WALL STREET PROFIT NEWS
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08/07/08 - US
Stocks Fall; Financials Plunge With AIG - U.S. stocks
fall and the Dow Jones Industrial Average, dropping 225 points,
nearly wipes out its gains for the week as unemployment data and
staggering credit losses at AIG put an abrupt end to the recovery
for banks and lenders and the broad stock market. AIG slides 18%,
its biggest one-session percentage loss since May 1981.
08/07/08 - US
Jobless Claims, Used Home Sales Jump - The number of
U.S. workers filing new claims for unemployment benefits
unexpectedly rises by 7,000 to 455,000, the highest level since
March 2002 and breaching a psychologically important level. Index
for pending sales of used homes rises 5.3% to 89.0 in June but falls
12.3% on the year.
08/07/08 - Oil
Prices End Above $120 A Barrel - Crude oil futures
eke out a close above $120, snapping a three-day losing streak, as
fears of supply disruptions momentarily overtake demand concerns.
Nymex September crude settles up $1.44, or 1.1%, at $120.02 a
barrel.
08/07/08 -
Discount Window Borrowings Total $17.50B - Commercial
banks continue to tap the Fed's discount lending window at a
near-record pace in the week ending Aug. 6, while investment banks
avoid borrowing from a discount window created especially for them
in March.
08/07/08 - S&P
Cuts Ratings On $23.96B In CDOs - S&P lowers ratings
on $23.96 billion of U.S. collateralized debt obligations because of
credit deterioration and recent ratings cuts on subprime residential
mortgage-backed securities amid continuing housing weakness.
08/07/08 - Citi
To Buy Back $7.3B In Auction-Rate Securities -
Banking giant will buy back illiquid auction-rate securities from
its retail clients, charities and small to mid-sized businesses by
Nov. 5, accounting for $7.3 billion in securities. Shares fall 6%.
08/07/08 - US
Consumer Credit Rises $14.3B In June - Consumer
credit outstanding rises $14.3 billion in June to $2.586 trillion,
more than twice as much as expected and its highest level since June
2001, the earliest time period for which data are available,
according to latest report from the Fed.
08/07/08 -
Wal-Mart, Target Lead Disappointing Retail Sales -
July same-store sales generally fall short of expectations after two
straight months of topping dour estimates as discounters continue to
report the strongest results amid slack consumer confidence.
Wal-Mart also offers cautious August outlook and says stimulus
effect is fading. Wal-Mart and Target both fall 4%.
08/07/08 - AIG
Tumbles On Write-Down, Faces Ratings Cut - Shares
fall 18% after AIG writes down the value of its CDOs backed by
subprime and Alt-A mortgages by $24.8 billion, or to about 69¢ on
the dollar. Moody's also warns that AIG must deal with liquidity
needs at its units or it faces ratings cuts.
08/07/08 - Bank
Of America Discloses Subpoenas Over ARS - Bank of
America says it has received subpoenas from different state and
federal agencies seeking information about auction-rate securities.
08/07/08 -
Morgan Stanley To Repay ARS To Massachusetts Cities -
Financial-services firm will pay $1.5 million to resolve allegations
by Massachusetts that it misled municipalities in investing in
auction-rate securities.
08/07/08 -
Crocs Net Drops 96% On Lower Margins - Maker of
colorful plastic footwear reports 2Q net of $2.13 million, or 3¢ a
share, a decline of 96% as gross margins narrow to 41% from 59% and
U.S. sales fall 20%. The company affirms its 3Q and full-year
outlook.
________________________________________________________________________________________
07/15/08 -
Bernanke Says Economy Faces 'Numerous Difficulties' -
Fed chairman suggests risks to U.S. economy remain his top priority,
while dwelling on "unusually uncertain" inflation outlook, and
cautions Fed is watching for any sign that higher energy commodity
prices are becoming embedded in wages and expectations.
07/15/08 - Oil
Prices Slide On Bleak Fed Outlook, Supplies - Oil
futures sink more than $6 a barrel, settling at $138.74 a barrel
after the Federal Reserve chairman sounds bleak notes on the U.S.
economy and world supplies loosen up a little.
07/15/08 - Oil
prices plunge at fastest rate in 17 years over economic fears
- Oil prices fell harder than they have in 17 years Tuesday,
as fears that record fuel prices are spreading broad economic pain
exacerbated the third big sell-off in just over a week.
07/15/08 -
Stocks Close Down; Worries Over Freddie, Fannie Persist
- U.S. stocks fall as a plunge in the price of oil and
government intervention fails to quell market worries about
mortgage-finance giants Freddie Mac and Fannie Mae.
07/15/08 - SEC
Puts New Limits On Shorting Fannie, Freddie - U.S.
securities regulators are putting new restrictions in place to
prevent short-selling abuses involving shares of Wall Street's
primary dealers and Fannie Mae and Freddie Mac, the federally backed
housing-finance giants.
07/15/08 -
Paulson Says Fannie, Freddie Plans Needed - Paulson
says extraordinary Treasury Department proposal allowing it to buy
an equity stake in Fannie Mae and Freddie Mac is aimed at restoring
financial market stability, but cautions there are no immediate
plans to use the new authority.
07/15/08 - GM
Aims To Add $15B In Liquidity; Cuts Dividend - GM
says it will raise $15 billion through potential asset sales, cost
cutting and other financing measures. GM will also suspend the
dividend, cut certain compensation to salaried workers and
executives and lower capital spending. Shares down 4%.
07/15/08 - AMR
To Cut 200 Pilot Jobs In Downsizing - The parent of
American Airlines says it will cut 200 pilot jobs as part of a
previously-announced plan to reduce its workforce by 6,800. The
airline plans to cut flights and retire gas-guzzling aircraft to
cope with rising fuel bills.
________________________________________________________________________________________
07/07/08 - US
Stocks Fall; S&P 500 On Cusp Of Bear Market - Shares
sell off late in a volatile session and the Standard & Poor's 500
closes within a hair's breadth of a bear market as traders tried to
balance a drop in oil and renewed hopes for a Yahoo deal against
fears over Fannie Mae and Freddie Mac.
07/07/08 -
Indymac To Slash Jobs, Curtail Operations - Indymac
Bancorp has stopped taking loan applications and will cut more than
half of its work force amid liquidity and capital worries -- and
larger projected 2Q losses. California bank is one of the largest
originators of Alt-A loans that rate between prime and subprime.
07/07/08 -
Freddie Mac, Fannie Mae shares plunge on capital concerns
-
Fannie Mae (FNM.N) and Freddie Mac (FRE.N) shares plunged to their
lowest in nearly 16 years on Monday while costs to insure their debt
against default rose on concern the two largest U.S. mortgage
funders may need to raise vastly more capital amid
larger-than-expected losses
07/07/08 -
Financial Stocks Fall On Fannie, Freddie Worries -
Stocks of securities firms, real estate investment trusts, some
banks and other financial services companies fall, infected by
concerns about financial health of government-sponsored mortgage
agencies Freddie Mac and Fannie Mae.
07/07/08 -
Microsoft Interested If Yahoo Replaces Board -
Microsoft says it's interested in restarting talks to acquire some
or all of Yahoo if the Internet company's board is replaced, as Carl
Icahn continues his fight to convince Yahoo shareholders that he can
mediate a deal with Microsoft. Yahoo shares up 12% and Microsoft is
little changed.
07/07/08 -
Another 10% Home-Price Drop May Not Hurt RMBS -
Standard & Poor's says an additional 10% decline in home prices
likely wouldn't affect its ratings on U.S. residential
mortgage-backed securities. S&P/Case-Shiller Home Price Indices
prices off more than 16% nationally since 2006.
07/07/08 -
Ambac Hurt By Downgrades, But Says Liquidity Is 'Ample'
- Ambac says ratings-agency downgrades forced it to terminate
$270 million in business and increase collateral requirements by
just over half a billion dollars. Bond insurer reiterates that
speculation about its ability to cover financial instruments it
insures is unfounded.
07/07/08 - GM
Mulls Thousands Of New Job Cuts - Bruised by a deep
sales slump and a half-century-low in its stock price, General
Motors is preparing to cut thousands more white-collar jobs and is
considering whether it should sell or shutter more of its brands,
sources say. Shares rise 1%.
07/07/08 -
Marshall & Ilsley Warning A Drag On Bank Sector -
Banks shares are lower after the Milwaukee bank warns of a
second-quarter loss and analysts raise questions about its growth
potential and the sustainability of its dividend. Marshall & Ilsley
shares down 7%.
07/07/08 -AirTran
To Cut 5% Of Work Force In September - AirTran Holdings,
following across-the-board pay cuts introduced at its namesake
airline last week, says it plans to eliminate 480 pilot and flight
attendant jobs in September.
07/07/08 -
Fed, SEC Sign Information-Sharing Deal - The Fed and
SEC sign formal agreement aimed at boosting information sharing and
cooperation. Under the deal, Fed would be able to see an investment
bank's trading positions, its leverage and capital requirements,
among other things.
