** MORNING WRAP **
** US: IN PLAY TODAY **
- Tuesday’s earnings calendar is a light one, with the only notable reports
coming from homebuilder Lennar Corp. (LEN) before the market open, and Jabil
Circuit (JBL), Paychex (PAYX), and Red Hat (RHAT), which are scheduled to report
after the close. On the economic front, September Consumer Confidence
(consensus 103.0) will be released at 16:00 CET, together with the Richemond
Fed Manufacturing Index (consensus 7).
- PCM Sierra (-10% after hours) said: “Business activity in the third quarter is
less than earlier expected in the communications area, particularly in Asia,
while activity in enterprise storage continues to improve as previously
expected…” Company said it now expects Q3 revs to be in the range of $114-$116
mln (consensus $123.8 mln), down from its previous outlook announced on the
July 20 of $122-$124 mln.
- Lowe’s Co. said current sales are trending below its prior expectations. FY
diluted EPS is seen at or near the low end of its prior guidance range of
$2.00 to $2.07. Diluted EPS should rise 10% to 14% in 2007 and 12 to 16% in
2008.
** EUROPE: IN PLAY TODAY **
- BHP Billiton target price cut to 1550p from 1600p by UBS. Rio Tinto target
price cut to 4100p from 4200p by UBS. Anglo American target price cut
to 3000p from 3100p by UBS.
- DaimlerChrysler is in talks with Chery Automobile in order to sell
Chinese-built subcompact cars in the US and Europe.
- Vivendi offered to buy Deutsche Telekom’s stake in Poland’s mobile-phone
network for E2.5bln in order to gain control of the company and resolve
an argument over its ownership.
- Metrovacesa will rejoin the Ibex benchmark stock index on Oct. 3.
- Aegon target price raised to E18 from E17 by Lehman Brothers.
- Clariant raised its price globally by 4-6% across all product lines in order
to cope with higher raw material costs.