Good morning. Happy Thursday. It’s not a happy day for markets around the world.
The Asian/Pacific markets melted down today. Japan and Seoul dropped more than 6%. Australia, Hong Kong and Taiwan fell more than 4%. India and Singapore down more than 3%. New Zealand and Indonesia fell more than 2%. And everything else dropped at least 1%.
Europe isn’t quite as bad, but losses are still steady and across the board. Austria and the Swiss market are down more than 3%. Belgium, France, Amsterdam and Norway are down more than 2%. Everything else including Germany, Italy, Spain, Stockholm and London are down more than 1%.
35 minutes before the open, futures here in the States indicate a gap down open for the cash market. Nas 100 futures are down 24.5 (2.25%) to trade at 1068 are and SPX futures are down 19 (2.34%) to trade at 793.5.
Rolls-Royce plans to cut up to 2,000 jobs next year as demand for its products slumps amid the global economic downturn.
French automaker PSA Peugeot Citroen said Thursday it plans to cut 2,700 jobs in response to the worsening economic crisis that has seen European car sales plummet.
Japan’s exports plunge by most in 7 years as country posts trade deficit in October.
Jobless claims jump unexpectedly to 16-year high as labor market weakens rapidly.
Citigroup (C) is up before the open – word is Saudi Prince Alwaleed plans to boost his stake in the company back up to 5%.
Suntech Power (STP) lowered its 2008 revenue forecast due to concerns over the weakened euro compared with the U.S. dollar and the tightening credit markets which have driven down sales prices and caused some customers to defer orders.
Wet Seal (WTSLA) said it returned to profitability in its Q3 due to lower charges and the lack of expenses related to a change in the company’s leadership that weighed down results a year ago. They also issued Q4 profit guidance below Wall Street estimates.
ImClone (IMCL) said it received approval to make three cancer drug candidates at a facility in New Jersey
Brady (BRC) reported a 2 percent gain in fiscal first-quarter profit as cost-savings measures and a lower tax rate helped lift results. They also plan to cut its global workforce by about 10% and undertake other measures to reduce costs.
Shares of Royal Bank of Scotland soared on expectations stockholders will approve a $30 billion gov’t investment.
Hot Topic’s (HOTT) Q3 earnings beat expectations, and they reiterated Q4 guidance.
PetSmart (PETM) reported a solid Q3 but said they were not immune to the economy and reduced capital spending and lowered its outlook slightly for the year.
GMAC Financial Services has applied to the Federal Reserve to become a bank holding company which will enable it to be eligible for aid under the Treasury’s $700 billion bank rescue plan.
Standard & Poor’s has lowered its outlook on Host Hotels & Resorts (HST) on the likelihood its revenue will continue to soften next year.
Wal-Mart (WMT) says it has invested in a wind energy farm in Texas that will generate enough power to light 54 of its stores.
Stage Stores (SSI) said it expects its Q4 sales and profit to decline due to the difficult economic environment for retailers.
Pepsi (PEP) said it will reaffirm its full-year profit guidance at a Morgan Stanley investor conference Thursday.
Limited Brands (LTD) posted better-than-expected Q3 earnings but lowered its full-year earnings forecast.
Gold is up 1.4%…silver up 1.74%.
Crude oil is 1.75 to trade at $51.87.
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| UPGRADES | KOF, BIDU, YHOO, VLCCF, ODFL, MFB, HOTT, GET, BYI, BW, BLT, SCHW, WIN, GYMB, DSX, AWC, SXL |
| DOWNGRADES | TARG, WGOV, KANA, ACTU, SNDK, SAP, RSCR, CCO, DCM, AMED, NMM, PAY, EGLE |
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| EARNINGS | |
| before the open | AGYS, STST, BKS, BONT, BRC, CTR, PLCE, DKS, EJ, FRE, GME, GCO, GRB, GSIG, HP, ITWO, IDEV, IUSA, LTXX, LULU, MPR, NWY, PTRY, PPC, SBH, SCHS, SCVL, SSI, SMRT, STP, SCMR, BKE, TDG, WTSLA |
| during trading | none |
| after the close | ARAY, ARUN, ADSK, BRCD, JRJC, CHRD, CPWM, DELL, DDS, DITC, FL, GPS, HIBB, HRAY, JCG, CRM, ZUMZ |
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ECONOMIC RELEASES
8:30 Initial Claims
10:00 Leading Indicators
10:00 Philadelphia Fed
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