Good morning. Happy Thursday.
The Asian/Pacific markets closed mostly up, but other than Hong Kong (up 4.6%) and Japan (up 1.8%), no market gained more than 1%. The Chinese market was still closed.
Europe is currently down across the board. Stockholm and Switzerland are down more than 2%. France, Germany, Amsterdam, Norway, Spain and London are down more than 1%.
Futures here in the States suggest a gap down open for the cash markets. 45 minutes before the open, the Nas 100 is down 9.25 (0.75%) to trade at 1220.00 while the SPX is down 9.75 (1.12%) to trade at 861.75.
Asian & European summary from barchart.com ->> Economic confidence in the Euro-Zone declined in Jan by -1.5 to 68.9, the lowest level since the index was created in 1985, and adding to arguments for further ECB interest rate cuts. German unemployment rose almost twice as much as forecast in Jan (+56,000 versus expectations of +30,000) and the unemployment rate climbed to 7.8%, +0.1 higher than the 7.7% expected. Xstrata sank over 8% after the mining company said it plans to raise 4.1 billion pounds ($5.8 billion) in a two-for-one rights offer to pay down debt and buy Columbian coal assets from Glencore International AG, its largest shareholder. Falling metal prices aided the slide in other mining companies today with BHP, the world’s largest mining company, down nearly 4%, and Rio Tinto Group, the third-largest, down over 7%. London Stock Exchange dropped over 6% after Citigroup downgraded it to “sell” from “hold,” citing a weak trading volume outlook while Deutsche Boerse AG fell 4% after having its share-price estimate cut 37% to 54 euros. Supporting Asian bank stock prices today was the action by the Reserve Bank of New Zealand in cutting its benchmark rate a larger-than-expected 1.5 points to 3.5% and saying there’s room for further rate reductions. Asian exporters rallied on optimism that US government measures to revive the economy will shore up consumer demand. Yue Yuen Industrial, who supplies shoes to Nike and Adidas, climbed over 3%, Sony rallied 4% and Canon, the world’s largest camera maker, rose nearly 2%.
Qualcomm (QCOM) is down over 5% in European trading this morning as the world’s biggest maker of mobile phone chips said Q1 net income plunged 56% to $341 million from $767 million and it also lowered its full-year sales forecast to $9.3 to $9.8 billion, down from an earlier prediction of $10.2 billion.
Ford Motor Co. (F) said Thursday it lost $5.9 billion in the fourth quarter as auto sales slumped, but it has no plans to seek federal aid unless economic conditions worsen.
Eastman Kodak Co. (EK) said Thursday it is cutting 3,500 to 4,500 jobs, or 14 percent to 18 percent of its work force, as it posted a $137 million fourth-quarter loss on plunging sales of both digital and film-based photography products.
Continental Airlines Inc. (CAL) said Thursday it lost $266 million in the fourth quarter as the recession bit into traffic and fuel and labor costs increased.
Sony (SNE) said Thursday its net profit plunged 95 percent in the October-December quarter, as the holiday shopping season provided no respite for the struggling electronics giant and tepid sales of TVs, digital cameras and cell phones hit its bottom line.
Royal Dutch Shell Plc reported a big drop in fourth-quarter net profits and missed analysts’ forecasts, but the oil major eased investor fears about cashflows by raising its dividend while lifting planned investments.
Drugmaker Eli Lilly & Co. (LLY) said Thursday it swung to a loss in the fourth quarter on charges from buying cancer-drug maker ImClone Systems Inc.
Altria Group Inc. (MO) said Thursday its fourth-quarter profit fell 69 percent from year-ago results that included its overseas unit, which has been spun off.
Pharmaceuticals company AstraZeneca PLC (AZN) on Thursday reported a small drop in fourth-quarter net income and said it would cut a further 6,000 jobs globally by 2013 as it looks to shore up its earnings.
American Electric Power (AEP) said Thursday that its fourth quarter earnings fell 34 percent after it was ordered to refund some sales from a six-year period to a number of subsidiaries.
JetBlue’s (JBLU) fourth-quarter pretax loss grew on a hefty charge on the value of some soured investments.
Alaska Air Group Inc. (ALK), operator of Alaska Airlines and Horizon Air, swung to a $75.2 million fourth-quarter loss as sales slid.
International Paper Co. (IP) said Thursday it swung to a fourth-quarter loss, as restructuring, plant closures and other charges offset higher sales.
Restaurant chain Chick-fil-A Inc. said Thursday its same-store sales in 2008 jumped despite a recession that has taken a big bite out of the sales of most restaurant companies.
Power tools manufacturer Black & Decker Corp. (BDK) said Thursday that its fourth-quarter profit tumbled 77 percent on a large restructuring charge and declining demand as the prior year benefited from a hefty tax settlement., and they warned its first-quarter results would be hurt by declining sales and a stronger U.S. dollar. They cutting 1,200 jobs.
3M Co. (MMM) says its fourth-quarter profit dropped 37 percent, hurt by lower sales across most of its businesses. It also cut its forecast for sales and profit in 2009.
Occidental Petroleum Corp. (OXY) said Thursday its fourth-quarter profit fell 69 percent from a year ago as results were hammered by lower oil and gas prices.
AutoNation Inc. (AN), the nation’s largest automotive retailer, said Thursday its fourth-quarter profit rose 30 percent, as gains from a tax adjustment and a buyback of some debt offset a plunge in demand for new vehicles.
