Search   Advanced Search
LATEST NEWS
 
 
News
 Latest Headlines
 Quick Facts
 Breaking News
 Top Stories
 Feature Articles
 Politics
 US Policy
 General
 Commodities
 Canadian
 UK
 Indian
 Wallstreet Events
 Slide Shows
 US Economic News
 European Economic News
 Asian Economic News
 All Economic News
 FX Top Stories
 Currency Alerts
 Mkt Sensitive News
 Politics
 European Mkt Updates
 Asian Mkt Updates
 Treasury Mkt Updates
 Pop
 Rock
 Classic Rock
 Rap/Hip-Hop
 Country
 Alternative
 Oldies
 Movie Reviews
 DVD Releases
 Box Office
 Slide Shows
 Business News
Commentary/Analysis
 Daily Market Analysis
 US Market Updates
 US Commentary
 Asian Commentary
 European Commentary
 Canadian Commentary
 Indian Commentary
 Sector/Market Trends
Stock Alerts
 Stocks To Watch
 Long Term Stocks
 Before the Bell
 $5 and Under
 After the Bell
 Intraday Updates
 IPOs
 Hot Stocks
Earnings Calendars
 Upcoming Earnings
 Latest Earnings
 Pos Pre Announcements
 Neg Pre Announcements
Corporate Calendars
 Stock Splits
 Stock Buybacks
 Dividends
 Conference Calls
 FDA Calendar
 Board Meetings
 Mergers & Acquisitions
Ratings Changes
 Upgrades
 Downgrades
 Coverage Initiations
 Coverage Reiterated
 All Videos
 Market Commentary
 Top Stories
 Economic News
 Political News
 Foreign Markets
 Corporate News
 Entertainment News
 Top Stories
 Earnings
 Mergers & Acquisitions
 Market Commentary
 Economic News
 IPOs and New Issues
 Corporate News
 Forex News
 Interviews
 Private Equity
Economic Calendar
RTT DeskAlert
CES 2010 Coverage 

Follow Us
RTTNews on Twitter RTTNews on Facebook RTTNews on MySpace RTTNews on YouTube

LastUpdated 2/9/2010 9:09:06 AM

For today's important news/events that may effect your portfolio please visit our Before The Bell page. This page also contains information on stocks that are trading or indicating to open higher/lower, stocks to watch on key corporate events, stock split information, major indices futures updates, bond updates, etc.

Beyond the Number

Hopes of Diffusion of European Debt Crisis May Lead to Some Bargain Hunting

The major U.S. index futures are pointing to a higher opening on Tuesday, with European debt concerns receding following indications from European Commission officials that they may step in to save Greece from getting mired in the debt crisis. Commodity prices are extending their gains and this coupled with the oversold levels of the markets may support a bounce back. Given the fact that the wholesale inventories report to be released after the markets close is not market moving, the markets may derive support from hopes that the economic revival may not lose steam despite the surrounding uncertainty.

Sovereign debt worries diffused market optimism over a sustainable recovery on the horizon and kept sentiment subdued for most of Monday’s session. Even amid a lack of any major catalysts on the economic front and a rebound in commodity prices, the major U.S. averages opened lower. Although the major averages snapped back their losses and showed some strength on the mid-session, economic uncertainty continued to weigh in the mind of traders, dragging the averages below the unchanged line in the afternoon.

Stocks declined sharply in the afternoon, resulting in the major averages closing near the lows of the session. The Dow Industrials ended down 103.84 points or 1.04% at 9,908, its lowest point since November 4th, 2009.



The S&P 500 Index ended at a 3-month low of 1,057, down 9.45 points or 0.89%. Meanwhile, the Nasdaq Composite lost 15.07 points or 0.70% to settle at 2,126.

Twenty-eight of the thirty Dow components closed the session lower, with American Express (AXP), Bank of America (BAC), Caterpillar (CAT), DuPont (DD), JP Morgan Chase (JPM) and United Technologies (UTX) declining sharply in the session. On the other hand, Home Depot (HD) advanced strongly and Hewlett-Packard (HPQ) posted a modest gain.

Among the sector indexes, the Dow Jones Utility Average fell 1.03% and the Dow Jones U.S. Basic Materials Average declined 1.65%. The NYSE Arca Securities Broker/Dealer Index and the KBW Bank Index moved down 1.03% and 1.47%, respectively. The NYSE Arca Oil Index lost 1.05% compared to a 3.77% drop by the NYSE Arca Gold Bugs Index. The NYSE Arca Software Index receded 2.04%, while the NYSE Arca Networking Index lost close to 1%.

