Good morning. Happy Tuesday.
The Asian/Pacific markets which were open (several were closed for holidays) today rallied nicely. Japan rallied almost 5%; India gained almost 4%; Australia almost 3%; Indonesia and New Zealand better than 1%.
Europe is currently down across the board. Amsterdam, Spain and Switzerland are down more than 1%. Germany, France and London are down in the 0.5 – 0.9% range.
Futures here in the States indicate a gap up open for the cash market. minutes before the open, Nas 100 futures are up 8.75 (0.74%) to trade at 1188.25 while SPX futures are up 10.25 (1.23%) to trade at 841.50.
From Barchart.com -> German business confidence unexpectedly rose for the first time in eight months as the Jan IFO business climate index rose +0.3 to 83.0 after the ECB continued its rate cutting cycle and the German government doubled the amount put aside for a stimulus package. Undercutting European share prices today are the over 3% drops in BHP Billiton and Rio Tinto Group as lower copper prices today weigh on the earnings outlook for the mining companies. Siemens, Europe’s biggest engineering company, is trading 3.2% higher today after reporting Q4 sector profit up 20% to 2 billion euros ($2.6 billion), higher than analysts’ estimates of 1.83 billion euros. Asian stock markets were boosted today after reports from Japan’s Trade Ministry that the Japanese government may let a state-owned bank purchase stock in companies struggling to raise capital and the government will guarantee the investments should the companies go bankrupt. Mitsubishi UFJ, Japan’s biggest bank, soared 8.5% while Mizuho Financial Group, Japan’s second-largest bank, surged 12%. Commonwealth Bank, Australia’s biggest mortgage lender, rose nearly 3% today after the Aussie government pledged $2.7 billion in lending for commercial property companies in case foreign banks don’t renew business loans.
Texas Instruments (TXN) is up over 5% higher in after-hours trading after the second-largest US chipmaker said Q4 income, excluding reorganization costs, was 21 cents a share, well ahead of analysts estimates of 12 cents, and that the company will shed 12% of its workforce or 3,400 jobs to cope with a slowdown in orders.
American Express (AXP) is trading over 2% higher in European trading today after the biggest US credit-card company reported late yesterday that despite posting Q4 profit of 21 cents a share, 1 cent below analysts’ estimates, it sold $6.2 billion in certificates of deposit in Q4.
DuPont Co. (DD) reported a $629 million loss for the fourth-quarter, reflecting a hefty restructuring charge, and lowered its earnings forecast for the full year due to weak industrial demand for its chemicals.
Delta Air Lines Inc. (DAL), the world’s biggest carrier, said Tuesday it lost $1.4 billion in the final three months of last year as it recorded a massive charge related to employee stock awards and wasn’t able to fully benefit from the decline in oil prices because of bad bets on fuel hedges.
Hershey (HSY), the nation’s second-biggest candy maker, said Tuesday its fourth-quarter sales and profits rose, helped by dropping capital costs, higher prices and a huge advertising investment behind its core Reese’s and Hershey’s brands.
Corning Inc. (GLW) said Tuesday it is cutting 3,500 jobs, or 13 percent of its payroll, as demand slumps for glass used in flat-screen televisions and computers.
Verizon Communications Inc. (VZ) posted a 15 percent earnings increase for the fourth quarter on Tuesday, as the shrinking economy did little to dampen consumer appetites for wireless, Internet and TV service.
Strong sales of blockbuster blood thinner Plavix helped Bristol-Myers Squibb Co. (BMY) post a sizable fourth-quarter profit Tuesday, rebounding from a loss in a charge-laden quarter a year earlier and beating Wall Street’s profit forecast.
Commercial and personal property insurer Travelers Cos. (TRV) said Tuesday that lower investment income drove fourth-quarter profit down 25 percent.
Synnex Corp. (SNX), a business services provider, said Tuesday it expects its fiscal first-quarter profit to be at the high end or exceed its guidance.
Tellabs Inc. (TLAB), which makes telecommunications equipment, on Tuesday released first-quarter sales guidance below current Wall Street predictions.
Sportswear manufacturer Quiksilver Inc. (ZQK) says it’s cutting 200 positions to reduce costs as the nation’s retail sector continues to sag.
EMC (EMC) says 4th-quarter profit drops 45 percent as restructuring charges weigh on results.
Forest products supplier Weyerhaeuser Co. (WY) will immediately close two mills in southwestern Washington due to weak market conditions, with the loss of 221 jobs, the company announced Monday.
McGraw-Hill Cos. (MHP) said Tuesday that it expects 2009 profit to come in below Wall Street’s expectations.
Ashland Inc. (ASH) said Tuesday it lost $119 million in its first fiscal quarter, and plans to cut its work force by 1,300 jobs, freeze wages and adopt a two-week furlough program.
