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Dow Jones News Top Stories Of The Day – August 21, 2006 August 21, 2006

Posted by notapundit in Economic News, Main.
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LOWE’S DOWN ON 2Q MISS, LOWER OUTLOOK

Shares drop 4% as the home-improvement retailer posts net income of $935 million, or 60c a share, as sales rise 12% to $13.39 billion. Same-store sales increase 3.3%. Analysts expected earnings of 61c on revenue of $13.38 billion. Pressure to offer promotions hurts margins. For the fiscal year, Lowe’s now projects earnings of $2-$2.07 on 11% revenue growth. Prior forecast was EPS of $2.07-$2.11 and revenue growth of 13%.

AOL FIRES CHIEF TECH OFFICER, TWO OTHERS

AOL fires Maureen Govern and two others responsible for accidental release of Web-search data, which reignited debate about Internet privacy and whether search companies should be required by law to keep data they collect private.

FORD TO OFFER BROADER BUYOUT PLAN; SHARES FALL

Auto company is working on an extended buyout and early retirement offer for workers to be unveiled in mid-September when it details round two of its restructuring agenda. Shares fall more than 5% after a downgrade by Credit Suisse following Ford’s cut to 4Q North American production.

CITADEL AIMS TO REVISE TERMS FOR DISNEY DEAL

Citadel is looking to renegotiate the terms of its $2.7 billion deal for most of Walt Disney’s radio assets. The broadcaster hopes to alter the terms of debt financing amid a 27% slide in its stock price, due in part to sluggish earnings at Disney’s ABC radio.

GLENBOROUGH SALE SEEN AS GOOD DEAL FOR HOLDERS

California office REIT signs agreement to sell itself in a deal valued at $1.9 billion. Under the pact, Glenborough will receive $26 a share, which represents an 8% premium to the company’s closing price of $24.03 on Friday, and a 15% premium over the company’s 30-day average closing price.

11 CHARGED OVER ALLEGED UK ATTACK PLOT

Eleven people charged with conspiracy to commit murder in the foiled alleged plot to blow up as many as 10 trans-Atlantic jetliners, prosecutors say. One person is released without charge.

PRICE EROSION LIKELY EVEN IF PLAVIX STAY GRANTED

Economics professor at MIT testifies there will be ‘significant price erosion’ in the drug Plavix, even if a federal judge grants a request to stop a Canadian company from marketing a less expensive, generic version of the blood-thinner.

LOGICACMG TO BUY WM-DATA FOR $1.66B

U.K. IT firm agrees to pay cash and stock for WM-Data Nordic, a Swedish IT consultant. Analysts say the price tag is high and contend the deal will expose LogicaCMG to a market that is seeing a lot of structural change.

AMAZON MAY OFFER VIDEO DOWNLOADS

Internet retailer is testing a service that will allow U.S. customers to buy or rent digital videos, according to documents circulating on the Internet. The Unbox player is based on Microsoft’s software. Amazon shares slip 3%.

US TO SEND $230M IN AID TO LEBANON

President Bush announces help to support humanitarian and reconstruction work in Lebanon and calls for quick deployment of an international force to uphold the fragile cease-fire.

OLMERT RULES OUT SYRIA TALKS

Israeli prime minister says there won’t be peace talks with Syria as long as that country supports ‘terror organizations.’ Meanwhile, warplanes fly over Lebanon after its defense minister warns rogue Palestinian rocket teams against attacking Israel.

ONE WALL STREET ACCUSED OF FRAUD

The SEC files lawsuit to freeze assets of a group of New Yorkers accused of selling at least $1.6 million of fraudulent investments, many to elderly. CEO allegedly used proceeds to gamble and buy jewelry and adult entertainment.

GATEWAY IN TALKS WITH HARBERT, FIREBRAND

Gateway says it has held ‘preliminary conversations’ with investor group that includes Harbert Management Corp. Group has 10.2% stake in Gateway and recently sent a letter offering help in enhancing shareholder value. Gateway shares up 3%.

CRH BUYS ASHLAND PAVING FOR $1.3B

Irish building-materials maker will borrow to finance buying the Atlanta-based Ashland unit, which is being sold as the company focuses on its chemicals business. CRH gains 1%; Ashland falls 4%.

IRAN SAYS WILL STILL PURSUE NUCLEAR TECHNOLOGY

Iran’s supreme leader says Tehran will continue to pursue nuclear technology while refusing access to U.N inspectors wanting to examine its underground nuclear facility, accusing the U.S. of pressure despite assertions it isn’t seeking nuclear weapons.

SADDAM TRIAL ADJOURNED UNTIL TOMORROW

Defiant Saddam Hussein shouts at prosecutors and refuses to enter a plea at the opening of his second trial in which he faces charges of genocide and war crimes connected to his offensive against Kurds nearly two decades ago.

CINK, VERPLANK ADDED TO RYDER CUP

Veterans are picked by U.S. captain Tom Lehman after failing to make the team as automatic selections. They will join others including Woods, Mickelson and Furyk at next month’s match in Ireland.

======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======

OPTIONS REPORT
Traders Position For Drop In SanDisk
Although SanDisk launches a new music player to compete with iPod, nearly 25,000 puts on company change hands as investors expect pullback with stock surging in last four weeks.

TIP SHEET
SunAmerica Adds Spice To Growth & Income
SunAmerica’s 12-year-old fund of 30 stocks draws on diverse investment styles of three stock pickers, writes Ann Keeton. The managers, Tom Marsico, Steve Neimeth and William Fries opt for growth, value and ‘swing vote’ stocks.

============ U.S. MARKETS ACTION ===========
DJIA down 31.86 points to 11349.13
NASDAQ down 14.23 points to 2149.61
S&P 500 up 4.82 points to 1302.30
10-year T-note up 5/32 at 100 14/32 yield 4.835
NYMEX Spot Crude up $1.20 at $73.30/bbl at close
Dollar/Euro up 0.0066 at 1.2891

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