Futures Point To Flat Open

by: SA Editors
SA Editors
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Wall St. Breakfast's Pre-Market Snapshot:

U.S. Futures As of 8:52 AM EST

S&P 500: +1.00; 1,454.70
NASDAQ 100: +1.75; 1,807.25
Dow: +2.00; 12,705.00

International Indexes

Asia
NIKKEI 225: +0.36%; 17,406.86 (+62.06)
HANG SENG: +0.98%; 20,655.20 (+199.58)
S&P/ASX 200: +0.83%; 5,870.50 (+48.40)
BSE SENSEX 30: -0.26%; 14,478.19 (-37.71)

Europe
FTSE 100: +0.52%; 6,350.80 (+32.90)
CAC 40: +0.22%; 5,693.64 (+12.53)
XETRA-DAX: +0.34%; 6,897.09 (+23.03)

Commodity Futures (Reuters/Jefferies CRB)

Oil: +1.80%; $59.80 (+$1.06)
Gold: +0.87%; $661.80 (+$5.70)
Natural Gas: +1.48%; $7.75 (+$0.11)
Silver: +1.40%; $13.75 (+$0.19)

U.S. Breaking Newssee today's Wall Street Breakfast for earlier news

Tyco Posts Broad Based Q1 Profit Gains

Tyco International, the world's #1 maker of electronic connectors and security systems, said its Q1 2007 earnings from continuing operations was $0.37/share ($742 million), down from $0.39 ($803m) in Q1 2006. Excluding breakup and other one-time costs, its $0.45/share was slightly higher than Tyco International 06 02 2007 Chartconsensus estimates of $0.44. Revenues were up 7.6% to $10.3b. All the company's four main segments -- electronics, fire and safety, healthcare and engineered products -- posted higher profits and revenues. In January Tyco formally filed to split the company into three. Today it said it would spin off its electronics and health-care units early in the second quarter; the dismantling should cost it $1.2-1.6 billion. Tyco said it bought back 22 million shares (1%) in the quarter, for about $659 million. It gave revenue growth guidance of 6% to 7% in Q2. Shares are trading up $0.29 (0.9%) at $33.50 this morning in the pre-market.
Sources: Press Release, MarketWatch, Bloomberg
Commentary: Tyco Shaping Up: Let the Contrarian Investors Rejoice!Tyco: Breaking Up and Taking OffLooking Beyond the Scandal at Tyco
Stocks/ETFs to watch: Tyco International Ltd. (NYSE:TYC). Competitors: Johnson & Johnson (NYSE:JNJ), Molex Inc. (NASDAQ:MOLX), United Technologies Corp. (NYSE:UTX). ETFs: Industrial SPDR ETF (NYSEARCA:XLI), Vanguard Industrials ETF (NYSEARCA:VIS) and iShares Dow Jones US Industrial ETF (NYSEARCA:IYJ) all have more than 3% holdings in TYC

Anadarko Boosts Earnings, Revenue On Canadian Unit Sale

Anadarko Petroleum Corporation said Tuesday morning that its 4Q06 profit more than doubled from the previous year period while revenue climbed 66%.apc Results were largely given a lift by the sale of the company's Canadian subsidiary. By the numbers, net earnings were $1.92 billion, good for EPS of $4.13, versus earnings of $874 million, or $1.87 a share, a year earlier. Revenue rose to $3.18 billion from $1.92 billion during the year earlier period. Analysts polled by Thomson Financial expected earnings of $1.26 a share on revenue of $2.71 billion. These estimates typically exclude items. CapEx was $1.8 billion, up from $1.03 billion a year earlier. Natural-gas sales volumes averaged 2.23 billion cubic feet a day while oil-sales volumes averaged 243,000 barrels a day. The sale of its Canadian operations netted $1.77 billion, or $3.80 a share. Share are higher by $1.22, or 2.84% to $44.17 in pre-market trading. +1.22
• Sources: Press Release, AP, Wall Street Journal, MarketWatch
• Commentary: Chevron, ConocoPhillips & Anadarko Enjoying Positive Momentum, Falling Natural Gas Prices Haven't Affected Stocks (Yet), Anadarko: They've Got It Rigged
• Stocks and ETFs to watch: Anadarko Petroleum Corporation (NYSE:APC). Competitors: Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP), Apache Corp. (NYSE:APA), Halliburton Co. (NYSE:HAL), Devon Energy (NYSE:DVN), BJ Services (BJS), Chesapeake Energy Corp. (NYSE:CHK). ETFs: PowerShares Dynamic Oil & Gas Services (NYSEARCA:PXJ), iShares Dow Jones U.S. Oil & Gas Exploration/Production (IOE), iShares Dow Jones US Oil Equipment Index (NYSEARCA:IEZ), SPDR Oil & Gas Equipment & Services (NYSEARCA:XES), SPDR Oil & Gas Exploration & Production ETF (NYSEARCA:XOP), Oil Service HOLDRs ETF (NYSEARCA:OIH)

