04:49 PM
Despite the Thanksgiving holiday, next week is stuffed with data, especially housing (existing home sales - boosted by a tax credit - expected +2.3%; new-home sales expected -1.7%; Case-Shiller prices expected -9.3% for year ending in September) and a pair of consumer-confidence readings on Tuesday and Wednesday.
1 Comment
04:34 PMBonds - $4B in bonds. Suitors including News Corp. (NWS), Time Warner (TWX), Sony (SNE) and Qualia Capital are beginning to circle around the MGM film studio - owner of the "James Bond 007" franchise as well as a 4,100-film library - which considers a sale among its options to get out from under $4B in debt.
2 Comments
04:19 PMUPS says that on Jan. 4 it will raise rates on ground packages by about 4.9%, and hike rates a net 4.9% on air express and international shipments originating in the U.S.
2 Comments
04:12 PM
Hershey Trust (HSY) pushing for a $17B bid for Cadbury (CBY) - which would top Kraft's (KFT) $16.7B offer and include more cash. CBY up 1.4% AH. (WSJ)
1 Comment
04:10 PM
A mixed week for indexes overall, as technology stocks weigh down Nasdaq and the Dow leaves behind fellows to log a small gain. For the week: the DJIA up 0.5%; S&P 500 down 0.2%; Nasdaq down 1%.
1 Comment
04:03 PM
Treasurys were flat to lower, and the dollar index had its first weekly gain in the past three. The 30-year Tsy future flat, 10-year -0.10%, 5-year -0.06%. Dollar +0.4% against euro, +1% against pound, +0.4% against Swiss franc, flat against yen.
1 Comment
04:02 PM
Last-minute buying couldn't quite lift the Dow into positive ground. At closing, the DJIA -0.14% (-1428) to 10,318.16; S&P 500 -0.32% (-3.53) to 1,091.38; Nasdaq -0.5% (-10.78) to 2,146.04. Crude -0.6% to $77. Gold touching new highs, +0.8% to $1,150.50.
1 Comment
03:39 PM
Yields on three-month T-bills are back at 0.005% after spending part of Thursday and Friday in negative territory - considered extreme risk aversion, where institutional investors are paying the government just to safely hold their money - but John Jansen says compared with last fall, this time negative rates are just a technical phenomenon.
4 Comments
03:27 PM
Boeing's (BA) incentives for building its 787 Dreamliner plant in South Carolina could go from $250M up to a little over $400M, "depending on how you cut the apple," says Governor Mark Sanford. The facility will be Boeing's first outside Washington state, and the company has about 840 orders for the new plane.
6 Comments
03:18 PM
Dow leaders: MRK +3.5%. PFE +1.4%. KO +1.1%. MCD +1%. Dow laggards: CSCO -1.4%. GE -1.3%. CAT -1.3%. MMM -1.2%. AA -1.1%.
1 Comment
03:06 PM
Stocks cut losses and the Dow nearly moved into positive territory before retreating again, but it's an open question whether equities are headed for their first down week of the month. With an hour to go, the Dow -0.2% to 10,308; S&P 500 -0.4% to 1,090; Nasdaq -0.6% to 2,143. Crude -0.8%. Natural gas +2.1%. Gold +0.7%, on the cusp of $1,150.
1 Comment
02:52 PM
To settle credit-default swaps, derivatives traders have set a value of 68.125 cents on the dollar for CIT Group (CIT) bonds. The price fell from 70.25 cents after the first round of a 13-dealer auction.
4 Comments
02:37 PM
If you accept that the crisis is over and we're on the road to recovery, what, Paul Vigna asks, has Tim Geithner specifically contributed? Aside from stress tests and the PPIP: a whitewash and an awful idea respectively.
7 Comments
02:20 PM
Moody's threatens New York state's Aa3 credit rating if it doesn't cut spending to address a $3.2B deficit. The rating is stable for now, assuming cuts go through and that revenue from Wall Street bonuses exceed the state's projections.
