JDfn Daily Digest - December 26, 2008
Shoppers hit the stores early today to return unwanted gifts and take advantage of drastic price cuts offered by retailers desperate to get rid of old merchandise and boost their less-than-cheery holiday sales. Stores were hoping the discounts would entice shoppers to redeem gift cards and use cash from returning unwanted gifts to buy something new.
According to preliminary data from SpendingPulse, a weak economy and strong winter storms brought total retail sales down between 5.5 percent and 8 percent from a year ago. The U.S. dollar traded lower, with evidence of poor retail sales serving as the focus for thin post-holiday trading.
Amazon.com Inc. (AMZN) said the 2008 holiday season was the online retailer's "best ever," with more than 6.3 million items ordered and 5.6 million units shipped during its peak day on Dec. 15th. Amazon's upbeat take on the holiday season bucked the drumbeat of generally dismal news from retailers.
Wal-Mart Stores Inc (WMT) announced that it will start selling the Apple (AAPL) iPhone 3G at about 2,500 stores beginning this Sunday. The retailer will sell the 8 gigabyte model for $197, a two dollar discount from the regular retail price, and the 16 gigabyte model for $297, normally $299 with a new two-year service agreement from AT&T (T). Wal-Mart is the second independent retailer after Best Buy (BBY) to sell the iPhone 3G.
The CEO of Gulf Oil, Joe Petrowski, said the steep drop in oil prices may not be over yet. While oil has tumbled more than $100 off its $147 a barrel high in the summertime, the price of US light, sweet crude could yet move as low as $25 and even $20 if current conditions persist.
According to the AAA Fuel Gauge report, the average U.S. retail gasoline price resumed its fall after a week of stability, dropping to $1.64 a gallon for regular. Prices had remained at or near $1.66 per gallon for well over a week prior to the recent drop. AAA attributed the decline to seasonal factors.
GMAC Financial Services' transition into a bank holding company should buy the troubled lender some time to turn itself around, but the cost is a loss of control for its owners General Motors Corp. (GM) and Cerberus Capital Management. It also raises a number of questions, including who will control GMAC going forward and how much its business model might change.
Japan's industrial output tumbled at a record pace in November, stoking fears the country's recession may stretch longer and be more painful than anticipated. Industrial production fell as much as 8.1% in November from the previous month -- the biggest drop in the measure since the government started releasing comparable figures in 1953.
Toyota Motor Corp. (TM) has issued a recall for more than 120,000 cars in China to fix a problem that could result in loss of steering control. Earlier this week, the company said it was sinking into its first operating loss in seven decades.
Oil drilling equipment manufacturer FMC Technologies Inc. (FTI) said it will acquire a 45 percent stake in Schilling Robotics LLC in a move to expand its subsea energy exploration business. FMC Technologies said the $116 million deal is expected to close by Dec. 31st.
Scheduled U.S. Economic Reports (Next Week)
Consumer Confidence (Dec), ISM Index (Dec)
In Earnings News
Due to the observation of the Christmas holiday there are no major corporate earnings to report.
Scheduled Earnings Reports (Next Week)
Comverse Technology, Cal Maine Foods, Shuffle Master, BankUnited
Stocks in the News
The New York Times (NYT) is actively shopping the company's stake in New England Sports Ventures. NYT $75 million for a 17.5% stake in the holding company for the Boston Red Sox and New England Sports Network in 2002, and is the second largest shareholder behind hedge fund billionaire John Henry.
Office Max Inc (OMX) may be downgraded by Moody's because its operating performance has softened.
General Growth Properties (GGP) corporate credit rating was cut by Standard & Poor's.
Mattel Inc (MAT) announced that as Barbie turns 50, Mattel plans to develop an "edgier Barbie."
According to preliminary data from SpendingPulse, a weak economy and strong winter storms brought total retail sales down between 5.5 percent and 8 percent from a year ago. The U.S. dollar traded lower, with evidence of poor retail sales serving as the focus for thin post-holiday trading.
Amazon.com Inc. (AMZN) said the 2008 holiday season was the online retailer's "best ever," with more than 6.3 million items ordered and 5.6 million units shipped during its peak day on Dec. 15th. Amazon's upbeat take on the holiday season bucked the drumbeat of generally dismal news from retailers.
Wal-Mart Stores Inc (WMT) announced that it will start selling the Apple (AAPL) iPhone 3G at about 2,500 stores beginning this Sunday. The retailer will sell the 8 gigabyte model for $197, a two dollar discount from the regular retail price, and the 16 gigabyte model for $297, normally $299 with a new two-year service agreement from AT&T (T). Wal-Mart is the second independent retailer after Best Buy (BBY) to sell the iPhone 3G.
The CEO of Gulf Oil, Joe Petrowski, said the steep drop in oil prices may not be over yet. While oil has tumbled more than $100 off its $147 a barrel high in the summertime, the price of US light, sweet crude could yet move as low as $25 and even $20 if current conditions persist.
According to the AAA Fuel Gauge report, the average U.S. retail gasoline price resumed its fall after a week of stability, dropping to $1.64 a gallon for regular. Prices had remained at or near $1.66 per gallon for well over a week prior to the recent drop. AAA attributed the decline to seasonal factors.
GMAC Financial Services' transition into a bank holding company should buy the troubled lender some time to turn itself around, but the cost is a loss of control for its owners General Motors Corp. (GM) and Cerberus Capital Management. It also raises a number of questions, including who will control GMAC going forward and how much its business model might change.
Japan's industrial output tumbled at a record pace in November, stoking fears the country's recession may stretch longer and be more painful than anticipated. Industrial production fell as much as 8.1% in November from the previous month -- the biggest drop in the measure since the government started releasing comparable figures in 1953.
Toyota Motor Corp. (TM) has issued a recall for more than 120,000 cars in China to fix a problem that could result in loss of steering control. Earlier this week, the company said it was sinking into its first operating loss in seven decades.
Oil drilling equipment manufacturer FMC Technologies Inc. (FTI) said it will acquire a 45 percent stake in Schilling Robotics LLC in a move to expand its subsea energy exploration business. FMC Technologies said the $116 million deal is expected to close by Dec. 31st.
Scheduled U.S. Economic Reports (Next Week)
Consumer Confidence (Dec), ISM Index (Dec)
In Earnings News
Due to the observation of the Christmas holiday there are no major corporate earnings to report.
Scheduled Earnings Reports (Next Week)
Comverse Technology, Cal Maine Foods, Shuffle Master, BankUnited
Stocks in the News
The New York Times (NYT) is actively shopping the company's stake in New England Sports Ventures. NYT $75 million for a 17.5% stake in the holding company for the Boston Red Sox and New England Sports Network in 2002, and is the second largest shareholder behind hedge fund billionaire John Henry.
Office Max Inc (OMX) may be downgraded by Moody's because its operating performance has softened.
General Growth Properties (GGP) corporate credit rating was cut by Standard & Poor's.
Mattel Inc (MAT) announced that as Barbie turns 50, Mattel plans to develop an "edgier Barbie."
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