Home prices fell in August for the 25th consecutive month and prices in 10 major markets plunged a record 17.7% year over year, according to a key index of real estate values released Tuesday.
The S&P Case-Shiller Home Price 10-city index dropped 1.1% for the month. The 20-city index recorded a record year-over-year decline of 16.6% with a 1% fall in August.
The indexes compare the sale prices of the same homes each year to determine price trends and are considered one of the most accurate home price gauges. For the fifth straight month, no city in the Case-Shiller 20-city index saw annual price gains in August.
"The downturn in residential real estate prices continued, with very few bright spots in the data," said David M. Blitzer, chairman of the index committee at S&P.
The hardest hit of all 20 cities on a year-over-year basis was Phoenix, where prices plummeted 30.7% during the past 12 months. Las Vegas prices plunged 30.6% and Miami sank 28.1%.
The cities that held up the best were Dallas, which saw a decline of just -2.7%, Charlotte NC (down -2.8%) and Boston (off -4.7%). No city showed a price gain during the last 12 months.
In August, San Francisco saw the biggest price declines, down 3.5%. Phoenix (-2.9) and Las Vegas (-2.4) also reported sizable losses for the month. Two cities showed gains in August; Cleveland prices rose 1.1% and Boston prices inched up 0.1%.
Tuesday, October 28, 2008
Pushing Daisies Among Fall TV Shows In Trouble
Critically acclaimed TV dramedy "Pushing Daisies," about a pie maker who can revive the dead, is among several TV shows projected to be canceled this season. "Pushing Daisies" premiered on October 3, 2007,and was nominated for 15 Emmy Awards the following summer. Season 2 debuted on October 1, 2008, but ratings have fallen every week, and ABC may have no choice but to drop it.
Other shows getting the boot: Fox sitcom "Do Not Disturb," starring Jerry O'Connell, was canceled after just 3 episodes. Ditto for Ashton Kutcher produced game show "Opportunity Knocks." "Valentine" and "Easy Money," which air back-to-back Sunday nights on CW, are also rumored to be on the chopping block.
Other shows getting the boot: Fox sitcom "Do Not Disturb," starring Jerry O'Connell, was canceled after just 3 episodes. Ditto for Ashton Kutcher produced game show "Opportunity Knocks." "Valentine" and "Easy Money," which air back-to-back Sunday nights on CW, are also rumored to be on the chopping block.
Monday, October 27, 2008
UCA Shooting
LITTLE ROCK, Arkansas (Reuters) – Two people were shot and killed and a third wounded on an Arkansas university campus on Sunday night, according to university and hospital officials.
The shooting occurred at about 9:30 p.m. local time (10:30 p.m. EDT) outside a dormitory at the University of Central Arkansas at Conway, about 30 miles west of Little Rock, the state capital.
"One of the wounded died at the scene, and a second died after he reached the hospital," said Lori Ross, spokeswoman for Conway Regional Medical Center.
University officials said there were four suspects in the shooting and one was in custody.
It was unclear if the suspects or victims were university students, university spokesman Warwick Sabin said in a telephone interview.
The campus was placed on lockdown shortly after the shootings were reported, and Monday's classes were canceled.
The hospital did not identify the victims.
The shooting occurred at about 9:30 p.m. local time (10:30 p.m. EDT) outside a dormitory at the University of Central Arkansas at Conway, about 30 miles west of Little Rock, the state capital.
"One of the wounded died at the scene, and a second died after he reached the hospital," said Lori Ross, spokeswoman for Conway Regional Medical Center.
University officials said there were four suspects in the shooting and one was in custody.
It was unclear if the suspects or victims were university students, university spokesman Warwick Sabin said in a telephone interview.
The campus was placed on lockdown shortly after the shootings were reported, and Monday's classes were canceled.
The hospital did not identify the victims.
Sunday, October 26, 2008
Daylight Savings Time 2008: November 2nd
Don't worry, we've still got a week until we 'fall back.' Thousands of searches today on 'daylight savings time 2008' and 'when does the time change' etc. Next Sunday people!
Friday, October 24, 2008
Isiah Thomas Hospitalized
NBC news reports that Isiah Thomas, the former New York Knicks head coach, was rushed to the hospital Friday morning due to an apparent overdose on sleeping pills.
Thomas had reportedly consumed approximately 10 Lunesta pills, a prescription sleep aid, according to the New York Daily News.