07/07/08 -
Yellen Hints Inflation A Rising Concern For Fed - San
Francisco Fed President Janet Yellen signals the Fed may be more
hawkish in fighting inflation in the future, signaling the central
bank may see battling inflation as possibly more important than
stimulating economic growth.
________________________________________________________________________________________
07/04/08 -
Biofuels behind food price hikes, leaked World Bank report finds
- Biofuels have caused world food prices to increase by 75
percent, according to the findings of an unpublished World Bank
report published in The Guardian newspaper on Friday.
07/04/08 -
US Payrolls Fall Again In
June; Unemployment Steady - U.S. payrolls shrink a
sixth time in a row during June, as businesses faced with rising
costs and a weak economy shed more jobs. Non-farm payrolls shrink by
62,000 jobs, while the unemployment rate holds at 5.5% in June.
Separately, weekly jobless claims increase by 16,000 to 404,000. The
ISM's service sector index falls to 48.2 amid record high price
gains in June.
07/04/08 - Oil
Ends At Record Above $145 A Barrel - Crude oil
futures close above $145 a barrel for first time as market
participants shrug off a stronger dollar to test new highs ahead of
Independence Day weekend. Light, sweet crude for August delivery
settles up $1.72 at $145.29 a barrel on Nymex.
07/04/08 - Ex-Refco
CEO Gets 16 Years In Prison - Phillip R. Bennett,
Refco's former chief executive, is sentenced to 16 years in prison
after he pleading guilty to criminal charges in a scheme to hide the
commodities broker's financial troubles.
07/04/08 - US
Stocks Mixed After Economic Data - The Dow Jones
Industrial Average moved into a bear market this week, though it
finishes with a bounce, as General Motors' stock tries to fight back
from its lowest levels since the 1950s. DJIA ends up about 73
points; Nasdaq drops 6.
07/04/08 -
Health Net, Aetna Shares Drop On Downgrade - Health
Net shares fall 13% and Aetna drops 7% after Goldman Sachs cuts its
investment ratings on the companies' stocks due to margin pressure.
Move comes a day after UnitedHealth further lowered its 2008 profit
target.
07/04/08 -
Moody's Cuts Toll Brothers' Credit Rating - Moody's
Investors Service cuts Toll Brothers' senior unsecured rating to
junk status, saying falling home prices and lower absorption rates
continue to have an impact on margins.
07/04/08 - Penn
National Buyout Terminated - Penn National Gaming and
funds managed by Fortress Investment Group and Centerbridge Partners
agree to terminate the proposed $6.1 billion acquisition of the
casino company, becoming the latest buyout to fall victim to the
credit crunch.
07/04/08 -
Morgan Stanley's Commodities Chief Shapiro Resigns -
Morgan Stanley commodities chief John Shapiro, head of one of Wall
Street's largest commodities franchises, is stepping down in a
surprise move. The securities firm says that Simon Greenshields and
Colin Bryce will succeed him.
07/04/08 - S&P
Warns XL Capital Of Downgrade - Mirroring a move by
Fitch earlier in the week, Standard & Poor's puts the credit ratings
of XL Capital and its property/casualty reinsurance unit on watch
for downgrade based on exposure to ailing insurer Security Capital
Assurance.
07/04/08 -
Nvidia Plunges, Warns On Chip Problems
- Shares fall 30% a day after Nvidia discloses
an overheating problem with some of its chips for notebook
computers, triggering a big charge, and says other problems also
will hurt financial results for the 2Q.
07/04/08 -
Marshall & Ilsley Sees 2Q Net Loss - Bank predicts a
big 2Q net loss on increased loan-loss provisions as housing market
continues to deteriorate. It sees a net loss of $1.50 to $1.60 a
share, and expects to take loan- and lease-loss provision of up to
$575 million and charge-offs of up to $415 million.
07/04/08 -
Paulson Warns On Economy, Inflation - Treasury
Secretary Henry Paulson ends a four-day European trip, warning that
the near-term economic outlook remains difficult and the global
inflation threat is serious. He also says high oil prices will
likely prolong the U.S. economic slowdown.
________________________________________________________________________________________
07/02/08 -
Beware, Bottom Fishers – Heard on the Street - Many
stocks are looking bombed out, but that doesn't mean they are cheap
as earnings estimates often haven't fallen quickly enough to reflect
dim economic prospects. Investors thirsting for growth also may pay
through the nose for a mere hint of it.
07/02/08 -
Energy experts puzzled over oil prices - As crude
soared to a new record, the head of the International Energy Agency
declared that the world was in the grip of an "oil shock," and the
president of OPEC acknowledged he
could not say whether prices would flatten out or continue to soar.
07/02/08 -
Paulson Seeks More Powers Over Non-Bank Failures -
U.S. Treasury Secretary Henry Paulson in a speech in London will
call for expanded regulatory powers to ensure that the failure of a
non-bank financial institution doesn't threaten the whole financial
system.
07/02/08 -
Moody's Loses A Key Player Amid Probe - Bond-rating
firm Moody's Investors Service says Noel Kirnon, a key figure in
what had been its fast-growing "structured finance" business, was
leaving amid an internal investigation.
07/02/08 -
Tokyo Shares End Down For 10th Straight Day - Tokyo
stocks fall for a 10th consecutive day, the longest decline in 43
years, as futures selling weighs on cash trading amid ongoing global
inflationary concerns.
07/02/08 -
REITs Bruised By Credit Crisis - Real-estate shares
registered bigger declines than the broader stock market in the
second quarter, as analysts say they fell victim to broader market
concerns, including growing trouble in the financial sector.
07/02/08 -
Fed's Lockhart Says Inflation Not Constant - Atlanta
Fed President Dennis Lockhart says inflation shouldn't be treated as
a persistent reality, adding that economic recovery accompanied by
higher and persistent inflation may win a battle but would lose a
war.
07/02/08 -
Starbucks To Shut 500 More Stores, Cut Jobs -
Starbucks effectively ends its era of blanket expansion by saying it
will close 500 more locations in the U.S. and cut 7% of its work
force. The pullback is a sign that the coffee giant is continuing to
see weak sales. To cut as many as 12,000 positions.
________________________________________________________________________________________
06/27/08 - MBIA
Sees Charges On $4B Asset Sale To Boost Collateral -
Embattled bond insurer says it will record a $300 million 2Q charge
after it sold $4 billion in investments to post additional
collateral and fund potential termination payments after a unit lost
its triple-A credit rating. Shares fall 5%.
06/27/08 - Oil
Closes Near $140 After Setting New Record - Crude
futures close at $140 a barrel on new indications of sinking U.S.
demand and a rebound by the dollar after earlier surging to fresh
record highs above $143 a barrel. The market could hit $150 a barrel
by the end of the week, a milestone forecast by Morgan Stanley. See
industry events.
06/27/08 -
Wachovia Waives Some Prepayment Fees - Wachovia is
waiving all prepayment fees associated with its "Pick-A-Pay"
mortgage program to help customers cope with declining home values
and the credit crunch. Shares drop 5%.
06/27/08 -
Autos Push New Lows Ahead Of June Sales - Wall
Street, anticipating unhappy news when June U.S. auto sales reports
show up tomorrow, knocks shares of the two top U.S. automakers, with
Ford down 10% and General Motors near 50-year low before staging
mild rebounds.
06/27/08 - Bank
Of NY Mellon CEO Sees More Bank Losses - Bank of New
York Mellon CEO Robert P. Kelly is predicting more losses for the
banking sector and a continuation of the U.S. housing market crisis,
assign that the industry fallout could give his firm a chance at an
acquisition.
06/27/08 -
Dallas Fed Manufacturing Index Falls - Texas area
manufacturing slumps in June, reports the Federal Reserve Bank of
Dallas. The bank says current production index moves to 0.0 from 5.5
in May, while general activity index stands at -24.1 in June.
06/27/08 -
Chicago PMI Again Shows Slight Contraction - Chicago
PMI improves slightly to 49.6 in June, from 49.1 in May, but still
shows contraction. Economists expected a reading of 48.0. The prices
paid index, a measure of inflation, is at 85.5 in June, from 87.5 in
May.
06/27/08 - BIS
Sees World Economy Near Tipping Point - Bank for
International Settlements says the global economy may be near a
"tipping point" that could see it enter a slowdown so severe that it
transforms the current period of rising inflation into a period of
falling prices.
06/27/08 - Fed
Releases Bear Stearns Meeting Minutes
– The Central bank in March believed it had no
choice but to help facilitate the rescue of Bear Stearns, the Wall
Street investment firm. They saw JPMorgan as the most suitable
buyer. Bear Stearns was have trouble meeting the next business
day's repayment obligations.
06/27/08 - Gold Rising In All
Currencies Amid Inflation Concerns - Gold is rising
in currencies other than the U.S. dollar. This suggests that
it is being bought for reasons other than just the weakness in the
greenback, writes Allen Sykora. Several precious metals and
commodities analysts said the inflation concerns are bringing the
intrinsic sparkle back to gold, which until Thursday had held under
the $900 an ounce level. "The gold move is taking place across
a range of currencies. It is indicative of a commodity that is
reflecting a broader picture than just the dollar," said Michael
Jansen, strategist with J.P. Morgan. Gold's strength even when
denominated in other currencies was also cited in the Gartman
Letter, a financial newsletter, Friday.
