ALPHA CENTAURO

octubre 30, 2009

Bill Gross 3Q Letter

Filed under: Uncategorized — CMARINETTI @ 3:36 pm

http://www.pimco.com/LeftNav/Featured+Market+Commentary/IO/2009/Midnight+Candles+Gross+November.htm

 

octubre 23, 2009

Oct 23 – Noticias antes de apertura

Filed under: Uncategorized — CMARINETTI @ 12:37 pm
  • Feinberg unveils pay cuts. So-called pay czar Kenneth Feinberg outlined much-awaited compensation rules for seven TARP recipient firms; top executives at firms such as Citigroup (C), AIG (AIG) and Bank of America (BAC) will have a pay cap of $500K – for many a 90%-plus reduction. Also, rather than cash, the rules require that the majority of salaries be paid in stock held for the long-term. The rules are only valid for two months – November and December – but will also form the basis for next year’s reviews. Feinberg said the rulings are significant, and hopes his standards, which seek to strike a balance between compensation and risk-taking, will be “voluntarily picked up in the marketplace.” In a brief statement, Treasury Secretary Tim Geithner said he hopes the new framework will encourage these companies to “return taxpayer dollars as soon as possible.”
  • Fed proposes compensation checks. While Feinberg was busy administering to TARP recipient firms, the Fed proposed a framework to crack down on pay packages that encourage bankers to take excessive risks by subjecting executives, traders and dealmakers’ compensation to regulatory scrutiny. Instead of pay limits, the Fed’s plan is to monitor pay practices at the nation’s 28 biggest institutions, making sure compensation structures reward executives for long-term performance and discourage excessive risk-taking. Skeptics worry firms will continue to outsmart regulators in finding inventive ways to circumvent restrictions. (read the Fed’s press release, proposal (.pdf), and Q&A (.pdf))
  • Britain mired in recession. U.K. GDP dropped a surprising 0.4% in Q3, according to the Office for National Statistics, the sixth straight quarter of contraction. Economists had expected the British economy to move back to timid growth of 0.2%. Six quarters is the longest string of declines on record, while the 5.9% peak-to-trough drop in output is just short of the 6% contraction recorded in the recession of the early 1980s. The pound (ETF: FXB) fell like a stone following the report (-1% at 5:00 a.m.), retreating from a six-week high. (read ONS’s preliminary GDP estimate (.pdf))
  • CIT, Goldman near deal. After a week of tense negotiations, sources say CIT Group (CIT) and Goldman Sachs (GS) have reached an agreement over a $1B “make whole” payment CIT would owe Goldman if it files for bankruptcy, connected to a $3B credit facility Goldman extended it last year. The deal calls for Goldman to reduce the facility to just over $2B, and for CIT to pay Goldman $300M if it files for bankruptcy. An agreement opens the door for CIT to strike a deal with its bondholders, who were waiting on the outcome of the Goldman talks; it could also reduce CIT’s need for financing from $6B to $4B.
  • Nokia wants Apple to pay its dues. Nokia (NOK) filed a patent suit against Apple (AAPL) Thursday, claiming the iPhone violates 10 patents for GSM, UMTS and wireless LAN technologies. Nokia said it has repeatedly asked Apple to license its patents, which it developed as part of a consortium of global telecommunications companies, and says Apple is “attempting to get a free ride” on the back of its innovation. Cellphone royalties typically run at 1-2% of the wholesale price, estimated at $600 for the iPhone; a 2% royalty would put $12 per iPhone in Nokia’s pockets.
  • Book price-war under review. The American Booksellers Association asked the Department of Justice to investigate this week’s book price-war between Amazon.com (AMZN), Wal-Mart (WMT) and Target (TGT), claiming it constitutes illegal predatory pricing that is damaging to the book industry and harmful to consumers. If the trio is allowed to continue selling hot-item books for under $10, the net result “will be the closing of many independent bookstores and a concentration of power in the book industry in a very few hands,” it said. While mega-retailers can use book sales as a loss leader to drive traffic, independent bookstores rely almost entirely on profits from books. (read the ABA’s letter to the DoJ)
  • Amazon: emerging juggernaut. Amazon (AMZN) announced Q3 results that exceeded expectations, including a 28% jump in sales, and offered Q4 guidance that was well above analyst consensus, sending shares up over 14% in after-hours trade (see below). Electronics and other general merchandise (EGM) now accounts for 43% of Amazon’s sales, vs. 54% for media. The rate of EGM growth (44%) versus that of media (17%) signifies the online retailer’s rapid and successful transition from a bookseller to an “everything store,” which will become even more pronounced once it completes acquiring Zappos in Q4. (read Amazon’s Q3 earnings call transcript)
  • Merck/Schering merger wins EC approval. The European Commission cleared Merck’s (MRK) bid to buy Schering-Plough (SGP) in a deal worth more than $41B. “The proposed transaction would not significantly impede effective competition in the European economic area or any substantial part of it,” the EC said. Merck agreed to sell its half of the Merial animal health business to Sanofi-Aventis (SNY), its JV partner, for $4B in order to meet antitrust requirements. The merged companies will cut 15% of their combined workforces.
  • Fed’s Evans warns of weak recovery: The Fed will be in no rush to withdraw fiscal stimulus, Chicago Fed president Charles Evans said yesterday, warning the recovery “is going to be very unsatisfactory in 2010.” With weak labor markets and plenty of idle factory capacity, there is a sufficient slack in the economy to set aside inflation fears, he said. If anything, low levels of inflation are a concern.
  • BP mulls rival bid for Jubilee. Sources say BP (BP) has hired Goldman Sachs (GS) to advise it on a rival bid to ExxonMobil’s (XOM) $4B deal to purchase Kosmos Energy’s stake in Ghana’s Jubilee field. Goldman reportedly advised Cnooc (CEO) on a potential bid for the same stake. Cnooc’s attempt is thought to have been hampered by its relative inexperience in developing such a large field, and Goldman’s switch to advising BP implies a Cnooc bid is not forthcoming, analysts say.
  • Sept. Leading Indicators: The Conference Board’s Leading Indicators Index came in at +1%, vs. +0.6% in August and consensus of +0.8%. With the sixth consecutive increase, the six-month growth rate is now at the highest pace since 1983. The numbers suggest a strong recovery is developing, the group says, but notes “the continued downtrend in employment is keeping this index of current economic conditions from rising faster.”

Earnings: Fri. Before Open

  • Cache (CACH): Q3 EPS of -$0.43 misses by $0.23. Revenue of $44.9M (-22.7%) vs. $48.3M. (PR)
  • Dover (DOV): Q3 EPS of $0.58 beats by $0.10. Revenue of $1.5B (-23.7%) in-line. (PR)
  • Honeywell (HON): Q3 EPS of $0.76 beats by $0.04. Revenue of $7.7B (-17%) vs. $7.88B. (PR)
  • Ingersoll-Rand (IR): Q3 EPS of $0.70 beats by $0.09. Revenue of $3.48B (-19.2%) vs. $3.56B. Sees 2010 EPS of $2.00-2.40 vs. consensus of $1.98. “The outlook for the strength and timing of the global economic recovery and the performance of our end markets remains cloudy. A preliminary review of our internal cost reduction and productivity improvement actions for next year gives us confidence that we can grow our earnings for 2010 even if our markets remain weak.” (PR)
  • Schlumberger (SLB): Q3 EPS of $0.65 beats by $0.02. Revenue of $5.43B (-25.2%) in-line. (PR)
  • Whirlpool (WHR): Q3 EPS of $1.15 beats by $0.38. Revenue of $4.5B vs. $4.28B. Continues to see uncertain and volatile demand levels in many markets. (PR)

