JDfn Daily Digest - August 7, 2008
The Labor Department reported that initial applications for unemployment insurance rose by a seasonally adjusted 7,000 to 455,000 for the week ending Aug. 2nd. The increase left claims at their highest level since late March 2002.
The European Central Bank and the Bank of England both left their benchmark interest rates unchanged as they ponder how best to steer their economies between the shoals of mounting inflation and slowing growth. European Central Bank President Jean- Claude Trichet says the bank remains focused on reducing inflation even as European economic growth slows.
The nation’s major retailers believe the outlook for the back-to-school shopping season appears grim, as July sales reports showed an increasing shift toward buying necessities at discounters and away from nonessentials like clothing.
There is a sign today that U.S. housing market may be strengthening. The National Association of Realtors reports that sales contracts on previously owned U.S. homes rose 5.3% in June from the previous month. The index, which is considered a leading indicator of existing home sales, was down 12.3% from the June 2007 level.
Hovnanian Enterprises Inc. (HOV) cut the number of unsold houses by more than 50 percent over the past two years after lowering prices and still had 1,500 on its books as of April. The National Association of Realtors said there are 3.9 million unsold existing single-family homes, which is the most since at least 1982.
Lockheed Martin Corp. (LMT), the nation's largest defense contractor, received a $38.1 million contract boost from the Navy to deliver 286 “Jammer” systems to disarm explosive devices and roadside bombs.
Scheduled U.S. Economic Reports (Friday)
Productivity (Q2), Unit Labor Costs (Q2), Wholesale Inventories (June)
In Earnings News
Wal-Mart (WMT) reported a three percent increase in sales at stores open at least a year in July which was slightly below Wall Street estimates. Analysts expected the company's same-store sales to increase 3.4 percent, while the company anticipated a gain in the range of two to four percent.
American International Group Inc. (AIG) lost $5.36 billion in the second quarter, or $2.06 per share. In the same period last year the company earned $1.64 per share. AIG's general insurance segment saw a 54.3 percent decline in operating income.
Nestle SA (NVS) reported earnings of 5.21 billion Swiss francs ($4.93 billion) during the first six months of the year, an increase of 298 million francs ($282 million) on the same period last year. The results beat analysts' expectations.
Toyota (TM) reported that its second quarter profit fell to 353.66 billion yen (US$3.23 billion) from nearly 492 billion the same period the previous year. Quarterly sales edged down 4.7 percent to 6.215 trillion yen (US$56.8 billion).
DirecTV (DTV) earned $455 million, or 40 cents per share, in the second quarter. Analysts expected earnings of 40 cents per share on $4.71 billion in revenue.
Sara Lee (SLE) posted a loss of $695 million, or a loss of 98 cents per share. Analysts expected earnings of 26 cents and sales of $3.48 billion. The food company also forecast adjusted fiscal 2009 profit below expectations.
Williams Cos. (WMB), which produces, processes and transports natural gas, reported a 1 percent increase in their second quarter profit. The company reported net income of $437 million, or 73 cents per share. Analysts expected earnings of 69 cents per share.
Scheduled Earnings Reports (Friday)
Landry’s Restaurant, Beazer Homes, Lion’s Gate Entertainment, Harrah’s Entertainment, U.S. Gold Corp
Stocks in the News
MF Global (MF) reported its fiscal first-quarter profit fell 80% from a year ago, to $14.4 million, or 12 cents a share.
Costco Wholesale (COST) reported July same-store sales that increased 10%.
Nationwide Financial Services (NFS) said its second-quarter net income fell to $85.4 million or 62 cents a share.
Limited Brands (LTD) said July sales at stores open at least one year fell 5%. Analysts expected same-store sales to fall 7.4%.
Barr Pharmaceuticals (BRL) said second-quarter earnings were $57 million, or 52 cents a share.
Progress Energy (PGN) reported second-quarter earnings were $205 million or 79 cents a share.
Aeropostale (ARO) reported that July sales at stores open at least one year rose 13%. Analysts expected the same-store sales to rise 8.2%.