Harrison Police Chief David Hall refused to identify the man."We’re classifying it as an accidental overdose of prescription sleeping pills. He was unconscious, but breathing on his own."
The patient was taken to White Plains Hospital where his stomach was pumped.
Thomas had reportedly consumed approximately 10 Lunesta pills, a prescription sleep aid, according to the New York Daily News.
Harrison Police Chief David Hall refused to identify the man."We’re classifying it as an accidental overdose of prescription sleeping pills. He was unconscious, but breathing on his own."
The patient was taken to White Plains Hospital where his stomach was pumped.
Punishment for 'Hit a Jew Day' Students
Sixth grade "Spirit Week" gets a little out of hand. What started out as harmless fun ("Hug a friend day") ends in outrage. Original story as follows, courtesy of My Way News.
Mo. students face punishment for `Hit a Jew Day'
By JIM SALTER
ST. LOUIS (AP) - At least four students from a suburban St. Louis middle school face punishment for allegedly hitting Jewish classmates during what they called "Hit a Jew Day."
The incident happened last week at Parkway West Middle School in Chesterfield.
District officials said Thursday they believe that fewer than 10 children of the district's 35 Jewish students were struck.
District spokesman Paul Tandy said that in most cases, the students were hit on the back of their shoulders but one student was slapped in the face.
It began with an unofficial "Spirit Week" among sixth-graders that started harmlessly enough with a "Hug a Friend Day." Then there was "High Five Day."
Soon, though, the days moved from friendly to silly. Next there was "Hit a Tall Person Day" and, finally, "Hit a Jew Day."
District officials believe a handful of children were directly involved. Those who actually struck classmates could face suspension and required counseling, Tandy said. Others who weren't directly involved but taunted Jewish students or egged on classmates could face lesser penalties.
"There is a mix of sadness and outrage," Tandy said. "The concern is a lot of kids knew about it and they didn't take action or say anything."
Karen Aroesty, St. Louis regional director of the Anti-Defamation League, said this was more than a case of bullying. Officials from the group will meet Friday with district leaders to discuss the matter.
Mo. students face punishment for `Hit a Jew Day'
By JIM SALTER
ST. LOUIS (AP) - At least four students from a suburban St. Louis middle school face punishment for allegedly hitting Jewish classmates during what they called "Hit a Jew Day."
The incident happened last week at Parkway West Middle School in Chesterfield.
District officials said Thursday they believe that fewer than 10 children of the district's 35 Jewish students were struck.
District spokesman Paul Tandy said that in most cases, the students were hit on the back of their shoulders but one student was slapped in the face.
It began with an unofficial "Spirit Week" among sixth-graders that started harmlessly enough with a "Hug a Friend Day." Then there was "High Five Day."
Soon, though, the days moved from friendly to silly. Next there was "Hit a Tall Person Day" and, finally, "Hit a Jew Day."
District officials believe a handful of children were directly involved. Those who actually struck classmates could face suspension and required counseling, Tandy said. Others who weren't directly involved but taunted Jewish students or egged on classmates could face lesser penalties.
"There is a mix of sadness and outrage," Tandy said. "The concern is a lot of kids knew about it and they didn't take action or say anything."
Karen Aroesty, St. Louis regional director of the Anti-Defamation League, said this was more than a case of bullying. Officials from the group will meet Friday with district leaders to discuss the matter.
Chrysler Job Cuts: 5,000 Laid Off
Chrysler LLC plans to reduce its white-collar workforce by 25% by the end of the year, the company said in an announcement Friday.
The cuts, about 5,000 workers in total, will come from Chrysler's salaried and supplemental workforce. Chrysler has about 18,500 white-collar workers.
Salaried workers, which will will make up a majority of the job cuts, will be offered buyouts and early retirement packages, said Chrysler spokesman David Elshoff. Supplemental workers, employees of outside contractors who work at Chrysler, will not be offered packages, he said, but those workers make up only a small number of the cuts.
Details of the offers will be explained to employees over the course of the next two weeks and employees will have until the end of November to decide if they wish to accept the offer.
If not enough employees accept the offers, the company will begin involuntary layoffs through December.
The company did not say how much money it expects to save through this program.
"These are truly unimaginable times for our industry," said Chrysler CEO Bob Nardelli in a company announcement. "We continue to be in the most difficult economic period most of us can remember."
