JDfn Daily Digest - November 7, 2008
The Labor Department reported the U.S. unemployment rate jumped to a 14-year high of 6.5% in October as nearly a quarter million jobs were lost. U.S. nonfarm payrolls fell by 240,000 in October following a revised decline of 284,000 in September, which was the largest job loss in seven years. So far in 2008, a total of 1.18 million jobs have been lost, with 651,000 coming in just the past three months.
The Commerce Department said inventories fell by 0.1 percent. Analysts had expected them to grow by 0.3 percent. The department also revised August's reading down to a 0.6 percent increase from 0.8 percent. Wholesale sales also dropped in September, by 1.5 percent, the department said, following a revised 1.6 decline the previous month.
The Federal Reserve reported that U.S. consumers took on more debt in September, reversing a surprising decline in the previous month. Total seasonally adjusted consumer debt increased by $6.86 billion, or a 3.2% annual rate, in September to $2.59 trillion. Consumer credit fell at a 3.9% pace in the previous month which was the first decline since January 1998.
President-elect Barack Obama held a meeting with his new economic transition team to begin addressing the nation's economic troubles well before his inauguration. Obama met with economic advisers including Warren Buffett, former Federal Reserve Vice Chairman Roger Ferguson, former Treasury Secretary Robert Rubin and former Securities and Exchange Commission Chairman William Donaldson, among others.
House Speaker Nancy Pelosi will seek to add a tax cut to an economic stimulus measure Congress will consider early next year. Democrats are considering passing two stimulus measures, one during a so-called lame duck session this month and another after Obama and the larger Democratic majority in the House and Senate take office in January.
A number of government contracts were announced by the Pentagon today,
Northrop Grumman Corp. (NOC) received a $6.5 million contract from the Navy for advanced planning efforts to prepare for the defueling and inactivation of the USS Enterprise and its reactor plants. The USS Enterprise is the world's first nuclear-powered aircraft carrier.
Also, Boeing Co. (BA) received a $14 million contract from the Navy to provide equipment for 72 F/A-18Fs, a multirole fighter jet, used by the Australian government.
And, finally, Boeing's McDonnell Douglas Corp. unit received a $6.5 million order from the Navy for additional work on the airframe and landing gear of the T-45 Goshawk.
General Motors Corp. (GM), Ford Motor Co. (F) and Chrysler LLC, strapped for cash as sales plunge, are seeking $50 billion in federal loans to help them weather the worst auto market in 25 years. The package would be $25 billion for health-care spending and $25 billion for general liquidity that could be delivered in different ways, including short-term borrowing from the Federal Reserve.
Meantime, Porsche SE, maker of the 911 sports car, said full-year profit surged 51 percent to a record because of gains in the value of its Volkswagen AG holding, prompting the company to raise its dividend.
Scheduled U.S. Economic Reports (Next Week)
Trade Balance, Federal Budget, Import Price Index, Retail Sales, Inventories, Consumer Sentiment
In Earnings News
Ford Motor Co. (F) reported it lost $129 million in the third quarter as the struggling automaker burned through $7.7 billion in cash. Ford says it lost 6 cents per share for the quarter, compared with a loss of $380 million, or 19 cents per share, a year ago.
Sprint Nextel (S) said it lost $326 million in the third quarter. The company said its loss amounted to 11 cents per share for the three months ending Sept. 30th.
E.W. Scripps (SSP) reported a third-quarter loss and announced that it would cut 400 jobs as the local advertising market continued to deteriorate. It also suspended its dividend. Scripps lost $16.8 million, or 31 cents per share. Analysts, on average, expected a profit of 9 cents per share.
British Airways Plc reported a first-half net loss of 49 million pounds ($77 million), as record high oil prices and a global economic slowdown hit the airline's bottom line.
Scheduled Earnings Reports (Next Week)
Wal-Mart, Tyson Foods, Ballard Power, Nortel Networks, Rural/Metro, Six Flags, Bob Evans Farms, Fossil, Liz Claiborne, Applied Materials, ING Group, Macys, Kohl’s, Nordstrom, Urban Outfitters, Abercrombie & Fitch, JC Penney
Stocks in the News
Priceline.com (PCLN) said that its third-quarter profit fell to $88 million or $1.81 a share.
Bally Technologies (BYI) reported its fiscal first-quarter net income rose to $30.3 million, or 52 cents a share.
Qualcomm (QCOM) said that net income fell 22% for the fourth fiscal quarter as sales jumped 43% for the same period.
VeriSign Inc (VRSN) reported a third-quarter net loss of $200 million, or $1.02 a share.
Flour Corp (FLR) reported third-quarter net income rose to $183 million, or $1.01 a share.
