JDfn Daily Digest - August 5, 2008
The Federal Open Market Committee kept its benchmark federal funds rate unchanged at 2.0%. The decision was anticipated by traders and economists on Wall Street. In its statement, the Fed gave no sign that it plans to change policy in the foreseeable future. There was one dissent from Dallas Fed Richard Fisher, who wanted to hike rates.
Oil prices continue to fall, sinking as low as $118 a barrel on growing concerns that a U.S. economic slowdown tied to high energy costs are curbing consumer demand for gasoline and other petroleum products.
According to a survey released by the International Council of Shopping Centers, chain-store sales for the week ended August 2nd rose 2.9% from the year-earlier period, their biggest gain this year. On a week-over-week basis, sales were flat. Sales in July are expected to increase by between 2% and 3%.
The ISM non-manufacturing index rose to 49.5% in July from 48.2% in June. The new-orders index fell to 47.9% from 48.6%, while employment rose to 47.1% from 43.8%. The production index slipped to 49.6% from 49.9%. Nine of 18 industries were growing in July.
Delta Air Lines Inc. (DAL) said it will offer broadband wireless Internet access on its entire domestic mainline fleet by the middle of next year. The airline said Wi-Fi service will be offered for a fee to customers traveling throughout the continental U.S.
Sony Corp. (SNE) has agreed to buy the 50% stake in Sony BMG Music Entertainment owned by media firm Bertelsmann AG. The music company, to be called Sony Music Entertainment Inc. (SMEI), will become a wholly owned subsidiary of Sony Corporation of America. Sony and Bertelsmann AG originally created the Sony BMG joint venture in August 2004.
Starbucks Corp. (SBUX) said it will now offer its morning customers any iced grande beverage for $2 after 2 p.m. The price is a big cut from the normal price of most grande-sized iced drinks. To get the discount, customers must present a receipt from their morning Starbucks visit. The company said it is taking it nationwide to answer consumers' calls for more value at the chain.
Scheduled U.S. Economic Reports (Wednesday)
None scheduled
In Earnings News
Procter & Gamble (PG) says its fourth-quarter profit soared 33 percent, helped by tax benefits and a lower tax rate. P&G says profit rose to $3.02 billion, or 92 cents per share. Analysts expected 78 cents per share.
D.R. Horton Inc. (DHI), the nation's largest homebuilder, posted a narrower fiscal third-quarter loss as charges to write down the value of property declined. The company posted a loss of $339.3 million, or $1.26 per share, in the quarter. Analysts expected a loss of 70 cents per share.
Archer Daniels Midland Co. (ADM) said its fourth-quarter profit plunged by 61 percent, but revenues soared amid higher prices for commodities like wheat and corn. The food processor and ethanol producer said profit for the quarter ended June 30 fell to $372 million, or 58 cents per share. The results fell below Wall Street expectations for a profit of 67 cents per share.
Weyerhaeuser (WY) reported a loss of $96 million, or 45 cents a share in its second quarter, compared to a gain of $32 million, or 15 cents a share in the year-ago period. Analysts forecast a loss of 16 cents a share.
Tenet Healthcare (THC) says its loss narrowed in the quarter, due to better contract terms with managed care providers and growth in admissions. Tenet says it had a loss of $15 million, or 3 cents per share. Analysts expected a loss of 1 cent per share on revenue of $2.29 billion.
MGM Mirage (MGM) said second-quarter net income tumbled to $113.1 million or 40 cents a share. Analysts, on average, expected it to earn 43 cents a share.
Molson Coors Brewing (TAP) said its second-quarter profit totaled $80.9 million, or 43 cents a share. On a continuing operations basis, earnings were 50 cents a share, while analysts expected earnings of $1.16 a share.
Duke Energy (DUK) says it made $351 million, or 28 cents a share, for the quarter. Revenue increased to $3.23 billion in the quarter from $2.97 billion a year ago. Analysts expected profits of 25 cents a share on revenue of $3.1 billion.
Scheduled Earnings Reports (Wednesday)
Time Warner, Dean Foods, Avis Budget Group, El Paso, Federal Home Loan Mortgage Corp (Freddie Mac), HealthSouth, Mylan Labs, Polo Ralph Lauren
Stocks in the News
Cablevision Systems Corp (CVC) is exploring a spin-off of one or more businesses and other potential strategies to enhance value for shareholders.
3Com (COMS) said it is raising its forecast for fiscal first-quarter revenue to $335 million to $340 million.
Frontier Communications (FTR) said its second-quarter earnings increased to $55.8 million or 17 cents a share.
Marvel Entertainment Inc. (MVL) reported its profit rose 61 percent in the second quarter, helped by pre-sales of the movies "Iron Man" and "The Incredible Hulk.”
Leap Wireless International (LEAP) swung to a second-quarter loss of $26.1 million, or 38 cents a share.
