FINANCIAL NEWS

By William L. Watts, MarketWatch

 

FRANKFURT (MarketWatch) — U.S. stock futures traded near unchanged on Wednesday, with investors reluctant to press further gains absent any fresh compelling economic data a day after Dow industrials briefly topped the 13,000 level for the first time since 2008. 

Futures on the Dow Jones Industrial Average DJH2 -0.01%  slipped 8 points to 12,937. S&P 500 Index futures SPH2 -0.07%  fell 1.3 points to 1,358.80, while Nasdaq 100 futures NDH2 +0.02%  lost 0.5 point to 2,590.50. 

Futures erased modest gains, following European equities, after a preliminary composite purchasing managers index for the 17-nation euro zone unexpectedly showed business activity across the region contracted in February. Europe Markets 

 

 

Australia's government in crisis The surprise resignation of Kevin Rudd while on a trip to the U.S. opens the door for the foreign minister to contest Prime Minister Julia Gillard. 

A strong rally by Wall Street has left market participants “fully invested” for now, with markets requiring more fodder to continue the rally, said Steen Jakobsen, chief economist at Saxo Bank. A failure to close above the 1,370 level by the S&P 500 SPX +0.07%  leaves the market vulnerable to a near-term downturn, he said. 

Investors are also wary of fuel prices, fearing rising gasoline and other energy costs will crimp consumer spending, Jakobsen said. Nymex crude-oil futures topped $105 a barrel this week amid worries over Iran. 

April oil futures CLJ2 -0.29%  traded down 40 cents in electronic trade to change hands at $105.84 a barrel. 

The S&P 500 has gained 8.5% since the beginning of the year, while the Dow Jones Industrial Average DJIA +0.12%  has added 6.5% and the Nasdaq Composite Index COMP -0.11%  gained 13.9% over the same period. 

The U.S. economic calendar remains light, with existing home sales for January scheduled for release at 10 a.m. Eastern time.

On the earnings front, computer maker Dell Inc. DELL -6.65%  on Tuesday reported a fiscal fourth-quarter profit of 51 cents a share on revenue of $16.03 billion. Wall Street analysts surveyed by FactSet Research had forecast profit of 52 cents a share on revenue of $15.97 billion.

Dell shares dropped nearly 6% in Frankfurt trading activity. 

Toll Brothers Inc. TOL -3.38%  , the Horsham, Pa., luxury-home builder, on Wednesday morning reported a swing to a fiscal-first-quarter loss from a year-earlier profit on 3.6% lower revenue.

Citigroup Inc. C -0.75%  could face a multibillion-dollar write-down as it begins to unwind its minority investment in the Morgan Stanley Smith Barney brokerage, The Wall Street Journal reported Wednesday. Morgan Stanley MS -0.26%  has the right to start buying Citigroup out of the venture this spring.

The Dow ended Tuesday’s session at 12,965.69, a gain of 15.82 points, after rising above the 13,000 level earlier in the day. The index last closed above 13,000 on May 19, 2008. 

The S&P 500 ended Tuesday at 1,362.21, a gain of just under 1 point, after trading within just points of 1,370 — its May 2011 high. The Nasdaq Composite fell 3.21 points Tuesday to 2,948.57. 

William L. Watts is a reporter for MarketWatch in Frankfurt.

Commentary Feb. 22, 2012

Stocks May Move Modestly Lower In Early Trading - U.S. Commentary

After turning in a mixed performance in the previous session, stocks may move to the downside in early trading on Wednesday. The major index futures are currently pointing to a modestly lower open for the markets, with the Dow futures down by 9 points. (Feb 22, 2012) Full Article

Economic News

Australia Westpac Leading Index Signals Sub-Par Growth

An indicator of Australian economic activity pointed to sub-par growth for the economy for the three to nine months into the future, while at the same time brushing aside concerns about a sharp slowdown. (Feb 22, 2012) Full Article

China Manufacturing Sector Contracts For Fourth Month

China's factory activity shrank for a fourth consecutive month in February, as weak domestic demand as well as external weakness added downside risks to growth, a survey by Markit Economics revealed Wednesday. (Feb 22, 2012) Full Article

