Good morning. Happy Wednesday. Happy Fed Day.
Today at 2:15 pm EST the FOMC will announce their overnight and discount rate targets. Normally this is a market-moving news item, but today’s meeting should be meaningless and irrelevant. They’ve already targeted overnight rates in the 0.00-0.25% range, so unless they say something like: “the credit markets are thawing,” we don’t expect today’s news to have an impact.
The Asian/Pacific markets closed mostly up. Seoul rallied almost 6%, Singapore almost 5%, India almost 3%, and Australia more than 1%. China remains closed.
Europe is currently up across the board. Austria, France, Germany and Spain are up more than 3%. Amsterdam, Italy, Stockholm and London up more than 2%. Belgium, Norway and Switzerland up more than 1%.
Futures here in the States indicate a large gap up for the cash market. 35 minutes before the open, Nas 100 futures are up 26 (2.2%) to trade at 1211.50 while SPX futures are up 20.75 (2.5%) to trade at 860.00.
Banks stocks worldwide are up big on news from the Obama administration may set up a so-called bad bank in an attempt to spur lending by absorbing toxic assets.
SAP (SAP), the world’s largest maker of business management software, reported Q4 net income of 850 million euros, topping analysts’ estimates of 746.5 million euros and the company said it will slash 3,000 jobs and freeze salaries to cut costs.
In Asia, the world’s largest makers of computer memory chips, Samsung and Hynix Semiconductor, rallied 11% and 15% respectively on analyst expectations that an industry wide glut of memory chips will ease after rival Qimonda AG filed for bankruptcy.
Yahoo! (YHOO) is 4.6% higher in European trading today after reporting late yesterday that Q4 profit was 18 cents a share, 1 cent higher than estimates, and that Q1 revenue will be no less than $1.53 billion, well ahead of analysts’ estimates of $1.30 billion.
Boeing Co. (BA), the world’s second-largest airplane maker, said Wednesday it swung to a fourth-quarter loss as a strike and production problems hurt results, but it forecast higher earnings and revenue for 2009.
AT&T (T) says its earnings fell 23.6 percent in the fourth quarter, narrowly missing analyst estimates, as rising costs offset strong performance in the wireless business.
Panasonic Corp. said Wednesday it will cut 560 jobs in Asia due to the closure of two plants in the region, while declining to confirm a report saying the Japanese electronics giant will likely suffer its first net loss in six years.
AirTran Holdings Inc. (AAI), parent of discount carrier AirTran Airways, said Wednesday its fourth-quarter loss widened to $118.4 million, as it took a hit from bad bets on fuel hedges. It also posted a loss for 2008, its first annual loss since 1999.
Drugmaker Novartis AG (NVS) reported a 62 percent rise in fourth quarter net profit Wednesday, helped by steady sales growth and the absence of the restructuring charges that hindered the previous year’s results.
Wells Fargo (WFC) says it swung to a loss in the fourth quarter as it took significant charges related to its purchase of Wachovia.
General Dynamics Corp. (GD) says its fourth-quarter earnings jumped nearly 6 percent as higher profits in business jet and shipbuilding units outweighed an earnings drop in the company’s division that makes armored vehicles and tanks for the military.
Health insurer WellPoint Inc. (WLP) said Wednesday its fourth-quarter profit dropped 61 percent due to a large loss on investments and as growing unemployment reduced the number of workers on its membership rolls.
Amid a tough economy, apparel retailer Eddie Bauer Holdings Inc. (EBHI) said it will reduce the size of its board and “significantly reduce” compensation for board members in an effort to cut costs.
Medical-device maker Becton Dickinson and Co. (BDX) on Wednesday raised its fiscal 2009 guidance citing strong fiscal first-quarter results.
CV Therapeutics Inc. (CVTX) said Wednesday it is reviewing a buyout offer from partner Astellas Pharma Inc., which it had initially rejected.
OMV Petrom, Romania’s largest oil company, will lay off about 10 percent of its employees, officials said Wednesday.
Spices and seasonings company McCormick & Co. (MCK) said Wednesday 4Q earnings slip 6 percent on impairment and restructuring charges and it expects to face challenges in 2009 amid a weak economy and unfavorable exchange rates and predicted yearly sales below Wall Street expectations.
Legg Mason Inc. (LM) on Wednesday posted a worse-than-expected fiscal third-quarter loss, reversing a tiny profit from a year ago, as revenue tumbled and the asset manager recorded a massive charge related to the market meltdown.
Japan’s No. 1 chipmaker, Toshiba Corp. , will shut down several semiconductor plants at home to cope with a plunge in global demand for electronics goods, a report said Wednesday.
Health care products company Covidien Ltd. (COV) said Wednesday that its board approved the repurchase up to $300 million of the company’s common stock and a 16 cent cash dividend.
Praxair Inc. (PX) said Wednesday that its fourth-quarter profit slipped 37 percent, weighed down by a hefty cost cutting-related charge and declining volumes in a weakened economy…and anticipates 1st-quarter earnings in range of Wall Street’s expectations.
