The dollar fell to 12-year lows against the yen, dropping to less than 100 yen, and hit record lows against the euro, as Asian/European markets and U.S. equity futures dived in overnight trading [see below], raising concerns of more turmoil in the financial markets. "Investors are getting out of dollar assets and this is going to lead to a dollar crash," a Tokyo currency manager said.
On four previous occasions since 1995, Japanese authorities have sold the yen when it approached the 100 mark to support its country's exports.
Thursday, March 13, 2008
Earnings Due Today....
COMPANIES REPORTING EARNINGS
• Aeropostale Inc. (ARO). Expected to report Q4 earnings of $0.88 a share, according to analysts polled by Thomson Financial.
• Flanders Corp. (FLDR). Expected to post Q4 profit of $0.15 per share.
• TICC Capital Corp. (TICC). Expected to report Q4 profit of $0.34 per share, which is a decrease of 12.82% from the same quarter last year when the company earned $0.39 a share.
• Aeropostale Inc. (ARO). Expected to report Q4 earnings of $0.88 a share, according to analysts polled by Thomson Financial.
• Flanders Corp. (FLDR). Expected to post Q4 profit of $0.15 per share.
• TICC Capital Corp. (TICC). Expected to report Q4 profit of $0.34 per share, which is a decrease of 12.82% from the same quarter last year when the company earned $0.39 a share.
Today's Top Stories....
• Dollar tumbles below 100 yen for first time in 12 years
• Treasury secretary Henry Paulson to propose revamp of credit rules - report
• Treasury deputy secretary Robert Kimmitt says U.S. economy should pick up in Q2
• Home foreclosure filings rise 60% in Feb.
• Abbott's diabetes treatment gets FDA nod
• Electronic Arts makes $26-a-share hostile bid for Take-Two Interactive
• Monsanto upgraded to 'buy' at Banc of America
• AIG cut to equal-weight from overweight at Morgan Stanley; target cut to $50
• Tyco Electronics to buy back additional $500 million of stock
• Treasury secretary Henry Paulson to propose revamp of credit rules - report
• Treasury deputy secretary Robert Kimmitt says U.S. economy should pick up in Q2
• Home foreclosure filings rise 60% in Feb.
• Abbott's diabetes treatment gets FDA nod
• Electronic Arts makes $26-a-share hostile bid for Take-Two Interactive
• Monsanto upgraded to 'buy' at Banc of America
• AIG cut to equal-weight from overweight at Morgan Stanley; target cut to $50
• Tyco Electronics to buy back additional $500 million of stock
Wednesday, March 12, 2008
Wednesday's Summary....
U.S. Markets
Dow -46.57 (-0.38%)
Nasdaq -11.89 (-0.53%)
S&P 500 -11.88 (-0.90%)
News That Moved the Market
Stocks Fizzle Out. A late sell-off ensured the market would finish lower; one day after the Dow was up more than 4%. Stocks did trade higher for a large part of the session, but could not gain any momentum and looked overextended after huge gains yesterday. Oil topped $110/barrel for the first time, despite a greater than expected build in inventories. Instead of trading lower, investors seemed to have a "buy on the dip" mentality, pushing oil up another $1.17 to finish at $109.92. Government data showed speculators and fund managers are making bets for higher oil, with net long positions tripling in the last month. The rally should end when hedge funds and speculators decide to start taking profits, and will depend less on economic data, as exhibited today.
Target In Talks To Sell Half of Credit Card Division. Mega-retailer Target (TGT, -0.95% day; +1.45% A.H.) announced after the close it is in negotiations to sell about half of its credit-card loans for $4 billion. The potential acquirer was not named. The money could be used for stock buybacks, increasing shareholder value, and would create more stability on Target's balance sheet.
Quick Tics:
Caterpillar (CAT, +3.6%) and G.E. (GE, +1.7%) were both up after each company released positive outlooks…
Eliot Spitzer resigned as New York Governor after news surfaced yesterday of his connection to a prostitution ring…
Humana (HUM, -13.7%) dropped after cutting its earnings outlook.
