James Dicks Daily Digest - January 2, 2009
The U.S. dollar started 2009 a little higher, rising after a report showed manufacturing in Europe slowed. The euro fell 0.8% to $1.3897. The dollar index which tracks the currency against a basket of several counterparts, gained 0.4% to 81.64. The purchasing managers' index showed manufacturing activity in the euro zone fell for a seventh month, to 33.9 in December from 35.6 in November.
The ISM index, a key manufacturing gauge, stood at 32.4% in December, showing the sector's fifth consecutive monthly decline. Economists were expecting the ISM index to rise slightly from November's reading, to 36.3%. Orders, production, employment and inventories all contracted in December.
The Semiconductor Industry Association said worldwide sales of semiconductors fell 9.8% to $20.8 billion in November, compared to $23.1 billion in the year-earlier period.
GMAC will no longer have exclusive rights to provide low-interest loans to people who buy General Motors Corp. (GM) vehicles, and it will stop financing leases under a complex deal to get federal aid for the troubled lender. GMAC LLC disclosed the terms of the deal with the SEC. The lender said the federal government will get 5 million preferred shares of GMAC paying 8 percent interest in exchange for its $5 billion capital injection to help GMAC avoid bankruptcy.
Visteon Corp. (VC) will shift more than 2,000 workers to a four-day week and cut their pay by 20 percent as tight credit and collapsing sales cause huge industry losses. The moves will begin on Monday and affect all 2,000 workers at Visteon's headquarters and 50 at a testing center. The company has about 35,000 employees in 27 countries.
Dynegy Inc. (DYN) said it plans to dissolve a development joint venture with LS Power Associates LP, due to constrained credit markets and economic uncertainty. Dynegy will record an undisclosed loss in 2009 related to the transaction while LS Power will receive about $19 million in cash during the first quarter to reflect the relative value of assets exchanged.
Valeant Pharmaceuticals International (VRX) closed its $285 million acquisition of Dow Pharmaceutical Sciences. Dow Pharmaceutical develops drugs for skin diseases and employs 159 workers including those at its headquarters; other California locations; and at research centers in Germany.
Nationwide Mutual Insurance Co. completed its purchase of the shares of its publicly traded retirement savings company Nationwide Financial Services Inc. that it did not already own.
Scheduled U.S. Economic Reports (Next Week)
Construction Spending, Motor Vehicle Sales, ISM Services Index, Factory Orders, ADP Employment Index, Consumer Credit, Wholesale Inventories, Non-Farm Payrolls
In Earnings News
National Instruments Corp. (NATI) gave preliminary fourth-quarter sales and earnings results below the company's previous forecast and Wall Street expectations. The scientific and engineering software maker said it expects sales of $202 million, a decline of 1 percent from the same quarter of 2007. Wall Street analysts polled were expecting $212.2 million, on average.
Scheduled Earnings Reports (Next Week)
Comverse Technology, Emmis Communications, Franklin Covey, Rocky Mountain Chocolate Factory, Finish Line, Bed, bath & Beyond, Christopher & Banks, Monsanto, Immucor, Pricesmart, Helen of Troy, Schnitzer Steel
Stocks to Watch
Citigroup (C) traded higher after CEO Vikram Pandit said he and Chairman Win Bischoff will not take a 2008 bonus and will cut pay and severance packages for executives.
Starwood Hotels (HOT) traded higher after it signed a confidentially agreement with Sam Zell's investment group.
Abigail Adams national Bancorp (AANB) will be acquired for $10.9M in stock by Premier Financial Bancorp Inc.
Walter Industries (WLT) plans to buy back as much as $50M of stock.
Russia’s state-controlled Gazprom (GZPFY) shares rose 11%. It cut off natural-gas supplies to Ukraine amid a dispute over the cost of gas and on transit fees.
Microsoft (MSFT) has told users of its Zune 30-gigabyte music players that they may have trouble booting the hardware. It also said that a court in China had convicted 11 people of manufacturing and distributing counterfeit Microsoft products.
The ISM index, a key manufacturing gauge, stood at 32.4% in December, showing the sector's fifth consecutive monthly decline. Economists were expecting the ISM index to rise slightly from November's reading, to 36.3%. Orders, production, employment and inventories all contracted in December.
The Semiconductor Industry Association said worldwide sales of semiconductors fell 9.8% to $20.8 billion in November, compared to $23.1 billion in the year-earlier period.
GMAC will no longer have exclusive rights to provide low-interest loans to people who buy General Motors Corp. (GM) vehicles, and it will stop financing leases under a complex deal to get federal aid for the troubled lender. GMAC LLC disclosed the terms of the deal with the SEC. The lender said the federal government will get 5 million preferred shares of GMAC paying 8 percent interest in exchange for its $5 billion capital injection to help GMAC avoid bankruptcy.
Visteon Corp. (VC) will shift more than 2,000 workers to a four-day week and cut their pay by 20 percent as tight credit and collapsing sales cause huge industry losses. The moves will begin on Monday and affect all 2,000 workers at Visteon's headquarters and 50 at a testing center. The company has about 35,000 employees in 27 countries.
Dynegy Inc. (DYN) said it plans to dissolve a development joint venture with LS Power Associates LP, due to constrained credit markets and economic uncertainty. Dynegy will record an undisclosed loss in 2009 related to the transaction while LS Power will receive about $19 million in cash during the first quarter to reflect the relative value of assets exchanged.
Valeant Pharmaceuticals International (VRX) closed its $285 million acquisition of Dow Pharmaceutical Sciences. Dow Pharmaceutical develops drugs for skin diseases and employs 159 workers including those at its headquarters; other California locations; and at research centers in Germany.
Nationwide Mutual Insurance Co. completed its purchase of the shares of its publicly traded retirement savings company Nationwide Financial Services Inc. that it did not already own.
Scheduled U.S. Economic Reports (Next Week)
Construction Spending, Motor Vehicle Sales, ISM Services Index, Factory Orders, ADP Employment Index, Consumer Credit, Wholesale Inventories, Non-Farm Payrolls
In Earnings News
National Instruments Corp. (NATI) gave preliminary fourth-quarter sales and earnings results below the company's previous forecast and Wall Street expectations. The scientific and engineering software maker said it expects sales of $202 million, a decline of 1 percent from the same quarter of 2007. Wall Street analysts polled were expecting $212.2 million, on average.
Scheduled Earnings Reports (Next Week)
Comverse Technology, Emmis Communications, Franklin Covey, Rocky Mountain Chocolate Factory, Finish Line, Bed, bath & Beyond, Christopher & Banks, Monsanto, Immucor, Pricesmart, Helen of Troy, Schnitzer Steel
Stocks to Watch
Citigroup (C) traded higher after CEO Vikram Pandit said he and Chairman Win Bischoff will not take a 2008 bonus and will cut pay and severance packages for executives.
Starwood Hotels (HOT) traded higher after it signed a confidentially agreement with Sam Zell's investment group.
Abigail Adams national Bancorp (AANB) will be acquired for $10.9M in stock by Premier Financial Bancorp Inc.
Walter Industries (WLT) plans to buy back as much as $50M of stock.
Russia’s state-controlled Gazprom (GZPFY) shares rose 11%. It cut off natural-gas supplies to Ukraine amid a dispute over the cost of gas and on transit fees.
Microsoft (MSFT) has told users of its Zune 30-gigabyte music players that they may have trouble booting the hardware. It also said that a court in China had convicted 11 people of manufacturing and distributing counterfeit Microsoft products.
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