James Dicks Daily Digest - February 10, 2009
Senators approved an $800 billion-plus stimulus bill, handing President Barack Obama a legislative victory on his chief economic priority. The bill is a mixture of tax cuts, targeted spending on infrastructure projects and money to cash-strapped states. The measure must now be reconciled with a House version before being sent to Obama for signature.
Treasury Secretary Timothy Geithner said the new administration will wage an aggressive two-front battle against the worst financial crisis in seven decades, while the Federal Reserve is expanding a key lending program to up to $1 trillion.
Bank of America Corp. (BAC) chief executive Ken Lewis is telling employees he is focused on moving his business forward, despite a depressed stock price and rumors of nationalization. In a memo this week, Lewis tried to convince employees his management team can lead the bank out of its current crisis.
The Commerce Department said that wholesale inventories plunged by 1.4 percent, nearly double analysts' expectations of 0.8 percent. It also was the fourth straight monthly decline. The inventories-to-sales ratio rose to 1.27 in December, up from 1.24 in the previous month.
General Motors Corp. (GM) said it will cut 10,000 salaried jobs, citing the need to restructure itself with a government deadline looming and amid some of the worst sales in the auto industry's history.
China's monthly vehicle sales surpassed those in the United States for the first time in January, moving this country closer to becoming the world's biggest auto market. With its growing middle class and vast potential as a consumer market, China is vital for General Motors, Volkswagen and Toyota as they count on demand here to offset weakness in the U.S. and elsewhere.
Intel Corp. (INTC) plans to spend $7 billion upgrading its U.S. factories over the next two years, a sign that the recession hasn't extinguished chip makers' lust for cutting-edge equipment.
Teva Pharmaceutical Industries Ltd. (TEVA) has received federal approval to market the first generic version of a GlaxoSmithKline (GSK) drug for migraine headaches. Teva said the Food and Drug Administration cleared the company's version of Imitrex tablets.
Scheduled U.S. Economic Reports (Wednesday)
Trade Balance (Dec), Federal Budget (Jan)
In Earnings News
Molson Coors Brewing (TAP) and SABMiller said fourth-quarter profit for their joint venture MillerCoors declined 40 percent mainly due to hefty impairment charges related to its Sparks brand and costs to integrate the two companies' beer brands in the U.S.
Fourth-quarter earnings fell 49 percent at Qwest Communications International Inc. (Q) from a year ago, mainly due to tax effects. The company earned $185 million, or 11 cents per share, in the October-December period, down from $366 million, or 20 cents per share, a year ago. Analysts expected 10 cents a share.
UBS AG (UBS) said it made a bigger than expected loss of 8.1 billion Swiss francs ($7.57 billion) in the fourth quarter and would cut some 2,700 jobs to refocus on its home market. The loss was bigger than analyst estimates, which foresaw a 6.2 billion francs ($5.79 billion) shortfall.
Camden Property Trust (CPT) said its fourth-quarter results tumbled 82 percent. Camden said late Monday its funds from operations, or FFO, fell to $10.1 million, or 17 cents per share. Analysts expected 1 cent per share.
Gaylord Entertainment Co. (GET), which runs a network of meetings-focused resorts and country music's Grand Ole Opry, said its fiscal fourth-quarter profit more than doubled. The company said net income rose to $8.4 million, or 20 cents per share. Analysts expected 12 cents a share.
The DirecTV Group Inc. (DTV), the nation's largest satellite TV provider, reported a 5 percent decline in net income for the fourth quarter. DirecTV earned $332 million, or 32 cents per share – a penny short of analysts’ expectations.
Scheduled Earnings Reports (Wednesday)
Level 3 Communications, Coca Cola Enterprises, Las Vegas Sands, Dean Foods, Ingersoll-Rand, Credit Suisse, Jones Apparel, PF Changs China Bistro
Stocks in the News
Centene Corp (CNC) said fourth-quarter net profit jumped to $21.4 million or 49 cents a share.
Boeing Co. (BA) restated its 2008 quarter profit to reflect a wider loss for the quarter and a narrower profit for the full year.
Lionsgate Entertainment Corp (LGF) reported it swung to a net loss of $93.4 million, or 81 cents a share.
Expeditors International of Washington Inc (EXPD) fourth-quarter earnings increased to $77.7 million or 36 cents a share.
DuPont (DD) is adopting cash-generating actions and reducing costs in response to the challenging economic conditions.
