JDfn Daily Digest - July 29, 2008
Barack Obama will meet with Federal Reserve Chairman Ben Bernanke. The two are expected to discuss the current credit crisis and Obama's plans to enforce tougher oversight of financial institutions if he is elected president. Obama is also scheduled to speak to Treasury Secretary Henry Paulson by phone today.
U.S. chain store sales rose 1.2% in the first three weeks of July compared with the previous month. The index's rise was milder than the targeted 1.4% increase. The index also showed seasonally adjusted sales in the month-to-date rose 2.7% compared with July 2007, just short of the 2.9% targeted increase.
U.S. consumer confidence was up in July, while the level remained relatively low and job concerns persisted. The July consumer confidence index rose to 51.9 from a June reading that was revised to 51.0 from a prior estimate of 50.4.
The Case-Shiller home price index reported that home prices have dropped a record 15.8% in the past year in over 20 major U.S. cities. Home prices fell 1% in May compared with April. Prices in seven cities are down more than 20% in the past year.
Merrill Lynch & Co. (MER), in a move to repair its troubled balance sheet, said it plans to sell a big piece of its asset-backed securities and issue new stock in order to raise $8.5 billion of fresh capital. Merrill said it will issue more than 200 million new common shares as part of the deal and will reportedly write-down another $5.7 billion.
T. Boone Pickens has called the management of Yahoo (YHOO) “pathetic” and has decided to pull his remaining stake in the company at a loss. Pickens said he was disappointed that Yahoo did not accept the recent Microsoft (MSFT) $47 billion buyout offer.
British Airways PLC and Spain's Iberia SA announced they are in talks over a potential all-share combination. BA and Iberia said that each would retain its branding under the agreement. BA Chief Executive Willie Walsh said airline consolidation is long overdue as the aviation economic situations change.
XM Satellite Radio (XMSR) and Sirius Satellite Radio (SIRI) said they have completed their long-pending merger. The combined company plans to use the name Sirius XM Radio Inc. Its stock will continue to be traded on the Nasdaq under the ticker symbol SIRI.
Scheduled Economic Reports (Wednesday)
ADP Employment Report
In Earnings News
BP Plc (BP) posted a profit of $9.47 billion for the quarter, up from $7.38 billion in the same period last year. Revenue was up 49 percent to $110.98 billion as the price of oil rose around 35 percent over the period.
Valero Energy Corp. (VLO) reported its second-quarter profit fell 67 percent as refining margins for products like gasoline decreased. The company said net income for the quarter fell to $734 million or $1.37 a share.
Sony Corp. (SNE) said its second quarter profit fell to 34.98 billion yen ($326.9 million) -- about half that recorded a year ago. Competition in its core electronics sector also led to Sony's worse-than-expected quarterly performance. Analysts expected a 52 billion yen ($486 million) profit.
Colgate-Palmolive (CL) said its second-quarter profit rose 19 percent on strong sales worldwide, as price increases helped offset rising input costs. Colgate earned $493.8 million, or 92 cents a share, compared with $415.8 million, or 76 cents, a year ago.
Northrop Grumman Corp. (NOC) says its second-quarter profit rose 7.6 percent as sales jumped 10 percent. The company said it earned $495 million, or $1.42 per share, in the quarter. That's up from $460 million, or $1.37 per share, a year earlier.
Waste Management Inc. (WMI) said its second-quarter profit fell 6 percent from results that included tax benefits in the same quarter last year. Waste Management earned $318 million, or 64 cents a share, in the three months ended June 30th. That's down from $338 million, or 64 cents a share, a year ago.
Teva Pharmaceutical Industries Ltd. (TEVA) reported its second-quarter profit rose 4.6 percent on a steady increase worldwide in generic drug sales and its branded multiple sclerosis treatment. The company earned $539 million, or 65 cents per share, compared with profit of $515 million, or 63 cents per share.
Scheduled Earnings Reports (Wednesday)
Disney, Pfizer, Comcast, Starbucks, Visa, Hess Corp, Prudential Financial, Bayer AG, Owens Corning, Siemens
Stocks in the News
U.S. Steel (X) second-quarter net income more than doubled to $668 million, or $5.65 a share, from $302 million, or $2.54 a share, in the year-earlier period.
AirTran Holdings (AAI) reported a second-quarter loss of $13.5 million, or 12 cents a share.
Pilgrims Pride Corp (PPC) reported that its second-quarter loss was $53 million, or 75 cents a share.
Mothers Work Inc (MWRK) fiscal third-quarter profit jumped to $4.1 million or 68 cents a share.
Amgen (AMGN) second-quarter net income fell to $941 million or 87 cents a share.
McGraw-Hill Companies (MHP) second-quarter profit slipped 23% to $212.3 million, or 66 cents a share.