Earnings: Thur. After Close

  • Amazon.com (AMZN): Q3 EPS of $0.45 beats by $0.12. Revenue of $5.5B (+28%) vs. $5B. Sees Q4 sales of $8.12B-9.12B vs. consensus of $8.11B. Shares +14.5% AH. (PR)
  • American Express (AXP): Q3 EPS of $0.44 beats by $0.06. Revenue of $6B (-16%) vs. $5.9B. Consolidated provisions for losses down 13% to $1.2B. Tier one risk-based capital ratio 9.7%. Sees “broad-based improvements in credit quality” and encouraging trends in spending. Shares -0.5% AH. (PR)
  • Broadcom (BRCM): Q3 EPS of $0.16 beats by $0.05. Revenue of $1.25B (-.35%) vs. $1.16B. Sees Q4 revenue flat sequentially. Shares -8.3% AH. (PR)
  • Bucyrus International (BUCY): Q3 EPS of $1.21 beats by $0.35. Revenue of $676M (+5%) vs. $623M. (PR)CA Inc. (CA): FQ2 EPS of $0.42 beats by $0.02. Revenue of $1.07B (+1%) in-line. Shares +2.3% AH. (PR)
  • Burlington Northern Santa Fe (BNI): Q3 EPS of $1.48 beats by $0.20. Revenue of $3.6B (-27%) in-line. Shares -1.9% AH. (PR)
  • Capital One (COF): Q3 EPS of $0.94 beats by $0.80. Revenue of $$4.6B (+11.7%) vs. $4.11B. “We are successfully weathering the storm, but the storm is not over.” Shares +8.5% AH. (PR)
  • Cheesecake Factory (CAKE): Q3 EPS of $0.29 beats by $0.05. Revenue of $401M (-1%) vs. $397M. Comparable same-store sales down 2.8%. Shares +2.4% AH. (PR)
  • Chubb (CB): Q3 EPS of $1.56 beats by $0.29. Total net written premiums of $2.7B (-7%). Raises full-year EPS guidance to $5.90-6.00 from $5.20-5.50, vs. $5.51. Shares -1.74% AH. (PR)
  • Compuware (CPWR): FQ2 EPS of $0.12 beats by $0.04. Revenue of $218M (-19%) vs. $201M (one estimate). Shares +5.3% AH. (PR)
  • Developers Diversified Realty (DDR): Q3 FFO of $0.44 beats by $0.01. Revenue of $202M (-9%) vs. $194M. Shares +1.1% AH. (PR)
  • Eastman Chemical Company (EMN): Q3 EPS of $1.38 beats by $0.25. Revenue of $1.3B (-27%) in-line. Sees Q4 EPS of $0.85 vs. $0.79. Shares +3.2% AH. (PR)
  • Emulex (ELX): FQ1 EPS of $0.08 beats by $0.02. Revenue of $86M (-23%) vs. $81M. Sees Q2 revenues of $88M-92M vs. $87M. Shares +2% AH. (PR)
  • Informatica (INFA): Q3 EPS of $0.22 beats by $0.02. Revenue of $123M (+8%) vs. $120M. Shares -2.1% AH. (PR)
  • Interactive Brokers (IBKR): Q3 EPS of $0.20 misses by $0.11. Revenue of $272M (-45.3%) vs. $298M. Market making income -47% Q/Q and -74% Y/Y due to tighter bid/offer spreads on options. Shares -7.2% AH. (PR)
  • Juniper Networks (JNPR): Q3 EPS of $0.23 beats by $0.03. Revenue of $824M (-13%) vs. $797M. Shares +1.6% AH. (PR)
  • Lattice Semiconductor (LSCC): Q3 EPS of $0.00 beats by $0.02. Revenue of $49M (-15%) vs. $47M. Shares +5.6% AH. (PR)
  • Leggett & Platt (LEG): Q3 EPS of $0.34 beats by $0.06. Revenue of $810M (-28%) vs. $840M. Raises full-year EPS guidance to $0.65-0.75 from $0.55-0.70, vs. $0.64. Shares +0.5% AH. (PR)
  • MEMC Electronic Materials (WFR): Q3 EPS of -$0.29 misses by $0.23. Revenue of $310M (-43%) vs. $302M. Shares -3.8% AH. (PR)
  • Netflix (NFLX): Q3 EPS of $0.52 beats by $0.06. Revenue of $423M (+3.6%) vs. $420M. Subscriber acquisition cost $26.86 per addition vs. $32.21 a year ago. Churn was 4.4% vs. 4.2% a year ago. Shares -3.3% AH. (PR)
  • PMC Sierra (PMCS): Q3 EPS of $0.15 beats by $0.01. Revenue of $131M (-6%) in-line. Shares -0.6% AH. (PR)
  • Rambus (RMBS): Q3 EPS of -$0.26 misses by $-0.02. Revenue of $28M (-5%) vs. $27.6M (one estimate). Shares -0.3% AH. (PR)
  • Riverbed Technology (RVBD): Q3 EPS of $0.19 beats by $0.04. Revenue of $103M (+18%) vs. $97M. Shares +0.8% AH. (PR)
  • Sunpower (SPWRA): Q3 EPS of $0.42 beats by $0.02. Revenue of $466M (+23%) vs. $420M. Shares -11.4% AH. (PR)
  • Synaptics (SYNA): FQ1 EPS of $0.48 beats by $0.06. Revenue of $120M (+3%) vs. $116M. Expects Q2 revenue of $128M-134M vs. $137M. Shares +10.1% AH. (PR)
  • Synovus Financial (SNV): Q3 EPS of -$1.27 misses by $0.60. Net interest income of $758M (-8%). Shares -7.6% AH. (PR)
  • Western Digital (WDC): FQ1 EPS of $1.25 beats by $0.31. Revenue of $2.2B (+4.3%) vs. $2.06B. Says demand remains strong. Shares +1.3% AH. (PR)

Today’s Markets

Overseas markets echoed U.S. gains Friday. Futures are marginally higher in light overnight action.

  • Asia: Nikkei +0.1% to 10283. Hang Seng +1.7% to 22590. Shanghai +1.9% to 3108. BSE +0.1% to 16811.
  • Europe at midday: London +1.1%. Paris +0.9%. Frankfurt +0.9%.
  • Futures: Dow -0.05% at 10033. S&P -0.1% to 1090. Nasdaq +0.1%. Crude -0.1% to $81.10. Gold +0.2% to $1,061. 30-year Tsy -0.18% to 119-13. 10-year -0.263%. 5-year -0.19%. 2-year -0.07%. Euro +0.1% vs. dollar. Yen -0.4%. Pound -1.4%.

Friday’s Economic Calendar

octubre 22, 2009

Oct 22 – Noticias antes de apertura – Jobless claims peor de lo esperado pero muchas compañías reportando mejor de los esperado…

Filed under: Uncategorized — CMARINETTI @ 12:43 pm
  • U.S. AAA rating not guaranteed. The U.S. could lose its AAA rating if it fails to reduce its deficit over the next 3-4 years, Moody’s says. Steven Hess, Moody’s lead analyst for the U.S., acknowledges reducing the gap won’t be easy: “Raising taxes is never popular and difficult politically, so we have to see if the government can do that or cut expenditures.” Earlier this year, markets were spooked after S&P cut its outlook on Britain to Negative from Stable. Meanwhile, Moody’s said today European countries’ rising debt won’t trigger across-the-board downgrades.
  • Deep pay cuts coming to TARP recipients. In a plan to be made public within the next few days, the government will order deep pay cuts at the biggest bailout recipients – Citigroup (C), Bank of America (BAC), AIG (AIG), GM, Chrysler, GMAC and Chrysler Financial. The plan targets the 25 top earners at each company, who will see their compensation decline this year by about 50%, while bonus payments will be slashed by up to 90%, to be replaced by stock that they’ll be restricted from immediately selling. The plan does not address firms that didn’t receive bailout funds, or that have already repaid their loans.
  • South Korea’s $3.9B oil buy. State-owned Korea National Oil Corp. agreed to buy Canada’s Harvest Energy (HTE) for $3.9B – $1.7B for its outstanding shares and the assumption of $2.2B in debt. Shareholders will receive $9.52/share – a 37% premium to Wednesday’s close. The deal is South Korea’s biggest outbound cross-border deal ever in the Oil & Gas sector, and ranks seventh in global Oil & Gas sector M&A transactions in 2009. Harvest produced 53K b/d in Q2, 70% of which was crude oil and 30% was natural gas. Shares +29.1% premarket to $9.05.
  • Bove drops a bomb. Rochdale Securities analyst Richard Bove sent stocks into a tailspin late Wednesday after he downgraded shares of Wells Fargo (WFC) to Sell, despite a consensus-beating Q3. Bove is concerned by the positive impact mortgage hedges have had on Wells’ recent results, which “keep coming through for the company whenever it needs to bolster earnings,” but are a nightmare for investors who shouldn’t look at such activity as generating predictable or repeatable profits. Bove also called the portfolio Wells acquired from Wachovia ‘cancerous.’ WFC -5.1% yesterday.
  • eBay falters on gloomy outlook. eBay (EBAY) posted Q3 earnings that exceeded expectations, but shares traded lower after-hours after its guidance gave a gloomier vision of the near future than many expected (read eBay’s Q3 earnings call transcript). eBay has struggled as online shopping habits have shifted away from auctions to fixed-price purchases on sites such as Amazon.com (AMZN).
  • Beige Book sees signs of growth. The Fed said most regional economies are on the mend, as home sales rebound and manufacturers restart idled operations. “Reports of gains in economic activity generally outnumber declines, but virtually every reference to improvement was qualified as either small or scattered,” the Fed said in its beige book tally. The report also highlighted how heavily businesses are relying on government spending: “There were several reports that the only ‘sure’ business will come from government stimulus projects, although funding for such projects has been slow to materialize,” it said.
  • Microsoft’s big day. Microsoft’s much-anticipated OS upgrade, Windows 7, goes on sale today. The company hopes Windows 7 will gain more traction among retail and corporate clients than its most predecessor, Vista, which was seen as slow and clunky. Analysts say the new OS isn’t likely to cause a sudden spike in PC sales, a point conceded by Microsoft CEO Steve Ballmer, who said recently IT budgets “aren’t going to rise just because we shipped a new version.”
  • Twin deals for Twitter. Twitter inked deals to sell the rights to mine its pipeline of ‘tweets’ with both Google (GOOG) and Microsoft (MSFT) Wednesday, underscoring the growing importance of real time search. Neither would say how much it’s paying for the rights to index the millions of daily tweets, considered to be Twitter’s most valuable asset. The deals could be the first meaningful revenue for Twitter since its 2006 inception, and begin to answer the much-explored question of “where’s the beef?”
  • A strong Q3 for China. China’s Q3 GDP came in at 8.9%, just below the 9% economists forecast. Separate reports showed industrial production and retail sales also accelerated. China’s return to robust growth continues to raise the question of when policy makers will withdraw record fiscal and monetary stimulus in order to avoid another bubble.
  • Galleon wind down begins. Managers of Galleon Group’s $500M Asia fund are considering buying the unit, sources say. On Wednesday, Galleon told employees and investors it would wind down the firm after its founder was charged with insider trading. Unless the government intervenes, investors likely won’t get their money back until Jan. 1, 2010.

