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hopefully last shake ...week hands gone before news..jmho
someone is buying too...
things are looking better.the enviroment is ready for mergers aquistions esp in the smaller cap stocks.just giving our board a foundation of the economic climate as that has a true impact on what happens on our level......................................US Corporate Profits Surge
by John Shipman, Paul Vigna
Monday, January 31, 2011
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With about 50% of companies already reporting, fourth-quarter profits for the biggest U.S. corporations have been exceptionally strong and 2010 is poised to deliver the third-best full-year gain since 1998—with sharp advances in the telecommunications and energy sectors and a rebound in financial services.
Excluding financial companies, whose losses in 2009 skewed results, weighted earnings for the companies in the Standard & Poor's 500 Index are up 17% on an as-reported basis for companies representing 54% of the group's market value.
Unlike the initial period of the recovery, when cost cutting strongly boosted profits, the results suggest a solid pickup in spending by businesses and consumers. Sales for the group rose about 9% from a year ago, according to S&P. Job cuts continue to be critical under tight expense controls.
[More from WSJ.com: Revenue Growth Perks Up ]
Bolstered by exports and consumer spending, overall U.S. fourth-quarter sales excluding inventories jumped by 7.1%, according to a report Friday by the U.S. Commerce Department. The gain far outpaced the 0.9% increase in the third quarter.
Combined with a decline in imports, "we have a healthier mix" ahead in 2011 for economic performance, said Brian Jones, an economist at investment bank Société Générale.
S&P now forecasts fourth-quarter earnings will rise about 32% over a year ago when all 500 companies report, more than three times as fast as its forecast at the outset of this reporting season. Profits then were seen rising 9.8%, with sales expected to be up 6%, according to S&P.
At roughly this point a year ago, about half-way through earnings season, corporate profits excluding the banks were running about 47% higher than the year-earlier period. Sales growth a year ago was about 5.9%. But at that point, the recovery was just beginning and comparisons were off much lower earnings.
[More from WSJ.com: Moody's Downgrades Egypt]
For 2010, S&P estimates profit growth will be about 51%, a percentage gain surpassed only by the previous year's record 243% jump and a 77% gain in 2003, according to S&P.
Financial companies are enjoying the biggest jump in profit gains, albeit over a quarter in 2009 where they as a group lost money, according to S&P. Telecommunications companies that have reported so far saw profits rise 58%; materials companies including steel, mining and chemicals are up 45% and energy concerns are up 40%. For instance, Chevron Corp.'s (NYSE: CVX - News) fourth-quarter profit rose 72% on higher oil prices and better refining margins.
Banks benefited this quarter from greatly diminished write-downs, and less cash set aside for loan losses, and in some cases cash actually released from money previously set aside to cover losses. For instance, U.S. Bancorp (NYSE: USB - News)reported fourth-quarter profit of $974 million, up from $602 million a year ago, as cash it had set aside for loan losses declined by 34%.
The biggest laggards include utilities, down 18%, and health-care companies, down 17%. Columbus, Ohio, utility American Electric Power Co. (NYSE: AEP - News) posted a 26% decline in profit due to a required refund to customers and employee-severance costs. Pharmaceutical companies are facing patent expirations, slowdown in health-care spending, price cuts in Europe and tougher regulatory hurdles for new products.
[More from WSJ.com: Chinese Banks on the Prowl in Europe]
One trend that marked 2010 results and continues to crop up this year: job cuts. Drug maker Abbott Laboratories (NYSE: ABT - News)last week said it would cut 2% of its work force, or 1,900 jobs, while home-improvement retailer Lowe'sCos. (NYSE: LOW - News) said it is eliminating roughly 1,700 store-management positions and hiring 8,000 to 10,000 part-time hourly employees to man the sales floor during weekends. Boeing Co. (NYSE: BA - News), struggling to get a new jet into production, said it will lay off 1,100 workers.
Already this year, 11 banks have closed their doors, on top of 157 banks last year, adding to industry unemployment rolls as new owners consolidate. Meanwhile, several big banks, including State Street Corp. (NYSE: STT - News) and American Express Co. (NYSE: AXP - News), also have recently announced layoffs or intentions to cut jobs.
