On the whole week, the Dow falls about 2.5%. The Nasdaq meanwhile fell 5% over the last five sessions!
The U.S. Commerce Department announced this Friday to September 2009, actual spending of U.S. consumers, adjusted for inflation, declining at a rate of seasonally adjusted 0.6% after an increase of 1% on prior month. The real disposable incomes fell 0.1%, posting a 4th consecutive decline. The nominal consumer spending fell 0.5% in September, in line with consensus, while nominal incomes were flat. The personal savings rate rose to 3.3% of disposable income, against 2.8% in August 2009.
The index of U.S. consumer sentiment released today by the University of Michigan and Reuters has improved late October 2009, to 70.6 against 69.4 earlier this month. In September, the index was 73.5. Americans remain worried about their personal finances. Confidence Index released today was little more than the consensus of economists. The study reported for U.S. consumers to reduce their debt and increase their savings, leaving fear an impact on consumption. The sub-index representing consumer expectations fell to 68.6 in October, against 73.5 the previous month. The indicator of the current situation rose from 73.4 to 73.7.
The index of manufacturing activity in the Chicago area climbed to 54.2 in October 2009, against 46.1 in September, said today the regional branch of the Fed. The study thus shows a return to the expansion of manufacturing in the area since the index exceeds the threshold of 50%. The output (63.9) and new orders (61.4) have risen sharply from September to October. Both indices were below 50 the previous month. Note however that the initial reading of September for the overall index was 52.6. Finally, note that under-employment index for October fell to 38.3, against 38.8 in September.
While the U.S. unemployment rate continues to climb and is now approaching 10% according to official government statistics, a report by the Obama administration will probably cringe some Americans. Indeed, the White House, far from these sad realities, said that his economic stimulus program has created or saved at least 650,000 jobs. And that measure is based on the impact of $ 150 billion spent on the $ 339 billion of the American Recovery and Reinvestment Act. According to the U.S. administration, the current level is in fact one million jobs created at this point. The findings come from information collected from states, local governments and private companies. Better yet, the administration economist Jared Bernstein thinks the government is well on track to create or save 3.5 million jobs through the stimulus package totaling $ 787 billion.
VALUES OF THE DAY
MetLife (NYSE: MET - news) (-7%) said yesterday its quarterly results. In Q3, the Group posted a net loss of $ 650 million, or $ 0.79 per share, against a profit of $ 600 million ($ 0.83 per share) in Q3 2008. These results include the result of investment losses of $ 1.4 billion. Operating income is still $ 718 million or $ 0.87 per share, against $ 608 million ($ 0.84 per share) a year before. Revenues stand at 12.41 billion dollars, against $ 12.57 billion a year earlier.
Hertz (-2%), New Jersey firm active in the rental car, said last night his accounts of the 3rd quarter 2009. The global revenues reach $ 2 billion, declining by 15.7% yoy and 13.4% at constant currencies. Adjusted earnings before tax totaled $ 195.3 million, an increase of 15.5% yoy. GAAP earnings before tax amounted to $ 75.8 million, up ... 189%, against 26.2 million last year over the same period. The quarterly EBITDA increased 0.4% to $ 388.1 million. Adjusted earnings rose to $ 124.5 million after tax, up 17.5%, while adjusted EPS was 31 cents against 33 cents. GAAP net income is finally revealed to 64.5 million and 15 cents a share, against $ 17.7 million and 5 cents per share a year earlier.
Constellation Energy (NYSE: CEG - news) (-1%) has published this Friday, under its 3rd fiscal quarter net income of $ 137.6 million and 69 cents a share, against a loss of 225.7 million $ and $ 1.37 per share over the same period last year. The adjusted EPS came out about him at $ 1.23 against 76 cents a year earlier and $ 1.06 consensus space. Quarterly revenues stood at $ 4 billion, against $ 5.3 billion last year. The management was satisfied in operating results, considered strong, and finds indications of stabilization of the electricity demand in some markets. Constellation take this opportunity to increase its guidance for 2009 EPS of 15 cents, in the range from 3.25 to $ 3.45. The Group confirms its 2010 forecast. Constellation also said it continues to work towards finalizing its joint venture agreement with EDF (Paris: FR0010242511 - news).
Coventry Health (-5%) unveiled today a 3rd quarter profit down 17% to $ 70.6 million and 48 cents per track. Excluding the impact of the sale of First Health Services, which resulted in a charge of 18 cents per share, EPS was 66 cents, on revenue growth of 18% to $ 3.44 billion. The Group is now an annual adjusted EPS ranging from 2.01 to $ 2.03, against earlier guidance lodged between 1.85 and $ 1.95.
Aon (NYSE: AOC - news) (-6%), insurance broker, announced Friday a net profit of the 3rd quarter increased slightly by 3% yoy, to $ 120 million and 41 cents a share, against 117 million and 40 cents per share last year. Revenues totaled $ 1.81 billion, down 2%. The adjusted EPS fell to 65 cents against 69 cents. If the brokerage margins have improved, falling by two thirds of profits of investments weighed. BPA remains consistent with the consensus. Revenues were slightly below expectations.
