Reports » US

US stock market opening report (November 20, 2009, Friday)

Contributed by Paddy Power Trader

By Paddy Power Trader

Fed’s Plosser said that it is not quite time for the Fed to raise interest rates, adding that will have a much better sense of US economy’s path going into next year and middle of 2010. Plosser also said that he has grown more confident in economy’s recovery and is less concerned about a double-dip recession risk. (CNBC) Also, Fed’s Fisher said that it is some time before unemployment falls below 10% and Q3 GDP may be revised lower. Fisher also said that he doesn’t worry about the price of Gold. (BBG)

In other news, short-term US interest rates turned negative on Thursday as banks stockpiled government securities in order to “window dress” their balance sheets for the year-end, highlighting continuing distortions in the financial system more than a year after the collapse of Lehman Brothers. The scramble has been exacerbated by the fact that all top US banks, many sitting on big trading profits, will this year close their books at the end of December. In past years, top investment banks have reported annual results in November. (FT)

Elsewhere, Federal Reserve officials are stepping up scrutiny of the biggest US banks to ensure the lenders can withstand a reversal of soaring global-asset prices, according to people with knowledge of the matter. (BBG) Also, foreign central bank US debt holdings rise USD 17.174bln to USD 2.933trl in November 18 week, according to Fed. (RTRS)

Wall Street

GE – Co. and Vivendi are between USD 1-2bln apart in their valuation of Vivendi’s stake in NBC Universal, possibly hurting chances of a rapid resolution to a stand-off that is holding up Comcast’s planned bid for a majority holding in NBC. (FT)

Procter & Gamble – Co. said it is currently in the market for share repurchases, that it is targeting a meaningful level of repurchase and that the repurchase will likely be below USD 8bln. Co. CFO says lots of uncertainty remains regarding market growth. Says acquisitions are not a core aspect of company’s growth strategy. (BBG/RTRS)

Kraft Foods – Ferrero and Hershey are considering a joint offer for the British confectioner, which is the target of a hostile bid from co. (Sources) Also in the news, co. sought permission from Russian authorities to gain rights over the operations of 000 Dirol Cadbury, a Russian unit of Cadbury. (Vzglyad)

Companies paying dividend: Caterpillar (USD 0.42000)

Companies going ex-dividend: Johnson & Johnson (USD 0.49000)

S&P 500

Earnings

GAP – Q3 EPS USD 0.44 vs. Exp. USD 0.44, Q3 revenue USD 3.59bln vs. Exp. USD 3.56bln. Says Q3 comparable store sales were flat and sees full year capex of about USD 350mln. Co. says board authorised new USD 500mln share purchase program, effective immediately. (BBG/RTRS)

Other News

S&P 500 – JP Morgan raises forecasts to 1,160 from 1,100 by year end. (BBG)

US Banks – Federal Reserve officials are stepping up scrutiny of the biggest US banks to ensure the lenders can withstand a reversal of soaring global-asset prices, according to people with knowledge of the matter. (BBG)

Goldman Sachs – Some large co.’s shareholders want the firm’s bonus pool reduced and want to see more earnings passed to investors, reflecting the firm’s rebound. (WSJ)

AIG – Taiwan turned down an application by a China Strategic Holdings lead consortium to buy co.’s Taiwanese Nan Shan Life Insurance Co. because of missing documentation. (WSJ)

Pfizer – FDA approves intravenous formulation of co.’s Revatio for the treatment of pulmonary arterial hypertension. (BBG)

Merck – The Committee for Medicinal Products for Human Use of the European Medicines Agency has recommended approval of Elonva as a treatment in controlled ovarian stimulation in combination with a GnRH antagonist for the development of multiple follicles in women participating in an assisted reproductive technology program. (BBG/RTRS)

Philip Morris – A Florida court has ordered co. to pay about USD 300mln in damages to a former smoker. (BBC)

Boston Scientific – Co. has received 510(k) clearance from the FDA and CE Mark approval to market its WallFlex Fully Covered Esophageal Stent for the treatment of malignant esophageal strictures caused by tumors in patients with resectable or non-resectable esophageal cancer. (BBG/RTRS)

Nike – Co. increases dividend by 8% to USD 0.27 from USD 0.25. (Briefing.com)

Companies paying dividend: Capital ONE Financial (USD 0.05000)

Companies going ex-dividend: Prudential Financial (USD 0.70000)

NASDAQ

Earnings

Dell – Q3 EPS USD 0.23 vs. Exp. USD 0.27, Q3 revenue USD 12.9bln vs. Exp. USD 13.14bln. Co. says expects Q4 revenue to improve over Q3. Co. also says saw PC demand pick up “quite substantially” in October after Windows 7 launch. Co. says Dell Asia to return to positive revenue growth in the near future. Says “comfortable” with forecasts of about 10% unit shipment growth in 2010 and expects to continue to forgo share repurchase. (BBG/RTRS)

Intuit – Q1 EPS USD 0.10 loss per share vs. Exp. USD 0.15 loss per share, Q1 revenue USD 493mln vs. Exp. USD 487.7mln. Co. reaffirms forecast. (BBG/RTRS)

Other News

Google – Co. and a group of authors and publishers preliminary approval of a revised online book settlement. Under the USD 125mln agreement, co. will set up a Book Rights Registry with publishers and authors to compensate copyright holders whose works are scanned. (BBG) Elsewhere, co said the first devices running its new Chrome operating system will be available by the end of 2010. (WSJ)

Oracle/Sun Microsystems – EU extends deadline on Merger and to rule on deal by Jan 27. (BBG)

Genzyme – Europe drugs agency recommends extending use co.’s Thyrogen for Ablation of Thyroid remnant tissue. (RTRS)

Teva Pharmaceutical – Europe drug agency recommends three generics from co., Docetaxel Teva, Telmisartan Teva and Temozolomide Teva. (RTRS)

eBay – Co. announced that it has successfully completed the previously announced sale of its Skype communications unit in a deal valuing the business at USD 2.75bln. (BBG/RTRS)

OTHER NEWS

Baltic Dry bulk index rises -3.4% to 4,507 at 1316 GMT (0716 CST) in London. (BBG) USD Index up 0.57% and CRB Index down 0.27% at 1353 GMT (0753 CST)

Chinese Banks – China’s 11 largest publicly-traded banks may need to raise about USD 44bln by selling shares and Bonds to ensure they have adequate capital for credit growth, according to BNP Paribas. (BBG)