JDfn Daily Digest - July 25, 2008
Stronger demand for primary metals, machinery and electronics pushed orders for U.S.-made durable goods up 0.8% in June. Excluding the 2.6% decrease in transportation goods orders rose 2.0%, the sharpest gain since last December and was the largest increase in total orders since February. The increase was much more than anticipated and was mostly related to increased defense spending.
The consumer sentiment index from the University of Michigan hit 61.2 in July, that’s up from an earlier reading of 56.6 -- compared with 56.4 in June. The June reading was the lowest since 1980 and the third-lowest reading in the 56-year history of the survey. Economists expected a July result of 56.
The Commerce Department said U.S. home sales fell 0.6% in June. The decline in new-home sales to a seasonally adjusted annual rate of 530,000 was well above the 501,000 pace expected by economists. Median sales prices have fallen 2.0% in the past year to $230,900.
As foreclosures continue to climb across the nation, 220,000 homes were lost to bank repossessions in the second quarter. That's nearly triple the number from the same period in 2007. Almost 740,000 foreclosure filings were recorded during quarter which is up 14% from the first quarter, and 121% from the same period last year.
This news was released as Congress works to pass a housing rescue bill that will make FHA-insured loans available to many at-risk borrowers. The measure, which is expected to be passed, would take effect until Oct. 1st.
An Exxon Mobil Corp. (XOM) subsidiary and BHP Billiton (BHP) announced plans to spend $1.25 billion to tap oil and gas reserves off southern Australia. The joint venture will build an offshore platform off The Australian state of Victoria and expects to extract about one trillion cubic feet of natural gas and 110 million barrels of oil and gas liquids.
Scheduled Economic Reports (Next Week)
Case-Schiller Home Prices, Consumer Confidence, ADP Employment Index, Gross Domestic Product, Employment Cost Index, Chicago Purchasing Managers Index, ISM Manufacturing, Construction Spending, Motor Vehicle Sales, Non-Farm Payrolls
In Earnings News
Honda Motor Co. (HMC) reported a record profit for its fiscal first quarter as sales growth in new markets equalized the damage from a stronger yen and higher material costs. The company earned 179.6 billion yen ($1.68 billion) in the quarter. Analysts forecast 131.3 billion yen ($1.2 billion) in quarterly profit.
Netflix (NFLX) says its second-quarter profit increased 4 percent, assisted by a 25 percent increase in subscriptions and the introduction of a device that allows customers to stream video directly to their TVs. The company says net income rose to $26.6 million, or 42 cents per share. Analysts predicted a profit of 40 cents per share.
Wynn Resorts Ltd. (WYNN) reported that its second-quarter earnings more than tripled compared to last year. Earnings for the quarter jumped to $272 million, or $2.42 per share. Analysts forecast earnings of 93 cents per share.
Arch Coal Inc. (ACI) reported its second-quarter profit tripled on soaring global prices and tighter coal supplies, easily surpassing Street estimates. The company reported net income of $113 million, or 78 cents per share. Analysts’ expected 64 cents a share.
Johnson Outdoors Inc. (JOUT) reported its fiscal third-quarter profit declined nearly 6 percent because of a weak U.S. economy and a soft domestic boat market. Profit declined to $7.8 million, or 84 cents per share, from $8.3 million.
Scheduled Earnings Reports (Next Week)
Sony, Colgate Palmolive, Tyson Foods, BP Plc, Exxon Mobil, Martha Stewart Living Omnimedia, AirTran Holdings, BE Aerospace, Northrop Grumman, Waste Management, Pfizer, Starbucks, Brinks, International Paper
Stocks in the News
Fortune Brands Inc (FO) said revenue slipped 8.6% to $2.1 billion from $2.3 billion, citing continued weakness in the U.S housing market.
BMC Software (BMC) fiscal first-quarter earnings fell to $1.2 million or 1 cent a share.
Lehman Brothers’ (LEH) executives are reportedly considering the sale of all or part of Neuberger Berman, the brokerage's asset-management arm.
Republic Services (RSG) second-quarter net income fell to $62.3 million or 34 cents a share.
Chubb Corp (CB) second-quarter net income fell to $469 million or $1.27 a share.