Manitowoc Company (MTW) second-quarter net income rose to $133.9 million, or $1.01 a share.
Plum Creek Timber (PCL) reported second-quarter profit of $31 million, or 18 cents a share.
U.S. chain store sales rose 1.2% in the first three weeks of July compared with the previous month. The index's rise was milder than the targeted 1.4% increase. The index also showed seasonally adjusted sales in the month-to-date rose 2.7% compared with July 2007, just short of the 2.9% targeted increase.
U.S. consumer confidence was up in July, while the level remained relatively low and job concerns persisted. The July consumer confidence index rose to 51.9 from a June reading that was revised to 51.0 from a prior estimate of 50.4.
The Case-Shiller home price index reported that home prices have dropped a record 15.8% in the past year in over 20 major U.S. cities. Home prices fell 1% in May compared with April. Prices in seven cities are down more than 20% in the past year.
Merrill Lynch & Co. (MER), in a move to repair its troubled balance sheet, said it plans to sell a big piece of its asset-backed securities and issue new stock in order to raise $8.5 billion of fresh capital. Merrill said it will issue more than 200 million new common shares as part of the deal and will reportedly write-down another $5.7 billion.
T. Boone Pickens has called the management of Yahoo (YHOO) “pathetic” and has decided to pull his remaining stake in the company at a loss. Pickens said he was disappointed that Yahoo did not accept the recent Microsoft (MSFT) $47 billion buyout offer.
British Airways PLC and Spain's Iberia SA announced they are in talks over a potential all-share combination. BA and Iberia said that each would retain its branding under the agreement. BA Chief Executive Willie Walsh said airline consolidation is long overdue as the aviation economic situations change.
XM Satellite Radio (XMSR) and Sirius Satellite Radio (SIRI) said they have completed their long-pending merger. The combined company plans to use the name Sirius XM Radio Inc. Its stock will continue to be traded on the Nasdaq under the ticker symbol SIRI.
Scheduled Economic Reports (Wednesday)
ADP Employment Report
In Earnings News
BP Plc (BP) posted a profit of $9.47 billion for the quarter, up from $7.38 billion in the same period last year. Revenue was up 49 percent to $110.98 billion as the price of oil rose around 35 percent over the period.
Valero Energy Corp. (VLO) reported its second-quarter profit fell 67 percent as refining margins for products like gasoline decreased. The company said net income for the quarter fell to $734 million or $1.37 a share.
Sony Corp. (SNE) said its second quarter profit fell to 34.98 billion yen ($326.9 million) -- about half that recorded a year ago. Competition in its core electronics sector also led to Sony's worse-than-expected quarterly performance. Analysts expected a 52 billion yen ($486 million) profit.
Colgate-Palmolive (CL) said its second-quarter profit rose 19 percent on strong sales worldwide, as price increases helped offset rising input costs. Colgate earned $493.8 million, or 92 cents a share, compared with $415.8 million, or 76 cents, a year ago.
Northrop Grumman Corp. (NOC) says its second-quarter profit rose 7.6 percent as sales jumped 10 percent. The company said it earned $495 million, or $1.42 per share, in the quarter. That's up from $460 million, or $1.37 per share, a year earlier.
Waste Management Inc. (WMI) said its second-quarter profit fell 6 percent from results that included tax benefits in the same quarter last year. Waste Management earned $318 million, or 64 cents a share, in the three months ended June 30th. That's down from $338 million, or 64 cents a share, a year ago.
Teva Pharmaceutical Industries Ltd. (TEVA) reported its second-quarter profit rose 4.6 percent on a steady increase worldwide in generic drug sales and its branded multiple sclerosis treatment. The company earned $539 million, or 65 cents per share, compared with profit of $515 million, or 63 cents per share.
Scheduled Earnings Reports (Wednesday)
Disney, Pfizer, Comcast, Starbucks, Visa, Hess Corp, Prudential Financial, Bayer AG, Owens Corning, Siemens
Stocks in the News
U.S. Steel (X) second-quarter net income more than doubled to $668 million, or $5.65 a share, from $302 million, or $2.54 a share, in the year-earlier period.
AirTran Holdings (AAI) reported a second-quarter loss of $13.5 million, or 12 cents a share.
Pilgrims Pride Corp (PPC) reported that its second-quarter loss was $53 million, or 75 cents a share.
Mothers Work Inc (MWRK) fiscal third-quarter profit jumped to $4.1 million or 68 cents a share.
Amgen (AMGN) second-quarter net income fell to $941 million or 87 cents a share.
McGraw-Hill Companies (MHP) second-quarter profit slipped 23% to $212.3 million, or 66 cents a share.
Manitowoc Company (MTW) second-quarter net income rose to $133.9 million, or $1.01 a share.
Plum Creek Timber (PCL) reported second-quarter profit of $31 million, or 18 cents a share.
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