"Never before have auto industry sales contracted at such a fast rate," Nardelli added. "Throughout this challenging time for our industry and our company, we have continued to face the realities of our business environment, and working as a team, we have been right-sizing our organization to become as competitive as possible."
These latest job cuts will affect only white-collar, non-union workers.
The company announced Thursday that it would eliminate one shift at a Toledo, Ohio, Jeep plant and accelerate the closing of its SUV factory in Newark, Del. Those moves will reduce Chrysler's payroll by about 1,825 jobs.
The Newark plant had originally been scheduled to close by the end of 2009. It is the only factory building the Dodge Durango and Chrysler Aspen full-size SUVs.
In Friday's job-cut announcement, the company also said it would make other cost cutting moves in the near future.
Chrysler, which is privately owned by Cerberus Capital Management, has reportedly been in talks with General Motors (GM, Fortune 500) about a possible buyout or merger. The company has also reportedly been in talks with Nissan (NSANY) and Renault about joining their cross-ownership alliance.
The cuts, about 5,000 workers in total, will come from Chrysler's salaried and supplemental workforce. Chrysler has about 18,500 white-collar workers.
Salaried workers, which will will make up a majority of the job cuts, will be offered buyouts and early retirement packages, said Chrysler spokesman David Elshoff. Supplemental workers, employees of outside contractors who work at Chrysler, will not be offered packages, he said, but those workers make up only a small number of the cuts.
Details of the offers will be explained to employees over the course of the next two weeks and employees will have until the end of November to decide if they wish to accept the offer.
If not enough employees accept the offers, the company will begin involuntary layoffs through December.
The company did not say how much money it expects to save through this program.
"These are truly unimaginable times for our industry," said Chrysler CEO Bob Nardelli in a company announcement. "We continue to be in the most difficult economic period most of us can remember."
"Never before have auto industry sales contracted at such a fast rate," Nardelli added. "Throughout this challenging time for our industry and our company, we have continued to face the realities of our business environment, and working as a team, we have been right-sizing our organization to become as competitive as possible."
These latest job cuts will affect only white-collar, non-union workers.
The company announced Thursday that it would eliminate one shift at a Toledo, Ohio, Jeep plant and accelerate the closing of its SUV factory in Newark, Del. Those moves will reduce Chrysler's payroll by about 1,825 jobs.
The Newark plant had originally been scheduled to close by the end of 2009. It is the only factory building the Dodge Durango and Chrysler Aspen full-size SUVs.
In Friday's job-cut announcement, the company also said it would make other cost cutting moves in the near future.
Chrysler, which is privately owned by Cerberus Capital Management, has reportedly been in talks with General Motors (GM, Fortune 500) about a possible buyout or merger. The company has also reportedly been in talks with Nissan (NSANY) and Renault about joining their cross-ownership alliance.
OptionsXpress: Outlook And 3rd Quarter
About OptionsXpress:
optionsXpress Holdings, Inc., a pioneer in equity options and futures trading, offers an innovative suite of online brokerage services for investor education, strategy evaluation and trade execution. optionsXpress Holdings subsidiaries include optionsXpress, Inc., a retail online brokerage specializing in options and futures, and brokersXpress, LLC, an online trading and reporting platform for independent investment professionals and Open E Cry, LLC, an innovative futures broker offering direct access futures trading for high volume commodities and futures traders through its proprietary software platform. Barron's named optionsXpress the number one online broker for four years in a row (2003 to 2006) and Kiplinger's Personal Finance named it the top discount broker in 2006.
OptionsXpress 3rd Quarter Results:optionsXpress Holdings, Inc. (NasdaqGS: OXPS - News) today reported results for the three months ended September 30, 2008. Highlights from the third quarter 2008, which incorporate the acquisition of Open E Cry that closed on July 1, 2008, included:
Revenues of $66.9 million, a 4% increase year-over-year
Net income of $24.0 million, or $0.40 per diluted share
Daily average revenue trades (DART) of 47,800, a 30% increase year-over-year
Net new account growth of 10,900 during the quarter, resulting in 305,200 customer accounts, a 23% increase year-over-year
$5.3 billion in customer assets on September 30, 2008
During the quarter, optionsXpress announced a dividend of $0.08 per share. The total amount of the dividend was approximately $4.8 million and was paid to shareholders on September 19, 2008.
