JDfn Daily Digest - July 30, 2008
The ADP employment index showed that U.S. private-sector employment rose by 9,000 in July. Adding in some 20,000 government workers typically hired in a given month, the index suggests U.S. non-farm payrolls rose by about 30,000 in July which the government will release Friday morning. Economists are expecting a loss of 70,000.
According to the Mortgage Bankers Association, mortgage application volume tumbled 14.1 percent during the week ending July 25th, hitting its lowest level of the year. Volume fell even though interest rates on fixed-rate mortgages retreated from sharp increases a week earlier.
President Bush signed a massive housing bill this morning intended to provide mortgage relief for nearly 400,000 homeowners. Bush signed the bill in the Oval Office without any fanfare, signing the measure he once threatened to veto.
In an effort to provide cash to unfreeze financial markets, the Federal Reserve announced several steps, including longer-term credit. The Fed said it will now offer 84-day credits in addition to 28-day loans. And the Treasury Department will auction $27 billion in notes and bonds next week in its quarterly refunding auctions.
Federal regulators extended through mid-August a temporary order banning a certain kind of short-selling of the stocks of mortgage finance companies Fannie Mae, Freddie Mac and 17 large investment banks. SEC Chairman Christopher Cox believes the order is helping prevent potential "distort and short" manipulation of stocks.
Citibank (China) Co. launched a Chinese currency debit card, extending its reach in the local market at a time of fast growth in such services. The launch follows authorization by China's central bank for Citibank to issue such cards to retail customers in China.
Office Depot Inc. (ODP) said it received an unsolicited proposal from its partner in its Mexican joint venture to buy its stake in the venture for $430 million. Office Depot reported that it has not yet begun discussions with the partner regarding the proposal.
Delta Air Lines Inc. (DAL) will double its charge for checking a second bag on a domestic flight as part of a new set of fee increases to help offset the high cost of fuel. Delta announced the changes will apply to customers who purchase a ticket on or after Thursday for travel on or after Aug. 5th.
Scheduled Economic Reports (Thursday)
Initial Jobless Claims (Week of July 26th), Gross Domestic Product (Q2), Employment Cost Index (Q2), Chicago PMI (July)
In Earnings News
EADS, the parent company of plane maker Airbus, reported its profit surged in the second quarter as cost savings and higher deliveries offset a big charge for delays to its groundbreaking A380 jumbo jet and further woes from the falling dollar.
Comcast Corp. (CMCSA) said its second-quarter profit rose 8 percent as cable TV rates rose and consumers ordered more digital and premium services. Comcast posted second-quarter net income of $632 million, or 21 cents per share. Analysts were expecting, on average, slightly higher profit of 23 cents per share.
Siemens AG (SI) said that its third-quarter profit fell 31 percent from the same period a year ago. The company, which makes a wide range of products including trains, light bulbs, medical equipment and power generation turbines, earned 1.42 billion euros ($2.2 billion) in the quarter.
Corning Inc (GLW) climbed to $3.2 billion or $2.01 a share, from $489 million, or 30 cents a share, a year earlier. Excluding a $2.43 billion tax-related gain and other items, profit was in line with Wall Street's 49-cent-per-share forecast.
Energizer Holdings (ENR) said third-quarter net income for the quarter rose to $66.7 million, or $1.13 a share. Excluding one-time charges, earnings in the latest period were $1.23 a share. Revenue rose to $1.07 billion from $800 million. Analysts expected earnings of $1.28 a share.
Scheduled Earnings Reports (Thursday)
Royal Dutch Shell, International Paper, Exxon Mobil, Brinks, Kellogg, MasterCard, Barrick Gold, Aetna, Goodyear Tire & Rubber, Eastman Kodak, Motorola
Stocks in the News
MetLife Inc (MET) reported that second-quarter net income fell to $915 million or $1.26 a share.
Imperial Sugar (IPSU) reported a fiscal third-quarter net loss from a year-earlier profit on 51% lower revenue.
Alliance Data Systems (ADS) added $1.3 billion to its stock-buyback plan.
Centex Corp’s (CTX) second-quarter loss widened to $150.1 million or $1.21 a share.
Hanesbrands Inc (HBI) second-quarter net income doubled to $57.3 million or 60 cents a share.
Lincoln National (LNC) second-quarter profit slipped to $125 million or 48 cents a share.
Ace Ltd’s (ACE) second quarter profit climbed 15%, to $746 million or $2.20 a share.
Electronic Arts (ERTS) reported its net loss narrowed to $95 million or 30 cents a share.
Fiserv (FISV) reported second-quarter net income fell to $99 million or 60 cents a share, from $108 million, or 64 cents a share, a year earlier.
