Good morning. Happy Thursday.
Every single world market is down, and most markets are down a bunch.
In Asia/Pacific, Taiwan lost 5.3%, Japan and Hong Kong lost almost 4%, Australia, China and Singapore lost more than 2% and Indonesia and Seoul fell more than 1%.
In Europe, Austria, Belgium and Stockholm are down more than 2% and France, Germany, Amsterdam, Italy, Spain, Switzerland and London are down more than 1%.
Needless to say, futures here in the States indicate a moderate gap down for the cash market. 30 minutes before the open Nas 100 futures are down 6.25 (0.5%) to trade at 1233.25 while SPX futures are down 8 (0.9%) to trade at 897.25.
The Bank of England today cut its benchmark interest rate by 50 bp to 1.5%, the lowest since the BOE was founded in 1694, as its policy makers try to prevent the credit squeeze from deepening Britain’s recession.
From Barchart.com ->> Negative economic news continues to flow out of Europe with December Euro-Zone economic confidence tumbling -7.8 to 67.1, its lowest level since the index began in 1985, while unemployment in the Euro-Zone rose to a 2-year high of 7.8% in November. Undercutting the equity markets and also adding pressure on the ECB for more interest rate cuts was the -6.0% m/m decline in November German factory orders which have now declined in 11 of the past 12 months along with -10.6% drop in German exports in Nov, the largest monthly decline since records for a reunified Germany began in 1990. Economic conditions out of Asia are not much better as Lenovo Group, China’s biggest personal-computer maker, plunged 26% today after forecasting its first loss in 11 quarters and saying it will cut 11% of its workforce and Macquarie Group Ltd. , Australia’s biggest securities firm, losing 3.7% today after saying “exeptionally challenging” conditions will erode earnings. Exports out of Taiwan plummeted by a record -41.9% in December on weaker US and Chinese demand for its laptops, mobile phones and computer chips. Confidence in Indian stocks may be hard to find after India’s Sensex index tumbled 7.3% yesterday led by the 78% plunge in Satyam after Satyam’s Chairman said the company’s profits had been inflated for years. India’s stock markets are closed today for a public holiday.
Italian automaker Fiat expands layoff scheme to white-collar workers
Sun Microsystems (JAVA) tumbled 3.7% this morning after Goldman Sachs lowered the company’s share-price projection and 2009 earnings estimate and put Sun on its “sell” list, citing “deteriorating fundamentals.
Wal-Mart Stores (WMT) December sales miss analysts’ expectations, and the company is cutting its earnings forecast for the fourth quarter.
Computer maker Dell (DELL) to cut 1,900 jobs in Ireland, move manufacturing to Poland.
General Motors (GM) Chief Executive Rick Wagoner said Thursday the Detroit automaker can survive long-term without cutting benefits to retired workers.
S&P cuts credit ratings on PNC Financial (PMC) 1 notch, cites concerns over National City (NCC) deal.
Macy’s (M) will close 11 underperforming stores in 9 states; Dec. same-store sales fall 4 percent. 960 employees will be affected.
Wolverine World Wide (WWW) which makes Merrell and Hush Puppies shoes, said Thursday it will cut 450 jobs in a cost-saving effort..
Specialty apparel retailer New York & Co. (NWY) warned Thursday that it will likely report a fourth-quarter same-store sales decline, as quarter-to-date results are down 10.1 percent. They plan to close up to 50 stores.
Children’s Place (PLCE) records flat same-store sales in December, beating analysts’ expectations.
J. Crew Group (JCG) said Thursday that weaker-than-anticipated sales will lead the apparel retailer to report a fourth-quarter loss.
Pacific Sunwear (PSUN) December same-store sales fall 10 percent. They lowered their Q4 outlook.
Zale (ZLC) reports 22 percent drop in Dec. same-store sales, 19.6 percent decline for holiday season.