Tomorrow Notable Earnings
Aeropostale, Inc. (ARO) Time Not Supplied
Economic Events:
8:30 AM: Retail Sales
8:30 AM: Jobless Claims
8:30 AM: Import and Export Prices
10:00 AM: Business Inventories
Dow -46.57 (-0.38%)
Nasdaq -11.89 (-0.53%)
S&P 500 -11.88 (-0.90%)
News That Moved the Market
Stocks Fizzle Out. A late sell-off ensured the market would finish lower; one day after the Dow was up more than 4%. Stocks did trade higher for a large part of the session, but could not gain any momentum and looked overextended after huge gains yesterday. Oil topped $110/barrel for the first time, despite a greater than expected build in inventories. Instead of trading lower, investors seemed to have a "buy on the dip" mentality, pushing oil up another $1.17 to finish at $109.92. Government data showed speculators and fund managers are making bets for higher oil, with net long positions tripling in the last month. The rally should end when hedge funds and speculators decide to start taking profits, and will depend less on economic data, as exhibited today.
Target In Talks To Sell Half of Credit Card Division. Mega-retailer Target (TGT, -0.95% day; +1.45% A.H.) announced after the close it is in negotiations to sell about half of its credit-card loans for $4 billion. The potential acquirer was not named. The money could be used for stock buybacks, increasing shareholder value, and would create more stability on Target's balance sheet.
Quick Tics:
Caterpillar (CAT, +3.6%) and G.E. (GE, +1.7%) were both up after each company released positive outlooks…
Eliot Spitzer resigned as New York Governor after news surfaced yesterday of his connection to a prostitution ring…
Humana (HUM, -13.7%) dropped after cutting its earnings outlook.
Tomorrow Notable Earnings
Aeropostale, Inc. (ARO) Time Not Supplied
Economic Events:
8:30 AM: Retail Sales
8:30 AM: Jobless Claims
8:30 AM: Import and Export Prices
10:00 AM: Business Inventories
Finally the Fed Gets it Right...
The Fed said it will inject another $200B into the economy, lending money against mortgage-backed debt for 28 days, vs. the current overnight. The move sparked a 3.6% gain in the Dow, its biggest rally in five years. The Fed hopes the additional liquidity will help Wall Street bankers cushion their books against loan defaults and depressed debt securities.
The odds of a 75 BP cut to the Fed's current 3% target on March 18 fell to 64%; it had previously been fully priced-in.
Most importantly, the Market is actually showing respect for this latest move by the Fed. A huge rally yesterday and what is shaping up to be a follow-up rally today...
The odds of a 75 BP cut to the Fed's current 3% target on March 18 fell to 64%; it had previously been fully priced-in.
Most importantly, the Market is actually showing respect for this latest move by the Fed. A huge rally yesterday and what is shaping up to be a follow-up rally today...
Technical Watch: Zimmer Holdings...
Check out the Daily chart on Zimmer Holdings (ZMH). The stock has formed a near perfect "cup and handle" formation.
The point to BUY would be if the stock breaks clearly above the $79-80 area.
The stock is up 1.05 to $76.15 this morning....and ticking higher.
The point to BUY would be if the stock breaks clearly above the $79-80 area.
The stock is up 1.05 to $76.15 this morning....and ticking higher.
Steel Dynamics Raises Guidance...
Steel Dynamics Inc. (STLD). the Fort Wayne, Ind.-based steel company late Tuesday said it now expects first-quarter earnings of $1.25 to $1.30 a share, up from its previous outlook of $1.10 to $1.20 a share, based on higher-than-anticipated flat-rolled steel pricing and improved scrap-processing results.
The current mean estimate of analysts polled by Thomson Financial is for a per-share profit of $1.18 for the quarter. Additionally, the company said it now expects full-year 2008 earnings of $5.25 to $5.75 a share, up from its prior forecast of $5 to $5.50 a share. Analysts are looking for earnings of $5.40 a share for the year.
The current mean estimate of analysts polled by Thomson Financial is for a per-share profit of $1.18 for the quarter. Additionally, the company said it now expects full-year 2008 earnings of $5.25 to $5.75 a share, up from its prior forecast of $5 to $5.50 a share. Analysts are looking for earnings of $5.40 a share for the year.
JA Solar Earnings In-Line, Raises Guidance...
