Jonathan Berr
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Before the bell: Investors look for hopeful signs
Investors have had little reason to be hopeful during the past two years as the economic news seems to get more depressing by the day. But lately, the stock market has turned optimistic and investors begin the week bracing themselves for any word that the good times may not last.Stocks appear poised to open higher as Express Scripts Inc. (NASDAQ: ESRX) agreed this morning to acquire Wellpoint Inc.'s pharmacy benefits management business for $4.68 billion, proving that the once-moribund mergers and acquisitions market is showing signs of life.
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Before the Bell: Wall Street is on a roll -- for now
Investors are expecting Wall Street to continue its recent winning ways.
Stocks are poised to open higher as investors await March retail sales data and the weekly unemployment report. Markets in Europe and Asia were higher.
Retail sales, though weak, may not be as bad as investors had feared. According to the Wall Street Journal, "Wal-Mart Stores and a select group of its discounting peers have helped retail sales exceed modest expectations every month since December, and that streak likely will continue."
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Before the bell: Stocks poised to drop following Alcoa's disappointing earnings
U.S. stocks may be poised to drop for a third day following yesterday's disappointing results from Alcoa Inc. (AA), the first major Dow component to report this earnings season.According to Bloomberg News, futures on the S&P 500 expiring in June decreased 0.9 percent to 806.60 at 10:50 a.m. in London, while Dow Jones Industrial Average futures slid 1% to 7,683 and Nasdaq-100 Index futures fell 0.6% to 1,273.75. Markets in Europe and Asia were also down.
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Before the Bell: Will earnings season start with a whimper?
Alcoa Inc. (AA) must have drawn the short straw to be the economic canary in the coal mine decades ago, but for many investors the aluminum maker's earnings are seen as a harbinger of things to come. Judging from Wall Street estimates, expectations are so low, they are almost laughable.Analysts expect the Dow component to lose 56 cents per share on revenue of $4.08 billion compared with $303 million, or 37 cents, a year earlier on revenue of $7.38 billion, according to estimates by Thomson Reuters. The Pittsburgh-based company reported its first loss in six years in January. Its shares are down about 30 percent this year, even with the recent surge in the stock market.
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Before the Bell: When will the party end?
For the past few weeks, investors have "partied like its 1999" as in the heady days of the tech bubble and not the song by Prince.They have taken a "What me worry?" attitude that would make Alfred E. Neuman, the fictional mascot of "Mad" magazine proud, sending the major indexes soaring after data showed some small signs of improvement, even though the economy lost 663,000 jobs in March.
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Private investors have to be part of any financial rescue
Lost amidst all of the talk about bank nationalization, capital ratios and executive jets is any discussion about how the free market can help stabilize the faltering banking system. That's until Treasury Secretary Timothy Geithner mentioned it today.What people forget is that the Troubled Asset Relief Program is supposed to be temporary. Yes, I know $700 billion seems permanent, but it's not. Banks are supposed to pay the government back with interest once the economy improves and their toxic assets become something people want. The only way that this is going to happen is with private money.
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IBM offers laid-off workers a job -- overseas
International Business Machines Corp. (NYSE: IBM) is taking offshoring to a new level.According to CNN/Money, Big Blue has a program called Project Match that will "help interested workers whose jobs are on the chopping block to "identify potential opportunities in (overseas) growth markets and facilitate consideration by hiring managers in those markets.'" It will even help with moving costs and provide assistance with visas.
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Media World: First ever layoffs at Bloomberg L.P.
Bloomberg L.P., where I worked for seven years as a reporter for Bloomberg News, has announced plans for its first-ever corporate layoffs, proving that the media empire founded by New York City Mayor Mike Bloomberg in 1981 is not immune to the economic slowdown.The cuts, 100 in total, were in the company's radio and TV operations. They are not surprising. Both Bloomberg TV and radio station WBBR have been poorly managed for years. Many of CNBC's biggest stars, including Dylan Ratigan, started their careers at Bloomberg TV. They no doubt went to the General Electric Co. (NYSE:GE)-owned network for bigger money and bigger audiences. The reorganization that the New York Times refers to may include the end of non-English language programming. It also means getting rid off high-priced talent.
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Will Fortunoff be the next chain to bite the dust?
Fortunoff may be the next retail chain headed for the scrap heap.
