U.S. stock futures were lower Tuesday morning as economic concerns increased. China, which boosted markets only Monday with its own stimulus plan, today showed signs of slowing growth as well. World markets responded, with Asia markets posting losses and European markets opening down as well. Oil prices declined again to as low as $60 a barrel. Gloomy corporate reports as well as housing and financial sector woes are weighing heavily on markets today.[Note: Extended hours indications can change as news progresses, changes.]
American Express Co. (NYSE: AXP) applied to become a commercial bank on Nov 5. Monday night the Federal Reserve approved the request due to "emergency conditions." AmEX could now accept deposits, thus bolster its cash, and gain quicker access to Fed financing.
Starbucks Corp. (NASDAQ: SBUX), the once high flying company, reported Monday 97% lower profit in its fourth quarter. Excluding items, Starbucks earned 10 cents per share, below analyst estimates of 13 cents per share. Fewer U.S. customers and higher costs for closing poorly performing stores led to lower sales and profit. SBUX shares declined 2.75% in after-hours trade 7:56 p.m.
Toll Brothers Inc. (NYSE: TOL) reported a 41% drop in fourth-quarter home building revenue. Backlog slipped 54% and net signed contracts for the quarter also slid 27%. Toll said the preliminary signs of stability in the market in early September were reversed by the financial crisis. It didn't give guidance for the coming year. Toll Brothers will release full results on Dec. 4.
General Motors Corp. (NYSE: GM) shares on Monday plunged to their lowest point in 60 years following some downgrades and analysts calling the demise of the company. Only a government bailout can now prevent its collapse, many analysts believe. The problem is that even operating under bankruptcy protection wouldn't help because it wouldn't address liquidity and financing has dried up because of the credit crunch. Bush and Obama have discussed aid to automakers in their first meeting.
Sirius XM Radio Inc. (NASDAQ: SIRI) reported a wider third-quarter loss Monday, but excluding items, it lost 9 cents a share. On a pro forma basis, revenue rose 16% to $613 million. Analysts polled by Thomson Reuters were expecting a loss of 9 cents a share on sales of $587 million. The company said it would delay the filing of its 10-Q for no more than five days to review the value of its intangible assets. Sirius XM faces almost $1 billion in debt that comes due next year -- a problem the company said Monday it is working with creditors to relieve.
Google Inc. (NASDAQ: GOOG) -- a Goldman Sachs analyst trimmed his profit estimates late Monday due to economic conditions affecting specific aspects of Google such as paid search, e-commerce search trends.
Las Vegas Sands (NYSE: LVS) said Monday said it was suspending several projects, in Macau and elsewhere, and had agreements to raise $2.14 billion in new capital. Macau will not help Sands with financing.
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Reader Comments (Page 1 of 1)
11-12-2008 @ 2:36AM
PacificGatePost said...
DRASTIC ACTION COULD SAVE DETROIT
Here is a radical, but common sense and workable plan -
http://pacificgatepost.blogspot.com/2008/11/solution-for-detroit-gm-friends.html
It is this, or bankruptcy. The American Auto industry should be saved but under new conditions.
Do not leave it to the likes of Paulson or Congress to come up with a creative plan resembling interest in taxpayers' wellbeing.
There is much creative talent hidden inside the Big 3 that has been smothered by mismanagement and the UAW.