Earnings: Thur. Before Open

  • 3M Company (MMM): Q3 EPS of $1.37 beats by $0.20. Revenue of $6.19B (-5.6%) vs. $5.77B. Shares +1.2% premarket. (PR)
  • AT&T (T): Q3 EPS of $0.54 beats by $0.04. Revenue of $30.9B (-1.3%) in-line. Wireless subscribers +2M to 81.6M. Shares +2% premarket. (PR)
  • AU Optronics (AUO): Q3 EPS of $0.26 beats by $0.01. Revenue of $3.5B (+8.4%) vs. $3.21B. Operating margin 6.8%. Shares -2.3% in Taiwan. (PR)
  • Bristol-Myers (BMY): Q3 EPS of $0.52 beats by $0.01. Revenue of $5.49B (+4.4%) in-line. (PR)
  • Bunge (BG): Q3 EPS of $1.62 beats by $0.15. Revenue of $11.3B (-23.6%) vs. $12B. Sees full-year EPS of $3.10-$3.50 vs. consensus of $4.69. Says fertilizer business continues to be pressured by high-cost inventory and a weak pricing environment. (PR)
  • Check Point Software (CHKP): Q3 EPS of $0.52 beats by $0.03. Revenue of $234M (+17%) vs. $231M. (PR)
  • Cooper Industries (CBE): Q3 EPS of $0.70 beats by $0.06. Revenue of $1.29B (-25.6%) in-line. “Revenue and orders for maintenance and repair items and product lines that declined rapidly at the beginning of the economic downturn are beginning to improve, while the longer cycle products appear to have now bottomed.” Shares -0.3% premarket. (PR)
  • Danaher (DHR): Q3 EPS of $0.89 beats by $0.03. Revenue of $2.75B (-14.2%) in-line. (PR)
  • Delta Air Lines (DAL): Q3 EPS of $0.06 beats by $0.11. Revenue of $7.57B (+32.4%) in-line. (PR)
  • Diamond Offshore Drilling (DO): Q3 EPS of $2.62 beats by $0.32. Revenue of $908M (+0.9%) vs. $874M. Declares special dividend of $1.875/share. (PR)
  • Dow Chemical (DOW): Q3 EPS of $0.24 beats by $0.14. Revenue of $12.05B (+6.4%) vs. $11.85B. “The economic outlook for the rest of 2009 appears to be stabilizing with strong growth in Asia Pacific, especially China, and other emerging geographies. The global economy is now on firmer footing, and, in our view, the U.S. economy is beginning a slow and tenuous recovery, with unemployment continuing to be a drag on consumer spending.” (PR)
  • EMC (EMC): Q3 EPS of $0.23 beats by $0.02. Revenue of $3.52B (-5.3%) vs. $3.45B. Says customers are signaling more comfort spending their IT budgets. Shares +1.5% premarket. (PR)
  • Ensco International (ESV): Q3 EPS of $1.05 beats by $0.01. Revenue of $425M (-31.3%) vs. $439M. (PR)
  • Entergy (ETR): Q3 EPS of $2.40 misses by $0.08. Revenue of $2.94B (-25.9%) vs. $3.9B. “We continue to experience the negative effects of the slowed economic recovery.” (PR)
  • Ericsson (ERIC): Q3 EPS of 0.25kr misses by 0.61kr. Revenue of 46.4Bkr (-5.7%) vs. 49.46Bkr. “Sales of network equipment declined due to lower demand in the current tougher market environment. Despite lower volumes, Network margins remain stable.” Shares -8.9% premarket. (PR)
  • Fifth Third Bancorp (FITB): Q3 EPS of -$0.20 beats by $0.03. Revenue of $M in-line. “The credit environment remains challenging, and we continue to aggressively work to manage risk in the portfolio.” Shares -2.1% premarket. (PR)
  • Goodrich (GR): Q3 EPS of $1.12 beats by $0.09. Revenue of $1.65B (-7%) in-line. (PR)
  • IMS Health (RX): Q3 EPS of $0.40 beats by $0.04. Revenue of $541M (-5.7%) vs. $522M. (PR)
  • Kimberly-Clark (KMB): Q3 EPS of $1.40 beats by $0.27. Revenue of $4.91B (-1.7%) in-line. Sees full-year EPS of $4.50-$4.60 vs. consensus of $4.26, citing increased cost savings, better organic sales growth and a further recovery in currency exchange rates. Shares +5.5% premarket. (PR)
  • Legg Mason (LM): FQ2 EPS of $0.30 beats by $0.11. Revenue of $660M (-31.7%) vs. $652M. (PR)
  • Logitech (LOGI): FQ2 EPS of $0.11 beats by $0.06. Revenue of $498M (-25.1%) vs. $474M. Sees FQ3 revenue of $575-595M vs. $623M. Shares +7.2% in Zurich. (PR)
  • McDonald’s (MCD): Q3 EPS of $1.15 beats by $0.04. Revenue of $6.05B (-3.5%) in-line. Comps +3.8%, with U.S. +2.5%, Europe +5.8% and the rest +2.2%. Shares +1.3% premarket. (PR)
  • Merck (MRK): Q3 EPS of $0.90 beats by $0.08. Revenue of $6.05B (+1.8%) in-line. (PR)
  • NII Holdings (NIHD): Q3 EPS of $0.69 beats by $0.14. Revenue of $1.14B (-3.5%) in-line. (PR)
  • Philip Morris (PM): Q3 EPS of $0.93 beats by $0.02. Revenue of $6.59B (-5.3%) vs. $6.71B. “While we experienced lower organic volume in the quarter, this was largely anticipated given our pricing actions and the on-going impact of the economic crisis on total consumption levels.” Shares +0.75% premarket. (PR)
  • PNC Financial Services (PNC): Q3 EPS of $1.00 beats by $0.69. Revenue of $4.05B (+144.7%) vs. $3.8B. (PR)
  • Potash (POT): Q3 EPS of $0.82 beats by $0.01. Revenue of $1.1B (-64.1%) in-line. Sees Q4 EPS of $0.65-0.85 vs. consensus of $1.18. “The uncertainty among fertilizer buyers has lasted far longer than we anticipated, but cannot continue indefinitely.” Shares -2.9% premarket. (PR)
  • Schering-Plough (SGP): Q3 EPS of $0.40 in-line. Revenue of $4.5B (-1.7%) in-line. (PR)
  • Starwood Hotels (HOT): Q3 EPS of $0.14 beats by $0.04. Revenue of $1.22B (-20.7%) vs. $1.16B. “It is very difficult at this time to provide any definitive point of view on 2010. While business conditions have clearly stabilized, it is very hard to forecast the pace of recovery, especially rate.” (PR)
  • SunTrust Banks (STI): Q3 EPS of -$0.60 misses by $0.05. Revenue of $1.94B (-21%) vs. $2.11B. Earnings include $131M writedown on debt. Allowance for loan losses +128M to $3.02B. (PR)
  • Terra Industries (TRA): Q3 EPS of $0.45 misses by $0.07. Revenue of $347M (-56.1%) vs. $356M. Shares +0.8% premarket. (PR)
  • Thermo Fisher (TMO): Q3 EPS of $0.78 beats by $0.02. Revenue of $2.53B (-2%) in-line. (PR)
  • Travellers (TRV): Q3 EPS of $1.61 beats by $0.30. Revenue of $6.3B vs. $6B. Sees full-year EPS of $5.30-5.50 vs. consensus of $5.28. Raises quarterly dividend to $0.33 from $0.30. Authorizes an additional $6B share buyback. “We remain cautious about the magnitude of rate gains that are achievable in the near term given general economic conditions.” (PR)
  • UPS (UPS): Q3 EPS of $0.55 beats by $0.03. Revenue of $11.15B in-line. Volume of 927M packages, -2.4%. “I’m encouraged by the signs of economic recovery that are becoming apparent, although we still have a long way to go,” CEO Scott Davis said. Shares -1% premarket. (PR)
  • Xerox (XRX): Q3 EPS of $0.14 beats by $0.02. Revenue of $3.67B (-15.9%) in-line. Sees full-year EPS of $0.55-0.57 vs. consensus of $0.53. (8-K)

Earnings: Wed. After Close

  • Alliance Data Systems (ADS): Q3 EPS of $0.83 misses by $0.51. Revenue of $483M (-5%) vs. $500M. Expects 2010 EPS of $6.00 vs. $6.10. Shares -6.3% AH. (PR)
  • Amgen (AMGN): Q3 EPS of $1.49 beats by $0.22. Revenue of $3.8B (-2%) in-line. Raises full-year EPS guidance to $4.90-5.05 from $4.80-4.95, vs. $4.88. Shares -3% AH. (PR)
  • Ameriprise Financial (AMP): Q3 EPS of $1.03 beats by $0.39. Revenue of $2B (+20%) vs. $2.1B. Debt-to-total-capital ratio of 18.7%. Shares +1.6% AH. (PR)
  • Citrix Systems (CTXS): Q3 EPS of $0.43 beats by $0.02. Revenue of $401M (+1%) vs. $400M. Sees full-year revenue up 8-9% sequentially to $1.73B. Shares -3.6% AH. (PR)
  • Covanta (CVA): Q3 EPS of $0.28 beats by $0.04. Revenue of $409M (-7%) vs. $388M. Shares +0.3% AH. (PR)
  • eBay (EBAY): Q3 EPS of $0.38 beats by $0.01. Revenue of $2.2B (+6%) vs. $2.1B. Shares -4.9% AH. (PR)
  • Equifax (EFX): Q3 EPS of $0.57 beats by $0.02. Revenue of $452M (-7%) in-line. Shares -3.2% AH. (PR)
  • F5 Networks (FFIV): FQ4 EPS of $0.50 beats by $0.09. Revenue of $175M (+2%) vs. $164M. Shares +8.1% AH. (PR)
  • Fidelity National Information Services (FIS): Q3 EPS of $0.46 misses by $0.01. Revenue of $851M (-4%) vs. $870M. Shares -0.4% AH. (PR)
  • Fidelity National Financial (FNF): Q3 EPS of $0.32 misses by $0.02. Revenue of $1.5B (+52%) in-line. Shares +0.2% AH. (PR)
  • Intersil (ISIL): Q3 EPS of $0.10 in-line. Revenue of $168M (-23%) vs. $162M. Sees Q4 EPS of $0.14-0.17 vs. $0.13. Shares -2.8% AH. (PR)
  • Knight Transportation (KNX): Q3 EPS of $0.16 in-line. Revenue of $173M (-17%) vs. $165M. Shares +1.2% AH. (PR)
  • Lam Research (LRCX): FQ1 EPS of $0.03 beats by $0.11. Revenue of $319M (+46%) vs. $288M. Shares +3.2% AH. (PR)
  • Newfield Exploration (NFX): Q3 EPS of $1.58 beats by $0.24. Revenue of $375M (-45%) vs. $536M. Shares -0.1% AH. (PR)
  • Noble (NE): Q3 EPS of $1.63 beats by $0.10. Revenue of $906M (+5%) in-line. Shares +1.1% AH. (PR)
  • Novellus Systems (NVLS): Q3 EPS of -$0.03 beats by $0.01. Revenue of $177M (-29%) vs. $172M. Shares +0.9% AH. (PR)
  • OSI Pharmaceuticals (OSIP): Q3 EPS of $0.81 beats by $0.49. Revenue of $111M (+18%) vs. $106M. Shares -1% AH. (PR)
  • Pactiv (PTV): Q3 EPS of $0.54 beats by $0.03. Revenue of $839M (-9%) vs. $858M. Shares -0.2% AH. (PR)
  • QLogic (QLGC): FQ2 EPS of $0.21 beats by $0.03. Revenue of $132M (-23%) vs. $126M. Shares -2.6% AH. (PR)
  • Range Resources (RRC): Q3 EPS of $0.26 beats by $0.04. Revenue of $204M (-67%) vs. $261M. Shares -0.2% AH. (PR)
  • Skechers (SKX): Q3 EPS of $0.52 beats by $0.17. Revenue of $405M (+1%) vs. $385M. Shares +5.2% AH. (PR)
  • Terex (TEX): Q3 EPS of -$0.95 misses by $0.61. Revenue of $1.2B (-51%) vs. $1.3B. Shares -10.5% AH. (PR)
  • TriQuint Semiconductor (TQNT): Q3 EPS of $0.10 in-line. Revenue of $173M (-7%) vs. $178M. Shares -19.9% AH. (PR)
  • VMware (VMW): Q3 EPS of $0.24 beats by $0.04. Revenue of $490M (+4%) vs. $474M. Sees Q4 revenue of v$540M-560M vs. $523M. Shares +1.6% AH. (PR)

Today’s Markets

Asian and European markets followed the U.S. into the red Thursday. Stock futures are marginally lower.

