JDfn Daily Digest - November 18, 2008
A closed-door debate between top government officials over the priorities of the government's financial market rescue package spilled out into public. Treasury Secretary Henry Paulson and Federal Deposit Insurance Corp. Chairwoman Sheila Bair clashed in public over whether to use some of the $700 billion package to aid homeowners at risk of foreclosure.
In testimony before the House Financial Services panel, Bair said the government "must decisively address the mortgage problem as part of our wider strategy to restore confidence and stability to our economy." Paulson, Federal Reserve Chairman Ben Bernanke and Federal Deposit Insurance Corp. Chairman Sheila Bair are scheduled to testify before the U.S. House Financial Services Committee.
Detroit's Big Three auto makers are urging Congress for a $25 billion government rescue. Democratic congressional leaders want to tap the $700 billion Wall Street rescue package for new loans to U.S. auto manufacturers and suppliers.
The Labor Department says wholesale prices dropped by 2.8 percent in October, the biggest one-month decline on records that go back more than 60 years. The overall decline in the department's Producer Price Index was bigger than the 1.8 percent drop analysts had expected.
Smithfield Packing Co., a unit of Smithfield Foods Inc (SFD), and the United Food and Commercial Workers say employees at the company's massive North Carolina hog slaughterhouse will decide next month whether to unionize. Company and union officials said Monday the vote is scheduled for Dec. 10-11 and results will be made public.
Weak October retail sales and the uncertainty of the upcoming holiday season amid the worst financial crisis to hit the U.S. in decades has prompted shipping giant UPS Inc. (UPS) to decide not to release a projection for the amount of packages it expects to deliver on its busiest day of the year.
InBev says it has closed its $52 billion (41 billion euro) deal to take over Anheuser-Busch to create the world's largest brewer. The new company is called Anheuser-Busch InBev and will also be one of the top five global consumer products companies.
HSBC Holdings Plc (HBC), Europe's largest bank by market value, plans to cut 500 jobs in Asia due to the global economic slump. The job cuts will be made in various parts of the business, including back office functions, with about 450 of the job cuts coming from Hong Kong.
Pepsi Bottling Group (PBG), the world’s second-largest soft-drink distributor, lowered its 2008 earnings forecast and said it will eliminate 4.6 percent of its workforce in North America, Europe and Mexico. Pepsi Bottling, which is 33 percent-owned by PepsiCo Inc., will cut 3,150 jobs, mostly in Mexico.
Scheduled U.S. Economic Reports (Wednesday)
Consumer Price Index (Oct), Housing Starts (Oct)
In Earnings News
Medtronic Inc. (MDT), the world's largest medical device maker, said a legal charge from a patent dispute with Johnson & Johnson weighed down its fiscal 2009 second-quarter profit. The company earned $571 million, or 51 cents per share. Analysts expected profit of 71 cents per share.
Home Depot Inc. (HD) said its third quarter profit sank 31 percent on slow sales at established locations as consumers continued to cut back on spending. Home Depot said net income fell to $756 million, or 45 cents per share. Analysts expected earnings of 38 cents per share.
Saks (SKS) says it lost more than expected in the third quarter as its affluent customers slashed spending amid massive job losses on Wall Street and turmoil in the stock market. The company said it lost $42.8 million, or 31 cents per share. Analysts expected a smaller loss of 3 cents a share.
Mothers Work Inc. (MWRK) reported its fiscal fourth-quarter loss narrowed, helped by efforts to reduce inventory, lower debt and control costs. Mothers Work reported a loss of $4.8 million, or 80 cents per share. Adjusted earnings were $2.3 million, or 38 cents per share, compared with $6.6 million, or $1.08 per share.
Hewlett-Packard (HPQ) says it expects fiscal fourth-quarter results above Wall Street's expectations despite the bad economy. Hewlett-Packard expects earnings of 84 cents per share for the quarter, or $1.03 per share on an adjusted basis, on revenue of $33.6 million. Analysts expected a profit of $1 per share.
Scheduled Earnings Reports (Wednesday)
Intuit, BJs Wholesale, Men’s Wearhouse, PetSmart, Dress Barn, Hot Topic, Ross Stores, Napster, Gymboree, and Novastar Financial
Stocks in the News
Yahoo (YHOO) CEO Jerry Yang will step down after a difficult 17 months and return to role as "Chief Yahoo."
Union Pacific (UNP) warns fourth-quarter shipping volumes will be lower than originally predicted amid the worsening economy.
Stericycle Inc (SRCL) will replace Anheuser-Busch (BUD) in the S&P 500.
Layne Christensen Co. (LAYN), which provides drilling and construction services, said Tuesday it acquired Meadors Construction Co.
Boise Inc (BZ) said that at its St. Helens, Oregon paper mill it would halt pulp production and cut annual paper-output capacity by 200,000 tons.
The9 Ltd (NCTY) reported a third-quarter profit rose to $14.5 million, or 52 cents a share, from $5.6 million, or 19 cents, in the year-ago period.
