James Dicks Daily Digest - December 30, 2008
Gulf Arab leaders approved a monetary union agreement that aims to create a central bank and single currency for the region that will help boost trade and strengthen monetary policy. The agreement must now be approved by the national governments of all six members of the Gulf Cooperation Council.
Russia devalued the ruble again and Kremlin leaders urged government unity to deal with the biggest economic challenge in a decade. Russia's central bank began a gradual depreciation of the ruble in November in response to slumping oil prices, a worsening economy and investors' flight from emerging markets.
The European Central Bank will begin the new year under pressure to keep cutting interest rates after retail sales fell for a seventh successive month and loans to households and companies grew at the slowest pace in four years.
The International Council of Shopping Centers and Goldman Sachs Group Inc. said sales at stores open at least a year fell 1.8 percent in the seven days through Dec. 27th. That’s the biggest year-over-year drop since February 2003. Holiday comparable-store sales may decline as much as 2 percent.
According to the Conference Board, consumer confidence hit a record low in December, as worries increased about current business and labor market conditions. The December consumer confidence index fell to 38 from a downwardly revised 44.7 in November. Economists expected a December reading of 45.8.
Business activity in the Chicago region remained weak in December. The Chicago Purchasing Manager’s Index moved higher to 34.1% in December from 33.8% in November. Readings below 50% indicate overall business contraction.
The Standard & Poor's/Case-Shiller 20-city housing index fell by a record 18 percent from October last year, the largest drop since its inception in 2000. The 10-city index tumbled 19.1 percent, its biggest decline in its 21-year history. Prices in the 20-city index have plummeted more than 23.4 percent from their peak in July 2006.
The Treasury Department said that it will provide $5 billion to GMAC Financial Services LLC, the ailing financing arm of General Motors Corp., from the $700 billion bank rescue program.
General Motors (GM) said that it will provide reduced-rate financing as low as 0% APR for up to 60 months on certain new cars and trucks. The auto maker said the offer is available to qualified buyers today through Jan. 5th.
Congressional Republicans say they will work with Democrats to craft a plan to stimulate the economy, but only if GOP ideas are considered for a bill that could cost as much as $1 trillion. Democratic aides are working over the holidays on a massive bill to shore up the economy yet again. House Speaker Nancy Pelosi and Senate Democrats have said they want Congress to consider the legislation at a special session next month.
Pilgrim's Pride Corp. (PPC) will appear in Texas federal court for continued bankruptcy hearings. The nation's largest chicken producer filed for Chapter 11 bankruptcy protection earlier this month, saying it was hit hard by volatile feed costs and hobbled by its high debt. The company had been unable to fulfill its financial obligations and had a big interest payment due the week it filed.
Chesapeake Corp. (CSKE) has filed for Chapter 11 bankruptcy protection and plans to sell itself to a group of investors for about $485 million. Chesapeake, which makes paper cartons and plastic containers for the health care, beverage and food markets, has been cutting jobs and realigning operations in an effort to foster growth and reduce costs.
Jakks Pacific Inc. (JAKK) said it closed on its $28.3 million acquisition of Halloween costume and decoration company Disguise Inc. The deal also includes $27.6 million for license transfer fees and liabilities.
Scheduled U.S. Economic Reports (Wednesday)
Initial Jobless Claims (Week of Dec 27th)
In Earnings News
Advanced Micro Devices Inc. (AMD) said it expects to record an expense of $70 million in its fourth quarter in connection with a restructuring that involved the elimination of 600 jobs.
ResCare Inc. (RSCR), which provides residential, training and support services to people with physical and mental disabilities, expects 2009 profit within Wall Street forecasts. The company said it expects profit between $1.52 and $1.58 per share. Analysts expect profit of $1.55 per share on revenue of $1.62 billion.
Piedmont Natural Gas Co. (PNY) said its fiscal full-year 2008 profit rose 5.4 percent due to an increase in customers, colder weather, top-line margin growth and cost cutting. The natural gas distributor reported a full-year profit of $110 million, or 1.49 per share, for the year ended Oct. 31. Analysts forecast a profit of $1.55 per share, on average.
Scheduled Earnings Reports (Wednesday)
No earnings reports are scheduled for Wednesday. On Monday, January 12th, Alcoa (AA) will begin the fourth quarter earnings season when they announce their quarterly numbers.
Stocks in the News
Rohm & Haas (ROH) traded higher after Dow Chemical (DOW) announced it may be able to use a $13 billion bridge loan to fund its acquisition of Rohm & Haas.
Honda Motor Company (HMC) said it sold 45,090 vehicles in China during November, up 8.7% from 41,466 in the same month last year.
Ford Motor Company (F) plans to offer two Lincoln models in 2009 that can park themselves. Ford will also show a hybrid version of the Ford Fusion sedan next month.
Delta Air Lines (DAL) sold $196M of stock to help pay for general expenses and employee withholding taxes on share awards related to its purchase of Northwest Airlines.
