9:11 Greg Collins
National Semi (NSM:NYSE) has announced it will open its first major manufacturing facility in China representing 400 high tech jobs. The company plans to invest $200 mln in the project.
9:07 Greg Collins
Morgan Stanley is trimming estimates on Intel (INTC:NASD) taking '05 EPS from $1.10 to $1.05 (vs. $1.11 cons).
9:04 Todd Harrison
Please note that the dollar (-35 bips) is eyeballin' support (DXY 87) as the Euro pops anew. I'm being told that "buy stops" were triggered for the currency of choice across the pond.
9:03 Greg Collins
Arch Coal (ACI:NYSE) reported Q3 of $0.19 vs. $0.21 cons on revs of $527.8 mln vs. $472.25 mln cons. The company guides Q4 EPS to $0.20-$0.35 vs. $0.35 cons.
8:54 Greg Collins
DBAB punts BHP Billiton Limited (BHP:NYSE) from buy to hold on valuation although the firm prefers the shares to peers given the growth options and exposure to China
8:51 Greg Collins
Charles Schwab (SCH:NYSE) reported Q3 EPS of $0.08 vs. $0.08 cons on revs of $1.00 bln vs. $1.06 bln cons.
8:49 Greg Collins
Genuine Parts (GPC:NYSE) reported Q3 EPS of $0.56 vs. $0.56 cons on revs of $2.35 bln vs. $2.29 bln cons.
8:46 Greg Collins
JB Hunt (JBHT:NASD) reported Q3 EPS of $0.57 vs. $0.55 cons on revs of $719 mln vs. $701 mln.
8:44 Greg Collins
The dollar index (DXY) is getting slapped (off 40 bps) following the data digestion and eyeing the July lows (87.00).
8:40 Greg Collins
Given Imaging (GIVN:NAD) is looking nearly $4 lower following a warning that Q3 revs will come in at $14.4 mln vs. $15.08 mln.
8:37 Greg Collins
Schwab Soundview initiates Google (GOOG:NASD) with an outperform and a target of $180.
8:34 Greg Collins
Wachovia (WB:NYSE) reported Q3 EPS of $1.00 vs. $0.99 cons on revs of $5.62 bln vs. $5.57 bln cons.
The conference call is at 10:00 AM ET with a webcast here.
8:33 John Succo
Long bond futures printed as high as 114.08 on the numbers. It is now trading around 113.14.
These were obviously "buy stops".
8:33 Greg Collins
Sippin' on gin and juice...
Smith Barney adds Endo Pharma (ENDP:NASD) and Starbucks (SBUX:NASD) to its recommended list.
8:30 Greg Collins
Producer price index m/m for Sep: 0.1% vs. 0.1% exp; PPI ex-food & energy m/m for Sep: 0.3% vs. 0.2% exp; Producer price index y/y for Aug: 3.3% vs. 3.3% exp; PPI ex-food & energy y/y for Aug: 1.9% vs. 1.7% exp
Advance Retail Sales for Sep: 1.5% vs. 0.7 % exp; Retail Sales Less Auto for Sep: 0.6% vs. 0.3% exp
Empire Manufacturing for Oct: 17.43 vs. 25.0 exp.
8:24 Greg Collins
Lehman downgraded the auto and auto parts sectors to negative from neutral believing the earnings consensus is still too optimistic and valuations too high.
The firm's primary concerns are a potential production headwind for Big 3-dependent suppliers, pension difficulties, and margin squeeze from raw material costs.
8:20 John Succo
A broker just raised Northwest Airlines (NWAC:NASD) from "sell" to "hold".
How can you hold something you already sold?
8:19 Greg Collins
Piper Jaffray believes cautious comments from Nokia (NOK:NSYE) and Samsung on North American handset sales could be a plus for Motorola (MOT:NYSE) in Q3 results and Q4 guidance.
Piper believes MOT will gain global market share during Q4 based on its products and reiterates its outperform rating and $25 target.
MOT reports Q3 results on 10/19.
8:09 Greg Collins
Raymond James is lowering Fairchild Semi (FCS:NYSE) from strong buy to market perform following a disappointing outlook.
8:08 Greg Collins
Mary Deck Slaney...
Sprint (FON:NYSE) has announced it will cut 700 jobs and is taking an impairment charge that will be disclosed when it reports on 10/19.
8:07 John Succo
Here is what we saw yesterday from General Motors (GM:NYSE)...
Sales last month were strong, yet earnings were weak yesterday. This means that the company was essentially "dumping" cars on the market. The company slashed projections.
They are heavily using promotions to sell cars. This means that their financing operation is also doing poorly; their assumptions on lease returns were too aggressive.
The company has always been stealing sales from the future. But that ability seems to be eroding rapidly with the flood of used/lease cars on the market. This does not bode well for the company's ability to honor its huge pension fund liabilities.
Consumer finance companies like Capital One (COF:NYSE) and Americredit (ACF:NYSE) have been reporting higher delinquencies.
If Fannie Mae (FNM:NYSE) ever reports earnings we may get a better picture into the state of the consumption binge.
8:07 Greg Collins
Prudential and Smith Barney are downgrading Marsh and McLennan (MMC:NYSE) due to the Spitzer investigation announced yesterday. Pru lowers MMC to underweight from neutral and reduced its target to $30 from $48. SB moved to a sell from hold and cut its target to $31 from $47.
