JDfn Daily Digest - October 31, 2008
The Commerce Department reported that personal spending fell by 0.3 percent last month, the biggest decline since June of 2004. That followed flat readings in both July and August, contributing to the worst quarterly performance in 28 years. Incomes showed a 0.2 percent rise in September, just half of the August increase, a slowdown that partly reflected the adverse effects of Hurricane Ike along the Gulf Coast.
The Labor Department reported that employment costs for civilian workers increased by a seasonally-adjusted 0.7 percent for the June-September period, the same increase as in the previous two quarters.
U.S. consumer sentiment dropped in October from the prior month. The index fell to 57.6 in late October, compared with a reading of 70.3 in late September. Earlier in October, the reading hit 57.5. Economists were expecting a final October reading of 57.5.
The Institute for Supply Management-Chicago reported its business index decreased to 37.8 this month, the lowest level since the 2001 recession, from 56.7 in September. The monthly drop is the biggest since the index started in 1968. Fifty is the dividing line between growth and contraction.
American Express (AXP) has received a request from the U.S. Department of Justice for information regarding the credit card company's policies related to merchant surcharging. American Express said it intends to cooperate with the department's request for documents and other information regarding the company's policies related to merchant surcharging and its "anti-steering" policies that prohibit merchants from discriminating against the American Express card in favor of other forms of payment.
Auto parts supplier ArvinMeritor (ARM) says it will cut 1,250 jobs to help cut costs as weakness persists in the U.S. economy and auto market. The company says the cuts represent about 7 percent of its worldwide staff. Chief Executive Chip McClure says these "swift and decisive" actions are needed because of softness in all markets and weaker foreign currencies.
Loews Corp. (L) said it will spend $490 million on 21.2 million common shares of Boardwalk Pipeline Partners LP (BWP), which plans to use the proceeds to expand its pipelines. The deal is expected to close next week.
Scheduled U.S. Economic Reports (Next Week)
ISM Manufacturing Index (Oct), Construction Spending (Sep), Vehicle Sales (Oct), Factory Orders (Sep), ISM Non-Manufacturing Index (Oct), Productivity (3Q), Wholesale Inventories (Sep), Consumer Credit (Sep), Non-Farm Payrolls (Oct)
In Earnings News
Chevron (CVX) said its third-quarter profit more than doubled. The company, the second-largest U.S. oil company, said it made $7.89 billion, or $3.85 a share. Analysts were expecting average earnings of $3.25 per share.
NYSE Euronext (NYX) reported that earnings fell to $174 million, or 66 cents per share, from $258 million, or 97 cents per share, during the same quarter a year earlier. Analysts, on average, forecast earnings of 72 cents per share.
Nissan (NSANY) reported a 39 percent drop in fiscal second quarter profit. Japanese automakers have been more resilient in avoiding the serious sales plunges and monetary losses of their American rivals. But they have been hurt by the global slowdown.
Burger King Holdings Inc. (BKC) said net income rose to $50 million, or 36 cents per share, from $49 million, or 35 cents per share in the year-ago quarter. The company earned 38 cents per share excluding charges. Analysts expected profit of 39 cents per share.
American Electric Power (AEP) said that its third quarter earnings fell 8 percent from a year ago. The company said that it made $374 million, or 93 cents per share, for the quarter ended Sept. 30 compared with profit of $407 million, or $1.02 per share, a year ago.
Weyerhaeuser (WY), which sold its $6 billion packaging business in August, says gains from that divestiture helped boost its third-quarter profit. Profit rose to $280 million, or $1.33 per share. Analysts, on average, expected a loss of 6 cents per share.
Scheduled Earnings Reports (Next Week)
Anadarko Petroleum, Goodyear Tire & Rubber, Administaff, Cisco Systems, Viacom, Archer Daniels Midland, Dean Foods, Cox Radio, Time Warner, Blockbuster, El Paso Corp, Public Storage, Trump Entertainment
Stocks in the News
Monster Worldwide (MNST) said its third-quarter profit rose to $42.8 million, or 35 cents a share, from $33.3 million, or 25 cents a share, in the year-ago period.
BMC Software (BMC) said its fiscal second-quarter net income fell to $70 million or 36 cents a share.
McAfee Inc (MFE) said its fiscal third-quarter net income fell to $48.8 million or 31 cents a share.
Advanced Medical Optics (EYE) reported third-quarter net income of $7.1 million, or 11 cents a share.
Clorox (CLX) reported that its fiscal first-quarter profit rose to $128 million, or 91 cents a share.
Express Scripts (ESRX) reported third-quarter net income of $201.9 million, or 81 cents a share.
Washington Post Co. (WPO) said its third-quarter profit fell sharply to $10.3 million, or $1.08 a share.
