JDfn Daily Digest - November 4, 2008

The Commerce Department reported factory orders fell 2.5% in September, much weaker than the 0.2% fall expected by economists. Orders fell 4.3% in August, the biggest drop in almost two years. Orders for durable goods increased a revised 0.9% in September, up slightly from 0.8% estimated a week ago.

U.S. retail chains may report some of their worst monthly sales results this week as the global financial crisis leaves its mark on ordinary consumers, casting new doubt on holiday season sales. Department stores and specialty retailers are expected to be the worst hit. Consumers who are already under pressure from high food and fuel prices and a crumbling housing market found themselves in an even worse off in October.

Hartford Financial Services Group Inc. (HIG) said it plans to cut 500 jobs, or about 2 percent, of its total work force this month, citing losses in its investment portfolios and declining revenue.

Gasoline prices sank overnight to their lowest levels in more than 20 months. According to the survey released by motorist group AAA, the average price of unleaded regular gas dropped 2.4 cents to $2.391 a gallon. The last time gas was this low was Feb. 28, 2007.

Southwest Airlines (LUV) said that traffic in October rose 2.9% to 6.2 billion revenue passenger miles, while capacity increased 2.9% to 8.8 billion available seat miles, compared with the same month a year ago.

Scheduled U.S. Economic Reports (Wednesday)

ADP Employment Index (Oct), ISM Services Index (Oct)

In Earnings News

Tenet Healthcare (THC) earned $104 million, or 22 cents per share, after a loss of $59 million, or 12 cents per share, a year earlier. Revenue rose 6 percent to $2.16 billion. Analysts surveyed expected a loss of 3 cents per share.

Dean Foods Co. (DF) said its third-quarter profit rose sharply. Dean said its profit rose to $37.8 million, or 25 cents per share. Analysts predicted a profit of 31 cents per share.

Archer Daniels Midland Co. (ADM) said its fiscal first-quarter earnings more than doubled. The company said its profit rose to $1.05 billion, or $1.63 per share. The result beat the 69 cents per share expected by analysts.

Viacom Inc (VIA) third-quarter net income fell 37% from with a year-ago quarter that included proceeds from the movie blockbuster "Transformers" and the impact of the financial meltdown on its advertising sales.

Principle Financial Group (PFG) third-quarter net income came in at $98.3 million, down 59% from a year earlier when the 401k specialist made $240.5 million. Net income available to common stockholders was 35 cents a share. Operating earnings, which exclude net realized investment gains and losses, were 96 cents a share.

BMW abandoned its 2008 earnings forecast and cut production after a 60-percent plunge in quarterly profit that underscored slowing sales in the troubled autos industry. BMW fell well short of analysts' expectations for the quarter, with earnings down 60 percent to 387 million Euros ($498.4 million).

Scheduled Earnings Reports (Wednesday)

News Corp, Cisco Systems, El Paso Electric, Hertz Global, Cox Radio, Gaylord Entertainment, Churchill Downs, HealthSouth, Total SA, Polo Ralph Lauren, Henry Schein, Time Warner, Whole Foods Market

Stocks in the News

Google (GOOG) and Yahoo (YHOO) have revised a search advertising deal struck earlier this year in an effort to get it past federal regulators.

MasterCard Inc (MA) reported a third-quarter net loss of $194 million, or $1.49 a share.

Nokia Corp (NOK) plans to reorganize its sales and marketing activities and its research center.

Guidance Software (GUID) received and rejected a $4.50-a-share takeover proposal from Access Data Corp.

Toyota Motor Corp (TM) downgraded its U.S. sales outlook for the year ending March 31st to 2.2 million to 2.3 million units.

Marvell Technology (MRVL) lowered its third-quarter revenue outlook, saying the global economic slowdown has "significantly" hurt business.

W&T Offshore Inc (WTI) third-quarter earnings doubled to $78.2 million or $1.03 a share.

Church & Dwight (CHD) third-quarter net income fell to $49 million or 69 cents a share, from $51.7 million, or 75 cents a share.

Anadarko Petroleum (APC) third-quarter profit rose to $2.17 billion, or $4.62 a share.

Emerson (EMR) fiscal fourth-quarter net income increased to $688 million or 88 cents a share.

Royal Bank of Scotland Group PLC (RBS) said it could experience its first annual loss this year after it announced more writedown’s on bad assets in the third quarter.