JDfn Daily Digest - November 17, 2008
European and Asian markets didn't think much of the lengthy action plan world leaders came up with over the weekend to address a sagging global economy. The plan was produced at a weekend meeting of leaders of the Group of 20. But analysts say it will take more than one meeting to turn the tide for a global economy undergoing its worst upheavals in decades.
Industrial output posted a bigger-than-expected rebound in October after plunging in September by the largest amount in over 60 years. The Federal Reserve reported that industrial output rose 1.3 percent last month. That’s a larger increase than was anticipated. The rebound reflected a return to more normal operations at chemical plants, oil refineries and drilling platforms along the Gulf Coast.
The Empire state index fell to a record low 25.4. The gauges for new orders and shipments also fell to record low levels. Readings under zero indicate most firms said business was worse in November than in October.
Citigroup (C) announced that it plans to cut about 50,000 additional jobs in an effort to cut costs and stem huge losses sparked by bad investment and lending decisions. Citigroup's layoffs are the latest in a brutal round of job cuts across the financial industry.
Democrats want to use part of the $700 billion Wall Street bailout for emergency loans to help prop up the Big Three carmakers. Senate Democrats plan to introduce legislation today attaching an auto bailout to a House-passed bill extending unemployment benefits. A vote was expected as early as Wednesday.
General Motors Corp. (GM) will sell its entire stake in Suzuki Motor Corp. for 22.37 billion yen ($230 million), the automaker's latest move to stay afloat while awaiting a decision on government aid for the industry.
The Ski Channel plans to launch Christmas Day, with its on-demand mountain sports programming available in more than 15 million homes. Its programming will be available free to certain Verizon's (VZ) TV, Time Warner Cable (TWX), Cox Communications and DirecTV (DTV) customers.
Scheduled U.S. Economic Reports (Tuesday)
Retail Chain Index (Week of Nov 14th), Producer Price Index (Oct), Home Builders’ Index (Nov)
In Earnings News
Lowe's Cos. (LOW) said its third-quarter profit fell 24 percent as consumers postponed home-improvement projects and big-ticket purchases as an all-but-certain recession looms. Lowe's said Monday that profit fell to $488 million, or 33 cents per share. Analysts expected the company to earn 28 cents per share.
Target Corp. (TGT) reported a difficult retail environment and weak results from its credit-card segment led to a 24 percent decline in third-quarter earnings. Profit for the quarter fell to $369 million, or 49 cents per share. That was just above the average of 48 cents per share predicted by analysts.
Covidien Ltd. (COV) said its fiscal 2008 fourth-quarter profit surged on higher sales, a weaker U.S. dollar and new products, but the company provided a weak outlook for the next year. Covidien earned $409 million, or 81 cents per share. Analysts expected profit of 68 cents per share.
Scheduled Earnings Reports (Tuesday)
Home Depot, Saks, Pacific Sunwear, La-Z-Boy, Mother’s Work, G-Tech Holdings, Oxford Industries
Stocks in the News
Boeing (BA) reached tentative four-year labor agreements covering a total of 21,000 engineers and technical workers.
Nokia (NOK) was upgraded to outperform from underperform by Bernstein Research.
Franklin Covey Co. (FC) reported fiscal fourth-quarter net income tripled on 22% lower sales.
Genworth Financial (GNW) agreed in principle to acquire InterBank. Genworth also applied to the U.S. Office of Thrift Supervision to enable it to become a savings-and-loan-holding company.
UBS AG (UBS) said it will reform its executive pay schemes after accepting Swiss government help to recover from more than $46 billion in mortgage-related write-downs.
Lee Enterprises Inc (LEE), publisher of the St. Louis Post-Dispatch, said fiscal fourth-quarter earnings declined 70% as advertising sales fell.
OfficeMax (OMX) said it will cut 245 jobs from its corporate staff and field management in North America.
Industrial output posted a bigger-than-expected rebound in October after plunging in September by the largest amount in over 60 years. The Federal Reserve reported that industrial output rose 1.3 percent last month. That’s a larger increase than was anticipated. The rebound reflected a return to more normal operations at chemical plants, oil refineries and drilling platforms along the Gulf Coast.
The Empire state index fell to a record low 25.4. The gauges for new orders and shipments also fell to record low levels. Readings under zero indicate most firms said business was worse in November than in October.
Citigroup (C) announced that it plans to cut about 50,000 additional jobs in an effort to cut costs and stem huge losses sparked by bad investment and lending decisions. Citigroup's layoffs are the latest in a brutal round of job cuts across the financial industry.
Democrats want to use part of the $700 billion Wall Street bailout for emergency loans to help prop up the Big Three carmakers. Senate Democrats plan to introduce legislation today attaching an auto bailout to a House-passed bill extending unemployment benefits. A vote was expected as early as Wednesday.
General Motors Corp. (GM) will sell its entire stake in Suzuki Motor Corp. for 22.37 billion yen ($230 million), the automaker's latest move to stay afloat while awaiting a decision on government aid for the industry.
The Ski Channel plans to launch Christmas Day, with its on-demand mountain sports programming available in more than 15 million homes. Its programming will be available free to certain Verizon's (VZ) TV, Time Warner Cable (TWX), Cox Communications and DirecTV (DTV) customers.
Scheduled U.S. Economic Reports (Tuesday)
Retail Chain Index (Week of Nov 14th), Producer Price Index (Oct), Home Builders’ Index (Nov)
In Earnings News
Lowe's Cos. (LOW) said its third-quarter profit fell 24 percent as consumers postponed home-improvement projects and big-ticket purchases as an all-but-certain recession looms. Lowe's said Monday that profit fell to $488 million, or 33 cents per share. Analysts expected the company to earn 28 cents per share.
Target Corp. (TGT) reported a difficult retail environment and weak results from its credit-card segment led to a 24 percent decline in third-quarter earnings. Profit for the quarter fell to $369 million, or 49 cents per share. That was just above the average of 48 cents per share predicted by analysts.
Covidien Ltd. (COV) said its fiscal 2008 fourth-quarter profit surged on higher sales, a weaker U.S. dollar and new products, but the company provided a weak outlook for the next year. Covidien earned $409 million, or 81 cents per share. Analysts expected profit of 68 cents per share.
Scheduled Earnings Reports (Tuesday)
Home Depot, Saks, Pacific Sunwear, La-Z-Boy, Mother’s Work, G-Tech Holdings, Oxford Industries
Stocks in the News
Boeing (BA) reached tentative four-year labor agreements covering a total of 21,000 engineers and technical workers.
Nokia (NOK) was upgraded to outperform from underperform by Bernstein Research.
Franklin Covey Co. (FC) reported fiscal fourth-quarter net income tripled on 22% lower sales.
Genworth Financial (GNW) agreed in principle to acquire InterBank. Genworth also applied to the U.S. Office of Thrift Supervision to enable it to become a savings-and-loan-holding company.
UBS AG (UBS) said it will reform its executive pay schemes after accepting Swiss government help to recover from more than $46 billion in mortgage-related write-downs.
Lee Enterprises Inc (LEE), publisher of the St. Louis Post-Dispatch, said fiscal fourth-quarter earnings declined 70% as advertising sales fell.
OfficeMax (OMX) said it will cut 245 jobs from its corporate staff and field management in North America.
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