James Dicks Daily Digest - February 13, 2009
The stock market will be closed on Monday, February 16, 2009, in observance of President’s Day.
The House of Representatives approved a sprawling, $787 billion stimulus package backed by President Obama, handing the new president a key victory on his top economic priority that he says will create 3.5 million jobs and help lift the economy from recession. The huge package contains billions of dollars in infrastructure spending and assistance to states and the unemployed, and a $400 tax cut for individuals that Obama promoted during his run for the White House.
JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) are expanding their efforts to halt home foreclosures while the Obama administration develops its plans to help the U.S. housing market. JPMorgan CEO Jamie Dimon said the company plans to stop new foreclosures for owner-occupied home loans through March 6th.
Treasury Secretary Geithner will try to sell the G-7 on his plan to set the U.S. and global economy back on track. Geithner and Fed Chairman Bernanke will meet in Rome with counterparts from the other Group of Seven. Geithner is expected to give the G-7 a more detailed outline of the Obama administration's approach, an effort to win an endorsement abroad for a plan that met with a skeptical reaction from markets and lawmakers at home.
According to the University of Michigan, consumer sentiment index fell in early February to 56.2 from 61.2 in January. Analysts were looking for a February reading of 61. With sentiment remaining near historically low levels, it's clear that the widespread economic weakness is weighing down consumers even as Washington works on a massive stimulus plan to create jobs and enhance the national benefit safety net.
OPEC said that world oil demand will contract more sharply than expected this year due to the economic crisis, an outlook that may bolster the case for further supply cuts. The Organization of the Petroleum Exporting Countries said global demand will fall by 580,000 barrels per day (bpd) in 2009 to average 85.13 million bpd. Its previous forecast was for demand to contract by 180,000 bpd. Oil use is falling this year and in 2008, the first drop in more than 20 years.
The Federal Open Market Committee announced that it was expanding all of its meetings this year to two days. In a statement, the FOMC said it wanted "additional time for discussion." All FOMC policy statements will be released on Wednesdays. The next FOMC meeting is scheduled for March 17th and 18th.
Bank of America Corp. (BAC) Chief Financial Officer Joe Price assured employees the company has enough cash to finance operations for more than two years. Bank of America serves more than half of all U.S. households and millions of businesses.
Research In Motion (RIMM) was downgraded to an underperform, or sell, rating by Credit Suisse. In a note to clients, an analyst said he expects overall Smartphone sales to decline in the slowing economy, and that RIM's market share growth will slow.
Scheduled U.S. Economic Reports (Next Week)
Empire State Index, Home Builders’ Index, Import Prices, Housing Starts, Industrial Production, Producer Price Index, Leading Indicators, Philly Fed Index, Consumer Price Index
In Earnings News
PepsiCo Inc (PEP) reported a 43% drop in fourth-quarter profit to $719 million or 46 cents a share, down from $1.26 billion, or 77 cents a share, in the same quarter of 2007. Earnings were affected by restructuring charges, although Pepsi met analysts' expectations.
Abercrombie & Fitch (ANF) earned $68.4 million, or 78 cents per share, down from $216.8 million, or $2.40 per share, a year earlier. Analysts expected earnings per share of $1 and revenue of $997.7 million.
Panera Bread Co (PNRA) said its fiscal fourth-quarter profit grew 43 percent. The Company said net income climbed to $25.5 million, or 84 cents per share, in line with the analyst consensus estimate.
Coinstar Inc. (CSTR) posted a fourth-quarter profit of $4.2 million on growth in its DVD, money transfer and coin-product businesses. The company reported net income of 15 cents per share while analysts expected 16 cents.
Scheduled Earnings Reports (Next Week)
Wal-Mart, Deere & Co., BankUnited Financial, Delphi Corp, Agilent Technologies, Fossil, La Z Boy, Teva Pharmaceuticals, Brinks Home Security, Dress Barn, Goodyear, OfficeMax, Hormel Foods, Intuit, Nestle, Regal Entertainment, Sprint, Lowes
Stocks in the News
Microsoft Corp (MSFT) plans to open retail outlets hiring a 25-year veteran of Wal-Mart Stores Inc., David Porter, as corporate vice president of retail stores.
Nabors Industries Ltd (NBR) will take a $400M before tax charge from oil and gas ceiling test adjustments and goodwill impairments.
McAfee Inc (MFE) said net income for its fourth-quarter rose to $45.4 million, or 29 cents a share, from $12.2 million, or 7 cents a share in the same period a year earlier.
Toyota Motor Co (TM) will cut North American production days in April, reducing paid hours for workers, eliminating executive “and salaried” bonuses, cutting executive pay and offering a "voluntary exit" to employees.
Wells Fargo (WFC) said its fourth-quarter loss will increase to 84 cents a share from 79 cents previously reported due to a non-cash charge of $328.4 million.
RealNetworks Inc (RNWK) reported a fiscal fourth-quarter loss of $240.5 million, or $1.78 a share.
