James Dicks Daily Digest - February 12, 2009
Economic stimulus legislation at the heart of President Obama's recovery plan is on track for final votes in the House and Senate after a dizzying final round of bargaining that yielded agreement on tax cuts and spending totaling $789 billion.
The Labor Department said initial claims for state unemployment insurance benefits dropped 8,000 to a seasonally adjusted 623,000 in the week ending February 7th. Analysts were expecting 610,000 claims.
The Commerce Department said total retail sales rose 1 percent, advancing for the first time in seven months, after slumping by a revised 3 percent in December, previously reported as a 2.7 percent decline. January's increase in retail sales was the biggest since November 2007. Excluding motor vehicles and parts, sales were up 0.9 percent.
The Commerce Department says business inventories fell 1.3 percent in December, far worse than the 0.9 percent decline analysts expected. It was the largest cut since the record 1.5 percent in October 2001. It also marked the fourth straight month that companies cut their stockpiles, matching a similar stretch of reductions that ended in August 2003.
RealtyTrac Inc. said the number of Americans on the verge of losing their homes fell in January but was still up from the same month a year ago. Nationwide, more than 274,000 homes received at least one foreclosure-related notice last month. That was down 10 percent from December, but still 18 percent higher than a year ago.
Freddie Mac (FRE) reported the 30-year fixed-rate mortgage average fell from the previous week to 5.16% for the week ending Feb. 12th. In the previous period, the average was 5.25%, and the year-ago average was 5.72%.
Aluminum Corp. of China, one of the world's biggest aluminum producers, agreed to invest $19.5 billion in global miner Rio Tinto Group (RTP) in the country's biggest overseas investment so far.
Verizon Wireless (VZ) announced that subscribers on some qualifying plans will be able to pick five or 10 phone numbers that they can call for free, without drawing down their plan's minutes. There is no added charge for the service. It mimics a popular feature called "My Circle" at Alltel Corp., a smaller carrier that Verizon Wireless bought in January.
Scheduled U.S. Economic Reports (Friday)
Consumer Sentiment (Feb)
In Earnings News
The Coca-Cola Co. (KO) said its fourth-quarter profit fell 18 percent as it dealt with the global recession and volatility in the currency markets. The company earned $995 million, or 43 cents per share. Analysts expected profit of 61 cents per share.
Viacom Inc. (VIA-B) said its fourth-quarter profit fell 69 percent. Viacom said it earned $173 million or 28 cents per share - a penny less than what analysts expected.
Aetna Inc. (AET) reported its fourth-quarter profit tumbled 57 percent. Aetna earned $194.7 million, or 42 cents per share but analysts expected 94 cents a share.
Waste Managements (WMI) reported that net income fell to $218 million, or 44 cents per share, from $309 million, or 61 cents per share, in the year-earlier period. Analysts expected earnings of 48 cents per share.
Marriott International (MAR) said its loss amounted to 3 cents per share for the three months ended Jan. 2 compared with a profit of $176 million, or 46 cents per share, a year earlier. Analysts forecast profit of 39 cents per share.
Scheduled Earnings Reports (Friday)
PepsiCo, Wyndham Worldwide, Abercrombie & Fitch, Fuji Electric, Northwestern Corp, U.S. Gold Corp
Stocks in the News
Orleans Homebuilders Inc (OHB) reported a narrower fiscal second-quarter loss on 42% lower revenue.
Sirius XM Radio's (SIRI) Chief Executive Mel Karmazin has approached DirecTV Group (DTV) and Liberty Media (LINTA) in an effort to fend off bankruptcy.
Everest Re Group (RE) reported a fourth-quarter net loss of $16.6 million, or 27 cents a share, compared with net income of $12.2 million, or 19 cents a share.
NetApp Inc (NTAP) reported a fiscal third-quarter loss of $75 million, or 23 cents a share, compared with profit of $102 million, or 29 cents a share, in the year-earlier period.
BorgWarner Inc (BWA) reported a fourth-quarter loss of $81.4M, or 70 cents a share.
Stifel Financial Corp (SF) reported fourth-quarter net income of $17.8 million, or 59 cents a share, up from $13.8 million, or 51 cents, in the final three months of 2007.
Willis Group’s (WSH) fourth-quarter net income came in at $62 million, or 37 cents a share, down 35% from a year earlier.