Prudential is also downgrading the entire P&C insurance sector to unfavorable from neutral and made price target reductions to the following companies: ACE ($39 from $45), XL ($80 from $88), STA ($34 from $39), CB ($75 from $80), RNR ($52 from $55), AJG ($31 from $34), and AOC ($21 from $28).
8:04 Greg Collins
JP Morgan punts the European materials sector from overweight to neutral.
7:55 Greg Collins
In a legal ruling, Bank of America (BAC:NYSE) must pay at least $372 mln in damages to Californians and total liability could top $1 bln. The company had been accused of illegally seizing Social Security funds to cover overdraft and bounced check fees.
BAC said it would appeal the judgement.
7:48 Greg Collins
Merrill Lynch adjusted estimates for electric utilities, raising '04 estimates for AES, TXU, DUK, EXC, FPL while seeing risk to consensus earnings for LNT, AEE, AEP, CPN, CIN, DTE, FPL, PPL, PEG, and WEC.
The firm believes mild weather, higher fuel, and share dilution could be offset by rate increases, sales growth and cost savings.
7:41 Greg Collins
Bear Stearns and UBS upgraded Rowan Co (RDC:NYSE). Bear moved it to peer perform from underperform while UBS went to neutral from reduce.
Bear cited valuation and better than expected Q3 results and raised F05 EPS to $0.90 vs $0.86 con. UBS cited RBC's leading edge dayrates and set a target of $27.
7:34 Greg Collins
According to Bloomberg, the EU plans to cut its growth forecast from 2.3% to 2.1%.
7:32 Greg Collins
Last night, Sun Microsytems (SUNW:NASD) reported Q3 EPS of $0.00 vs. ($0.03) cons on revs of $2.63 bln vs. $2.71 bln cons.
Bear Stearns upgrades SUNW to peer perform from underperform citing execution on cost/expense actions, cash generation, and potential operating leverage. Bear estimates fair value of the stock around $4.
7:30 Greg Collins
In Taiwan, an earthquake measuring a 7 and centered 66 miles off the northeast coast occurred - the strongest earthquake in that region since 1999.
Taiwan Semi (TSM:NYSE) and United Microelectronics (UMC:NYSE) reported no disruptions to production.
7:23 Greg Collins
Also last night
Lexar Media (LEXR:NASD) reported Q3 EPS of -$0.04 (in-line) on revs of $165.2 mln vs. $177.45 mln cons and guided Q4 EPS to $0.01-$0.04 vs. $0.07 cons on revs of $230 mln vs. $218.16 mln cons.
Netflix (NFLX:NASD) reported Q3 EPS of $0.35 vs $0.32 cons on revs of $141.6 mln vs $140.6 mln. The company is cutting its prices to $18 per month on 11/1 to fend off expected competition from Amazon (AMZN:NASD). NFLX is also postponing plans to enter the UK and Canadian markets to focus on domestic growth.
Everybody on Wall Street is downgrading NFLX this morning.
7:18 Greg Collins
As we highlighted yesterday, Fannie Mae (FNM:NYSE) is delaying the release of its Q3 '04 earnings and now plans to report when it files its 10-Q.
The SEC deadline for its 10-Q filing is 11/15.
7:18 Greg Collins
In case you missed it last night...
Cree (CREE:NASD) reported Q1 EPS of $0.32 vs. $0.28 cons on revs of $95.9 mln vs. $96.54 mln cons and guided Q2 EPS to $0.30-$0.32 vs $0.28 cons on revs of $98-100 mln vs $101.4 mln cons.
Fairchild Semi (FCS:NYSE) reported Q3 of $0.26 vs $0.25 cons on revs of $409.5 mln vs $410.2 mln cons and guided Q4 revs to about $368.6-$389.0 mln vs $432.2 mln cons.
Rambus (RMBS:NASD) reported Q3 EPS of $0.10 vs. $0.06 cons on revs of $38.76 mln vs. $36.8 mln cons and add that $0.03 of the EPS was attributable to a lower foreign tax rate. The company guided Q4 revenue to $37-$40 mln vs $37.67 mln cons.
Juniper Networks (JNPR:NYSE) reported Q3 EPS of $0.13 vs $0.11 cons on revs of $375.0 mln vs $370.4 mln cons and guided Q4 EPS to $0.14 vs $0.13 cons on revs of $405-415 mln vs $402.3 mln cons
7:17 Greg Collins
Smith Barney ups Edison International (EIX:NYSE) from hold to buy citing sale of merchant business and improvement in electric power. The firm also looks for EIX to raise its dividend.
7:13 Greg Collins
UBS upgrades Apache (APA:NYSE) from neutral to buy based on relative valuation and its outlook for production.
7:11 Greg Collins
For the week ended 10/13, AMG Data reported net equity inflows of $1.1 bln (68% into non-domestic funds); International funds inflows $744 mln; Emerging market equity fund inflows $207 mln; Taxable bond fund inflows $378 mln; High yield corporate bond inflows $42.6 mln (8th consecutive week); Muni bond fund outflows $49.4 mln and Money market fund inflows of $1.5 bln.
7:01 Greg Collins
Good morning. Traders head into the home stretch before a much needed respite to find foreign markets mostly looking lower. A look at Europe finds the FTSE -0.27%, CAC -0.45%, and the DAX -0.73%.
Asian trading finished mixed as the Nikkei slipped -0.47% while the Hang Seng bucked the trend in gaining +0.18%. Meanwhile, the dollar index (DXY) is off 2 bps to 87.53, gold is hovering near $420 and oil is basically flattish at $54. For their part, the stateside futes are slightly above fair value.
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