JDfn Daily Digest - December 3, 2008
The Institute for Supply Management reported that non-manufacturing sectors of the U.S. economy contracted at a record pace during November. The ISM non-manufacturing index fell to 37.3% from 44.4% in October. The decline was broad-based with 17 out of 18 industries reported contraction The decline was larger than expected. Economists were looking the index to fall to 42.7%.
The Labor Department said the productivity of U.S. workers was slightly stronger in the third quarter than previously reported. Productivity in non-farm businesses increased at an annual rate of 1.3% in the quarter, not 1.1%. Unit labor costs, a key gauge of wage-price pressures, rose 2.8%, not 3.6%.
According to the ADP national employment index, the U.S. private sector shed 250,000 jobs in November, the biggest job loss in seven years. The loss was in line with estimates of analysts.
Led by massive cuts at Citigroup and other banks, major U.S. corporations announced almost 181,700 layoffs in November, the highest total in nearly seven years. The report from outplacement firm Challenger Gray & Christmas comes two days before the Labor Department is scheduled to release its report on employment in November.
According to the Mortgage Bankers Association's weekly survey, mortgage applications filed last week rose a seasonally adjusted 112.1%, compared with the week before, as borrowers rushed to lock in lower rates.
The American Petroleum Institute reported that U.S. crude inventories fell by 2.3 million barrels to 317.4 million in the week ended Nov. 28th. Distillate stocks rose by 3.1 million barrels to 131.8 million in the same period, while gasoline stocks dropped by 416,000 barrels to 200.8 million.
Fritz Henderson, president and chief operating officer of General Motors Corp. (GM) said bankruptcy isn't a viable option, as the United Auto Workers braced for a decision on contract concessions to the endangered Big Three.
Lockheed Martin Corp. (LMT) has been awarded a $1.1 billion U.S. contract to build the country's next-generation of weather satellites, beating out rivals Boeing Co. (BA) and Northrop Grumman Corp. (NOC) in a three-way race.
Online spending at U.S. retailers jumped 15 percent on Dec. 1st to $846 million, the second-biggest amount on record, as Internet sites lured customers with discounts on clothing and electronics
Bally Total Fitness Corp. (BTF) filed for Chapter 11 bankruptcy protection for the second time in less than two years, hindered by debt and limited refinancing options amid the credit crunch.
Scheduled U.S. Economic Reports (Thursday)
Initial Jobless Claims (Week of Nov 29th), Factory Orders (Oct)
In Earnings News
Del Monte Foods Co. (DLM) reported its net income soared due to profit from a business it sold in October and higher prices which boosted sales. For the quarter ended Oct. 26, net income climbed 95 percent to $50.4 million, or 25 cents per share. Analysts expected a more modest profit of 12 cents per share.
Infineon Technologies AG (IFX) said that a write-down on its stake in Qimonda and lower chip prices. Infineon said it lost euro763 million ($968.8 million) in the fourth quarter that ended Sept. 30th compared with a 280 million Euro loss a year earlier.
Synovis Life Technologies Inc.'s (SYNO) fourth-quarter profit for grew 23 percent as sales of its tissue regeneration and bleeding control products improved. In the quarter ended Oct. 31, Synovis reported a profit of $1.9 million, or 15 cents per share, compared with $1.6 million, or 12 cents per share, in the same period in 2007.
InterDigital Inc. (IDCC), a developer and producer of wireless technologies, said it expects fourth-quarter revenue to range from $57 million to $60 million, above analysts' expectations. Analysts forecast revenue of $56.7 million for the quarter.
Scheduled Earnings Reports (Thursday)
Toll Brothers, Gerber Scientific, Novell, Jos A. Bank Clothiers, American Software, Smithfield Foods, Jackson Hewitt Tax Services, Guess Inc, Layne Christensen, Movado, Williams Sonoma
Stocks in the News
Marvell Technology (MRVL) reported third-quarter net income of $71 million, or 11 cents a share.
Constellation Brands (CEG) cut its full-year earnings estimate to a range of 63 cents to 71 cents a share because of taxes on certain gains.
Bed, Bath & Beyond (BBBY) estimates third-quarter earnings of 31 cents to 35 cents a share. Analysts estimated 42 cents a share.
Roberts Realty Investors Inc (RPI) boosted its stock-buyback plan to 300,000 shares.
U.S. Steel Corp (X) will close three plants over the next several weeks, affecting 3,500 workers.
Freeport-McMoRan Copper and Gold (FCX) will cut 2009 copper production by 200 million pounds and 2010 production by 500 million pounds from October 2008 estimates.
Research in Motion (RIMM) lowered its third-quarter sales and earnings outlook. The Canadian company said it was cutting its view because of the weak U.S. economy and strengthening dollar.
Flowers Foods (FLO) affirmed its outlook for 2008 and 2009. The company forecasts earnings of $1.22 to $1.26 a share on revenue of $2.42B to $2.43B in 2008.
