James Dicks Daily Digest - December 31, 2008
The Labor Department said initial filings for state jobless benefits fell to 492,000 for the week ended Dec. 27, a decline of 94,000 from the 26-week high of 586,000 claims a week earlier. Economists were expecting jobless claims to slip to 575,000. Over the past four weeks, continuing claims averaged 4.42 million, an increase of 103,750 from the previous week's revised average.
The Mortgage Bankers Association reported the volume of residential mortgage applications filed last week was essentially unchanged on a seasonally adjusted basis from the prior week, even as the interest rates charged on mortgages fell further. However, overall applications were up 155% on an unadjusted basis for the week ended Dec. 26th compared with the same week last year.
Freddie Mac (FRE) said its benchmark long-term mortgage rate average fell for the ninth consecutive week and to a new low since it started tracking the rate in 1971. The 30-year fixed-rate mortgage average fell to 5.1% with an average 0.7 point for the week ending Dec. 31st, down from last week when it averaged 5.14%
GMAC Financial Services LLC raised $21.2 billion in a debt-for-equity swap, but apparently is short of its capital-raising goal needed to qualify to become a bank holding company. The lending arm of General Motors Corp. (GM) says it raised $17.5 billion in the exchange offer with note holders, while its home-loan segment, Residential Capital, raised $3.7 billion.
Iraq, holder of the world's third-largest oil reserves, has opened nearly 90 percent of its reserves to international oil companies for development in two major postwar bidding rounds through 2008. Iraq plans to add 4 million to 4.5 million barrels a day to its current 2.4 million barrels per day within four to six years to help build its heavily damaged infrastructure and develop its economy.
Citigroup Inc. (C) completed the sale of its India-based business process outsourcing unit Citigroup Global Services Ltd. to Tata Consultancy Services Ltd., India's largest software services provider. Citigroup said it will receive $512 million in cash.
American International Group (AIG), the insurer bailed out by the U.S. government, is prepared to ask the Federal Reserve to relax the rules on how bidders pay for assets in its $60 billion disposals program. AIG wants to boost competition for the assets by allowing bidders to pay using a greater proportion of shares, or through installments.
UBS AG (UBS) sold its stake in Bank of China in a deal estimated to be worth around $900 million. The Swiss bank bought 3.4 billion "limited H-shares" in Bank of China for $500 million in 2005 -- equivalent to a stake of about 1.6 percent.
Scheduled U.S. Economic Reports (Friday)
ISM Manufacturing Index (Dec)
In Earnings News
Navistar International Corp. (NAV), which makes trucks, buses and engines, posted a wider fiscal fourth-quarter loss; citing charges related to its diesel engine business with Ford Motor Co. Navistar said its loss for the quarter more than tripled to $343 million, or $4.81 per share, from $103 million, or $1.46 per share, in the same quarter last year.
Actions Semiconductor Co. (ACTS), a Chinese semiconductor firm focused on chips for digital cameras and music players, cut $6 million from the upper range of its sales forecast for the December quarter, blaming the U.S. recession and currency fluctuations.
Virage Logic Corp. (VIRL) lowered its fiscal first-quarter guidance, and said it now expects to post a loss because of the global economic crisis. The company now expects sales of $11 million to $11.5 million, down from its earlier estimate of $15.5 million to $16 million.
Scheduled Earnings Reports (Friday)
No major earnings reports are scheduled for Thursday, New Year’s Day, or for Friday. On Monday, January 12th, Alcoa (AA) will begin the fourth quarter earnings season when they announce their quarterly numbers.
Stocks in the News
Fannie Mae (FNM), Freddie Mac (FRE) and Ginnie Mae will start having their backed mortgage securities bought in early January by the Federal Reserve.
Dell Inc (DELL) said two of its senior executives will be leaving the company. The computer maker said Mike Cannon, president of global operations, will retire effective Jan. 31st, and Mark Jarvis, chief marketing officer, will leave the company this fiscal quarter.
Weyerhaeuser Co. (WY) will stop actively looking for a buyer of its Westwood Shipping Line business, citing tight financial markets and weaker shipping markets.
King Pharmaceuticals (KG) said the FDA is continuing its review of the new drug application for Embeda extended release capsules into early 2009.
VeriFone Holdings (PAY) will file its annual report with the SEC late as it assesses charges.
Centene Corp (CNC) said it has received a termination notice from Amerigroup Corp (AGP) relating to the previously disclosed agreement to sell certain assets of University Health Plans Inc. in the State of New Jersey.
