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News That Moved the Market
More Financial Woes Hit Stocks. The markets opened down and never were able to recover after numerous companies in the financial sector came out with bad news. Thornburg Mortgage (TMA, -51.5%) plummeted after its ratings were downgraded by the main ratings agencies. The company disclosed it was not able to meet a margin call of $28 million, triggering defaults in other lending agreements. Washington Mutual (WM, -8.1%) fell following S&P's downgrade of the company, citing a "severe residential mortgage credit cycle" as the catalyst for decision. WaMu was placed on CreditWatch with negative implications. Major indices finished near their lows, w ith the Dow closing just above 12,000. Whether it holds it tomorrow will be an important mental threshold for investors.
Foreclosures Spike. U.S. mortgage foreclosures hit all-time high at the end of last year, according to the Mortgage Bankers Association. New foreclosures increased to 0.83% of all home loans last quarter, with late payment jumping to a 23-year high.
Citi To Cut Mortgage Holdings by 20%. Citigroup (C, -4.4%) announced it will decrease its mortgage assets by $45 billion over the next year. The company will make fewer loans that it cannot sell.
Retail Sales Better Than Expected. Wal-Mart (WMT, +0.86%) reported higher than expected February sales, as more consumers turned to the low cost retailer. U.S. retailers' same store sales increased by 1.9%, beating estimates. About 60% of retailers reported higher than anticipated sales.
Quick Tics:
Merrill Lynch (MER, -7.0%) will exit the subprime lending industry
Crude increased to $105.47, up $0.95.
Tomorrow Notable Earnings
NONE
Economic Events:
8:30 AM: Jobs Report
3:00 PM: Consumer Credit
Thursday, March 6, 2008
A Commodity Linked CD....
Now I've seen it all. Take a look at this CD that just came out. It is tied to the performance of Commodities.
Silverton Bank Commodity Linked CD
Maturity 9/30/2013
If held to maturity, purchasers get their original investment back plus a return of 125% of a basket tied to the performance of the following commodities:
Crude Oil, Coal, Copper, and the Live Cattle Index.
Smells like a top in Commodities to me.....
Silverton Bank Commodity Linked CD
Maturity 9/30/2013
If held to maturity, purchasers get their original investment back plus a return of 125% of a basket tied to the performance of the following commodities:
Crude Oil, Coal, Copper, and the Live Cattle Index.
Smells like a top in Commodities to me.....
More Doom and Gloom...
The percentage of mortgages that were in foreclosure hit a record high in the fourth quarter, while mortgage delinquencies rose to a 23-year high, the Mortgage Bankers Association said Thursday. A record 2.04% of U.S. mortgages were somewhere in the foreclosure process at the end of the year, while a record-high 0.83% of loans entered foreclosure in the fourth quarter, the trade group's quarterly survey found. More homeowners fell behind on payments as well, with 5.82% of loans past due in the quarter. That was the highest delinquency rate since 1983. MBA Chief Economist Doug Duncan said declining home prices were the driving force behind the foreclosure record.
Really??? This is surprising....I would have thought it was more like 60% of the mortgages out there are in the foreclosure process....:-)
Really??? This is surprising....I would have thought it was more like 60% of the mortgages out there are in the foreclosure process....:-)
Will there be ANY Banks or Mortgage Companies This Time Next Year???
Maybe all of them will go out of business.... People will no longer be able to buy a home and we will have to keep our money in our mattresses.
That's the mentality now!!!
This is about the worst sentiment I've ever seen on a sector. I would say we are VERY close to a complete washout...which means we are VERY close to a bottom.
That's the mentality now!!!
This is about the worst sentiment I've ever seen on a sector. I would say we are VERY close to a complete washout...which means we are VERY close to a bottom.
Technical Alert: Akamai Breaking Out...
Akamai (AKAM) is breaking out of a nice cup and handle formation this morning.
The stock is up .91 to $35.72 on decent volume. While the stock looks good here, a break above longer term resistance at $38 would be a more significant BUY signal.
The stock is up .91 to $35.72 on decent volume. While the stock looks good here, a break above longer term resistance at $38 would be a more significant BUY signal.
Joy Global In-Line, But Raises Guidance...
Joy Global Corp.'s (JOYG) fiscal first-quarter net income rose 19% as sales climbed amid demand sparked by the continuing commodities boom abroad and "improving conditions" in the U.S. coal market.