International Game Technology (IGT) announced that it has named Patrick Cavanaugh to the post of chief financial officer.
Russia devalued the ruble again and Kremlin leaders urged government unity to deal with the biggest economic challenge in a decade. Russia's central bank began a gradual depreciation of the ruble in November in response to slumping oil prices, a worsening economy and investors' flight from emerging markets.
The European Central Bank will begin the new year under pressure to keep cutting interest rates after retail sales fell for a seventh successive month and loans to households and companies grew at the slowest pace in four years.
The International Council of Shopping Centers and Goldman Sachs Group Inc. said sales at stores open at least a year fell 1.8 percent in the seven days through Dec. 27th. That’s the biggest year-over-year drop since February 2003. Holiday comparable-store sales may decline as much as 2 percent.
According to the Conference Board, consumer confidence hit a record low in December, as worries increased about current business and labor market conditions. The December consumer confidence index fell to 38 from a downwardly revised 44.7 in November. Economists expected a December reading of 45.8.
Business activity in the Chicago region remained weak in December. The Chicago Purchasing Manager’s Index moved higher to 34.1% in December from 33.8% in November. Readings below 50% indicate overall business contraction.
The Standard & Poor's/Case-Shiller 20-city housing index fell by a record 18 percent from October last year, the largest drop since its inception in 2000. The 10-city index tumbled 19.1 percent, its biggest decline in its 21-year history. Prices in the 20-city index have plummeted more than 23.4 percent from their peak in July 2006.
The Treasury Department said that it will provide $5 billion to GMAC Financial Services LLC, the ailing financing arm of General Motors Corp., from the $700 billion bank rescue program.
General Motors (GM) said that it will provide reduced-rate financing as low as 0% APR for up to 60 months on certain new cars and trucks. The auto maker said the offer is available to qualified buyers today through Jan. 5th.
Congressional Republicans say they will work with Democrats to craft a plan to stimulate the economy, but only if GOP ideas are considered for a bill that could cost as much as $1 trillion. Democratic aides are working over the holidays on a massive bill to shore up the economy yet again. House Speaker Nancy Pelosi and Senate Democrats have said they want Congress to consider the legislation at a special session next month.
Pilgrim's Pride Corp. (PPC) will appear in Texas federal court for continued bankruptcy hearings. The nation's largest chicken producer filed for Chapter 11 bankruptcy protection earlier this month, saying it was hit hard by volatile feed costs and hobbled by its high debt. The company had been unable to fulfill its financial obligations and had a big interest payment due the week it filed.
Chesapeake Corp. (CSKE) has filed for Chapter 11 bankruptcy protection and plans to sell itself to a group of investors for about $485 million. Chesapeake, which makes paper cartons and plastic containers for the health care, beverage and food markets, has been cutting jobs and realigning operations in an effort to foster growth and reduce costs.
Jakks Pacific Inc. (JAKK) said it closed on its $28.3 million acquisition of Halloween costume and decoration company Disguise Inc. The deal also includes $27.6 million for license transfer fees and liabilities.
Scheduled U.S. Economic Reports (Wednesday)
Initial Jobless Claims (Week of Dec 27th)
In Earnings News
Advanced Micro Devices Inc. (AMD) said it expects to record an expense of $70 million in its fourth quarter in connection with a restructuring that involved the elimination of 600 jobs.
ResCare Inc. (RSCR), which provides residential, training and support services to people with physical and mental disabilities, expects 2009 profit within Wall Street forecasts. The company said it expects profit between $1.52 and $1.58 per share. Analysts expect profit of $1.55 per share on revenue of $1.62 billion.
Piedmont Natural Gas Co. (PNY) said its fiscal full-year 2008 profit rose 5.4 percent due to an increase in customers, colder weather, top-line margin growth and cost cutting. The natural gas distributor reported a full-year profit of $110 million, or 1.49 per share, for the year ended Oct. 31. Analysts forecast a profit of $1.55 per share, on average.
Scheduled Earnings Reports (Wednesday)
No earnings reports are scheduled for Wednesday. On Monday, January 12th, Alcoa (AA) will begin the fourth quarter earnings season when they announce their quarterly numbers.
Stocks in the News
Rohm & Haas (ROH) traded higher after Dow Chemical (DOW) announced it may be able to use a $13 billion bridge loan to fund its acquisition of Rohm & Haas.
Honda Motor Company (HMC) said it sold 45,090 vehicles in China during November, up 8.7% from 41,466 in the same month last year.
Ford Motor Company (F) plans to offer two Lincoln models in 2009 that can park themselves. Ford will also show a hybrid version of the Ford Fusion sedan next month.
Delta Air Lines (DAL) sold $196M of stock to help pay for general expenses and employee withholding taxes on share awards related to its purchase of Northwest Airlines.
International Game Technology (IGT) announced that it has named Patrick Cavanaugh to the post of chief financial officer.
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