5 Comments
02:07 PM
Barnes & Noble (BKS -1.8%) sells out its first run of Nook e-readers, and won't ship more until after the New Year. With e-reader supply issues at Sony (SNE) as well, Amazon.com (AMZN) may have a bigger opening for Christmas Kindle sales.
1 Comment
01:50 PM
Banking analyst Dick Bove thinks the best man to run Bank of America (BAC) is the one leaving - Ken Lewis - and now, Bove thinks it could happen: "There is a real effort to get him back ... Every major institution I spoke with that owns a position in Bank of America thinks he should be back.”
2 Comments
01:40 PM
Of four issues debuting today, 7 Days Group Holdings (SVN +14.1%) and Archipelago Learning (ARCL +16%) are the stars, with double-digit gains. Global Defense Technology & Systems (GTEC +0.1%) was up slightly, and Rio Tinto coal spinoff Cloud Peak (CLD) - after pricing below expectations - was suffering with the rest of the energy sector, down 2.3%.
2 Comments
01:12 PM
Treasurys are flat and the dollar gave back some gains: +0.5% against euro, +1.1% against pound, +0.6% against Swiss franc, +0.5% against Aussie dollar, flat against yen.
1 Comment
01:05 PM
Stocks have settled into a negative range along intraday lows, with broad losses, but energy (XOM, SLB, COP, NE) is a real drag on issues today. At midday, the Dow -0.5% to 10,285; S&P 500 -0.6% to 1,088; Nasdaq -0.8% to 2,140. Crude -0.7%, back under $77. Gold +0.2%.
1 Comment
12:53 PM
The Fed is reportedly scrutinizing the biggest banks to ensure they have enough capital to withstand a sudden reversal in asset prices. Supervisors want to know what banks know about the strength of their counterparties, and whether risk managers have any say in bank policies.
7 Comments
12:42 PMThe Economistexplains why Beijing will likely continue to lend a deaf ear to calls to free the yuan ("indeed, China is more likely to change its policy if foreign policymakers shut up"), and what it is that will move China to bite the bullet.
3 Comments
12:19 PM
The European Central Bank follows up talk with action, taking a first step into unwinding stimulus measures by tightening rules for accepting asset-backed securities as collateral. President Jean-Claude Trichet has indicated the bank won't renew its 12-month auctions of unlimited cash after a third tranche next month.
2 Comments
12:08 PM
More developments in fertilizer's three-way "forever war": Terra Industries (TRA +2.8%) investors elect a slate of three directors backed by CF Industries Holdings (CF -0.5%), potentially adding momentum to CF's 2009 campaign to buy Terra. And Agrium (AGU -0.1%) says holders of 62% of CF's shares support its hostile bid for CF - the same number as earlier this year with a $5/share lower offer.
2 Comments
11:55 AM
Harvard professor Brandon Adams says some of the best potential traders are professional poker players: "They’re used to skirting the edge of ruin and they learn the tools of how to do that." If so, maybe Wall Street recruiters should be looking here and here.
12 Comments
11:45 AM
Unemployment was up in 29 states in October, with California, Delaware, South Carolina and Florida reaching record levels. Fourteen states are in double digits, and Michigan still leads the nation with 15.1%, followed by Nevada at 13% and Rhode Island at 12.9%.
8 Comments
11:32 AM
Asset bubble warning watch: Nouriel Roubini says "there is the beginning of a bubble" and that part of a 70% jump in crude prices this year is speculative, "money chasing commodities." And Hong Kong central bank chief Norman Chan says with abundant liquidity, they face the risk that assets will become more disconnected from fundamentals.
8 Comments
11:21 AM
Oprah Winfrey announces an end to her syndicated talk show in 2011, a blow to the syndicated market, to distributor CBS (CBS -3.2%) - and to local TV stations, already struggling with an advertising downturn. Winfrey will focus on the cable channel she's launching with Discovery Communications (DISCA).
