JDfn Daily Digest - November 5, 2008
The ISM nonmanufacturing index fell to 44.4% from 50.2% in September. The decline was worse than expected. Economists were looking the index to fall to 47.5%. Twelve industries reported decreased activity in October while only four reported gains. Indexes for business activity, new orders and employment fell sharply in the month. The price index also fell sharply.
According to the ADP employment report, companies in the U.S. private sector lost 157,000 jobs in October. The report comes two days before the Labor Department reports on nonfarm payroll growth for October. The report suggests that the job report could be very weak. Analysts note that the ADP has overshot the employment report in each of the past eleven months.
And according to outplacement firm Challenger, Gray & Christmas, job cut announcements by U.S. employers was up 19% from September's job cuts. It was the highest number of pink slips handed out since January 2004.
The government will sell $55 billion in bonds next week as part of a massive borrowing to pay for its financial rescue programs. The Treasury Department says it is bringing back its three-year notes to help cover the increased borrowing needs, and will auction $25 billion of them on Monday.
The Mortgage Bankers Association reported that mortgage applications filed last week fell a seasonally adjusted 20.3% compared with the previous week, as rates on fixed-rate mortgages increased. Compared with the same week in 2007, application volume was down 43.4%.
Boeing Co. (BA) said the first test flight of its long-delayed 787 jetliner has been postponed until next year due to an eight-week strike by union workers. Boeing scheduled the inaugural flight of the next-generation passenger jet -- delayed four times already -- for the fourth quarter of this year.
Delta Air Lines Inc. (DAL) said it would impose a $15 fee to check a first bag, becoming the last of the six legacy airlines to impose such a fee. The carrier also said it is cutting certain other fees as it aligns its policies with those of Northwest Airlines, which it acquired last week.
Scheduled U.S. Economic Reports (Thursday)
Initial Jobless Claims (Week of Oct 31st), Productivity (3Q), Unit Labor Costs (3Q)
In Earnings News
Time Warner Inc. (TWX) reported third-quarter profits that beat Wall Street expectations. Time Warner reported net income of $1.07 billion, or 30 cents a share.
Sara Lee Corp. (SLE) said that profit rose to $230 million, or 32 cents per share, from $200 million, or 28 cents per share, last year. Analysts expected earnings of 23 cents per share.
Medco Health Solutions Inc. (MHS) said its third-quarter profit rose 38 percent. The company earned $295.7 million, or 58 cents per share, in the quarter. Analysts expected a profit of 62 cents per share.
Polo Ralph Lauren Corp. (RL) said profit for the quarter rose to $161 million, or $1.58 per share, from $115.3 million, or $1.09 per share last year. Analysts predicted a profit of $1.25 per share.
Revlon Inc. (REV) reported a third-quarter profit on a one-time gain from the sale of a unit. Revlon, which is controlled by financier Ron Perelman, posted earnings of $29.2 million, or 57 cents per share.
Total SA (TOT) said its net profit rose 7 percent to $4.59 billion in the third quarter thanks to record-high oil prices in the period. Total's adjusted net profit was $6.13 billion, up 48 percent from $4.13 billion a year earlier.
GMAC Financial Services says its third-quarter loss widened to $2.52 billion, pulled down by steep losses at its mortgage division. A year ago, GMAC lost $1.6 billion.
Scheduled Earnings Reports (Thursday)
Disney, Toyota Motor Corp, Barr Pharmaceuticals, Anheuser Busch, Cablevision, DirecTV, Blockbuster, Constellation Energy, Flowers Foods, Qualcomm, Teva Pharmaceuticals, World Wrestling Entertainment, Public Storage
Stocks in the News
MetroPCS Communications (PCS) reported third-quarter net income fell 15% on 23% higher revenue.
Dell Inc (DELL) plans cost cuts beyond those it announced a year ago.
Carlsberg (CABHF) cut its fiscal-year operating profit guidance to 7.9 billion Danish kroner from a previous estimate of 8.1 billion.
Transocean Inc (RIG) third-quarter net income rose to $1.1 billion, or $3.44 a share, from $973 million, or $4.63 a share, in the year-ago period.
KB Home (KBH) cut its quarterly dividend 75% to 6.25 cents a share from 25 cents.
Kaiser Aluminum Corp (KALU) reported a third quarter net loss of $22.1 million, or $1.11 a share, from net income of $24.8 million, or $1.22, in the year-earlier period.
Yamana Gold (AUY) reported third-quarter net income quintupled, and adjusted earnings fell 52%, on 24% higher revenue.
MBIA (MBI) reported its third-quarter loss widened to $806.5 million or $3.48 a share.
Ambac Financial’s (ABK) third-quarter loss widened to $2.43 billion or $8.45 a share, from $360.6 million, or $3.53 a share.
Corn Products International (CPO) said the board plans to reverse course and recommend against the company's acquisition by Bunge Ltd.
ArcelorMittal (MT) third-quarter profit climbed 29% to $3.9 billion, with sales up 38% to $35.2 billion.
