Good morning. Happy Tuesday.
35 min before the open, the Nas 100 futures are down 9.50 (0.78%) to trade at 1202.50 while the SPX futures are down 5.75 (0.64%) to trade at 899.0.
In Asia/Pacific, the markets closed mixed with an upward bias. China lost 2.5% and Hong Kong lost 1.9% while Indonesia and Singapore gained more than 5% and Taiwan and India gained over 1%.
In Europe, the markets have a definite upward bias. Only Belgium is down more than 1% while Austria is up 6.2%, France is up 1.2%, London up 1% and several others up fractionally.
Japan’s revised Q3 GDP data revealed a deeper recession than first thought as exports weakened, domestic demand fell and companies bracing for a prolonged downturn pared inventories.
Finland’s central bank expects the Finland economy to shrink 0.5% in 2009.
The Latvian economy shrunk 4.6% in Q3.
The Brazilian economy expanded 6.8% in Q3 before the global economic slowdown hit hard in Oct, says Brazil’s government.
The solar sector may be hurt today by Q-Cells’ reduction in its 2008 net income guidance to 185 million euros from 215 million euros and in its 2008 revenue to 1.225 billion euros from 1.35 billion euros, due to weakening demand and postponed orders.
The Bank of Canada today is expected to cut rates 50 basis points.
Sony (SNE) has announced plans to cut 8,000 jobs as part of a cost-cutting move.
Illinois Tool Works (ITW) has issued downside earnings and revenue guidance for Q4.
MetLife (MET) issued disappointing guidance for fiscal Q4 and upcoming fiscal year.
3M (MMM) issued less-than-expected outlook for fiscal 2008 and 2009.
FedEx (FDX) says it expects Q2 earnings to be $1.58 which is above consensus estimate of $1.54, but they’re fiscal 2009 projections are below estimates.
Texas Instruments (TXN) lowered earnings and revenue guidance.
Danaher (DHR) expects Q4 earnings and revenue to be below current analyst estimates.
H&R Block’s (HRB) revenue was short of expectations while their quarterly loss was in-line. Their estimates for 2009 bracket the current consensus.
National Semi (NSM) missed revenue and earnings numbers and issued downside guidance for Q3.
Morgan Stanley (MS) has predicted the SPX will rally 11% from last Friday’s close into the end of the year.
Barclays (BCS) predicts M&A activity, which is already down 36% so far this year, will decline 30% next year.
AutoZone (AZO) has posted a decline in Q1 profits amid higher expenses and weak domestic same-store sales.
Chrysler and China’s Chery have called off talks on cooperation, blaming global economic crisis.
Jarden (JAH) predicted Q4 revenue comes in below expectations.
Moody’s has slashed the ratings on Tribune Co. and said it will withdraw earnings altogether after the newspaper publisher filed for bankruptcy. I’m not sure what we’d do with companies like Moody’s.
Pep Boys (PBY) narrowed their Q3 loss.
Methode Electronics (MEI) Q2 profit plunged on a mix of charges and weaker sales.
Molex (MOLX) has lowered its Q4 outlook on lower demand and plans to cut jobs.
Five states, including Ohio, are in danger of running out of funds they use to pay unemployment benefits, meaning they may have no choice but to increase taxes on employers, cut benefits for laid-off workers or borrow the cash.
Gold is down 1.2% and silver is down 2.9%.
Crude oil is up 11 cents to trade at 43.82.
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| UPGRADES | NHP, STLY, OCR, GMXR |
| DOWNGRADES | HOT, CNQR, CTXS, DIS, TXN, STP, BLK, RIO , ITW, MMM, UPS, RFMD, CBEY, ATU, ROP |
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| EARNINGS | |
| before the open | ALOG, AZO, HITK, KR, MEI, TTC, MTN |
| during trading | none |
| after the close | ADCT, ARST, COO, FNSR, GIII, OXM, PLL, PLAB, SAI |
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ECONOMIC RELEASES
10:00 Pending Home Sales
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