Market News

[weatherweenie]

08:35 am : S&P futures vs fair value: -15.00. Nasdaq futures vs fair value: -19.30. According to the latest economic data, personal income slipped 0.2% during December. Economists expected a 0.4% decrease. Meanwhile, the prior month reading was revised lower to reflect a 0.4% decrease. Personal spending was down 1.0% in December, reflecting consumers' reluctance to spend amid mounting unemployment and other thorny economic conditions. Personal spending was down slightly more than expected; the consensus called for a 0.9% drop. Personal spending was down 0.8% in the prior month. December core personal consumption expenditures (PCE) were flat month-over-month, as expected. November core PCE was also unchanged month-over-month. Year-over-year, December core PCE increased 1.7%, which is in-line with economists' consensus forecast. The prior reading showed a 1.9% year-over-year increase. The December PCE deflator was up 0.6% year-over-year. That came after the prior reading showed a 1.4% year-over-year increase. The consensus called for a 1.0% increase. Stock futures have retreated in the wake of the data.

 

[weatherweenie]

09:02 am : S&P futures vs fair value: -14.30. Nasdaq futures vs fair value: -18.80. Stock futures continue pointing toward a lower start for the U.S. indices. The major European indices are facing a concerted selling effort. France's CAC is down 3.2% with particular weakness in financial companies. Societe Generale and BNP Paribas are leading losses this session. BNP Paribas has come under pressure after it indicated it expected a revised deal to buy assets from Fortis to have a neutral impact on its Tier 1 ratio, though many investors hoped the deal would boost the ratio. Britain's FTSE is down 2.6% amid weakness in HSBC (HSB) and Standard Chartered. Integrated oil and gas outfit BP PLC (BP) is also trading lower as Financial Times reports investors are growing concerned for BP's succession plan. Germany's DAX is off by 2.4% this session. In economic news, Reuters reported manufacturing in the euro zone shrank at a slightly slower pace in January while factory prices tumbled at their fastest rate in years, according to a survey. Weakness also permeated in Asian markets Monday. The MSCI Asia-Pacific Index closed 1.9%. Japan's Nikkei closed 1.5% lower. Mizuho Financial (MFG) slid after posting its second quarterly loss in a row. Shares of Hitachi (HIT) tumbled 17% after the company reversed its profit forecast to an unprecedented loss. Shares of Panasonic (PC) fell 3.6% after Nikkei reported the company may report a net loss for its current fiscal year. Hong Kong's Hang Seng closed 3.1% lower as more grim news on the global economy weighed on sentiment.

 

[budnipper1]

Asia stocks rise amid signs downturn is bottoming

HONG KONG – Asian stocks advanced Wednesday, with Tokyo's index up nearly 3 percent,
as better-than-expected news about the U.S. and Chinese economies raised hopes the global downturn was nearing a bottom.

The region's upward swing followed Wall Street, where investors breathed a little easier after a surprise
jump in home sales in December suggested the battered housing market might soon stabilize.

Japan's Nikkei 225 stock average rose 213.43 points, or 2.7 percent, to 8,038.94, while Hong Kong's Hang Seng Index
added 322.71, or 2.5 percent, to 13,099.60. South Korea's Kospi was up 2.8 percent at 1,195.37.

Overnight in New York, the Dow Jones industrial average rose 141.53, or 1.8 percent, to 8,078.36.

Broader stock indicators also rose. The Standard & Poor's 500 index rose 13.07, or 1.6 percent, to 838.51,
and the Nasdaq composite index rose 21.87, or 1.5 percent, to 1,516.30.

U.S. futures rose modestly Wednesday. Dow futures were up 14, or 0.2 percent, at 8,000
and S&P500 futures rose 3.5, or 0.4 percent, to 835.

In oil, crude prices were steady in Asia trade, with light, sweet crude for March delivery up 16 cents to
$40.94 a barrel by midday in Singapore in electronic trading on the New York Mercantile Exchange.
The contract overnight rose 70 cents to settle at $40.78.

