JDfn Daily Digest - October 2, 2008
House members are getting another chance to vote on a financial rescue bill that has infuriated millions of voters after the Senate added tax cuts and other sweeteners and passed it handily. Senators passed the much-criticized measure in a 74-25 vote, sending it to the other side of the Capitol for a showdown vote expected tomorrow.
The SEC has extended an unprecedented ban against all short-selling in the shares of more than 800 financial companies, keeping it in place at least until after Congress enacts a massive financial bailout plan. The ban, which was scheduled to expire today, will now last until 11:59 p.m. (Eastern Time) on Oct. 17th.
Former Federal Reserve Chairman Alan Greenspan said financial markets and the economy will recover as investors regain confidence. Greenspan urged lawmakers last week to back ``extensive'' measures to tackle the worst financial crisis since the 1930s and head off a recession.
Freddie Mac (FRE) said the 30-year fixed-rate mortgage average rose slightly from a week ago. The average was 6.10% for the week ending Oct. 2nd, compared with 6.09% last week. A year ago, the average was 6.37%.
The Labor Department reported that initial claims for jobless benefits increased by 1,000 to a seasonally adjusted 497,000. That's significantly above analysts' estimate of 475,000. The total is the highest since just after the Sept. 11 terrorist attacks seven years ago.
The Commerce Department reported that demand for U.S. factory goods dropped at the fastest rate in two years in August on much lower orders for metals, machinery and vehicles. Factory orders fell 4%, worse than the 3% drop expected by economists. Orders for durable goods fell 4.8% in August, revised lower from the 4.5% estimate provided a week ago.
John Thain, the executive who ushered the New York Stock Exchange into the era of global electronic trading and then negotiated the sale of Merrill Lynch & Co. (MER), will remain on with Bank of America Corp. (BA) in a "major role" after it completes the acquisition of Merrill. The Merrill deal is the second major acquisition for Bank of America this year.
NASA has awarded Boeing Co. (BA) a $650 million sole-source contract extension for its International Space Station project. Boeing said that the contract will allow it to continue to deliver and integrate remaining components and software for the space station. The 24-month contract will keep Boeing on the project through 2010.
Cooper Tire & Rubber Co. (CTB) estimates shortages caused by Gulf Coast hurricanes cost it $9 million to $11 million in the third quarter. The company also says it is responding to soft demand in the North American market, and that available raw materials have been shifted to plants making in-demand products.
Scheduled U.S. Economic Reports (Friday)
Non-Farm Payrolls (Sep), Unemployment Rate (Sep), ISM Services Index (Sep)
In Earnings News
Marriott (MAR) reported net income slipped to $94 million, or 26 cents per share. Marriott International says revenue rose 1 percent to $2.96 billion from $2.94 billion. Analysts forecast earnings of 32 cents per share on revenue of $2.95 billion.
Constellation Brands Inc. (STZ) lost $22.7 million, or 11 cents per Class A share, in the quarter ended Aug. 31st. Analysts expected earnings of 44 cents a share on net sales of $964.5 million.
Mosaic Company (MOS) earned $1.18 billion, or $2.65 per share, compared with profit of $305.5 million, or 69 cents per share, during the same period a year ago. Analysts expected profit of $2.94 per share on revenue of $4.11 billion.
Standard Microsystems Corp. (SMSC) said its fiscal second-quarter profit declined. For the three months ended Aug. 31, the company earned $8.7 million, or 38 cents per share. Analysts, on average, were expecting a profit of 47 cents per share.
Scheduled Earnings Reports (Friday)
Family Dollar Stores, Concord Camera, Johnson Health Tech, U.S. Cellular. Third quarter earnings season will begin on October 7th when Alcoa releases its quarterly numbers.
Stocks in the News
Immucor Inc’s (BLUD) fiscal first-quarter profit rose to $20 million, or 28 cents a share, from $17.8 million, or 25 cents a share, a year ago.
Continental Airlines (CAL) reported September traffic fell 10.9% to 6.46 billion revenue passenger miles from 7.29 billion a year ago.
Rite Aid Corp (RAD) said that its September same-store sales rose 1.7%.
UBS (UBS) expects to return to profit in the third quarter after substantially reducing its exposure to U.S. commercial and residential mortgages.
Walgreens (WAG) reported that its September sales at stores open at least a year rose 4.7%.
LaBranche & Company (LAB) expects to report a third-quarter net loss of $4 million to $6.5 million, and adjusted net income of $12.5 million to $15 million.
Wachovia Corp (WB) has limited the access of nearly 1,000 colleges to $9.3B it has held for them in a short-term investment fund, raising worries on some campuses about meeting payrolls and other obligations.
