MARKET UPDATE
Equities are trying to recapture some of the huge losses from Friday. DJIA futures are up by +0.5% and S&P500 futures are up by +0.6%. Asia was lower on the majors and mixed elsewhere. European markets were all higher: FTSE +0.6%; CAC +0.5%; DAX +0.1%.
ECONOMIC & MACRO EVENTS
These are today’s top economic data:
10:00 AM EST ISM Manufacturing Index
10:00 AM EST Construction Spending
10:00 AM EST Pending Home Sales
10:00 AM EST President's Economic Recovery Advisory Board meets over teh economy, real estate, and on compensation.
Treasury Secretary Geithner answers questions at the Economic Club at 8:40, but is also scheduled to testify at a House Financial Services committee later in the morning.
Major earnings reports are due from APC, AXS, CAR, CHK, CLX, DF, F, FST, HL, HUM, KGC, L, MNKD, PFG, RSG, SM, SYY, and VMC.
ANALYST UPGRADES & DOWNGRADES
Incyte (INCY) Started as Outperform at Leerink Swann.
Motorola (MOT) Raised to Buy at Citigroup.
Comcast (CMCSA) Cut to Hold at Kaufman Bros.
Office Depot (ODP) Cut to Underperform at Credit Suisse.
BULLISH EVENTS
Human Genome Sciences, Inc. (HGSI) is trading yup about 30% after reporting that its second round of Phase II data showed that the Benlysta lupus drug was very effective at higher doses. The lower doses did not show as much improvement, although this is due to the notion that there have been no real lupus treatments in years and years.
Humana (HUM) beat earnings estimates this morning with $1.78 EPS vs. $1.77 estimates. The profit gain was up 65% on the gain in membership from Medicare Advantage.
Vertex Pharma (VRTX) is trading higher this morning as its twice/daily hepatitis C drug was just as effective as the three-times daily drug study. There was a lso a lower drop-out rate in the twice-daily study.
Ford Motor (F) made $1 billion in the third quarter. The only non-bailout auto maker in the U.S. reported net income of $997 million, or $.28 per share, an improvement of $1.2 billion from the third quarter of 2008. Pre-tax operating profit totaled $1.1 billion, an improvement of $3.9 billion from a year ago.
Sony (NYSE: SNE) has been showing disappointing numbers, but its best chance for a blockbuster film in the current quarter is the Michael Jackson film “This Is It.” Global ticket sales went above $100 million worldwide for the first five days after release.
BEARISH EVENTS
CIT Group (CIT) shares are down 50% and could be much worse. The troubled financial lender did file for a pre-packaged bankruptcy reorganization. This will help the company, but usually Joe Public and the common shareholder get zilch in these.
Dean Foods (DF) beat earnings this morning with earnings at $0.34 EPS vs $0.33 estimates. BUt revenues were down 13% to $2.77 billion and under the $2.94 billion estimates.
Apple (AAPL) has some disappointing news from Chine. The WSJ reported that iPhone sales in China may be slow, at least compared to those in the US. Among the reasons are a retail price that can be over $1,000 and the fact that two million iPhones has already been sold through unauthorized dealers.
Cardionet (BEAT) reported that its main monitoring medical device, of which it and other manufacturers have about 400,000 outstanding, did not receive a reimbursement rate and code from Medicare.
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