JDfn Daily Digest - November 21, 2008
In The News
Citigroup Inc. (C) shares traded higher in premarket trading, as the financial giant was said to be looking at selling off pieces of itself -- or the entire company -- to help rebuild investor confidence. The report comes as Citigroup is also said to be a bidder for Chevy Chase Bank, a Maryland-based lender with $11.4 billion in deposits and 292 branches - a deal that could be in jeopardy because of Citigroup's sinking stock price.
Bank of New York Mellon (BK) said it plans to cut 1,800 jobs as falling equity markets reduce the assets it oversees, cutting into potential profit. Assets under custody fell to $22.4 trillion as of Sept 30 from $23 trillion three months earlier, while assets under management fell to $1.07 trillion from $1.11 trillion.
President Bush signed into law a bill that Congress approved to keep unemployment checks flowing to jobless Americans through the holiday season. Bush signed the bill at just before departing for Lima, Peru, to attend the 21-nation Asia-Pacific Economic Cooperation forum.
Freddie Mac (FRE) said in a regulatory filing that it has been told by the New York Stock Exchange that it has failed to meet one of the NYSE's standards for continued listing of its stock. Freddie's shares over a consecutive 30-trading-day period have closed at below $1. It added that it is working with the Federal Housing Finance Agency to explore its options. Fannie Mae (FNM) received a similar warning from NYSE on Nov. 18th.
Honda Motor Corp. (HMC) announced it will cut production in Japan and Europe by 61,000 vehicles, as it continues to grapple with slowing global demand. The latest cut means Japan's second-largest automaker will reduce annual production by more than 140,000 vehicles worldwide.
Eli Lilly and Company (LLY) said it has successfully completed its tender offer for ImClone Systems (IMCL) for $70 a share in cash. As of the tender's expiration at midnight, Nov. 20, about 95.5% of ImClone's shares were validly tendered and not withdrawn. Lilly says it plans to complete the deal through a short-form merger on or about Nov. 24th.
According to the Air Transport Association, domestic air passenger yield, or the average price a person pays to fly one mile, increased 7.4% in October from a year earlier, rising to 15.8 cents. Data showed yield growth slowed from September, when it rose 12.5% on year to 16.1 cents. Yields exclude government taxes and fees, which often constitute a substantial portion of an airline ticket.
Scheduled U.S. Economic Reports (Next Week)
Existing Home Sales, Gross Domestic Product, Consumer Confidence, Personal Incomes & Spending, Durable Goods, Chicago PMI, New Home Sales
In Earnings News
HJ Heinz (HNZ) said profit for the quarter rose to $276.7 million, or 87 cents per share, from $227 million, or 71 cents per share, a year earlier. Revenue rose 4 percent to $2.61 billion from $2.52 billion. Analysts were expecting a profit of 76 cents per share.
Dell (DELL) earnings dipped to $727 million in the quarter that ended Oct. 31, down from $766 million a year ago. However, earnings per share rose 9 percent to 37 cents, 6 cents better than analysts expected, because of stock buybacks.
AnnTaylor Stores Corp. (ANN) reported a loss in the third quarter due to restructuring charges and a consumer spending drop off. Loss for the quarter ended Nov. 1 totaled $13.4 million, or 24 cents per share. Analysts, on average, expected a profit of a penny per share.
J.M. Smucker Co. (SJM) said its second-quarter profit edged up 3 percent on acquisitions and price increases. Earnings rose to $51.5 million, or 94 cents per share, up from $50.2 million, or 87 cents per share, a year earlier. Analysts predicted a profit of $1.01 per share.
Scheduled Earnings Reports (Next Week)
Hewlett Packard, Analog Devices, Campbell Soup, American Eagle Outfitters, Borders Group, Coldwater Creek, DR Horton, Hormel Foods, Deere & Company, Tiffany
Stocks in the News
Wal-Mart Stores (WMT) says Mike Duke, vice chairman of its international division, will replace Lee Scott as president and chief executive.
Ford Motor Co (F) added 10.3%, even as Democratic leaders said Thursday there is no deal on aid yet for the Big Three U.S. automakers, and asked the chief executives of those companies to return to Congress with concrete plans on how they would use federal funds to turn their companies around.
General Motors (GM) reversed earlier losses on hopes for government support for automakers, but then pared gains after the announcement that no deal was yet in sight. The company still finished 3.2% higher.
Intuit Inc (INTU) said its fiscal first-quarter net loss widened, and it cut its sales and profit guidance for fiscal 2009.
AstraZeneca (AZN) won a temporary restraining order from U.S. District Court for the District of New Jersey halting sales by Teva Pharmaceutical of a generic version of its asthma product.
Salesforce.com (CRM) reported its third-quarter net income rose to $10.1M from $6.5M in the same quarter last year. Revenue increased to $276.5M from $192.8M.
Apple Inc (AAPL) fell below $85 for the first time since January 9, 2007, the day Chief Executive Steve Jobs showed off the first version of the iPhone.