06/27/08 - US
Stocks Drop; Dow Dips Into Bear Territory - The Dow
Jones Industrial Average falls into bear-market territory, 20% from
its October closing peak, as stocks are unable to cast off the
millstones of high oil prices and economic worries. The S&P 500 is
trading at its lowest mark in more than a year, and many observers
say there is worse yet to come.
06/27/08 - Oil
Hits New Record Above $142 - Oil rises to a new
record $142.30 a barrel on weaker dollar and slumping U.S. equities
as investors turn to commodities in search of better returns. Broker
sees tools in place next week to push oil to $150 a barrel.
06/27/08 - Oil
Surges To All-Time High, Further Spikes Seen - Crude
oil surges to an all-time high as fresh buyers jump in to the
market, with ambivalence over Federal Reserve's future actions on
inflation and a weakening dollar acting as a launching pad for
rising prices. One oil broker says market now eyeing $150 a barrel.
06/27/08-
Commodities Rally Despite Oil-Led Growth Concerns -
Gold has been the biggest gainer from the slump in U.S stocks,
widening credit spreads and a surge in oil prices, but base metals
and grains could continue to gain despite worries about slowing
global economic growth, analysts say.
06/27/08 - AIG
To Absorb Up To $5B In Losses - American
International Group is set to absorb up to $5 billion in losses for
a dozen insurance units after their securities-lending accounts
suffered $13 billion of write-downs tied to the subprime-mortgage
collapse during the past year, Bloomberg reports.
06/27/08 -
Lehman Sees Merrill Posting $5.4B 2Q Write-Down -
Lehman Brothers estimates Merrill Lynch will post a $5.4 billion
write-down and a loss of $2.78 a share for the quarter, due mainly
to recent credit downgrades of Ambac and MBIA. Merrill falls 1%.
06/27/08 -
Citigroup Closing Trading Desk For Distressed Debt -
Bank is closing a trading desk that specializes in distressed debt
and plans to essentially outsource the business to a new hedge fund,
as it streamlines its businesses and avoids unnecessary risk-taking
in its investment bank. Shares fall 4%.
06/27/08 -
Moody's May Cut Morgan Stanley Ratings - Moody's is
mulling cutting the long-term credit ratings for Morgan Stanley,
calling the investment bank's financial performance and risk
management since the onset of the mortgage crisis "inconsistent."
Morgan Stanley shares fall 1%.
06/27/08 -
Fitch Considering Wachovia Credit Downgrade - Fitch
Ratings put Wachovia's credit ratings on review for a downgrade amid
worries about the bank's massive residential mortgage portfolio.
Wachovia shares trade down 2%.
06/27/08 -
UBS Denies Mulling Sale Of Paine Webber
- UBS denies a Reuters report that the Swiss bank is
considering selling its U.S. brokerage Paine Webber, which it bought
for close to $12 billion in 2000. Shares are down 4% in U.S.
trading.
06/27/08 - IAC
Takes $300M Hit On Catalog Write-Down - Barry
Diller's IAC/InterActiveCorp will take an estimated $300 million
charge to write down the goodwill value of its Cornerstone Brands
catalog business, reflecting in part "significant deterioration in
the macro economic environment for retailers."
06/27/08 - Palm
Swings To 4Q Loss, Misses View - Palm loses $41.1
million, or 40¢ a share, compared with year-ago net income of $15.4
million. Excluding items, loss is 22¢. Revenue drops 26% to $296.2
million, but smartphone sales rise 29%. Analysts expected a loss of
18¢ a share. Shares down 3% late.
06/27/08 - GM
Shares Plunge To 53-Year Low - General Motors' shares
sink to a 53-year low amid concerns about liquidity, equity dilution
and a potential dividend cut, heightening speculation that the auto
maker doesn't have enough cash to finance its turnaround.
06/27/08 -
Anheuser To Cut Costs, Challenge InBev - St. Louis
brewer intends to cut $1 billion in costs by 2010, the bulk of which
would come in the next two years, in part by slashing 10% to 15% of
its full-time work force. It also leaves door open for a higher bid.
Shares rise 2%.
06/27/08 - KB
Home 2Q Loss Widens As Prices Drop - Home builder's
loss widens to $255.9 million after write-downs, amid a continuing
housing downturn and credit crunch. Revenue drops 55% to $639.1
million as new home deliveries fall 41% and average selling price
drops 17%. Shares fall 6%.
06/27/08 - Fed
Looks To Developing Nations For Inflation Help -
Federal Reserve Vice Chairman Donald Kohn suggests that it may be up
to central banks in developing countries, and not necessarily those
in industrialized economies like the U.S., to take action to reduce
global inflation.
06/27/08 -
Trichet Says Banks Can't Control Price Shifts
- ECB President Trichet says that monetary
policymakers have to ensure price stability, even if they can't
control relative price shifts within the economy. Also calls for
responsibility from oil producers and consumers.
06/27/08 - 2Q
Catastrophes Threaten Insurer Profits - Bad weather
has cost U.S. property insurers more than $5 billion so far in 2Q
catastrophe-related claims -- equal to about three-quarters of all
catastrophe claims during 2007 -- and could push the industry to an
underwriting loss.
06/27/08 - Sony
Ericsson Issues 2Q Profit Warning - Mobile phone
maker says its 2Q sales and net income would be hit by slowing
demand for mid-to-high end mobile phones and a delay of new products
shipped during the quarter. See events at a glance
here.
06/27/08 -
Countrywide CEO Helped Many Get Loans - Angelo Mozilo,
chief executive of Countrywide Financial, paved the way for a
variety of people to receive loans despite problems that ordinarily
would have disqualified them.
06/27/08- First Marblehead Says Goldman Cash Infusion Delayed - Student-loan packager has been hard-hit by investor wariness about complex asset-backed securities, and the bankruptcy of an entity that guaranteed student loans it packaged.
06/25/08 -
US New Home Sales Slip; Durables Flat - Sales of new
homes slip 2.5% for May to an annual rate of 512,000, the fifth
decline in six months. Meanwhile, orders for durable goods remain
unchanged, holding at $213.64 billion; Wall Street forecast a 0.5%
decline.
06/25/08 -
Auto Loans New Trouble Spot For GMAC - Declining values
of gas-guzzling pickups and SUVs loom over GMAC, adding to its
existing problems with souring mortgages in its ailing home loan
unit and leaving GMAC in worse shape than rival Ford Motor Credit,
writes Aparajita Saha-Bubna.
06/25/08 -
Barclays Plans $8.9B Share Issue - U.K. banking giant
unveils a share issue to shore up its balance sheet, announcing
participation by several Asian and Middle East sovereign wealth
funds. CEO John Varley says
capital could be used to fund acquisitions. Shares rise 6%.
06/25/08 -
Banks, Hedge Funds Face Losses On Rates Bet - Investment
banks and hedge funds are facing billions of dollars in losses and
write-downs on complex European interest rate trades, just months
after problems with subprime mortgages and structured credit
appeared to be easing.
06/25/08 -
California Sues Countrywide Over Mortgage Loans - State
claims lender engaged in deceptive advertising and unfair
competition by pushing borrowers into risky loans. Complaint also
names Countrywide chairman Angelo Mozilo and President David Sambol.
06/25/08 -
JC Penney Cuts Store-Openings For 2009 - Department store
chain will further cut plans to open new stores and renovate
existing ones as it slashes capital spending plans for 2009 by 35%
from this year's levels. Deutsche Bank upgrades stock to buy from
hold. Shares gain 4%.
06/25/08 -
SEC To Revise Rules On Credit Ratings - Agency votes
unanimously to tackle its own reliance on credit ratings, calling
for the elimination of references to ratings in some cases, or
allowing the use of alternatives to such ratings. It also proposes
some annuity products be
treated as securities, not as insurance.
06/23/08 - US Stocks Mixed; Energy
Offsets Financials' Weakness - Reports that Citigroup and
Goldman Sachs will cut 10% of their banking jobs sink financials.
Some of that negative sentiment is offset by an uptick in deal
activity, and stocks end the day mixed.
06/23/08 - US Consumer Confidence
Seen Down To 57.0 - Consumer confidence is seen losing more
ground in June with the recent jump in the unemployment rate to 5.5%
likely impacting consumers' perception of a struggling job market,
according to a Dow Jones Newswires survey.
06/23/08 - Small Caps Fall, With
Financials Lower - Another selloff among financial names
meant another down day for small-capitalization stocks. Goldman
Sachs analysts cut their rating on the sector to underweight from
neutral, adding that an upgrade in May was "clearly wrong."