In addition, brokersXpress Illinois Inc., a subsidiary of optionsXpress, announced that it has signed a definitive agreement to acquire Horwitz & Associates, Inc., an independent broker/dealer and investment advisor for $4 million in cash and additional consideration based on future performance. Horwitz & Associates, Inc., located in Riverwoods, IL, had 28 independent registered representatives and advisors, over 4,000 accounts and approximately $1 billion in customer assets as of September 30, 2008.
OptionsXpress Outlook:
According to David Fisher, Chief Executive Officer of optionsXpress:
“optionsXpress has thrived in the face of turmoil in the financial markets that began over a year ago. We have delivered solid results and executed our strategies to drive growth. We still firmly believe in the secular market growth story for retail investors using derivatives and continue to see additional growth opportunities like our recent acquisition of Open E Cry and partnership with Indian brokerage Reliance Money. In the short-term, customers have remained engaged and in the longer-term we anticipate that our educational resources, diverse products and robust platform will help customers manage their portfolios through both challenging and more stable conditions.”
optionsXpress Holdings, Inc., a pioneer in equity options and futures trading, offers an innovative suite of online brokerage services for investor education, strategy evaluation and trade execution. optionsXpress Holdings subsidiaries include optionsXpress, Inc., a retail online brokerage specializing in options and futures, and brokersXpress, LLC, an online trading and reporting platform for independent investment professionals and Open E Cry, LLC, an innovative futures broker offering direct access futures trading for high volume commodities and futures traders through its proprietary software platform. Barron's named optionsXpress the number one online broker for four years in a row (2003 to 2006) and Kiplinger's Personal Finance named it the top discount broker in 2006.
OptionsXpress 3rd Quarter Results:optionsXpress Holdings, Inc. (NasdaqGS: OXPS - News) today reported results for the three months ended September 30, 2008. Highlights from the third quarter 2008, which incorporate the acquisition of Open E Cry that closed on July 1, 2008, included:
Revenues of $66.9 million, a 4% increase year-over-year
Net income of $24.0 million, or $0.40 per diluted share
Daily average revenue trades (DART) of 47,800, a 30% increase year-over-year
Net new account growth of 10,900 during the quarter, resulting in 305,200 customer accounts, a 23% increase year-over-year
$5.3 billion in customer assets on September 30, 2008
During the quarter, optionsXpress announced a dividend of $0.08 per share. The total amount of the dividend was approximately $4.8 million and was paid to shareholders on September 19, 2008.
In addition, brokersXpress Illinois Inc., a subsidiary of optionsXpress, announced that it has signed a definitive agreement to acquire Horwitz & Associates, Inc., an independent broker/dealer and investment advisor for $4 million in cash and additional consideration based on future performance. Horwitz & Associates, Inc., located in Riverwoods, IL, had 28 independent registered representatives and advisors, over 4,000 accounts and approximately $1 billion in customer assets as of September 30, 2008.
OptionsXpress Outlook:
According to David Fisher, Chief Executive Officer of optionsXpress:
“optionsXpress has thrived in the face of turmoil in the financial markets that began over a year ago. We have delivered solid results and executed our strategies to drive growth. We still firmly believe in the secular market growth story for retail investors using derivatives and continue to see additional growth opportunities like our recent acquisition of Open E Cry and partnership with Indian brokerage Reliance Money. In the short-term, customers have remained engaged and in the longer-term we anticipate that our educational resources, diverse products and robust platform will help customers manage their portfolios through both challenging and more stable conditions.”
Thursday, October 23, 2008
American Airlines Suing Yahoo!
American Airlines is suing Yahoo over trademark infringement. The company says that when Yahoo displays competitors’ ads next to theirs, Yahoo sends business to AA’s competitors.
American Airlines first sued Google, and arrived at an undisclosed settlement in July. Furthermore, the keywords “American Airlines” and “AAdvantage” are no longer for sale within the Google Adwords program.
Yahoo is expected to reach a similar out of court settlement with American Airlines, since the last thing search engines want is a court ruling that opens the door to lawsuits from every company with a trademark.
American Airlines first sued Google, and arrived at an undisclosed settlement in July. Furthermore, the keywords “American Airlines” and “AAdvantage” are no longer for sale within the Google Adwords program.