Commodity, Currency Markets

Crude oil futures are trading up $0.97 at $72.86 a barrel after rising $0.70 to $71.89 a barrel in Monday’s session. Gold futures are currently moving up $9.90 to $1,076.10 an ounce. In the previous session, the precious metal rose by $13.40 to $1,066.20 an ounce.

Among currencies, the U.S. dollar is trading at 89.60 yen compared to the 89.263 yen it fetched at the close of New York trading on Monday. Against the euro, the dollar is currently valued at $1.3744.

Asia

The major Asian markets ended Tuesday’s session mixed, with the Japanese, Malaysian and Australian markets closing in negative territory, while the Chinese, Hong Kong, South Korean, Taiwan and Indian markets ended higher.

Japan’s Nikkei 225 average declined for the fourth straight day, ending the session down 18.92 points or 0.19% at 9,933. The index languished in negative territory for much of the session.

Utility, pharma, airline, steel, real estate, resource and financial stocks saw weakness in the session. Some technology stocks also lost ground on the day. However, auto stocks, including Toyota (TM), ended mostly higher. Toyota filed with Japan’s Transportation Ministry indicating that that it is voluntarily recalling more than 200,000 Prius cars sold in Japan and 8,500 cars in the U.K. due to faulty braking system. Electrical machinery makers also advanced.

Australia’s All Ordinaries and declined sharply in early trading and went about a steady decline till the afternoon. Thereafter, the index pared back most of its losses to close down 18.10 points or 0.40% at 4,521. Energy and financial stocks traded lower, while material and healthcare stocks showed some strength. In the mining space, BHP Billiton, Fortescue, Incitec and Lihir Gold rose, while Rio Tinto and Newcrest Mining receded. All the four major banks declined.

Hong Kong’s Hang Seng Index, which showed trepidation all through the morning, moved decisively into positive territory in the afternoon, advancing solidly to close up 239.39 points or 1.22% to 19,790. A majority of the stocks advanced in the session, with the exception of HSBC Holdings, Tencent, Cosco Pacific and Hong Kong Exchange.

Europe

After showing some nervousness in early trading, the major European averages have recovered and are currently trading higher. The French CAC 40 Index is gaining 0.23% and the German DAX Index is advancing 0.39%, while the U.K.’s FTSE 100 Index is rising 0.55%.

In corporate news, UBS (UBS) said it reversed to a profit of 1.21 billion Swiss francs in the fourth compared to a loss of 9.56 billion Swiss francs in the year-ago period.

On the economic front, a survey by the Royal Institute of Chartered Surveyors showed that a net 32% saw house prices rising in January compared to 30% in December. Economists had expected a net house price balance of 27%. However, new enquiries from potential buyers fell for the first time in 14 months, while the number of new sellers entering the market fell for the first time in seven months.

Meanwhile, the British Retail Consortium reported that total retail sales value in the U.K. fell 0.7% on a like-for-like basis in January compared to a year ago. On a total basis, sales rose 1.2% compared to January 2009. This marked the worst January sales growth in the 15-year history of the survey.

The final consumer price inflation report released by the German Federal Statistical Office said German consumer prices rose 0.8% year-over-year in January, slightly softer than the 0.9% increase in December. On a monthly basis, the consumer price index fell at an unrevised rate of 0.6%. Mineral oil product prices and electricity prices were behind the bulk of the annual increase, while food prices fell from the year-ago period.

Provisional data released by the German statistical office showed that Germany’s current account balance showed a surplus of 20.6 billion euros in December, higher than the 17.8 billion euro surplus in November and the 13.9 billion euro surplus in the year-ago period. The higher surplus compared to the previous month reflected an increase in the services account surplus and a surplus in current transfers compared to November, partly offset by a lower surplus on the trade balance. Meanwhile, on a year-over-year basis, the trade surplus increased to 13.5 billion euros compared to 7.3 billion euros in the year-ago period.

U.S. Economic Reports

The Commerce Department is due to release its wholesale inventories report at 10 AM ET. Economists expect wholesale inventories at the end of December to show a 0.5% increase.



Wholesale inventories at the end of November rose 1.5% month-over-month, although they declined 11% compared to the year-ago period. Meanwhile, wholesale sales rose 3.3% in November compared to the previous month and edged up 0.6% from the year-ago period. The wholesale inventories to sales ratio was at 1.14 compared to 1.29 in the year-ago period

Earnings

NYSE Euronext (NYX) reported fourth quarter non-GAAP earnings of 58 cents per share, higher than 52 cents per share in the year-ago period. Net revenues declined 6% to $640 million. Analysts estimated earnings of 48 cents per share on revenues of $638.30 million.