3 Comments
11:08 AM
Dr Pepper Snapple (DPS) spiking up 2% on news it's declaring its first dividend - $0.15/share quarterly - and authorizing repurchase of up to $200M in common stock over three years. President and CEO Larry Young: "We believe the time is right to initiate a cash return program to our shareholders." (PR)
1 Comment
10:53 AM
Dow leaders: MRK +2.5%. PFE +1.6%. KFT +1.1%. JNJ +0.8%. Dow laggards: CAT -2.1%. AA -2%. GE -1.5%. CSCO -1.3%.
Comment!
10:49 AM
Morgan Stanley (MS) wraps up a disaster, surrendering Crescent Real Estate Equities - which it bought at the top of the market for $6.5B - to Barclays Capital (BCS). Morgan got the 17M square feet of office towers, resorts and hotels in 2007 with a $2B loan from Barclays that comes due today. MS has already taken $951M in writedowns and other losses from Crescent.
Comment!
10:41 AM
Treasurys are slightly down, with the 30-year -0.16% to 120-20, and the 2-year yield sitting at a 2009 low of 0.71%. Euro -0.5% against dollar, pound -0.9%, Swiss franc -0.6%.
Comment!
10:34 AM
An hour in, stock indexes are jittery with healthcare one of the few strengths. The Dow -0.2% to 10,316; S&P -0.4% to 1,090; Nasdaq -0.7% to 2,142. Crude -1.4%. Gold -0.1%.
Comment!
10:29 AM
Procter & Gamble (PG) has started repurchasing shares and is focusing on organic growth, CFO Jon Moeller said at this morning's Morgan Stanley conference. He didn't address reported talks with Sara Lee (SLE) over acquiring its air-freshener business.
1 Comment
10:13 AM
Chinese officials said on Friday that moves to cautiously tighten the country's loose-money policy would begin at year-end, but added that changes would be small. Separately, Sen. Charles Schumer asked the Commerce Department to launch an investigation on whether the yuan's dollar peg constitutes currency manipulation.
4 Comments
10:01 AMOct. Mass Layoffs: 2,127 mass layoff events (at least 50 workers), resulting in 217K job losses. That's down 434 from September - and down 77 Y/Y.
3 Comments
09:56 AM
Europe's central bank president Jean-Claude Trichet says a gradual withdrawal of liquidity is coming - and banks need to be ready lest they become addicted to cheap cash. "Emergency treatment and strong medicines are sometimes necessary," he told a Frankfurt banking conference. "But, if their use is prolonged, they can lead to dependence and even addiction."
2 Comments
09:47 AM
Valero (VLO) to close its refinery in Delaware City, Del., taking a charge of $1.7B-1.8B, or about $2/share. The refiner will shed about 550 jobs - and operating expenses of some $450M. Shares +1.6% to $16.62.
7 Comments
09:30 AM
At the open: Dow -0.2% to 10,317. S&P 500 -0.3% to 1,091. Nasdaq -0.6% to 2,143. Crude -0.8% to $76.83. Gold -0.2% to $1,140.20. The 30-year Tsy flat at 120-26. Euro -0.5% against dollar; pound -1.1%; yen -0.1%.
1 Comment
09:25 AM
Volkswagen (VLKAY.PK) plans capital expenditures of nearly €20B ($29.7B) over the next three years, half of it in Germany, to modernize and expand products. The carmaker, Europe's biggest, expects a capex-to-sales ratio of around 6%.
1 Comment
09:15 AM
Futures indicate a lower start after disappointing numbers from Dell (DELL -7.3% premarket) and a big dip that coincided with an odd spike in dollar index futures. Mass layoffs numbers are coming shortly on a light day for data. Benchmark S&P futures -0.1%.
1 Comment
09:10 AM
Deutsche Bank upgrades Dillard's (DDS) to Buy, seeing improved operating efficiency and noting that the retailer seems to have quietly implemented a list of suggestions by activist investors. Shares +4.8% premarket.