06/23/08 -
UPS Cuts 2Q
Forecast On Weak Economy, Fuel Costs - United Parcel
Service cuts its 2Q earnings guidance, blaming an "anemic" U.S.
economy and "unprecedented increase" in fuel costs for
lower-than-expected U.S. package volume and decreased use of its
premium air products. UPS now expects 2Q earnings of 83¢ to 88¢ a
share, down from 97¢ to $1.04 a share predicted in April. Shares
fall 4% late.
06/23/08 - GM Extends Truck Plant
Shutdowns, Adds Sales Incentives - Auto maker plans to
extend the summer shutdowns at six plants and to offer more sales
incentives to clear its bloated inventory of large vehicles as the
company addresses a steep decline in sales of pickup trucks and
SUVs. GM shares slide 6%.
06/23/08 - Oil Rises; Nigeria Outages
Trump Saudi News - Crude oil settles higher but below the
day's highs as the promise of more Saudi crude in 2009 fails to
quiet worries about more immediate production problems in Nigeria.
August light, sweet crude settles $1.38, or 1%, higher at $136.74 a
barrel.
06/23/08 - Saudi High-Wire Act Fails To
Calm Oil Prices - Saudi Arabia's cautious moves aimed at
bringing down oil prices failed to impress the market, writes David
Bird. Still, the Jeddah meeting opens a new chapter in oil producer
and consumer relations and exposes fissures within OPEC.
06/23/08 - Northwest CEO Sees Jet Fuel
Costs Up $2B - CEO Doug Steenland says the airline's fuel
costs will be up $2 billion in 2008 from 2007. He expects the total
fuel costs to be in the region of $6 billion this year. Steenland
was testifying at a hearing before a House Committee.
06/23/08 - Circuit City Down Amid Doubt
Over Deal - Circuit City, after opening its books to
Blockbuster, falls 19%, signaling investors have lost confidence in
any possible combination, analysts say. Circuit City has lost 30% of
its gain since Blockbuster offered in April to pay $6 a share for
the retailer.
06/23/08 - Motorola Stock Sinks Again On
Sell Rating - Technology giant's shares fall 5% after Piper
Jaffray reduces the stock to a still-rare Wall Street sell rating.
News comes a week after Compal Communications slashed its estimate
of 2008 handset shipments, citing reduced orders from Motorola.
06/22/08 -
US
Stocks Plunge On Oil Rally, Credit Fears - Another
boom for crude oil prices pushes stocks further into the red, with
the Dow Jones Industrial Average closing at a level not seen since
March 10, a week before the collapse of Bear Stearns. Financials
fall as investors strap in for a brutal earnings season. DJIA falls
about 220 points.
06/22/08 -
Meyer Says Fed Could Raise Rates By March '09
- Economist and former Fed policy maker Laurence
Meyer says the Fed will likely raise interest rates by March as it
tries to contain the potential inflationary impacts of higher energy
prices.
06/22/08 -
Merrill Drops As Options Buyers Go Negative - Options
buyers are gravitating toward puts allowing them to sell the
brokerage's stock for $32.50 before Oct. 17, contracts that cost
$3.10 and make money only if Merrill's stock drops below $29.40.
Shares fall 4%.
06/22/08 - Wall
Street Sees Loss For Citigroup For 2008 - Wall Street
analysts now expect Citigroup to lose money this year, cutting their
estimates a day after CFO Gary Crittenden said the bank may take
"substantial" further write-downs due to deteriorating mortgage
investments. Shares fall 4%.
06/22/08 - Citi
Cuts Life Insurance Coverage For High Earners -
Starting in August, Citi employees who earn at least $200,000 will
no longer be eligible for the basic life insurance bank provided for
all employees. Instead, affected employees can enroll in a separate
life insurance offered through Citi.
06/22/08 -
Citi's Head Of Hedge-Fund Services To Leave - Steve
Bowman, the head of hedge-fund services who was responsible for
coordinating and helping to consolidate Citigroup's variety of units
that serve hedge funds, is leaving after 24 years at the company to
"pursue new opportunities."
06/22/08 - Ford
To Cut Output Further, Trims Outlook - Auto maker
now plans to cut 3Q production by 25% and 4Q production by as much
as 14%. The company also will delay the launch of its redesigned
F-150 pickup by two months, to give dealers a chance to sell
existing inventory of the vehicles. Shares drop 7%.
06/22/08 - Auto
Makers Warned Of Ratings Cuts - S&P warns it is
likely to cut the ratings on the three U.S.-based auto makers and
their credit operations, noting continued weakening of the domestic
sales market. Moody's also cut its outlook on Ford and Chrysler to
negative.
06/22/08 -
Moody's Cuts MBIA, Ambac Unit Ratings - Moody's
strips units of the two largest bond insurers, MBIA and Ambac
Financial, of their treasured AAA ratings, citing their limited
financial flexibility and weakened businesses. MBIA off 9%, and
Ambac loses 5%.
06/22/08 -
Moody's Cuts Ratings On SCA, FGIC Units - Moody's
downgrades to junk status its ratings on the bond insurer units of
Security Capital Assurance and FGIC citing severely impaired
financial flexibility and "proximity to minimum regulatory capital
requirements."
06/22/08 - Oil
Tops $134 On Mideast Tension, Nigeria - Oil futures
settle up $2.69, or 2%, at $134.62 a barrel, boosted by news of
supply interruptions in Nigeria and potential of rising tensions
between Israel and Iran. Jump precedes meeting of government
officials and oil executives in Jeddah.
06/22/08 - ICE
Warns Against Over-Regulating Oil Market - Chief
executive of InterContinentalExchange warns that over-regulation of
crude oil futures will drive business to foreign exchanges and have
the unintended consequence of driving oil prices higher.
06/22/08 - Top
US Oil Suppliers Struggle With Output - Oil output in
four of the top five suppliers to the U.S., the world's biggest oil
consumer, drops by nearly 1 million barrels a day last year. Some of
it's due to politics such as Nigeria's civil unrest, says David
Bird.
06/18/08 – Oil
Ends Above $136 On Supply Concerns
- Crude oil futures settle up $2.67, or 2%, at $136.68 a
barrel, snapping a three-day losing streak on the risk of new
short-term cutbacks in Nigerian supply if a strike threat becomes
reality at a Chevron unit as well as a drawdown in U.S. oil
inventories. Oil had traded lower after a report that showed U.S.
gasoline demand declined in May.
06/18/08 –
US
Stocks Down On Financial Fears - Stocks fall and the
DJIA dips below 12000 for the first time since March 18 as financial
fears rise. Oil closes above $136 a barrel, partly because of supply
concerns in Nigeria and a weakening of the dollar against the euro.
06/18/08 –
FedEx
Posts 4Q Loss, Gives Weak Outlook
- Package delivery firm swings to a loss of $241
million, or 78¢ a share. FedEx sees fiscal-year earnings of
$4.75-$5.25 a share and 1Q earnings of 80¢-$1 a share amid a soft
U.S. economy and surging fuel costs. Shares fall 3%.
6/18/08 –
Huntsman Slides As Apollo, Hexion File Suit - Apollo
Management and Hexion Specialty Chemicals file a lawsuit against
Huntsman, threatening to scuttle one of the largest and last
remaining unconsummated deals of the buyout boom. Huntsman shares
slide 35% in late trading.
06/18/08 – WaMu
Ends 2 Types Of Complex Mortgages - Bank will
discontinue two complex mortgage products as it cuts back on riskier
loans amid the subprime mortgage mess and falling home prices.
Washington Mutual also adds $1 billion to the assistance program
announced in April 2007.
06/18/08 –
Morgan Stanley 2Q Net Drops 60%
- Investment bank is battered by trading and
investment losses in core operations, with its strongest division,
institutional securities, hit by weak proprietary stock trading
results and wrong bets on some commodities.
06/18/08 –
Indictment Of Fund Managers Could Be Unsealed -
Criminal indictment of two former managers of Bear Stearns, Ralph
Cioffi and Matthew Tannin, is expected to be unsealed in federal
court as early as tomorrow morning.
06/18/08 – Bush
Calls For Major Increase In US Energy Production -
President presses Congress to take quick steps to boost oil
production in the U.S., sharpening the clash with Democrats over
energy policy as consumers struggle with soaring gasoline prices.
06/18/08 –
Coventry Health Cuts Forecast; Shares Fall - Health
insurer slashes its already pessimistic 2Q profit forecast, with CEO
calling April's and May's results "very" disappointing. It sees 2Q
EPS of 55¢-57¢ and $3.65-$3.75 for year. In April, it projected 2Q
EPS of $1.03-$1.04. Shares fall 20% late.
06/18/08 –
Fifth Third Drops On Dividend Cut, Capital Boost -
Bank plans to sell $1 billion in convertible preferred stock, sell
noncore operations and slash its dividend by 66%, becoming the
latest regional bank to take steps in boosting capital levels as
credit losses continue to mount. Shares down 16%.
06/18/08 –
United Downsizes; Delta Cuts Capacity - United, Delta
and
Northwest are reducing their capacity, fleet and work force as
they try to keep flying amid record-high fuel costs. Delta expects
to reduce domestic capacity by 13% in the second half of 2008.