Citigroup Inc. (C) shares traded higher in premarket trading, as the financial giant was said to be looking at selling off pieces of itself -- or the entire company -- to help rebuild investor confidence. The report comes as Citigroup is also said to be a bidder for Chevy Chase Bank, a Maryland-based lender with $11.4 billion in deposits and 292 branches - a deal that could be in jeopardy because of Citigroup's sinking stock price.
Bank of New York Mellon (BK) said it plans to cut 1,800 jobs as falling equity markets reduce the assets it oversees, cutting into potential profit. Assets under custody fell to $22.4 trillion as of Sept 30 from $23 trillion three months earlier, while assets under management fell to $1.07 trillion from $1.11 trillion.
President Bush signed into law a bill that Congress approved to keep unemployment checks flowing to jobless Americans through the holiday season. Bush signed the bill at just before departing for Lima, Peru, to attend the 21-nation Asia-Pacific Economic Cooperation forum.
Freddie Mac (FRE) said in a regulatory filing that it has been told by the New York Stock Exchange that it has failed to meet one of the NYSE's standards for continued listing of its stock. Freddie's shares over a consecutive 30-trading-day period have closed at below $1. It added that it is working with the Federal Housing Finance Agency to explore its options. Fannie Mae (FNM) received a similar warning from NYSE on Nov. 18th.
Honda Motor Corp. (HMC) announced it will cut production in Japan and Europe by 61,000 vehicles, as it continues to grapple with slowing global demand. The latest cut means Japan's second-largest automaker will reduce annual production by more than 140,000 vehicles worldwide.
Eli Lilly and Company (LLY) said it has successfully completed its tender offer for ImClone Systems (IMCL) for $70 a share in cash. As of the tender's expiration at midnight, Nov. 20, about 95.5% of ImClone's shares were validly tendered and not withdrawn. Lilly says it plans to complete the deal through a short-form merger on or about Nov. 24th.
According to the Air Transport Association, domestic air passenger yield, or the average price a person pays to fly one mile, increased 7.4% in October from a year earlier, rising to 15.8 cents. Data showed yield growth slowed from September, when it rose 12.5% on year to 16.1 cents. Yields exclude government taxes and fees, which often constitute a substantial portion of an airline ticket.
Scheduled U.S. Economic Reports (Next Week)
Existing Home Sales, Gross Domestic Product, Consumer Confidence, Personal Incomes & Spending, Durable Goods, Chicago PMI, New Home Sales
In Earnings News
HJ Heinz (HNZ) said profit for the quarter rose to $276.7 million, or 87 cents per share, from $227 million, or 71 cents per share, a year earlier. Revenue rose 4 percent to $2.61 billion from $2.52 billion. Analysts were expecting a profit of 76 cents per share.
Dell (DELL) earnings dipped to $727 million in the quarter that ended Oct. 31, down from $766 million a year ago. However, earnings per share rose 9 percent to 37 cents, 6 cents better than analysts expected, because of stock buybacks.
AnnTaylor Stores Corp. (ANN) reported a loss in the third quarter due to restructuring charges and a consumer spending drop off. Loss for the quarter ended Nov. 1 totaled $13.4 million, or 24 cents per share. Analysts, on average, expected a profit of a penny per share.
J.M. Smucker Co. (SJM) said its second-quarter profit edged up 3 percent on acquisitions and price increases. Earnings rose to $51.5 million, or 94 cents per share, up from $50.2 million, or 87 cents per share, a year earlier. Analysts predicted a profit of $1.01 per share.
Scheduled Earnings Reports (Next Week)
Hewlett Packard, Analog Devices, Campbell Soup, American Eagle Outfitters, Borders Group, Coldwater Creek, DR Horton, Hormel Foods, Deere & Company, Tiffany
Stocks in the News
Wal-Mart Stores (WMT) says Mike Duke, vice chairman of its international division, will replace Lee Scott as president and chief executive.
Ford Motor Co (F) added 10.3%, even as Democratic leaders said Thursday there is no deal on aid yet for the Big Three U.S. automakers, and asked the chief executives of those companies to return to Congress with concrete plans on how they would use federal funds to turn their companies around.
General Motors (GM) reversed earlier losses on hopes for government support for automakers, but then pared gains after the announcement that no deal was yet in sight. The company still finished 3.2% higher.
Intuit Inc (INTU) said its fiscal first-quarter net loss widened, and it cut its sales and profit guidance for fiscal 2009.
AstraZeneca (AZN) won a temporary restraining order from U.S. District Court for the District of New Jersey halting sales by Teva Pharmaceutical of a generic version of its asthma product.
Salesforce.com (CRM) reported its third-quarter net income rose to $10.1M from $6.5M in the same quarter last year. Revenue increased to $276.5M from $192.8M.
Apple Inc (AAPL) fell below $85 for the first time since January 9, 2007, the day Chief Executive Steve Jobs showed off the first version of the iPhone.
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