JDfn Daily Digest - October 17, 2008
President Bush said U.S. steps to ease the financial crisis will take "more time," to work but said he was confident they would be effective. It's going to "take awhile" for the credit crunch to ease. In a speech to the U.S. Chamber of Commerce, the President outlined actions the government has taken including supporting commercial paper and expanding insurance for bank accounts.
Housing starts fell 6.3% in September to a seasonally adjusted annual rate of 817,000, the lowest since January 1991. Starts of single-family homes tumbled 12%, the lowest since February 1982. The September estimates were much worse than the annual rate of 870,000 that was expected by economists. Building permits fell 8.3%, a 27-year low. Permits for single-family houses fell 3.8%, the lowest in 26 years.
The University of Michigan Survey of Consumers said its index of confidence plummeted to 57.5 in October from 70.3 in September. The index is now at its lowest since June this year. Consumers rated current economic conditions the worst on record, with this gauge falling to 58.9 from September's 75.0.
The Organization of Petroleum Exporting Countries has decided to reschedule its extraordinary meeting for Oct. 24th rather than Nov. 18th as previously announced. The OPEC meeting will focus on the global financial crisis, the world economic situation and the impacts on the oil market.
General Motors Corp. (GM) and Chrysler LLC are picking up the pace on merger talks, pushed by banks and other lenders eager to see a deal. GM shares have slid dramatically lower as it and other U.S. car makers have been hit by surging oil prices, declining demand for large, gas-guzzling models and dwindling financing options for potential buyers.
CVS Caremark (CVS) said that it extended its $71.50-a-share tender offer for Longs Drug Stores Corp (LDG) by one day to 9 p.m. (Eastern Time) on Friday. About 77.6% of the outstanding Longs' shares were tendered and not withdrawn.
Scheduled U.S. Economic Reports (Next Week)
Leading Economic Indicators (Sep), Existing Home Sales (Sep)
In Earnings News
Honeywell International Inc. (HON) said its third-quarter earnings rose 16% as rising profit in its automation and control solutions unit offset a decline in aerospace. For the recent quarter, the company said it earned $719 million, or 97 cents a share. Analysts were expecting 95 cents.
Schlumberger (SLB) reported its revenues jumped 24 percent during the third quarter but the world's largest oilfield Services Company said that the global economic crisis will undoubtedly take a toll. Schlumberger reported net income of $1.53 billion, or $1.25 per share.
Wilmington Trust Corp. (WL) said its third-quarter profit dropped by 50 percent. Wilmington reported net income for the three months ended Sept. 30 of $22.9 million, or 34 cents per share. Wilmington Trust posted a profit of $46.2 million, or 67 cents per share, in the same quarter a year ago.
Genuine Parts Co. (GPC) reported its third-quarter earnings edged higher as revenue in its electrical and industrial units offset lackluster results in its automotive group. The company said earnings for the quarter rose 2 percent to $131 million, or 81 cents per share. Analysts expected 78 cents.
Administaff (ASF) expects earnings of 46 cents per share for the quarter, above the average estimate of 44 cents per share forecast by analysts. Administaff projects revenue of $422 million, up 10 percent from a year ago, but shy of analysts' consensus forecast of $427 million.
Scheduled Earnings Reports (Next Week)
Lockheed Martin, American Express, Halliburton, Netflix, Texas Instruments, 3M, Apple Computer, Caterpillar, Fifth Third Bank, Pfizer, UAL Corp, Yahoo, Amazon, AT&T, Boeing, ConocoPhilips, General Dynamics, McDonalds, Coca Cola, Eli Lilly, Microsoft
Stocks in the News
Advanced Micro Devices (AMD) reported a third-quarter loss of $67 million, or 11 cents a share.
Capital One Financial (COF) said it made net income of $374.1 million, or $1 a share, in the third quarter.
Juniper Networks (JNPR) was upgraded to buy from neutral at UBS.
UAL Corp (UAUA) said 322 employees represented by the International Association of Machinists have taken advantage of United Airline's voluntary furlough program.
Abbott Labs (ABT) has won from the U.S. Patent and Trademark Office a one-year interim extension on its rights to the technology behind a widely used stent delivery system.
