James Dicks Daily Digest - January 22, 2009
President Barack Obama's stimulus plan is moving through the House this week, with a second committee likely to approve part of the multibillion dollar package. Members of the House Ways and Means Committee are meting to debate the tax and other provisions of the plan, including a $500-per-worker tax credit that the president has long touted.
The Labor Department reported that initial jobless benefit claims rose to a seasonally adjusted 589,000 in the week ending Jan. 17th, from an upwardly revised figure of 527,000 the previous week. The latest tally was well above Wall Street economists' expectations of 540,000 new claims.
The Commerce Department reported that construction of new homes and apartments fell 15.5 percent to an annual rate of 550,000 units last month. That shattered the previous low set in November. It was a much weaker showing than the pace of 610,000 that economists were forecasting and ended 2008 on a dismal note.
The Mortgage Bankers Association said the volume of mortgage applications filed last week dropped a seasonally adjusted 9.8% compared with the week before, as interest rates on fixed-rate mortgages rose, reversing their recent trend. The average rate on 30-year fixed-rate mortgages was 5.24%, up from 4.89% the previous week.
U.S. home prices fell 1.8% in November, the largest monthly decline ever recorded by the Federal Housing Finance Agency. In the past year, home prices are down a record 8.7%, compared with a 7.5% drop through October.
Lockheed Martin (LMT) is optimistic it will receive a full-lot order of 20 F-22 Raptor fighter jets sometime in the first quarter. The F-22 has been criticized by some members of Congress as inappropriate given the challenges of contemporary warfare. However, there's been speculation Congress will back the program as it worries over increasing unemployment.
Citigroup Inc. (C) named former Time Warner Inc. Chief Executive Officer Richard Parsons to head its board of directors, replacing Chairman Win Bischoff after the U.S. bank posted a record $18.7 billion net loss last year. The appointment is effective Feb. 23rd.
Scheduled U.S. Economic Reports (Friday)
None Scheduled
In Earnings News
Microsoft Corp (MSFT) says profit slipped to $4.17 billion, or 47 cents per share, from year-ago earnings of $4.71 billion, or 50 cents per share. The results missed Wall Street's forecast for earnings of 49 cents per share. Microsoft said it will cut 5,000 jobs over the next 18 months.
Lockheed Martin (LMT) reported earnings of $823 million, or $2.05 per share for the quarter, compared with year-ago profit of $799 million, or $1.89 per share. Analysts were expecting $1.92 per share in quarterly earnings on $11.08 billion of revenue.
Southwest Airlines (LUV) lost $56 million, or 8 cents per share, in the fourth quarter, compared with a gain of $111 million, or 15 cents per share, a year earlier. Without the charges, Southwest would have earned $61 million, or 8 cents per share, which beat expectations of analysts who forecast a gain of 5 cents per share excluding special items.
Brinker International Inc. (EAT), which operates the Chili's Grill & Bar restaurant chain, recorded a loss in its fiscal second quarter due to the sale of its Macaroni Grill chain and other one-time charges. The company reported a loss of $21.8 million, or 21 cents per share.
SunTrust Banks (STI) posted a loss of $379.2 million, or $1.08 per share. Analysts, on average, forecast earnings of 7 cents per share.
United Health Group (UNH) reported net income of $726 million, or 60 cents per share. UnitedHealth's adjusted profit of 78 cents per share matched expectations of analysts.
Huntington Bancshares (HBAN) says it lost $417.3 million in its fourth quarter. Huntington took a $454.3 million pretax charge, or 81 cents per share.
Scheduled Earnings Reports (Friday)
General Electric, Harley Davidson, Xerox, Horizon Bancorp, Steak n Shake
Stocks in the News
Apple Inc. (AAPL) posted a 2 percent bump in earnings to beat Wall Street's expectations.
Nokia (NOK) reported its profits fell 69 percent in the fourth quarter as the world economic downturn slowed handset sales.
AmerisourceBergen Corp (ABC) profit in the first quarter ended Dec. 31 rose to $111.1 million, or 72 cents a share.
Walt Disney Co. (DIS) is offering buyout packages to about 600 executives at the company's domestic resorts and parks unit.
Huntsman (HUN) says it will cut 1,175 jobs by the end of 2009, representing more than 9 percent of its work force.
Baxter International (BAX) fourth-quarter profit rose 19% to $569 million, or 91 cents a share.
Williams-Sonoma (WSM) will trim about 1,400, or 18%, of its worldwide jobs to cut costs.
Tenet Healthcare (THC) expects to report fourth-quarter net income of around $5 million and an adjusted operating profit of around $197 million.