JA Solar Holdings Co.'s (JASO) fourth-quarter net income rose 34% on a boon in shipments and despite losses from currency fluctuations, which the company said it is addressing going forward.
The company also projected 2008 revenue well above analysts' expectations and boosted its production target for the year. Shares rose to $15.90 during recent premarket trading after closing at $14.58 on Tuesday.
JA Solar's stock had been down more than 40% the past two months. JA Solar, a Chinese manufacturer of high-performance solar cells, posted net income of $13.5 million, or 9 cents a share, compared with $10.1 million, or 11 cents a share, a year earlier. Shares outstanding were 36% higher in the recently ended quarter. Revenue more than tripled to $144.2 million.
The mean estimates of analysts surveyed by Thomson Financial were for earnings of 9 cents a share on revenue of $118 million.
The company also projected 2008 revenue well above analysts' expectations and boosted its production target for the year. Shares rose to $15.90 during recent premarket trading after closing at $14.58 on Tuesday.
JA Solar's stock had been down more than 40% the past two months. JA Solar, a Chinese manufacturer of high-performance solar cells, posted net income of $13.5 million, or 9 cents a share, compared with $10.1 million, or 11 cents a share, a year earlier. Shares outstanding were 36% higher in the recently ended quarter. Revenue more than tripled to $144.2 million.
The mean estimates of analysts surveyed by Thomson Financial were for earnings of 9 cents a share on revenue of $118 million.
Take Two Raises Guidance...
By raising its annual guidance Tue, video game maker Take-Two Software (TTWO) could force Electronic Arts (ERTS) to hike its $2B bid for the company, argues research firm Wall Street Strategies. Citing a better than expected 1Q and surprisingly strong preorders for a game to be released in a few weeks, Take-Two said it now expects fiscal 2008 earnings of $1.35 to $1.55 a share on revenue of $1.25B to $1.4B.
The company had expected per-share earnings of $1.30 to $1.50. Analysts expected per-share earnings of $1.35 on revenue of $1.36 billion. "Without a doubt the saga surrounding ERTS' bid is about to get a bit more complex," wrote the Wall Street Strategies research firm.
The company had expected per-share earnings of $1.30 to $1.50. Analysts expected per-share earnings of $1.35 on revenue of $1.36 billion. "Without a doubt the saga surrounding ERTS' bid is about to get a bit more complex," wrote the Wall Street Strategies research firm.
Humana Warns...
Humana (HUM) stock gets crushed again in premarket trading Wed, dragging down the entire managed care sector, after the company cuts its 1Q and 2008 earnings guidance. HUM recently down 26% at $35. The stock fell 24% Tue, after peer WellPoint's (WLP) earnings warning raised fears that unexpectedly high medical costs could mean weakening profits across the health insurance sector.
Aetna falls 6.2% to $40, WellPoint edges down an additional 1.6% to $46.49, UnitedHealth Group (UNH) loses another 10% to $34.51.
Also in premarket, Cigna (CI) falls 12%, Coventry Health Care (CVH) down 7.4%. (MRL).
Aetna falls 6.2% to $40, WellPoint edges down an additional 1.6% to $46.49, UnitedHealth Group (UNH) loses another 10% to $34.51.
Also in premarket, Cigna (CI) falls 12%, Coventry Health Care (CVH) down 7.4%. (MRL).
Caterpillar Reaffirms Forecast...
Caterpillar Sees $60B In Revenue In 2010
Heavy-equipment maker reaffirms its 2008 per-share earnings and revenue forecast, and says it also expects revenues approaching $60 billion by 2010 and per-share earnings growth of 15% to 20% from 2005 through 2012. Shares rise 2% pre-market.
Heavy-equipment maker reaffirms its 2008 per-share earnings and revenue forecast, and says it also expects revenues approaching $60 billion by 2010 and per-share earnings growth of 15% to 20% from 2005 through 2012. Shares rise 2% pre-market.
Cleveland Cliffs to Split Stock....
Cleveland-Cliffs Inc. (CLF). The Cleveland, OH-based mining company late Tuesday declared a two-for-one stock split, payable May 15 to shareholders of record as of May 1.
Earnings Due Today....