1 Comment
09:04 AM
IntercontinentalExchange cancels dollar index futures trades above 76.50 after a huge 9% spike. It's looking into what caused the jump, which in spot markets is more typically limited to 1%. Dow futures fell by as much as 99 points.
3 Comments
08:54 AM
A quick sale of NBC Universal (GE) to Comcast (CMCSA) is a little further away, as GE and Vivendi (VIVDY.PK) reportedly differ on the value of the latter's stake in the network, by at least $1B. UBS analysts think a compromise is still likely.
1 Comment
08:38 AM
Ferrero and Hershey (HSY) would probably break up Cadbury (CBY) into separate businesses if the takeover bid the two companies are mulling for the U.K. candy maker should succeed. Ferrero is reportedly interested in Cadbury's lucrative candy and gum business.
1 Comment
08:23 AMAnnTaylor (ANN): Q3 EPS of $0.20 beats by $0.13. Revenue of $462M (-12.3%) vs. $474M. Sees Q4 sales slightly below Q3. Shares -3.2% premarket. (PR)
1 Comment
08:20 AM
Deutsche Telekom (DT) is reportedly seeking a partner for T-Mobile, one that could help it finance investments in networks with fast data transfers. MetroPCS (PCS), Clearwire (CLWR) and AT&T (T) are all potential candidates, but the company might also look for a purely financial investor from outside the sector.
1 Comment
08:09 AMFed's balance sheet swells to its largest point since December 2008. Balance sheet liabilities expanded to $2.19T as of Nov. 19, the highest point recorded since liabilities hit $2.25T on Dec. 31, 2008. The Fed's holdings of mortgage-backed securities increased to $847B, from $776B a week earlier, while its agency debt ownership rose to $153B from $150B.
4 Comments
07:57 AM
Some of Goldman Sachs' (GS) largest shareholders are peeved about the $717K-average bonuses the bank's staff are to get this year, and want the bank to disperse more earnings to investors, sources say. Despite record net income, analysts expect Goldman's 2009 earnings per share to be 22% lower than in 2007. A spokesman for the bank pointed out that, since going public in 1999, the company has generated a total return of 159%, while shares have more than doubled YTD.
5 Comments
07:35 AM
Former Fed Chairman Alan Greenspan and Paul Volcker say they're opposed to auditing the Fed, noting the measure would destroy the central bank's independence (.pdf). Fed chief Ben Bernanke told Congress in June that Sen. Ron Paul's provision "would effectively be a takeover of policy by the Congress and would be highly destructive to the stability of the financial system, the dollar and our national economic situation."
10 Comments
07:26 AMJ.M. Smucker Company (SJM): FQ2 EPS of $1.22 beats by $0.18. Revenue of $1.28B in-line. Sees full-year EPS of $3.95-4.05 vs. $3.83 consensus. (PR)
3 Comments
07:15 AMD.R. Horton (DHI): FQ4 EPS of -$0.73 misses by $0.43. Revenue of $1.01B (-34.6%) vs. $1.11B. Backlog of 5,628 homes vs. 5,297 last year. Net sales of 5,008 homes vs. 3,977 last year. (PR)
2 Comments
07:00 AM
Asian markets were mixed Friday, but Europe stocks and U.S. futures have moved lower. Asia: Nikkei -0.5% to 9498. Hang Seng -0.8% to 22456. Shanghai -0.4% to 3308. BSE +1.4% to 17022. Europe at midday: FTSE -0.1% to 5263. CAC -0.2% to 3752. DAX -flat at 5700. Futures: Dow -0.5% to 10280. S&P -0.5% at 1089. Nasdaq -0.4%. Jan. crude -0.6% to $77.57. Gold -0.2% to $1,139.80. Treasurys are moderately higher. Euro -0.4% vs. dollar. Yen +0.4%. Pound -1%.
1 Comment
06:00 AM
Earnings previews for companies reporting before today's open: ANN1 Comment