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Friday, Nov. 21
Goldman sees jobless rate at 9%, GDP shrinking into 2009(9:45 am ET)
NEW YORK (MarketWatch) -- Unemployment will reach 9%, from 6.5% currently, by the end of 2009 and the economy will shrink in each quarter until mid-2009, said economists at Goldman Sachs on Friday. The firm's forecasts are lower than previous predictions due to "continuing signs of falling domestic and foreign demand, labor market deterioration, renewed tightening in financial conditions, and an apparent impasse in fiscal policy pending the transfer of power to the Obama administration in late January," analysts wrote in a note. If unemployment reaches that level, it would be "unequivocally the worst single downturn on record since World War II." Gross domestic product will shrink 5% this quarter, and 3% and 1% in the subsequent quarters, they said. The forecast leads to a 25% decline in after-tax corporate profits, which would be the worst since the Great Depression.
Energy stocks gain back a fraction of bruising losses(9:36 am ET)
NEW YORK (MarketWatch) -- Natural gas stocks gained back a fraction of their steep 16% loss in the previous session in early action on Friday. The Amex Natural Gas Index (XNG: news, chart, profile) rose 2.7% to 325. The Amex Oil Index (XOI: news, chart, profile) rose 4.7% to 796. Crude prices rose 44 cents to $49.86.
Dell leads tech stocks up in early trading(9:34 am ET)
SAN FRANCISCO (MarketWatch) -- Technology stocks jumped in early trading Friday, led by PC maker Dell Inc. (DELL: news, chart, profile) , which reported better-than-expected earnings for the third quarter the previous evening. Dell shares were up nearly 4% following the opening bell. The Nasdaq Composite Index ($COMPQ: news, chart, profile) was up 2% to 1,344 following a bruising sell-off in the prevous two sessions. The Morgan Stanley High-Tech Index (MSH: news, chart, profile) was up 2.8%. The Philadelphia Semiconductor Index ($SOX: news, chart, profile) was up 0.4%.
Reliance Steel's October revenue beats targets(9:10 am ET)
NEW YORK (MarketWatch) -- Reliance Steel (RS: news, chart, profile) on Friday stood by its Oct. 16 decision to withold a fourth-quarter earnings forecast in the face of global economic uncertainty. But the Los Angeles metal producer said its October results "were solidly profitable and stronger than we had anticipated given the state of the economy." Reliance Steel said its sales totaled $918.2 million in October, with tons sold per day down 1.7% from levels in September. Average selling price in October fell 3.8% from September. In November, the company said it's seen decreased net income, but lower inventory costs and demand levels have allowed it to reduce its working capital, which, along with its continued profitable operations, is producing a "substantial amount of positive cash flow."
AnnTaylor swings to a loss of 24 cents a share(8:16 am ET)
NEW YORK (MarketWatch) -- AnnTaylor Stores Corp. (ANN: news, chart, profile) said Friday that it lost $13.4 million, or 24 cents a share, in the third quarter. In the same period a year ago AnnTaylor earned $40.8 million, or 66 cents a share. Sales fell to $527.2 million from $600.9 million. Excluding restructuring charges, earnings per share were break even, compared with 67 cents in last year's period. Same-store sales for the period were 19.4% lower. Analysts polled by FactSet Research estimated, on average, earnings per share of 6 cents and sales of $532.4 million. Given the volatility and uncertainty of the market, AnnTaylor said it would not give guidance for the fourth quarter, or the full year.
U.S. average gasoline prices fall below $2.00 a gallon(7:32 am ET)
NEW YORK (MarketWatch) -- Average U.S. retail gasoline prices fell below $2.00 a gallon for the first time since March 9, 2004, according to the AAA Daily Fuel Gauge Report. Prices edged down two cents to $1.99 a gallon on Friday. Gasoline sold for $2.86 a gallon one month ago and $3.09 a year ago.
J.M. Smucker earnings per share up 8% in quarter(7:22 am ET)
NEW YORK (MarketWatch) -- The J.M. Smucker Co. (SJM: news, chart, profile) said Friday that its second-quarter earnings were $51.5 million, or 94 cents a share, compared to $50.2 million, or 87 cents, in the same period a year ago. Sales rose 19% to $843.1 million. Excluding items, Smuckers second-quarter earnings per share were $1.02 in fiscal 2009. Analysts polled by FactSet Research estimated, on average, earnings per share of $1.00 and sales of $801.8 million. "The number of meals prepared and consumed at home, as recent market data indicate, continues to be trending upward in this challenging economic environment, and is currently at levels not seen since 1994," commented Co-Chief executive Tim Smucker. Smucker expects full year earnings per share of $3.45 to $3.50. Smucker shares fell 3% Thursday to $38.25.