COMPANIES REPORTING EARNINGS
• American Eagle Outfitters Inc. (AEO). Expected to report Q4 earnings of $0.66 a share, according to analysts polled by Thomson Financial.
• Gymboree Corp. (GYMB). Expected to post Q4 profit of $0.95 a share, up 13.10% from the same quarter last year when the company earned $0.84.
• Men's Wearhouse Inc. (MW). Expected to report Q4 earnings of $0.17 a share.
• American Eagle Outfitters Inc. (AEO). Expected to report Q4 earnings of $0.66 a share, according to analysts polled by Thomson Financial.
• Gymboree Corp. (GYMB). Expected to post Q4 profit of $0.95 a share, up 13.10% from the same quarter last year when the company earned $0.84.
• Men's Wearhouse Inc. (MW). Expected to report Q4 earnings of $0.17 a share.
Today's Top Stories....
• Mortgage applications for week to March 7 fall 1.9% on lower refinancing
• Boeing reiterates 787 schedule after Goldman Sachs warns of further delays - report
• Wyeth withdraws application for EU approval of hot flashes treatment
• Coach names ex-COO of Limited Brands its executive officer, effective March 17
• Kroger cut to 'underweight' by JP Morgan on likely underperformance
• Ruddick upped to 'overweight' at JP Morgan on growth prospects
• Toyota to raise monthly salaries by average 7,900 yen
• AstraZeneca's Seroquel patent infringement trial to start Aug. 11
• Boeing reiterates 787 schedule after Goldman Sachs warns of further delays - report
• Wyeth withdraws application for EU approval of hot flashes treatment
• Coach names ex-COO of Limited Brands its executive officer, effective March 17
• Kroger cut to 'underweight' by JP Morgan on likely underperformance
• Ruddick upped to 'overweight' at JP Morgan on growth prospects
• Toyota to raise monthly salaries by average 7,900 yen
• AstraZeneca's Seroquel patent infringement trial to start Aug. 11
Tuesday's Summary....
U.S. Markets
Dow +416.7 (+3.55%)
Nasdaq +86.4 (+3.98%)
S&P 500 +47.4 (+3.71%)
News That Moved the Market
Markets Surge. Tuesday's gains were the most since 2003. The market was propelled higher after the Fed announced a new Term Security Lending Facility, allowing borrowers to pledge a large assortment of debt securities as collateral including privately rated AAA mortgage backed securities. The plan will increase liquidity and generate more value for mortgage backed securities, which have become a thinly traded asset. The plan includes also raising the swap lines with the ECB and Swiss National Bank, putting an extra $12 billion into the U.S. markets. The markets opened sharply higher, and finished strong, with financials (+7.4%) leading the charge. Volume was high and for any technical analysis followers, Tuesday's jumps may have also created a double bottom, a very bullish signal.
Wellpoint Causes Health Insurer Sell-Off. Wellpoint (WLP, -28.31%) slashed its full-year guidance to $5.76 - $6.01/share from $6.41/share. The new forecast was well below analysts' estimates and caused a massive sell-off of all the large health insurers; UnitedHealth Group (UNH, -15.2%) and Humana (HUM, -24.7%) finished with massive losses as well.
Quick Tics:
Google's (GOOG, +6.3%) acquisition of DoubleClick was approved by European regulators…
Crude-oil futures ended the session at a new record closing high of $108.75/barrel..
Texas Instruments (TXN, -3.0%) lowered its first-quarter earnings forecast, the company's shares hit a 52-week low.
Wednesday's Notable Earnings
Hot Topic (HOTT) After Close
American Eagle Outfitters Inc (AEO) Before Open
Economic Events:
10:30 AM: Crude Inventories
Dow +416.7 (+3.55%)
Nasdaq +86.4 (+3.98%)
S&P 500 +47.4 (+3.71%)
News That Moved the Market
Markets Surge. Tuesday's gains were the most since 2003. The market was propelled higher after the Fed announced a new Term Security Lending Facility, allowing borrowers to pledge a large assortment of debt securities as collateral including privately rated AAA mortgage backed securities. The plan will increase liquidity and generate more value for mortgage backed securities, which have become a thinly traded asset. The plan includes also raising the swap lines with the ECB and Swiss National Bank, putting an extra $12 billion into the U.S. markets. The markets opened sharply higher, and finished strong, with financials (+7.4%) leading the charge. Volume was high and for any technical analysis followers, Tuesday's jumps may have also created a double bottom, a very bullish signal.
