James Dicks Daily Digest - January 21, 2009
President Obama is hoping to win quick approval of his choice of Timothy Geithner to be Treasury secretary, but first Geithner has to explain how he missed paying $34,000 in payroll taxes earlier in the decade. Obama's team has signaled that it plans to greatly revise that program with the aim of getting more help to homeowners threatened with foreclosures.
The National Association of Home Builders said the home builders' index fell to a record low 8 in January from 9 in December. At its current level, the index shows that approximately one of every twelve builders believes the market is good. Two of the three components in the home builders' index rose in January: The index measuring expected sales rose from a record-low 16 to 17, and the index measuring buyers' traffic improved to 8 from a record-low 7. The index for current sales fell to a record-low 6 from 8.
The target date for General Motors Corp. (GM) to get its second installment of government loans passed last week, but a top company executive says he expects the money to arrive in the next several days. GM's president and chief operating officer, said without the second installment of $5.4 billion, the company would run out of cash long before March 31st. Meantime, General Motors said its fourth-quarter unit sales fell 26% to 1.7 million.
Best Buy Co. (BBY) said it named President and Chief Operating Officer Brian J. Dunn as the consumer electronics chain's new chief executive effective June 24th. The management change comes amid a troubled time for the nation's largest electronics chain, which has been bruised by the economic recession.
U.S. regulators are examining Apple Inc.’s (AAPL) disclosures about Steve Jobs’ health problems to ensure investors weren’t misled. The SEC’s review doesn’t mean investigators have seen evidence of wrongdoing. Investors have been pressing for information on Jobs’ health since June, when he appeared noticeably thinner at an Apple event.
BHP Billiton (BHP) announced plans to cut 6,000 jobs, or about 6 percent of its global work force, as it rushes to cope with plummeting demand because of the global financial crisis. The company estimated the job cuts will result in a one-off total cost of about $500 million.
Scheduled U.S. Economic Reports (Thursday)
Housing Starts (Dec), FHFA Home Prices (Nov), Initial Jobless Claims (week of Jan 17th)
In Earnings News
International Business Machines (IBM) posted a 12 per cent growth in income from operations at $4.4 billion for the fourth quarter in 2008. The company had a four billion dollar income from operations in the December quarter. However, the total revenue declined six percent to $27 billion in the last quarter last year as against $28.9 billion in the year-ago period.
United Airlines parent UAL Corp. (UAUA) said it lost $1.3 billion in the fourth quarter. UAL said it lost $9.91 per share, compared with a loss of $53 million, or 47 cents per share, during the same period last year. Analysts expected UAL to lose $4.42 per share.
AMR Corp (AMR) reported a $340 million in the fourth quarter, or $1.22 a share. In the same period last year AMR lost $69 million, or 28 cents a share. Analysts estimated, on average, a loss per share of 88 cents and revenue of $5.60 billion.
US Bancorp (USB) reported net income applicable to common shareholders of $260 million, or 15 cents per share, down from $927 million, or 53 cents per share, a year earlier. Analysts, on average, were expecting earnings of 22 cents per share.
United Technologies Corp. (UTX) said its fourth quarter profit rose 8 percent. The company earned $1.15 billion, or $1.23 per share, in the quarter. Analysts expected earnings per share of $1.22 for the quarter.
Blackrock Inc (BLK) posted a bigger-than-expected 84 percent drop in fourth-quarter profit. The biggest publicly traded U.S. asset manager said net income for the quarter fell to $53 million or 40 cents a share. Analysts expected 99 cents a share.
Abbott Laboratories (ABT) said its profit grew 28 percent in the fourth quarter. The company said it earned $1.54 billion, or 98 cents per share. Analysts expected $1.06 per share on $7.99 billion in revenue.
LM Ericsson (ERIC) reported profits dropped 31 percent in the fourth quarter, citing restructuring charges and weaker handset sales, and said it would slash 5,000 jobs. Net profit in the quarter fell to 3.9 billion kronor ($465 million) from 5.6 billion a year earlier.
Scheduled Earnings Reports (Thursday)
Microsoft, Google, Lockheed Martin, SunTrust Bank, Fifth Third Bancorp, Southwest Airlines, Advanced Micro Devices, Brinker International
Stocks in the News
Ford Motor Company (F) has been upgraded by Deutsche Bank to hold from sell.
Citigroup (C) declared a quarterly dividend of a penny on the company's common stock.
Progressive Corp (PGR) said fourth-quarter net income fell 33% to $159.3 million, or 24 cents a share, from $236.1 million, or 34 cents a share in the year-ago period.
Analog Devices Inc (ADI) revised its revenue outlook for first quarter, and now expects sales to fall 25% to 30% from the fourth quarter.
Bank of New York Mellon Corp (BK) said fourth-quarter net income came in at $61 million, down 88% from a year earlier when the custodial bank and asset management company made $520 million.
CC Media Holdings (CCMO), the parent of Clear Channel Communications and Clear Channel Outdoor Holdings, is cutting 1,850 jobs, or 9% of its workforce.