Quanex Building Products Corp. (NX) said it expects to post a bigger-than-anticipated fiscal first-quarter operating loss, citing to a downturn in demand during the latter half of the quarter.
Lexmark International Inc. (LXK), which makes printers and imagining equipment, on Tuesday said fourth-quarter profit fell nearly 82%, hurt by restructuring charges and the stronger dollar and said it expects first-quarter revenue to decline, but gave profit guidance above analyst expectations.
Construction services provider Jacobs Engineering Group Inc. (JEC) said its fiscal 2009 first-quarter profit jumped 18% on demand for services despite some client cancellations. They then trimmed their fiscal 2009 outlook as the weak economy prompts a slowdown in some of the company’s programs.
Industrial conglomerate Siemens AG (SI) said Tuesday its fiscal first quarter net profit fell 81 percent, largely due to one-time effects stemming from the sale of its VDO Automotive business last year.
Albemarle Corp. (ALB): fourth-quarter profit totaled $13.1 million, or 14 cents a share, down from $58.6 million, or 60 cents a share, in the year-ago period.
Allegiant Travel Co. (ALGT), the Las Vegas parent of Allegiant Air, reported that fourth-quarter earnings nearly quadrupled on 21% higher revenue. The company also said it would buy back as much as $25 million of its common stock.
Amgen (AMGN) reported net income rose 15% for the fourth quarter on flat sales.
Con-Way (CNW) swung to a fourth-quarter loss of $43 million, or 94 cents a share, compared with profit of $34.5 million, or 77 cents a share, in the year-ago period.
Crane (CR) the producer of industrial components, reported late Monday a fourth-quarter net loss of $8.3 million, or 14 cents a share. The company posted net income of $45.2 million, or 74 cents a share, for the year-ago quarter.
Fannie Mae (FNM) said it expects to draw about $11 billion to $16 billion from the U.S. Treasury.
IBM (IBM) has cut more than 2,800 jobs in its software and sales departments, according to an organization seeking recognition as a union at the technology giant.
McKesson (MCK) reported a third-quarter loss of $20 million, or 7 cents a share, vs. a profit of $201 million, or 69 cents a share, a year earlier.
Netflix (NFLX) said its fourth-quarter profit rose 45% as subscriber-acquisition costs declined sharply.
Pactiv (PTV), maker of Hefty trash bags and plastic cookware utensils, reported fourth-quarter net income rose on increased selling prices, lower commodity costs, and manufacturing downtime.
QLogic (QLGC) reported its third-quarter net income slid to $30.8 million from $31.9 million a year earlier.
Steel Dynamics (STLD), hit by “significant weakening” in the steel and metal recycling sector, reported a fourth-quarter net loss of $82.7 million, or 45 cents a share. The company posted net income of $97.9 million, or 50 cents a share, a year earlier.
VMware (VMW) reported fourth-quarter profit of $111 million, or 29 cents a share, against $78 million, or 19 cents a share, a year earlier.
Zion Bancorp (ZION) swung to a fourth-quarter loss as it bolstered loan-loss reserves and took charges.
Dividends are being cut at the fastest pace in at least 50 years, and many of the reductions are coming from U.S. companies investors have been relying on to provide income during the recession.
Gold is down 0.3% and Silver is down 0.3%.
Crude oil is down 1.00 to trade at 44.73.
—————————————————————————————-
| UPGRADES |
VLTR, JAS, LIHR, ODSY, CRYP, ZRAN, TXN, ARMH, CAT, SKH, SUNH, BOH, PVTB |
| DOWNGRADES |
MW, MANT, KSS, CBNJ, ADP, PAYX, PEBK, DRIV, LAYN, TMK, USB, GNK, SNSS |
—————————————————————————————-
| EARNINGS | |
| before the open | AKS, AVY, BMS, BJS, BMY, CP, CRS, CRA, GIB, CHKP, CCUR, CVG, CBE, DAL, DD, EMC, ENR, FCFS, FMER, FPL, GKSR, HW, HSY, KCI, LXK, MHP, NNDS, NUE, NVR, NYB, BTU, PBG, PTEC, PRSP, RYN, SI, STJ, STE, TLAB, TIN, TRV, TUES, X, VLO, VZ, WDR, WAT |
| during trading | BPL |
| after the close | ALTR, AMLN, BBOX, CHRW, CLMS, ELY, CALD, CTX, CNB, CSGS, DV, ETFC, ELX, GILD, HTCH, ISSI, JBHT, KEYN, MRTN, MRCY, MOLX, NAL, NSC, OPWV, PMTC, PLT, RFMD, RKT, SBCF, TSFG, SFG, STSA, STM, SYK, JAVA TSS, TRMK, VPRT, WBSN, YHOO |
—————————————————————————————-
ECONOMIC RELEASES
9:00 Consumer Confidence
9:00 S&P/CaseShiller
—————————————————————————————-