Eurozone Private Sector Contracts Unexpectedly In February

Eurozone private sector business activity unexpectedly slipped back to contraction in February, fueling concerns that the economy may be sliding into a recession amid the region's prolonged debt crisis. The composite output index fell to 49.7 in February from 50.4 in January. Economists expected the index to remain almost steady at 50.5. An index reading below 50 indicates contraction in activity. Nonetheless, the composite index was the second-highest in six months. (Feb 22, 2012) Full Article

Bank Of England Policymakers Split 7-2 On GBP50 Bln QE Boost

Bank of England's Monetary Policy Committee (MPC) decided to lift the asset purchase programme by GBP 50 billion in February through a split vote as two members called for larger stimulus, the minutes of the meeting showed Wednesday. (Feb 22, 2012) Full Article

Fitch Cuts Greece Ratings; Says Default 'Highly Likely' In Near Term

Fitch Ratings downgraded Greece's credit rating on Wednesday following yesterday's Eurozone agreement on a second bailout for the country and said a default is highly likely in the near term. The agency cut Greece's Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'C' from 'CCC'. The Short-term foreign currency rating was affirmed at 'C'. Fitch also affirmed the euro area Country Ceiling at 'AAA', which is applicable to all euro area member states. (Feb 22, 2012) Full Article

Earnings News

Dell Q4 Profit Slides

Dell Inc. (DELL) said Tuesday fourth-quarter profit slid year-over-year largely hurt by shrinking margins. Adjusted earnings fell short of the market view, but revenues topped. (Feb 22, 2012) Full Article

Intuit Q2 Profit Climbs

Intuit Inc. (INTU) Tuesday reported a rise in second-quarter profit as increasing revenue per customer pushed Small Business revenues up 9 percent. Both adjusted earnings and revenues exceeded Street estimates. The company also lifted its third-quarter and fiscal 2012 earnings guidance. (Feb 22, 2012) Full Article

Nabors Industries Sinks to Q4 Loss

Nabors Industries Ltd. (NBR) Tuesday posted a fourth-quarter loss, reflecting a hefty one-time charge. Adjusted earnings and revenues, however, beat analysts' estimates. (Feb 22, 2012) Full Article

Toll Brothers Posts Q1 Loss

Toll Brothers Inc. (TOL) Wednesday declared a fourth-quarter loss primarily due to a lower tax benefit and also lower home building deliveries. The results missed the Street view. (Feb 22, 2012) Full Article

MGM Resorts Q4 Loss Shrinks

MGM Resorts International (MGM) Wednesday said fourth-quarter loss narrowed from last year reflecting a sharply higher tax benefit and the consolidation of MGM China. Adjusted loss, however, was wider than Street expectations, while revenues surpassed. (Feb 22, 2012) Full Article

Dollar Tree Q4 Profit Rises

Dollar Tree Inc. (DLTR) reported Wednesday a higher fourth-quarter profit on the back of 7.3 percent growth in comparable store sales. The results surpassed market estimates. The company also issued its first-quarter and fiscal 2012 financial guidance, with first-quarter earnings and revenues estimates missing market consensus. (Feb 22, 2012) Full Article

TJX Companies Q4 Profit Jumps

The TJX Companies Inc. (TJX) announced Wednesday a jump in fourth-quarter profit as a result of a 7 percent rise in comparable store sales. Earnings were on par with analysts' estimates, but revenues disappointed. The company also forecast first-quarter and fiscal 2012 earnings and adjusted earnings. It also proposed a 21 percent hike in quarterly dividend, and reported plans for a share buyback worth between $1.2 billion and $1.3 billion in the current fiscal year. (Feb 22, 2012) Full Article

Corporate News

Johnson & Johnson Says Alex Gorsky to Succeed Bill Weldon as CEO

Johnson & Johnson (JNJ) announced Tuesday the appointment of Alex Gorsky as its chief executive officer, or CEO, with effect from April 26, 2012. Gorsky, currently vice chairman of the Executive Committee and in charge of the Medical Devices and Diagnostics Group, is expected to succeed Bill Weldon, who may continue as Chairman of the Board. (Feb 22, 2012) Full Article

Broker Ratings Changes

Nomura Cuts Philip Morris International (PM) To Reduce From Neutral With $75 up from $70 Price Target

(Feb 22, 2012) 

Robert W. Baird Downgrades LifePoint Hospitals Inc (LPNT) To Neutral From Outperform With $41 down from $43 Price Target

