Good morning. Happy Friday.
The Asian/Pacific markets closed down across the board. Australia and Japan lost more than 3%. Seoul more than 2%. India, New Zealand and Singapore more than 1%.
Europe is currently experiencing steady selling pressure. Austria, France, Germany, Amsterdam and Italy are down more than 2%, and Spain, Stockholm, Switzerland and London are down more than 1%.
Futures here in the States suggest a sizeable gap down open for the cash market. 35 minutes before the open, Nas 100 futures are down 25.5 (2.15%) to trade at 1147.0 while SPX futures are down 22.25 (2.76%) to trade at 803.25.
Samsung Electronics, the world’s largest manufacturer of flat screen televisions, memory chips and liquid crystal displays, posted its first ever quarterly loss Friday as the global economic slump hit prices and demand for mainstay products.
Sony (SNE), the world’s second-biggest consumer electronics maker, forecasted its first annual loss in 14 years.
German memory-chip maker Qimonda AG (QI) declared bankruptcy Friday, saying a rescue package of loans agreed last month was insufficient to keep it viable.
Infineon Technologies (IFX), Europe’s second-biggest semiconductor maker, slumped over 6% as its Qimonda unit filed for insolvency after failing to secure adequate financing following a drop in memory-chip prices.
Westpac Banking (WBK), Australia’s largest bank by market value, sank nearly 6% after Bernie Fraser, a former Aussie central bank governor, predicted a “longer” recession for the country than the last recession in 1991.
The UK economy contracted in Q4 2008 more than estimated as the financial crisis drives England deeper into recession. Q4 GDP in the UK contracted -1.5% q/q, more than the -1.2% q/q estimated, and the biggest contraction in UK growth since Q2 of 1980. The European Commission forecasts the UK economy will contract -2.8% this year, the most since 1946 when Britain was in the grip of mass demobilization after WWII.
The big news from the US comes from General Electric (GE). Fourth-quarter earnings fell 46%.
Yesterday, Microsoft (MSFT) dropped 12% after reporting Q2 net income of $4.17 bilion or 47 cents a share, below analysts estimates of 50 cents and saying it will eliminate 5,000 jobs and it will no longer give future guidance for the rest of the fiscal year as the recession crimps demand for its software.
Capital One Financial Corp. (COF) sank 8% in after-hours trading yesterday after reporting a -$1.42 billion loss for Q4 due to charges from its auto lender and a $1 billion boost to reserves for soured loans.
Harley-Davidson (HOG), the largest US motorcycle maker, late yesterday announced plans to cut about 1,100 jobs and take a charge of $110 million to $140 million because of lower demand.
Xerox Corp.’s (XRX) fourth-quarter earnings plunged as the printer and copier maker booked hefty charges for layoffs and other restructuring costs, and the company on Friday forecast first-quarter profit below Wall Street expectations.
Schlumberger Ltd (SLB)., the world’s largest oilfield services company, said Friday its fourth-quarter earnings fell nearly 17 percent as a significant fall off in drilling and other activity by oil and gas companies hurt results, which missed Wall Street forecasts.
John Thain resigned under pressure from Bank of America (BAC) on Thursday after reports he rushed out billions of dollars in bonuses to Merrill Lynch employees in his final days as CEO there, while the brokerage was suffering huge losses and just before Bank of America took it over.
Interline Brands Inc. (IBI), a distributor and marketer of repair and maintenance products, said Friday it won’t meet its fourth-quarter earnings guidance and will eliminate 85 jobs and consolidate distribution centers as part of a cost-cutting program.
Bobcat Co. says it is extending a six-week shutdown of its two North Dakota plants by two weeks, citing the nation’s economic slowdown.
Fitch Ratings lowered its outlook for FairPoint Communications Inc. (FPT) and also cut some of the company’s ratings, citing a higher-than-expected amount of access-line losses and stricter borrowing requirements.
Polaris Industries Inc. (PII), which makes leisure vehicles such as all-terrain vehicles, snowmobiles and motorcycles, said late Wednesday that it will eliminate 460 jobs as it tries to keep pace with softening demand.
Google (GOOG) reported its fourth-quarter net income fell sharply to $382 million, or $1.21 a share, from $1.2 billion, or $3.79 a share in the same period a year earlier.
Advanced Micro Devices (AMD) reported a fourth-quarter net loss of $1.42 billion, or $2.34 a share, compared with a loss of $1.77 billion, or $3.06 a share, for the year-earlier period.
Federated Investors (FII) said its fourth-quarter net income came in at $54.3 million, up slightly from a year earlier when the fund management company made $52.7 million.
Janus Capital Group (JNS) is leaving the institutional money-making business by April 30.
Marvell Technology Group (MRVL) lowered its fourth-quarter revenue outlook because of the worsening economy.
MEMC Electronic Materials (WFR) reported its fourth-quarter net income fell to $73.2 million, or 33 cents a share, from $376.4 million, or $1.62 a share, in the same quarter last year.
Pall Corp (PLL) said its board raised the quarterly dividend 11.5% to 14.5 cents. The dividend is payable Feb. 16 to shareholders of record as of Feb. 2.
Gold is up 2.3% and Silver is up 1%.
Crude oil is down 1.28 to trade at 42.39.
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| UPGRADES | CCO, CNI, GRMN, JCG, EXPD, KAMN, BBT |
| DOWNGRADES |
OSIS, AMD, IWOV, COF, FITB, DRIV, LPX, MTD, CME, AMFI |
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| EARNINGS | |
| before the open | GE, HOG, MBFI, SLB, WBS, XRX |
| during trading | none |
| after the close | none |
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ECONOMIC RELEASES
10:30 EIA Natural Gas Report
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