According to Bloomberg News, this once-venerable company is headed for Chapter 11 bankruptcy and a possible liquidation. The demise of Fortunoff comes a year after Lord & Taylor parent NRDC purchased the company out of bankruptcy. At the time, NRDC thought Fortunoff was the best thing since sliced bread. Lord & Taylor even made available a $10 million line of credit to the chain. But now, the chain's lease at its flagship store has expired and the store, located on Fifth Avenue near Bergdorf Goodman, Prada and Tiffany & Co. (NYSE:TIF) is vacant.
According to Bloomberg News, this once-venerable company is headed for Chapter 11 bankruptcy and a possible liquidation. The demise of Fortunoff comes a year after Lord & Taylor parent NRDC purchased the company out of bankruptcy. At the time, NRDC thought Fortunoff was the best thing since sliced bread. Lord & Taylor even made available a $10 million line of credit to the chain. But now, the chain's lease at its flagship store has expired and the store, located on Fifth Avenue near Bergdorf Goodman, Prada and Tiffany & Co. (NYSE:TIF) is vacant.
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The Citigroup-NY Mets deal is nuts
The New York Mets, whose September collapses have delighted us Philadelphia Phillies fans, have screwed up even bigger with their $400 million stadium naming rights deal with Citigroup Inc. (NYSE: C).Baseball's premier choke artists are now denying an earlier report that the troubled New York-based bank was trying to back out of its commitment to the team. New York Newsday is quoting a team official "We're committed to our agreement with Citi, and Citi has indicated it is committed to users." He went on to defend Citi, saying that the bank "needs to advertise."
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Sandy Weill gives up Citigroup corporate jet
Over the weekend, the New York Post reported that former Citigroup Inc. (NYSE: C) Chief Executive Sandy Weill and his family flew on a company jet for a vacation in Mexico weeks after the New York-based bank received a $45 billion bailout from the federal government and said it would slash 75,000 jobs. Today, the now-disgraced banker said he will give up the perkAccording to the Wall Street Journal, "Weill's office said in a statement on Monday morning that `in light of the unprecedented circumstances that Citi finds itself in' he decided to stop using Citi aircraft immediately." Wow, if you did not know any better you would have thought he had given up his left arm instead of a seat on a luxurious jet.
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How 'super' was the Super Bowl for GE? (Updated)
Was yesterday's Super Bowl "super" for General Electric Co. (NYSE: GE)? While it is no doubt prestigious to broadcast the NFL championship, I wonder whether it's as great as it seems for the company's bottom line.GE's NBC network trumpeted in a press release that it earned $206 million in advertising revenue from 32 different advertisers. It sold the last two of the spots the night before the game. I am skeptical about this figure for several reasons.
Any numbers publicized in connection with advertising should be taken with a grain of salt. Gross billings, which often gets publicized, is a bogus number because it includes stuff that agencies charge their clients such as postage. The revenue figures publicized by NBC can be fudged in many ways. Remember, this is advertising.
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Will the slowing economy hurt or help the new Wal-Mart CEO?
Wal-Mart Stores Inc.'s (NYSE: WMT) new Chief Executive Mike Duke will have his hands full once he takes control of the world's largest retailer on Sunday.
For one thing, the economy continues to struggle. Gross Domestic Product fell 3.8% in the fourth quarter, the most since 1982. Consumer spending fell 3.5% in the quarter as unsold goods continued to pile up. Though consumer confidence rose to a four-month high, it was still weaker than expected.
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Exxon's profits sure to inspire the haters
Remember when Exxon Mobil (NYSE: XOM) was the symbol of all that was evil in corporate America? Remember when people were pawning their jewelry to buy gas? Remember when politicians spoke of a windfall profits tax? Well, move over Wall Street, the largest publicly traded oil company is back again to grab some of the negative publicity.The company reported $45.22 billion in profits last year, the largest ever for an American corporation. The results beat Exxon's previous record. Exxon spent $40 billion on dividends and share buybacks.
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Faced with economic disaster, Icelanders could care less that their prime minister is gay
Perhaps no economy in the world is in such disastrous shape as Iceland. Last year, the weight of the global financial crisis crushed this island nation causing its banking system to implode, its currency to collapse and its unemployment rate to soar.This is quite a reversal for the country founded circa 874 AD. The United Nations' Human Development Index ranked Iceland as the world's most developed country. Maybe that was the result of the reckless abandon shown in running the country's banks.
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