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Friday, Dec. 12
Energy stocks retreat with broad market, oil prices(9:39 am ET)
NEW YORK (MarketWatch) -- Energy stocks slid with the broad market on Friday in the wake of gloomy economic data, the failed auto bailout and lower oil prices. The Amex Oil Index (XOI: news, chart, profile) fell 3.4% to 922. The Amex Natural Gas Index (XNG: news, chart, profile) dove 4.3% to 363. Transocean (RIG: news, chart, profile) dropped 7% to $54.29 after S&P said it would remove the company from the S&P 500 Index next Thursday because the driller is moving its headquarters to Switzerland. Pittsburgh-based Equitable Resources Inc. (EQT: news, chart, profile) dipped 1% to $30.80 after the natural gas producer was named to replace Transocean. Crude prices fell $4.01 to $43.97.
Steel Dynamics lowers 2008 profit forecast(9:33 am ET)
NEW YORK (MarketWatch) -- Steel Dynamics Inc. (STLD: news, chart, profile) said Friday that it expects to report 2008 earnings in the range of $2.35 to $2.40 a share, compared with its previous estimate of about $3.25. The Fort Wayne, Ind.-based steelmaker also forecast a fourth-quarter loss of 35 cents to 40 cents a share, citing lower demand for steel and recycled metal. "We are cautiously optimistic about market conditions as we enter December," said Keith Busse, the company's chairman and chief executive officer.
Harsco cuts 2008 profit forecast, reaffirms 2009 view(9:13 am ET)
NEW YORK (MarketWatch) -- Harsco Corp. (HSC: news, chart, profile) said Friday that it expects to report 2008 earnings from continuing operations of $3.15 to $3.20 a share, excluding a fourth-quarter restructuring charge. Its previous forecast range was $3.20 to $3.25 a share, excluding the charge. The Harrisburg, Pa.-based industrial-services firm cited "the current turmoil and uncertainty" in its end markets. Harsco also reaffirmed its forecast for for 2009 earnings from continuing operations of $3.20 to $3.30 a share, assuming "there will begin to be some relief from the current volatility and the beginning of a return of economic confidence by the second half of 2009."
Goldman Sachs sees oil at $30 a barrel in next three months(8:29 am ET)
NEW YORK (MarketWatch) -- Goldman Sachs on Friday cut its 2009 outlook for oil prices to $45 a barrel from $80 a barrel in the face of the global economic slowdown, while raising the possibility that crude could dip below $40 a barrel shortly. "The global credit crunch...now threatens to push oil prices below $40 a barrel in the near term as the impact of the global economic recession has swung the oil market from pricing demand destruction in 2008 to pricing supply destruction in 2009," Goldman said in a note to clients. Goldman lowered its three-month West Texas Intermediate crude target to $30 a barrel. In electronic trades on Friday, oil prices fell $3.30 to $44.68 a barrel.
Average U.S. gasoline prices hold steady at $1.66 a gallon(7:30 am ET)
NEW YORK (MarketWatch) -- Average regular U.S. gasoline prices held steady at $1.66 a gallon at the pump on Friday, according to the AAA Daily Fuel Gauge Report. A month ago, gasoline sold for $2.20 a gallon. A year ago, it sold for $2.99 a gallon.
Analyst ups Sunoco Q4 view but eyes lower gasoline margins(7:27 am ET)
NEW YORK (MarketWatch) -- Back Bay Research analyst Jacques Rousseau on Friday upped his fourth-quarter profit target for Sunoco Inc. (SUN: news, chart, profile) to $2.15 a share from $1.90 a share, but said he's eying lower gasoline margins as the price of the fuel continues to drop. While Sunoco will likely post stronger earnings than its peers, "refining margins have weakened considerably in November and December...primarily due to negative gasoline margins," he said in a note to clients. Sunoco is mulling a plan to unlock value by spinning off its Coke unit, but Rousseau doesn't believe it will occur until credit markets improve. He reiterated his hold rating and $38 a share price target on the stock.
Lloyds TSB says HBOS losses won't impact capital adjustment(7:09 am ET)
LONDON (MarketWatch) -- Lloyds TSB (UK:LLOY: news, chart, profile) (LYG: news, chart, profile) said Friday that the trading udpate from HBOS (UK:HBOS: news, chart, profile) earlier in the session was broadly in line with the impairment analysis conducted by Lloyds in October. Lloyds, which is in the process of buying HBOS, also said the impairment losses being incurred by HBOS are not currently expected to have a significant impact on the size of the negative capital adjustment it will make when the deal closes. Lloyds also noted that its income will be reduced by around 300 million pounds ($448 million) over the next year due to changes in the timing of income recognition from payment protection insurance. In addition, it expects to make a provision of around 120 million pounds to cover higher costs from the financial services compensation scheme and has written off its 30 million pound investment in Bradford & Bingley.