The company boosted its fiscal-year earnings outlook, saying due to high coal prices the outlook for mining equipment looks "robust." Joy said global capacity constraints leave the U.S. the only country with the potential to substantially boost coal output - just as markets around the world are begging for more. "The U.S. has gone from being a regional market to being the swing supplier to the international coal market," the company said. U.S. coal exports rose 10 million tons in 2007, and Joy expects that rise to continue.
The heavy-mining equipment manufacturer reported net income for the quarter ended Feb. 1 of $71.1 million, or 65 cents a share, compared with $59.7 million, or 51 cents a share a year earlier. The latest quarter's results included 1 cent in earnings from discontinued operations. Revenue rose 14% to $640.3 million.
The mean per-share earnings estimate of analysts polled by Thomson Financial was 65 cents on revenue of $639 million.
The company boosted its fiscal-year earnings outlook, saying due to high coal prices the outlook for mining equipment looks "robust." Joy said global capacity constraints leave the U.S. the only country with the potential to substantially boost coal output - just as markets around the world are begging for more. "The U.S. has gone from being a regional market to being the swing supplier to the international coal market," the company said. U.S. coal exports rose 10 million tons in 2007, and Joy expects that rise to continue.
The heavy-mining equipment manufacturer reported net income for the quarter ended Feb. 1 of $71.1 million, or 65 cents a share, compared with $59.7 million, or 51 cents a share a year earlier. The latest quarter's results included 1 cent in earnings from discontinued operations. Revenue rose 14% to $640.3 million.
The mean per-share earnings estimate of analysts polled by Thomson Financial was 65 cents on revenue of $639 million.
Blockbuster Reports In-Line Earnings...
Blockbuster Inc.'s (BBI) fourth-quarter net income more than tripled as operating expenses fell and rental revenue jumped 11%. The company said its 2007 was a year of "transition" and that it expects to return to profitability in 2008 - forecasting net income where analysts had seen a loss. Blockbuster's shares rose in premarket trading.
The movie rental company reported net income of $41 million, or 18 cents a share, compared with $11.2 million, or 4 cents a share, a year earlier. Excluding charges, per-share earnings rose to 26 cents from 11 cents. Revenue grew 3.6% to $1.57 billion.
The mean per-share earnings estimate of analysts polled by Thomson Financial was 18 cents on revenue of $1.44 billion.
Makes sense....People aren't going to stop watching movies....they'll just stay at home and rent...NetFlix beat estimates recently and raised their guidance....looks like a trend to me.
The movie rental company reported net income of $41 million, or 18 cents a share, compared with $11.2 million, or 4 cents a share, a year earlier. Excluding charges, per-share earnings rose to 26 cents from 11 cents. Revenue grew 3.6% to $1.57 billion.
The mean per-share earnings estimate of analysts polled by Thomson Financial was 18 cents on revenue of $1.44 billion.
Makes sense....People aren't going to stop watching movies....they'll just stay at home and rent...NetFlix beat estimates recently and raised their guidance....looks like a trend to me.
ViewSonic Pulls IPO...
ViewSonic Corp. The Walnut, CA-based provider of visual display technology Wednesday withdrew its $143.75 million worth intial public offering with the U.S. Securities and Exchange Commission, saying the current market terms are not attractive.
Earnings Today....
COMPANIES REPORTING EARNINGS
Blockbuster Inc. (BBI). Expected to report Q4 earnings of $0.18 a share, according to analysts polled by Thomson Financial. This is an increase of 101.11% from the same quarter last year when the company earned $0.09.
Casey's General Stores Inc. (CASY). Expected to post Q3 earnings of $0.28 per share, up 25.45% from the same quarter last year when the company earned $0.22.
Joy Global Inc. (JOYG). Expected to post Q1 earnings of $0.65 per share, up 27.06% from the same quarter last year when the company earned $0.51.
Marvell Technology Group Ltd. (MRVL). Expect to report Q4 earnings of $0.11 per share, an increase of 266.67% from the same quarter last year when the company earned $0.03.
National Semiconductor Corp. (NSM). Expected to report Q3 earnings of $0.24 per share, up 6.82% from the same quarter last year when the company earned $0.22.
The Cooper Cos. Inc. (COO). Expected to post Q1 earnings of $0.45 per share, down 6.04% from the same quarter last year when the company earned $0.48.