Pulte Homes (PHM) said its fourth quarter consolidated revenues rose to $1.7 billion from the year-ago’s $1.6 billion. The company reported a loss of $117 million or 31 cents per share, including $925 million in charges that were partly offset by a $800 million income tax benefit. In the comparable period of the previous year, the company reported a net loss of $1.33 per share, including goodwill impairments and land related charges of $386 million and an income tax benefit of $142 billion. Analysts estimated a loss of 19 cents per share on revenues of $1.50 billion.

Biogen Idec (BIIB) said its fourth quarter revenues rose 5% year-over-year to $1.1 billion. The company’s non-GAAP earnings rose 29% to $1.20 per share. Analysts estimated earnings of $1.05 per share on revenues of $1.13 billion. For 2010, the company estimates revenue growth in the mid single digits and non-GAAP earnings of above $4.55 per share. The consensus estimates call for earnings of $4.37 per share on revenue growth of 3.1%.

Coca-Cola’s (KO) fourth quarter reported net revenues rose 5% year-over-year to $7.51 billion. The company reported fourth quarter earnings of 66 cents per share, up 53% from 43 cents per share last year, with the net impact of charges nil in the recent quarter and 21 cents per share in the year-ago period. The consensus estimates called for earnings of 67 cents per share on revenues of $7.21 billion.

Cognizant Technology (CTSH) said its fourth quarter revenues rose 20% year-over-year to $902.7 million and its non-GAAP earnings rose 22% to 50 cents per share. The results exceeded the consensus estimate. The company expects first quarter revenues of at least $935 million and non-GAAP earnings of 52 cents per share. For 2010, the company expects non-GAAP earnings of $2.03 per share on revenues of at least $3.935 million. Analysts estimated earnings of $2.01 per share on revenues of $3.92 billion.

Coventry Healthcare (CVH) reported fourth quarter earnings of 74 cents per share on operating revenues of $3.4 billion. Analysts expected earnings of 56 cents per share on revenues of $3.49 billion. The company expects 2010 consolidated revenues of $10.86 billion to $11.37 billion and earnings of $2.10-$2.25 per share. The consensus estimates call for earnings of $2.23 per share on revenues of $11.21 billion.

Stocks in Focus

Electronic Arts (ERTS) tumbled in Monday’s after hours session after it said it expects fiscal year 2011 non-GAAP revenues of $3.65 billion to $3.90 billion and a non-GAAP profit of 50-70 cents per share. Analysts had expected earnings of 74 cents per share on revenues of $4.07 billion. The company reported third quarter non-GAAP net revenue of $1.35 billion, down 23% year-over-year, and non-GAAP net income of 33 cents per share, higher than 56 cents per share last year. The results exceeded the consensus estimates.

Vulcan Materials (VMC) could be in focus after it reported a fourth quarter net loss from continuing operations of 10 cents per share compared to a profit from continuing operations of $1.92 per share last year. Net sales fell to $555.77 million from the year-ago’s $756.52 million.

CNOOC (CEO) could gain ground after it announced that it its partner Husky Oil China made a new deepwater gas discovery on Block 29/26 in the South China sea. CNOOC noted that it has the right to participate in up to a 51% working interest in any commercial discoveries on Block 29/26.

AstraZeneca (AZN) may also move to the upside after the FDA approved Crestor to reduce the risk of stroke, myocardial infarction and arterial revascularization procedures in individuals without clinically evident coronary heart disease but with an increased risk of cardiovascular disease.

Fuel Tech (FTEK) could see some activity after it announced the resignation of its CFO and Treasurer John Graham, effective March 5th, 2010. The company noted that Graham is joining a privately-held environmental consulting company as its CEO.

Amgen (AMGN) is likely to see buying interest after it announced that its fully human monoclonal antibody denosumab met its primary and secondary end points in a Phase III study evaluating the therapy against Novartis’ (NVS) Zometa for treating bone metastases in men with advanced prostrate cancer. Denosumab was found to be superior to Zometa in delaying the first on-study skeletal related event and reducing the rate of multiple skeletal related event.

United Airlines (UAUA) may be in focus after it reported that its January load factor rose 3.4 percentage points year-over-year to 78.5%. Capacity declined 2%, while traffic rose 2.4%.

FMC Corp. (FMC) could move to the upside after it announced that its president and CEO Pierre Brondeau has recently purchased $1 million of its common stock in open market transactions.

