Before the bell: Futures tumble on financials, ahead of data, earningsGenentech Inc. (NYSE: DNA) said Monday its profit rose 5% on sales of its blockbuster cancer drugs to $782 million, or 73 cents per share. Excluding charges, the company earned 82 cents per share. Revenue rose 8% to just under $3.24 billion. The results did not meet analysts expectations, according to Thomson Financial, expected profit of 86 cents per share on revenue of $3.23 billion. The biotechnology company raised its full-year outlook on expectations for additional sales gains, allowing shares to trade 1.4% higher in premarket action.
The downgrades in financials continue. While Wachovia itself has been hit with downgrades two days in a row now,it cut AIG (NYSE: AIG) stock to Market Perform from Outperform. AIG shares are declining over 6.3% in premarket trading.
Staying with financials, the faith of Lehman Brothers (NYSE: LEH) is all but certain these days. LEH shares plunged some 40% in the past five days alone (81% yea-to-date) following speculation about clients leaving and a reported search for new strategic options. But can Lehman find any bidders? With employees controlling around 30% of the stock this would be a more difficult deal than usual. But as Lehman is being compared lately to Bear Stearns, the brokerage firm may not have much choice. LEH shares are declining yet another 2.4% in premarket trading after sinking over 14% Monday.
Salvation in all these bleak news items? Could it be from housing? Well, while we haven't seen a bottom in housing yet, at least homebuilder Lennar (NYSE: LEN) was upgraded by UBS from Sell to Neutral.
Kimberly-Clark Corp. (NYSE: KMB) warned second-quarter earnings will be below its target, due to surging energy and distribution costs. The maker of Huggies diapers and Scott paper towels also cut its 2008 profit forecast. Wachovia didn't waste time and downgraded KMB to Market Perform from Underperform and the shares are down 7.3% in premarket trading.
Meanwhile, Apple Inc. (NASDAQ: AAPL) continues to sell the iPhone 3G, unless stores run out of stock of course. Well, this is the case in 21 states. FORTUNE reports that "As of 6:00 a.m. EDT Tuesday, all three models (8GB black, 16 GB black or white) of the hot-selling device were sold out in 21 states, according to Jim Neal, a retired PR man living near Kansas City who took the time to check each of Apple's 188 U.S. retail stores using the company's iPhone availability widgets."
Closing Bell: When We All Love the PIIGS (NBG, SQNM, PG, ERTS, KO)
Serious Money: Cheapest Stocks List Shrinks from 26 to 21
Chasing Value: Hasbro Earnings Makes My Point
