** MORNING WRAP **
February 7th, 2007** US MARKETS **
Dow 0,04%; Nasdaq 0,04%; S&P 0,07%; Soxx -0,54%; Russel2k 0,46%; DJAIG 0,07%;
10yr Bond -0,01%; 10yr Yield 4,77%; Crude future 59,36; Gold 654,75
| Utilities 0,76%| Industrials 0,03%| Healthcare -0,23%| Technology -0,24%|
Financials 0,48%| ConsStaples -0,23%| Energy -0,25%| ConsDisc 0,34%| Telecom
-0,4%| Materials 0,68%
- Cisco Systems Inc. gained $1.20, or 4.4 percent, to $28.48 in extended
trading. The world’s biggest maker of computer-networking equipment said
second-quarter profit excluding some costs was 33 cents a share. That exceeded
the 31-cent average of analysts’ estimates compiled by Bloomberg. Third-
quarter sales will rise 19 to 20 percent, Chief Executive Officer John Chambers
forecast. Analysts expect sales to rise 17 percent from a year earlier to $8.57
billion, according to a Bloomberg survey.
- Corporate financials will again be at the front of investors’ minds on
Wednesday, as fourth quarter earnings season winds down. Among the most notable
companies expected to post quarterly results before the bell are Apollo Group
(APOL), AutoNation (AN), Cigna (CI), Devon Energy (DVN), DirecTV (DTV), Polo
Ralph Lauren (RL), Sara Lee (SLE), and Whirlpool (WHR). After the close, Dow
component Walt Disney Co. (DIS) heads a list that also includes Electronic Data
Systems (EDS), Prudential Financial (PRU), Akamai Technologies (AKAM), Maxim
Integrated Products (MXIM), and Amkor Technology (AMKR).
- On the economic front, a preliminary read on Q4 Productivity will hit the
wires at 14:30 CET, while the December Consumer Credit report will be out at
21:00 CET. The Energy Department’s weekly inventories report at 16:30 CET will
also draw some attention, given the recent rise in oil prices.
** ASIAN MARKETS **
Nikkei -0,66%; Kospi -0,16%; HSI -0,18%; Taiwan -0,33%; China 0,34%; India
0,73%; Thailand 0,49%; Australia 0,38%
- United Microelectronics Reports 87 Percent Jump in Fourth-Quarter Profit
- BHP to Return $10 Billion to Shareholders; Goodyear to Retire by Year-End
- Asian Phone Stocks Rally as DoCoMo, Singapore Telecom Gain; China Advances
- China Minsheng May Sell Up to $3.1 Billion of Stock to Replenish Capital
- Stockland Buys U.K. Developer Halladale for $335 Million to Enter Europe
- China May Post $15.5 Billion January Trade Surplus, Spurring Calls on Yuan
- Citigroup Wins Right to Question Its Executives in Australia Insider Trial
- Indonesian Rupiah to Rise 7 Percent as Funds Invest in Stocks, HSBC Says
- Bank of Japan to Raise Rates in February, Malpass Says: Chart of the Day
- Malaysian Equities to Outperform Region on Lower Rates, Deutsche Bank Says
** EUROPE: IN PLAY TODAY **
- Roche Holding AG, the world’s biggest maker of cancer medicines, said
full-year profit jumped 33 percent as doctors prescribed more of its
tumor-fighting treatments and demand rose for the Tamiflu antiviral drug.
Net income rose to 7.88 billion Swiss francs ($6.35 billion) from 5.92 billion
francs a year earlier, the Basel, Switzerland-based company said in a statement
handed to reporters today. Analysts surveyed by Bloomberg News had anticipated a
median 8 billion francs. Sales increased to 42 billion francs from 35.5
billion francs, the company said.
- PSA Peugeot Citroen, Europe’s second-biggest carmaker, reported an unexpected
second-half loss because of a writedown in assets and a decline in sales as
European customers favored models from Volkswagen AG and Toyota Motor Corp.
The net loss was 127 million euros ($165 million), compared with a 269
million-euro profit in the year-earlier period, spokesman Jean-Hugues Duban
said. For the full year, profit dropped 83 percent to 176 million euros, or 0.77
euro a share, from 1.03 billion euros, or 4.47 euros.
- BHP Billiton Ltd., the world’s biggest mining company, will buy back $10
billion of shares, more than three times analysts’ expectations, after higher
metal prices drove profit to a record. The stock gained. Net income rose 41
percent to $6.2 billion for the six months ended Dec. 31, from $4.36 billion, a
year ago, the Melbourne-based company said in a statement. Sales rose 22
percent to $22 billion.
- BNP Paribas SA: France’s largest lender said Kas Bank NV, the biggest
independent Dutch securities-clearing company, will transfer its private-banking
activities, including 750 million euros in assets under management, to Nachenius
Tjeenk & Co., BNP Paribas’s Dutch private banking unit.
- Publicis Groupe SA: The world’s fourth-biggest advertising company said
fourth-quarter revenue rose 4.8 percent to 1.25 billion euros, helped by
“firmer” growth in Europe and gains from business wins in North America.