The dollar strengthened to 89.52 yen, up from 89.39. The euro traded at $1.3065 compared to $1.3014.

http://news.yahoo.com/s/ap/20090204/ap_on_bi_ge/world_markets;_ylt=At2kQY577pRUsFQmKVvFCocT5LIF


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[weatherweenie]

08:01 am : S&P futures vs fair value: -1.80. Nasdaq futures vs fair value: -6.80. A rather neutral tone is indicated during premarket trading as participants continue sifting through earnings announcements and prepare for the latest batch of economic data. Disney (DIS) reported adjusted earnings of $0.41 per share for its first fiscal quarter. The consensus called for $0.51 per share. Shares of DIS are down almost 8% to $19.00 per share in premarket trading. Kraft (KFT) also fell short of the consensus estimate; the company brought in adjusted earnings of $0.43 per share, but analysts were expecting $0.44 per share. Traders have responded by pushing KFT down more than 8% to $26.25 per share in premarket action. Time Warner (TWX) earned $0.23 per share during its latest quarter, excluding certain nonrecurring items. Analysts, on average, were looking for $0.26 per share. Meanwhile, Time Warner Cable (TWC) topped the consensus earnings estimate of $0.32 per share when it announced fourth quarter earnings of $0.35 per share. Shares of TWX and TWC are trading lower in the premarket, down 2.9% and 0.7%, respectively. Insurance outfit MetLife (MET) announced quarterly earnings of $0.19 per share, which is more than the $0.14 per share that was widely expected. MET was recently quoted in premarket trading at $19.10 per share, up 2%. According to the Challenger Jobs Report, job cuts in January were up 222% year-over-year. The January ADP Employment report is due shortly (8:15 AM ET). The January ISM Service Index is due later this morning (10:00 AM ET).

 

[weatherweenie]

08:32 am : S&P futures vs fair value: -0.40. Nasdaq futures vs fair value: -5.30. Stock futures have improved a bit from earlier levels, but continue to suggest a relatively flat start to the session. The latest ADP Employment Report showed that 522,000 jobs were lost in January. The consensus called for 535,000 lost jobs. The report comes as a precursor to the government's official January tally, which is due Friday.

 

[weatherweenie]

10:00 am : The January ISM Service Index came in at 42.9, which is better than the 39.0 reading that was expected. It also exceeds the 40.1 revised reading from December. Though the January reading reflects continued contraction, it up for the second straight month.

 

[weatherweenie]

08:05 am : S&P futures vs fair value: -18.90. Nasdaq futures vs fair value: -32.30. Stocks are on track for a markedly lower start after the $787 billion economic stimulus bill has passed both chambers of congress. President Obama is expected to sign the bill into law. Wal-Mart (WMT) posted fourth quarter adjusted earnings of $1.03 per share which is better than the consensus forecast, which called for $0.99 per share. the company issued in-line guidance for the first quarter, during which it expects to earn $0.72 to $0.77 per share. For fiscal 2010, the company expects to earn $3.45 to $3.60 per share, which brackets the consensus estimate of $3.59 per share. Teva Pharmaceuticals (TEVA) posted fourth quarter adjusted earnings of $0.76 per share, which is $0.03 more than the consensus estimate of $0.73 per share. The company further distinguished itself by increasing its quarterly dividend some 33% to roughly $0.15 per share, based on recent exchange rates. Illinois Tool Works (ITW) issued in-line earnings guidance of $0.26 to $0.42 per share for the first quarter and $1.84 to $2.48 per share for the full fiscal year. Reuters reports that General Motors (GM) will receive $4 billion in additional governmental financial aid ahead of the company's deadline to submit its survival plan. Meanwhile, GM bondholders are looking to swap their claims for equity stakes, Reuters reports.

 

[weatherweenie]

NEW YORK (Reuters) - Wal-Mart Stores Inc posted a quarterly profit that beat Wall Street forecasts, helped by higher U.S. sales at its namesake discount stores, and said it expected to continue to perform better than its competitors.

 

[weatherweenie]

08:37 am : S&P futures vs fair value: -23.80. Nasdaq futures vs fair value: -37.30. Europe's major indices are trading lower as London's FTSE drops 1.7%, France's CAC falls 1.8%, and Germany's DAX drops 2.1%. Bank shares continue to come under pressure amid concerns regarding their health and that governments may need to provide additional support, which would likely mean an increased government stake. On the FTSE, Lloyds (LYG) is trading with losses a meaningful loss. The company had its credit rating downgraded by Moody's. However, HSBC (HSB) is a primary laggard in the space. Government officials continue their efforts to calm investor fears; a Dow Jones report quoted a United Kingdom official stating the government does not want to nationalize banks. The CAC is being weighed down by Societe Generale and BNP Paribas. Total (TOT) is also trading as a laggard as crude oil futures prices succumb to renewed selling pressure. Crude is currently down 4.0% to roughly $36.00 per barrel. Meanwhile, losses in the DAX are being led by Allianz (AZ). In Asia, Japan's Nikkei ended 1.4% lower Tuesday. It continues to trade near multimonth lows as financial stocks remain hampered. Mitsubishi UFJ Financial (MTU) traded with weakness after its main banking subsidiary, Bank of Tokyo-Mitsubishi UFJ, said it would sell more subordinated bonds than originally planned. Mizuho Financial (MFG) was also under pressure. Hong Kong's Hang Seng closed 3.8% lower. Losing issues outnumbered advancers by four-to-one. PetroChina (PTR) fell amid weak crude prices, as did offshore oil specialist CNOOC (CEO).