Las Vegas Sands reportedly to cut 216 jobs, stop bonuses(7:08 am ET)
NEW YORK (MarketWatch) -- Casino giant Las Vegas Sands Corp. (LVS: news, chart, profile) plans to cut 216 full-time employees from its Las Vegas properties, The Wall Street Journal reported Friday. Sands, which employs a total of 10,000 workers at the two properties, confirmed it would notify employees starting Friday, the report said. Sands is also eliminating $6.5 million in management bonuses for 2008, the report said. The news follows data from Nevada gambling regulators saying gambling revenue on the Las Vegas Strip fell 26% in October from the year before.
UBM sees results in line with expectation, cuts 350 jobs(2:38 am ET)
LONDON (MarketWatch) -- Media and events group United Business Media (UK:UBM: news, chart, profile) said Friday that it expects to deliver 2008 earnings and revenue in line with the market consensus. The group said the combination of the strong dollar and a good performance from its major events, data and workflow products meant UBM achieved its highest monthly operating profit of the last six years in November, however it added certain print advertising and secondary events remain weaker. UBM said its previously announced action to reduce costs will result in a fall of around 350 in its global headcount in the second half of the year.
HBOS sees further sharp rise in bad debt charges(2:30 am ET)
LONDON (MarketWatch) -- U.K. bank HBOS (UK:HBOS: news, chart, profile) said Friday it has seen an acceleration in the deterioration of credit quality in recent weeks, while pressure on net interest margins is rising due to the cuts to U.K. interest rates. The group estimated its impairment charge on corporate credit for the first 11 months of the year at 3.3 billion pounds ($5 billion), up from 1.7 billion pounds at the end of September. Impairments on unsecured retail lending were around 1 billion pounds, compared to 0.8 billion pounds at the end of September and the secured lending charge rose to 0.7 billion pounds from 0.4 billion pounds, with the figures likely to get worse. Estimated losses due to the market dislocation have also risen by around 400 million pounds to 2.2 billion pounds, the bank said. It made the statement ahead of a meeting to vote on its proposed takeover by Lloyds TSB (UK:LLOY: news, chart, profile) .
Thursday, Dec. 11
BorgWarner cuts 2008 earnings outlook to $1.85-$1.95 a share(6:53 pm ET)
SAN FRANCISCO (MarketWatch) -- BorgWarner (BWA: news, chart, profile) late Thursday lowered its 2008 earnings outlook to a range of $1.85 to $1.95 a share, excluding special items. "Guidance was reduced to reflect rapidly deteriorating conditions in the auto industry that continue in every geographic region of the world," the company said in a statement. Its previous forecast for 2008 was $2.25 to $2.35 before special items. The company also said that it would have reduced its global workforce by about 2,900 people, or 17% of its workforce, by the end of the year. It is planning to shut down most of its North American operations for extended periods starting the week of Dec. 15 and will re-open at various times in January.
United Technologies sticks by 2008 earnings outlook (6:38 pm ET)
SAN FRANCISCO (MarketWatch) -- United Technologies Corp. (UTX: news, chart, profile) told analysts Thursday it is sticking by its 2008 earnings outlook of $4.90 a share, up 15% from year-ago results. At the same time, United Technologies President and Chief Executive Louis Chenevert warned the company is bracing for "difficult and uncertain economic conditions" in 2009 and sees revenue next year slipping to about $57 billion. Despite tough market conditions, the company said it expects to earn between $4.65 and $5.15 a share in 2009, adding that liquidity "is not an issue." Analysts polled by FactSet Research are looking, on average, for the giant aerospace company to earn $5.08 a share next year.
Lululemon's shares tumble on lowered forecast(10:18 am ET)
NEW YORK (MarketWatch) -- Shares of Lululemon Athletica Inc. (LULU: news, chart, profile) tumbled 25% in early trading Thursday, after the specialty-apparel retailer gave a full-year forecast that fell short of Wall Street's expectations. The Vancouver-based company said third-quarter earnings from continuing operations rose to $8.83 million, or 13 cents a share, from $7.6 million, or 11 cents a share, in the year-earlier period. Revenue rose 34% to $87 million. Analysts polled by Thomson Reuters were expecting earnings of 12 cents a share and revenue of $86 million. The company also lowered its 2008 guidance to 55 cents to 57 cents a share from 68 cents to 71 cents a share, citing trends in the macro environment and the weaker Canadian dollar. The latest mean estimates from analysts are for earnings of 67 cents a share.
Krispy Kreme loss widens to 9 cents a share(9:00 am ET)
NEW YORK (MarketWatch) -- Krispy Kreme Doughnuts Inc. (KKD: news, chart, profile) said Thursday that it lost $5.9 million, or 9 cents a share, in the third quarter. In the same period a year ago, the Winston-Salem, N.C., doughnut vendor lost $798,000, or a penny a share. Total revenue for the third quarter decreased 8.7% to $94 million. An analyst polled by FactSet Research estimated a loss of a penny a share. In 2011, Krispy Kreme sees the beginning of a prolonged period of growth, the company's Chief Executive Jim Morgan said in a statement.