Yahoo is expected to reach a similar out of court settlement with American Airlines, since the last thing search engines want is a court ruling that opens the door to lawsuits from every company with a trademark.
RealtyTrac: Foreclosure Rate Up
According to a monthly report by research firm RealtyTrac, U.S. foreclosure activity in September rose 21 percent from a year earlier but fell by double-digits from the prior month as some state laws slowed the foreclosure process.
RealtyTrac, which records property in various stages of foreclosure, noted that foreclosure filings -- default notices, auction sale notices and bank repossessions -- fell by 12 percent from August to 265,968 in September.
That means one in every 475 U.S. households received a foreclosure filing in September, the firm said in its report released on Thursday.
"Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed down the pace at which lenders are moving forward with foreclosures," James Saccacio, RealtyTrac chief executive, said in a statement.
Nevada posted the highest foreclosure rate in September, with an 11 percent increase from the previous month, according to RealtyTrac.
Foreclosure filings rose 137 percent from a year earlier to 13,022 in September translating into one in every 82 housing units -- more than 5 times the national average.
Florida was second with one in every 178 housing units receiving a foreclosure filing in September.
Foreclosure filings rose 44 percent from a year earlier to 47,956, according to RealtyTrac California was third after seeing a 32 decrease from August but a 36 rise from a year earlier to 69,548.
One in every 189 homes received a foreclosure filing in September.
Arizona, Georgia, Michigan, Ohio, New Jersey, Indiana and Colorado were among the top ten states with the highest foreclosure rate in September.
RealtyTrac, which records property in various stages of foreclosure, noted that foreclosure filings -- default notices, auction sale notices and bank repossessions -- fell by 12 percent from August to 265,968 in September.
That means one in every 475 U.S. households received a foreclosure filing in September, the firm said in its report released on Thursday.
"Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed down the pace at which lenders are moving forward with foreclosures," James Saccacio, RealtyTrac chief executive, said in a statement.
Nevada posted the highest foreclosure rate in September, with an 11 percent increase from the previous month, according to RealtyTrac.
Foreclosure filings rose 137 percent from a year earlier to 13,022 in September translating into one in every 82 housing units -- more than 5 times the national average.
Florida was second with one in every 178 housing units receiving a foreclosure filing in September.
Foreclosure filings rose 44 percent from a year earlier to 47,956, according to RealtyTrac California was third after seeing a 32 decrease from August but a 36 rise from a year earlier to 69,548.
One in every 189 homes received a foreclosure filing in September.
Arizona, Georgia, Michigan, Ohio, New Jersey, Indiana and Colorado were among the top ten states with the highest foreclosure rate in September.
Wednesday, October 22, 2008
WKU Campus On Lockdown
Western Kentucky University officials say they have received a report of men armed with guns on a campus of the school in south central Kentucky.
University spokesman Bob Skipper says the incident is occurring
inside the school's South Campus. Skipper says the building has
been evacuated and police are searching the area.
University lawyer Deborah Wilkins says there are no reports of
injuries.
Skipper says he has little information at this point.
The university's South Campus is home to Bowling Green Community
College.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
University spokesman Bob Skipper says the incident is occurring
inside the school's South Campus. Skipper says the building has
been evacuated and police are searching the area.
University lawyer Deborah Wilkins says there are no reports of
injuries.
Skipper says he has little information at this point.
The university's South Campus is home to Bowling Green Community
College.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
Market Update: Financial Sector Weakening
Wachovia (WB 5.88, -0.21) posted a massive $24 billion, or $11.89 per share, third quarter loss this morning. However, most of the loss was due to a noncash write-down of goodwill, which was expected as part of Wachovia's merger agreement with Wells Fargo (WFC 31.11, -1.53).
A total of 93% of stocks within the S&P 500 are in the red. The biggest percent losers are Coventry Health Care (CVH 14.78, -13.71), SanDisk (SNDK 10.04, -4.72) and General Growth Properties (GGP 3.44, -1.40). Coventry is down 48% after missing its third quarter earnings per share estimates by a wide margin and slashing its 2008 guidance as the health insurer has been pressured by costs and investment write-downs.
Flash memory maker SanDisk is down 32% after Samsung pulled its $26 per share, or $5.9 billion, bid. SanDisk had previously rejected the offer as too low. Samsung now believes the offer too high given SanDisk's weak third quarter and uncertain outlook.