  • Asia: Nikkei -0.64% to 10,267. Hang Seng -0.48% to 22,211. Shanghai -0.62% to 3,051. BSE -1.29% to 16,790.
  • Europe at midday: London -1.2%. Paris -1.5%. Frankfurt -1.5%.
  • Futures at 7:00: Dow flat at 9897. S&P -0.1% to 1076.50. Nasdaq -0.2%. Crude -1.2% to $80.40. Gold -0.7% to $1,056.70. 30-year Tsy +0.13%. Euro -0.4% vs. dollar. Yen -0.3%. Pound -0.6%.

Thursday’s Economic Calendar

octubre 21, 2009

Oct 21 – Noticias/ Earnings Report Antes de Apertura

Filed under: Uncategorized — CMARINETTI @ 1:01 pm
  • King: Break up the banks! Bank of England Governor Mervyn King stepped up his call to break apart Britain’s largest banks, saying more stringent capital requirements won’t shield taxpayers from having to bail out more too-big-to-fail banks in the future. “The massive support extended to the banking sector around the world, while necessary to avert economic disaster, has created possibly the biggest moral hazard in history,” King said in a speech (.pdf) late Tuesday. His comments were at odds with those of Chancellor of the Exchequer Alistair Darling, who said yesterday focusing on capital rules may be enough to ward off future crises. Meanwhile, on this side of the Atlantic, Paul Volcker keeps pounding the desk to split up banks, but no one’s listening.
  • State Street slapped with fraud suit. The California AG’s office charged State Street (STT) with fraud Tuesday, accusing it of bilking the state’s two largest pension funds – Calpers and Calstrs – of $57M, and seeking $200M in overcharges and penalties (complaint (.pdf)). The lawsuit stems from an inquiry launched after a whistleblower claimed State Street secretly and substantially marked up the price of its currency trades. State Street beat Q3 earnings estimates Tuesday, but shares dived 8.4% on news of the lawsuit and a sobering outlook.
  • Yahoo defies bears. Shares of Yahoo (YHOO) are up 4.6% premarket after the internet giant beat Q3 earnings estimates handily with the help of some serious cost cutting ($0.13/share vs. $0.06), while revenue was steady from last quarter at $1.13B. “There’s a change occurring in Yahoo,” CFO Tim Morse said on Yahoo’s earnings call (transcript), “that will value that kind of work – that good old-fashioned, get-your-hands-dirty kind of find ways to take costs down or make sure that they don’t go up as much as they otherwise would have – type work.” Analysts were impressed with the quarter, but said the real test of Yahoo’s massive branding initiative would come in Q4. Bernstein’s Jeffrey Lindsay summed it up: “The patient is off life support and back in the recovery ward. But it is certainly not out playing soccer again.”
  • Shedding light on the dark pools. In an effort to bring transparency to famously opaque “dark pool” off-exchange trading cliques on which Wall Street firms execute some of their largest trades, the SEC will reportedly today propose slashing the percent of daily volume in a company’s shares that can be executed on the systems before quotes must be publicized to 0.25% from 5%. The move would force dark pools to either bring their prices in line with open markets, or risk losing their order flow. Trading executives warn sweeping rule changes could ultimately hurt the investors regulators are trying to empower.
  • AT&T sues LCD makers over price fixing. AT&T (T) sued Samsung Electronics, LG Display (LPL), AU Optronics (AUO) Corp. and other LCD manufacturers, claiming they colluded to fix prices of panels sold in the U.S. “The conspiracy included communications and meetings in which defendants agreed to eliminate competition and fix the prices of LCD panels that were ultimately incorporated into LCD products that they knew would be sold in California and the U.S.,” according to the complaint.
  • Logi offer: does it make sense? An obscure hedge fund – logi Energy – said it offered to buy $1B of CIT Group’s (CIT) debt, but wouldn’t identify its source of capital. Logi said the deal could give CIT “wiggle room” as it works to sidestep bankruptcy. CIT wouldn’t comment on whether it was seriously considering the offer.
  • Volvo sale hits snag. Sources say China carmaker Geely’s $2B attempt to buy Ford’s (F) Volvo unit is in danger of stalling over disagreements about intellectual property rights. The impasse centers on Ford’s concerns about sharing its proprietary technology and plans for new products.
  • Morgan mulls giving away Crescent. Sources say Morgan Stanley (MS) may hand over its Crescent Real Estate Equities unit to Barclays (BCS), to whom the business owes $2B which comes due Nov. 2. Morgan bought Crescent for $6.5B in August 2007, and had planned to put its assets into real estate investment funds, but was left holding the bag when markets seized up.
  • IRS watchdog says homebuyer plan fraught with fraud. The IRS’s internal watchdog will warn the agency again about fraud in the multibillion dollar homebuyer tax credit program. The IRS faces significant challenges in preventing individuals from scamming the tax credit program.
  • JPMorgan, Goldman cornering the M&A market. According to a study by Bloomberg News, JPMorgan (JPM) edged out Goldman Sachs (GS) in M&A advisory fees ($1.26B vs. $1.22B) for the first time since 2000. By deepening relationships with corporate clients, the two have created a deep moat around M&A counselling. “It’s going to be very difficult for upstart or broad-based firms to come in and usurp what many believe are the insurmountable leads that Goldman and JPMorgan have over competitors,” one analyst says.
  • Business spending perks up. Industrial bellwether Caterpillar (CAT) joined the ranks of those who say the worst is behind us, as corporate buyers slowly begin reinvesting in their businesses. While Caterpillar’s sales were 44% lower than a year ago, CFO David Burritt said he sees “encouraging signs that indicate a recovery may be under way,” and predicted sales could rise 10-25% next year (read Caterpillar’s Q3 earnings call transcript). Business spending accounts for about 9.5% of U.S. GDP – a fraction of the 68.2% accounted for by consumer spending – but still a potential catalyst for recovery.
  • Get ready for pay as you play internet. Internet service providers including AT&T (T) and Time Warner Cable (TWC) are considering returning to usage-based pricing for internet, amid a surge in traffic as more people watch videos online, and after a push by the FCC to force ISPs to treat all web traffic equally. “Some type of usage-based model, for those customers who have abnormally high usage patterns, seems inevitable,” an AT&T spokesman said, declining to provide details on the company’s exact plans.

Earnings: Wed. Before Open

  • Air Products and Chemicals (APD): FQ4 EPS of $1.14 beats by $0.02. Revenue of $2.13B (-21.6%) in-line. (PR)
  • AirTran (AAI): Q3 EPS of $0.08 in-line. Revenue of $597M (-11.3%) vs. $600M. Shares -0.9% premarket. (PR)
  • Allegheny Technologies (ATI): Q3 EPS of $0.01 misses by $0.02. Revenue of $698M (-49.9%) vs. $738M. Says the worst appears to be behind us, but many customers remain cautious due to the uncertain global economy and are keeping inventories low. Shares -8.8% premarket. (PR)
  • Altria (MO): Q3 EPS of $0.48 beats by $0.01. Revenue of $4.32B (+0%) vs. $4.66B. Shares -1.4% premarket. (PR)
  • Boeing (BA): Q3 EPS of -$2.23 misses by $0.11. Revenue of $16.69B (+9.1%) vs. $17.16B. Sees full-year EPS of $1.35-1.55 vs. $1.54 consensus. “The 787 cost reclassification and the 747 charge for increased costs and difficult market conditions clearly overshadowed what continues to be otherwise solid performance across our commercial production programs and defense business, We look forward to getting the 787 and 747-8 in the air soon and moving forward with flight test and certification for these two important programs.” Shares -2.5% premarket. (PR)
  • Deutsche Bank (DB): Q3 net income of €1.4B vs. consensus of €811M and last year’s €435M. Pretax profit of €1.3B vs. consensus of €1.19B. Tier 1 capital ratio rose to 11.7% from 11% in Q2. Shares -2.3% premarket. (Bloomberg)
  • Continental (CAL): Q3 EPS of $0.02 beats by $0.08. Revenue of $3.32B (-20.2%) in-line. (PR)
  • Elan (ELN): Q3 EPS of -$0.06 beats by $0.07. Revenue of $399M (-19.5%) vs. $382M. (PR)
  • Eli Lilly (LLY): Q3 EPS of $1.20 beats by $0.18. Revenue of $5.56B (+6.8%) vs. $5.41B. Gross margin as a percent of total revenue increased by 3.7% to 81.1%. Shares +0.4% premarket. (PR)
  • FLIR Systems (FLIR): Q3 EPS of $0.38 beats by $0.03. Revenue of $286M (+3.2%) vs. $281M. Shares +2.9% premarket. (PR)
  • Freeport-McMoRan Copper & Gold(FCX): Q3 EPS of $2.07 beats by $0.73. Revenue of $4.14B (-10.2%) vs. $4.24B. Reinstates dividend due to strong performance. Shares -0.1% premarket. (PR)
  • KeyCorp (KEY): Q3 EPS of -$0.50 misses by $0.09. Takes a $733M provision for loan losses, which KEY says drove the miss. Average deposits were +6% (+$3.6B). Shares -4.7% premarket. (PR)
  • Knight Capital Group (NITE): Q3 EPS of $0.32 misses by $0.07. Revenue of $300M (+24.5%) vs. $282M. Shares -6.4% premarket. (PR)
  • Manpower (MAN): Q3 EPS of $0.26 beats by $0.09. Revenue of $4.19B (-26%) vs. $3.95B. Sees Q4 EPS of $0.17-0.27 vs. $0.28. “We continued to experience sluggish demand for our services as the labor markets throughout the world were hampered by lack of demand for companies’ products and services… the uptick in revenue is muted at this time compared to previous recoveries.” Shares -5.3% premarket. (PR)
  • Morgan Stanley (MS): Q3 EPS of $0.38 beats by $0.11. Revenue of $8.7B vs. $6.99B. Assets under management $386B vs. $483B last year. Declares $0.05 quarterly dividend. Shares +0.9% premarket. (PR)
  • Northern Trust (NTRS): Q3 EPS of $0.72 misses by $0.12. Revenue of $928M (-1.2%) vs. $985M. Shares -5% premarket. (PR)
  • Northrop Grumman (NOC): Q3 EPS of $1.29 beats by $0.11. Revenue of $8.73B (+4.1%) vs. $8.58B. (PR)
  • Omnicom Group (OMC): Q3 EPS of $0.53 in-line. Revenue of $2.83B (-14.4%) in-line. (PR)
  • Penn National Gaming (PENN): Q3 EPS of $0.33 misses by $0.02. Revenue of $620M (+0.4%) vs. $642M. Shares -8.2% premarket. (PR)
  • St. Jude Medical (STJ): Q3 EPS of $0.59 beats by $0.01. Revenue of $1.16B (+7%) in-line. Sees Q$ EPS of $0.61-0.63 vs. $0.66. “We are lowering our expectations for our fourth quarter results to accommodate the issues we are experiencing from a limited portion of our customer base in the U.S., but we are confident that our long term growth program is on track.” Shares -0.9% premarket. (PR)
  • U.S. Bancorp (USB): Q3 EPS of $0.30 beats by $0.03. Revenue of $4.25B (+2.2%) vs. $4.12B. Says credit deterioration moderated somewhat. Shares +0.8% premarket. (PR)
  • Wells Fargo (WFC): Q3 EPS of $0.56 beats by $0.19. Revenue of $22.47B (+116.5%) vs. $21.63B. Q3 chargeoffs of $5.1B, up from $4.4B in Q2. Sees credit losses peaking in 2010, “with consumer losses potentially peaking in first half of the year and gradually declining, absent further economic deterioration.” Shares -1% premarket. (PR)

