Posted Jul 2nd 2009 11:10AM by Connie Madon
Filed under: Bad news, Economic data, Federal Reserve, Recession
Bad news! Another 467,000 jobs were lost according to the latest report. This is much worse that last month's loss of 322,000, and brings into question whether the stimulus programs are working to jump-start the economy. Obviously they are not doing the job. The unemployment rate rose to 9.5% from 9.4%.
Analysts had expected a much better report. Alan Ruskin of RBS Greenwich Capital said: "if you were betting on the U.S. driving a vigorous recovery, think again. ... The unemployment report can largely be taken at face value, and the face value story is a labor market that is not improving nearly as rapidly as the May data suggested."
Continue reading Still gloomy -- another 467,000 jobs lost last month
Posted Jul 1st 2009 10:30AM by Mark Fightmaster
Filed under: Bad news, Pfizer (PFE)
Late yesterday, Pfizer (NYSE: PFE) announced the discontinuation of the SUN 1122 Phase III trial of Sutent. The drug is for treating colorectal cancer, and the study was terminated because it failed to achieve its primary end point in the study. An independent committee (the Data Monitoring Committee) found that adding sunitinib to the chemotherapy regimen FOLFIRI would be unable to demonstrate "a statistically significant improvement in the primary endpoint of progression-free survival compared to FOLFIRI alone."
The company's vice president of Clinical Development and Medical Affairs Dr. Mace Rothenberg noted, "We are disappointed with this result, but trial successes and failures are an integral part of cancer drug development and contribute to a growing body of knowledge on improving patient care."
Continue reading Pfizer discontinues Phase III drug trial; stock continues to drag
Posted Jun 29th 2009 11:00AM by Elizabeth Harrow
Filed under: SEC filings, Bad news, Options
State Street Corp. (NYSE: STT) said today that its State Street Bank & Trust Co. unit received a Wells Notice from the Securities and Exchange Commission (SEC). The notice, which indicates that civil charges may be brought against the company, relates to disclosures and management of certain fixed-income strategies during 2007 and previous periods.
Some investors have accused State Street of misleading them about the risks involved in mortgage-related investments. A legal reserve fund worth $625 million was established in 2007 to cover investor claims, and $418 million has already been paid out. The firm says it is currently cooperating with the SEC, as well as state and other regulators.
Continue reading State Street unit slapped with Wells Notice
Posted Jun 24th 2009 2:30PM by Tom Barlow
Filed under: Bad news, Citigroup Inc. (C), Sears Holdings (SHLD)
The motel chain Red Roof Inn hit the roof this week with a thud, defaulting on over $350 million of mortgage payments. The chain, purchased by Citigroup Inc.'s (NYSE:C) Global Special Situations Unit and Westmont Hospitality Group from Accor SA two years ago for $1.3 billion, has suffered a drop in overnights of over 10% since the acquisition.
Red Roof Inn was started in 1972 by Jim Trueman. (Trueman is better remembered as the car racing fan, who provided the opportunity for star driver, Bobby Rahal, to start his career.) The company was based in Columbus, OH until its sale to Accor, and returned there after its most recent sale. The chain has grown to 345 locations, in 36 states. 133 of these Inns are owned by franchisees. 131 of the company-owned Inns were put up as collateral for the four mortgages the chain received. Total debt, according to the Wall Street Journal (subscription required), approaches $1.2 billion.
Continue reading Red Roof Inn hits the roof, defaults on mortgage
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