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Gold Index
Updated 05-Jan-09
Quotes at time of story, top stories today:
Navistar's '09 Profit View Comes Up Short
Despite issuing downside guidance for 2009, shares of truck maker Navistar International (NAV 27.12, +2.69) are more than 10% higher in Monday's early trade.
Navistar said this morning that it expects earnings for fiscal 2009 (ending in October) of between $5.10 and $5.60 per share. The current First Call consensus calls for earnings of $5.95 per share.
The company said "Our growth in the commercial truck market outside the U.S. and Canada is due in part to our growing military business and expansion into new business opportunities and will factor into our ability to deliver profitability in 2009 despite a weak North American business climate."
Construction Spending Drops 0.6%
Private nonresidential construction posted a 0.7% increase for November. Public construction posted a strong 1.4% gain. Those two surprising increases helped offset a not so surprising 4.2% decline in residential construction spending.
Total construction spending thus fell 0.6% compared to expectations of a 1.4% drop.
The data won't alter expectations, however.
Declines in nonresidential construction (mostly office buildings) are highly likely in the months ahead. The lingering gains at present can't continue.
Public (government) spending might manage to hold reasonably well, but it is only 30% of total construction spending.
Larger drops in spending are likely for December and subsequent months.
December Sales at Walgreen Rise 4.9%
Walgreen (WAG 26.27, +0.72) said that comparable store sales rose 4.9% in December.
Comparable pharmacy sales increased 8.5% in December. The company said that comparable pharmacy sales were negatively impacted by 2.5 percentage points due to generic drug introductions in the last 12 months.
Competitor Rite Aid (RAD 0.34) said that same-store sales decreased 0.2% in December over the prior year period. Rite Aid also said that pharmacy sales were negatively impacted by generic drug introductions, but still managed to increase 1.2% year-over-year.
Progress Energy '09 Outlook In-Line
Progress Energy (PGN 40.65) issued updated guidance for the current year that falls in the low end of the previously announced range. The company also issued in-line guidance for its 2009 fiscal year.
For fiscal 2008, Progress Energy expects earnings per share in the lower end of the range between $2.95 and $3.05. The current First Call consensus stands at $3.01.
For fiscal 2009, the company expects earnings per share between $2.95 and $3.15; the consensus estimate stands at $3.11.
In addition, the company said it is reducing its planned capital expenditures for 2009 by approximately $250 million.
Raleigh, N.C.-based Progress Energy operates more than 21,000 megawatts of generation capacity and has $9 billion in annual revenues.
Obama Working on Tax Cut: WSJ
A $300 billion tax cut for individuals and businesses is being worked on by President-elect Obama and congressional Democrats, according to The Wall Street Journal.
The tax cut would account for roughly 40% of a fiscal stimulus package that could reach $775 billion in two years, according to the report. The Journal said a large portion of the tax cuts would be aimed at low- and moderate-income workers.
The increased focus on tax cuts in the stimulus plan is expected to help garner Republican support.
Apple's Jobs Admits Hormone Imbalance
Earlier this morning Apple's (AAPL 90.75) chief executive, Steve Jobs,
addressed concerns regarding his health in a letter amid mounting rumors that
followed his decision not to provide the keynote speech at the industry trade
show, Macworld.
Jobs indicated he is subject to a hormone imbalance that has made it difficult
to retain proteins. The remedy for this nutritional problem is relatively simple
and straightforward.
Jobs will continue as CEO during treatment, helping put to rest concerns that
his condition would make him less available to preside over his company.
Jobs also noted he will be the first one to tell Apple's board of directors if
he can no longer continue to fulfill his duties.
Pfizer Open to Opportunities: Report
The CEO of Pfizer (PFE 18.27) told the Financial Times that the company is open to acquisitions.
Chief Executive Jeff Kindler told the paper, "The real goal is to grow revenues." In a Financial Times interview, Kindler continued, "We are open to opportunities and constantly looking at those which are big, small and in-between."
Pfizer's cholesterol drug Lipitor, with sales of $12 billion a year, is expected to encounter stiff competition in 2011 when generic versions will hit the market.
Kindler said any new acquisitions will be designed to "generate new and diverse sources of revenue growth and cost structures to position us to be strong after Lipitor."
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