Earnings: Tue. After Close

  • Amylin Pharmaceuticals (AMLN): Q3 EPS of -$0.19 beats by $0.10. Revenue of $211M (-3%) vs. $219M. Shares -1.1% AH. (PR)
  • Canadian National Railway Company (CNI): Q3 EPS of C$0.94. Revenue of C$1.85B (-18%) in-line. Shares -1.6% AH. (PR)
  • C.H. Robinson Worldwide (CHRW): Q3 EPS of $0.57 beats by $0.01. Revenue of $1.95B (-16%) vs. $1.96B. Shares -0.8% AH. (PR)
  • Cree (CREE): FQ1 EPS of $0.30 beats by $0.08. Revenue of $169M (+20%) vs. $165M. Sees Q2 EPS of $0.28-0.30 vs. $0.23 and revenue of $180M-190M vs. $173M. Shares +3.6% AH. (PR)
  • Gilead Sciences (GILD): Q3 EPS of $0.78 beats by $0.11. Revenue of $1.8B (+31%) vs. $1.75B. Shares -2.2% AH. (PR)
  • Infinera (INFN): Q3 EPS of -$0.03 beats by $0.09. Revenue of $83M (+3%) vs. $80M. Shares +2.5% AH. (PR)
  • Intuitive Surgical (ISRG): Q3 EPS of $1.64 beats by $0.16. Revenue of $280M (+19%) vs. $258M. Shares -5.9% AH. (PR)
  • Nabors Industries (NBR): Q3 EPS of $0.18 beats by $0.02. Revenue of $804M (-44%) vs. $820M. Shares flat AH. (PR)
  • Polycom (PLCM): Q3 EPS of $0.31 misses by $0.01. Revenue of $243M (-16%) vs. $236M. Shares -5.2% AH. (PR)
  • SanDisk (SNDK): Q3 EPS of $0.75 beats by $0.49. Revenue of $935M (+14%) vs. $788M. Shares +0.2% AH and halted. Updated 4:30 p.m.: Shares resume trading, +10.2% AH. (PR)
  • Seagate Technology (STX): FQ1 EPS of $0.58 beats by $0.11. Revenue of $2.66B (-12%) vs. $2.62B. Shares -2.9% AH. (PR)
  • SLM Corp. (SLM): Q3 EPS of $0.26 beats by $0.22. Net interest income after provision for loan losses of $204M (-29%). Shares +7.8% AH. (PR)
  • STMicroelectronics (STM): Q3 EPS of -$0.23 misses by $0.14. Revenue of $2.28B (-16%) vs. $2.25B. Shares +3.7% AH. (PR)
  • Stryker (SYK): Q3 EPS of $0.69 in-line. Revenue of $1.65B (+1%) vs. $1.62B. Shares +3.5% AH. (PR)
  • Tupperware (TUP): Q3 EPS of $0.54 beats by $0.12. Revenue of $514M (flat) vs. $486M. Raises full-year EPS guidance to $2.84-2.89 from $2.59-2.64, vs. $2.73. Shares +4.5% AH. (PR)
  • Walter Industries (WLT): Q3 EPS of $0.45 beats by $0.18. Revenue of $278M (-10%) vs. $223M. Shares +1.7% AH. (PR)

Today’s Markets

Overseas markets sustained losses Wednesday. U.S. futures moved lower overnight.

  • Asia: Nikkei -0.03% to 10,333. Hang Seng -0.3% to 22,318. Shanghai -0.45% to 3,071. BSE -1.24% to 17,009.
  • Europe at midday: London -0.8%. Paris -1.2%. Frankfurt -0.9%.
  • Futures at 7:00: Dow -0.4% to 9956. S&P -0.5% to 1084. Nasdaq -0.4%. Crude -1.1% at $78.22. Gold -0.3% to $1,056. Treasurys are flat. Euro and yen are flat against the dollar. Pound +1.3%.

Wednesday’s Economic Calendar

octubre 19, 2009

Miren este ETF, no lo conocía: BRF – Es Small Cap Brazil, bueno para evitarse los tipicos fondos small caps (Celfin, Moneda) que tienen muy poca liquidez.

Filed under: Uncategorized — CMARINETTI @ 4:35 pm

http://seekingalpha.com/article/163374-brazil-etfs-big-returns-come-in-small-caps

Semana Oct 19 a 23 – Datos de la semana – Ojo con Martes “housing” y Jueves “empleo”

Filed under: Uncategorized — CMARINETTI @ 1:27 am

Monday, Oct. 19 will begin with a gauge of the attractiveness of the Canadian Dollar for foreign investors- the Canadian Foreign Securities Purchases, a measure of foreign investments in Canada, at 8:30 am, ET. 

The only U.S. economic report for the day will be the NAHB- National Association of Home Builders Housing Market Index of the demand outlook for single-family home builders, at 1:00 pm, ET.

The day will end with the Reserve Bank of Australia’s Meeting Minutes from the last monetary policy meeting that may provide some clues about the bank’s future monetary policy, at 8:30 pm, ET.

Tuesday, Oct. 20 will start with the German PPI- Producers Price Index, the main measure of wholesale inflation experienced by manufacturers in the Euro-zone’s largest economy and a leading indicator of consumer inflation, at 2:00 am, ET. 

News from the U.K. will bring the U.K. Public Sector Net Borrowing, a measure of credit debt and spending by public corporations, at 4:30 am, ET, and the estimate of the U.K. M4 Money Supply, also at 4:30 am, ET.

The Canadian Leading Indicators of economic activity will follow at 8:30 am, ET, along with the Canadian Wholesale Sales, a leading indicator of retail sales and consumer spending measuring sales made by wholesalers, also at 8:30 am, ET. 

The U.S. economic data will bring the first spotlight event of the week- the U.S. Housing Starts and Building Permits, a gauge of housing market conditions measuring changes in the rate of home construction, at 8:30 am, ET, along with the U.S. PPI- Producers Price Index, the main measure of wholesale inflation experienced by manufacturers and a leading indicator of consumer inflation, also at 8:30 am, ET. 

One of the main spotlight events of the week will follow with the Bank of Canada’s Interest Rate Announcement, at 9:00 am, ET. 

The day will conclude with the Australian Leading Indicators of economic activity, at 8:00 pm, ET.

Wednesday, Oct. 21 will begin with a spotlight event- the Bank of England’s Monetary Policy Committee Meeting Minutes that should provide clues about the bank’s position on interest rates and the future of the bank’s monetary policy, scheduled at 4:30 am, ET.

Another notable report from the U.K. will follow with the release of the Confederation of British Industry Industrial Trends Survey of economic conditions and the outlook of executives in the manufacturing sector, at 6:00 am, ET. 

The U.S. economic reports will begin with the EIA- Energy Information Administration Weekly Oil Inventories, at 10:30 am, ET.

A spotlight event from the U.S. will bring the Fed’s Beige Book of economic conditions in the 12 Federal Reserve Districts based on anecdotal evidence considered by the FOMC members when making monetary policy decisions, scheduled at 2:00 pm, ET.

The day will end with the Japanese Trade Balance of the difference between imported and exported goods and services, at 7:50 pm, ET. 

Thursday, Oct. 22 will start with the Japanese All Industries Activity Index of activity in the services industry combined with activity in the construction, agricultural, industrial and public sectors of the economy, at 12:30 am, ET.

The Swiss Trade Balance of the difference between imported and exported goods and services will hit the newswires at 2:15 am, ET, followed by the Euro-zone Current Account of goods, services and transfer of payments into and out of the region, at 4:00 am, ET. 

News from the U.K. will deliver a spotlight event with the release of the U.K. Retail Sales, the main gauge of consumer spending, at 4:30 am, ET. 

Another spotlight event will bring the Canadian Retail Sales, an important gauge of consumer spending measuring the total receipts at stores that sell durable and nondurable goods, at 8:30 am, ET. 