The sharp rise in energy and raw-materials costs in recent months has only begun to impact results. Companies from Ford Motor Co. (NYSE: F - News) to Colgate-Palmolive Co. (NYSE: CL - News) say rising commodities prices hit their final-quarter performance and are expected to play a bigger role in results this year. Delta Air Lines Inc. (NYSE: DAL - News), stung by higher jet-fuel prices last quarter, said fuel will be its "biggest issue" this year. Industrial equipment maker Parker Hannifin Corp. (NYSE: PH - News) also cited rising costs "across the board" in its fourth-quarter results.
Procter & Gamble Co. (NYSE: PG - News) expects rising costs will cut about $1 billion from earnings in its current fiscal year ending June 30, double the impact it expected at the start of the fiscal year. Commodity costs were up 6% from the previous quarter and 20% higher than a year ago, Chief Executive Bob McDonald said Thursday.
Grocery-store operator Supervalu Inc. (NYSE: SVU - News) has been struggling with rising food costs, and finally said it plans to pass price increases along to its customers. At the same time, it's cutting overhead by closing underperforming stores and cutting corporate staff.
Colgate-Palmolive now expects commodities costs will rise between 8% and 10% in 2011; in October, it projected an increase between 4% and 6% this year. To compensate, the company will continue with its "overhead reduction initiatives," and forecasts prices rising between 1% and 2%. Pricing, Chief Executive Ian Cook said on a conference call, will be "consistent with what we see happening in the marketplace."
The Upshot comments on corporate earning trends
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64 commentsShow: Newest FirstOldest FirstHighest RatedMost Replied Post a comment Comments 1 - 10 of 64FirstPrevNextLast0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentReally 4 minutes ago Report Abuse This is happening on the backs of us think 20-25% employment. While American companies add jobs overseas. Caterpillar building three new plants in China -$300 a month workers. Comeon. The corporations that caused it need to fix it. The problem in our country over last 30 years big business has outsourced too much to save a buck and is not looking out for our country's welfare. Democracy is a form of government. Capitalism is an economic system. If you let capitalism run rampant without checks and balances you get what we have now a Great Depression once again. Why does history repeat itself because of corporate greed. Corporations just maximize profit at the expense of everything else and have forgotten their civic duty to their country men and their country. USA FIRST!!!!! Corporations need to start thinking like us.
So now we have to do what our forefathers did and break up the robber barons - banks, monopolies to bring control back to the Democracy. Regardless of your party time to become part of the solution and not part of problem.
In addition, to spending cuts which both parties are notorious for not making and just talking. We not govt need to take action to fix this deficit we need to create USA jobs that will put more USA citizens back to work increasing our tax base which will reduce this deficit.
That is not going to happen with all our USA companies outsourcing twice as many jobs as they create at home.
That is not going to happen when H1B Visas workers are running rampant in USA.
That is not going to happen when illegal immigrants are pouring over an open border.
That is not going to happen when we keep buying goods not made in USA.
To fix all this I cant say this enough buy only USA made goods and software to send a message to companies that dont make it here, that employ H1B Visas or outsource. That we wont do business with you. Just say No.
If your a CEO, VP, Director or Manager in USA companies you call the shots think about your country first. This is your Civic Duty so start owning up to it. Start employing your fellow Americans instead of outsourcing their jobs, no more outsourcing and no more H1B Visas. The Indians and Chinese each have one billion people they can take care of themselves we need to take of our own. Healthcare companies denying coverage to sick that is baseless and cowardly why did it take legislation to stop it?
You can call the shots then call them. Just say No.
USA citizens write your Congress person tell them what you want. I can only write mine so you have to write yours. Take five minutes go to their website and write them every week. We all must do this and send the messages we want them to hear. Big Companies do this all the time it is called Lobbying. Enough is enough time for American voices to be heard and for our voices to be acted upon. Vote with your pocket book, Speak to your Congress person, Make the right calls at work. This is your country. If keep outsourcing eventually their will be a revolution from the unemployed like is happening in the Arab world and in this country they will use their guns to put a bullet in the head of a CEO or a manager. Think about it next time you outsource work from the US. Be careful when you drive by in that new Porsche or SL.