A total of 93% of stocks within the S&P 500 are in the red. The biggest percent losers are Coventry Health Care (CVH 14.78, -13.71), SanDisk (SNDK 10.04, -4.72) and General Growth Properties (GGP 3.44, -1.40). Coventry is down 48% after missing its third quarter earnings per share estimates by a wide margin and slashing its 2008 guidance as the health insurer has been pressured by costs and investment write-downs.
Flash memory maker SanDisk is down 32% after Samsung pulled its $26 per share, or $5.9 billion, bid. SanDisk had previously rejected the offer as too low. Samsung now believes the offer too high given SanDisk's weak third quarter and uncertain outlook.
Amanda Carraway Poses Nude in Playboy(SFW!)
Former Miss Kansas 1999 Amanda Carraway, wife of Arizona Cardinals Linebacker Monty Beisel, has recently posed nude for Playboy. Beisel rose to fame a couple of weeks ago when he blocked a punt in overtime and returned it for a touchdown. Now his hot wife is making the headlines! Besides posing for Playboy, Carraway has also appeared as a Baywatch extra, and in the movies Studio 666(2005) and Who's Your Daddy?(2003).
Dancing With The Stars: Toni Braxton Sent Packing
Latest victim on Dancing With The Stars: Toni Braxton. The singer and her professional partner, Alec Mazo, were eliminated Tuesday from ABC's popular dancing competition. The pair received a score of 22 out of 30 from the show's judges during Monday's performance after a respectable West Coast swing routine. Unfortunately, the viewer votes weren't enough to save them.
"My goal was reached," said Braxton, who has coronary microvascular angina, after she was dismissed. "I wanted to do better. I wanted to breathe better. And I was definitely breathing better. I've come a long way from Week One to Week Now."
Celebrities remaining in the competition include TV personality Brooke Burke; singer Lance Bass; former NFL star Warren Sapp; Olympic gold medalist Maurice Greene; actor Cody Linley; and actresses Cloris Leachman and Susan Lucci.
"My goal was reached," said Braxton, who has coronary microvascular angina, after she was dismissed. "I wanted to do better. I wanted to breathe better. And I was definitely breathing better. I've come a long way from Week One to Week Now."
Celebrities remaining in the competition include TV personality Brooke Burke; singer Lance Bass; former NFL star Warren Sapp; Olympic gold medalist Maurice Greene; actor Cody Linley; and actresses Cloris Leachman and Susan Lucci.
Tuesday, October 21, 2008
Apple (AAPL) Stock Keeps Rising
Apple Inc on Tuesday reported a fiscal fourth-quarter profit of 1.14 billion dollars, or 1.26 dollars a share, up 24 per cent from a profit of 904 billion dollars in the same quarter last year.
The company shipped 2,611,000 Macintosh computers during the quarter, representing 21 per cent unit growth and 17 per cent revenue growth over the year-ago quarter. It sold 11,052,000 iPods during the quarter, representing 8 per cent unit growth and 3 per cent revenue growth. Quarterly iPhone units sold were 6,892,000 compared to 1,119,000 in the year-ago-quarter.
The company shipped 2,611,000 Macintosh computers during the quarter, representing 21 per cent unit growth and 17 per cent revenue growth over the year-ago quarter. It sold 11,052,000 iPods during the quarter, representing 8 per cent unit growth and 3 per cent revenue growth. Quarterly iPhone units sold were 6,892,000 compared to 1,119,000 in the year-ago-quarter.
Stock Market Overview 10/21/08
The stock market posted a large loss on Tuesday as several companies posted quarterly earnings misses and cautious outlooks that overshadowed signs of improvement in the credit markets. In addition, investors digested news the U.S. government plans to take additional steps to shore up money market mutual funds.
The S&P 500 spent the entirety of the session in negative territory, although it did see large swings. The Index traded near the unchanged mark with an hour of trade left, but a surge of selling interest sent it to session lows to settle with a loss of 3.1%.
It was extremely busy session on the earnings front. Results were mixed -- of the 77 companies that reported earnings after yesterday's close and before this session's open, 52% topped estimates, 35% missed and 13% were in-line. Outlooks were cautious -- of the 49 companies that issued guidance, 45% were negative, 30% were in-line, 21% were mixed and only 3% were positive.