ITT Corp (ITT) second-quarter profit totaled $221 million, or $1.20 a share. Analysts expected $1.11 a share.
Crocs Inc (CROX) slashed its earnings targets due to soft demand for its colorful rubbery sandals and other footwear.
The consumer sentiment index from the University of Michigan hit 61.2 in July, that’s up from an earlier reading of 56.6 -- compared with 56.4 in June. The June reading was the lowest since 1980 and the third-lowest reading in the 56-year history of the survey. Economists expected a July result of 56.
The Commerce Department said U.S. home sales fell 0.6% in June. The decline in new-home sales to a seasonally adjusted annual rate of 530,000 was well above the 501,000 pace expected by economists. Median sales prices have fallen 2.0% in the past year to $230,900.
As foreclosures continue to climb across the nation, 220,000 homes were lost to bank repossessions in the second quarter. That's nearly triple the number from the same period in 2007. Almost 740,000 foreclosure filings were recorded during quarter which is up 14% from the first quarter, and 121% from the same period last year.
This news was released as Congress works to pass a housing rescue bill that will make FHA-insured loans available to many at-risk borrowers. The measure, which is expected to be passed, would take effect until Oct. 1st.
An Exxon Mobil Corp. (XOM) subsidiary and BHP Billiton (BHP) announced plans to spend $1.25 billion to tap oil and gas reserves off southern Australia. The joint venture will build an offshore platform off The Australian state of Victoria and expects to extract about one trillion cubic feet of natural gas and 110 million barrels of oil and gas liquids.
Scheduled Economic Reports (Next Week)
Case-Schiller Home Prices, Consumer Confidence, ADP Employment Index, Gross Domestic Product, Employment Cost Index, Chicago Purchasing Managers Index, ISM Manufacturing, Construction Spending, Motor Vehicle Sales, Non-Farm Payrolls
In Earnings News
Honda Motor Co. (HMC) reported a record profit for its fiscal first quarter as sales growth in new markets equalized the damage from a stronger yen and higher material costs. The company earned 179.6 billion yen ($1.68 billion) in the quarter. Analysts forecast 131.3 billion yen ($1.2 billion) in quarterly profit.
Netflix (NFLX) says its second-quarter profit increased 4 percent, assisted by a 25 percent increase in subscriptions and the introduction of a device that allows customers to stream video directly to their TVs. The company says net income rose to $26.6 million, or 42 cents per share. Analysts predicted a profit of 40 cents per share.
Wynn Resorts Ltd. (WYNN) reported that its second-quarter earnings more than tripled compared to last year. Earnings for the quarter jumped to $272 million, or $2.42 per share. Analysts forecast earnings of 93 cents per share.
Arch Coal Inc. (ACI) reported its second-quarter profit tripled on soaring global prices and tighter coal supplies, easily surpassing Street estimates. The company reported net income of $113 million, or 78 cents per share. Analysts’ expected 64 cents a share.
Johnson Outdoors Inc. (JOUT) reported its fiscal third-quarter profit declined nearly 6 percent because of a weak U.S. economy and a soft domestic boat market. Profit declined to $7.8 million, or 84 cents per share, from $8.3 million.
Scheduled Earnings Reports (Next Week)
Sony, Colgate Palmolive, Tyson Foods, BP Plc, Exxon Mobil, Martha Stewart Living Omnimedia, AirTran Holdings, BE Aerospace, Northrop Grumman, Waste Management, Pfizer, Starbucks, Brinks, International Paper
Stocks in the News
Fortune Brands Inc (FO) said revenue slipped 8.6% to $2.1 billion from $2.3 billion, citing continued weakness in the U.S housing market.
BMC Software (BMC) fiscal first-quarter earnings fell to $1.2 million or 1 cent a share.
Lehman Brothers’ (LEH) executives are reportedly considering the sale of all or part of Neuberger Berman, the brokerage's asset-management arm.
Republic Services (RSG) second-quarter net income fell to $62.3 million or 34 cents a share.
Chubb Corp (CB) second-quarter net income fell to $469 million or $1.27 a share.
ITT Corp (ITT) second-quarter profit totaled $221 million, or $1.20 a share. Analysts expected $1.11 a share.
Crocs Inc (CROX) slashed its earnings targets due to soft demand for its colorful rubbery sandals and other footwear.
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