Good morning. Happy Wednesday.
Yesterday was an ‘inside day,’ so pressure is starting to build again for the next mini trend.
Today will start on a down note. Nas 100 futures are down 27.75 (2.45%) to trade at 1105.25 and SPX futures are down 17.50 (2.06%) to trade at 831.50.
The Asian/Pacific markets closed mostly up. China gained 4%…New Zealand 2.1%…Hong Kong and Japan rallied more than 1%. Taiwan lost 1.1%.
Europe, which of course is still open for trading, and therefore can reflect news out in the US, is mostly down. Austria and Amsterdam are down more than 2%…France, Germany, Italy, Spain and Switzerland are down more than 1%. Only Belgium is eking out a small gain.
…lots of negative news out of Europe….unexpected downward revisions in all of the European PMI service indexes which now show them contracting at a record pace, the weaker-than-expected Euro-Zone retail sales for Oct with the -0.8% m/m drop the biggest monthly decline in 22 months and the UK PMI service index falling to its lowest level since the index was created in 1996.
The Australian Q3 GDP came in weaker than expected, the weakest in 8 years.
Honda reported US car sales are the weakest since 1981…stock is at a 7-year low in Japan.
Thailand’s central bank slashed interest rates by the largest amount in eight years, attempting to stave off recession as the economy reels from the global downturn and a weeklong shutdown of Bangkok’s airports by anti-government protesters.
Swedish truckmaker Scania AB on Wednesday said it will halt its truck production in Europe for one month because of a drop in orders.
Research in Motion (RIMM) is trading 11% lower in Europe this morning after saying Q3 profit rose to no more than 83 cents a share, missing estimates of 97 cents.
General Motors (GM) and Ford (F) rallied yesterday when House Speaker Pelosi said bankruptcy is not an option (I think it’s the best option), but GM is trading down in Europe after the automaker told Congress they must have $4 billion this month and $4 billion next month to stay in business.
According to the Wall Street Journal, Goldman Sachs (GS) is considering an internet banking option.
SVB Financial Group (SIVB), the parent of Silicon Valley Bank, said Wednesday it received preliminary approval to obtain up to $235 million as part of the government’s bank investment program.
United Bankshares (UBSI) said it received preliminary approval to receive up to $197.3 million as part of the government’s bank investment program.
Defense contractor Lockheed Martin (LMT) said late Tuesday it received a NASA contract to build at least two spacecraft for the National Oceanic and Atmospheric Administration; it’s worth up to $1.09 billion.
Bucyrus International (BUCY) has completed its acquisition of OKD, Bastro a.s., a European company that provides engineering services and manufacturing support.
The CFO of Christopher & Banks (CBK) is resigning for personal reasons.
Video-game publisher Electronic Arts (ERTS) said it completed the purchase of Korean online game developer J2MSoft Inc. for an undisclosed sum.
Electricite de France SA said Wednesday it will challenge famed investor Warren Buffett’s planned takeover of U.S. wholesale power generator Constellation Energy (CEG) by offering $4.5 billion for half of the company’s nuclear power business.
Gaylord Entertainment (GET) continued its efforts to suppress any hostile takeover offers, rejecting a bid by its largest shareholder to boost its stake and replace three board members.
Infineon Technologies (INF) 4Q loss widens to $969M due to a write-down on its stake in Qimonda and lower chip prices on the global market. This is the seventh consecutive quarterly loss.
American Capital (ACAS) and European unit are cutting a combined 19 percent of work force and closing 2 offices.
Melco Crown Entertainment (MPEL) said Wednesday that it will start offering some monthly unpaid leave and an optional voluntary sabbatical leave to its Crown Macau workers.
Hillenbrand (HI) expects fiscal 2009 adjusted profit will match or beat prior-year results.
Gold is down 1.57% and silver down 1.36%.
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Crude oil up 9 cents to trade at $47.05.
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| UPGRADES | PFE, BK, RCRC, DRI, BBBY, CTAS |
| DOWNGRADES |
OVTI, NZ, DBRN, LHCG, NGG, XNPT, OVTI |
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| EARNINGS | |
| before the open | DLM, POWL, SYNO |
| during trading | THO |
| after the close | ARO, AVAV, CWST, CASY, PSS, CPRT, DMND, DDMX, GIL, JAS, SNPS |
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ECONOMIC RELEASES
8:15 ADP Employment
8:30 Productivity-Rev.
10:00 ISM Services
14:00 Fed’s Beige Book
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