Tyco Electronics Ltd. (TYC), which makes electronic components, undersea telecommunications systems and wireless equipment, posted a Q1 loss on slowing demand and said that it expects fiscal second-quarter adjusted earnings and revenue below prior-year results.
Major Japanese bank Sumitomo Mitsui Financial Group Inc. said Wednesday its net profit for the April-December period tumbled nearly 74 percent due to bad loans and stock losses.
MeadWestvaco Corp. (MWV) swung to a $16 million fourth-quarter loss Wednesday as the paper-and-plastic products maker said it struggled with rising raw materials prices and falling demand.
Advantest (ATE), the maker of testing equipment for use in the semiconductor industry, posted a net loss for the recent quarter of 7.8 billion yen ($87.5 million), compared with a 3-billion-yen profit a year earlier.
Altera (ALTR) reported fourth-quarter net income of $83 million, or 28 cents a share, compared with $65.5 million, or 20 cents a share, for the year-earlier period.
Baker Hughes (BHI), the Houston energy-services giant, reported fourth-quarter net income rose 7.7% on 16% higher revenue. “Looking forward, the outlook for 2009 has continued to deteriorate,” said Chairman, President and Chief Executive Chad C. Deaton
Boston Scientific (BSX) and Medtronic (MDT) said they have settled two intellectual property lawsuits and agreed to stand down on three others.
Canon (CAJ) net income for the October-to-December period fell 91% from a year earlier and the maker of cameras, office equipment and precision electronics offered a negative outlook for its electronics business for the current year.
Dover (DOV) fourth-quarter net income fell 35%
E-Trade Financial (ETFC) reported a quarterly net loss as the discount brokerage and banking company set aside more money to cover losses in its loan portfolios.
McClathy (MNI), the Sacramento, Calif., newspaper publisher, said late on Tuesday it would pay its first-quarter dividend and then suspend payouts indefinitely to conserve cash to pay down debt.
Molex (MOLX) swung to a fiscal second-quarter net loss of $87.2 million, or 50 cents a share, compared with earnings of $59.2 million, or 33 cents a share, in the year earlier quarter.
Norfolk Southern (NSC) reported fourth-quarter net income rose to $452 million, or $1.21 a share, from $399 million, or $1.02, in the year-earlier period.
C.H. Robinson (CHRW) reported fourth-quarter profit of $88.9 million, or 52 cents a share, up from $85.3 million, or 49 cents a share, a year earlier.
STMicorelectronics (STM) swung to a fourth-quarter net loss of $366 million, or 42 cents a share, from net income of $20 million, or 2 cents a share, in the year-earlier period.
Stryker (SYK) reported fourth-quarter net income rose to $277.7 million, or 69 cents a share, up from $276.1 million, or 66 cents, in the year earlier.
Sun Microsystems (JAVA) reported a fiscal second-quarter loss of $209 million, or 28 cents a share, compared with earnings of $260 million, or 31 cents a share, in the year earlier quarter.
Target (TGT) will reduce workforce at its headquarters locations by about 9%, including about 600 employees and 400 open positions.
Washington Post (WPO), the Washington media company, priced $400 million of 10-year fixed-rate notes at a coupon of 7.25%.
Gold is down 0.66% and Silver is down 0.17%.
Crude Oil is up 3 cents and trading at 41.61.
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| UPGRADES |
CLX, FCX, TC, LINTA, STJ, GPC, VPRT, PTI, MCHP, LYG, BBY, QCOM |
| DOWNGRADES | CNB, QCOM, AMLN, SPWRA, CNB, AEP, HST, SLT, BTU, CIEN, GFA, MXIM, XOM, CNW, KRC, CRS, CNC |
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| EARNINGS | |
| before the open | AMG, AAI, ARLP, APU, ASH, T, BHI, BDX, BA, CETV, CXG, COP, GLW, CFR, DOV, DEP, BEN, GD, HES, HUB.B, KNSY, LAZ, LCRY, LM, MPX, MKC, MWV, NYT, NVS, PFE, PM, PJC, PX, RGS, ROH, RES, SAP, SO, SWK, SY, TDW, TEL, UGI, USG, WLP, WFC, WTNY, WRLD |
| during trading | BOKF, EGN, SUSQ |
| after the close | ADPT, AFFX, ARG, ALGN, ALL, AMP, AVCT, BXP, BSX, CBT, CAI, CAVM, CLS, CRUS, CTXS, CNS, CPWR, CVD, CTS, DST, DNB, EXTR, FIC, FLEX, FORM, FBN, GMCR, HBI, HMX, HOKU, ISIL, KEX, KFN, KNX, LRCX, LSTR, LSI, MTW, MLNX, MTH, MEOH, MUR, OTEX, OI, PLXS, PSSI, PHM, QCOM, RHI, RYL, SIGI, SHOR, SSCC, STLY, SBUX, SRDX, SYMC, TER, TTEK, TLGD, TSCO, TBI, VIRL, WDC |
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ECONOMIC RELEASES
10:35 Crude Inventories
14:15 FOMC Rate Decision
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