Doughnuts (KKD) said it narrowed its second-quarter loss to $1.9 million, or 3 cents a share, from $27 million, or 42 cents a share, in the year-ago period, which included a 35-cent charge. Revenues for the quarter decreased 9.5% to $94.2 million compared to $104.1 million.
Spartech Corp. (SEH), which makes plastic sheet materials, said its third-quarter earnings fell 50 percent due to weak demand and high resin costs. Net profit in the quarter dropped to $4.4 million or 15 cents per share from $8.8 million, or 27 cents per share, in the same period a year ago.
Lululemon Athletica Inc. (LULU) reported its second-quarter profit soared due to a double-digit boost in sales at stores open at least a year. For the quarter, net income jumped to $11.1 million, or 16 cents per share. Analysts expected, on average, profit of 13 cents per share.
Scheduled Earnings Reports (Friday)
Burlington Coat Factory, Claire’s Stores, Apria Healthcare
Stocks in the News
General Motors (GM) is under pressure from the U.S. government's pension-insurance agency to absorb at least $1.5 billion of the pension obligations of parts producer Delphi Corp.
CME Group (CME) said that because of Hurricane Ike's potential impact on the U.S. Gulf Coast, the firm would extend trading hours for energy futures and options.
Methode Electronics (MEI) fiscal first-quarter net income fell 18% to $6.8 million, or 18 cents a share, from $8.3 million, or 22 cents, in the year-earlier period.
Washington Mutual Inc. (WM) shares fell to their lowest point in nearly two decades after Lehman Brothers announced plans to sell off assets.
Aladdin Knowledge Systems’ (ALDN) largest holder said it asked the Tel Aviv provider of computer-security solutions for accurate lists of its shareholders so it can communicate with them.
Ericsson AB (ERIC) said it has won a contract to supply and operate a complete GSM mobile network for Cable & Wireless Europe, Asia and U.S.
AstraZeneca (AZN) was downgraded to sell from neutral by Goldman Sachs.
Titan International (TWI) said it ended talks under which it might have offered to buy 51% or more of Titan Europe Plc.
Myriad Genetics (MYGN) said it's considering whether to spin off the pharmaceutical subsidiary from Myriad's molecular diagnostic business.
Apple Inc. (AAPL) executives have agreed to pay $14 million to settle investor lawsuits stemming from disputes that arose from stock-option grants.
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