Lincoln National Corp (LNC) priced a public offering of 5.5 million common shares at $14. Of the total, the company is selling 1 million and shareholders 4.5 million.
The Labor Department said initial claims for state unemployment insurance benefits dropped 8,000 to a seasonally adjusted 623,000 in the week ending February 7th. Analysts were expecting 610,000 claims.
The Commerce Department said total retail sales rose 1 percent, advancing for the first time in seven months, after slumping by a revised 3 percent in December, previously reported as a 2.7 percent decline. January's increase in retail sales was the biggest since November 2007. Excluding motor vehicles and parts, sales were up 0.9 percent.
The Commerce Department says business inventories fell 1.3 percent in December, far worse than the 0.9 percent decline analysts expected. It was the largest cut since the record 1.5 percent in October 2001. It also marked the fourth straight month that companies cut their stockpiles, matching a similar stretch of reductions that ended in August 2003.
RealtyTrac Inc. said the number of Americans on the verge of losing their homes fell in January but was still up from the same month a year ago. Nationwide, more than 274,000 homes received at least one foreclosure-related notice last month. That was down 10 percent from December, but still 18 percent higher than a year ago.
Freddie Mac (FRE) reported the 30-year fixed-rate mortgage average fell from the previous week to 5.16% for the week ending Feb. 12th. In the previous period, the average was 5.25%, and the year-ago average was 5.72%.
Aluminum Corp. of China, one of the world's biggest aluminum producers, agreed to invest $19.5 billion in global miner Rio Tinto Group (RTP) in the country's biggest overseas investment so far.
Verizon Wireless (VZ) announced that subscribers on some qualifying plans will be able to pick five or 10 phone numbers that they can call for free, without drawing down their plan's minutes. There is no added charge for the service. It mimics a popular feature called "My Circle" at Alltel Corp., a smaller carrier that Verizon Wireless bought in January.
Scheduled U.S. Economic Reports (Friday)
Consumer Sentiment (Feb)
In Earnings News
The Coca-Cola Co. (KO) said its fourth-quarter profit fell 18 percent as it dealt with the global recession and volatility in the currency markets. The company earned $995 million, or 43 cents per share. Analysts expected profit of 61 cents per share.
Viacom Inc. (VIA-B) said its fourth-quarter profit fell 69 percent. Viacom said it earned $173 million or 28 cents per share - a penny less than what analysts expected.
Aetna Inc. (AET) reported its fourth-quarter profit tumbled 57 percent. Aetna earned $194.7 million, or 42 cents per share but analysts expected 94 cents a share.
Waste Managements (WMI) reported that net income fell to $218 million, or 44 cents per share, from $309 million, or 61 cents per share, in the year-earlier period. Analysts expected earnings of 48 cents per share.
Marriott International (MAR) said its loss amounted to 3 cents per share for the three months ended Jan. 2 compared with a profit of $176 million, or 46 cents per share, a year earlier. Analysts forecast profit of 39 cents per share.
Scheduled Earnings Reports (Friday)
PepsiCo, Wyndham Worldwide, Abercrombie & Fitch, Fuji Electric, Northwestern Corp, U.S. Gold Corp
Stocks in the News
Orleans Homebuilders Inc (OHB) reported a narrower fiscal second-quarter loss on 42% lower revenue.
Sirius XM Radio's (SIRI) Chief Executive Mel Karmazin has approached DirecTV Group (DTV) and Liberty Media (LINTA) in an effort to fend off bankruptcy.
Everest Re Group (RE) reported a fourth-quarter net loss of $16.6 million, or 27 cents a share, compared with net income of $12.2 million, or 19 cents a share.
NetApp Inc (NTAP) reported a fiscal third-quarter loss of $75 million, or 23 cents a share, compared with profit of $102 million, or 29 cents a share, in the year-earlier period.
BorgWarner Inc (BWA) reported a fourth-quarter loss of $81.4M, or 70 cents a share.
Stifel Financial Corp (SF) reported fourth-quarter net income of $17.8 million, or 59 cents a share, up from $13.8 million, or 51 cents, in the final three months of 2007.
Willis Group’s (WSH) fourth-quarter net income came in at $62 million, or 37 cents a share, down 35% from a year earlier.
Lincoln National Corp (LNC) priced a public offering of 5.5 million common shares at $14. Of the total, the company is selling 1 million and shareholders 4.5 million.
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