Wellpoint Causes Health Insurer Sell-Off. Wellpoint (WLP, -28.31%) slashed its full-year guidance to $5.76 - $6.01/share from $6.41/share. The new forecast was well below analysts' estimates and caused a massive sell-off of all the large health insurers; UnitedHealth Group (UNH, -15.2%) and Humana (HUM, -24.7%) finished with massive losses as well.
Quick Tics:
Google's (GOOG, +6.3%) acquisition of DoubleClick was approved by European regulators…
Crude-oil futures ended the session at a new record closing high of $108.75/barrel..
Texas Instruments (TXN, -3.0%) lowered its first-quarter earnings forecast, the company's shares hit a 52-week low.
Wednesday's Notable Earnings
Hot Topic (HOTT) After Close
American Eagle Outfitters Inc (AEO) Before Open
Economic Events:
10:30 AM: Crude Inventories
Tuesday, March 11, 2008
Monday, March 10, 2008
Monday's Trading Summary...
U.S. Markets
Dow -153.54 (-1.29%)
Nasdaq -43.15 (-1.95%)
S&P 500 -20.00 (-1.55%)
News That Moved the Market
Financials Push Markets Down Further. Stocks finished sharply lower Monday, with more bad news coming out of the financial sector. Bear Stearns (BSC, -11.1%) fell the most in 10 years after rumors spread that the company has liquidity issues. "There's an insolvency rumor and concerns on liquidity, that they just have no cash," said Michael Mainwald, head of equity trading at Lek Securities Corp. A spokesman for Bear said that there is "no truth" to the rumors, but the trust in the banks has disappeared in the last couple months and investors were noticeably rattled. Citigroup (C, -5.8%) fell under $20, to its lowest levels since 1998.
Lehman Brothers (LEH, -7.3%) announced plans to cut another 5% of its work force, citing weak credit markets and a slowing economy. Markets finished near their lows, with the financial sector ending down 2.0%.
Blackstone's Profits Plunge. Blackstone (BX, +2.9%) reported an 89% decrease in profits this morning. The company was hurt by its holdings in FGIC, the troubled bond insurer. The company's stock hit an all-time low, before finding bidders late in the session, and said it sees difficult market conditions continuing in 2008.
FBI Targets Countrywide, Subprime Lenders. Countrywide (CFC, -14.0%) lost more ground after The Wall Street Journal reported the company, along with 15 other subprime lenders, is under an FBI investigation. The FBI is taking a broad look at the subprime industry as a whole for fraud and other unlawful practices. The investigation is still in its early stages.
Goldman Sees FOMC Cutting Rates By 1.0% In Two Meetings. Goldman Sachs (GS, -2.8%) sees the FOMC dropping interest rates a full point by late April. There were talks of an intermeeting cut before next week's official FOMC meeting, but few really believe the Fed would think the situation is so dire, that it could not wait one week.
Quick Tics:
McDonalds (MCD, +2.9%) reported strong same store sales growth
NY Governor Eliot Spitzer has been linked to a prostitution ring
Oil closed up nearly 3% to $107.90/barrel.
TomorrowNotable Earnings
Boston Beer Company (SAM) Time Not Supplied
J. Crew Group, Inc. (JCG) After Close
Take-Two Interactive Software (TTWO) After Close
The Kroger Co. (KR) Before Open
Economic Events:
8:30 AM: Trade Balance
Dow -153.54 (-1.29%)
Nasdaq -43.15 (-1.95%)
S&P 500 -20.00 (-1.55%)
News That Moved the Market
Financials Push Markets Down Further. Stocks finished sharply lower Monday, with more bad news coming out of the financial sector. Bear Stearns (BSC, -11.1%) fell the most in 10 years after rumors spread that the company has liquidity issues. "There's an insolvency rumor and concerns on liquidity, that they just have no cash," said Michael Mainwald, head of equity trading at Lek Securities Corp. A spokesman for Bear said that there is "no truth" to the rumors, but the trust in the banks has disappeared in the last couple months and investors were noticeably rattled. Citigroup (C, -5.8%) fell under $20, to its lowest levels since 1998.