Avon Reports Slightly Higher Q4 Net, Beats Street, Trading Higher in Pre-Market

Avon's Q4 net income of $184.1 million, or $0.41/share, was mostly flat compared to its last Q4 profit of $183.2m ($0.40/share), but beat analysts' average estimate of $0.38/share, and was its first profit increase in six quarters. Revenue growth of 9% to $2.62b also beat analysts' estimate of $2.5b. Avon-AVP-1yr-chart-02-05-07 CEO Andrea Jung said restructuring saved Avon $100m in '06 and expects annual savings of $300m by 2009. Avon's shares lost 1.6% to $34.62 in normal trading yesterday, but are trading around $36 in pre-market activity on volume of about 15k shares.
Sources: Press release, Bloomberg, Forbes-AP
Commentary: Avon: A LBO May Not Be Knocking at Its DoorLBO Fever -- Barron's Looks at Who May Be NextAvon Earnings Conference Call Transcript (later today)
Stocks/ETFs to watch: Avon (NYSE:AVP). Competitors: Estee Lauder (NYSE:EL), Inter Parfums (NASDAQ:IPAR), L'OREAL (OTCPK:LRLCY), Procter & Gamble (NYSE:PG), Revlon (NYSE:REV)

IAC/Interactive Beats Street on Strong Unit Integration

Internet and media company IAC/InterActiveCorp said this morning Q4 2006 profits fell 98% to $0.01/share ($2.69m) down from $0.35 ($119.5m) in Q4 2005. The drop was mainly due to its write down of the value of its entertainment coupon division. Excluding the writedown and other expenses, profits IAC Interactive 06 02 2007 Chartfrom continuing operations were $0.67, handily beating analyst consensus estimates of $0.52. Sales revenues were up 7.8% to $1.82 billion; its Ticketmaster division increased international sales, and its Ask.com search tool saw increases in both the number of queries and revenue per query -- as well as steering customers to other units such as Match.com and HSN. Bristlecone Value Partners Howard Deshong: "In the past, each of their businesses had operated separately without many synergies and resource sharing... the acquisition of Ask.com really provided them with an opportunity to change that." Shares climbed yesterday from $38.45 to close at $39.27 ahead of earnings.
Sources: Press Release, Bloomberg, MarketWatch
Commentary: Making the Match: Trends in Online Dating SitesAsk.com: The Little Search Engine That Could (Topple Google?)IAC Interactive Earnings Conference Call Transcript (later today)
Stocks/ETFs to watch: IAC/InterActiveCorp (IACI). Competitors: Google Inc. (NASDAQ:GOOG), Yahoo! Inc. (NASDAQ:YHOO), Time Warner Inc. (NYSE:TWX), Microsoft Corp. (NASDAQ:MSFT)

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Asian Headlines (via Bloomberg.com)

Asian Stocks Approach Record on Earnings Outlook; Toyota Gains on Profit Asian stocks approached a record after Nikon Corp. and Olympus Corp. raised profit forecasts, and Toyota Motor Corp. (NYSE:TM) posted earnings that beat analyst estimates.

Indonesia Cuts Benchmark Interest Rate to 17-Month Low as Inflation Slows Indonesia's central bank said it has less scope for further interest rate cuts this year, after reducing borrowing costs to a 17-month low, on concern inflation may accelerate.

Bank of Japan Rate-Increase Prospects Revived on U.S. Services Data, Oil Investors increased bets the Bank of Japan will raise interest rates this month after the U.S. economy expanded and oil rose, easing concern that Japan's consumer prices will fall.

Japan's Broadest Measure of Economic Activity Suggests Growth May Falter Japan's broadest index of future economic activity signaled for a second month that growth may slow in the world's second-largest economy.

European Headlines (via Bloomberg.com)

European Stocks Rise, Led by Tesco, ING, Lloyds TSB on Upgrades; KPN Falls European stocks rose for a fourth day after brokers recommended buying shares of banks and UBS AG raised its price estimate for Tesco Plc and William Morrison Supermarkets Plc.

IG Metall Demands 6.5 Percent Pay Increase as German Union Ignores ECB IG Metall, Germany's biggest labor union, demanded a 6.5 percent pay increase for its members this year, defying the European Central Bank's calls for wage restraint and threatening to stoke inflation.

New Star Money Manager Alan Miller Leaves Company Following Sabbatical New Star Asset Management Group Plc's Alan Miller, who as chief investment officer helped draw 21 billion pounds ($41.2 billion) of assets since the company's creation about six years ago, is leaving following a sabbatical.

German Factory Orders Unexpectedly Fell in December, Led by Consumer Goods German manufacturing orders unexpectedly fell in December after demand from abroad for consumer goods such as refrigerators and television sets dropped.