(Feb 22, 2012) 

Robert W. Baird Initiates Multi Color Corp (LABL) At Neutral With $26 Price Target

(Feb 22, 2012) 

Robert W. Baird Raises URS Corp. (URS) To Outperform From Neutral With $55 up from $40 Price Target

(Feb 22, 2012) 

Todays WS Events

Air Products To Present At Barclays Capital Conference; Webcast At 8:05 AM ET

Air Products (APD) CFO, Paul Huck will present at the Barclays Capital Industrial Select Conference in Miami, Florida. The event is scheduled to begin at 8:05 AM ET on February 22, 2012. To access the webcast, log on at www.airproducts.com/investors/webcasts-and-presentations.aspx (Feb 22, 2012) 

Analog Devices Q1 12 Earnings Conference Call At 5:00 PM ET

Analog Devices, Inc. (ADI) will host a conference call at 5:00 PM ET on February 22, 2012, to discuss Q1 12 earnings results. To access the live webcast, log on to investor.analog.com To listen to the call, dial 706-634-7193 with password "ADI". For a replay call, dial 855-859-2056 with conference ID:49242709. (Feb 22, 2012) 

Campbell Soup To Present At Consumer Analyst NY Conference; Webcast At 10:30 AM

Campbell Soup Co. (CPB) will present at the Consumer Analyst Group of New York Conference. The event is scheduled to begin at 10:30 AM ET on February 22, 2012. To access the live webcast, log on at investor.campbellsoupcompany.com (Feb 22, 2012) 

Chesapeake Q4 11 Earnings Conference Call At 9:00 AM ET

Chesapeake (CHK) will host a conference call at 9:00 AM ET on February 22, 2012 to discuss Q4 11 Earnings results. To access the live webcast, visit www.chk.com To access the call, dial 913-312-0684 or 800-289-0546 with the passcode: 4996325. For replay, dial 719-457-0820 or 888-203-1112 with the passcode: 4996325. (Feb 22, 2012) 

Coca-Cola Company To Present At Consumer Analyst Conference; Webcast At 12:30 PM

The Coca-Cola Company. (KO) will present at the Consumer Analyst Group of New York (CAGNY)Conference in Boca Raton, Fla. The event is scheduled to begin at 12:30 PM ET, on February 22, 2012. To access the live webcast, log on at http://www.thecoca-colacompany.com/investors/index.html (Feb 22, 2012)

Gannett To Present At Investor Day Presentations; Webcast At 8:30 AM ET

Gannett Co. Inc. (GCI) will hold its Investor Day presentation. The event is scheduled to begin at 8:30 AM ET on February 22, 2012. To access the live webcast, log on at www.gannett.com (Feb 22, 2012) 

Hewlett-Packard Q1 12 Earnings Conference Call At 5:00 PM ET

Hewlett-Packard Company (HPQ) will host a conference call at 5:00 PM ET on February 22, 2012, to discuss Q1 12 earnings results. To access the webcast, log on to www.hp.com/investor/2012Q1webcast (Feb 22, 2012) 

Illinois Tool To Present At Barclays Capital Conference; Webcast At 1:20 PM ET

Illinois Tool Works Inc. (ITW) will present at the Barclays Capital Industrial Select Conference at the Loews Miami Beach Hotel, Miami Beach, Florida. The event is scheduled to begin at 1:20 PM ET, February 22, 2012. To access the webcast, log on to http://cc.talkpoint.com/barc002/022212a_lp/?entity=20_18FCJKD (Feb 22, 2012)

Kellogg Company To Present At CAGNY Conference; Webcast At 8:00 AM ET

Kellogg Company. (K) CEO, John Bryant will present at the 2012 Consumer Analyst Group of New York Conference. The event is scheduled to begin at 8:00 AM ET on February 22, 2012. To access the live audio webcast, log on at http://investor.kelloggs.com (Feb 22, 2012) 

R.R. Donnelley Q4 11 Earnings Conference Call At 10:00 AM ET

R.R. Donnelley (RRD) will host a conference call at 10:00 AM ET on February 22, 2012 to discuss Q4 11 Earnings results. To access the live webcast, visit http://www.rrd.com To access the call, dial 847-413-9014 with the confirmation number 31610164. For replay, dial 630-652-3042 with the passcode 9850121#. (Feb 22, 2012) 

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