Stock Market Wrapup June 14th
By the BullMarket.com Staff
Traders seem to have come to grips with the higher 10-year bond yields as the Dow, Nasdaq and S&P 500 were all up on the day. The core producer price index (PPI) rose slightly for May (0.2%) after remaining flat in April. The core PPI removes food and energy costs to calculate inflation, and the belief is that with inflation in check, the Fed will not be moved to raise rates.
Ford (NYSE: F) announced that 27,000 hourly employees had accepted early retirement or buyout packages, allowing the troubled automaker to work to restructure its staff to be more in line with demand for its products. Approximately half of them are not eligible for retirement benefits, which will provide a savings in health insurance costs. Another 10,000 employees are eligible for one of these programs.
As reports continue to come in, detailing more and more subprime foreclosures, Goldman Sachs (NYSE: GS) and Bear Sterns (NYSE: BS) announced second-quarter earnings. Both suffered hits, as Bear Sterns' profits dropped -10% excluding a writedown, and Goldman Sachs' climbed a paltry 1%. Bear shares rose slightly, while Goldman shares fell -3.4%. Freddie Mac (NYSE: FRE) reported results today as well, posting a loss. It lost -$211 million, or -46 cents a share, after showing a $2 billion profit last year. BullMarket.com subscribers can read more about Goldman Sachs' quarter in today's edition.
Del Monte Foods (NYSE: DLM) also released earnings today, with Q4 sales increasing 17.6% and full-year sales up 13.9%. Q4 profits, however, fell to $36.7 million, or 18 cents per share, from $57.9 million, or 29 cents per share, in the year-ago quarter. Looking forward, the company expects fiscal 2008 EPS of between 70-74 cents and revenue growth of 5-7%. The stock rose 4.8%.
Midwest Airlines (Amex: MEH) shareholders elected a new board, appointing three directors who were nominated by AirTran Airlines (NYSE: AAI). AirTran has expressed an interest in acquiring Midwest Airlines, which until now had been resisted by the Midwest board. The board will now entertain a presentation by AirTran, but has not decided whether or not to enter into negotiations. AirTran is offering $15 per share for the regional carrier. The vote count is still preliminary and must be certified.
Traders seem to have come to grips with the higher 10-year bond yields as the Dow, Nasdaq and S&P 500 were all up on the day. The core producer price index (PPI) rose slightly for May (0.2%) after remaining flat in April. The core PPI removes food and energy costs to calculate inflation, and the belief is that with inflation in check, the Fed will not be moved to raise rates.
Ford (NYSE: F) announced that 27,000 hourly employees had accepted early retirement or buyout packages, allowing the troubled automaker to work to restructure its staff to be more in line with demand for its products. Approximately half of them are not eligible for retirement benefits, which will provide a savings in health insurance costs. Another 10,000 employees are eligible for one of these programs.
As reports continue to come in, detailing more and more subprime foreclosures, Goldman Sachs (NYSE: GS) and Bear Sterns (NYSE: BS) announced second-quarter earnings. Both suffered hits, as Bear Sterns' profits dropped -10% excluding a writedown, and Goldman Sachs' climbed a paltry 1%. Bear shares rose slightly, while Goldman shares fell -3.4%. Freddie Mac (NYSE: FRE) reported results today as well, posting a loss. It lost -$211 million, or -46 cents a share, after showing a $2 billion profit last year. BullMarket.com subscribers can read more about Goldman Sachs' quarter in today's edition.
Del Monte Foods (NYSE: DLM) also released earnings today, with Q4 sales increasing 17.6% and full-year sales up 13.9%. Q4 profits, however, fell to $36.7 million, or 18 cents per share, from $57.9 million, or 29 cents per share, in the year-ago quarter. Looking forward, the company expects fiscal 2008 EPS of between 70-74 cents and revenue growth of 5-7%. The stock rose 4.8%.
Midwest Airlines (Amex: MEH) shareholders elected a new board, appointing three directors who were nominated by AirTran Airlines (NYSE: AAI). AirTran has expressed an interest in acquiring Midwest Airlines, which until now had been resisted by the Midwest board. The board will now entertain a presentation by AirTran, but has not decided whether or not to enter into negotiations. AirTran is offering $15 per share for the regional carrier. The vote count is still preliminary and must be certified.
posted by Stock Administrator @ 5:39 PM
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