Micron Technology (MU) fiscal fourth-quarter net loss deepened thanks mostly to charges related to inventory write-downs and price adjustments.
The SEC has extended an unprecedented ban against all short-selling in the shares of more than 800 financial companies, keeping it in place at least until after Congress enacts a massive financial bailout plan. The ban, which was scheduled to expire today, will now last until 11:59 p.m. (Eastern Time) on Oct. 17th.
Former Federal Reserve Chairman Alan Greenspan said financial markets and the economy will recover as investors regain confidence. Greenspan urged lawmakers last week to back ``extensive'' measures to tackle the worst financial crisis since the 1930s and head off a recession.
Freddie Mac (FRE) said the 30-year fixed-rate mortgage average rose slightly from a week ago. The average was 6.10% for the week ending Oct. 2nd, compared with 6.09% last week. A year ago, the average was 6.37%.
The Labor Department reported that initial claims for jobless benefits increased by 1,000 to a seasonally adjusted 497,000. That's significantly above analysts' estimate of 475,000. The total is the highest since just after the Sept. 11 terrorist attacks seven years ago.
The Commerce Department reported that demand for U.S. factory goods dropped at the fastest rate in two years in August on much lower orders for metals, machinery and vehicles. Factory orders fell 4%, worse than the 3% drop expected by economists. Orders for durable goods fell 4.8% in August, revised lower from the 4.5% estimate provided a week ago.
John Thain, the executive who ushered the New York Stock Exchange into the era of global electronic trading and then negotiated the sale of Merrill Lynch & Co. (MER), will remain on with Bank of America Corp. (BA) in a "major role" after it completes the acquisition of Merrill. The Merrill deal is the second major acquisition for Bank of America this year.
NASA has awarded Boeing Co. (BA) a $650 million sole-source contract extension for its International Space Station project. Boeing said that the contract will allow it to continue to deliver and integrate remaining components and software for the space station. The 24-month contract will keep Boeing on the project through 2010.
Cooper Tire & Rubber Co. (CTB) estimates shortages caused by Gulf Coast hurricanes cost it $9 million to $11 million in the third quarter. The company also says it is responding to soft demand in the North American market, and that available raw materials have been shifted to plants making in-demand products.
Scheduled U.S. Economic Reports (Friday)
Non-Farm Payrolls (Sep), Unemployment Rate (Sep), ISM Services Index (Sep)
In Earnings News
Marriott (MAR) reported net income slipped to $94 million, or 26 cents per share. Marriott International says revenue rose 1 percent to $2.96 billion from $2.94 billion. Analysts forecast earnings of 32 cents per share on revenue of $2.95 billion.
Constellation Brands Inc. (STZ) lost $22.7 million, or 11 cents per Class A share, in the quarter ended Aug. 31st. Analysts expected earnings of 44 cents a share on net sales of $964.5 million.
Mosaic Company (MOS) earned $1.18 billion, or $2.65 per share, compared with profit of $305.5 million, or 69 cents per share, during the same period a year ago. Analysts expected profit of $2.94 per share on revenue of $4.11 billion.
Standard Microsystems Corp. (SMSC) said its fiscal second-quarter profit declined. For the three months ended Aug. 31, the company earned $8.7 million, or 38 cents per share. Analysts, on average, were expecting a profit of 47 cents per share.
Scheduled Earnings Reports (Friday)
Family Dollar Stores, Concord Camera, Johnson Health Tech, U.S. Cellular. Third quarter earnings season will begin on October 7th when Alcoa releases its quarterly numbers.
Stocks in the News
Immucor Inc’s (BLUD) fiscal first-quarter profit rose to $20 million, or 28 cents a share, from $17.8 million, or 25 cents a share, a year ago.
Continental Airlines (CAL) reported September traffic fell 10.9% to 6.46 billion revenue passenger miles from 7.29 billion a year ago.
Rite Aid Corp (RAD) said that its September same-store sales rose 1.7%.
UBS (UBS) expects to return to profit in the third quarter after substantially reducing its exposure to U.S. commercial and residential mortgages.
Walgreens (WAG) reported that its September sales at stores open at least a year rose 4.7%.
LaBranche & Company (LAB) expects to report a third-quarter net loss of $4 million to $6.5 million, and adjusted net income of $12.5 million to $15 million.
Wachovia Corp (WB) has limited the access of nearly 1,000 colleges to $9.3B it has held for them in a short-term investment fund, raising worries on some campuses about meeting payrolls and other obligations.
Micron Technology (MU) fiscal fourth-quarter net loss deepened thanks mostly to charges related to inventory write-downs and price adjustments.
Views: 19
Comment
© 2024 Created by James Dicks.
Powered by
You need to be a member of JDFN Financial Network to add comments!
Join JDFN Financial Network