Stock futures were flattish Thursday morning as oil prices rose due to continued concern over Gustav. However, some retailers have posted better-than-expected earnings. Still, there are several economic reports due before the open that could sway sentiment either way, including revised GDP for the second quarter.[Update: Futures turned positive after the report U.S. gross domestic product grew by 3.3% in the second quarter - much higher than previously stated.]
U.S. jeweler Tiffany & Co (NYSE: TIF) posted double the quarterly profit from a year ago on Thursday, benefiting from strong international sales and solid tourist spending at its New York flagship store. Net profit was $80.8 million, or 63 cents per share, in its fiscal second quarter, up from $40.5 million, or 29 cents per share a year earlier, and beating estimates of 55 cents per share. Revenue grew 11%. Tiffany also raised its 2008 profit outlook on strong sales in Europe and Asia and expected improvement in the U.S. TIF shares are up over 6% in premarket trading.
On the other hand, department store retailer Sears Holdings (NASDAQ: SHLD) reported a 62% plunge in second-quarter net profit to $65 million, or 50 cents per share. Excluding a gain, Sears earned 21 cents, trailing some analysts' estimates by 15 cents. Chief Executive Bruce Johnson said the results were affected by the "slowing economy." It seems some, though, still have confidence in Chairman Lampert.
Fannie Mae (NYSE: FNM), the mortgage finance giant, shook up its executive ranks Wednesday. "Its chief financial officer and two other top executives are leaving the company. Three current executives were promoted to replace them." CEO Mudd kept his job. Shares of Fannie and sibling Freddie Mac (NYSE: FRE) have been rising after concern over a government bailout lessened. In premarket trading, FNM and FRE shares are up over 6% and 5% respectively.
TiVo Inc. (NASDAQ: TIVO) shares are down over 5% in premarket trading after the company reported $2.9 million in net income, or 3 cents per share Wednesday. This is up from a loss of $17.7 million, or 18 cents a share, in the same period last year, and above expectations of 2 cents per share. The company, however, guided below expectations.
And feeling the economic headwinds, Toyota (NYSE: TM) lowered its global sales target for 2009 to 9.7 million vehicles on Thursday, down from an earlier 10.4 million vehicles. The company cited the regular malaise as reasons: rising material costs, a slowing U.S. market and soaring gas prices.
Dell Inc. (NASDAQ: DELL) is scheduled to report its fiscal second-quarter results after the market closes Thursday. Analysts surveyed b Thomson Reuters expect Dell to report a profit of 36 cents per share on $15.94 billion in sales.
The Wall Street Journal reports that Apple Inc. (NASDAQ: AAPL) iTunes store has a problem as "a growing number of record companies are trying to steer clear of Apple Inc.'s behemoth music store, because they say selling single songs on iTunes in some cases is crimping overall music sales."
And Bloomberg had a little snafu Wednesday when it inadvertently published its updated obituary for Steve Jobs. Bloomberg retracted it but not before Gawker managed to copy and reprint it.
Analyst calls:
- Credit Suisse downgraded Coca-Cola (NYSE: KO) from Outperform to Neutral.
- Lehman Brothers downgraded Gilead Sciences (NASDAQ: GILD) from Overweight to Equal-Weight.
- Soleil Securities upgraded Jo-Ann Stores (NYSE: JAS) from Hold to Buy and the price target from $25 to $30.
- Merrill Lynch upgraded Amylin Pharmaceuticals (NASDAQ: AMLN) from Neutral to Buy.
Why do we have a weak dollar?
Holiday hiring slow for retailers
Closing Bell: What sell-off? (AIG, ABK, EPR, MBI, JAVA, ORCL, ERTS)
Reader Comments (Page 1 of 1)
8-28-2008 @ 9:17AM
Beltway Greg said...
Great idea avoid ITunes. Record companies are filled with dullards who constantly rip off their artists. The entire history of the recording industry has been one big, to misappropriate Steely Dan, a "Royal Scam." Apple introduces a method by which the artist has a complete accounting of how many copies are being sold and can check where he stands on the charts at any given time and sells a device that allows them to access that product 24 hours a day? Remember a couple of years ago when the record companies were holding royalties because they couldn't find any number of famous artists. How stupid can Bob Ritchie, AKA Kid Rock be, limit the availability of your product, keep it away from your target audience all of whom own IPods, and you'll sell more copies. If you believe this BS you deserve your fate. Time to get some better management or you'll have plenty of time to hit golf balls off of tall boys with John Daly while some fat fingered record executive signs the "New Kid in Town" with your royalties.
Beltway Greg
9-11-2008 @ 5:12AM
Paul Clisby said...
"Wall Street Journal reports that Apple Inc. (NASDAQ: AAPL) iTunes store has a problem..."
"And Bloomberg had a little snafu Wednesday when it inadvertently publish its updated obituary of Steve Jobs."
The growing strength and organisation of the 'tall poppy' style anti-Apple campaigners continues to amaze. WSJ and CNBC have long been at it, as of course has The Street, Motley Fool and any number more of household names. Even Reuters has been dipping its ore into these muddy waters of late, and so here now comes Bloomberg to the party. Accidental publishing of an updated obit? Not likely, not with today's content management systems.
Incredible, and incredibly disappointing.