MARKET UPDATE
Equities are mixed this morning in what feels like a directionless day. DJIA and S&P futures are basically flat. European markets were up with the FTSE and DAX up 0.3% and the CAC up almost 0.4%. Asia listed lower with the NIKKEI down 1.5% and Hong Kong down 1.9%.
ECONOMIC & MACRO EVENTS
These are today’s top economic data:
Conference Board Consumer Confidence Index at 10:00 AM EST;
Treasury's Geithner speaks at 4:00 PM EST;
API Weekly Oil Inventory at 4:30 PM EST;
Major earnings reports are due this morning from AGCO, AKS, AMTD, BEN, BJS, BP, BYD, ELNK, FPL, GIGM, IACI, ICON, LLL, TXT, VLO, WYNN, X; and this evening's top earnings are ACE, AMKR, APOL, BXP, CBI, DWA, ERTS, ETFC, FISV, MCK, MEE, MOLX, PNRA, PPDI, V, VCLK.
ANALYST UPGRADES & DOWNGRADES
Corinthian Colleges (NASDAQ: COCO) Started as Buy at Deutsche Bank.
Texas Instruments (NYSE: TXN) Raised to Outperform at FBR Capital Markets.
Verizon Communications (NYSE: VZ) Raised to Outperform at Wells Fargo.
Spectra Energy (NYSE: SE) Cut to Sell at Citigroup.
Willis Group (NYSE: WSH) Cut to Market Perform at KBW.
BULLISH EVENTS
Google (GOOG) has now launched a tool to allow users to find postings from their friends as part of a Web search. This is deemed as part of a move in the battle among Internet companies over social media and blog postings.
Bank of New York Mellon (NYSE: BK) is now out seeking merger and acquisition opportunities in Europe. This was disclosed by CEO Robert Kelly as he believes that there are more opportunities than there are elsewhere as many of the institutions need restructuring.
Willis Group Holdings Ltd. (WSH) is one of the world's largest insurance brokers for industry, transport, and assets. Its third-quarter profit rose over 100% due to an acquisition and the insurance and reinsurance player came in above consensus estimates.
BP plc (NYSE: BP), the parent of British Petroleum, posted a 34% profit drop down to about $5.3 billion. This compares to $8 billion in profit a year ago when oil was through the roof and compares to $4.4 billion in Q2. This was also ahead of estimates.
LDK Solar (NYSE: LDK) is trading higher after the solar wafer maker raised guidance to third-quarter revenue of $270 to $290 million and for wafer shipments to between 310 to 330 MW. LDK had offered previous guidance of $240 to $270 million and wafer shipments of 260 to 300 MW.
BEARISH EVENTS
Baidu.com (NASDAQ: BIDU) Q3 earnings looked good on the surface at $2.16 EPS vs. $1.85 estimates as revenues rose 39% to $187 million vs. $188 million expected. The company said that new technology was causing a lower outlook to revenue of $174 to $180 million vs. $203 million expected. Shares fell by 10% in after-hours trading and the stock looks even lower than that. Shares closed at $432.97 and are indicated down under $375.00 in the early-bird pre-8:00 AM session.
W.R. Berkley (WRB) swung to a third-quarter profit yesterday on improved investment results and higher investment income. The company noted that the insurance cycle has not turned, but pricing on renewal business was down less than 0.5% and premium volume slid less than 3%. The company also noted that new business from start-ups is partly offsetting premium declines elsewhere.
DryShips Inc. (NASDAQ: DRYS) reported earnings at $74.9 million, or $0.27 EPS, outside of interest rate swap charges. The combined revenues from drilling and drybulk operations was down nearly $100 million from a year ago to $228.2 million. Thomson Reuters had estimates pegged at $0.20 EPS and $215.55 million in revenues. The report was mixed enough on some metrics that this could have traded either way and there is no clear direction in the pre-8:00 AM session.
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Zoran Corp. (NASDAQ: ZRAN) fell almost 10% last night after the chip-maker said it expects to lose between -$0.06 to -$0.14 EPS and will do no better than break-even outside of special items. It also sees revenues of $91 to $95 million versus Thomson Reuters estimates of $0.01 EPS and $100.8 million in revenues.
Winn-Dixie Stores Inc. (WINN) seems to be in a tough spot despite being a lower cost provider on groceries. It reported a loss of $8.1 million or -$0.15 EPS after an impairment charge of $0.06 off of its EPS data. The grocer lost -$0.04 in the same quarter a year ago. Volume is fairly thin in after-hours and pre-market trading, but this one may have been down as much as 10% in the after-hours session.
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