The House of Representatives approved a sprawling, $787 billion stimulus package backed by President Obama, handing the new president a key victory on his top economic priority that he says will create 3.5 million jobs and help lift the economy from recession. The huge package contains billions of dollars in infrastructure spending and assistance to states and the unemployed, and a $400 tax cut for individuals that Obama promoted during his run for the White House.
JPMorgan Chase & Co. (JPM) and Citigroup Inc. (C) are expanding their efforts to halt home foreclosures while the Obama administration develops its plans to help the U.S. housing market. JPMorgan CEO Jamie Dimon said the company plans to stop new foreclosures for owner-occupied home loans through March 6th.
Treasury Secretary Geithner will try to sell the G-7 on his plan to set the U.S. and global economy back on track. Geithner and Fed Chairman Bernanke will meet in Rome with counterparts from the other Group of Seven. Geithner is expected to give the G-7 a more detailed outline of the Obama administration's approach, an effort to win an endorsement abroad for a plan that met with a skeptical reaction from markets and lawmakers at home.
According to the University of Michigan, consumer sentiment index fell in early February to 56.2 from 61.2 in January. Analysts were looking for a February reading of 61. With sentiment remaining near historically low levels, it's clear that the widespread economic weakness is weighing down consumers even as Washington works on a massive stimulus plan to create jobs and enhance the national benefit safety net.
OPEC said that world oil demand will contract more sharply than expected this year due to the economic crisis, an outlook that may bolster the case for further supply cuts. The Organization of the Petroleum Exporting Countries said global demand will fall by 580,000 barrels per day (bpd) in 2009 to average 85.13 million bpd. Its previous forecast was for demand to contract by 180,000 bpd. Oil use is falling this year and in 2008, the first drop in more than 20 years.
The Federal Open Market Committee announced that it was expanding all of its meetings this year to two days. In a statement, the FOMC said it wanted "additional time for discussion." All FOMC policy statements will be released on Wednesdays. The next FOMC meeting is scheduled for March 17th and 18th.
Bank of America Corp. (BAC) Chief Financial Officer Joe Price assured employees the company has enough cash to finance operations for more than two years. Bank of America serves more than half of all U.S. households and millions of businesses.
Research In Motion (RIMM) was downgraded to an underperform, or sell, rating by Credit Suisse. In a note to clients, an analyst said he expects overall Smartphone sales to decline in the slowing economy, and that RIM's market share growth will slow.
Scheduled U.S. Economic Reports (Next Week)
Empire State Index, Home Builders’ Index, Import Prices, Housing Starts, Industrial Production, Producer Price Index, Leading Indicators, Philly Fed Index, Consumer Price Index
In Earnings News
PepsiCo Inc (PEP) reported a 43% drop in fourth-quarter profit to $719 million or 46 cents a share, down from $1.26 billion, or 77 cents a share, in the same quarter of 2007. Earnings were affected by restructuring charges, although Pepsi met analysts' expectations.
Abercrombie & Fitch (ANF) earned $68.4 million, or 78 cents per share, down from $216.8 million, or $2.40 per share, a year earlier. Analysts expected earnings per share of $1 and revenue of $997.7 million.
Panera Bread Co (PNRA) said its fiscal fourth-quarter profit grew 43 percent. The Company said net income climbed to $25.5 million, or 84 cents per share, in line with the analyst consensus estimate.
Coinstar Inc. (CSTR) posted a fourth-quarter profit of $4.2 million on growth in its DVD, money transfer and coin-product businesses. The company reported net income of 15 cents per share while analysts expected 16 cents.
Scheduled Earnings Reports (Next Week)
Wal-Mart, Deere & Co., BankUnited Financial, Delphi Corp, Agilent Technologies, Fossil, La Z Boy, Teva Pharmaceuticals, Brinks Home Security, Dress Barn, Goodyear, OfficeMax, Hormel Foods, Intuit, Nestle, Regal Entertainment, Sprint, Lowes
Stocks in the News
Microsoft Corp (MSFT) plans to open retail outlets hiring a 25-year veteran of Wal-Mart Stores Inc., David Porter, as corporate vice president of retail stores.
Nabors Industries Ltd (NBR) will take a $400M before tax charge from oil and gas ceiling test adjustments and goodwill impairments.
McAfee Inc (MFE) said net income for its fourth-quarter rose to $45.4 million, or 29 cents a share, from $12.2 million, or 7 cents a share in the same period a year earlier.
Toyota Motor Co (TM) will cut North American production days in April, reducing paid hours for workers, eliminating executive “and salaried” bonuses, cutting executive pay and offering a "voluntary exit" to employees.
Wells Fargo (WFC) said its fourth-quarter loss will increase to 84 cents a share from 79 cents previously reported due to a non-cash charge of $328.4 million.
RealNetworks Inc (RNWK) reported a fiscal fourth-quarter loss of $240.5 million, or $1.78 a share.
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