Whirlpool’s (WHR) corporate rating was cut by Standard and Poor’s.
Northern Trust (NTRS) reported a 43 percent rise in fourth-quarter operating earnings Wednesday and beat analysts’ expectations.
The National Association of Home Builders said the home builders' index fell to a record low 8 in January from 9 in December. At its current level, the index shows that approximately one of every twelve builders believes the market is good. Two of the three components in the home builders' index rose in January: The index measuring expected sales rose from a record-low 16 to 17, and the index measuring buyers' traffic improved to 8 from a record-low 7. The index for current sales fell to a record-low 6 from 8.
The target date for General Motors Corp. (GM) to get its second installment of government loans passed last week, but a top company executive says he expects the money to arrive in the next several days. GM's president and chief operating officer, said without the second installment of $5.4 billion, the company would run out of cash long before March 31st. Meantime, General Motors said its fourth-quarter unit sales fell 26% to 1.7 million.
Best Buy Co. (BBY) said it named President and Chief Operating Officer Brian J. Dunn as the consumer electronics chain's new chief executive effective June 24th. The management change comes amid a troubled time for the nation's largest electronics chain, which has been bruised by the economic recession.
U.S. regulators are examining Apple Inc.’s (AAPL) disclosures about Steve Jobs’ health problems to ensure investors weren’t misled. The SEC’s review doesn’t mean investigators have seen evidence of wrongdoing. Investors have been pressing for information on Jobs’ health since June, when he appeared noticeably thinner at an Apple event.
BHP Billiton (BHP) announced plans to cut 6,000 jobs, or about 6 percent of its global work force, as it rushes to cope with plummeting demand because of the global financial crisis. The company estimated the job cuts will result in a one-off total cost of about $500 million.
Scheduled U.S. Economic Reports (Thursday)
Housing Starts (Dec), FHFA Home Prices (Nov), Initial Jobless Claims (week of Jan 17th)
In Earnings News
International Business Machines (IBM) posted a 12 per cent growth in income from operations at $4.4 billion for the fourth quarter in 2008. The company had a four billion dollar income from operations in the December quarter. However, the total revenue declined six percent to $27 billion in the last quarter last year as against $28.9 billion in the year-ago period.
United Airlines parent UAL Corp. (UAUA) said it lost $1.3 billion in the fourth quarter. UAL said it lost $9.91 per share, compared with a loss of $53 million, or 47 cents per share, during the same period last year. Analysts expected UAL to lose $4.42 per share.
AMR Corp (AMR) reported a $340 million in the fourth quarter, or $1.22 a share. In the same period last year AMR lost $69 million, or 28 cents a share. Analysts estimated, on average, a loss per share of 88 cents and revenue of $5.60 billion.
US Bancorp (USB) reported net income applicable to common shareholders of $260 million, or 15 cents per share, down from $927 million, or 53 cents per share, a year earlier. Analysts, on average, were expecting earnings of 22 cents per share.
United Technologies Corp. (UTX) said its fourth quarter profit rose 8 percent. The company earned $1.15 billion, or $1.23 per share, in the quarter. Analysts expected earnings per share of $1.22 for the quarter.
Blackrock Inc (BLK) posted a bigger-than-expected 84 percent drop in fourth-quarter profit. The biggest publicly traded U.S. asset manager said net income for the quarter fell to $53 million or 40 cents a share. Analysts expected 99 cents a share.
Abbott Laboratories (ABT) said its profit grew 28 percent in the fourth quarter. The company said it earned $1.54 billion, or 98 cents per share. Analysts expected $1.06 per share on $7.99 billion in revenue.
LM Ericsson (ERIC) reported profits dropped 31 percent in the fourth quarter, citing restructuring charges and weaker handset sales, and said it would slash 5,000 jobs. Net profit in the quarter fell to 3.9 billion kronor ($465 million) from 5.6 billion a year earlier.
Scheduled Earnings Reports (Thursday)
Microsoft, Google, Lockheed Martin, SunTrust Bank, Fifth Third Bancorp, Southwest Airlines, Advanced Micro Devices, Brinker International
Stocks in the News
Ford Motor Company (F) has been upgraded by Deutsche Bank to hold from sell.
Citigroup (C) declared a quarterly dividend of a penny on the company's common stock.
Progressive Corp (PGR) said fourth-quarter net income fell 33% to $159.3 million, or 24 cents a share, from $236.1 million, or 34 cents a share in the year-ago period.
Analog Devices Inc (ADI) revised its revenue outlook for first quarter, and now expects sales to fall 25% to 30% from the fourth quarter.
Bank of New York Mellon Corp (BK) said fourth-quarter net income came in at $61 million, down 88% from a year earlier when the custodial bank and asset management company made $520 million.
CC Media Holdings (CCMO), the parent of Clear Channel Communications and Clear Channel Outdoor Holdings, is cutting 1,850 jobs, or 9% of its workforce.
Whirlpool’s (WHR) corporate rating was cut by Standard and Poor’s.
Northern Trust (NTRS) reported a 43 percent rise in fourth-quarter operating earnings Wednesday and beat analysts’ expectations.
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