Nvidia Corp (NVDA) reported third-quarter net profit of $61.7 million, or 11 cents a share.
Assured Guaranty (AGO) reported a third-quarter net loss of $63.3 million, or 70 cents a share.
The Commerce Department said inventories fell by 0.1 percent. Analysts had expected them to grow by 0.3 percent. The department also revised August's reading down to a 0.6 percent increase from 0.8 percent. Wholesale sales also dropped in September, by 1.5 percent, the department said, following a revised 1.6 decline the previous month.
The Federal Reserve reported that U.S. consumers took on more debt in September, reversing a surprising decline in the previous month. Total seasonally adjusted consumer debt increased by $6.86 billion, or a 3.2% annual rate, in September to $2.59 trillion. Consumer credit fell at a 3.9% pace in the previous month which was the first decline since January 1998.
President-elect Barack Obama held a meeting with his new economic transition team to begin addressing the nation's economic troubles well before his inauguration. Obama met with economic advisers including Warren Buffett, former Federal Reserve Vice Chairman Roger Ferguson, former Treasury Secretary Robert Rubin and former Securities and Exchange Commission Chairman William Donaldson, among others.
House Speaker Nancy Pelosi will seek to add a tax cut to an economic stimulus measure Congress will consider early next year. Democrats are considering passing two stimulus measures, one during a so-called lame duck session this month and another after Obama and the larger Democratic majority in the House and Senate take office in January.
A number of government contracts were announced by the Pentagon today,
Northrop Grumman Corp. (NOC) received a $6.5 million contract from the Navy for advanced planning efforts to prepare for the defueling and inactivation of the USS Enterprise and its reactor plants. The USS Enterprise is the world's first nuclear-powered aircraft carrier.
Also, Boeing Co. (BA) received a $14 million contract from the Navy to provide equipment for 72 F/A-18Fs, a multirole fighter jet, used by the Australian government.
And, finally, Boeing's McDonnell Douglas Corp. unit received a $6.5 million order from the Navy for additional work on the airframe and landing gear of the T-45 Goshawk.
General Motors Corp. (GM), Ford Motor Co. (F) and Chrysler LLC, strapped for cash as sales plunge, are seeking $50 billion in federal loans to help them weather the worst auto market in 25 years. The package would be $25 billion for health-care spending and $25 billion for general liquidity that could be delivered in different ways, including short-term borrowing from the Federal Reserve.
Meantime, Porsche SE, maker of the 911 sports car, said full-year profit surged 51 percent to a record because of gains in the value of its Volkswagen AG holding, prompting the company to raise its dividend.
Scheduled U.S. Economic Reports (Next Week)
Trade Balance, Federal Budget, Import Price Index, Retail Sales, Inventories, Consumer Sentiment
In Earnings News
Ford Motor Co. (F) reported it lost $129 million in the third quarter as the struggling automaker burned through $7.7 billion in cash. Ford says it lost 6 cents per share for the quarter, compared with a loss of $380 million, or 19 cents per share, a year ago.
Sprint Nextel (S) said it lost $326 million in the third quarter. The company said its loss amounted to 11 cents per share for the three months ending Sept. 30th.
E.W. Scripps (SSP) reported a third-quarter loss and announced that it would cut 400 jobs as the local advertising market continued to deteriorate. It also suspended its dividend. Scripps lost $16.8 million, or 31 cents per share. Analysts, on average, expected a profit of 9 cents per share.
British Airways Plc reported a first-half net loss of 49 million pounds ($77 million), as record high oil prices and a global economic slowdown hit the airline's bottom line.
Scheduled Earnings Reports (Next Week)
Wal-Mart, Tyson Foods, Ballard Power, Nortel Networks, Rural/Metro, Six Flags, Bob Evans Farms, Fossil, Liz Claiborne, Applied Materials, ING Group, Macys, Kohl’s, Nordstrom, Urban Outfitters, Abercrombie & Fitch, JC Penney
Stocks in the News
Priceline.com (PCLN) said that its third-quarter profit fell to $88 million or $1.81 a share.
Bally Technologies (BYI) reported its fiscal first-quarter net income rose to $30.3 million, or 52 cents a share.
Qualcomm (QCOM) said that net income fell 22% for the fourth fiscal quarter as sales jumped 43% for the same period.
VeriSign Inc (VRSN) reported a third-quarter net loss of $200 million, or $1.02 a share.
Flour Corp (FLR) reported third-quarter net income rose to $183 million, or $1.01 a share.
Nvidia Corp (NVDA) reported third-quarter net profit of $61.7 million, or 11 cents a share.
Assured Guaranty (AGO) reported a third-quarter net loss of $63.3 million, or 70 cents a share.
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