Wall St. Breakfast's Pre-Market Snapshot:
U.S. Futures As of 8:45 AM EST
S&P 500: -2.20; 1,450.90
NASDAQ 100: -1.75; 1,805.50
Dow: -14.00; 12,675.00
NIKKEI 225: -1.15%; 17,344.80 (-202.31)
HANG SENG: -0.53%; 20,455.62 (-108.06)
S&P/ASX 200: -0.16%; 5,822.10 (-9.40)
BSE SENSEX 30: +0.78%; 14,515.90 (+112.13)
FTSE 100: +0.09%; 6,316.30 (+5.40)
CAC 40: +0.07%; 5,681.08 (+3.78)
XETRA-DAX: -0.16%; 6,874.92 (-10.84)
Commodity Futures (Reuters/Jefferies CRB)
Oil: +0.41%; $59.26 (+$0.24)
Gold: +0.43%; $654.30 (+$2.80)
Natural Gas: +6.85%; $7.99 (+$0.51)
Silver: +0.52%; $13.445 (+$0.07)
U.S. Breaking News — see today's Wall Street Breakfast for earlier news
• KLA-Tencor Trading Higher As Earnings, Revenue Rise
KLA-Tencor Corp. reported FY2Q07 net earnings and revenue that rose versus the year-earlier period but failed to reach the levels analysts were expecting. By the numbers, KLA pulled in a quarterly profit of $90 million, good for EPS of $0.44, versus EPS of $0.38 during the year earlier period on profits of $76.6 million. Revenue rose to $649.3 million from $487.7 million a year earlier. Average Thomson estimates were for EPS of $0.71 on revenue of $663.1 million. Despite the miss, shares are up $1.20, 0r 2.40%, to $51.20 in pre-market action since the earnings and revenue miss was largely the result of pre-tax payments of $117 million for the quarter due to asset writedowns, acquisitions, net stock-based compensation and restatement activities.
• Sources: KLAC F2Q07 Conference Call (available later), Press Release, TheStreet.com, Reuters, MarketWatch
• Commentary: Semiconductor Equipment Companies Suffer, Push Out Worries • Intel's Focus on 45 nm: KLA, MEMC and Novellus To Benefit • Don't Hold Your Breath Waiting for Semi Equipment Orders to Resume
• Stocks and ETFs to watch: KLA-Tencor Corporation (KLAC). Competitors: Applied Materials (AMAT). ETFs: Semiconductor HOLDRs (SMH), iShares Goldman Sachs Semiconductor (IGW), SPDR Semiconductor (XSD), Technology Select Sector SPDR (XLK)
• State Street to Buy Investors Financial for $4.5b in Stock, A 38% Premium
State Street Corp, the world's #3 asset manager, announced this morning it has signed a definitive agreement to buy Investors Financial Services Corp. for about $4.5 billion in stock. Investors Financial shareholders will receive 0.9-share of State Street stock for each of their shares based on Friday's State Street close of $71.75, an $18.05 (38%) premium over its $46.95 closing price. The merger would put more than $14 trillion under State Street custody, up from its present $12t. State Street said that pending the deal it would become "the leading investment-service provider to the offshore and hedge-fund industries and gain capabilities for servicing the growing private-equity fund market." Both companies focus on meeting the needs of institutional investors with hedge/mutual fund services, securities finance, and cash and transition management, and both operate out of Boston, MA. IFIN shares are up $15.05, and STT shares are down $3.70 in pre-market trading.
Sources: Press Release, MarketWatch, Bloomberg
Commentary: State Street will hold a investor conference call at 9:00 EST. • Seeking Alpha coverage of Mergers & Acquisitions
Stocks/ETFs to watch: State Street Corp (STT), Investors Financial Services Corp. (IFIN). Competitors: Mellon Financial Corp. (MEL), Merrill Lynch & Co. Inc. (MER), Bank of New York Company Inc. (BK), JPMorgan & Chase Co. (JPM), Wachovia Corp. (WB), Citigroup Inc. (C), Bank of America Corp. (BAC). ETFs: PowerShares Dynamic Banking (PJB), streetTRACKS KBW Bank (KBE), PowerShares Dynamic Financial (PFI), PowerShares Financial ETF (PRFF), Financial Select Sector SPDR ETF (XLF)
Seeking Alpha's news summaries are combined into a pre-market briefing called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only a few seconds to sign up.
Asian Headlines (via Bloomberg.com)
• Asian Stocks Slide, Led by Toyota on Concern Yen Will Gain; China Drops Asian stocks fell from a nine-month high, led by Toyota Motor Corp. (TM) on speculation the Group of Seven nations will press for a stronger yen, eroding the value of sales at exporters. China's shares extended a week-long slump.
• Hyundai Motor Chairman Chung Sentenced to Three Years for Embezzling Funds Hyundai Motor Co. Chairman Chung Mong Koo was sentenced to three years in prison for embezzling funds that were used for illegal political donations, hindering his ambition to build the world's fifth-biggest carmaking group.
• Woodside Plans 2007 Budget Cutbacks to Plug Revenue Shortfall, Voelte Says Woodside Petroleum Ltd. (WOPEY.PK) will lower its 2007 spending budget as revenue may fall more than A$500 million ($387 million) short of target because of lower-than-forecast output, Chief Executive Officer Don Voelte said.
• Nissan Shares Fall Most in Five Years as Ghosn Predicts First Profit Drop Shares of Nissan Motor Co. (NSANY) fell the most in more than five years after Chief Executive Officer Carlos Ghosn predicted the first decline in earnings since he took over running the company in 2000.
European Headlines (via Bloomberg.com)
• European Stocks Fail to Extend Rally; Faurecia Shares Decline, BP Advances European stocks failed to extend last week's rally before GlaxoSmithKline Plc (GSK), the region's biggest drugmaker, and ABN Amro Holding NV (ABN), the largest Dutch bank, report earnings this week.
• Barratt Developments to Acquire Homebuilder Wilson Bowden for $4.3 Billion Barratt Developments Plc, the U.K.'s largest homebuilder, agreed to buy Wilson Bowden Plc for 2.2 billion pounds ($4.32 billion) in the biggest-ever takeover of a British housing developer.
• London's `Gherkin' Skyscraper Sold to IVG, Evans Randall for $1.2 Billion The London office tower dubbed ``the Gherkin'' was sold to IVG Immobilien AG and Evans Randall Investment Management Ltd. for 600 million pounds ($1.2 billion), a record for a building in the city's main financial district.
• Services Growth in Europe Unexpectedly Accelerated in January, PMI Shows Expansion in European service industries, the biggest part of the economy, unexpectedly accelerated in January after unemployment fell to the lowest on record.