Toyota Motor Co. (NYSE: TM) -- recently we've seen more and more signs that the slowdown in general and the auto industry troubles particularly have been hurting Toyota too. Today, Fitch Ratings cut Toyota's top-notch credit rating to "AA" from "AAA," as the carmaker was indeed hit by the world auto market slump, high material cost and from a surging yen. TM shares were down 3% by 11 am.
American International Group Inc. (NYSE: AIG) announced late Tuesday it has closed its $40 billion stock placement with the U.S. Treasury under the government's Troubled Assets Relief Program. The Treasury bought shares of AIG equaling 2% of the company on the date of the investment. AIG shares were up 0.5% by 11 am.
Deere & Co. (NYSE: DE) reported that fiscal fourth-quarter net income fell 18% to $345 million, or 81 cents a share, as sales rose 21% to $7.4 billion. Analysts expected earnings of 99 cents a share on sales of $5.2 billion according to FactSet Research. The guidance for fourth quarter was below estimates. DE shares were 6.3% lower in premarket trading (8:03 am). DE shares were down 9.6% by 11 am.
Tiffany & Co. (NYSE: TIF) reported that its third quarter earnings declined to $44 million, or 35 cents a share on lower sales of $618 million. This was above analyst estimates of 26 cents EPS and sales of $697 million, according to FactSet Research. Tiffany said it plans to reduce staff. TIF shares were 8.6% lower in premarket trading (8:03 am). TIF shares were down 4.1% by 11 am.
Dell Inc. (NASDAQ: DELL), the personal computer maker, is due to report its financial results after the market close. The company is expected to post a 9% drop in earnings to 31 cents per share, according to Briefing.com. DELL shares were 1.5% higher in premarket trade (8:00 am). Dell shares were 2.7% lower about half an hour after the open.
General Electric Co. (NYSE: GE) is seeking funds from China Investment Corp., Government of Singapore Investment Corp. and at least two other sovereign-wealth funds. GE shares have plunged some 60% this year as the company has lowered 2008 profit target twice. But GE also raised $3 billion last month as Warren Buffett's Berkshire Hathaway Inc. (NYSE: BRK) invested in the company. GE shares declined 8.3% around 9:55 am. The company said that while it is in talks with Asian investors about joint ventures, it has no intention of raising additional capital from sovereign-wealth funds.
General Motors Corp (NYSE: GM), Ford Motor Co. (NYSE: F) and Chrysler Llc returned empty-handed from Washington as the bailout plan for the automotive sector seems hanging by a thread. The sought after compromise couldn't be reached and the Senate canceled plans for a vote Wednesday. The Bush administration and congressional Republicans have rejected Democrats' plan to dip into the $700 billion Wall Street rescue fund for a $25 billion automotive sector bailout. Interestingly, some think no bailout will not send the stock market off a cliff. Meanwhile, Chrsyler still wants to merge with GM -- little wonder there.
However, GMAC Financial Services has applied to the Federal Reserve to become a bank holding company. If approved, it would allow GM's financing arm to be eligible for aid under the Treasury's $700 billion bank rescue plan, automotive bailout or not. Still, GM shares were down about 10% in premarket trade (8:05 am), just as Ford's were up 3.2% (8:05 am). GM shares were beaten down another 11.5% around 9:55 am, Ford's were down some 4.8%.
Last week, JA Solar Holdings Co. Ltd. (NASDAQ: JASO) posted a quarterly loss and lowered its guidance. But as interest in alternative energy continues to grow, analysts polled by Thomson Financial are still looking for good things from solar energy concerns scheduled to report earnings this week.
Strong growth at Trina Solar Ltd. (NYSE: TSL) in the third quarter prompted it to lift its guidance back in October. Analysts expect the Chinese company to post profits that are 76.3% higher than a year ago, or $1.18 per share on revenues of $268.4 million (+225.0%). Though Trina Solar missed estimates in the second quarter, analysts on average recommend buying TSL. Shares are down 81.4% from a year ago and trading near an all-time low.