Kongzhong Corp (KONG) reported a third-quarter loss of $21.6 million, or 61 cents a share, from a profit of $544,000, or 2 cents, in the year-ago period.
In testimony before the House Financial Services panel, Bair said the government "must decisively address the mortgage problem as part of our wider strategy to restore confidence and stability to our economy." Paulson, Federal Reserve Chairman Ben Bernanke and Federal Deposit Insurance Corp. Chairman Sheila Bair are scheduled to testify before the U.S. House Financial Services Committee.
Detroit's Big Three auto makers are urging Congress for a $25 billion government rescue. Democratic congressional leaders want to tap the $700 billion Wall Street rescue package for new loans to U.S. auto manufacturers and suppliers.
The Labor Department says wholesale prices dropped by 2.8 percent in October, the biggest one-month decline on records that go back more than 60 years. The overall decline in the department's Producer Price Index was bigger than the 1.8 percent drop analysts had expected.
Smithfield Packing Co., a unit of Smithfield Foods Inc (SFD), and the United Food and Commercial Workers say employees at the company's massive North Carolina hog slaughterhouse will decide next month whether to unionize. Company and union officials said Monday the vote is scheduled for Dec. 10-11 and results will be made public.
Weak October retail sales and the uncertainty of the upcoming holiday season amid the worst financial crisis to hit the U.S. in decades has prompted shipping giant UPS Inc. (UPS) to decide not to release a projection for the amount of packages it expects to deliver on its busiest day of the year.
InBev says it has closed its $52 billion (41 billion euro) deal to take over Anheuser-Busch to create the world's largest brewer. The new company is called Anheuser-Busch InBev and will also be one of the top five global consumer products companies.
HSBC Holdings Plc (HBC), Europe's largest bank by market value, plans to cut 500 jobs in Asia due to the global economic slump. The job cuts will be made in various parts of the business, including back office functions, with about 450 of the job cuts coming from Hong Kong.
Pepsi Bottling Group (PBG), the world’s second-largest soft-drink distributor, lowered its 2008 earnings forecast and said it will eliminate 4.6 percent of its workforce in North America, Europe and Mexico. Pepsi Bottling, which is 33 percent-owned by PepsiCo Inc., will cut 3,150 jobs, mostly in Mexico.
Scheduled U.S. Economic Reports (Wednesday)
Consumer Price Index (Oct), Housing Starts (Oct)
In Earnings News
Medtronic Inc. (MDT), the world's largest medical device maker, said a legal charge from a patent dispute with Johnson & Johnson weighed down its fiscal 2009 second-quarter profit. The company earned $571 million, or 51 cents per share. Analysts expected profit of 71 cents per share.
Home Depot Inc. (HD) said its third quarter profit sank 31 percent on slow sales at established locations as consumers continued to cut back on spending. Home Depot said net income fell to $756 million, or 45 cents per share. Analysts expected earnings of 38 cents per share.
Saks (SKS) says it lost more than expected in the third quarter as its affluent customers slashed spending amid massive job losses on Wall Street and turmoil in the stock market. The company said it lost $42.8 million, or 31 cents per share. Analysts expected a smaller loss of 3 cents a share.
Mothers Work Inc. (MWRK) reported its fiscal fourth-quarter loss narrowed, helped by efforts to reduce inventory, lower debt and control costs. Mothers Work reported a loss of $4.8 million, or 80 cents per share. Adjusted earnings were $2.3 million, or 38 cents per share, compared with $6.6 million, or $1.08 per share.
Hewlett-Packard (HPQ) says it expects fiscal fourth-quarter results above Wall Street's expectations despite the bad economy. Hewlett-Packard expects earnings of 84 cents per share for the quarter, or $1.03 per share on an adjusted basis, on revenue of $33.6 million. Analysts expected a profit of $1 per share.
Scheduled Earnings Reports (Wednesday)
Intuit, BJs Wholesale, Men’s Wearhouse, PetSmart, Dress Barn, Hot Topic, Ross Stores, Napster, Gymboree, and Novastar Financial
Stocks in the News
Yahoo (YHOO) CEO Jerry Yang will step down after a difficult 17 months and return to role as "Chief Yahoo."
Union Pacific (UNP) warns fourth-quarter shipping volumes will be lower than originally predicted amid the worsening economy.
Stericycle Inc (SRCL) will replace Anheuser-Busch (BUD) in the S&P 500.
Layne Christensen Co. (LAYN), which provides drilling and construction services, said Tuesday it acquired Meadors Construction Co.
Boise Inc (BZ) said that at its St. Helens, Oregon paper mill it would halt pulp production and cut annual paper-output capacity by 200,000 tons.
The9 Ltd (NCTY) reported a third-quarter profit rose to $14.5 million, or 52 cents a share, from $5.6 million, or 19 cents, in the year-ago period.
Kongzhong Corp (KONG) reported a third-quarter loss of $21.6 million, or 61 cents a share, from a profit of $544,000, or 2 cents, in the year-ago period.
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