06/18/08 – MF
Global Shares Sink On 1Q Warning - Shares of MF
Global plummet 36% following its weak revenue outlook of $360
million to $390 million. Firm also discloses that it will sell
another $300 million in convertible stock and bonds to repay a
bridge loan.
06/13/08 -
Big
US Inflation Jump Supports Rate-Hike View - U.S.
consumer prices rise 0.6% on soaring energy prices and a big jump in
airline fares, suggesting the economy remains vulnerable to an
unwelcome mix of rising inflation and weak economic growth. Data
support Wall Street sentiment that officials may raise interest
rates as early as the summer. Fed officials also get some good news
from a mid-June consumer sentiment survey, which showed a small
downtick in one-year inflation expectations to 5.1% from 5.2%.
06/13/08 -
US Consumer Prices Jump 0.6%, Supports Rate-Hike View
- U.S. consumer prices rise sharply on
soaring energy prices and a big jump in airline fares, suggesting
the economy remains vulnerable to an unwelcome mix of rising
inflation and weak economic growth. Yet prices of clothing, medical
care and automobiles are well contained, suggesting that higher oil
and food prices haven't yet spilled over into the broader economy.
06/13/08 - US
Sentiment Index Heads Lower - The preliminary
Reuters/University of Michigan consumer sentiment survey for June
shows the overall index moved to 56.7 in mid-June from 59.8 at the
end of May. Economists had been expecting a reading of 59.8.
06/13/08 -
G8 To Cite Commodities As 'Challenge' To Global Economy
- Costly commodities are posing a "serious challenge"
to the global economy since they stir inflationary pressures and
undermine growth, the Group of Eight leading nations will say
following meetings today and tomorrow, a person familiar with the
statement says.
06/13/08 - US
Probes Focusing On AIG Group Tied To Swaps -
Government probes of American International Group have cast a
spotlight on its entrepreneurial financial-products business, which
has been the source of profits and controversy over the years.
06/13/08 -
KeyCorp To Sell $1.65B In Stock - Company prices 10%
more in common and preferred stock than it initially planned to
sell, citing "strong investor response" despite the fact shares
plunged 24% after the plan was announced yesterday. Shares are down
2%.
06/13/08 - MF
Global Gets Wells Notice In Gas Price Probe - MF
Global says it received a Wells Notice, which indicates the SEC is
considering enforcement action, from the Commodity Futures Trading
Commission in connection with the agency's natural gas price
information probe.
06/12/08 -
Lehman Falls, To Replace COO Gregory, CFO Callan -
Financial-services firm is replacing Chief Operating Officer Joseph
Gregory and Chief Financial Officer Erin Callan as it deals with a
tumbling stock price and questions about the firm's future. Gregory
will be replaced by Herbert H. "Bart" McDade III, head of Lehman's
equities business, while co-chief administrative officer Ian Lowitt
will succeed Callan.
06/12/08 - Citi
Shuts Old Lane, To Take On $9B In Assets - Bank will
take $9 billion onto its already-bulging balance sheet as it will
close a hedge fund co-founded by CEO Vikram Pandit, 11 months after
Citi bought the fund's management company for more than $800
million. Shares gain 2%.
06/12/08 -
US Import Prices Soar, Signal Rising Inflation Pressures
- Import prices soar 2.3% on a monthly basis in May,
jumping for a third-straight month in May, while prices from China
hit a fresh record, suggesting rising oil prices and a weak dollar
are fanning inflationary pressures. Wall Street expected a 2.6%
rise.
06/12/08 -
KeyCorp To Sell $1.5B Stock, Halve Dividend - Shares
drop 9% as bank announces plan to raise about $1.5 billion from the
sale of common and preferred stock while halving its dividend,
blaming a federal ruling in a dispute over tax treatment of
leveraged leases.
06/12/08 -
US Jobless Claims Rise 25K Last Week
- The number of workers filing new claims for
unemployment benefits jump by 25,000 to 384,000 last week,
suggesting pressure on labor markets is growing after a very weak
May jobs report. Economists had expected a 9,000 rise.
06/12/08 -
Lieberman Seeks To Limit Commodity Investors - Sen.
Joseph Lieberman plans to propose a ban on large institutional
investors, including index funds, from the nation's booming
commodity markets, The New York Times reports.
06/12/08 - WaMu
Denies Regulatory Action Rumors - Washington Mutual
says that neither its primary federal regulator nor anyone else has
taken any enforcement action against the bank that hasn't already
been disclosed, and it is not in discussion with any regulatory
agency. Shares rise 4%.
06/12/08 -
IEA
Chief Warns Of 'Third Oil Shock'
- The world is probably facing "a third oil shock" as
figures show proportion of global oil expenditures to global GDP is
expected to leap in 2008, coming close to the levels which followed
the second oil crisis in 1979, says head of the IEA.
06/12/08 -
MF Global Taps Former CBOT Head - MF Global names
Chicago Board of Trade veteran Bernard "Bernie" Dan chief operating
officer of its North American businesses as the derivatives
brokerage firm tries to recover from the impact of a February
trading scandal.
06/12/08 -
Thornburg Swings To 1Q Loss On Investments - The real
estate investment trust posts a loss of $3.31 billion, or $20.64 a
share, versus net of $75 million, or 62 cents a share, a year ago,
as it books unrealized market-value losses and financing-related
charges.
06/11/08 –
Beige Book Finds US Economy
'Generally Weak' - Fed's Beige
Book report says the U.S. economy remained weak through May as
consumers were "pinched" by rising food and energy prices and labor
markets softened. Report supports expectations that policymakers
will hold interest rates steady when they meet June 24-25, as they
balance signs of rising inflation with weak growth.
06/11/08 -
Oil
Ends Above $136 On Inventory Data - Oil closes at
$136.41 a barrel, off from an intraday high of $138.80, seizing on a
larger-than-expected draw in oil
inventories even as more signs of sinking U.S. demand emerge.
Inventories fall by 4.6 million barrels with analysts expecting a
900,000-barrel decline, and the 23.6 million barrel decline in oil
stocks over the last four weeks is the biggest such drop in 23
years.
06/11/08 - US
Stocks Fall On Weakness In Financials, Transports -
Stocks resume their slide, with financial shares leading the way
lower amid lingering uncertainty over the credit crunch and rising
expectations of a Federal Reserve rate hike to fight inflation.
Higher crude oil also weighing on stocks.
06/11/08 -
US Posts $165.93B Budget Deficit In May - Tax rebates
offered to spur a faltering U.S. economy help widen the federal
government deficit to $165.93 billion in May, which is 145% larger
than the deficit of $67.70 billion in the year-ago month.
06/11/08 -
Markets Pound Financials As Fears Grow - Financial
markets' focus on banks and brokers intensifies as worries over
financial institutions resurface with the approaching quarter-end
reporting season starting in earnest for a number of large brokers.
Lehman and WaMu fall 7%.
06/11/08 -
Alcoa Falls On Earnings Warnings - Shares of aluminum
giant Alcoa falls 5% after the company warns earnings will be
clipped by fuel shortages at its Australia operations. The stock
also reacted to a downgrade by JPMorgan Chase.
06/11/08 - SEC
To Float New Rules For Rating Firms - SEC votes to
propose tightening rules for credit-rating firms, calling for
restrictions to attack conflicts of interest and expanded
disclosure. Cites a general lack of understanding about the risks of
mortgage-back securities for the proposal.
06/11/08 -
ECB's
Stark Says Inflation 'Clearly Above' Stability
- Juergen Stark, member of the European Central
Bank's Executive Board, says inflation in the euro area is above the
central bank's comfort level, adding the institution will act to
keep price pressures in check.
06/11/08 -
Burlington Shares Fall On UBS Comments - Shares of
Burlington Northern Santa Fe fall 5% after an analyst at UBS says
Wall Street expectations for the second quarter aren't factoring in
higher fuel costs and puts a short-term sell rating on the company.
06/11/08 -
Zandi
Says Average American In Recession - Mark Zandi,
chief economist at Moody's Economy.com, says the average American
household is experiencing a recession, as the declining job market
is limiting wage increases while food and fuel costs continue to
rise.
06/11/08 -
Bullard Says Fed Right On Interest Rate Policy - St.
Louis Fed Chief James Bullard says the current interest rate policy
is appropriately calibrated now to deal with stagnating economic
growth and inflationary pressures.
06/11/08 -
Treasury's Steel Says To Share Responsibility -
Treasury Undersecretary Robert Steel says responsibility for the
current financial crisis must be shared among the regulators,
issuers and investors who all fed into the market's exuberance
before its unraveling last summer.
06/11/08 -
Kohn Urges Patience In Coping With Oil Prices -
Federal Reserve Vice Chairman Donald Kohn urges patience in dealing
with higher oil prices, saying the best policy response is to allow
"some" short-term rise in both inflation and unemployment rather
than aim for "more extreme" outcomes.