Acadia Pharmaceuticals (ACAD) announced that it plans to cut about 50% of its workforce, bringing its headcount down to around 65 employees.
St. Joe Company (JOE) said its second-quarter loss totaled $20.8 million, or 23 cents a share.
Oil prices continue to fall, sinking as low as $118 a barrel on growing concerns that a U.S. economic slowdown tied to high energy costs are curbing consumer demand for gasoline and other petroleum products.
According to a survey released by the International Council of Shopping Centers, chain-store sales for the week ended August 2nd rose 2.9% from the year-earlier period, their biggest gain this year. On a week-over-week basis, sales were flat. Sales in July are expected to increase by between 2% and 3%.
The ISM non-manufacturing index rose to 49.5% in July from 48.2% in June. The new-orders index fell to 47.9% from 48.6%, while employment rose to 47.1% from 43.8%. The production index slipped to 49.6% from 49.9%. Nine of 18 industries were growing in July.
Delta Air Lines Inc. (DAL) said it will offer broadband wireless Internet access on its entire domestic mainline fleet by the middle of next year. The airline said Wi-Fi service will be offered for a fee to customers traveling throughout the continental U.S.
Sony Corp. (SNE) has agreed to buy the 50% stake in Sony BMG Music Entertainment owned by media firm Bertelsmann AG. The music company, to be called Sony Music Entertainment Inc. (SMEI), will become a wholly owned subsidiary of Sony Corporation of America. Sony and Bertelsmann AG originally created the Sony BMG joint venture in August 2004.
Starbucks Corp. (SBUX) said it will now offer its morning customers any iced grande beverage for $2 after 2 p.m. The price is a big cut from the normal price of most grande-sized iced drinks. To get the discount, customers must present a receipt from their morning Starbucks visit. The company said it is taking it nationwide to answer consumers' calls for more value at the chain.
Scheduled U.S. Economic Reports (Wednesday)
None scheduled
In Earnings News
Procter & Gamble (PG) says its fourth-quarter profit soared 33 percent, helped by tax benefits and a lower tax rate. P&G says profit rose to $3.02 billion, or 92 cents per share. Analysts expected 78 cents per share.
D.R. Horton Inc. (DHI), the nation's largest homebuilder, posted a narrower fiscal third-quarter loss as charges to write down the value of property declined. The company posted a loss of $339.3 million, or $1.26 per share, in the quarter. Analysts expected a loss of 70 cents per share.
Archer Daniels Midland Co. (ADM) said its fourth-quarter profit plunged by 61 percent, but revenues soared amid higher prices for commodities like wheat and corn. The food processor and ethanol producer said profit for the quarter ended June 30 fell to $372 million, or 58 cents per share. The results fell below Wall Street expectations for a profit of 67 cents per share.
Weyerhaeuser (WY) reported a loss of $96 million, or 45 cents a share in its second quarter, compared to a gain of $32 million, or 15 cents a share in the year-ago period. Analysts forecast a loss of 16 cents a share.
Tenet Healthcare (THC) says its loss narrowed in the quarter, due to better contract terms with managed care providers and growth in admissions. Tenet says it had a loss of $15 million, or 3 cents per share. Analysts expected a loss of 1 cent per share on revenue of $2.29 billion.
MGM Mirage (MGM) said second-quarter net income tumbled to $113.1 million or 40 cents a share. Analysts, on average, expected it to earn 43 cents a share.
Molson Coors Brewing (TAP) said its second-quarter profit totaled $80.9 million, or 43 cents a share. On a continuing operations basis, earnings were 50 cents a share, while analysts expected earnings of $1.16 a share.
Duke Energy (DUK) says it made $351 million, or 28 cents a share, for the quarter. Revenue increased to $3.23 billion in the quarter from $2.97 billion a year ago. Analysts expected profits of 25 cents a share on revenue of $3.1 billion.
Scheduled Earnings Reports (Wednesday)
Time Warner, Dean Foods, Avis Budget Group, El Paso, Federal Home Loan Mortgage Corp (Freddie Mac), HealthSouth, Mylan Labs, Polo Ralph Lauren
Stocks in the News
Cablevision Systems Corp (CVC) is exploring a spin-off of one or more businesses and other potential strategies to enhance value for shareholders.
3Com (COMS) said it is raising its forecast for fiscal first-quarter revenue to $335 million to $340 million.
Frontier Communications (FTR) said its second-quarter earnings increased to $55.8 million or 17 cents a share.
Marvel Entertainment Inc. (MVL) reported its profit rose 61 percent in the second quarter, helped by pre-sales of the movies "Iron Man" and "The Incredible Hulk.”
Leap Wireless International (LEAP) swung to a second-quarter loss of $26.1 million, or 38 cents a share.
Acadia Pharmaceuticals (ACAD) announced that it plans to cut about 50% of its workforce, bringing its headcount down to around 65 employees.
St. Joe Company (JOE) said its second-quarter loss totaled $20.8 million, or 23 cents a share.
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