U.S. stock futures were higher earlier this morning, as investor continued to watch the debate over the $700 billion bailout plan following President Bush's speech Wednesday when he warned "Our entire economy is in danger." But then General Electric cut its earnings estimates and futures began coming off highs. Now it seems stocks could start the day mixed. Also on tap today are data on durable-goods orders and new-home sales for August, as well as the weekly initial jobless claims number.General Electric Co. (NYSE: GE) has lowered its outlook for third-quarter and full-year earnings, citing "unprecedented weakness and volatility in the financial services markets." The new guidance is far below analyst estimates. GE has also reaffirmed its commitment to maintaining a 'AAA' credit rating, and is taking steps to bolster its capital and liquidity position including suspending the current GE stock buyback, but not touching the dividend. GE shares are down nearly 5% in pre-market trading.
Delta (NYSE: DAL) and Northwest (NYSE: NWA) shareholders are to vote Thursday on the proposed deal to combine the two. The votes are expected to overwhelmingly back the deal. With that, the airlines will then need
to pass two more hurdles: U.S. regulatory approval and a pending federal lawsuit seeking to block the deal after which the two would become the world's biggest carrier. Shares of both are indicating higher.
Research In Motion (NASDAQ: RIMM) is expected to report second-quarter earnings of 87 cents a share, according to analysts surveyed by FactSet Research. Although analyst and investors are interested in the results, they may want to hear more about the future as RIM recently launched several new handsets. Also of interest would be indication whether RIM would soon unveil a touch-screen phone to compete with Apple Inc. (NASDAQ: AAPL)'s iPhone as it tries to push into the consumer market.
Nike Inc. (NYSE: NKE) reported better-than-expected results after the close Wednesday. Strength in international sales and a strong dollar helped offset weak U.S. ones. Shares were up over 4% in after-hours trading Wednesday.
Bed Bath & Beyond Inc. (NASDAQ: BBBY) said that its second-quarter profit fell 19%, hurt by lower margins, but came inline with estimates.
Washington Mutual (NYSE: WM) has approached several private-equity firms, including Carlyle Group LLC, and Blackstone Group LP, about a potential takeover, according the Wall Street Journal. Among banks, J.P. Morgan Chase (NYSE: JPM) and Wells Fargo (NYSE: WFC) interest seems to have diminished in recent days. WM shares are jumping over 15% in pre-market trdaing.
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