We outsource all of our manufacturing to China and all of our high tech to India and wonder why USA is dying and its citizens are unemployed there is your answer. Fix it Mr. CEO you caused it then you can fix it. Insource and stop hiring H1B Visa from Infosys, Wipro and every other Indian Outsourcing company you can think of. Start building manufacturing plants back here. Think like Henry Ford if my worker cant afford my goods then I wont be able to sell my goods. Hey Johnson and Johnson profits a little weak for the year since you have unemployed so many if the USA. Karma is a @#$% isnt it. Fix it!!!!!
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0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentEd 4 minutes ago Report Abuse What the WSJ conveniently neglects to mention is these annual increases are relative to the previous year. 1998 saw the "Asian Flu" but in no means was the economy then anywhere near the hideous state as seen in 2009. Further, these "surging" profits aren't correcting the domestic unemployment catastrophe, which doesn't look to change. It's only a matter of time before the other shoe drops.
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0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 1 users disliked this commentblackhercules 4 minutes ago Report Abuse Great news!!! Republicans do not like it and will try and spread as much bad news as possible. They care more about getting into office than our country. PATHETIC.
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3 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentabc 6 minutes ago Report Abuse Corporate cash in huge profit, while unemployment is still high. This tell me companies will not hiring anytime soon. Why would they ?
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0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 2 users disliked this commentMozart 7 minutes ago Report Abuse Fantastic news for America. All these record profits and low debt on the balance sheets means that American companies can start to spend some of those profits on R&D, developing new products and investing in America. I applaud Obama for his stewardship of the economy and steering us out of the Bush great recession. We can take a lesson fm the conservatives over in the UK and the double dip they are in now. Had Obama listened to conservatives in this country, we would be in a double dip. Even now, people like Cantor and Boehner are trying very hard to implement the same failed measures that drove the UK into a double dip recession.
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0 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentA Yahoo! User 8 minutes ago Report Abuse Is Yahoo censoring references to POMO?
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1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentSpinmaker 10 minutes ago Report Abuse Hooray! Now they can pay the Federal Taxes that their layed off, fired , workers can't pay!
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3 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentAllen 11 minutes ago Report Abuse Sure the profits are up, when you look at Chevron 72%, Shell 68%, Exxon/Mobil 54% all on the backs of the American People. Where is the outrage for the way these companies continue to rape the American people. And Obama is their agent. Don't drill, stop off shore drilling, don't open Alaska, don't Mine Schale Oil, don't build Nuclear, don't expand clean coal.
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1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentLurker 11 minutes ago Report Abuse The United States of Corporations..
Brought to you by Carl's Jr.
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1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentLurker 12 minutes ago Report Abuse Whew.. so happy the corporations are doing well.. The United States of Corporations..
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i like the way merger and aquisition activity sounds..good luck all
ShareretweetEmailPrintTopics:Mergers & Acquisitions On Monday January 31, 2011, 9:14 am
By Chuck Mikolajczak
NEW YORK (Reuters) - U.S. stocks were set for a higher open on Monday as merger activity and solid earnings, including Exxon Mobil, overshadowed concerns about the possible spread of unrest in Egypt to other parts of the Middle East.
Alpha Natural Resources said on Saturday it agreed to a $7.1 billion deal to buy Massey Energy Co, which would create the second largest U.S. coal miner by market value.
Massey shares jumped 11.2 percent in premarket trading to $63.65 while Alpha Natural slid 6.7 percent to $53.99.
Exxon Mobil Corp climbed 1 percent to $79.94 after the world's largest publicly traded oil company reported a higher-than-expected 53 percent increase in quarterly profit.
The merger and earnings action overshadowed fears of political unrest spreading to oil-producing Middle Eastern countries, driving up crude prices and threatening global growth prospects.
Protests to end the 30-year rule of President Hosni Mubarak continued, heightening risk aversion for European investors already concerned by their region's sovereign debt crisis and inflation.