DreamWorks Animation’s (DWA) second-quarter profit fell to $27.5 million or 30 cents a share.
According to the Mortgage Bankers Association, mortgage application volume tumbled 14.1 percent during the week ending July 25th, hitting its lowest level of the year. Volume fell even though interest rates on fixed-rate mortgages retreated from sharp increases a week earlier.
President Bush signed a massive housing bill this morning intended to provide mortgage relief for nearly 400,000 homeowners. Bush signed the bill in the Oval Office without any fanfare, signing the measure he once threatened to veto.
In an effort to provide cash to unfreeze financial markets, the Federal Reserve announced several steps, including longer-term credit. The Fed said it will now offer 84-day credits in addition to 28-day loans. And the Treasury Department will auction $27 billion in notes and bonds next week in its quarterly refunding auctions.
Federal regulators extended through mid-August a temporary order banning a certain kind of short-selling of the stocks of mortgage finance companies Fannie Mae, Freddie Mac and 17 large investment banks. SEC Chairman Christopher Cox believes the order is helping prevent potential "distort and short" manipulation of stocks.
Citibank (China) Co. launched a Chinese currency debit card, extending its reach in the local market at a time of fast growth in such services. The launch follows authorization by China's central bank for Citibank to issue such cards to retail customers in China.
Office Depot Inc. (ODP) said it received an unsolicited proposal from its partner in its Mexican joint venture to buy its stake in the venture for $430 million. Office Depot reported that it has not yet begun discussions with the partner regarding the proposal.
Delta Air Lines Inc. (DAL) will double its charge for checking a second bag on a domestic flight as part of a new set of fee increases to help offset the high cost of fuel. Delta announced the changes will apply to customers who purchase a ticket on or after Thursday for travel on or after Aug. 5th.
Scheduled Economic Reports (Thursday)
Initial Jobless Claims (Week of July 26th), Gross Domestic Product (Q2), Employment Cost Index (Q2), Chicago PMI (July)
In Earnings News
EADS, the parent company of plane maker Airbus, reported its profit surged in the second quarter as cost savings and higher deliveries offset a big charge for delays to its groundbreaking A380 jumbo jet and further woes from the falling dollar.
Comcast Corp. (CMCSA) said its second-quarter profit rose 8 percent as cable TV rates rose and consumers ordered more digital and premium services. Comcast posted second-quarter net income of $632 million, or 21 cents per share. Analysts were expecting, on average, slightly higher profit of 23 cents per share.
Siemens AG (SI) said that its third-quarter profit fell 31 percent from the same period a year ago. The company, which makes a wide range of products including trains, light bulbs, medical equipment and power generation turbines, earned 1.42 billion euros ($2.2 billion) in the quarter.
Corning Inc (GLW) climbed to $3.2 billion or $2.01 a share, from $489 million, or 30 cents a share, a year earlier. Excluding a $2.43 billion tax-related gain and other items, profit was in line with Wall Street's 49-cent-per-share forecast.
Energizer Holdings (ENR) said third-quarter net income for the quarter rose to $66.7 million, or $1.13 a share. Excluding one-time charges, earnings in the latest period were $1.23 a share. Revenue rose to $1.07 billion from $800 million. Analysts expected earnings of $1.28 a share.
Scheduled Earnings Reports (Thursday)
Royal Dutch Shell, International Paper, Exxon Mobil, Brinks, Kellogg, MasterCard, Barrick Gold, Aetna, Goodyear Tire & Rubber, Eastman Kodak, Motorola
Stocks in the News
MetLife Inc (MET) reported that second-quarter net income fell to $915 million or $1.26 a share.
Imperial Sugar (IPSU) reported a fiscal third-quarter net loss from a year-earlier profit on 51% lower revenue.
Alliance Data Systems (ADS) added $1.3 billion to its stock-buyback plan.
Centex Corp’s (CTX) second-quarter loss widened to $150.1 million or $1.21 a share.
Hanesbrands Inc (HBI) second-quarter net income doubled to $57.3 million or 60 cents a share.
Lincoln National (LNC) second-quarter profit slipped to $125 million or 48 cents a share.
Ace Ltd’s (ACE) second quarter profit climbed 15%, to $746 million or $2.20 a share.
Electronic Arts (ERTS) reported its net loss narrowed to $95 million or 30 cents a share.
Fiserv (FISV) reported second-quarter net income fell to $99 million or 60 cents a share, from $108 million, or 64 cents a share, a year earlier.
DreamWorks Animation’s (DWA) second-quarter profit fell to $27.5 million or 30 cents a share.
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