 

[weatherweenie]

Feb 17 (Reuters) - Greek dry bulk carrier Excel Maritime Carriers Ltd (EXM.N) said it would suspend its dividend due to challenging conditions in the freight market, sending its shares down as much as 14 percent.

 

[weatherweenie]

08:02 am : S&P futures vs fair value: +7.50. Nasdaq futures vs fair value: +3.00. Stock futures are showing a positive bias as the prior session's strong finish extends into premarket trading. Should the upbeat tone persist and stocks manage to close higher, it would mark the first time in more than one month that the stock market registered gains in four straight sessions. Citigroup (C) indicated it does not need any additional goverment capital, pushing its shares nearly 9% higher to $1.82 per share in premarket trading. Other diversified banks and financial services companies are trading higher in sympathy. Strong gains in foreign markets are also helping feed an early, positive bias. Gains were especially strong in Asia, where Japan's officials expressed desire and willingness to create a fresh stimulus package. There are a few economic reports due out today. The January trade balance and February Import Price Index are both due at the bottom of the hour. The Preliminary March reading for consumer confidence from University of Michigan is due later this morning (10:00 AM ET).

 

[weatherweenie]

08:35 am : S&P futures vs fair value: +7.90. Nasdaq futures vs fair value: +1.30. Stock futures continue pointing toward an upward start. The positive bias has been undeterred by the latest batch of economic data. The January Trade Balance showed a $36.0 billion deficit, which is less steep than the $38.0 billion deficit that was expected. The prior reading showed a $39.9 billion deficit. February import prices were down 0.2% month-over-month, which is a softer downturn than the 0.7% decline that was widely expected. The prior reading was revised modesly lower to reflect a month-over-month decline of 1.2%. Year-over-year, the February Import Price Index fell 12.8%. It was expected to decline 13.5% year-over-year after a 12.5% year-over-year drop in the prior month.

 

[weatherweenie]

08:36 am : S&P futures vs fair value: -5.10. Nasdaq futures vs fair value: -7.00. Stock futures have shown little reaction to the latest economic data. The Consumer Price Index for February showed a 0.4% month-over-month increase. A 0.3% increase was expected. January's CPI showed a 0.3% increase. Core CPI for February was up 0.2% month-over-month. It was expected to increase 0.1%. February CPI was up 0.2% year-over-year. Economists expected the year-over-year reading to be flat, just as it was in January. February Core CPI was up 1.8% year-over-year. It was expected to increase 1.7%, similar to the January increase. The fourth quarter current account balance showed a $132.8 billion deficit, which is improved from the prior reading's downwardly revised $181.3 billion deficit. The fourth quarter deficit was expected to total $137.1 billion.

 

[weatherweenie]

08:08 am : S&P futures vs fair value: +22.30. Nasdaq futures vs fair value: +29.00. Futures indicate a sharply higher start, and are trading near recently reached session highs, on news of the Treasury Department's plan to relieve banks of bad assets. Confirmed at 8:00ET, the program plans to to create a series of public-private investments funds to buy $500 billion to $1000 billion in legacy loans and securities. To encourage participation from the private sector, the government is taking on much of the risk and offering subsidies. Looking ahead on the economic calender, the existing home sales report is due at 10:00ET.

 

[weatherweenie]

08:05 am : S&P futures vs fair value: -15.10. Nasdaq futures vs fair value: -20.00. There are no market-moving earnings or economic announcements scheduled for this morning, but news that the government's auto task force determined that neither General Motors (GM) nor privately held Chrysler had submitted viable restructuring plans has created some rumblings ahead of the opening bell. The task force went on to indicate it doesn't believe that Chrysler is viable as a stand-alone company, and use of bankruptcy may be required for GM and Chrysler. GM's taks force has pushed GM's chief exectutive, Rick Wagoner, out of the company, but indicated it has no intention of replacing Chrysler's Robert Nardelli. Separately, Reuters reported Treasury Secretary Geithner declined to comment about steps to help automakers, which are expected to be announced by the White House Monday. There are reports that the Spanish central bank has taken over the operations of a savings bank, and the Bank of England has announced the transfer of certain assets of a building society. The news has rekindled fears of nationalization in Europe, which is undercutting U.S. bank stocks in premarket trading. Stock futures currently point to a markedly lower start for the U.S. indices.

