JDFN Financial Network

JDfn Daily Digest - December 24, 2008

U.S. Stock markets will close early today, Christmas Eve, and will be closed all day tomorrow in observance of Christmas Day.

The Labor Department reported that the U.S. labor market continued to worsen in recent weeks, with the unemployment lines stretching to the longest in 26 years. First-time applications for state unemployment benefits jumped by 30,000 to a seasonally adjusted 586,000 in the week ending Dec. 20, the government said, based on reports of actual filings at state offices around the nation. That's the highest since November 1982.

The Commerce Department reported that consumer spending fell 0.6% in November amid mounting job losses and persistent economic uncertainty. Analysts expected a 0.7% decline. Real consumer spending rose 0.6%. Personal income fell 0.2% in November, after a 0.1% gain in October. Analysts were looking for no income gain in November.

The Commerce Department estimated that orders for U.S.-made durable goods fell 1% in November, as orders for transportation goods fell 7.4%. Economists surveyed expected an overall decline of 3%.

Congressional lawmakers are reportedly turning up the heat on banks that have received money from the Treasury Department's $700 billion rescue fund after the Associated Press reported that they wouldn't say how they are using the money. Senators Dianne Feinstein and Olympia Snowe said that they will propose legislation next month to force companies that receive money from the fund to report how they have spent it.

Meantime, the Treasury Department says it has provided an additional $4.7 billion to 92 banks as part of the government's $700 billion rescue of the financial system. The department released a list of 49 banks that got final approval last Friday to receive $2.8 billion. It said an additional 43 banks received final approval Tuesday, but those names will not be released until next Monday.

U.S. mortgage applications surged to the highest level in over five years in the latest week. The Mortgage Bankers Association said its seasonally adjusted index of mortgage applications, which includes both purchase and refinance loans, for the week ended Dec. 19 increased 48.0 percent, the highest reading since the week ended July 18, 2003.

Japan's Cabinet approved a budget proposal that, if passed by lawmakers, will push spending to record levels as the country battles a worsening recession. The Finance Ministry's draft budget consists of a spending increase of 6.6 percent to 88.5 trillion yen ($990.9 billion) for the next fiscal year -- the biggest ever figure in an initial proposal.

Toyota (TM) announced its global vehicle sales fell 21.8 percent in November, the biggest drop in eight years. Nissan (NSANY) said its worldwide sales sank 19.8 percent and global production nose-dived a record 33.7 percent on depressed sales in the United States.

Wal-Mart Stores Inc. (WMT) said it will pay as much as $640 million to settle 63 lawsuits over wage-and-hour violations, ending years of dispute. The discount retailer, which has more than 1.4 million employees, said the amount it pays will depend on how many claims are submitted by eligible workers and could range from $352 million to $640 million.

Lockheed Martin (LMT) said it would pay an undisclosed sum to buy Universal Systems & Technology Inc. Unitech employs more than 400 people as an interactive training and simulation, homeland security, and technical solutions contractor for the U.S. government. Lockheed Martin's Simulation, Training and Support division based in Orlando, Fl., will manage the Unitech business.

Starbucks (SBUX) has informed employees it won't guarantee matching contributions to their 401(k) retirement plans next year. In a memo sent to workers last week, Starbucks said it will switch to a "fully discretionary match" program from a fixed employer match as of Jan. 1st.”

Saying “times have changed,” FedEx Corp. (FDX) announced it will not advertise during Super Bowl 43, set for Tampa Bay, Fla., on Feb. 1st. FedEx has run ads during the Super Bowl broadcast for the past 12 years and has had an advertising presence in 18 Super Bowls since 1989. Some Super Bowl ads go for as much as $3 million each.

Scheduled U.S. Economic Reports (Thursday)

None Scheduled

In Earnings News

Micron Technology (MU) reported a bigger quarterly net loss as the semiconductor maker reeled from "significant decreases" in average prices for memory-chip products. The company's adjusted net loss was 72 cents a share. Analysts' consensus had called for Micron to report a loss of 45 cents a share.

Navistar International Corp. (NAV), a truck, bus and engine maker, said it will restate its financial results for the nine months ended July 31st, increasing the net income for the period. Navistar said it will increase net income results for the first nine months of its fiscal 2008 by $50 million to $70 million, or 68 cents per share and 95 cents per share.

American Greetings (AM) posted a loss of $193.3 million, or a loss of $4.25 per share, compared with a profit of $29 million, or 52 cents per share, last year. Sales declined 6.5 percent to $454.1 million from $485.8 million.

Exar Corp (EXAR) expects its sales for its fiscal third quarter ending Dec. 28th to range between $25.5 million and $27 million, down from its previous goal of $29 million to $32 million. Management made that projection in late October as a global credit crisis shoved the economy into an even deeper hole.

Scheduled Earnings Reports (Thursday)

No major earnings reports are scheduled on Christmas Day

Stocks in the News

General Motors Corp. (GM) will try to win agreements to reduce debt and rework labor agreements in a span of less than three months as it pushes the start of formal talks into January.

Textron Inc (TXT) and its Textron Financial Corp. unit were downgraded by Fitch Ratings because of a deteriorating operating performance in the financials unit.

Owens-Illinois Inc (OI) will replace Wachovia Corp. in the Standard & Poor’s 500 Index.

AstraZeneca (AZN) said it has received a complete response letter from the U.S. Food and Drug Administration asking for additional information for the supplemental New Drug Application for Seroquel XR extended release tablets.

Views: 2

Comment

You need to be a member of JDFN Financial Network to add comments!

Join JDFN Financial Network

About

James Dicks created this Ning Network.

© 2024   Created by James Dicks.   Powered by

Badges  |  Report an Issue  |  Terms of Service