Good morning. Happy Tuesday.
The Asian/Pacific markets closed mostly down. Japan, which was closed yesterday, lost almost 5%. Hong Kong lost over 2%; China and Malaysia fell over 1%. Taiwan gained 1.8% and Seoul managed a 1% gain.
Europe is currently down across the board. France, Germany, Norway, Italy, Spain and Stockholm are down more than 2%. Austria, Amsterdam, Switzerland and London are down more than 1%.
Futures here in the States indicate a slightly weak open for the cash market. 40 minutes before the open, Nas 100 futures are down 1.0 (0.12%) to trade at 1205 and SPX futures are down 2.75 (0.32%) to trade at 865.25.
Sony (SNE) dropped almost 9% after a Japanese newspaper said the company will record an annual operating loss this year of $1.12 billion. This would be its first loss in 14 years.
Commodities are down worldwide. BHP (BHP), the world’s largest mining company is down 4% while Rio Tinto Group (RTP) is down 7.2%.
Alcoa (AA) reported its first loss in 6 years and said demand for aluminum may continue to weaken this year.
Life insurance companies got clobbered yesterday after the National Association of Insurance Commissioners rejected an industry request to approve looser reserve standards. Hartford (HIG) fell 19% and Prudential (PRU) dropped 13%.
Colorado-based jewelry store retailer Shane Co., has filed for Chapter 11 bankruptcy protection, saying the business suffered a disappointing holiday season.
Potlatch Corp. (POT) said Monday it had sold about 24,800 acres of timberland in southwest Arkansas for $43.3 million, or about $1,746 per acre.
WellPoint Inc. (WLP) said Monday the Centers for Medicare and Medicaid Services suspended the company from enrolling new patients in the health insurance Medicare Advantage plan and the prescription drug benefit, Medicare Part D.
Elan Corp. (ELN) said Tuesday its board of directors engaged Citigroup Global Markets as part of a review for strategic options that could include a sale of the company.
Hospital operator Health Management Associates Inc. (HMA) on Tuesday forecast fourth-quarter and full-year profit below Wall Street expectations, as the industry continues to face bad debt and weak growth amid the economic recession.
Prestige Brands Holdings Inc. , (PBH) which sells drugs and personal care products, said it expects fiscal third-quarter earnings to come in below analysts’ estimates on essentially flat revenue and increased ad costs.
Moody’s Investors Service said it may lower Neiman Marcus Group Inc.’s credit ratings due to the decline in the luxury department store retailer’s December same-store sales.
Staples Inc. , (SPLS) the world’s largest office products retailer, said it priced an offering of $1.5 billion senior notes due 2014 at a 9.75 percent coupon.
Lexmark International Inc. (LXK) lowered its fourth-quarter guidance steeply Tuesday and announced restructuring moves that will affect 375 jobs, saying the weakening economy has hurt sales of its laser and inkjet hardware.
Bristol-Myers Squibb (BMY) and ZymoGenetics (ZGEN) will collaborate on a new drug to treat hepatitis C.
KLA-Tencor (KLAC) revised its fiscal second-quarter revenue outlook, saying the economic downturn, the credit crunch and weak consumer demand “have led our customers to scale back production operations and reduce capital expenditures.”
Mesa Air Group (MESA) fiscal fourth-quarter net loss narrowed to $30.6 million, or $1.15 a share, from $68.2 million, or $2.37 a share, a year earlier.
JP Morgan (JPM) has pushed forward its fourth-quarter earnings release by nearly a week to before the stock market opens on Thursday.
Medicines (MDCO) is buying Targanta Therapeutics (TARG).
The US trade deficit plunged to the lowest level in five years in November as a deepening recession slashed demand for oil by a record amount. Imports from China also fell by the largest amount on record.
Gold is down slightly. Silver is down 1.3%.
Crude oil is down 1.0 to trade at 36.59.
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| UPGRADES | SLW, RAIL, PALM, LXP, DCT, WRI, BDN, BXP, NHP, MAC, SMA |
| DOWNGRADES |
VLCM, PSA, BPO, AIV, PLD, AMB, CI, WLP, GOL , DE , FTE, RYL, ADBE, ERIC, FSLR |
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| EARNINGS | |
| before the open | CBSH, INFY, IIIN, STT |
| during trading | none |
| after the close | EXFO, FUL, LLTC |
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ECONOMIC RELEASES
14:00 Treasury Budget
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