Starwood Hotels & Resorts Worldwide Inc. (HOT) said Thursday that its fourth-quarter profit fell 46 percent, hurt by severance costs and a writedown for two vacation ownership projects, and they said they expect first-quarter and full-year earnings from continuing operations will be pressured by a significant drop in worldwide revenue per available room and ongoing struggles at its timeshare business.
Raytheon Co. (RTN) says one-time charges pushed fourth-quarter net income down by 30 percent.
Consumer products company Colgate-Palmolive (CL) says fourth-quarter profit jumped nearly 20 percent, helped by cost-cutting, higher prices and new products.
US Airways Group Inc. (LCC) says it lost $541 million in the fourth quarter on a mix of sour fuel hedges and operating losses.
Media General Inc. (MEG) says it lost $85.5 million in the fourth quarter on a steep drop in publishing profits and one-time charges.
Textron Inc. (TXT) swung to a fiscal fourth-quarter loss Thursday as the maker of Cessna jets, Bell helicopters and E-Z-GO golf carts took more than $500 million in charges to account for shedding its financial business, cost-cutting and other actions.
Shares of electronics manufacturer Flextronics International Ltd. (FLEX), stumbled in premarket trading Thursday after the company reported a wider third-quarter loss and said fourth-quarter results will likely miss expectations.
Illinois Tool Works (ITW) said Thursday fourth-quarter net income fell by about half to $233.8 million, or 54 cents a share, from $470.7 million, or 82 cents a share in the year-ago period.
Allstate (ALL) reported a fourth-quarter net loss of $1.13 billion, or $2.11 a share.
Citrix Systems (CTXS) reported a fourth-quarter profit of $60 million, or 33 cents a share, against $63 million, or 33 cents a share, a year earlier.
Compuware (CPWR) fiscal third-quarter profit fell to $35 million from $35.6 million last year. On a per-share basis, earnings rose to 14 cents from 13 cents in the year-ago period, as shares outstanding fell to 246.8 million from 282.5 million.
Dell (DELL) fourth-quarter results will include expenses of about 11 cents a share. Dell said the expenses are part of its plan to cut costs by $3 billion by the end of its 2011 fiscal year.
Dominion (D) fourth-quarter net income rose to $348 million, or 60 cents a share, from $299 million, or 52 cents a share in the year-ago period.
Fortune Brands (FO) reported a fourth-quarter loss of $275 million, or $1.84 a share, compared to a gain of $201.5 million, or $1.31 a share, in the year-ago period.
Lam Research (LRCX) reported a net loss of $24.2 million, or 19 cents a share, for its December 2008 quarter, compared with a profit of $115.1 million, or 91 cents a share, for the year-earlier period.
LSI (LSI) reported a fourth-quarter net loss of $606.4 million, or 94 cents a share, compared with a net loss of $1.99 billion, or $2.87 a share, for the year-earlier period.
Gold is down 0.50% and Silver is down 0.25%.
Crude Oil is down 79 cents to trade at 41.37.
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| UPGRADES |
OTEX, AAI, MSM, DFT |
| DOWNGRADES |
CTXS, GMCR, DRE, NWS, ELX, IPAR, NHY, NYX, CTXS, LRCX, AFFX, APD, IRBT, NSR, PNNT, MCGC, ARCC, ALD, AINV, ACAS, TMP, DRYS |
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| EARNINGS | |
| before the open | FLWS, MMM, ALK, ATK, MO, AMB, AEP, BUD, ACAT, ABFS, AF, AZN, ALV, AN, BLL, BDK, BPHX, BC, CSAR, CSH, CELG, CHTT, CL, CNX, CEG, CAL, D, DDE, DVD, EK, LLY, EQT, ETH, SSP, FCS, F, FO, GNTX, HSC, HHS, HP, ITW, IPSU, IP, ISCA, IVC, ITG, JBLU, KMT, FSTR, LLL, LB, LANC, LDR, LEA, ERIC, MBI, MEG, MPW, MWIV, NTY, NWL NWA, NCX, OXY, ODFL, OHI, OXPS, OSK, OSIS, PCCC, PAS, , PCZ, PII, PFS, QUIX, RTN, RCL, RDS.A, RRST, SEIC, SII, SNE, HOT, SRI, TROW, TXT, TKR, UTEK, UMPQ, UA, USAP, LCC, USAK, WCC, WYE, XEL, YRCW, ZMH |
| during trading | MNTG |
| after the close | PAR, ABAX, ARAY, ACXM, ACS, AMZN, ACF, ANEN, AMCC, ARBA, AVID, ACLS, BRCM, BCR, CA, CAMD, BEAT, CHRT, CHRD, CB, COLM, CNXT, CVTI, CYBS, CYT, DDUP, DRIV, DNEX, DLB, DLLR, EMN, EFII, ESIO, ENTU, EXAR, FMD, FBC, HLIT, HPC, HUBG, IKAN, INFN, INFA, ININ, IDTI, JNPR, KLAC, LCRD, LSCC, MXIM, MNT, MCRL, MCHP, MIPS, NATI, OMCL, OPLK, PKI, PXLW, PMCS, QTM, RMTR, RLRN, SMTL, SWIR, SXE, STAR, SPWRA, SYMM, TK, TGI, VAR, VSEA, WMS, ZIGO |
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ECONOMIC RELEASES
8:30 Durable Orders
8:30 Initial Claims
10:00 New Home Sales
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