06/11/08 -
GM
Europe Sees 'Profound' Hit From Oil - GM Europe
President Carl-Peter Forster says the well-documented weakness in
GM's North American market is also being felt in Western Europe, as
production costs soar and the sales rate threatens to sink to
multi-decade lows.
06/11/08 -
Kroszner Urges Simpler Credit-Product Disclosures -
Federal Reserve Governor Kroszner continues to campaign for clearer,
simpler credit-product disclosures, stressing the importance of
providing consumers with concise, understandable information about
such products.
06/05/08 -
US
Jobless Rate Jump Takes Fed Hikes Off Table
- U.S. unemployment rate posts its sharpest one-month
increase in 22 years last month, rising to 5.5%, suggesting U.S.
consumers already facing a housing slump and soaring gasoline prices
now confront growing pressure from a weakening jobs market. Non-farm
payrolls decline by 49,000. Data should take financial-market
expectations of Fed rate hikes as soon as this fall off the table.
06/05/08 - US
Stocks Plunge As Unemployment, Oil Prices Rise -
Stocks fall as unemployment rates show the sharpest one-month
increase in 22 years last month along with a surge in oil prices.
Unemployment was broad-based, including manufacturing, construction,
retail trade and business. Dow drops nearly 230 points.
06/05/08 - Oil
Surges Above $134 As Dollar Weakens - Oil spikes to
$134 a barrel as the dollar continues to fall after the U.S.
unemployment rate posts its sharpest one-month increase in 22 years
in May. Meanwhile, demand concerns linger after the
IEA cautioned that global oil demand growth remains uncertain
amid a slowdown in some countries.
06/05/08 -
European Shares Close Lower - European stocks fall
due to the rising price of crude oil and dreadful unemployment
figures from the U.S. London sheds 1.5%, while Frankfurt slips 2%.
06/05/08 -
Morgan Stanley Sees Oil Driven To $150 By July 4
- Strong demand from Asia will cause a short-term
spike in oil prices to $150 a barrel by July 4, Morgan Stanley
analyst Ole Slorer says. Forecast echoes that made by Goldman Sachs
analyst Argun Murti, who says it is increasingly likely oil could
spike as high as $200.
06/05/08 -
Intel Faces Formal FTC Antitrust Probe – Federal Trade
Commission opens a formal investigation of Intel, amid deepening
antitrust woes for the world's largest computer chip maker. Rival
AMD has long been lobbying an FTC probe, saying Intel uses tactics
to thwart any competition.
06/05/08 - AIG
Investigated Over Swaps Accounting - SEC is
investigating whether insurer American International Group
overstated the value of contracts linked to subprime mortgages,
according to people familiar with the matter. AIG falls 3%.
06/05/08 - S&P
Says Many Entities At Risk Of Downgrade - Standard &
Poor's says the number of entities at risk of having their ratings
cut hit a new record in May as a "material slowdown" in housing and
consumer activity amid still-tightening lending conditions continue
to erode credit quality.
06/05/08 -
Kroszner Says Credit Remains Tight - Fed Governor
Kroszner says that while markets have perked up this spring season,
investors are still cautious about the economic outlook. Says Fed is
still learning lessons from the financial market turmoil.
06/04/08 - MBIA, Ambac Face Cut By
Moody's - Following months of debate about their AAA
ratings, Moody's says it will likely cut insurance-unit ratings of
MBIA and Ambac because of their credit profiles and constrained new
business prospects. Ambac falls 18%; MBIA sheds 17%.
06/04/08 -US Service Sector Slows As
Price Gains Alarm - ISM's non-manufacturing index moves to
51.7 in May amid fresh worries about inflation and hiring.
Separately, non-farm business productivity increases at a 2.6%
annualized rate in 1Q, while a report shows private sector jobs rose
by 40,000 in May.
06/04/08- RAM Re Loses AAA Rating From
S&P - Standard & Poor's pulls its highest rating from the
reinsurance operations of Ram Holdings, citing projected losses tied
to the meltdown in the subprime-mortgage markets. RAM Re is cut to
AA from AAA. Shares fall 3%.
06/03/08 - US Auto Woes Deepen; GM Sales
Tumble 28% - U.S. auto industry's slump deepens in May, as
sales of pickups and sport-utility vehicles fall amid another surge
in gasoline prices, with GM posting a 28% drop and Ford Motor a 16%
decrease. Toyota reports a 4.3% decline, though it is its closest
ever in eclipsing GM's monthly sales. Separately, GM announces
plans to close four North American plants, while outlining
efforts to introduce more fuel-efficient cars and engines.
06/03/08 - Lehman Says Cash Holdings Rise
As Rumors Swirl - Lehman Brothers shares close down nearly
10% as investors worry about dilution from a potential capital
increase, and as the firm disputes rumors that it had borrowed from
the Federal Reserve.
06/03/08 - US Stocks Fall; Lehman Revives
Credit Fears - Banks and lenders drag down U.S. stocks again
as fears about capital needs drive shares of Lehman Brothers to
levels not seen since the depths of the credit crisis. Dow Jones
Industrial Average falls 101 points.
06/03/08 - Bernanke Puts Strong Dollar On
Radar Screen - Fed Chairman Bernanke puts U.S. currency
squarely on the Fed's radar screen, saying its slide against other
currencies has led to an "unwelcome" rise in U.S. inflation and may
be a factor in inflation expectations.
06/03/08 - US Factory Orders Surge On
Higher Prices - U.S. factory goods orders surge in 1.1% in
April after rising 1.5% in March, but an analyst says higher prices
drove the surprisingly strong gain. Economists expected factory
goods to rise a mere 0.1%.
06/03/08 - Bankruptcies Climb Amid Credit
Squeeze, Declining Revenue - Depressed consumer spending and
the global credit crunch created a double-edged sword that drove
more than 5,000 businesses into bankruptcy in May, marking a 25%
increase since the start of the year.
06/03/08 - S&P Cuts Liz Claiborne To Junk
Status - Standard & Poor's cuts its debt ratings on Liz
Claiborne into junk status, citing the company's
weaker-than-expected credit measures and substantially higher
leverage. Company's relatively new business model a factor in
downgrade.
06/03/08 - Toll Brothers Posts Fiscal 2Q
Loss - Luxury-home builder turns to a loss amid continued
write-downs from housing crunch. Company also calls on Congress to
create tax incentives to spur home buying. Executives say Toll
expects as few as 4,800 home deliveries this year.
06/03/08 - S&P Cites Reassessment For
Ratings Cuts - A day after it rattled investors' confidence
with downgrades of three large investment banks, Standard & Poor's
tells analysts its ratings actions were driven by both a
reassessment of the companies as well as recent events.
06/02/08 - S&P Cuts Ratings On Lehman, Merrill, Morgan Stanley
- S&P cuts the counterparty credit ratings one notch at the trio of
investment banks amid what credit analyst Tanya Azarchs says
reflects "prospects of continued weakness in the investment banking
business and the potential for more write-offs." Lehman's stock
falls 7%; Merrill and Morgan Stanley are off 3%.
06/02/08 - US Stocks Fall Sharply On Financials, ISM Data
- U.S. stocks fall sharply with financial firms dragging on the
market following warnings from British lender Bradford & Bingley and
management changes for Wachovia and Washington Mutual. The Dow Jones
Industrial Average is down about 200 points. Also, ISM index shows
that U.S. manufacturing activity contracted in May, with price
pressures again intensifying.
06/02/08 - Wachovia Ousts CEO Thompson - Board ousts Chief Executive Ken Thompson, replacing him on an interim basis with Chairman Lanty Smith, nearly a month after Wachovia shifted Thompson out of the chairman role. Shares fall 3%.
06/02/08 - Oil Jumps As Natural Gas Spurs Heating Oil Rally
- Crude oil futures reverse its losses and climbs 1.1% toward $129 a
barrel, pulled higher by a rally in heating oil prices as the new
front-month July contract gets off to a strong start following last
week's losses by the expiring June contract.
06/02/08 - Bradford & Bingley Restructures Rights Issue - Shares in U.K. lender Bradford & Bingley slump 25% after it warns on its prospects for 2008 and confirms it has restructured its planned rights issue to include the sale of a 23% stake to U.S. investment firm TPG Capital.
05/29/08 - Sears Swings To Surprise 1Q Loss; Revenue Falls 5.8% - Department-store chain posts a net loss of $56 million, or 43¢ a share, compared with prior-year net income of $223 million. The quarters included per-share gains of 10¢ and 30¢, respectively. Revenue drops to $11.07 billion as its bet on an economic upswing fails to materialize. Wall Street expected EPS of 15¢ on $11.41 billion in revenue. Shares fall 3%.
05/29/08 - US 1Q GDP Growth Revised Up To 0.9% - Gross domestic product rises at a seasonally adjusted 0.9% annual rate from January through March, showing growth wasn't as weak as first thought because of a better trade balance and stronger business spending.
05/29/08 - US Bank Profits Plunge 45.7% in 1Q - FDIC reports banks reported net income of $19.3 billion for the first three months of 2008, with more than half of all FDIC-insured firms reporting lower profit as they continue to set aside billions to cover delinquent loans that grew across most categories.