Apartment Investment and Management Co. (AIV) said its third-quarter profit totaled $164 million, or $1.81 a share.
Wynn Resorts (WYNN) said that growth in Macau offset a slump in Las Vegas, pushing third-quarter profit higher.
The Labor Department reported that employment costs for civilian workers increased by a seasonally-adjusted 0.7 percent for the June-September period, the same increase as in the previous two quarters.
U.S. consumer sentiment dropped in October from the prior month. The index fell to 57.6 in late October, compared with a reading of 70.3 in late September. Earlier in October, the reading hit 57.5. Economists were expecting a final October reading of 57.5.
The Institute for Supply Management-Chicago reported its business index decreased to 37.8 this month, the lowest level since the 2001 recession, from 56.7 in September. The monthly drop is the biggest since the index started in 1968. Fifty is the dividing line between growth and contraction.
American Express (AXP) has received a request from the U.S. Department of Justice for information regarding the credit card company's policies related to merchant surcharging. American Express said it intends to cooperate with the department's request for documents and other information regarding the company's policies related to merchant surcharging and its "anti-steering" policies that prohibit merchants from discriminating against the American Express card in favor of other forms of payment.
Auto parts supplier ArvinMeritor (ARM) says it will cut 1,250 jobs to help cut costs as weakness persists in the U.S. economy and auto market. The company says the cuts represent about 7 percent of its worldwide staff. Chief Executive Chip McClure says these "swift and decisive" actions are needed because of softness in all markets and weaker foreign currencies.
Loews Corp. (L) said it will spend $490 million on 21.2 million common shares of Boardwalk Pipeline Partners LP (BWP), which plans to use the proceeds to expand its pipelines. The deal is expected to close next week.
Scheduled U.S. Economic Reports (Next Week)
ISM Manufacturing Index (Oct), Construction Spending (Sep), Vehicle Sales (Oct), Factory Orders (Sep), ISM Non-Manufacturing Index (Oct), Productivity (3Q), Wholesale Inventories (Sep), Consumer Credit (Sep), Non-Farm Payrolls (Oct)
In Earnings News
Chevron (CVX) said its third-quarter profit more than doubled. The company, the second-largest U.S. oil company, said it made $7.89 billion, or $3.85 a share. Analysts were expecting average earnings of $3.25 per share.
NYSE Euronext (NYX) reported that earnings fell to $174 million, or 66 cents per share, from $258 million, or 97 cents per share, during the same quarter a year earlier. Analysts, on average, forecast earnings of 72 cents per share.
Nissan (NSANY) reported a 39 percent drop in fiscal second quarter profit. Japanese automakers have been more resilient in avoiding the serious sales plunges and monetary losses of their American rivals. But they have been hurt by the global slowdown.
Burger King Holdings Inc. (BKC) said net income rose to $50 million, or 36 cents per share, from $49 million, or 35 cents per share in the year-ago quarter. The company earned 38 cents per share excluding charges. Analysts expected profit of 39 cents per share.
American Electric Power (AEP) said that its third quarter earnings fell 8 percent from a year ago. The company said that it made $374 million, or 93 cents per share, for the quarter ended Sept. 30 compared with profit of $407 million, or $1.02 per share, a year ago.
Weyerhaeuser (WY), which sold its $6 billion packaging business in August, says gains from that divestiture helped boost its third-quarter profit. Profit rose to $280 million, or $1.33 per share. Analysts, on average, expected a loss of 6 cents per share.
Scheduled Earnings Reports (Next Week)
Anadarko Petroleum, Goodyear Tire & Rubber, Administaff, Cisco Systems, Viacom, Archer Daniels Midland, Dean Foods, Cox Radio, Time Warner, Blockbuster, El Paso Corp, Public Storage, Trump Entertainment
Stocks in the News
Monster Worldwide (MNST) said its third-quarter profit rose to $42.8 million, or 35 cents a share, from $33.3 million, or 25 cents a share, in the year-ago period.
BMC Software (BMC) said its fiscal second-quarter net income fell to $70 million or 36 cents a share.
McAfee Inc (MFE) said its fiscal third-quarter net income fell to $48.8 million or 31 cents a share.
Advanced Medical Optics (EYE) reported third-quarter net income of $7.1 million, or 11 cents a share.
Clorox (CLX) reported that its fiscal first-quarter profit rose to $128 million, or 91 cents a share.
Express Scripts (ESRX) reported third-quarter net income of $201.9 million, or 81 cents a share.
Washington Post Co. (WPO) said its third-quarter profit fell sharply to $10.3 million, or $1.08 a share.
Apartment Investment and Management Co. (AIV) said its third-quarter profit totaled $164 million, or $1.81 a share.
Wynn Resorts (WYNN) said that growth in Macau offset a slump in Las Vegas, pushing third-quarter profit higher.
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