Sunoco Inc (SUN) reported its second-quarter net income fell to $82 million or 70 cents a share.
The European Central Bank and the Bank of England both left their benchmark interest rates unchanged as they ponder how best to steer their economies between the shoals of mounting inflation and slowing growth. European Central Bank President Jean- Claude Trichet says the bank remains focused on reducing inflation even as European economic growth slows.
The nation’s major retailers believe the outlook for the back-to-school shopping season appears grim, as July sales reports showed an increasing shift toward buying necessities at discounters and away from nonessentials like clothing.
There is a sign today that U.S. housing market may be strengthening. The National Association of Realtors reports that sales contracts on previously owned U.S. homes rose 5.3% in June from the previous month. The index, which is considered a leading indicator of existing home sales, was down 12.3% from the June 2007 level.
Hovnanian Enterprises Inc. (HOV) cut the number of unsold houses by more than 50 percent over the past two years after lowering prices and still had 1,500 on its books as of April. The National Association of Realtors said there are 3.9 million unsold existing single-family homes, which is the most since at least 1982.
Lockheed Martin Corp. (LMT), the nation's largest defense contractor, received a $38.1 million contract boost from the Navy to deliver 286 “Jammer” systems to disarm explosive devices and roadside bombs.
Scheduled U.S. Economic Reports (Friday)
Productivity (Q2), Unit Labor Costs (Q2), Wholesale Inventories (June)
In Earnings News
Wal-Mart (WMT) reported a three percent increase in sales at stores open at least a year in July which was slightly below Wall Street estimates. Analysts expected the company's same-store sales to increase 3.4 percent, while the company anticipated a gain in the range of two to four percent.
American International Group Inc. (AIG) lost $5.36 billion in the second quarter, or $2.06 per share. In the same period last year the company earned $1.64 per share. AIG's general insurance segment saw a 54.3 percent decline in operating income.
Nestle SA (NVS) reported earnings of 5.21 billion Swiss francs ($4.93 billion) during the first six months of the year, an increase of 298 million francs ($282 million) on the same period last year. The results beat analysts' expectations.
Toyota (TM) reported that its second quarter profit fell to 353.66 billion yen (US$3.23 billion) from nearly 492 billion the same period the previous year. Quarterly sales edged down 4.7 percent to 6.215 trillion yen (US$56.8 billion).
DirecTV (DTV) earned $455 million, or 40 cents per share, in the second quarter. Analysts expected earnings of 40 cents per share on $4.71 billion in revenue.
Sara Lee (SLE) posted a loss of $695 million, or a loss of 98 cents per share. Analysts expected earnings of 26 cents and sales of $3.48 billion. The food company also forecast adjusted fiscal 2009 profit below expectations.
Williams Cos. (WMB), which produces, processes and transports natural gas, reported a 1 percent increase in their second quarter profit. The company reported net income of $437 million, or 73 cents per share. Analysts expected earnings of 69 cents per share.
Scheduled Earnings Reports (Friday)
Landry’s Restaurant, Beazer Homes, Lion’s Gate Entertainment, Harrah’s Entertainment, U.S. Gold Corp
Stocks in the News
MF Global (MF) reported its fiscal first-quarter profit fell 80% from a year ago, to $14.4 million, or 12 cents a share.
Costco Wholesale (COST) reported July same-store sales that increased 10%.
Nationwide Financial Services (NFS) said its second-quarter net income fell to $85.4 million or 62 cents a share.
Limited Brands (LTD) said July sales at stores open at least one year fell 5%. Analysts expected same-store sales to fall 7.4%.
Barr Pharmaceuticals (BRL) said second-quarter earnings were $57 million, or 52 cents a share.
Progress Energy (PGN) reported second-quarter earnings were $205 million or 79 cents a share.
Aeropostale (ARO) reported that July sales at stores open at least one year rose 13%. Analysts expected the same-store sales to rise 8.2%.
Sunoco Inc (SUN) reported its second-quarter net income fell to $82 million or 70 cents a share.
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