05/29/08 -
GM Plans More Cost-Cutting Measures -
05/29/08 - 30-Year Fixed Mortgage At 11-Week High - Inflation jitters push the 30-year fixed-rate mortgage average to an 11-week high, says Freddie Mac. The 30-year fixed-rate mortgage average is 6.08% with an average 0.6 point for the week ending May 29, versus 6.42% a year earlier.
05/27/08 -
US Home Sales Climb, But Analysts Don't See Bottom
- New home
sales rise for first time in six months during April, but the level
of demand doesn't meet expectations and analysts don't see a bottom
yet. Sales increase 3.3% to a seasonally adjusted annual rate of
526,000. Meanwhile, a closely watched gauge of
05/27/08 - US Retail Gasoline Up 14.6¢ In Week - Energy Information Administration says the national average retail price of regular gasoline jumps 14.6 cents, or 3.9%, to a record $3.937 a gallon in week ended Monday, the Memorial Day start to the peak-demand driving season.
05/23/08 - US April Existing Home Sales Fall 1% - Home resales fall to a 4.89 million annual rate, a 1.0% decrease from March's revised 4.94 million annual pace. The April resales level is slightly above Wall Street expectations of a 4.86 million sales rate. The median home price is $202,300 in April, down 8.0% from $219,900 in April 2007.
05/23/08 - Oil Back Above $133 On Supply Concerns - Crude oil futures rise more than $2 a barrel as traders take advantage of yesterday's dip and begin squaring away their positions ahead of a three-day weekend in the U.S., as well as a public holiday in the U.K.
05/23/08 - Pimco's Chief Piles Into Mortgage Debt - Bill Gross, the manager of the world's biggest bond fund, switches gears to make a big bet on mortgage debt, almost tripling his holding of it to more than 60% of the fund, the Financial Times reports.
05/23/08 - Fannie, Freddie Bulk Up Investment Portfolio - Mortgage giants commit to add $74.2 billion of mortgage bonds to investment portfolios in April, a clear indication that these agencies plan to spend at least a sizable chunk of their additional capital in buying mortgage-backed securities.
05/23/08 - Dell Raised, Sun Micro Cut By Morgan Stanley - Dell hiked to overweight from equal-weight; while it cuts Sun Microsystems to underweight from equal-weight as analysts say accelerated volume growth at low-end of the server market isn't priced into stocks. Dell up 2%; Sun slips 4%.
05/23/08 - Number Of Defaults Already Exceed 2007 Total - Number of defaults in the global bond market so far in 2008 has already exceeded the total number which occurred during the whole of 2007, a sign that the global economic downturn is starting to bite, ratings agency Standard & Poor's.
05/22/08 - Ford Scraps '09 Profit Expectation; Trims Output - Auto maker, responding to troubling U.S. sales trends and high commodity prices, no longer believes that it will be profitable in 2009 and will instead post break-even results for the year as it reduces production of more profitable SUVs and trucks and boosts output of lower margin automobiles. Shares fall 8%.
05/22/08 -
US Home Prices Fall 1.7% In 1Q -
05/22/08 - Oil Reaches $135 A Barrel On Supply Uncertainty - Oil futures reach a new intraday record price of $135.09 before turning lower as the IEA is in the process of lowering its forecast for long-term world oil supply. Nymex crude is now trading down nearly $2 at around $131 a barrel, but is up 39% so far yr to date.
05/22/08 - US Stocks Tick Up After Big Declines - After showing serious cracks in the previous two days, the stock market enjoys a slight resurgence as investors welcome an unexpected drop in unemployment claims and a break from crude oil's record run.
05/22/08 - Moody's Drops Again As Ratings Error Probed - Shares in the ratings agency plunge 9% as the firm struggles with the fallout of a report that a computer error led to higher-than-justified ratings on complex securities that Moody's later failed to adjust.
05/22/08 -
Non-OPEC Output Decline Cited For Prices - Falling production in
non-OPEC countries such as
05/22/08 - Home-Loan Delinquencies Rise In April - Standard & Poor's says delinquencies of home-related loans continue to climb in April, as the ratings agency says the 2007 issuance year continues to be the worst-performing vintage in terms of cumulative losses.
05/21/08 - FOMC Minutes Signal No More Rate Cuts - Federal Reserve appears to shut the door to the possibility of further interest rate cuts, saying in April meeting minutes that the last rate cut was a "close call," and that many officials think future reductions are unlikely even if the economy contracts. Officials also say that while the chances that the economy might be "severely disrupted" had lessened, risks remain skewed to the downside from "bleak" housing and weak labor markets.
05/21/08 - Oil Surges To Top $133 A Barrel - Nymex crude pushes to a record above $133 a barrel after government data show U.S. crude stockpiles slumped by 5.3 million barrels versus an expected build of 500,000. Brent crude, gasoline and heating oil prices also hit records.
05/21/08 - US Stocks Plunge On Fed Minutes, Oil
- Losses mount for
05/21/08 -
Economist Says US Must Address Housing Woes - Warning that the
effects of continually declining home values could be severe,
05/20/08 - US Stocks Slide On Inflation Data, Oil - Profit declines for Home Depot and Target damp consumer stocks, while increased inflationary concerns drive financials and the rest of the market lower. The Dow Jones Industrial Average slides about 200 points.
05/20/08 - Oil Settles At Record Above $129 A Barrel - Crude and petroleum products settle at fresh highs ahead of tomorrow's supply data. A market realignment suggests entrenched higher long-term prices and oilman T. Boone Pickens says he expects prices to continue to rise, perhaps to $150 barrel this year.
05/20/08 - Home Depot Net Drops, Sees More Risk -Home-improvement retailer's CEO sees "more risks than opportunities" through 2008 amid "relatively weak demand" for its core, non-seasonal products. Home Depot posts 1Q net income of $356 million, or 21¢ a share. Shares fall 5%.
05/20/08 -
US April Core Inflation Rise Causes Worry -
05/20/08 - Business, First-Class Air Travel Falls - Number of people flying business or first class globally fell sharply in March, according to International Air Transport Association. Premium traffic fell 3.9% in March compared with a year ago, the largest monthly drop since 2003.
05/20/08 - Greenspan Sees Commodity Fundamentals - Former Fed chairman says the rapid rise in world oil and food prices is in part the result of speculation in international financial markets but also based on fundamental factors, such as a greater demand for protein rich foods in the developing world.
05/20/08 - Target 1Q Net Dips 7.5%, Closes Receivables Deal - Retailer reports a 7.5% drop in net income to $602 million, or 74¢ a share, and closes its credit-card deal with JPMorgan Chase as it sees softer-than-expected sales amid a tough retail environment. Analysts expected EPS of 71¢.
05/20/08 - Home Depot, Citigroup Tighten Card Terms - Home Depot and Citigroup have tightened lending standards and raised interest rates for some users of their co-branded credit card as rising late payments and defaults pinch the home-improvement retailer's profits, CFO Carol Tome says.
05/20/08 - Dimon Says Bear Stearns Purchase 'Very Risky' - In brief remarks to shareholders at JPMorgan's annual meeting, Chief Executive Jamie Dimon reiterates his mantra that his bank's pending purchase of Bear Stearns will be very complicated and is far from complete.
05/14/08 - Freddie Mac Posts 1Q Loss, To Raise $5.5B In Capital - Mortgage giant posts third-straight quarterly loss and says it would raise another $5.5 billion in capital by selling stock, as it continues to expand despite mounting mortgage delinquencies. Upon completion of its capital-raising efforts, its regulator will lower the excess-capital cushion on Freddie to 15% from 20%, with another cut to 10% after other steps are taken. Freddie says it won't cut dividend. Shares rise 5%.
05/14/08 -
Slowing US Economy Eases Pressure On Inflation -
05/14/08 - Morgan Stanley Lays Off Senior Analysts - Investment bank says it will eliminate another 1,500 jobs throughout the company, bringing the total number of cuts since last June to 4,500, or just under 10% of the company's 47,000 employees.
05/14/08 - JPMorgan Sees $9B In 2Q Charges - JPMorgan boosts the projected charges it will record as part of its Bear Stearns acquisition to $9 billion, plus or minus $1 billion. Impact will be offset by the capital on the brokerage's balance sheet, which stood at $11.5 billion Feb. 29.
05/14/08 -
Greenspan Sees Housing's Bottom Next Year -
Former Fed Chairman Alan Greenspan says
05/14/08 - US Foreclosure Filings Continue To Surge - Foreclosure filings for April jump 65% from a year earlier and 4% from March, as credit woes and tumbling home values hit homeowners. The foreclosure filings on 243,353 properties last month is the highest since RealtyTrac began issuing its reports in January 2005. \
05/14/08 - US Mortgage Applications Rise 2.9% - Mortgage application filings rise 2.9% last week from the prior week, driven by increased interest among homeowners seeking refinancings. Applications to buy homes dips 0.7% on a week-to-week basis, while refinancing applications rise 6.5%.