Wind River Systems Inc. (WIND). Expected to post Q4 earnings of $0.09 per share, down 15.00% from the
Blockbuster Inc. (BBI). Expected to report Q4 earnings of $0.18 a share, according to analysts polled by Thomson Financial. This is an increase of 101.11% from the same quarter last year when the company earned $0.09.
Casey's General Stores Inc. (CASY). Expected to post Q3 earnings of $0.28 per share, up 25.45% from the same quarter last year when the company earned $0.22.
Joy Global Inc. (JOYG). Expected to post Q1 earnings of $0.65 per share, up 27.06% from the same quarter last year when the company earned $0.51.
Marvell Technology Group Ltd. (MRVL). Expect to report Q4 earnings of $0.11 per share, an increase of 266.67% from the same quarter last year when the company earned $0.03.
National Semiconductor Corp. (NSM). Expected to report Q3 earnings of $0.24 per share, up 6.82% from the same quarter last year when the company earned $0.22.
The Cooper Cos. Inc. (COO). Expected to post Q1 earnings of $0.45 per share, down 6.04% from the same quarter last year when the company earned $0.48.
Wind River Systems Inc. (WIND). Expected to post Q4 earnings of $0.09 per share, down 15.00% from the
Headlines That May Move the Market.....
-Wal-Mart Feb. same-store sales up 2.6%, ahead of Wall St. view
-Oil soars above $105 a barrel as NY blast sparks jitters
-Euro hits new high of $1.5347 against dollar ahead of ECB decision
-Joy Global Q1 net rises to $71 million
-Limited Brands Feb. same-store sales down 9%
-Afren to buy Devon Energy's interest in Cote d'Ivoire for $205 million
-Ingersoll-Rand backs 2008 earnings, revenue forecasts
-McDermott raised to 'buy' at Citi on Qatar project hopes, good results
-Novartis cancer drug Gleevec may harm fetus development - study
-McAfee plans further acquisitions
-Saks cut to 'neutral' at Bank of America; price target slashed to $13
-Oil soars above $105 a barrel as NY blast sparks jitters
-Euro hits new high of $1.5347 against dollar ahead of ECB decision
-Joy Global Q1 net rises to $71 million
-Limited Brands Feb. same-store sales down 9%
-Afren to buy Devon Energy's interest in Cote d'Ivoire for $205 million
-Ingersoll-Rand backs 2008 earnings, revenue forecasts
-McDermott raised to 'buy' at Citi on Qatar project hopes, good results
-Novartis cancer drug Gleevec may harm fetus development - study
-McAfee plans further acquisitions
-Saks cut to 'neutral' at Bank of America; price target slashed to $13
TiVo Pares Losses....
Shares of TiVo Inc. (TIVO) rose 4.8% to $8.53 after the company reported that its fourth-quarter loss narrowed to 6 cents a share from 20 cents a share in the prior year, on better-than-anticipated sales of its standard digital video recorders.
Analysts polled by FactSet Research were expecting a loss of 11 cents a share.
The Alviso, Calif., digital recording technology company's service and technology revenue rose to $58.1 million from $57 million. For the quarter ending in April, TiVo expects to post a net loss of $1 million to $3 million on service and technology revenue of $53 million to $55 million.
Analysts polled by FactSet Research were expecting a loss of 11 cents a share.
The Alviso, Calif., digital recording technology company's service and technology revenue rose to $58.1 million from $57 million. For the quarter ending in April, TiVo expects to post a net loss of $1 million to $3 million on service and technology revenue of $53 million to $55 million.
Coldwater Creek Tumbles....
Shares of Coldwater Creek Inc. (CWTR) dropped to $4.37 after the company released disappointing first-quarter guidance. The company expects to report a first-quarter loss of 14 cents to 17 cents a share, below analysts' average estimate of a per-share loss of 4 cents.
The company also reported a fourth-quarter net loss of 19 cents a share compared with a net income of 17 cents a share a year earlier. Revenue totaled $345.5 million, decreasing from $366.6 million a year ago, the Sandpoint, Idaho apparel retailer said.
Analysts had forecast a net loss of 19 cents a share.
The company also reported a fourth-quarter net loss of 19 cents a share compared with a net income of 17 cents a share a year earlier. Revenue totaled $345.5 million, decreasing from $366.6 million a year ago, the Sandpoint, Idaho apparel retailer said.