Lehman Brothers (LEH, -7.3%) announced plans to cut another 5% of its work force, citing weak credit markets and a slowing economy. Markets finished near their lows, with the financial sector ending down 2.0%.
Blackstone's Profits Plunge. Blackstone (BX, +2.9%) reported an 89% decrease in profits this morning. The company was hurt by its holdings in FGIC, the troubled bond insurer. The company's stock hit an all-time low, before finding bidders late in the session, and said it sees difficult market conditions continuing in 2008.
FBI Targets Countrywide, Subprime Lenders. Countrywide (CFC, -14.0%) lost more ground after The Wall Street Journal reported the company, along with 15 other subprime lenders, is under an FBI investigation. The FBI is taking a broad look at the subprime industry as a whole for fraud and other unlawful practices. The investigation is still in its early stages.
Goldman Sees FOMC Cutting Rates By 1.0% In Two Meetings. Goldman Sachs (GS, -2.8%) sees the FOMC dropping interest rates a full point by late April. There were talks of an intermeeting cut before next week's official FOMC meeting, but few really believe the Fed would think the situation is so dire, that it could not wait one week.
Quick Tics:
McDonalds (MCD, +2.9%) reported strong same store sales growth
NY Governor Eliot Spitzer has been linked to a prostitution ring
Oil closed up nearly 3% to $107.90/barrel.
TomorrowNotable Earnings
Boston Beer Company (SAM) Time Not Supplied
J. Crew Group, Inc. (JCG) After Close
Take-Two Interactive Software (TTWO) After Close
The Kroger Co. (KR) Before Open
Economic Events:
8:30 AM: Trade Balance
FBI Probes Countrywide...
The FBI has opened a criminal inquiry to probe whether Countrywide Financial (CFC) intentionally misrepresented its financial condition in SEC filings. The FBI is investigating more than a dozen subprime lenders' origination and securitization processes, and probing possible conflicts of interest between lenders and investors.
If Countrywide is found guilty of fraud, it could scuttle a planned $4B acquisition of the company by Bank of America (BAC).
If Countrywide is found guilty of fraud, it could scuttle a planned $4B acquisition of the company by Bank of America (BAC).
Earnings Due Today....
COMPANIES REPORTING EARNINGS
• Foot Locker Inc. (FL). Expected to report Q4 earnings of $0.44 a share, according to analysts polled by Thomson Financial. This is a decrease of 36.71% from the same quarter last year when the company earned $0.70.
• Inter Parfums Inc. (IPAR). Expected to post Q4 earnings of $0.34 a share, up 25.93% from the same quarter last year when the company earned $0.27.
• The Blackstone Group (BX). Expected to post Q4 earnings of $0.29 a share.
• Vail Resorts (MTN). Expected to report Q2 earnings of $1.35 a share.
• Foot Locker Inc. (FL). Expected to report Q4 earnings of $0.44 a share, according to analysts polled by Thomson Financial. This is a decrease of 36.71% from the same quarter last year when the company earned $0.70.
• Inter Parfums Inc. (IPAR). Expected to post Q4 earnings of $0.34 a share, up 25.93% from the same quarter last year when the company earned $0.27.
• The Blackstone Group (BX). Expected to post Q4 earnings of $0.29 a share.
• Vail Resorts (MTN). Expected to report Q2 earnings of $1.35 a share.
This Morning's Top Stories...
• Morgan Stanley cuts 2008 earnings estimates on raft of large-cap banks
• Chevron to develop LNG facility in Australia
• Siemens eager to settle with SEC before presidential election - report
• Nationwide Financial Services gets buyout offer from parent
• Wyeth to invest $280 million in Chinese nutritional manufacturing plant
• Chevron to develop LNG facility in Australia
• Siemens eager to settle with SEC before presidential election - report
• Nationwide Financial Services gets buyout offer from parent
• Wyeth to invest $280 million in Chinese nutritional manufacturing plant
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