Electronic Arts (ERTS) announced that it bought J2MSoft Inc., the Seoul developer of online games for personal computers.
The Labor Department said the productivity of U.S. workers was slightly stronger in the third quarter than previously reported. Productivity in non-farm businesses increased at an annual rate of 1.3% in the quarter, not 1.1%. Unit labor costs, a key gauge of wage-price pressures, rose 2.8%, not 3.6%.
According to the ADP national employment index, the U.S. private sector shed 250,000 jobs in November, the biggest job loss in seven years. The loss was in line with estimates of analysts.
Led by massive cuts at Citigroup and other banks, major U.S. corporations announced almost 181,700 layoffs in November, the highest total in nearly seven years. The report from outplacement firm Challenger Gray & Christmas comes two days before the Labor Department is scheduled to release its report on employment in November.
According to the Mortgage Bankers Association's weekly survey, mortgage applications filed last week rose a seasonally adjusted 112.1%, compared with the week before, as borrowers rushed to lock in lower rates.
The American Petroleum Institute reported that U.S. crude inventories fell by 2.3 million barrels to 317.4 million in the week ended Nov. 28th. Distillate stocks rose by 3.1 million barrels to 131.8 million in the same period, while gasoline stocks dropped by 416,000 barrels to 200.8 million.
Fritz Henderson, president and chief operating officer of General Motors Corp. (GM) said bankruptcy isn't a viable option, as the United Auto Workers braced for a decision on contract concessions to the endangered Big Three.
Lockheed Martin Corp. (LMT) has been awarded a $1.1 billion U.S. contract to build the country's next-generation of weather satellites, beating out rivals Boeing Co. (BA) and Northrop Grumman Corp. (NOC) in a three-way race.
Online spending at U.S. retailers jumped 15 percent on Dec. 1st to $846 million, the second-biggest amount on record, as Internet sites lured customers with discounts on clothing and electronics
Bally Total Fitness Corp. (BTF) filed for Chapter 11 bankruptcy protection for the second time in less than two years, hindered by debt and limited refinancing options amid the credit crunch.
Scheduled U.S. Economic Reports (Thursday)
Initial Jobless Claims (Week of Nov 29th), Factory Orders (Oct)
In Earnings News
Del Monte Foods Co. (DLM) reported its net income soared due to profit from a business it sold in October and higher prices which boosted sales. For the quarter ended Oct. 26, net income climbed 95 percent to $50.4 million, or 25 cents per share. Analysts expected a more modest profit of 12 cents per share.
Infineon Technologies AG (IFX) said that a write-down on its stake in Qimonda and lower chip prices. Infineon said it lost euro763 million ($968.8 million) in the fourth quarter that ended Sept. 30th compared with a 280 million Euro loss a year earlier.
Synovis Life Technologies Inc.'s (SYNO) fourth-quarter profit for grew 23 percent as sales of its tissue regeneration and bleeding control products improved. In the quarter ended Oct. 31, Synovis reported a profit of $1.9 million, or 15 cents per share, compared with $1.6 million, or 12 cents per share, in the same period in 2007.
InterDigital Inc. (IDCC), a developer and producer of wireless technologies, said it expects fourth-quarter revenue to range from $57 million to $60 million, above analysts' expectations. Analysts forecast revenue of $56.7 million for the quarter.
Scheduled Earnings Reports (Thursday)
Toll Brothers, Gerber Scientific, Novell, Jos A. Bank Clothiers, American Software, Smithfield Foods, Jackson Hewitt Tax Services, Guess Inc, Layne Christensen, Movado, Williams Sonoma
Stocks in the News
Marvell Technology (MRVL) reported third-quarter net income of $71 million, or 11 cents a share.
Constellation Brands (CEG) cut its full-year earnings estimate to a range of 63 cents to 71 cents a share because of taxes on certain gains.
Bed, Bath & Beyond (BBBY) estimates third-quarter earnings of 31 cents to 35 cents a share. Analysts estimated 42 cents a share.
Roberts Realty Investors Inc (RPI) boosted its stock-buyback plan to 300,000 shares.
U.S. Steel Corp (X) will close three plants over the next several weeks, affecting 3,500 workers.
Freeport-McMoRan Copper and Gold (FCX) will cut 2009 copper production by 200 million pounds and 2010 production by 500 million pounds from October 2008 estimates.
Research in Motion (RIMM) lowered its third-quarter sales and earnings outlook. The Canadian company said it was cutting its view because of the weak U.S. economy and strengthening dollar.
Flowers Foods (FLO) affirmed its outlook for 2008 and 2009. The company forecasts earnings of $1.22 to $1.26 a share on revenue of $2.42B to $2.43B in 2008.
Electronic Arts (ERTS) announced that it bought J2MSoft Inc., the Seoul developer of online games for personal computers.
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