Fiat, an Italian auto maker, reported a 70 percent drop in fourth quarter profit on a slump in demand for its cars as the economic slowdown hit its key western European and South American markets.
The Labor Department reported that initial jobless benefit claims rose to a seasonally adjusted 589,000 in the week ending Jan. 17th, from an upwardly revised figure of 527,000 the previous week. The latest tally was well above Wall Street economists' expectations of 540,000 new claims.
The Commerce Department reported that construction of new homes and apartments fell 15.5 percent to an annual rate of 550,000 units last month. That shattered the previous low set in November. It was a much weaker showing than the pace of 610,000 that economists were forecasting and ended 2008 on a dismal note.
The Mortgage Bankers Association said the volume of mortgage applications filed last week dropped a seasonally adjusted 9.8% compared with the week before, as interest rates on fixed-rate mortgages rose, reversing their recent trend. The average rate on 30-year fixed-rate mortgages was 5.24%, up from 4.89% the previous week.
U.S. home prices fell 1.8% in November, the largest monthly decline ever recorded by the Federal Housing Finance Agency. In the past year, home prices are down a record 8.7%, compared with a 7.5% drop through October.
Lockheed Martin (LMT) is optimistic it will receive a full-lot order of 20 F-22 Raptor fighter jets sometime in the first quarter. The F-22 has been criticized by some members of Congress as inappropriate given the challenges of contemporary warfare. However, there's been speculation Congress will back the program as it worries over increasing unemployment.
Citigroup Inc. (C) named former Time Warner Inc. Chief Executive Officer Richard Parsons to head its board of directors, replacing Chairman Win Bischoff after the U.S. bank posted a record $18.7 billion net loss last year. The appointment is effective Feb. 23rd.
Scheduled U.S. Economic Reports (Friday)
None Scheduled
In Earnings News
Microsoft Corp (MSFT) says profit slipped to $4.17 billion, or 47 cents per share, from year-ago earnings of $4.71 billion, or 50 cents per share. The results missed Wall Street's forecast for earnings of 49 cents per share. Microsoft said it will cut 5,000 jobs over the next 18 months.
Lockheed Martin (LMT) reported earnings of $823 million, or $2.05 per share for the quarter, compared with year-ago profit of $799 million, or $1.89 per share. Analysts were expecting $1.92 per share in quarterly earnings on $11.08 billion of revenue.
Southwest Airlines (LUV) lost $56 million, or 8 cents per share, in the fourth quarter, compared with a gain of $111 million, or 15 cents per share, a year earlier. Without the charges, Southwest would have earned $61 million, or 8 cents per share, which beat expectations of analysts who forecast a gain of 5 cents per share excluding special items.
Brinker International Inc. (EAT), which operates the Chili's Grill & Bar restaurant chain, recorded a loss in its fiscal second quarter due to the sale of its Macaroni Grill chain and other one-time charges. The company reported a loss of $21.8 million, or 21 cents per share.
SunTrust Banks (STI) posted a loss of $379.2 million, or $1.08 per share. Analysts, on average, forecast earnings of 7 cents per share.
United Health Group (UNH) reported net income of $726 million, or 60 cents per share. UnitedHealth's adjusted profit of 78 cents per share matched expectations of analysts.
Huntington Bancshares (HBAN) says it lost $417.3 million in its fourth quarter. Huntington took a $454.3 million pretax charge, or 81 cents per share.
Scheduled Earnings Reports (Friday)
General Electric, Harley Davidson, Xerox, Horizon Bancorp, Steak n Shake
Stocks in the News
Apple Inc. (AAPL) posted a 2 percent bump in earnings to beat Wall Street's expectations.
Nokia (NOK) reported its profits fell 69 percent in the fourth quarter as the world economic downturn slowed handset sales.
AmerisourceBergen Corp (ABC) profit in the first quarter ended Dec. 31 rose to $111.1 million, or 72 cents a share.
Walt Disney Co. (DIS) is offering buyout packages to about 600 executives at the company's domestic resorts and parks unit.
Huntsman (HUN) says it will cut 1,175 jobs by the end of 2009, representing more than 9 percent of its work force.
Baxter International (BAX) fourth-quarter profit rose 19% to $569 million, or 91 cents a share.
Williams-Sonoma (WSM) will trim about 1,400, or 18%, of its worldwide jobs to cut costs.
Tenet Healthcare (THC) expects to report fourth-quarter net income of around $5 million and an adjusted operating profit of around $197 million.
Fiat, an Italian auto maker, reported a 70 percent drop in fourth quarter profit on a slump in demand for its cars as the economic slowdown hit its key western European and South American markets.
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