Amerigroup (-3%) unveiled on Friday a net profit declined by 41% in Q3 to $ 22.5 million and 43 cents a share, against $ 37.9 million and 71 cents per share last year. Revenues increased however from 19% to $ 1.3 billion. The Group explained that the fall in profits reflects the high medical costs associated viruses including H1N1 and generally the flu season. The consensus was 47 cents EPS on $ 1.32 billion of revenue. Earlier this month, Amerigroup had withdrawn its annual forecast.
ITT (-7%) has announced its fiscal Q3 earnings back to $ 59 million and 32 cents a share, against $ 216.3 million and $ 1.17 per share last year. Quarterly revenues of U.S. industrial firm in White Plains declined to $ 2.7 billion, against $ 2.9 billion. The adjusted EPS came out to $ 1.03 on continuing operations, well above the consensus. ITT enhances its annual forecast between 3.70 and EPS of $ 3.74 excluding items, $ cons 3,50-3,70 previously.
Calpine (4%) has announced its 3rd quarter net income of $ 238 million and 49 cents a share, against $ 136 million profit and 28 cents EPS one year earlier. Excluding items, earnings would have been $ 196 million, against $ 279 million last year. Quarterly revenues were down for their $ 1.85 billion, against $ 3.19 billion a year earlier. The Houston energy firm provides an adjusted EBITDA ranging from 1.71 to 1.735 billion $ for this year and 1.5 to $ 1.6 billion next year.
Duke Energy (NYSE: DUK - news) (-2%) posted the 3rd quarter net income declined to $ 109 million and 8 cents a share, against $ 215 million and 17 cents per share last year. Adjusted EPS was 40 cents, slightly above consensus. Costs of non-cash impairment of approximately $ 400 million, however, sealed the consolidated net earnings. Revenues declined to $ 3.4 billion, against $ 3.5 billion a year earlier, with lower sales of electricity in a difficult economic environment.
Estée Lauder (3%), the giant New York-based beauty products, on Friday issued a profit of 1st quarter fiscal 2010 found "solid", highlighting the progress of its strategic initiatives and cost discipline. Estée the opportunity to raise its annual estimates. In the quarter ended September 2009, the Group achieved sales of $ 1.83 billion, down 4% compared to last year. Excluding currency effects, sales declined slightly. Net income, including restructuring charges of activities, showed $ 140.7 million against $ 51.1 million last year. The diluted EPS has accounted for 71 cents against 26 cents a year earlier. In addition to restructuring, profit was $ 168 million on a diluted EPS of 85 cents. The Group has also directed $ 48 million savings during the quarter, thanks to its ongoing initiatives and as part of long-term plans. While the fiscal year began on a solid pace, management confirms its confidence in the business despite the economic uncertainties, and raised its guidance for earnings per share for the year between 1.95 and $ 2.10.
Chevron (NYSE: CVX - news) (-2%), the oil giant from San Ramon, California, has posted the 3rd quarter net earnings of $ 3.83 billion, declining 51% YoY, cons 7 , $ 89 billion last year. Profits in the upstream were $ 3.64 billion, down 41% compared to last year, with the erosion of prices of crude and natural gas. The results from downstream were $ 194 million, in sharp decrease of 89% with the decline in refining margins. Diluted EPS for the quarter was $ 1.92, against $ 3.85 last year. Note also that the net ended the quarter included approximately $ 400 million of gains on asset sales and tax items. For cons, the currency effect reduced the quarterly profits of $ 170 million, boosted after $ 303 million of the results of Q3 2008. Revenues for the 3rd quarter of 2009 accounted for $ 45 billion, against $ 76 billion a year earlier.
CIT Group (-24%). While the chances of survival of the fragile American leader of the financing of small and medium enterprises appear thin, Goldman Sachs (NYSE: GS - news) will reduce the amount of its emergency loan of 875 million to $ 2.125 billion $ now . CIT paid $ 285 million commission to reduce the loan, according to information provided to the SEC. The restructuring of debt of the U.S. firm, opened on October 1, expired last night. The firm had proposed to its shareholders two options: an exchange of debt cons of new shares and bonds, avoiding bankruptcy, or the approval of a plan of reorganization ordered under protection of Chapter 11 of the Act bankruptcy. CIT said Wednesday it had obtained a secured credit facility additional 4.5 billion dollars. The new installment of $ 4.5 billion, which is set to expire in January 2012, was provided by a diverse group of creditors, including several current bond Society. The Company also announced that "balloting Financial Group has begun counting votes cast on more than 150,000 ballots that were distributed to bondholders and other holders of debt related to the restructuring plan proposed by the company. CIT Group has also reported tonight to have reached an agreement with activist investor Carl Icahn as part of its restructuring plan, and will thus receive a credit line of $ 1 billion from the fund Icahn Capital LP by 31 December 2009. This amount may also be paid to bondholders if the group is placed in bankruptcy.
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