Earnings of rival LDK Solar Co. Ltd. (NYSE: LDK) are expect to have risen 47.9% to $0.71 per share on revenues of $486.7 million (+206.6%). Also based in China, LDK has not missed estimates in recent quarters; in fact, it blew past expectations in the second quarter. Yet the consensus recommendation is to hold LDK. Like Trina Solar, LDK's shares are trading near an all-time low; the share price has fallen 50.0% in the past year.
Analysts anticipate third-quarter earnings for Canadian Solar Inc. (NASDAQ: CSIQ) to be a whopping 96.3% higher than a year ago, or $0.54 per share on revenues of $248.0 million (+154.5%). The company easily topped estimates in the previous quarter. ReneSola Ltd. (NYSE: SOL) and Suntech Power Holdings Co. Ltd. (NYSE: STP) are also expected to report earnings growth of 29.7% ($0.37 per share) and 23.8% ($0.42 per share), respectively. All three of these stocks reached 52-week lows last week, and all are considered buys.
Alcoa Inc. (NYSE: AA) kicks off the new earnings seasons when it reports third quarter results on Tuesday. The Pittsburgh-based aluminum producer, which celebrated its 120th anniversary with the launch of its website, is expected to post a profit of 54 cents per share, down 15.6% from the same quarter of last year, on revenue of $7.2 billion, down 2.1%. While Alcoa has tended to fall short of estimates in recent quarters, in the second quarter it did offer a positive surprise of almost 3%. Its long-term earnings per share growth forecast is 14.8%, a little less than the S&P 500, and analysts polled by Thomson Financial on average recommend buying Alcoa, and have for more than 90 days. Shares reached a new 52-week low last week, and are down 48.9% from a year ago.
General Electric Co. (NYSE: GE) is also expected to report a slip in earnings this week. Analysts anticipate that the conglomerate will post a third-quarter profit of 45 cents per share, down just 6.3% from a year ago, on revenue of $47.7 billion, which is up 12.1%. GE has tended to eke out small positive surprises in recent quarters, by less than 1% in the second quarter. GE's long-term earnings per share growth forecast is only 11.0%, which is less than the sector average and the S&P 500. The consensus recommendation has recently swung to hold GE, but Warren Buffett has bought in to the tune of $3 billion. GE also reached a new 52-week low last week as the markets tumbled. GE shares are down 48.1% from a year ago.
TheStreet.com's Jim Cramer says that even in lousy markets -- and this is one of them -- you can find stocks to buy.
When nothing's working, something's working. I know sounds counterintuitive. but there is simply no reason to think, as bad as this market is -- and it is really, really bad -- that there isn't something to buy.
But are they really hurting General Mills (NYSE: GIS) (Cramer's Take)? Can I see selling Procter & Gamble (NYSE: PG) (Cramer's Take) because of them? After we know the price increases are all baked in? And don't hit me with that strong-dollar stuff, because GIS doesn't have that much overseas exposure. Same with Pepsi (NYSE: PEP) (Cramer's Take): This is a national company with an international arm that is generating oodles of cash and doesn't have as much bad commodity exposure as it did a few months ago.
U.S. stock futures were lower this morning, pointing to a weaker start Thursday following a reprieve Wednesday. Concerns over financials toll center stage again as oil continued to swing higher. Some economic data released later today may affect trading as well: Philadelphia-area poll of activity for August, leading indicators for July and weekly jobless claims.
Investors continued to fear nationalization of mortgage finance giants Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), each of which declined 27% and 22% Wednesday respectively. FNM and FRE are declining about 4.5% and 9% respectively in premarket trading. Jim Cramer thinks trading in the shares should be stopped for fear of manipulation as the short-selling rules ended.