The U.S. economic data sequence will begin with the usual for every Thursday weekly Jobless Claims, an important gauge of labor market conditions measuring new unemployment claims, at 8:30 am, ET, and the U.S. House Price Index of the price changes of homes with mortgages backed by Fannie May and Freddie Mac, at 10:00 am, ET.

The U.S. reports will continue with the U.S. Leading Indicators of economic activity, at 10:00 am, ET, and the EIA- Energy Information Administration Weekly Natural Gas Inventories, at 10:30 am, ET. 

Another spotlight event from Canada that morning will bring the Bank of Canada’s Quarterly Monetary Policy Report on economic conditions, inflation and monetary policy, at 10:30 am, ET.

The day will end with the Australian Import Prices, a gauge of inflation measuring price changes in imported goods and services, at 8:30 pm, ET. 

Friday, Oct. 23 will begin with notable economic data- the German Manufacturing and Services PMI- Purchasing Manager’s Indexes of the level of activity of purchasing managers in the manufacturing and service sectors, due at 3:30 am, ET. 

A spotlight event will bring the German IFO Institute Business Climate and Expectations Index, a leading indicator of economic conditions and business expectations in the Euro-zone’s largest economy, at 4:00 am, ET, along with the Euro-zone Manufacturing and Services PMI- Purchasing Manager’s Indexes, two leading indicators of economic conditions measuring the level of activity of purchasing managers in the manufacturing and service sectors, also at 4:00 am, ET.

Another spotlight event- the preliminary estimate of the U.K. GDP- Gross Domestic Product, the main measure of economic activity and growth, will be released at 4:30 am, ET, followed by the Euro-zone New Manufacturers Orders, a leading indicator of industrial activity, at 5:00 am, ET. 

The trading week will end with its main spotlight event- the U.S. Existing Home Sales, the main gauge of the condition of the U.S. housing market measuring the number of closed sales of previously constructed homes, condominiums and co-ops, scheduled at 10:00 am, ET.

octubre 16, 2009

16 Oct 2009 – Noticias antes de apertura.

Filed under: Uncategorized — CMARINETTI @ 1:02 pm
  • Google goes for growth. Encouraged by a stronger economy and uplifting third-quarter profits, Google (GOOG) said it is gearing up for expansion. “While there is a lot of uncertainty about the pace of economic recovery, we believe the worst of the recession is behind us and now feel confident about investing heavily in our future,” said CEO Eric Schmidt. The Internet search company said on Thursday that third-quarter revenue rose 7% over last year’s same period, to $5.94 billion, as Internet advertising business brightened. Net income jumped 27% to $1.6 billion from a year ago. Google shares rose in after-hours trading. (read Google’s Q3 earnings call transcript)
  • U.S. calls on China to loosen up. The U.S. Treasury took a fresh swipe at China’s currency policy, saying in a semiannual report released Thursday that, “Both the rigidity of the renminbi and the reacceleration of reserve accumulation are serious concerns which should be corrected to help ensure a stronger, more balanced global economy consistent with the G-20 framework.” Treasury, which stopped short of accusing China of manipulating its currency, said it continues to believe the renminbi is “undervalued.” The G-20 framework calls for sustaining global growth and smoothing trade and investment flows.
  • Music merger in antitrust showdown. Ticketmaster Entertainment Inc. (TKTM) and Live Nation (LYV) are facing intense antitrust scrutiny for their proposed merger, announced in February, and may be forced to make concessions to complete the deal, sources say. The outcome could have potential repercussions for other high-profile deals such as Comcast’s (CMCSA) proposal to take a majority stake in General Electric’s (GE) NBC Universal. Ticketmaster and Live Nation, which have a combined stock-market value of $1.3B, had planned to close the deal by the end of this year. But the U.S. Justice Department may not rule before late November or 2010. The deal marks the first high-profile merger to come up for antitrust review during the Obama administration, which has vowed to take a tough antitrust stance.
  • Ken’s annus horribilis. Embattled Bank of America (BAC) CEO Ken Lewis, already facing a slew of woes, now must forfeit his entire bonus and salary for 2009. U.S. pay czar Kenneth Feinberg said Lewis should pay back the $1M he has already received and give up the rest of his $1.5M pay for 2009. Lewis is bowing to Feinberg’s demand, saying it’s “not in the best interest of Bank of America for him to get involved in a dispute with the paymaster.” However, Lewis – who is leaving this year – will be able to keep his retirement pay, currently worth between $69.3M and $120M.
  • Telephone partnership loosing connection? Nokia (NOK), the world’s largest phone maker, has raised questions about its commitment to Nokia Siemens Networks, after carving more than $1B off the value of its telephone-network venture with Siemens AG (SI) on Thursday, essentially wiping out all of the JV’s goodwill. Some say the writedown may be in preparation for a sale. The partnership saw its market share fall to 20% in Q2 from 26% a year earlier, while rival Ericsson (ERIC) is out in front with 32%. Nokia Siemens posted losses of more than €1.6B in the previous two years.
  • U.S. will hold world back – Soros. Billionaire investor George Soros says the U.S. will be a drag on world growth, and that the U.S. dollar ought to be falling against the Chinese yuan to allow the U.S. to contain its current-account deficit. Soros said Thursday that the world’s current “currency arrangements” are fraught with danger and that the world needs global regulation.
  • CVC derails Express deal. CVC Capital Partners slammed the brakes on plans to buy Britain’s bus and rail company, National Express, for $1.3B. The buyout firm provided no reason, saying only that it and Spain’s Cosmen family, the transport company’s biggest investor, won’t press ahead. London’s Takeover Panel said today was the “put up or shut up” deadline to make a firm offer or walk away for at least six months. National Express, which will now explore a stock sale, saw its shares plunge as much as 33% in London trading.
  • Historic pay package lives on. Lazard CEO Bruce Wasserstein, who died this week, was notorious for his blockbuster hostile takeovers. Now, he is achieving fresh notoriety for the enormous pay he commanded. Some 4.4M restricted stock units he held – worth $188M at today’s prices – will be vested due to his death. The payout makes the legendary CEO one of history’s most richly compensated investment bankers, at a time when Wall Street chieftains are under fire for taking outsized pay packages. Wasserstein’s 2008 pay package was worth $20.4 million, most of it in restricted stock.
  • … while Goldman plays it down. As the Wall Street bonus controversy blazes on, Goldman plunked a smaller chunk of revenue into its compensation pool. But employees need not cinch their belts: they are still on track to pocket an average of $630,000 each – rivaling record bonuses in 2007. Goldman has already set aside some $16.7B for bonuses this year, and looks headed toward the $20B mark. The firm may be hoping its recent show of austerity will quiet critics, but numbers like these make that unlikely.
  • Manufacturing continues to fuel U.S. growth. Manufacturing gains are catalyzing U.S. economic growth, today’s latest September Industrial production numbers is expected to show. Economists expect industrial production to climb for a third consecutive month, with output at factories, mines and utilities up 0.2% following increases of 0.8% and 1% in August and July. However, another report may show that consumer sentiment has moderated following the highest level it has seen in more than a year (see today’s economic calendar below).
  • Mixed messages from industry. New York State manfacturing took a big turn for the better, with the NY Fed’s Empire State Manufacturing Survey jumping to 34.57 vs. 18.88 last month and 19 expected – the highest level in 5 years. Employment index jumped to 10.4 from -8.3 last month. New orders surged to 30.8 from 19.8. Meanwhile, in Philadelphia the recovery was less apparent, with the Philly Fed’s Business Outlook survey dropping to 11.5 vs. 14.1 last month and consensus of 12. Employment index -6.8 vs. -14.3 last month. New orders moved up to 6.2 from 3.3. Shipments were 3.3 vs. 8.2. Inventories fell to -31.8 vs. -18.1.
  • Job losses moderate. Weekly jobless claims fell to the lowest level since early January, dropping to 514,000 from 524K last week, just short of the 515K economists predicted. Continuing claims fell by 75K to 5.991M from 6.067M.

Earnings: Fri. Before Open

  • Bank of America (BAC): Q3 EPS of -$0.26 misses by $0.05. Revenue of $26.04B (+32.7%) vs. $27.61B. Adds $2.1B to credit loss reserves. “Obviously, credit costs remain high, and that is our major financial challenge going forward. However, we are heartened by early positive signs, such as the leveling of delinquencies among our credit card customers.” (PR)
  • GE (GE): Q3 EPS of $0.27 beats by $0.07. Revenue of $37.8B (-20%) vs. $40.03B. CEO Jeff Immelt on GE Capital: “While it remains a tough environment for GE Capital, we are seeing signs of stabilization. Every segment at GE Capital was profitable with the exception of Real Estate, which is experiencing a tough environment but where we believe the risks are well understood and manageable.” (PR)
  • First Horizon National (FHN): Q3 EPS of -$0.24 beats by $0.08. Revenue of $495M (-6.4%) vs. $504M. (PR)
  • Halliburton (HAL): Q3 EPS of $0.31 beats by $0.05. Revenue of $3.59B vs. $3.42B. “Overall market dynamics remained difficult in North America… Although I am more confident in our view of the international markets than I was last quarter, project deferrals together with pricing pressure, driven by our customers’ desire to reduce input costs, cause us to continue to expect a softer near-term margin outlook for international markets.” (PR)
  • Mattel (MAT): Q3 EPS of $0.63 in-line. Revenue of $1.79B (-8.2%) in-line. “”As expected, revenues continue to be challenging this year due to the overall economic environment, retailers tightly managing inventory, foreign exchange rates and the lack of entertainment-inspired toy lines.” (PR)

Earnings: Thur. After Close

  • Advanced Micro Devices (AMD): Q3 EPS of -$0.26 beats by $0.16. Revenue of $1.4B (-22%) vs. $1.26B. Sees Q4 product revenue up modestly. Shares -3.7% AH. (PR)
  • Google (GOOG): Q3 EPS of $5.89 beats by $0.47. Revenue of $4.38B (+7%) vs. $4.24B. Paid clicks +14%; cost per click -6%. “While there is a lot of uncertainty about the pace of economic recovery, we believe the worst of the recession is behind us and now feel confident about investing heavily in our future.” Shares +3.6% premarket. (PR)
  • IBM (IBM): Q3 EPS of $2.40 beats by $0.02. Revenue of $23.6B (-7%) vs. $23.4B. Raises full-year EPS guidance to at least $9.85 from $9.70, vs. $9.78. “We saw improved revenue trends in our business and share gains in software and hardware.” Remains “well ahead of pace” for 2010 roadmap of $10-$11/share. Shares -3.9% AH. (PR)
  • People’s Bank (PBCT): Q3 EPS of $0.08 in-line. Net interest income of $145M (-9%). Shares -1.5% AH. (PR)
  • Tempur-Pedic International (TPX): Q3 EPS of $0.34 beats by $0.08. Revenue of $224M (-11%) vs. $196M. Shares +12.7% AH. (PR)

Today’s Markets

Asian markets were mixed Friday. European stocks have added modest gains, while futures are flat as investors await another batch of big-name Q3 earnings reports.