"(Egypt) is definitely not cleared up, but what is clear in the mind of the market is that there is an intelligent alternative to the current state of affairs," said Peter Kenny, managing director at Knight Equity Markets in Jersey City, New Jersey.
"In the meantime, earnings have been quite good, guidance has largely been quite positive and macro trends remain, at the very minimum, modestly positive."
S&P 500 futures rose 5.9 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures rose 33 points and Nasdaq 100 futures rose 7.25 points.
Further supporting the gains in stock futures was Commerce Department data that showed U.S. consumer spending rose more than expected in December to post a sixth straight month of gains.
Economic data still on tap for Monday includes the Chicago PMI for January, due out at 9:45 a.m..
In other M&A action, CNOOC Ltd will pay $1.3 billion in its second shale deal with America's Chesapeake Energy Corp, the latest move by China's top offshore oil producer in its aggressive drive for overseas acquisitions.
Chesapeake advanced 1.2 percent to $27.67 before the open.
Warehouse and distribution center owner AMB Property Corp and rival ProLogis said they would merge, one of the biggest real estate deals since the financial crisis.
ProLogis gained 2.2 percent to $15.55 and AMB added 3 percent to $33.90 in premarket trade.
(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)
i think we are very close to moving this from the drawing board to reality.the past has shown to keep things close to the chest untill everything is done.those that have waited in my opinon will be rewarded.i am asked why i am so positive...and i say if the company had wanted to just sell shares they could have in the twenties but they did not..and they havent diluted or increased share structure...so if they havent sold i ask why....my only reason i come too is that they feel we are going alot higher....SO DO I....glta..
we have traded 39k shares 10k of those were a buy at .13 so we have had 29 k shares in sells or just over 3000 dolars worth...fellow shareholders dont panick the best is yet to come...
we will weather this small storm..the company isnt selling or diluteing..some are tired of waiting but more buyers will come...when good news hits no matter where we are we will go back to new highs..just takes the small sells to dry up and news to hit...
we just need a little buying and bid support
nothing has changed.small volume sells ..when buying hits it will turn fast...
thanks star
there are still alot who believe news is coming and close..
can u post new l2..
you are correct..a little positive buying turns us up.. more stock out from lower levels means we rise faster each time..just need a little faith restored..good luck to all
i am...im not saying we havent had a couple of sellers out there but buying pressure moves us back fast because there isnt stock out there ...good news will turn this into a rocket..the best time to buy is when you see some impatience and doubt...the best is yet to come...
could be last shake of any week hands..before we get news..
ubss and hdsn m moved to .16 and .24 thats where the sellers were..if we can pressure auto at .12 the next is at .15...
auto only mm left at twelve 11000 shares buy cleared them out..after auto is out at .12 we move back to.15..nite etrade at .15
some impatience breeds an oppertunity..nothing has changed..still low volume..any buying pressure takes us back up ..
no selling from company.share structure remains the same.good news will cause this this to turn up quick.there are those picking up shares quietly...we are close in my opinion to the unveiling..every big increase we have had has been predicated by some softness..there are those that want you to sell,be careful..good luck to whatever you do buy sell hold...
kinda funny the seller waited till a few minites before close to try and drive down the price for the weekend...there were some buyers waiting...
the oppertunity presents itself when you ask why has the accumulation taken place that saw this climb from a penny to high twenties..some getting impatient right before the unveiling is unfortunate yet it is the nature of the market...good news released turns this up in a hurry..good luck all..the best is STILL yet to come....
demand up growth coming recovery slow but inching up...points to niche openings for more fuel efficent transport in all areas...Gasoline price spike due to record oil demand, industry says
ShareretweetEmailPrintSteve Hargreaves, senior writer, On Friday January 21, 2011, 11:56 am
Strong worldwide oil demand and lack of supply are to blame for steadily rising gasoline prices in the United States, an oil industry group said Friday.
The American Petroleum Institute made no specific price forecast for 2011, but didn't seem to see a drop anytime soon.
"Unless we see increases in supply, it's hard not to see a tighter market," John Felmy, the institute's chief economist, said in a conference call with reporters.
Felmy said worldwide oil demand in 2010 hit a record of more than 87 million barrels a day, driven largely by strong growth in India, China and the Middle East.
