Thursday's Stories of Interest
Stocks Crushed In Broad Sell-Off
1 The Dow and S&P 500 fell 2.3%, their worst losses since the Feb. 27 sell-off that sparked the last market correction. The NYSE composite tumbled 2.8% and the Nasdaq 1.8% as investors fled risk. That was after indexes pared losses in the final hour. Volume spiked up. Only 4 out of IBD's 197 industry groups rose.
Credit Market Fears Intensifying
2 The 10-year Treasury yield sank 12 basis points to 4.78%, the lowest since May as investors reprice risk worldwide. Brazil pulled a regular debt sale and Tyco Electronics a $1.5 high-grade bond sale, both citing market conditions. Bear Stearns seized assets of 1 near-worthless hedge fund. An Aussie hedge fund halted withdrawals from 2 funds on subprime losses.
New-Home Sales Plunge 6.6%
3 June sales fell to an annualized 834,000 units, far below views and just over March's 7-year low. Prices fell and the supply of homes grew. Several builders posted Q2 losses. Also, durable goods orders rose 1.4% in June, a little below views. And orders ex transportation and core capital goods orders fell, a bad sign for the factory and investment recoveries.
Exxon Misses, Shell Profit Rises
4 Exxon Mobil (NYSE:XOM - News), the world's largest publicly traded oil company, said Q2 profit rose 6.4% to $1.83 a share, missing views by 13 cents. Revenue dipped 0.7% to 98.35 bil. Weaker natural gas prices and soft demand in Europe. Rival Royal Dutch Shell said Q2 net profit rose 18% to $8.67 bil. Sales rose 2% to $84.9 bil. Refinery margins helped both firms. Exxon shares fell 5%. Shell lost 2%.
Dems Accuse Gonzales Of Lying
5 Four Dems on the Senate Judiciary Committee claim Att'y Gen'l Alberto Gonzales gave conflicting testimony and asked Solicitor General Paul Clement to launch a perjury probe. Meanwhile, Sen. Patrick Leahy said he'll subpoena Bush aide Karl Rove to testify about his role in the dismissal of 8 federal prosecutors. Bush has rejected similar subpoenas, citing executive privilege.
Comcast's Web Growth Slows
6 The No. 1 U.S. cable TV provider's Q2 profit met views for a 27% gain to 19 cents a share. Comcast's (NasdaqGS:CMCSA - News) revenue rose 31% to $7.7 bil, just ahead of forecasts. Digital video subscribers soared 144%. But basic video subscribers and smaller growth in high-speed Internet disappointed investors. Comcast also didn't raise views. Shares fell 5%.
Envoy: Surge Curbing Iraq Unrest
7 Deploying 30,000 extra troops to Iraq has curbed violence there, U.S. Ambassador Ryan Crocker said. "The surge has done very well," he told the AP. "There's no question." In Baghdad, though, a powerful car bomb killed at least 28 and hurt 95. Meantime, House Dems plan a new effort calling for Bush to pull out troops in 2 months.
ICE Profit Up On Futures Growth
8 The electronic energy market and soft commodity exchange said its Q2 profit rose 63.5% to 85 cents ex items, beating views by 10 cents. Revenue jumped nearly 86% to $136.7 mil, above views. Strong volume growth in its futures business boosted Intercontinental Exchange (NYSE:ICE - News)'s result. ICE shares rose 2% on a bad day for stocks.
Shoemakers Stepped It Up In Q2
9 Crocs' (NasdaqGS:CROX - News) EPS jumped 305% to 58 cents, 14 cents above forecasts. Sales rose 162% to $224 mil. The maker of trendy plastic footwear sees Q3 EPS of 58-62 cents, well over views. Deckers (NasdaqGS:DECK - News), maker of Ugg boots, said profit fell 5% to 20 cents, but that beat views by 9 cents. Sales grew 26% to $52.7 mil, beating views. Deckers also raised guidance. Shares of both firms surged late.
Ford Beats, Swings To Q2 Profit
10 The No. 2 U.S. automaker reported its first profit in 2 years. Ford (NYSE:F - News) swung to Q2 EPS of 13 cents ex items, beating views by 48 cents. Revenue grew 5.5% to $44.2 bil. The company's cost cutting in troubled U.S. operations helped. But the solid results could make it harder for Ford to win concessions with the UAW union in talks that began this week. Ford shares rose 1.5%.