IBM Corp (IBM) reported a third-quarter operating income of $2.8 billion, or $2.05 per share, compared to earnings of $2.4 billion, or $1.68 per share, for the same period last year.
Housing starts fell 6.3% in September to a seasonally adjusted annual rate of 817,000, the lowest since January 1991. Starts of single-family homes tumbled 12%, the lowest since February 1982. The September estimates were much worse than the annual rate of 870,000 that was expected by economists. Building permits fell 8.3%, a 27-year low. Permits for single-family houses fell 3.8%, the lowest in 26 years.
The University of Michigan Survey of Consumers said its index of confidence plummeted to 57.5 in October from 70.3 in September. The index is now at its lowest since June this year. Consumers rated current economic conditions the worst on record, with this gauge falling to 58.9 from September's 75.0.
The Organization of Petroleum Exporting Countries has decided to reschedule its extraordinary meeting for Oct. 24th rather than Nov. 18th as previously announced. The OPEC meeting will focus on the global financial crisis, the world economic situation and the impacts on the oil market.
General Motors Corp. (GM) and Chrysler LLC are picking up the pace on merger talks, pushed by banks and other lenders eager to see a deal. GM shares have slid dramatically lower as it and other U.S. car makers have been hit by surging oil prices, declining demand for large, gas-guzzling models and dwindling financing options for potential buyers.
CVS Caremark (CVS) said that it extended its $71.50-a-share tender offer for Longs Drug Stores Corp (LDG) by one day to 9 p.m. (Eastern Time) on Friday. About 77.6% of the outstanding Longs' shares were tendered and not withdrawn.
Scheduled U.S. Economic Reports (Next Week)
Leading Economic Indicators (Sep), Existing Home Sales (Sep)
In Earnings News
Honeywell International Inc. (HON) said its third-quarter earnings rose 16% as rising profit in its automation and control solutions unit offset a decline in aerospace. For the recent quarter, the company said it earned $719 million, or 97 cents a share. Analysts were expecting 95 cents.
Schlumberger (SLB) reported its revenues jumped 24 percent during the third quarter but the world's largest oilfield Services Company said that the global economic crisis will undoubtedly take a toll. Schlumberger reported net income of $1.53 billion, or $1.25 per share.
Wilmington Trust Corp. (WL) said its third-quarter profit dropped by 50 percent. Wilmington reported net income for the three months ended Sept. 30 of $22.9 million, or 34 cents per share. Wilmington Trust posted a profit of $46.2 million, or 67 cents per share, in the same quarter a year ago.
Genuine Parts Co. (GPC) reported its third-quarter earnings edged higher as revenue in its electrical and industrial units offset lackluster results in its automotive group. The company said earnings for the quarter rose 2 percent to $131 million, or 81 cents per share. Analysts expected 78 cents.
Administaff (ASF) expects earnings of 46 cents per share for the quarter, above the average estimate of 44 cents per share forecast by analysts. Administaff projects revenue of $422 million, up 10 percent from a year ago, but shy of analysts' consensus forecast of $427 million.
Scheduled Earnings Reports (Next Week)
Lockheed Martin, American Express, Halliburton, Netflix, Texas Instruments, 3M, Apple Computer, Caterpillar, Fifth Third Bank, Pfizer, UAL Corp, Yahoo, Amazon, AT&T, Boeing, ConocoPhilips, General Dynamics, McDonalds, Coca Cola, Eli Lilly, Microsoft
Stocks in the News
Advanced Micro Devices (AMD) reported a third-quarter loss of $67 million, or 11 cents a share.
Capital One Financial (COF) said it made net income of $374.1 million, or $1 a share, in the third quarter.
Juniper Networks (JNPR) was upgraded to buy from neutral at UBS.
UAL Corp (UAUA) said 322 employees represented by the International Association of Machinists have taken advantage of United Airline's voluntary furlough program.
Abbott Labs (ABT) has won from the U.S. Patent and Trademark Office a one-year interim extension on its rights to the technology behind a widely used stent delivery system.
IBM Corp (IBM) reported a third-quarter operating income of $2.8 billion, or $2.05 per share, compared to earnings of $2.4 billion, or $1.68 per share, for the same period last year.
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