Supply, meanwhile, was constricted by the drilling moratorium in the Gulf of Mexico following the BP disaster, slow production growth in non-OPEC countries, and OPEC production controls.
"We are committed to supplying our customers, but we face challenges with what is happening to crude oil prices," said Felmy.
Gasoline price have risen 12 cents a gallon, or 4%, in just the last month, according to the motorist group AAA. The nationwide average stands around $3.12 a gallon, less than a dollar below the record high.
Over the last year, prices are up 39 cents a gallon, or 14%. Crude oil is up by a similar percentage, currently trading at just under $90 a barrel.
Felmy called for increased oil drilling in the United States and greater conservation measures as ways to help lower prices.
He did not blame investor interest in commodities for the high prices, as many analysts have, saying if prices were artificially high there would be an overabundance of supply.
"It's probably the right price, supply equals demand," he said. "It really is mostly market fundamentals."
Other analysts have pointed out that thanks to new investments in supply, the difference between what the world can produce and what it actually consumes is about 5 million barrels a day, much higher than the 1-million-barrel-a-day margin seen in 2008, when oil hit a record $147 a barrel.
They argue that there is no supply problem, and the rising prices are instead due to rising interest in crude oil as an investment.
Felmy said most of that 5 million barrels is locked up by OPEC.
Gasoline prices crossed the $3 threshold late last month for the first time since October 2008.
The all-time record high is $4.114 a gallon, set in July 2008. At the time, economists said the record prices were crimping consumer spending, and probably contributed to the economic downturn.
you could have doubled or tripled or more since then so now you wait like the rest of us who are holding because if you are like me ..think the highs we have had are not going to be the highs of the future.you cant change the past but you can hope for a better future.the company has not put out news but they have not diluted or increased shares either..so you choose..buy sell hold its up to you...this is why i choose to remain positive and not dwell at what i didnt get..im more hopeful for what i will...glty and i wish you a safe and happy new year..
i think most who have been here for awhile relise this is not the same cake with different icing...those that wait for dinner to be served will certainly enjoy the desert...jmho
nice info Q..the board is lucky to have someone like you around..
erupting ..that sounds good anti...if we get good news i think that will be a pretty accurate description
what do you think that would do to this tight small float..lol..hope this new year brings you good luck and peace sony...for those that dont know sony has another board guerilla investing for dummies.theres some good info there sometimes ,just for extra insights...
i agree Q80........january could be our favorite month...
merger activity hitting the market...
http://finance.yahoo.com/video/cnbc-22844419/prepping-for-merger-surge-23794131
the bigger picture is looking better now for companies to release news onto the market as investors are begining to seek risk and stocks again.the timeing is better now that even a few months ago and is getting stronger.this could all be playing into anticipated news on our short horizon...they have been very methodical..good luck..the best is yet to come..
the real stuff takes time .its easy to print prs its harder to make shareholders have an investment not just a trade.those that hold i feel will be rewarded.thats why im here.i havent seen anything negative from company as far as dilution or share raises or dumping...so they arent profitting from this rise in price per share over the last year ..so it must be for a reason...
by the way.groundhog day had a happy ending..lol
etrade on the bid and ask usually means buying..the news will come and despite wanting it ,it will caught most by surprise..jmho
nite moved up to .168 ..after auto is out at .12 we start our move back up...
if i had more powder i would be loading up...
i agree..in my opinion we will hear something this month...hopefully the rest of the shareholders give the time of this month to get news out...good luck all
only nite at .13 others are at .16 ,.17 and up
could be a slow day today in the market overall.alot of traders have closed out for the year and some have started their holiday...to all HAPPY NEW YEAR..may 2011 bring us all profits ..
those on the sidelines watching,this may be a time to take advantage...jmho...good luck all
the answer is no.that would be illegal.the only benefit to a company doing that would be dilution .since we have not seen that here with no changes in share structure in over a year and a half we dont have to worry about that.all signs of what has been takeing place here are positive..we just need the news to back it up,most are holding for that,have some sold as we have traded up ,of course they have..i personally think january will be our month ..jmho..