Published By IBD
1 The Dow and S&P 500 fell 2.3%, their worst losses since the Feb. 27 sell-off that sparked the last market correction. The NYSE composite tumbled 2.8% and the Nasdaq 1.8% as investors fled risk. That was after indexes pared losses in the final hour. Volume spiked up. Only 4 out of IBD's 197 industry groups rose.
Credit Market Fears Intensifying
2 The 10-year Treasury yield sank 12 basis points to 4.78%, the lowest since May as investors reprice risk worldwide. Brazil pulled a regular debt sale and Tyco Electronics a $1.5 high-grade bond sale, both citing market conditions. Bear Stearns seized assets of 1 near-worthless hedge fund. An Aussie hedge fund halted withdrawals from 2 funds on subprime losses.
New-Home Sales Plunge 6.6%
3 June sales fell to an annualized 834,000 units, far below views and just over March's 7-year low. Prices fell and the supply of homes grew. Several builders posted Q2 losses. Also, durable goods orders rose 1.4% in June, a little below views. And orders ex transportation and core capital goods orders fell, a bad sign for the factory and investment recoveries.
Exxon Misses, Shell Profit Rises
4 Exxon Mobil (NYSE:XOM - News), the world's largest publicly traded oil company, said Q2 profit rose 6.4% to $1.83 a share, missing views by 13 cents. Revenue dipped 0.7% to 98.35 bil. Weaker natural gas prices and soft demand in Europe. Rival Royal Dutch Shell said Q2 net profit rose 18% to $8.67 bil. Sales rose 2% to $84.9 bil. Refinery margins helped both firms. Exxon shares fell 5%. Shell lost 2%.
Dems Accuse Gonzales Of Lying
5 Four Dems on the Senate Judiciary Committee claim Att'y Gen'l Alberto Gonzales gave conflicting testimony and asked Solicitor General Paul Clement to launch a perjury probe. Meanwhile, Sen. Patrick Leahy said he'll subpoena Bush aide Karl Rove to testify about his role in the dismissal of 8 federal prosecutors. Bush has rejected similar subpoenas, citing executive privilege.
Comcast's Web Growth Slows
6 The No. 1 U.S. cable TV provider's Q2 profit met views for a 27% gain to 19 cents a share. Comcast's (NasdaqGS:CMCSA - News) revenue rose 31% to $7.7 bil, just ahead of forecasts. Digital video subscribers soared 144%. But basic video subscribers and smaller growth in high-speed Internet disappointed investors. Comcast also didn't raise views. Shares fell 5%.
Envoy: Surge Curbing Iraq Unrest
7 Deploying 30,000 extra troops to Iraq has curbed violence there, U.S. Ambassador Ryan Crocker said. "The surge has done very well," he told the AP. "There's no question." In Baghdad, though, a powerful car bomb killed at least 28 and hurt 95. Meantime, House Dems plan a new effort calling for Bush to pull out troops in 2 months.
ICE Profit Up On Futures Growth
8 The electronic energy market and soft commodity exchange said its Q2 profit rose 63.5% to 85 cents ex items, beating views by 10 cents. Revenue jumped nearly 86% to $136.7 mil, above views. Strong volume growth in its futures business boosted Intercontinental Exchange (NYSE:ICE - News)'s result. ICE shares rose 2% on a bad day for stocks.
Shoemakers Stepped It Up In Q2
9 Crocs' (NasdaqGS:CROX - News) EPS jumped 305% to 58 cents, 14 cents above forecasts. Sales rose 162% to $224 mil. The maker of trendy plastic footwear sees Q3 EPS of 58-62 cents, well over views. Deckers (NasdaqGS:DECK - News), maker of Ugg boots, said profit fell 5% to 20 cents, but that beat views by 9 cents. Sales grew 26% to $52.7 mil, beating views. Deckers also raised guidance. Shares of both firms surged late.
Ford Beats, Swings To Q2 Profit
10 The No. 2 U.S. automaker reported its first profit in 2 years. Ford (NYSE:F - News) swung to Q2 EPS of 13 cents ex items, beating views by 48 cents. Revenue grew 5.5% to $44.2 bil. The company's cost cutting in troubled U.S. operations helped. But the solid results could make it harder for Ford to win concessions with the UAW union in talks that began this week. Ford shares rose 1.5%.
Published By IBD
posted by Stock Administrator @ 1:31 AM
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