Aberdeen Asset Management (UK: ADN) announced that it has agreed to buy Credit Suisse’s (CS) traditional fund management business.
The Mortgage Bankers Association reported the volume of residential mortgage applications filed last week was essentially unchanged on a seasonally adjusted basis from the prior week, even as the interest rates charged on mortgages fell further. However, overall applications were up 155% on an unadjusted basis for the week ended Dec. 26th compared with the same week last year.
Freddie Mac (FRE) said its benchmark long-term mortgage rate average fell for the ninth consecutive week and to a new low since it started tracking the rate in 1971. The 30-year fixed-rate mortgage average fell to 5.1% with an average 0.7 point for the week ending Dec. 31st, down from last week when it averaged 5.14%
GMAC Financial Services LLC raised $21.2 billion in a debt-for-equity swap, but apparently is short of its capital-raising goal needed to qualify to become a bank holding company. The lending arm of General Motors Corp. (GM) says it raised $17.5 billion in the exchange offer with note holders, while its home-loan segment, Residential Capital, raised $3.7 billion.
Iraq, holder of the world's third-largest oil reserves, has opened nearly 90 percent of its reserves to international oil companies for development in two major postwar bidding rounds through 2008. Iraq plans to add 4 million to 4.5 million barrels a day to its current 2.4 million barrels per day within four to six years to help build its heavily damaged infrastructure and develop its economy.
Citigroup Inc. (C) completed the sale of its India-based business process outsourcing unit Citigroup Global Services Ltd. to Tata Consultancy Services Ltd., India's largest software services provider. Citigroup said it will receive $512 million in cash.
American International Group (AIG), the insurer bailed out by the U.S. government, is prepared to ask the Federal Reserve to relax the rules on how bidders pay for assets in its $60 billion disposals program. AIG wants to boost competition for the assets by allowing bidders to pay using a greater proportion of shares, or through installments.
UBS AG (UBS) sold its stake in Bank of China in a deal estimated to be worth around $900 million. The Swiss bank bought 3.4 billion "limited H-shares" in Bank of China for $500 million in 2005 -- equivalent to a stake of about 1.6 percent.
Scheduled U.S. Economic Reports (Friday)
ISM Manufacturing Index (Dec)
In Earnings News
Navistar International Corp. (NAV), which makes trucks, buses and engines, posted a wider fiscal fourth-quarter loss; citing charges related to its diesel engine business with Ford Motor Co. Navistar said its loss for the quarter more than tripled to $343 million, or $4.81 per share, from $103 million, or $1.46 per share, in the same quarter last year.
Actions Semiconductor Co. (ACTS), a Chinese semiconductor firm focused on chips for digital cameras and music players, cut $6 million from the upper range of its sales forecast for the December quarter, blaming the U.S. recession and currency fluctuations.
Virage Logic Corp. (VIRL) lowered its fiscal first-quarter guidance, and said it now expects to post a loss because of the global economic crisis. The company now expects sales of $11 million to $11.5 million, down from its earlier estimate of $15.5 million to $16 million.
Scheduled Earnings Reports (Friday)
No major earnings reports are scheduled for Thursday, New Year’s Day, or for Friday. On Monday, January 12th, Alcoa (AA) will begin the fourth quarter earnings season when they announce their quarterly numbers.
Stocks in the News
Fannie Mae (FNM), Freddie Mac (FRE) and Ginnie Mae will start having their backed mortgage securities bought in early January by the Federal Reserve.
Dell Inc (DELL) said two of its senior executives will be leaving the company. The computer maker said Mike Cannon, president of global operations, will retire effective Jan. 31st, and Mark Jarvis, chief marketing officer, will leave the company this fiscal quarter.
Weyerhaeuser Co. (WY) will stop actively looking for a buyer of its Westwood Shipping Line business, citing tight financial markets and weaker shipping markets.
King Pharmaceuticals (KG) said the FDA is continuing its review of the new drug application for Embeda extended release capsules into early 2009.
VeriFone Holdings (PAY) will file its annual report with the SEC late as it assesses charges.
Centene Corp (CNC) said it has received a termination notice from Amerigroup Corp (AGP) relating to the previously disclosed agreement to sell certain assets of University Health Plans Inc. in the State of New Jersey.
Aberdeen Asset Management (UK: ADN) announced that it has agreed to buy Credit Suisse’s (CS) traditional fund management business.
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