 

[weatherweenie]

08:37 am : S&P futures vs fair value: -15.80. Nasdaq futures vs fair value: -19.50. With bankruptcy fears surrounding General Motors (GM) and privately held Chrysler, European automakers are down markedly. Daimler and Volkswagen are primary laggards on Germany's DAX, which is down 3.1%. News that there have been asset takeovers and transfers by Spain's central bank and the Bank of England are weighing on financials. As such, Deutsche Bank (DB) and Allianz (AZ) are trading with weakness. Fear of more government intervention is weighing on HSBC (HBC) and Barclays (BCS), which are leading losses in Britain's FTSE. However, the refusal of Barclays to partake in the government's toxic asset insurance plan is weighing on the stock. The decision comes just days after the company passed a government stress test. The FTSE is down 2.0%. Meanwhile, France's CAC is down 2.1% amid weakness in BNP Paribas and Societe Generale.

 

[weatherweenie]

08:05 am : S&P futures vs fair value: +17.90. Nasdaq futures vs fair value: +23.30. Just hitting the wires, Monsanto (MON) announced quarterly earnings of $2.16 per share, which is better than the $2.07 per share that Wall Street was expecting. The company expects full-year earnings to range from $4.40 to $4.50 per share, which fails to meet the full-year consensus forecast of $4.69 per share. Bank of America (BAC) chief executive Ken Lewis stated this morning in a CNBC interview that he regrets that the bank took as much TARP funds as it did, making him anxious to repay the funds. Lewis also indicated that billions of dollars are tied up in loss reserves, and that money could be used to create equity. The heads of major economies have decided at the G-20 meeting that they will double the financial resources of the International Monetary Fund to about $500 billion, which can be used to support developing nations. Meanwhile, the European Central Bank has cut its target interest rate by 25 basis points to 1.25%. Market participants await weekly jobless claims data (8:30 AM ET) and February factory orders (10:00 AM ET), along with the FASB's ruling on mark-to-market accounting rules (meeting starts at 8:00 AM ET).

 

[weatherweenie]

08:35 am : S&P futures vs fair value: +14.60. Nasdaq futures vs fair value: +17.80. Initial jobless claims jumped 12,000 to 669,000 for the week ending March 28. Initial weekly claims were expected to come in at 650,000. The larger-than-expected increase in initial in claims lifted the four-week moving average to 656,750 from 649,000. Meanwhile, continuing claims totaled 5.73 million, which marked a strong increase from the prior week's 5.57 million continuing claims. Stock futures are off their morning highs, but continue to indicate a positive bias in premarket trading.

 

[weatherweenie]

08:00 am : S&P futures vs fair value: +5.80. Nasdaq futures vs fair value: +13.80. The mood in premarket trading is a bit tepid as participants prepare for the March Nonfarm Payrolls report (8:30 AM ET) and the March ISM Nonmanufacturing Index (10:00 AM ET). Research In Motion (RIMM) posted fourth quarter earnings of $0.90 per share, which is $0.06 better than the $0.84 per share that anlysts were expecting. The company went one step furtherter by issuing upside guidance; the company expects first quarter earnings to range from $0.88 to $0.97 per share, while analysts had forecast just $0.82 per share for the quarter. IBM (IBM) and Sun Microsystems (JAVA) are in the final stages of negotiations of a deal in which IBM would pay $9.55 per share for Sun Microsystems, according to The Wall Street Journal. The report indicated the deal is priced at roughly $1 per share less than Sun Microsystems expected, but the offer is still above the prior session's closing price of $8.21 per share. European banks are trading with strength in the wake of an announcement from Royal Bank of Scotland (RBS) that it is targeting considerable annual cost savings. Royal Bank of Scotland's ADRs are trading roughly 13% higher in U.S. premarket action. In conjunction, the ADRs of Barclays (BCS) are trading more than 7% higher at $10.40 per share ahead of the U.S. open. Meanwhile, shares of major U.S. banks are trading modestly higher ahead of the opening bell.

 

[weatherweenie]

Non-Farm Payrolls Fall By 663,000 in March; Unemployment Rate at 8.5%