Some notable names that topped third quarter earnings estimates include 3M (MMM 60.02, +2.51), American Express (AXP 26.33, +1.98), DuPont (DD 33.32, -2.85), Pfizer (PFE 17.35, +0.01) and Lockheed Martin (LMT 84.43, -8.79). DuPont and Lockheed, however, issued downside earnings guidance for their fourth quarter and full year.
The more widely held companies that missed estimates include BlackRock (BLK 129.24, -13.98), Caterpillar (CAT 38.84, -2.06), Freeport-McMoRan (FCX 32.81, -3.91) and Texas Instruments (TXN 16.85, -1.13). Texas Instruments also gave a downside fourth quarter earnings outlook, citing a slowdown in orders.
With regard to the government's latest effort, the Fed will buy commercial paper -- which is short-term corporate debt that many businesses rely on -- from money market mutual funds. The Fed said it created the facility because money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs. The Fed had already announced plans to buy commercial paper directly from companies.
While the Fed needing to shore up money market funds shows that the financial markets remain considerably strained, there continue to be signs of improvement. The rates banks charge each other for short-term dollar loans, measured by Libor, decreased across all terms.
In the end all ten sectors posted a decline in broad-based weakness. Volume was on the light side with 1.16 billion shares exchanging hands on the NYSE, which is short of the one-year average of 1.49 billion.
The tech sector (-5.6%) posted a large decline due to the 6.3% drop in Texas Instruments. An earnings warning from Sun Microsystems (JAVA 4.78, -1.00) also weighed on the sector.
The energy sector fell 4.3% as crude prices dropped 4.5% to $70.89 per barrel. The drop in crude prices was fueled by global economic concerns and a 1.5% surge in the dollar.
The materials sector declined 5.7% after copper producer Freeport McMoRan plunged 11%.
The financial sector outperformed on a relative basis with a loss of 1.8%. Strength in American Express helped offset weakness in BlackRock and Citigroup (C 14.17, -0.92). DJ30 -231.77 NASDAQ -73.35 SP500 -30.35 NASDAQ Adv/Vol/Dec 745/2.15 bln/2029 NYSE Adv/Vol/Dec 925/1.16 bln/2182
The S&P 500 spent the entirety of the session in negative territory, although it did see large swings. The Index traded near the unchanged mark with an hour of trade left, but a surge of selling interest sent it to session lows to settle with a loss of 3.1%.
It was extremely busy session on the earnings front. Results were mixed -- of the 77 companies that reported earnings after yesterday's close and before this session's open, 52% topped estimates, 35% missed and 13% were in-line. Outlooks were cautious -- of the 49 companies that issued guidance, 45% were negative, 30% were in-line, 21% were mixed and only 3% were positive.
Some notable names that topped third quarter earnings estimates include 3M (MMM 60.02, +2.51), American Express (AXP 26.33, +1.98), DuPont (DD 33.32, -2.85), Pfizer (PFE 17.35, +0.01) and Lockheed Martin (LMT 84.43, -8.79). DuPont and Lockheed, however, issued downside earnings guidance for their fourth quarter and full year.
The more widely held companies that missed estimates include BlackRock (BLK 129.24, -13.98), Caterpillar (CAT 38.84, -2.06), Freeport-McMoRan (FCX 32.81, -3.91) and Texas Instruments (TXN 16.85, -1.13). Texas Instruments also gave a downside fourth quarter earnings outlook, citing a slowdown in orders.
With regard to the government's latest effort, the Fed will buy commercial paper -- which is short-term corporate debt that many businesses rely on -- from money market mutual funds. The Fed said it created the facility because money market mutual funds and other investors have had difficulty selling assets to satisfy redemption requests and meet portfolio rebalancing needs. The Fed had already announced plans to buy commercial paper directly from companies.
While the Fed needing to shore up money market funds shows that the financial markets remain considerably strained, there continue to be signs of improvement. The rates banks charge each other for short-term dollar loans, measured by Libor, decreased across all terms.
In the end all ten sectors posted a decline in broad-based weakness. Volume was on the light side with 1.16 billion shares exchanging hands on the NYSE, which is short of the one-year average of 1.49 billion.
The tech sector (-5.6%) posted a large decline due to the 6.3% drop in Texas Instruments. An earnings warning from Sun Microsystems (JAVA 4.78, -1.00) also weighed on the sector.