Staying with financials, Citi lowered its third-quarter earnings estimates for Goldman Sachs (NYSE: GS), Lehman Brothers (NYSE: LEH) and Morgan Stanley (NYSE: MS) as it fears further writedowns, and a weaker business flow in addition to the seasonal slowdown. It cut its price target on Lehman to $35 from $50, but kept as Buy. Citi forecasts write-downs of $2.9 billion for Lehman, $1.8 billion for Goldman and $1.7 billion for Morgan Stanley.
As if that wasn't enough to raise concerns, the Wall Street Journal reports that the Federal Reserve called Credit Suisse (NYSE: CS) last month to check a rumor that the bank was preparing to pull a line of credit for Lehman Brothers, which CS told the FED wasn't true. At least this shows the Fed is serious about taking and implementing the moral authority it should be.
Target (NYSE: TGT) is scheduled to report Q2 EPS on August 19. TGT September & October option implied volatility of 43 is near its 26-week average according to Track Data, suggesting non-directional price movement.
Gap (NYSE: GPS) is scheduled to report Q2 EPS on August 21. GPS September option implied volatility of 47 is near its 26-week average of 43, suggesting slightly larger price movement.
Limited Brands (NYSE: LTD) is scheduled to report Q2 EPS after the market close on August 20. LTD September option implied volatility of 51 is near its 26-week average, suggesting non-directional price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Rival home improvement chains Home Depot Inc. (NYSE: HD) and Lowe's Companies Inc. (NYSE: LOW) are scheduled to report quarterly results this week. Not surprisingly, given the ongoing housing slump, analysts surveyed by Thomson Financial on average expect both companies to post earnings lower than in the same period a year ago. For Home Depot, that's 61 cents per share, down 20.8%, and for Lowe's, 56 cents per share, down 16.4%. Meanwhile, cabinet maker American Woodmark Corp. (NASDAQ: AMWD), for whom Home Depot and Lowe's are major distributors, is also expected to report lower earnings: 11 cents per share, down 67.6%.
The presidential campaigns have prompted much discussion of energy policy and alternative energy sources. Some solar-energy-related concerns are scheduled to report this week, and expectations seem to be high. Trina Solar Ltd. (NYSE: TSL) is expected to report 81 cents per share earnings, up 67.9%; ReneSola Ltd. (NYSE: SOL) is expected to post earnings of 32 cents per share, up 62.5%; and Suntech Power Holdings Co. (NYSE: STP) is expected to have earnings of 32 cents per share, up 21.9%. Even China Sunergy Co. Ltd. (NASDAQ: CSUN) is expected to have swung to a profit of 3 cents per share, from a per-share loss of 14 cents a year ago.
Bloomberg News reports that Wal-Mart Stores, Inc. (NYSE: WMT) and Costco Wholesale Corp. (NASDAQ: COST) saw big sales increases in July thanks to $4 gas, while more upscale retailers, such as The Limited Brands (NYSE: LTD), lost business. The stock market is responding to the change and so far this year, Wal-Mart shares are up 27.8% but Costco's have fallen 5.8% (thanks to a profit squeeze due to its gasoline costs rising faster than the price it charges consumers). Limited stock has lost 10.8% during that time.
The details are worth knowing. Wal-Mart sales at stores open at least a year gained 3% while Costco's climbed 10%. Limited, the owner of the Victoria's Secret lingerie chain suffered a 5% decline. But Wal-Mart's results -- while strong -- were disappointing to investors who expected 3.4% growth. What is driving this increasing budget-consciousness? The beginning of back-to-school shopping, the suspension of sales taxes in some states, $4 a gallon gas, 9.6% inflation and seven months of job losses are all combining to push shoppers to discounters and away from pricier retail outlets.
U.S. stock futures drifted lower Thursday morning on the heel of another big loss reported by AIG. With reports today that mortgages made in 2007 are going bad at a rapid pace, the blow to the financial system may be even deeper than Wall Street had estimated, and data on June pending home sales could give more information about the recent state of the housing market. Also in focus today will be July same-store sales announced by retailers, which could show a 2.2% gain due to stimulus checks and back-to-school shopping, as well as rate decisions by ECB and BOE. The latter already kept rates the same. Finally, rising oil prices could affect trading as well.
