Tuesday, July 10, 2007

Alcoa Inc. said late Monday earnings slipped in the second quarter, pinched by curtailment costs at two smelters and an ongoing bid for Alcan Inc., while revenue climbed on higher aluminum prices and volumes.
Kicking off second-quarter earnings season, the New York-based aluminum producer said net income for the three months ended June 30 fell to $715 million, or 81 cents a share, from $744 million, or 85 cents, in the year-ago quarter. Marketwatch
Not a Great way to start earnings season.

The Home Depot Inc., the world's largest home improvement store chain, warned Tuesday that its earnings will decline this year more than previously expected because of weak conditions in the housing market and the sale of its wholesale distribution business. AP
Housing weakness continues.

Sears second-quarter earnings will likely fall well below Wall Street expectations due to disappointing sales of home appliances and other products at both Sears and Kmart, the department store chain said Tuesday. AP
Might be a good time to short the retailers and big department stores.

Pepsi Bottling Group Inc., the world's second-largest soft-drink distributor, posted profit that exceeded analysts' estimates and raised its earnings forecast on increased demand for Lipton tea and Aquafina water.

Second-quarter net income increased 9.5 percent to $162 million, or 70 cents a share, from $148 million, or 61 cents, a year earlier, the Somers, New York-based company said today in a statement. The results topped analysts' estimates by 7 cents. Bloomberg
International growth is the prime factor

VMware, the fast-growing software maker, could be worth nearly $10bn after its flotation, according to filings with US regulators.

The company, which is controlled by EMC, the world's biggest maker of data storage equipment, said on Monday in a filing with the Securities and Exchange Commission that it expected to sell up to 37.95m shares at $23 to $25 apiece in its initial public offering.MSNBC
Appears to be an excellent IPO to get into and sell

Standard & Poor's may cut credit ratings on $12 billion of bonds backed by subprime mortgages, citing expectations that losses will continue. Bloomberg
Only $12 billion ?

China executed the former head of the drug regulator for taking bribes, signaling the government's determination to tackle a series of health scares over fake medicines and unsafe food that has drawn international criticism.

Zheng Xiaoyu's death was reported by the state-run Xinhua News Agency today as officials separately outlined a plan to improve drug and food safety, conceding the system isn't strong enough and the trend ``isn't promising.'' Bloomberg
Maybe they need to start doing this to our elected officials

The overseas markets are mixed while the futures are indicating a lower open for the US markets. There is likely to be relative strength in tech while retail will be weak.

1 comment:

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