JDfn Daily Digest - November 13, 2008
The Labor Department reported that jobless claims last week increased by 32,000 to a seasonally adjusted 516,000. That nearly matched the 517,000 claims reported seven years ago, and is the second-highest total since 1992.
The Commerce Department reported Thursday that the trade deficit fell by 4.4 percent to $56.5 billion in September, the smallest imbalance since October 2007. The better-than-expected improvement reflected a 15.7 percent fall in petroleum imports as the average price for imported crude oil dropped and the volume of shipments fell to the lowest level in more than five years.
OPEC members will meet in Cairo on Nov. 29th for "consultation" on the oil market, as oil prices continued their slide. OPEC countries are calling for action to halt oil's slide to around $56 a barrel as they face reduced revenues and a struggle to finance domestic programs. Oil prices have tumbled from a record level of more than $147 in July.
The world's developed economies, hard hit by the financial crisis, have slid into recession and will shrink further in 2009. In its latest economic forecasts, the Paris-based Organization for Economic Cooperation and Development said gross domestic product was likely to fall by 0.3 percent in 2009 for its 30 member countries, representing democracies with market economies.
The Mortgage Bankers Association said consumers took advantage of lower mortgage rates last week, with the pace of mortgage applications filed rising a seasonally adjusted 11.9% compared with the prior week. Still, applications volume for the week ended Nov. 7 was down 40% from the same week in 2007.
As government and industry scrambled to stem the housing crisis, almost 85,000 homes were lost to foreclosure in October. Last month nearly 280,000 struggling borrowers received foreclosure filings, including default notices, notices of auction sales and bank repossessions. That's a 5% increase from September, and up 25% from October 2007.
McDonalds (MCD) CEO, Jim Skinner said that his company is shielded against recession and has hardly been hit by the international financial crisis. Skinner said the company would be in a better position without the global financial crisis and the significant rise in food prices, but added: "McDonald's seems well positioned for recession.”
Las Vegas Sands Corp. (LVS) will lay off as many as 11,000 workers after a cash crunch forced the company to halt construction on multibillion dollar projects in the Chinese gambling city of Macau.
Scheduled U.S. Economic Reports (Friday)
Import Price Index (Oct), Retail Sales (Oct), Consumer Sentiment (Nov), Inventories (Sep)
In Earnings News
Wal-Mart (WMT) said it earned $3.14 billion, or 80 cents per share, in the quarter ended Oct. 31st. That's up from $2.86 billion, or 70 cents per share, a year earlier. Earnings from continuing operations were 77 cents per share. Analysts expected 76 cents per share.
Intel (INTC) cut more than $1 billion from its sales forecast and dialed its profit expectations way back. Intel, the world's biggest maker of PC microprocessors with 80 percent of the global market, blamed a clampdown on spending for reducing demand for its chips.
Urban Outfitters Inc. (URBN) said third-quarter profit rose 31 percent as sales rose across all three segments. Urban Outfitters' profit rose to $59.3 million, or 35 cents per share, from $45.4 million, or 27 cents per share, last year. Analysts expected earnings of 35 cents per share.
BT Group PLC (BT), Britain's largest phone company, reported quarterly earnings rose 18 percent but said it would slash 6,000 more jobs by March to keep costs down and maintain its profits. The company said profits rose because last year's earnings were artificially weighed by a large one-time restructuring cost, so the job cuts -- which come on top of 4,000 already made -- were necessary to improve overall profitability.
Scheduled Earnings Reports (Friday)
JC Penney, Agilent Technologies, Hewitt Associates, Abercrombie & Fitch, Open Solutions, Beacon Federal Bancorp, Frontier Airlines
Stocks in the News
General Motors (GM) was downgraded to neutral from overweight by JP Morgan.
Siemens AG (SI) said fourth-quarter new orders rose and it confirmed its outlook for fiscal 2009.
Bristol-Myers Squibb Co. (BMY) said it intends to launch a new working capital initiative which focuses on increasing cash flow by $750 million to $1 billion by 2011.
International Paper (IP) will permanently shut down an uncoated freesheet paper machine at its Franklin, Virginia mill.
CB Richard Ellis Group (CBG) priced a public offering of 50 million Class A shares at $3.77.
Applied Materials (AMAT) fiscal fourth-quarter profit was $231 million, or 17 cents a share, down from $422 million, or 30 cents a share, a year earlier.
Maximus (MMS) a fiscal fourth-quarter net loss from a year-earlier profit on 8.8% higher revenue.
Cogent Systems Inc (COGT) extended its stock buyback program by one year until Nov. 12, 2009 and increased its size to $150 million from $100 million.
K-Swiss Inc (KSWS) declared a special dividend of $2 a share, payable Dec. 24th to holders of record Dec. 10th.
CVS Caremark (CVS) named Troyen Brennan executive vice president and chief medical officer.
