UBS AG (NYSE: UBS) missed analyst estimates when it reported Tuesday it lost a larger-than-expected 8.1 billion Swiss francs ($7.57 billion) in the fourth quarter. Estimates put the loss at 6.2 billion francs ($5.79 billion). It also announced it would cut another 2,000 jobs. Apparently, this could have been far worse as UBS benefited from an accounting adjustment. UBS shares gained nearly 7% in premarket trading as Switzerland's largest bank also reported an "encouraging" start to the year. UBS shares soared over 10% by 10 am.Goldman Sachs Group Inc. (NYSE: GS) joined the last few financial institutions to move, cancel or change their meeting and conference plans. It has moved a three-day conference from the Las Vegas Strip to San Francisco as many scrutinize bank activities these days following them taking bailout funds. Still, according to anonymous sources, the cancellation itself will cost Goldman $600,000. GS shares opened lower.
Boeing Co. (NYSE: BA) hasn't been running into enough trouble lately it seems, that it also announced Monday it has understated its fourth-quarter and fiscal 2008 loss per share results by 4 cents per share, thus widening the loss. Boeing claims that "lower aircraft values in its customer financing portfolio and increased liabilities linked to an arbitration ruling" created the need to revise lower its already reported earnings. BA shares declined 2.8% in premarket trading at last check. BA shares declined some 2% around 10 am.
Qwest Communications International Inc. (NYSE: Q) reported earnings Tuesday morning, posting a fourth-quarter profit decline of over 50% to $185 million, or 11 cents a share. This beat expectations of adjusted earnings of 10 cents a share, according to a FactSet Research survey. Operating revenue, however, didn't decline by much. The telco maintained "a cautious view on its outlook for 2009." Q shares gained 4.5% in premarket trade. Q shares gained over 5% by 10 am.
Starbucks Corp. (NASDAQ: SBUX)'s outlook was lowered by Standard & Poor's Ratings Services to negative from stable. It also downgraded its short-term rating to A-3 from A-2, but affirmed its corporate credit rating of BBB. S&P said that despite the cost cutting measures, "we do not expect meaningful improvement in credit metrics during fiscal 2009." SBUX shares declined over 1% in premarket trading. SBUX shared declined over 1% at the open.
Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) "may need more than the $200 billion in funding pledged by the U.S. government if the housing market continues to deteriorate, Federal Housing Finance Agency Director James Lockhart said." FNM and FRE gained over 3% in premarket trade. FNM opened some 2% higher, FRE opened flattish.
General Motors Corp. (NYSE: GM) said Tuesday it will cut 10,000 salaried jobs as it continues to try to weather the economic downturn and some of the worst sales in the U.S. auto industry's history. Shares are gaining over 2% on the news.
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