Analysts had forecast a net loss of 19 cents a share.
Harris Corp Raises Guidance..
Shares of Harris Corp. (HRS) rose 4.2% to $49.48 after the company said it expects fiscal 2009 earnings of $4 to $4.10 a share on revenue of $5.7 billion to $5.8 billion, driven by growth across all operating segments as a result of demand for its information-technology products and services.
Analysts had expected, according to a poll by Thomson Financial, earnings of $3.95 a share on $5.71 billion in revenue.
The Melbourne, Fla., communications equipment said it expects to finish fiscal 2008 with a substantial backlog, which is expected to drive double-digit revenue growth in RF Communications in fiscal 2009. The company also said it expects top-line growth and improved operating performance in its two commercial businesses in the fiscal year ending June 30, 2009.
Analysts had expected, according to a poll by Thomson Financial, earnings of $3.95 a share on $5.71 billion in revenue.
The Melbourne, Fla., communications equipment said it expects to finish fiscal 2008 with a substantial backlog, which is expected to drive double-digit revenue growth in RF Communications in fiscal 2009. The company also said it expects top-line growth and improved operating performance in its two commercial businesses in the fiscal year ending June 30, 2009.
Thornburg Crushed After Hours....
Shares of Thornburg Mortgage Inc. (TMA) plunged 44% to $1.92 in after-hours trading after the home-mortgage lender late Wednesday disclosed that its failure to meet a $28 million margin call caused a series of cross-defaults. Thornburg also said JPMorgan Chase Bank N.A., which made the original margin call, will "exercise its rights."
In Wednesday's disclosure, Thornburg didn't specify those rights, but in a previous filing with the Securities and Exchange Commission the company said that the lender has the "right to liquidate pledged collateral." Thornburg said it was loaned $320 million under reverse repurchase agreements made with JPMorgan.
The notice of default from JPMorgan triggered cross-defaults "under all of the Company's other reverse repurchase agreements and its secured loan agreements," the company said in Wednesday's filing. Thornburg offered no description of the amounts involved in the cross-defaults, but said its "obligations under those agreements are material."
In Wednesday's disclosure, Thornburg didn't specify those rights, but in a previous filing with the Securities and Exchange Commission the company said that the lender has the "right to liquidate pledged collateral." Thornburg said it was loaned $320 million under reverse repurchase agreements made with JPMorgan.
The notice of default from JPMorgan triggered cross-defaults "under all of the Company's other reverse repurchase agreements and its secured loan agreements," the company said in Wednesday's filing. Thornburg offered no description of the amounts involved in the cross-defaults, but said its "obligations under those agreements are material."
PetsMart Profit Margin Falls...
PetSmart Inc. (PETM), which is hurting from soft consumer spending, posted a 2% drop in fiscal fourth-quarter net income as its profit margin fell and said it would slow capital spending as it tries to improve performance at its stores.
The nation's largest pet-food and supplies chain said Wednesday that net income for the quarter ended Feb. 3 fell to $75.4 million from $77 million. Earnings per share rose to 59 cents a share from 56 cents a share.
In January, PetSmart slashed its earnings forecast by 13 cents a share to a range of 57 cents to 61 cents a share, blaming weak sales and a challenging retail climate.
The latest results included costs to exit the State Line Tack business. Excluding those costs and an extra week of sales, earnings came to 52 cents a share. Net sales in the latest quarter rose 14% to $1.33 billion, with a $90 million benefit from an extra week of sales.
The latest forecast from analysts polled by Thomson Financial was for earnings, excluding items, of 59 cents a share on revenue of $1.33 billion.
The nation's largest pet-food and supplies chain said Wednesday that net income for the quarter ended Feb. 3 fell to $75.4 million from $77 million. Earnings per share rose to 59 cents a share from 56 cents a share.
In January, PetSmart slashed its earnings forecast by 13 cents a share to a range of 57 cents to 61 cents a share, blaming weak sales and a challenging retail climate.
The latest results included costs to exit the State Line Tack business. Excluding those costs and an extra week of sales, earnings came to 52 cents a share. Net sales in the latest quarter rose 14% to $1.33 billion, with a $90 million benefit from an extra week of sales.
The latest forecast from analysts polled by Thomson Financial was for earnings, excluding items, of 59 cents a share on revenue of $1.33 billion.
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