Dow Jones News Top Stories Of The Day – January 30, 2007 January 30, 2007Posted by notapundit in Economic News.
CRUDE OIL SOARS ON SAUDI OUTPUT CUT
Futures jump $2.92 a barrel as The Wall Street Journal reports Saudi Arabia will lower its oil output by 158,000 barrels a day to comply with new OPEC cuts that become effective Thursday. Also pushing prices higher is winter temperatures invading the Northeast and an 11.6% surge in natural-gas prices. Nymex March crude rises 5%, closes at $56.93 a barrel.
3M SHARES DOWN AS 4Q MISSES VIEWS
Shares fall 5% as manufacturing firm reports profit of $1.18 billion, or $1.57 a share, helped by 47c per share gain. Sales rise 9% to $5.78 billion. Excluding special items, 3M earns $1.10, 4c below estimates. Firm issues tepid outlook.
ALLSTATE NET UP 17% ON FEWER HURRICANES
Insurer’s 4Q net income rises to $1.21 billion, or $1.93 a share, from $1.04 billion a year earlier. Operating income comes to $1.78 a share, or 6c less than analysts’ estimate. Revenue climbs 1.8% to $9.1 billion.
P&G 2Q NET RISES 12%, BOOSTS OUTLOOK
Firm earns $2.86 billion, or 84c a share, beating the high end of its estimate by 1c. Sales increase 7.6% to $19.73 billion. Company sees fiscal-year results at or above the high end of its expectations, but 3Q earnings may miss forecasts. Shares edge lower.
UPS NET UP 7.5%; OUTLOOK DISAPPOINTS
Package deliver has 4Q net income of $1.13 billion, or $1.04 a share, amid higher average daily volume and solid pricing. Revenue rises 5.6% to $12.62 billion. Shares fall 1% as 2007 earnings view is below expectations.
FLEXTRONICS 3Q PROFIT CLIMBS
Maker of computing and telecom equipment posts a fiscal 3Q profit of $119 million, or 20c a share, up from $42 million a year ago, on revenue of $5.42 billion. Excluding items, EPS comes to 23c. Analysts expected EPS of 22c.
JUNIPER 4Q REVENUE UP; AGAIN FAILS TO REPORT EARNINGS
Networking equipment maker says 4Q revenue adds 4% over last year, but the company is still grappling with the fallout from a stock-options investigation and did not report earnings for the third straight quarter.
SANDISK POSTS 4Q LOSS ON CHARGES
Maker of flash memory technology swings to a 4Q loss of $35 million, or 17c a share, on acquisition charges, as sales surge 55% to $1.2 billion due to higher NAND flash chips demand.
CHUBB 4Q NET RISES 6%
Insurance holding company 4Q profit rises to $654 million, or $1.56 a share, from $615 million, or $1.46 a share, a year earlier, due to growth in premiums written.
ICAHN SEEKS SEAT ON MOTOROLA BOARD
Cellphone maker jumps 7% as company discloses activist investor Carl Icahn is seeking nomination to Motorola’s board. He owns a 1.4% stake in the firm, which has been beset of late by various struggles.
FDA PLANS TEST OF POST-MARKET REVIEW OF NEW DRUGS
Administration is planning a pilot program that would include a review of safety profiles for some newly approved drugs after they are on the market.
KKR FINANCIAL TO DROP REIT STRUCTURE
Publicly traded affiliate of buyout giant Kohlberg Kravis Roberts is divesting its residential mortgage portfolio and converting from a real estate investment trust to a limited-liability company.
DREAMWORKS, AARDMAN TO END PACT
DreamWorks Animation and Aardman Animations won’t continue their exclusive partnership in creating animated films. Deal began in 1999, and they made three films, including “Wallace & Gromit: The Curse of the Were-Rabbit.”
AFLAC 4Q NET FALLS ON LOWER INVESTMENT GAINS
Insurer’s 4Q earnings fall to 332 million, or 67c, from $364 million, or 72c, a year earlier, due to lower realized investment gains. Revenue rises 3.4% to $3.69 billion from $3.57 billion a year ago.
DOE SAYS SPR GROWTH MAY INCLUDE NEW PRODUCT STOCKPILE
U.S. Department of Energy is considering several dramatic changes to the makeup of the strategic petroleum reserve, including devoting some of the planned 750 million barrel expansion to oil products for the first time, says official.
SEC OKS GOLDMAN COMMISSION ARRANGEMENT
Goldman Sachs gets a green light from SEC to expand the types of firms it can include in so-called client commission arrangements, a means by which money managers can pay for stock research.
NORTHWEST HAS NO PLANS TO MERGE THIS YEAR
Northwest plans to emerge from bankruptcy as an independent carrier and stay that way through 2007, says CEO Doug Steenland. Northwest has hired a merger consulting firm, but says that is so it can be prepared to respond to merger offers.
MERCK 4Q NET FALLS 58%, BACKS GUIDANCE
Drug firm posts net income of $473.9 million, or 22c a share, as sales of its blockbuster drug Zocor plummet 65%. Excluding charges, it earns 50c, matching estimates. Sales rise 4.8% to $6.04 billion, above analysts’ estimate of $5.37 billion.
WYETH 4Q PROFIT SURGES 17% BUT MISSES VIEWS
Drug company posts net income of $855.4 million, or 63c a share. Excluding items, earnings are 66c a share. Sales rise 10% to $5.22 billion. Analysts expected earnings of 71c on sales of $5.12 billion. Shares fall 2%.
======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======
Allstate, NutriSystem Down
Insurer’s shares fall nearly 3% in late trade after company’s 4Q earnings come in short of Wall Street’s expectations. Meanwhile, shares of NutriSystem drop nearly 11% after company puts its 1Q outlook below analysts’ projection.
Up; Energy, Trucking, Steel Strong
Small stocks rise and Russell 2000 index sets a new closing record. Offshore driller Atwood Oceanics adds 4.1%, mimicking surge on New York Mercantile Exchange. Trucking company Arkansas Best rises 3% following Con-Way’s 4Q earnings.
============ U.S. MARKETS ACTION ===========
DJIA up 32.53 points to 12523.31
NASDAQ up 7.55 points to 2448.64
S&P 500 up 8.20 points to 1428.82
10-year T-note down 4/32 at 98 2/32 yield 4.873
NYMEX Spot Crude up $2.96 at $56.97/bbl at close
Dollar/Euro down 0.0005 at 1.2965