Heinz quarterly profit grows 21% to $277 million(7:13 am ET)
NEW YORK (MarketWatch) -- H. J. Heinz Co. (HNZ: news, chart, profile) said Friday its third-quarter profit totaled $277 million, or 87 cents a share, from $227 million, or 71 cents a share, in the same quarter a year before. Analysts had expected adjusted earnings on average of 74 cents a share, according to a FactSet Research survey. Revenue for the quarter was $2.61 billion compared to $2.52 billion in the year-ago period. The food giant also reaffirmed its forecast for full-year organic sales growth of at least 6% and profit in the target range of $2.87 to $2.91 a share for the current 2009 fiscal year, which ends April 29.
Thursday, Nov. 20
Gap profit slips, keeps full-year outlook(4:51 pm ET)
SAN FRANCISCO (MarketWatch) -- Gap Inc. (GPS: news, chart, profile) late Thursday reported its third-quarter profit rose 3% from a year-earlier, helped by tighter inventory controls. The clothing retail chain also backed its full-year profit forecast. Gap earned $246 million, or 35 cents a share, topping Wall Street's consensus forecast of 34 cents, according to a FactSet analyst survey. A year ago, Gap earned $238 million, or 30 cents a share. Sales fell more than 7% for the quarter ended Nov. 1. Gap said sales at stores open at least one year -- or same-store sales, a key retailing metric -- dropped 12%. Its Old Navy and Banana Republic chains posted the steepest declines. Gap said it expects to make between $1.30 and $1.35 a share for fiscal 2008.
Salesforce.com quarterly profit rises to 8 cents a share(4:22 pm ET)
SAN FRANCISCO (MarketWatch) -- Salesforce.com Inc. (CRM: news, chart, profile) late Thursday reported its third-quarter net income rose to $10.1 million, or 8 cents a share, from $6.5 million, or 5 cents a share, in the same quarter last year. Revenue increased to $276.5 million from $192.8 million, said Salesforce.com, which sells subscriptions to business software hosted on the Internet. Analysts surveyed by FactSet Research had forecast earnings of 8 cents a share on revenue of $273.6 million. The company sees fourth-quarter earnings of 6 cents to 7 cents a share and revenue of $284 million to $285 million. Wall Street expects the company to post earnings of 8 cents a share and revenue of $273.6 million in the fourth-quarter. For fiscal 2010, the company projected revenue of $1.35 billion to $1.36 billion.
Zumiez third-quarter profit slides to 23 cents a share(4:15 pm ET)
SAN FRANCISCO (MarketWatch) -- Zumiez Inc. (ZUMZ: news, chart, profile) late Thursday reported its third-quarter net income fell to $6.8 million, or 23 cents a share, from $8.1 million, or 28 cents a share, in the same quarter a year earlier. Revenue increased to $112.2 million from $104 million a year ago, said the retailer. Comparable store sales fell 5.8% in the quarter. Analysts polled by FactSet Research had forecast earnings of 23 cents a share on revenue of $111.7 million. The company also reiterated its 2008 earnings outlook of 52 cents to 57 cents a share for 2008. Wall Street is projecting the company to earn 55 cents a share, on average, in 2008.
Autodesk posts profit gain despite slowing economy(4:14 pm ET)
SAN FRANCISCO (MarketWatch) - Autodesk Inc. said Thursday its fiscal third-quarter net income rose to $104.5 million, or 45 cents a share, from $84.8 million, or 35 cents a share in the same period a year earlier. Design software maker Autodesk (ADSK: news, chart, profile) said total net revenue in the period ended in October rose 13% to $607 million. Excluding special items, Autodesk said earnings rose to 56 cents a share. Analysts polled by FactSet Research had estimated Autodesk would post earnings excluding special items of 54 cents a share, and $607.5 million in revenue. Autodesk cited growing maintenance revenue and revenue from "emerging economies" for its growth in the period.
Dell reports earnings of $727 million(4:04 pm ET)
SAN FRANCISCO (MarketWatch) -- Dell Inc. (DELL: news, chart, profile) on Thursday reported a fiscal third-quarter profit of $727 million, or 37 cents a share, on revenue of $15.16 billion. During the same period a year ago, Dell earned $766 milion, or 34 cents a share, on $15.65 billion in sales. Analysts surveyed by FactSet Research, had forecast the computer giant to earn 32 cents a share on $16.3 billion in sales.
XTO founder says he's seen worse times in energy business(10:56 am ET)
NEW YORK (MarketWatch) -- XTO Energy (XTO: news, chart, profile) Founder and Chairman Bob Simpson said as bad as the energy business is right now with plunging prices and frozen debt markets, it was worse when fossil fuel prices bottomed in 1998. The Fort Worth, Texas natural gas producer has put together an extensive hedging strategy to protect against big price swings,he pointed out. "We've seen challenges before," said Simpson. "Everyone wants to say it's the worst it's ever been, but it isn't." Still, XTO said it'll take a break of three to six months in smaller "bolt-on" acquisitions as it focuses on paying down debt. XTO officials said companies with less active hedging programs will be forced to cut back drilling more drastically. XTO is trimming about three rigs to 90 in 2009.