MARKET UPDATE
Equities are on hold ahead of the unemployment and non-farm payrolls data, although oil is trading higher and close to $80 per barrel again. DJIA and S&P futures are directionless ahead of the key jobs data. INTERNATIONAL MARKETS: Nikkei +0.7%; Hang Seng +1.6%; Shanghai +0.3%; FTSE +0.2%; CAC and DAX directionless.
ECONOMIC & MACRO EVENTS
These are today’s top economic data:
8:30 AM EST Unemployment
8:30 AM EST Non-farm payrolls
10:00 AM EST Wholesale Trade
3:00 PM EST Consumer Credit
Major earnings reports are due from AIG, BAM, BX, EIX, FIG, MIR, NVAX, SNI, SU. Berkshire Hathaway (BRK-A) may also be on deck.
ANALYST UPGRADES & DOWNGRADES
Amazon.com (NASDAQ: AMZN) Raised to Outperform at Bernstein and target raised from $125 to $160.
Peet's Coffee & Tea (PEET) Started as Buy at Janney.
Cardinal Health (CAH) Cut to Hold at Jefferies.
BULLISH EVENTS
AIG (AIG) is trading lower this morning because of the complexity. But operating earnings on an adjusted basis came to $2.85 EPS. Obviously there is a loss and trouble on items and ongoing issues.
NVIDIA (NVDA) provided very positive earnings. The graphics chipset maker had a 74% profit gain over last year and made $107.6 million in profit. It has also raised guidance. Shares are indicated up about 4% or 5%.
Public Storage (PSA) is showing that hard times are not killing the business of mini-warehouses for Americans to store their stuff in. The storage facility giant posted FFO of $1.44 (same as earnings per share for REITs and property players). Estimates were $1.25. Revenue does look light though, which may take out some of the "bullish stance" as a 5% drop came to $352 million.
Fortress Investment Group LLC (NYSE: FIG), trhe hedge fund operation, has beat earnings after it posted Q3 EPS of $0.11 vs. $0.09 estimates. Revenue was off by 22% to about $144M vs. $123M estimates. (PR)
Starbucks (NASDAQ:SBUX) posted good earnings as revenue for the quarter was $2.4 billion compared to $2.5 billion in the same quarter. For the period, EPS was $.20 compared to $.01 last year.
BEARISH EVENTS
Fannie Mae (NYSE:FNM) recorded a net loss of $18.9 billion for the third quarter of 2009. Including $883 million in dividends on the senior preferred stock, the net loss attributable to common stockholders was $19.8 billion, or $3.47 per diluted share. The company is also waiting on $15 billion more per an FHFA request to the government. Freddie Mac (NYSE: FRE) is a step-brother trade only.
Wal-Mart (NYSE:WMT) has started to offer DVDs which are likely to be hot sellers for only $9.99. This is just another price war with broad implications on top of its books and other recent moves.
Suncor Energy (NYSE: SU) missed its earnings expectations. The company reported Q3 EPS of $0.23, short of the $0.29 estimate.
Citigroup (NYSE: C) was believed to be getting de-leveraged. Yet the public is going to love reading that the tax dollars are allowing the troubled banking unit to rekindle many hedge fund operations. </Summary>
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