U.S. stock futures were lower this morning on fear Tropical Storm Gustav's path may pose a threat to refinery activity along the Gulf of Mexico coastline and some would have to shut down. Indeed, oil prices rose to above $117 a barrel Wednesday. Also in focus today is the upcoming durable goods order to be reported before the opening bell. Meanwhile, the FDIC is considering borrowing funds from the Treasury, amid an expected wave of bank failures. Nine banks have failed so far this year, and the number of troubled U.S. banks rose 30% to 117 in the second quarter.[Update: Futures turned positive after durable goods unexpectedly gained.]
Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), which stocks jumped big Tuesday, both had several ratings cut by Standard & Poor's. Still, both stocks seem to continue their climb in premarket with Fannie shares up 7.5% and Freddie's up 10%. At least two analysts, from Citigroup and Goldman said Tuesday the situation isn't as bad as it may seem.
From financials to toys: A federal jury awarded Mattel Inc. (NYSE: MAT) $100 million in damages on Tuesday in a federal copyright lawsuit against MGA Entertainment Inc., the maker of the saucy Bratz dolls.
Moving to pharmaceuticals, Amylin Pharmaceuticals Inc. (NASDAQ: AMLN) and Eli Lilly & Co. (NYSE: LLY) shares are down 10% and 1% respectively in premarket trading after four more patients taking their Byetta diabetes medication have died. Baird downgraded Amylin from Buy to Neutral and cut its price target from $37 to $27. Soleil downgraded AMLN from Hold to Sell.
Meanwhile, Bristol-Myers Squibb Co. (NYSE: BMY) and Pfizer Inc. (NYSE: PFE) said that early results from a Phase III study show the companies' blood-clot-drug candidate apixaban did not meet its primary goals.
In Apple Inc. (NASDAQ: AAPL) news, The Guardian reports that "A TV ad for Apple's iPhone has been banned by the UK's advertising watchdog for misleading consumers after it over-hyped the internet capabilities of the smart phone." Since the iPhone does not support Flash or Java, claims that "all the parts of the internet are on the iPhone" are deemed misleading.
And if you missed it Tuesday, iPhone 3Gs now outnumber first generation iPhones.
A recent comScore data release show Microsoft (NASDAQ: MSFT) was the top display advertiser in June 2008, which was due in large part to its promotional campaign for Windows Live Search and other such promotions.
ConocoPhillips (NYSE: COP) plans to sell the rest of its company-owned gasoline stations to closely held PetroSun West LLC for $800 million, The Wall Street Journal reported. As profit margins have thinned of late, oil companies have been exiting the retail gasoline business and focusing on exploring for crude oil.
Analyst calls:
Analyst calls:
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Reader Comments (Page 1 of 1)
8-27-2008 @ 9:03AM
Beltway Greg said...
Would someone please give Douglas McIntyre, Professor Pete "Would you care to take a bite of Apple"? and the rest of the pouters and doubters the news about IPhone sales? And once you done that take them to a retail location and remind them that Apple sells computers, etc. BTW, is RIMM experiencing any shortages or lines with the launch of the Blackberry Old? Meaning just like the old model?
Beltway Greg
8-27-2008 @ 10:08AM
gary said...
AMR will do great in the near term... people are playing politics and it needs to stop... Ready and waiting for the ba/amr joint venture, it should be very allowable in the current economic environment.