National Semiconductor Corp (NSM) lowered its second-quarter sales outlook because the weakened economy.
The Commerce Department reported Thursday that the trade deficit fell by 4.4 percent to $56.5 billion in September, the smallest imbalance since October 2007. The better-than-expected improvement reflected a 15.7 percent fall in petroleum imports as the average price for imported crude oil dropped and the volume of shipments fell to the lowest level in more than five years.
OPEC members will meet in Cairo on Nov. 29th for "consultation" on the oil market, as oil prices continued their slide. OPEC countries are calling for action to halt oil's slide to around $56 a barrel as they face reduced revenues and a struggle to finance domestic programs. Oil prices have tumbled from a record level of more than $147 in July.
The world's developed economies, hard hit by the financial crisis, have slid into recession and will shrink further in 2009. In its latest economic forecasts, the Paris-based Organization for Economic Cooperation and Development said gross domestic product was likely to fall by 0.3 percent in 2009 for its 30 member countries, representing democracies with market economies.
The Mortgage Bankers Association said consumers took advantage of lower mortgage rates last week, with the pace of mortgage applications filed rising a seasonally adjusted 11.9% compared with the prior week. Still, applications volume for the week ended Nov. 7 was down 40% from the same week in 2007.
As government and industry scrambled to stem the housing crisis, almost 85,000 homes were lost to foreclosure in October. Last month nearly 280,000 struggling borrowers received foreclosure filings, including default notices, notices of auction sales and bank repossessions. That's a 5% increase from September, and up 25% from October 2007.
McDonalds (MCD) CEO, Jim Skinner said that his company is shielded against recession and has hardly been hit by the international financial crisis. Skinner said the company would be in a better position without the global financial crisis and the significant rise in food prices, but added: "McDonald's seems well positioned for recession.”
Las Vegas Sands Corp. (LVS) will lay off as many as 11,000 workers after a cash crunch forced the company to halt construction on multibillion dollar projects in the Chinese gambling city of Macau.
Scheduled U.S. Economic Reports (Friday)
Import Price Index (Oct), Retail Sales (Oct), Consumer Sentiment (Nov), Inventories (Sep)
In Earnings News
Wal-Mart (WMT) said it earned $3.14 billion, or 80 cents per share, in the quarter ended Oct. 31st. That's up from $2.86 billion, or 70 cents per share, a year earlier. Earnings from continuing operations were 77 cents per share. Analysts expected 76 cents per share.
Intel (INTC) cut more than $1 billion from its sales forecast and dialed its profit expectations way back. Intel, the world's biggest maker of PC microprocessors with 80 percent of the global market, blamed a clampdown on spending for reducing demand for its chips.
Urban Outfitters Inc. (URBN) said third-quarter profit rose 31 percent as sales rose across all three segments. Urban Outfitters' profit rose to $59.3 million, or 35 cents per share, from $45.4 million, or 27 cents per share, last year. Analysts expected earnings of 35 cents per share.
BT Group PLC (BT), Britain's largest phone company, reported quarterly earnings rose 18 percent but said it would slash 6,000 more jobs by March to keep costs down and maintain its profits. The company said profits rose because last year's earnings were artificially weighed by a large one-time restructuring cost, so the job cuts -- which come on top of 4,000 already made -- were necessary to improve overall profitability.
Scheduled Earnings Reports (Friday)
JC Penney, Agilent Technologies, Hewitt Associates, Abercrombie & Fitch, Open Solutions, Beacon Federal Bancorp, Frontier Airlines
Stocks in the News
General Motors (GM) was downgraded to neutral from overweight by JP Morgan.
Siemens AG (SI) said fourth-quarter new orders rose and it confirmed its outlook for fiscal 2009.
Bristol-Myers Squibb Co. (BMY) said it intends to launch a new working capital initiative which focuses on increasing cash flow by $750 million to $1 billion by 2011.
International Paper (IP) will permanently shut down an uncoated freesheet paper machine at its Franklin, Virginia mill.
CB Richard Ellis Group (CBG) priced a public offering of 50 million Class A shares at $3.77.
Applied Materials (AMAT) fiscal fourth-quarter profit was $231 million, or 17 cents a share, down from $422 million, or 30 cents a share, a year earlier.
Maximus (MMS) a fiscal fourth-quarter net loss from a year-earlier profit on 8.8% higher revenue.
Cogent Systems Inc (COGT) extended its stock buyback program by one year until Nov. 12, 2009 and increased its size to $150 million from $100 million.
K-Swiss Inc (KSWS) declared a special dividend of $2 a share, payable Dec. 24th to holders of record Dec. 10th.
CVS Caremark (CVS) named Troyen Brennan executive vice president and chief medical officer.
National Semiconductor Corp (NSM) lowered its second-quarter sales outlook because the weakened economy.
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