AIG (NYSE: AIG) posted its third straight quarterly loss Wednesday after the close. Analyst believe that this quarter's $5.56 billion recorded loss due to investments related to mortgages could continue in the next few quarters. AIG's results didn't just cause investors to dump the stock, but also caused overall jitters about financials. AIG shares are down over 9% in premarket trading. In Europe, Allianz, Axa, Aegon, three of the biggest insurers, also post lower earnings on asset writedowns. Toyota Motor Corp. (NYSE: TM) reported a 28% profit fall in the quarter, 39% drop in operating profit. The company said the strong yen and rising costs of materials for the decline in addition to soft conditions in the U.S. all contributed to these results. While it said it plans to offset the declines by launching new vehicle models and stepping up production of popular models, it's unclear how successful that would be in light of softening economic conditions worldwide.
Staying with the auto industry, The Wall Street Journalreported that Chrysler and Nissan Motors (NASDAQ: NSANY) are in talks tabout jointly producing midsize cars, where Nissan would produce midsize sedans that Chrysler would sell in the U.S. under its own name.
Starting with an aggregate of recent airlines news:
Continental Airlines (NYSE: CAL) said it would cut 3,000 of its 45,000 jobs, about 6.5%, and cut capacity 11% in the fourth quarter. The company will eliminate 67 planes and the company's chief executive and president say they will not take a salary for the rest of this year and will decline bonuses.
Delta Airlines (NYSE: DAL) May traffic rose 4.2% from the year-earlier month to 10.51 billion revenue passenger miles. Delta's May capacity increased 1.5% to 12.67 billion available seat miles. Load factor, or the percentage of seats filled with passengers, in May rose to 82.9% from 80.9%.
US Airways Group Inc. (NYSE: LCC) said its May mainline traffic rose 0.6% to 5.39 billion revenue passenger miles from last year. May mainline capacity was flat at about 6.54 billion available seat miles. Mainline load factor in May rose to 82.3% from 81.9% a year ago. It also said Wednesday it is cutting up to 1,100 more jobs, about 3% of its workforce.
First quarter results for apparel retailers reporting earnings on Wednesday were mixed, as consumers continue to scale back their spending.
Talbots Inc. (NYSE: TLB) first-quarter profit dropped 69% to 3 cents per share, hurt by noncore operations and restructuring charges. Same-store sales fell 9.8% during the quarter, and revenue fell 5% to $542.4 million, which missed the estimates of analysts polled by Thomson Financial. Shares rose 6% Wednesday to $7.88.
Hot Topic Inc. (NASDAQ: HOTT) first-quarter loss widened to 3 cents per share due to a 2.8% drop in same-store sales. Revenue rose 1.1% to $159 million. Analysts had expected a loss of 4 cents per share on $159.3 million in revenue. Shares fell 13 cents, or 2.6%, to $4.84.
Tween Brands Inc. (NYSE: TWB) first-quarter profit declined on a hefty charge, but results still topped Wall Street expectations. Adjusted earnings per share were 21 cents, and revenues rose to $251.7 million. Analysts had expected 16 cents in earnings per share and sales of $242 million. Total same-store sales decreased 1%. Shares fell more than 10% to $19.20, but rebounded 7.5% in after-hours trading.
Last week, 
Alcoa Inc.
U.S. stock futures were lower this morning, pointing to a weaker start Thursday following a reprieve Wednesday. Concerns over financials toll center stage again as oil continued to swing higher. Some economic data released later today may affect trading as well: Philadelphia-area poll of activity for August, leading indicators for July and weekly jobless claims.
Target
Rival home improvement chains 
Cramer on BloggingStocks: A troika of opportunity and trouble 
Before the bell: Wall Street headed higher; automakers, retailers in focus
Waiting for the other shoe to drop: The looming credit crisis