05/13/08 - Bernanke Sees Better Market Conditions - Fed chairman says recent liquidity measures have led to improved market conditions, but warns that conditions "are still far from normal" and pledges to increase the size of the Fed's term auction facility if needed.
05/13/08 - Fresh Ratings Battle For MBIA, Ambac - Bond insurers MBIA and Ambac Financial get back in the hot seat as Moody's Investors Service says mounting losses are raising fresh questions about whether they deserve their key AAA insurer ratings.
05/13/08 - US Stocks Down As Wal-Mart, HP Decline - Investors weigh merits of a newly signed acquisition by Hewlett-Packard and look at new developments in one that had been on life support -- Microsoft's offer for Yahoo. Meanwhile Wal-Mart gives a more sobering outlook.
05/13/08 -
Retail Sales Suggest US Avoiding Recession -
05/13/08 - Electronic Arts 4Q Loss Widens - Videogame publisher loses $94 million, or 30¢ a share, while revenue surges 84% to $1.13 billion. Executives expect profit for first half of fiscal 2009 to be "significantly lower than current consensus expectations." Shares fall 3% late.
05/13/08 - Applied Materials 2Q Net Falls 26% - Chip making equipment manufacturer posts net income of $302.5 million, or 22¢ a share. Adjusted EPS comes to 26¢. Revenue falls 15% to $2.15 billion. Analysts expected EPS of 22¢ on revenue of $2.13 billion.
05/13/08 –Toll Brothers Sees No End To Downturn - CEO Robert Toll says the housing market is improving in some areas of the country though "there is no indication that the end [of the downturn] is in sight." Earlier, Toll Brothers reported a 30% drop in home-building revenue.
05/13/08 -
Oil Prices Rise On Heating Oil Surge - Nymex crude surges to a
new intraday record of $126.98 a barrel following a spike in heating
oil and concerns about Iranian output. Heating oil prices are
skyrocketing thanks to strong demand from Europe and
05/13/08 –Morgan Stanley CFO Sees Market Stress Ahead - CFO Colm Kelleher says it will take "at least several more quarters" to remove uncertainty about further credit losses, asset sales and loan extensions to clients. "It is unclear to us what is going to lie ahead," he tells investors.
05/05/08 - Yahoo Falls 21% After Microsoft Ends Bid - Yahoo shares plunge 21% in pre-market trading, removing about $8.7 billion in market value, as Wall Street resets the Internet company's worth after Microsoft withdraws its acquisition offer. Microsoft shares rise 5% as many analysts said the software giant was prudent in not raising its offer further.
05/05/08 -
US Futures Slip As Microsoft Pulls Yahoo Offer -
05/05/08 - Wall Street, Lenders Face Subprime Scrutiny - Federal prosecutors step up scrutiny of players in the subprime-mortgage crisis, with a focus on Wall Street firms and mortgage lenders. Group will look into potential crimes ranging from mortgage fraud by brokers to securities fraud, insider trading and accounting fraud.
04/24/08 –
US Factory Downturn Deepens - Demand for big-ticket items in the
04/24/08 –
US New Home Sales Slide To 17-Year Low -
04/24/08 - Microsoft Net Slips 11% After EU Fine - Microsoft fiscal 3Q earnings slip to $4.39 billion, or 47¢ a share, on a charge related to a European Commission fine and lower sales in its two biggest divisions. Sales are flat at $14.45 billion. Earnings from its client division, which makes its Windows operating system, fell 26%, and its business division, which includes Office software, sees a 7.7% profit decline. Shares fall 4% following the report.
04/24/08 -
American Express 1Q Net Down 6% -Net income falls 6% to $991
million, or 85¢ a share, as the company, which is facing a souring
04/23/08 – Ambac Posts Loss On CDO, Investment Losses - Bond insurer loses $1.66 billion, or $11.69 a share, in 1Q on another $1.73 billion in collateralized-debt-obligation losses and $1.04 billion in loss provisions as returns continue to be weighed down by the credit crunch. Shares drop 19%.
04/23/08 – Weekly Mortgage Applications Fell 14.2% - Mortgage Bankers Association says mortgage applications filed last week decreased a seasonally adjusted 14.2% from the week before and the volume of applications was down 3.2% from the same week in 2007.
04/23/08 -
Starbucks Cuts Views, Citing Weak Economy - Coffee retailer
projects lower fiscal 2Q profit and cuts its FY-earnings forecast
citing "the sharp weakness in the
04/23/08 -
Sam's Club Says Limiting Customer Rice Purchases
- Membership
warehouse division of Wal-Mart Stores is limiting how much rice
04/23/08 - Another Form Of Risky Debt Haunts Banks - Banks have minimized exposure to high-risk corporate debt by hacking away at the once overwhelming backlog of leveraged buyout debt. Yet just recently, other struggling companies have started to turn to their lines of credit for help, leaving banks exposed to junk debt in another - perhaps even riskier - form.
04/22/08 – Oil Hits Record $119 On Supply Woes, Dollar Weakness - Nymex crude rises above $119 a barrel on continued supply threats in Nigeria, a potential strike by workers at the 196,000 barrel-a-day Grangemouth refinery in the U.K., and the dollar's struggles against the euro.
04/22/08 – US Stocks Down As High Oil Hits Airlines - With oil prices setting more record highs and another major bank confirming a capital infusion, consumer, financial and especially airline stocks help drag the market lower.
04/22/08 –
RBS To Sell $24B In Stock To Raise Capital
- Royal Bank of
04/22/08 – Richmond Fed Output Activity Contracts
- The Federal Reserve
Bank of
04/22/08 - US Used-Home Sales Fall 2% In March - Existing-home sales decline to a 4.93 million annual rate, a 2.0% decrease from February's unrevised 5.03 million annual pace. Result is in line with expectations. The median home price drops 7.7% to $200,700 from a year ago.
04/22/08 - Morgan Stanley Lowers Upfront Signing Pay - Morgan Stanley, a key participant in arms race to sign top-producing financial advisors, has signaled it wants to cool the race down a bit. Top recruits will now receive 120% of their prior year's production, down from 140% previously.
04/18/08 - Citi's Write-Downs Drive Loss, Sees 9K More Job Cuts - Bank reports a 1Q net loss of $5.11 billion, or $1.02 a share, and says it plans to cut 9,000 more jobs in the 2Q. Results include more than $13 billion in write-downs and credit costs on subprime-related exposures, leveraged loans, Alt-A mortgages and commercial real estate. Revenue plunges 48% to $13.22 billion, which beats the expected figure of $12.77 billion. Fitch cuts bank's credit rating one notch to AA-. Shares gain 9% in pre-market trading.
04/18/08 - 3-Month Dollar Libor Continues To Jump - The closely-watched three-month U.S. dollar London Interbank Offered Rate climbs nine basis points to 2.9075%, hitting its highest level in almost six weeks. The rate has now risen 17.4 basis points over the past two days on concerns that banks may have given misleadingly low quotes for the rates.
04/18/08 -
Capital One 1Q Net Down 19% -Net income falls to $548.5 million,
or $1.47 a share, on pressures in company's
04/18/08 - AT&T plans to cut 4,600 jobs mostly at management level -
04/15/08 - JPMorgan 1Q Net Cut In Half On Markdowns, Beats Street - Bank's net income falls to $2.37 billion, or 68¢ a share, as its total revenue falls 9% to $17.9 billion. Wall Street expected earnings of 64¢ a share on revenue of $17.4 billion. Bank adds $2.5 billion to its allowance for credit losses, and says its investment banking unit marked down $2.6 billion of assets. Firm sees difficult market conditions continuing. Shares gain 2% early.
04/15/08 -
US Housing Starts Slide 11.9% - Housing starts drop to a 947,000
annual rate in March, the lowest since March 1991, after falling a
revised 0.7% in February to 1.075 million. Economists expected a
6.1% drop. Building permits drop 5.8% to a 927,000 annual rate.
04/15/08 -
US CPI Up 0.3% In March On Oil Prices -
04/16/08 - Wells Fargo 1Q Net Falls 11% On Credit Losses - Bank posts net income of $2 billion, or 60¢ a share, as it reports $326 million in mortgage-related write-downs and nearly triples its credit-loss provision. Analysts expected EPS of 57¢. Shares gain 6% in pre-market trading.
Summers Says US Is Likely In Recession - Former Treasury Secretary Lawrence Summers says the U.S. economy is likely contracting and that "there is a very large amount of pain left to be felt" in the real economy.
Citigroup Deal Signals Private Equity Risk - Plans by several private equity companies to take on some $12 billion of Citigroup's debt portfolio forms part of a growing trend among banks aimed at clearing a leveraged loan logjam, but it may prove to be a risky business say experts.
Credit Risk in
Residential = 5-Trillion Debt-> ABX index = subprime debt & CMBX = Commercial fixed rate pooled mortgage
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| Royal Bank of Scotland (RBC) – issues a global stock and credit alert Royal Bank of Scotland (RBC) – issues a global stock and credit alert. More | |
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