Principal Financial (PFG) fourth-quarter net income came in at less than $1 million, down 98% from a year earlier when the retirement savings specialist made $42.4 million.
Treasury Secretary Timothy Geithner said the new administration will wage an aggressive two-front battle against the worst financial crisis in seven decades, while the Federal Reserve is expanding a key lending program to up to $1 trillion.
Bank of America Corp. (BAC) chief executive Ken Lewis is telling employees he is focused on moving his business forward, despite a depressed stock price and rumors of nationalization. In a memo this week, Lewis tried to convince employees his management team can lead the bank out of its current crisis.
The Commerce Department said that wholesale inventories plunged by 1.4 percent, nearly double analysts' expectations of 0.8 percent. It also was the fourth straight monthly decline. The inventories-to-sales ratio rose to 1.27 in December, up from 1.24 in the previous month.
General Motors Corp. (GM) said it will cut 10,000 salaried jobs, citing the need to restructure itself with a government deadline looming and amid some of the worst sales in the auto industry's history.
China's monthly vehicle sales surpassed those in the United States for the first time in January, moving this country closer to becoming the world's biggest auto market. With its growing middle class and vast potential as a consumer market, China is vital for General Motors, Volkswagen and Toyota as they count on demand here to offset weakness in the U.S. and elsewhere.
Intel Corp. (INTC) plans to spend $7 billion upgrading its U.S. factories over the next two years, a sign that the recession hasn't extinguished chip makers' lust for cutting-edge equipment.
Teva Pharmaceutical Industries Ltd. (TEVA) has received federal approval to market the first generic version of a GlaxoSmithKline (GSK) drug for migraine headaches. Teva said the Food and Drug Administration cleared the company's version of Imitrex tablets.
Scheduled U.S. Economic Reports (Wednesday)
Trade Balance (Dec), Federal Budget (Jan)
In Earnings News
Molson Coors Brewing (TAP) and SABMiller said fourth-quarter profit for their joint venture MillerCoors declined 40 percent mainly due to hefty impairment charges related to its Sparks brand and costs to integrate the two companies' beer brands in the U.S.
Fourth-quarter earnings fell 49 percent at Qwest Communications International Inc. (Q) from a year ago, mainly due to tax effects. The company earned $185 million, or 11 cents per share, in the October-December period, down from $366 million, or 20 cents per share, a year ago. Analysts expected 10 cents a share.
UBS AG (UBS) said it made a bigger than expected loss of 8.1 billion Swiss francs ($7.57 billion) in the fourth quarter and would cut some 2,700 jobs to refocus on its home market. The loss was bigger than analyst estimates, which foresaw a 6.2 billion francs ($5.79 billion) shortfall.
Camden Property Trust (CPT) said its fourth-quarter results tumbled 82 percent. Camden said late Monday its funds from operations, or FFO, fell to $10.1 million, or 17 cents per share. Analysts expected 1 cent per share.
Gaylord Entertainment Co. (GET), which runs a network of meetings-focused resorts and country music's Grand Ole Opry, said its fiscal fourth-quarter profit more than doubled. The company said net income rose to $8.4 million, or 20 cents per share. Analysts expected 12 cents a share.
The DirecTV Group Inc. (DTV), the nation's largest satellite TV provider, reported a 5 percent decline in net income for the fourth quarter. DirecTV earned $332 million, or 32 cents per share – a penny short of analysts’ expectations.
Scheduled Earnings Reports (Wednesday)
Level 3 Communications, Coca Cola Enterprises, Las Vegas Sands, Dean Foods, Ingersoll-Rand, Credit Suisse, Jones Apparel, PF Changs China Bistro
Stocks in the News
Centene Corp (CNC) said fourth-quarter net profit jumped to $21.4 million or 49 cents a share.
Boeing Co. (BA) restated its 2008 quarter profit to reflect a wider loss for the quarter and a narrower profit for the full year.
Lionsgate Entertainment Corp (LGF) reported it swung to a net loss of $93.4 million, or 81 cents a share.
Expeditors International of Washington Inc (EXPD) fourth-quarter earnings increased to $77.7 million or 36 cents a share.
DuPont (DD) is adopting cash-generating actions and reducing costs in response to the challenging economic conditions.
Principal Financial (PFG) fourth-quarter net income came in at less than $1 million, down 98% from a year earlier when the retirement savings specialist made $42.4 million.
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