Digital Realty Trust (DLR) lifted the quarterly dividend 6.5% to 33 cents a share from 31 cents.
According to the ADP employment report, companies in the U.S. private sector lost 157,000 jobs in October. The report comes two days before the Labor Department reports on nonfarm payroll growth for October. The report suggests that the job report could be very weak. Analysts note that the ADP has overshot the employment report in each of the past eleven months.
And according to outplacement firm Challenger, Gray & Christmas, job cut announcements by U.S. employers was up 19% from September's job cuts. It was the highest number of pink slips handed out since January 2004.
The government will sell $55 billion in bonds next week as part of a massive borrowing to pay for its financial rescue programs. The Treasury Department says it is bringing back its three-year notes to help cover the increased borrowing needs, and will auction $25 billion of them on Monday.
The Mortgage Bankers Association reported that mortgage applications filed last week fell a seasonally adjusted 20.3% compared with the previous week, as rates on fixed-rate mortgages increased. Compared with the same week in 2007, application volume was down 43.4%.
Boeing Co. (BA) said the first test flight of its long-delayed 787 jetliner has been postponed until next year due to an eight-week strike by union workers. Boeing scheduled the inaugural flight of the next-generation passenger jet -- delayed four times already -- for the fourth quarter of this year.
Delta Air Lines Inc. (DAL) said it would impose a $15 fee to check a first bag, becoming the last of the six legacy airlines to impose such a fee. The carrier also said it is cutting certain other fees as it aligns its policies with those of Northwest Airlines, which it acquired last week.
Scheduled U.S. Economic Reports (Thursday)
Initial Jobless Claims (Week of Oct 31st), Productivity (3Q), Unit Labor Costs (3Q)
In Earnings News
Time Warner Inc. (TWX) reported third-quarter profits that beat Wall Street expectations. Time Warner reported net income of $1.07 billion, or 30 cents a share.
Sara Lee Corp. (SLE) said that profit rose to $230 million, or 32 cents per share, from $200 million, or 28 cents per share, last year. Analysts expected earnings of 23 cents per share.
Medco Health Solutions Inc. (MHS) said its third-quarter profit rose 38 percent. The company earned $295.7 million, or 58 cents per share, in the quarter. Analysts expected a profit of 62 cents per share.
Polo Ralph Lauren Corp. (RL) said profit for the quarter rose to $161 million, or $1.58 per share, from $115.3 million, or $1.09 per share last year. Analysts predicted a profit of $1.25 per share.
Revlon Inc. (REV) reported a third-quarter profit on a one-time gain from the sale of a unit. Revlon, which is controlled by financier Ron Perelman, posted earnings of $29.2 million, or 57 cents per share.
Total SA (TOT) said its net profit rose 7 percent to $4.59 billion in the third quarter thanks to record-high oil prices in the period. Total's adjusted net profit was $6.13 billion, up 48 percent from $4.13 billion a year earlier.
GMAC Financial Services says its third-quarter loss widened to $2.52 billion, pulled down by steep losses at its mortgage division. A year ago, GMAC lost $1.6 billion.
Scheduled Earnings Reports (Thursday)
Disney, Toyota Motor Corp, Barr Pharmaceuticals, Anheuser Busch, Cablevision, DirecTV, Blockbuster, Constellation Energy, Flowers Foods, Qualcomm, Teva Pharmaceuticals, World Wrestling Entertainment, Public Storage
Stocks in the News
MetroPCS Communications (PCS) reported third-quarter net income fell 15% on 23% higher revenue.
Dell Inc (DELL) plans cost cuts beyond those it announced a year ago.
Carlsberg (CABHF) cut its fiscal-year operating profit guidance to 7.9 billion Danish kroner from a previous estimate of 8.1 billion.
Transocean Inc (RIG) third-quarter net income rose to $1.1 billion, or $3.44 a share, from $973 million, or $4.63 a share, in the year-ago period.
KB Home (KBH) cut its quarterly dividend 75% to 6.25 cents a share from 25 cents.
Kaiser Aluminum Corp (KALU) reported a third quarter net loss of $22.1 million, or $1.11 a share, from net income of $24.8 million, or $1.22, in the year-earlier period.
Yamana Gold (AUY) reported third-quarter net income quintupled, and adjusted earnings fell 52%, on 24% higher revenue.
MBIA (MBI) reported its third-quarter loss widened to $806.5 million or $3.48 a share.
Ambac Financial’s (ABK) third-quarter loss widened to $2.43 billion or $8.45 a share, from $360.6 million, or $3.53 a share.
Corn Products International (CPO) said the board plans to reverse course and recommend against the company's acquisition by Bunge Ltd.
ArcelorMittal (MT) third-quarter profit climbed 29% to $3.9 billion, with sales up 38% to $35.2 billion.
Digital Realty Trust (DLR) lifted the quarterly dividend 6.5% to 33 cents a share from 31 cents.
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