  • Asia: Nikkei +0.18% to 10,258. Hang Seng -0.31% to 21,930. Shanghai -0.11% to 2,977. BSE +0.74% to 17,323.
  • Europe at midday: London +0.4%. Paris +0.2%. Frankfurt +0.5%.
  • Futures at 7:00: Dow -0.1% at 9957. S&P -0.1% to 1089. Nasdaq flat. Crude -0.5% to $77.65. Gold -0.1% to $1,050. 30-year bond +0.11% to 118-29. 10-year +0.07%. Euro -0.1% vs. dollar. Yen -0.5%. Pound +0.2%.

Friday’s Economic Calendar

octubre 14, 2009

OCt 14 – Noticias antes de la apertura

Filed under: Uncategorized — CMARINETTI @ 12:41 pm
  • Intel says growth is back. Intel (INTC) CEO Paul Otellini sounded an optimistic note after a strong Q3 earnings report, telling analysts the firm’s strength “remains primarily consumer driven with broad-based demand across all geographies.” Speaking to concerns netbook sales are cannibalizing traditional PC and laptop sales, Otellini said sequential unit growth of notebook chip sales exceeded the growth rate of its Atom chips, “and we expect that to continue in the future.” The strong report sent futures surging after hours, and shares of Intel are up almost 5% premarket. (read Intel’s Q3 earnings call transcript)
  • Bank crisis, what bank crisis? Major U.S. banks and securities firms will pay workers about $140B this year, topping the $130B record set at the peak in 2007 and up from $117B in 2008. According to an in-depth study by the WSJ, workers at 23 top Wall Street firms will earn an estimated $143,400 on average (Table: Projected Compensation). The same firms’ total revenue are projected to reach $437B, smashing the record $345B set in 2007.
  • China export decline slows. China’s exports declined 15.2% from a year ago to $115.9B, the smallest drop in almost a year, and substantially less than consensus estimates of 21%. A recovery in exports “is one more piece of evidence that the global economy is getting stronger,” strategist Brian Jackson said, adding that recent gains in imports show “China is playing a greater role in driving recovery.” Shanghai closed up 1.2%, and yuan forwards hit a 13-month high as traders bet the jump in exports will prompt the central bank to let the yuan climb against the dollar; some say the dollar peg will break as soon as Q1 2010.
  • BoJ stays put, delays exit plan. Bank of Japan kept its overnight call loan rate unchanged at 0.1% (.pdf), and contrary to expectations, made no mention of whether it will end measures to supply funds to the market by buying bank-owned corporate debt, suggesting it’s still concerned that its termination could choke off an economic recovery. BoJ revised its economic assessment upward for the second straight month, saying Japan’s economy “has started to pick up,” after saying last month the economy is “showing signs of recovery.” (read BoJ’s statement)
  • Geithner aides making the rounds on Wall St. Members of Tim Geithner’s behind-the-scenes kitchen cabinet are earnings millions of dollars a year in payments from top Wall Street firms, on top of their $163K government salaries. As members of Geithner’s advisory, aides like Gene Sperling and Lee Sachs wield significant influence within the Treasury, but aren’t subject to public confirmation or congressional scrutiny.
  • BofA board was troubled by Merrill deal. Bank of America (BAC) has begun opening the tap on its promised disclosure of emails and documents relating to its purchase of Merrill Lynch. In an email exchange during a Jan. 15 call in which CEO Ken Lewis revealed to the board that Merrill’s losses were far worse than the bank’s previous estimates, board member Charles Gifford wrote, “Unfortunately it’s screw the shareholders!!” to another director, who replied, “No trail,” apparently reminding him to delete the thread. The bank says it believes that the record, taken in context, will demonstrate “that we acted in good faith and with appropriate disclosure in the Merrill Lynch acquisition.” Gifford was reportedly the only director to oppose the merger, urging Lewis to wait a day or two to try and spin a better deal for shareholders; Lewis argued waiting could squander a golden opportunity to make the I-bank the crown jewel of his empire.
  • Pay czar urges pay cuts at AIG. Treasury pay czar Kenneth Feinberg is urging AIG (AIG) to reduce a portion of the $198M in incentives it claims it needed to keep crucial staffers. Feinberg’s report implies the Treasury should have been more attentive to AIG’s pay practices, saying it “invested $40B of taxpayer funds in AIG, designed AIG’s contractual executive compensation restrictions and helped manage the government’s majority stake in AIG for several months, all without having any detailed information about the scope of AIG’s very substantial, and very controversial, executive compensation obligations.”
  • Healthcare bill has miles to go. The Senate Finance Committee approved a proposed $829B healthcare overhaul, much to the chagrin of the health insurance industry, saddling Senate Majority Leader Harry Reid with the arduous task of melding it with the version passed by the Senate in July. A group of 27 unions including the UAW are coming out with a newspaper ad today saying they’ll oppose the legislation unless in includes a public option. Another fault line is whether the bill should force employers to cover workers. Insurers are rankled by weakened penalties for those who fail to buy insurance.
  • Bloomberg buys BusinessWeek. McGraw-Hill agreed to sell 80-year-old BusinessWeek to Bloomberg for an undisclosed price. Sources say less than $5M in cash will change hands, but Bloomberg will also assume another $10M in liabilities, including severance for BusinessWeek staffers who might lose their jobs. Bloomberg executives say the firm hasn’t made any decision about job cuts or staffing, but insist it bought the magazine and web property to build them, not gut them. “Our intention is to take a venerable brand and turn it into the best global business newsweekly,” Bloomberg president Daniel Doctoroff said in an interview.
  • Cisco snaps up Starent. Cisco (CSCO) agreed to buy Starent Networks (STAR), a supplier of mobile internet solutions, for $2.9B, or $35/share in cash, a 42% premium over the 30-days prior close. The move comes just a week after the networking giant agreed to hand over $3B for Norwegian videoconferencing vendor Tandberg, an indication CEO John Chambers is quite serious about following through with recent promises to make the coming two year’s Cisco’s “most aggressive ever.” The acquisition should increase Cisco’s ability to help carriers manage the data moving across wireless networks, which analysts say is the single biggest growth opportunity for networking vendors.
  • Mortgage rates creep higher; apps drop. Mortgage applications fell 1.8% from a week ago as mortgage rates skipped back above 5%, the Mortgage Bankers Association said this morning. The drop follows a 16.4% gain last week. 30-year fixed mortgages averaged 5.02%, up from 4.89% the previous week.

Earnings: Wed. Before Open

  • JPMorgan (JPM): Q3 EPS of $0.82 beats by $0.30. Revenue of $26.62B (+3.9%) vs. $24.96B. Says credit costs remain high and adds $2B to consumer credit reserves, but says it’s seeing initial signs of consumer-credit stability. Firmwide loan-loss coverage ratio of 5.3%. Shares +2.1% premarket. (PR)
  • Host Hotels (HST): Q3 FFO of $0.11 beats by $0.03. Revenue of $912M (-19.9%) vs. $892M. (PR)

Earnings: Tue. After Close

  • Altera (ALTR): Q3 EPS of $0.19 in-line. Revenue of $287M (+2.7%) in-line. Sees Q4 revenue of $303-314M vs. $291M. Shares +2% AH. (PR)
  • Intel (INTC): FQ3 EPS of $0.33 beats by $0.05. Revenue of $9.4B (-8%) vs. $9B. Gross margin at 57.6%, above expectations. Sees Q4 revenue of $9.7B-10.5B vs. $9.5B. Shares +4.9% premarket. (PR)
  • Linear Technology (LLTC): FQ1 EPS of $0.27 beats by $0.03. Revenue of $236M (-24%) vs. $216M. Sees Q2 revenue of $241M-248M vs. $223M. Shares +0.5% AH. (PR)

Today’s Markets

Overseas markets posted impressive gains on Wednesday, and futures are up more than 1% after bellwether Intel (INTC) posted better than expected Q3 earnings.

  • Asia: Nikkei -0.16% to 10,060. Hang Seng +1.95% to 21,886. Shanghai +1.17% to 2,971. BSE Sensex +1.2% to 17,231.
  • Europe at midday: London +1.7%. Paris +1.7%. Frankfurt +2%.
  • Futures: Dow +1.1% to 9918. S&P +1.3% at 1083. Nasdaq +1.3%. Crude +1.1% to $74.96. Gold +0.15% to $1,066. 30-year bonds -0.59%. 10-year -0.28%. 5-year -0.17%. Euro +0.5% vs. dollar. Yen +0.6%. Pound +0.6%.