Coal-mining Peabody Energy (BTU) is scaling down its production outlook this year at some of its operations in Wyoming’s Powder River Basin and Australia, citing a global recession.
Qwest Communications (Q), which provides telephone, Internet and video services, said Thursday its business units performed “in line with operating expectations” and maintained cost controls during the fourth quarter.
Limited Brands (LTD) cuts 4th-quarter guidance after weak December same-store sales.
Williams-Sonoma (WSM) says holiday same-store sales fell 24.2 percent; shaves 4th-qtr guidance.
Wet Seal (WTSLA) December same-store sales drop 12.5 percent, hurt by Arden B results.
Bebe Stores (BEBE) lowered its fiscal second quarter forecast on Thursday to reflect heavier-than-expected promotions in November and December as the specialty apparel retailer lowered prices to contend with less mall traffic.
Stage Stores (SSI) says same-store sales slid 4.9 percent in December, less than analysts expected.
Urban Outfitters (URBN) said Thursday that same-store sales dipped 1 percent for the holiday season, hurt by bigger discounts and softness in its Anthropologie and Free People brands.
Sears (SHLD) December same-store sales drop 7.3 percent on weak results at its domestic Sears stores. They anticipate lower Q4 earnings.
Chinese PC maker Lenovo to cut 11 percent (2,500 jobs) of work force, warns of quarterly loss.
Costco (COST) December same-store sales slip 4 percent, narrowly missing analysts’ estimates.
Haverty Furniture (HVT) says sales fell 21.3 percent in 4th quarter on weak demand.
Shaw Group (SGR), an engineering and construction company, said Thursday it posted a loss in its first quarter as the Japanese yen gained value against the U.S. dollar, offsetting an 11 percent increase in revenue.
Gap (GPS) books 14 percent same-store sales decline in December as consumer traffic drops and lowers its earnings forecast for fiscal 2008.
Cardinal Health (CAH) cut its fiscal 2009 profit estimates Thursday, saying it expects hospitals to keep delaying equipment purchases.
Bed Bath & Beyond (BBBY) fiscal third-quarter net income fell to $87.7 million, or 34 cents a share, from $138.2 million, or 52 cents a share, in the year-earlier period.
Hot Topic (HOTT) December same-store sales at stores open at least one year rose 4.3%, compared with a fall of 6.2% in December 2007.
Immucor (BLUD) fiscal second-quarter profit rose to $17.3 million, or 24 cents a share, from $16.2 million, or 23 cents a share, in the year-ago period.
Manitowoc (MTW) is expected to report adjusted 2008 earnings toward the lower end of its estimate.
Medical Properties Trust (MPW) is selling 10 million shares to the public.
Men’s Warehouse (MW) says it expects Q4 earnings to come in at the low end of its forecast range because of slow sales in Canada.
Sonic (SONC) fiscal first-quarter profit fell to $7.1 million, or 12 cents a share, from $13.6 million, or 22 cents a share, in the year-ago period.
Zumiez (ZUMZ) sales at stores open at least one year fell 12.3% in December.
Gold is up 1.7% and Silver is up 1.6%.
Crude oil is down 1.15 to trade at 41.48.
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| UPGRADES | URBN, MKL, AKS, PODD, CSX, LEN, EPIC, DE, RJF |
| DOWNGRADES | MCRS, WSM, CELG, ISRG, MRO, SGMS, RT, ADS, TCK, IRIS, DTSI, INTC, WFR, MEOH, TE, RGLD, PHM, TER, FORM, CMG, PEET, MRT, MSSR, WATG, ASML, KLAC, EME, GFIG, ICE, PRXI |
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| EARNINGS | |
| before the open | GAP, GBX, HELE, MTRX, MSM, RPM, SCHN, TXI |
| during trading | none |
| after the close | MDRX, APOL, DMAN, HWAY, IHS, LWSN, NUHC, RBN, SNX, TK |
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ECONOMIC RELEASES
8:30 Initial Jobless Claims
14:00 Consumer Credit
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