Good morning. Happy Friday.
Employment numbers are out. Here they are…
Unemployment rate jumped to 7.2% – the highest since 1993.
Nonfarm payrolls declined 524K.
Average hourly earnings was +0.3% m/m vs. +0.2% and 3.7% y/y vs. 3.6%.
Average weekly hours was 33.3 vs. 33.5 consensus.
And October nonfarm payrolls was revised lower from -320K to -3223K.
The Asian/Pacific markets closed mixed with a slight bearish slant. India, Singapore and Seoul were noticeable losers. Australia, China and Indonesia out-performed.
Europe, which is still open for trading and can therefore reflect the US employment data, is mixed. Austria is down 1.8% and Italy, Stockholm and Switzerland are down less than 1%. Amsterdam and Norway are up better than 1% while Belgium, France, Germany, Spain and London are up smaller amounts.
Futures here in the States indicate a small gap up for the cash market. 30 minutes before the open, Nas 100 futures are up 5.25 (0.42%) to trade at 1254.75 while SPX futures are up 4.25 (0.47%) to trade at 911.0.
European and Asian news from Barcharts.com -> South Korea’s central bank today cut its benchmark seven-day repurchase rate 50 bp to a record low 2.50%, citing the “rapidly” deteriorating economy.” Nissan Motor Company, Japan’s third-biggest automaker, fell 5% after saying it will eliminate 1,200 workers at a UK factory, citing the “extremely challenging” car market. In Europe, Commerzbank, Germany’s second-largest bank, fell 6.5% after tumbling 14% yesterday saying the German government will take a state in the bank as part of a new state bailout, prompting Societe Generale to downgrade Commerzbank to a “sell” from “hold” on concern repaying funds from the state will burden earnings amid a tough economic climate in Germany. Deutsche Postbank AG, Germany’s biggest consumer bank by clients, slid 4.4% after saying its 2008 earnings will be “clearly negative” and Natixis SA, the worst performing French banking stock last year, sank 9.3% after the French newspaper Les Echos reported the bank may report as much as 1 billion ($1.37 billion) of losses last quarter. Bundesbank President and ECB Council member Axel Weber hinted at a speech in Cologne late yesterday that he may favor additional ECB rate cuts after saying Germany’s economy may contract by more than expected this year as the recession deepens.
Schlumberger (SLB) is cutting 1,000 jobs in North America. International cuts are expected too.
Disease-management program administrator Healthways Inc. (HWAY) said late Thursday its profit grew 13 percent in its fiscal first quarter as the company expanded its coverage.
G&K Services Inc. (GKSR), which provides uniforms and facility services, on Friday said it is eliminating 460 jobs, including 340 employees and 120 open positions, from its work force as it aims to trim costs amid weak demand.
Morningstar Analysts named Warren Buffett best CEO of 2008 even though Bershire Hathaway stocks is down about 35%.
Intermec (IM) to cut 150 jobs, expects 4th-quarter sales in ‘lower half’ of guidance range.
Furniture Brands International Inc. (FBN) said it settled a patent infringement lawsuit against Lifestyle Enterprises Inc.
The Albuquerque Journal, New Mexico’s largest newspaper, has announced staff reductions as part of a restructuring aimed at reducing costs but said the cuts were limited to fewer than 10 in the newsroom.
Ambassadors Group Inc. (EPAX), which organizes educational travel programs, said Thursday that it plans to cut up to 20 percent of the company’s work force because fewer families have signed up for its 2009 trips.
R.R. Donnelley & Sons (RRD) cuts 2008 adjusted earnings forecast on economic conditions and declared a 26 cent dividend.
Hair salon operator Regis Corp. (RGS) said Friday its fiscal second-quarter same-store sales dropped 5.4 percent and revenue fell 4 percent, hurt by a bigger-than-expected pullback in consumer spending.
Germany’s BMW AG reported Friday a 4.3 percent decrease in sales for 2008, attributing the fall to the global economic crisis and increased reluctance among consumers to make big purchases.
France’s Renault SA said Friday that vehicle sales fell 28.5 percent in December as the global economic crisis led to a “brutal” collapse of the market.
KB Home (KBH) reports narrower loss in 4th-qtr, but lower home demand continues to weigh on results.
Icon PLC (ICLR) which provides outsourced development services to drug and medical device makers, raised its 2008 profit forecast on Friday but trimmed its revenue expectations due to recent strength in the dollar.
Chevron (CVX) warned that its fourth-quarter earnings will likely be “significantly lower” than in the third quarter.
Education provider Apollo Group Inc. (APOL) said fiscal first-quarter profit rose to $180.4 million, or $1.12 a share, from $139.9 million, or 83 cents a share, last year. Revenue rose to $971 million from $780.7 million a year ago.
Coach (COH) said it will fall short of its fiscal second-quarter guidance because of poor holiday sales.
Lawson Software (LWSN) reported its second-quarter net income rose to $4.2 million, or 3 cents a share, from $3.7 million, or 2 cents a share, in the same quarter in 2007.
Gold is down 0.16% and Silver is up 1.35%
Crude oil is down 33 cents to trade at 41.37.
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| UPGRADES | PALM, EXP, MDRX, HCN, SNN, MSM, WNS, ED, SGR, HWAY |
| DOWNGRADES |
PLCE, JCG, MW, PVH, MTW, GG, GPS, EQ, THOR, NOVA, DOV, MLM, SFD, WXS, SSS, SLG, MPG, HME, BRE, RTP, PTR, EXLS, KDN, GPS, ENOC, BRLI |
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| EARNINGS | |
| before the open | AZZ, EMMS, KBH |
| during trading | none |
| after the close | SHLM |
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ECONOMIC RELEASES
8:30 Average Workweek
8:30 Hourly Earnings
8:30 Nonfarm Payrolls
8:30 Unemployment Rate
10:00 Wholesale Inventories
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