Wednesday’s Economic Calendar

octubre 9, 2009

3Q Earning Report Calendar

Filed under: Uncategorized — CMARINETTI @ 8:12 pm

                         THIS QUARTER       |  NEXT QUARTER      | 

     Company             EPS       Revenues |  EPS      Revenues |Date

     ========            ======    ======== |  ======   ======== |============

 1)  JPMORGAN (JPM):     $0.49     $24.91b  |  $0.51    $25.21b  |Wed, Oct 14

 2)  GENERAL ELEC (GE):  $0.20     $40.18b  |  $0.24    $43.24b  |Fri, Oct 16

 3)  J&J (JNJ):          $1.13     $15.21b  |  $0.98    $15.50b  |Tues, Oct 13

 4)  GOOGLE (GOOG):      $5.39     $4.22b   |  $5.98    $4.61b   |Thurs, Oct 15

 5)  IBM (IBM):          $2.38     $23.43b  |  $3.39    $26.63b  |Thurs, Oct 15

 6)  BofA (BAC):        ($0.11)    $27.81b  | ($0.03)   $28.45b  |Fri, Oct 16

 7)  INTEL (INTC):       $0.27     $9.03b   |  $0.35    $9.48b   |Tues, Oct 13

 8)  CITIGROUP (C):     ($0.22)    $19.75b  | ($0.07)   $20.21b  |Thurs, Oct 15

 9)  GOLDMAN (GS):       $4.18     $10.96b  |  $5.21    $10.43b  |Thurs, Oct 15

10)  ABBOTT LABS (ABT):  $0.90     $7.74b   |  $1.17    $8.48b   |Wed, Oct 14

11)  MORGAN STANLEY (MS):$0.34     $7.12b   |  $0.61    $8.09b   |Wed, Oct 14

12)  BAXTER INTL (BAX):  $0.97     $3.16b   |  $1.04    $3.32b   |Thurs, Oct 15

13)  HALLIBURTON (HAL):  $0.26     $3.39b   |  $0.25    $3.40b   |Fri, Oct 16

14)  SCHWAB (SCHW):      $0.17     $1.03b   |  $0.18    $1.05b   |Mon, Oct 12

15)  CSX CORP (CSX):     $0.71     $2.32b   |  $0.76    $2.40b   |Tues, Oct 13

16)  PROGRESSIVE (PGR):  $0.33     $3.59b   |  $0.33    $3.58b   |Wed, Oct 14

17)  PPG INDS (PPG):     $0.88     $3.13b   |  $0.60    $2.96b   |Thurs, Oct 15

18)  SAFEWAY (SWY):      $0.30     $9.45b   |  $0.55    $12.69b  |Thurs, Oct 15

19)  STHWST AIR (LUV):  ($0.01)    $2.61b   |  $0.00    $2.53b   |Thurs, Oct 15

20)  HOST HOTELS (HST): ($0.14)    $890.6m  | ($0.06)   $1.34b   |Wed, Oct 14

21)  MATTEL (MAT):       $0.64     $1.78b   |  $0.64    $1.95b   |Fri, Oct 16

22)  WW GRAINGER (GWW):  $1.34     $1.60b   |  $1.20    $1.49b   |Wed, Oct 14

23)  AMPHENOL (APH):     $0.43     $686.6m  |  $0.46    $708m    |Thurs, Oct 15

24)  XILINX INC (XLNX):  $0.23     $408m    |  $0.23    $419.7m  |Wed, Oct 14

25)  LINEAR TECH (LLTC): $0.30     $216.1m  |  $0.32    $223.7m  |Tues, Oct 13

26)  GENUINE PART (GPC): $0.65     $2.61b   |  $0.54    $2.41b   |Fri, Oct 16

27)  ALTERA (ALTR):      $0.19     $282.3m  |  $0.19    $287.8m  |Tues, Oct 13

28)  FASTENAL (FAST):    $0.33     $487.6m  |  $0.30    $467.5m  |Mon, Oct 12

29)  HARLY-DAVDSN (HOG): $0.23     $1.10b   | ($0.16)   $702.6m  |Thurs, Oct 15

30)  PEOPLE UNTD (PBCT): $0.08     $218.1m  |  $0.08    $222m    |Thurs, Oct 15

31)  JB HUNT (JBHT):     $0.28     $809.1m  |  $0.30    $817.9m  |Mon, Oct 12

32)  ADV MICRO (AMD):   ($0.43)    $1.25b   | ($0.32)   $1.34b   |Thurs, Oct 15

33)  1st HORIZON (FHN): ($0.33)    $497.8m  | ($0.22)   $493m    |Fri, Oct 16

 

* Bloomberg estimates

octubre 8, 2009

8 de Oct – Noticias antes de la apertura

Filed under: Uncategorized — CMARINETTI @ 1:10 pm
  • Derivatives divide threatens regulatory overhaul. Regulators appear more divided than ever on how to increase oversight into the opaque $600B OTC derivatives market. In a rare show of solidarity yesterday, both the SEC and the CFTC urged Congress to force all OTC trades to be cleared in public exchanges, which they say would dampen the risk of another Lehman debacle, and make it harder for the bad guys to hide. But House Financial Services Committee chairman Rep. Barney Frank said he didn’t see lawmakers successfully forcing OTC trades through monitored clearinghouses, noting substantial opposition from both bipartisan lawmakers and Wall Street.
  • Google sounds the all-clear. “I would hope we’re a leading indicator,” Google (GOOG) CEO Eric Schmidt told reporters yesterday after surprisingly revealing the internet giant quietly restarted its noted investment and hiring programs two months ago (“We’re increasing our investment and hiring rate in anticipation of a recovery”). “The worst is behind us, and we’re seeing aspects of recovery,” he said, noting the mood within Google’s sales team is “very, very positive.” Shares gained 3.8% Wednesday to $517.54.
  • Alcoa serves up a winner. Alcoa (AA) kicked off the Q3 earnings season with a strong beat, posting a profit of $0.08/share compared to the $0.09 loss expected by analysts (see below for more data). Alcoa said it sold more aluminum in Q3 compared with a year ago, citing rising shipments and declining inventories. Most of its important markets, including carmakers and other industrial sectors, began to stabilize, it said. On Alcoa’s earnings call, CEO Klaus Kleinfeld said strong China demand helped neutralize weak demand from Western buyers, bringing aluminum prices up about 20% over the quarter.
  • DoJ challenges IBM’s mainframe dominance. The Justice Department has initiated an investigation into whether IBM (IBM) is abusing its monopoly of the mainframe computer market following a complaint by trade group the Computer and Communications Industry Association, which is backed by IBM rivals like Microsoft (MSFT) and Oracle (ORCL). The organization contends IBM stymied competition in the mainframe market, and blocked competitors and potential partners from licensing its software. A similar complaint by mainframe reseller T3 was dismissed last week, but more companies appear ready to take up the cause. About 25% of IBM’s $104B in annual revenue still comes from mainframe related sales.
  • U.K. opposes Ticketmaster merger. Britain’s Competition Commission provisionally ruled against the proposed merger of Ticketmaster (TKTM) and Live Nation (LYV), saying it would lead to higher prices and less competition. In response, Ticketmaster stressed that live music is now the industry’s driving force, and said it believes the merger “achieves an important and much needed public interest, and remain optimistic that it will ultimately be approved.” Earlier this week, a ticket broker filed suit against Ticketmaster, alleging it paid him extra to sell choice tickets at a premium.
  • Shamu swims on Wall Street. Anheuser-Busch InBev (BUD) confirmed it will sell its theme parks, including the three SeaWorlds and two Busch Gardens, to the Blackstone Group (BX) for as much as $2.7B. Together with the sale of its U.S. packaging operations and beer units in Korea, China, Scotland and Ireland, BUD will have raised about $6.4B of its $7B target for debt reduction related to last year’s $52B merger.
  • Year’s biggest IPOs: separated at birth. The two biggest IPOs of 2009 debuted Wednesday, taking off in opposing directions from the get go. Shares of Banco Santander Brasil (BSBR) priced well below market chatter (but in the middle of its proposed range) and proceeded to fall about 2.5% on the NYSE. Meanwhile Insurance risk specialist Verisk Analytics (VRSK) priced its IPO at $22/share, exceeding expectations of $19-21, and never looked back – closing up 24% on the Nasdaq to $27.22.
  • SEC isn’t done with Mark Cuban. The SEC appealed Wednesday a federal judge’s dismissal of its case accusing Dallas Mavericks’ owner Mark Cuban of selling his 6% stake in internet search company Mamma.com based on insider information. The case was thrown out in July, saying Cuban would be liable for insider trading only if he specifically promised not to trade shares – which he didn’t. “We believe the District Court erred in dismissing our complaint and we look forward to presenting our position to the Fifth Circuit Court of Appeals,” SEC said in a statement. To which Cuban’s lawyers responded, “This appeal is nothing more than the SEC’s desperate attempt to shock a heartbeat into a case that was dead on arrival.”
  • Credit dry-up intensifies. Consumer credit fell for the seventh month in a row, contracting $11.98B in August to $2.46T – translating to a -5.8% annual growth rate. Economists had expected a $12.5B decline. Credit-card debt fell for a record 11th straight month, down $9.91B (an annualized shrinkage of 13.1%) to $899.41B (consumer credit release). The drop highlights how lenders are scaling back after being hit with huge debt writeoffs, but it also reflects a reluctance by consumers to hold substantial amid concerns over their jobs and home values.
  • BoE holds steady. Bank of England maintained its commercial bank rate at 0.5%, and left its bond-buying program unchanged at £175B. The bank said it expects the program to complete within a month.

Earnings: Thur. Before Open

  • Marriott International (MAR): Q3 EPS of $0.15 beats by $0.02. Revenue of $2.47B (-16.6%) vs. $2.39B. Company says aggressive promotions led to lower than expected loss on revenue per available room. (PR)
  • PepsiCo (PEP): Q3 EPS of $1.08 beats by $0.05. Revenue of $11.08B (-1.5%) vs. $11.25B. Shares (PR)

Earnings: Wed. After Close

  • Alcoa (AA): Q3 EPS ex-items of $0.04 beats by $0.13. Revenue of $4.6B (-34%) in-line. First-half measures making “strong positive impact on our cash position and profitability.” Shares +7.9% premarket. (PR)
  • Ruby Tuesday (RT): FQ1 EPS of $0.11 beats by $0.02. Revenue of $301M (-7%) vs. $297M. Shares +0.1% AH. (PR)
  • Richardson Electronics (RELL): FQ1 EPS of $0.11 beats by $0.07. Revenue of $109.5M (-21%) vs. $111M. (PR)

Today’s Markets

Despite a lackluster U.S. session Wednesday, overseas stocks have moved higher Thursday, augmented by significant gains in U.S. futures.

  • Asia: Nikkei +0.34% to 9,832. Hang Seng +1.18% to 21,493. BSE +0.22% to 16,844. Shanghai was closed again.
  • Europe at midday: London +0.6%. Paris +1.2%. Frankfurt +1.2%.
  • Futures: Dow +0.8% to 9750. S&P +0.9% to 1063. Nasdaq +0.8%. Crude +0.9% to $70.22. Gold +1% to $1,054.50. 30-year bonds -0.13%. Euro +0.7% vs. dollar. Yen +0.2%.

Thursday’s Economic Calendar

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