Ownes & Minor (OMI) is expected to trade higher after it announced a three-for-two stock split of the company to be effected in the form of a stock dividend. The company also noted that its board has increased its quarterly cash dividend by 15%. Separately, the company reported fourth quarter earnings from continuing operations of 76 cents per share compared to 66 cents per share last year. Revenues rose 4.2% to $2.04 billion. The consensus estimates called for earnings of 71 cents per share on revenues of $2.08 billion. For 2010, the company expects revenue growth of 4%-6% and earnings per share of $2.90-$3.05. Analysts estimate earnings of $2.94 per share on revenue growth of 5.2%.

Insurance stocks Hartford Financial (HIG), Lincoln National (LNC) and Principal Financial (PFG) traded lower in Monday’s after hours session after the release of their financial results. Hartford reported fourth quarter core earnings of $1.51 per share compared to a core loss of 72 cents per share last year. Analysts estimated earnings of $1.40 per share. For 2010, the company expects core earnings per share of $3.70-$4 compared to the consensus estimate of $3.96 per share.

Lincoln’s fourth quarter operating income was 90 cents per share compared to a loss of 50 cents per share last year. The consensus estimate called for earnings of 83 cents per share.

Principal Financial reported fourth quarter operating earnings of 62 cents per share, lower than 69 cents per share last year. Operating revenues fell to $2.37 billion from the year-ago’s $2.53 billion. Analysts expected earnings of 65 cents per share for the quarter.

Synopsys (SNPS) may react to its announcement regarding its proposed acquisition of electronic system designer CoWare. The company expects the deal to close in the second quarter of 2010. However, it did not reveal the financial terms of the transaction.

Charles River (CRL) may be in the spotlight after it reported fourth quarter net sales of $295.4 million, up 5.2% year-over-year. The company’s non-GAAP earnings rose 16.9% to 49 cents per share. Analysts estimated earnings of 44 cents per share on revenues of $291.16 million. For 2010, the company expects net sales growth in the low single digits and non-GAAP earnings of $2.20-$2.40 per share. The consensus estimates call for earnings of $2.38 per share on 2.6% revenue growth.

CIT Group (CIT), which announced the appointment of former Merrill CEO John Thain as its CEO late Sunday, could continue to be in focus after it announced that its board has authorized the voluntary prepayment of $750 million on its $7.5 billion first-lien credit facility. The company clarified that it would prepay the high cost debt out of its available holding company cash position.

SRA International (SRX) is likely to see some activity after it announced that its second quarter revenues rose 12% to $413.5 million, exceeding the mean analysts’ estimate of $396.63 million. The company’s earnings rose to 33 cents per share, also ahead of the 19 cents per share consensus estimate. The company raised its fiscal year 2010 revenue guidance to $1.63 billion to $1.665 billion and raised its earnings per share guidance to $1.22-$1.29. The consensus estimates call for earnings of $1.22 per share on revenues of $1.64 billion.

Waste Connections (WCN) may also be in focus after it reported fourth quarter revenues of $309.9 million, up 19.4% year-over-year. The company’s adjusted net income available to Waste connections shareholders rose to 37 cents per share from 30 cents per share last year. Analysts estimated earnings of 37 cents per share on revenues of $308.76 million. The company estimates 2010 revenues of $1.28 billion compared to the $1.29 billion consensus estimate.

E-Mail Alerts & Newsletters: Receive Real-Time News Alerts on Articles Like These And More
Email        Printable Version           Follow Us RTTNews on Facebook RTTNews on MySpace RTTNews on YouTube



More Daily Market Analysis

10  Traders May Go Bargain Hunting Following Recent Weakness - RTTNews Daily Market Analysis
Mixed Message From Jobs Data May Fail to Give Direction
Job Fears May Keep Sentiment Subdued
Some Consolidation Likely Amid Continuing Uncertainty
Lackluster Performance Likely Ahead of Week’s Key Reports
Stocks Look to Data as They Attempt to Shake off Negative Sentiment
Strong Fourth Quarter Growth May Give Reason to Bid Up Beaten Down Stocks
Buying Momentum May Pick up as Stocks Linger at Oversold Levels
Caution Likely to Be Watchword as Traders Gear Up For Fed Statement
Trading Likely to Assume Cautious Tone Despite Upbeat Earnings
10 Articles

 

Copyright © 2010 RTTNews. All rights reserved. By using this site, you agree to the Terms of Service.

Feedback| Terms of Service| How To Use RTTNews.com| Advertise| Privacy| Buy Content | RSS