The energy sector fell 4.3% as crude prices dropped 4.5% to $70.89 per barrel. The drop in crude prices was fueled by global economic concerns and a 1.5% surge in the dollar.
The materials sector declined 5.7% after copper producer Freeport McMoRan plunged 11%.
The financial sector outperformed on a relative basis with a loss of 1.8%. Strength in American Express helped offset weakness in BlackRock and Citigroup (C 14.17, -0.92). DJ30 -231.77 NASDAQ -73.35 SP500 -30.35 NASDAQ Adv/Vol/Dec 745/2.15 bln/2029 NYSE Adv/Vol/Dec 925/1.16 bln/2182
Oil Price Drops, Dollar Gains on Euro
As posted by the associated press:
Oil falls below $72 as dollar gains against euro
Tuesday October 21, 10:56 am ET
By Stevenson Jacobs, AP Business Writer
Oil falls below $72 as dollar gains on euro, OPEC production cut still weighs
NEW YORK (AP) -- Oil prices tumbled back below $72 a barrel Tuesday as a stronger dollar dented investor demand for commodities and outweighed concerns about an expected OPEC output cut.
At the pump, consumers got another price cut as a gallon of regular gasoline lost 3.4 cents overnight to a new national average of $2.89, according to auto club AAA, the Oil Price Information Service and Wright Express. Prices have fallen 30 percent from their July 11 peak of $4.11 a gallon and are quickly closing in on year-ago levels.
The dollar muscled higher against rival currencies as credit market conditions eased some and on speculation that the U.S. government might roll out another stimulus package in an effort to push the economy out of a deep downturn.
Investors often buy commodities like crude oil as an inflation hedge when the dollar weakens and sell those investments when the greenback rises.
Light, sweet crude for November delivery fell $2.75 to $71.50 on the New York Mercantile Exchange, after earlier dropping as low as $71. On Monday, the contract rose rose $2.40 to settle at $74.25 a barrel.
Crude oil is down 51 percent from its all-time peak of $147.27 reached July 11.
Alarmed by the rapid slide, the Organization of the Petroleum Exporting Countries, which controls 40 percent of the world's oil supply, is holding an extraordinary meeting Friday in Vienna. OPEC's president, Chakib Khelil, said Sunday the group is planning to announce an output reduction that analysts believe could total at least 1 million barrels a day.
But experts are divided over how much impact on OPEC cut will have on prices. Some believe waning global demand for energy will push prices as low as $50 a barrel, while others say a significant supply reduction could halt the downward the momentum.
"If OPEC does cut production, prices could return to the upside over the next three to six months," said Costanza Jacazio, an oil analyst with Barclays Capital in New York.
She said tighter global supplies could eventually push prices back toward the $90 range, a level believed to be favored by several OPEC members including Iran and Venezuela.
Oil-producing countries are facing steep serious budget shortfalls as oil prices come down from record levels. Khelil has said OPEC may cut output again at a meeting in December, and that the group considers the oil market oversupplied by about 2 million barrels a day.
Investors are also keeping a close eye on whether non-OPEC producers, such as Russia, will reduce supply as analysts lower price expectations for next year. Deutsche Bank on Monday cut its 2009 oil price forecast to $60 a barrel from $92 and predicted $57.50 for 2010.
"Producers are getting concerned about this downward spiral in pricing since the summer," said Victor Shum, an energy analyst at consultancy Purvin & Gertz in Singapore. "Some governments have based their budgets higher than current prices."
Oil market traders are also closely watching economic conditions in the U.S.
Federal Reserve Chairman Ben Bernanke told the House Budget Committee on Monday that a fresh round of government measures might help ease the country's downturn. There were also signs Tuesday of a reviving credit market as bank-to-bank lending rates eased further.
In other Nymex trading, heating oil futures fell 3.69 cents to $2.1930 a gallon, while gasoline prices lost 2.85 cents to $1.6916 a gallon. Natural gas for December delivery fell 1.3 cents to $7.198 per 1,000 cubic feet.
In London, December Brent crude fell $2.24 to $69.79 a barrel on the ICE Futures exchange.
Associated Press writers Pablo Gorondi in Budapest, Hungary and Alex Kennedy in Singapore contributed to this report.
Oil falls below $72 as dollar gains against euro
Tuesday October 21, 10:56 am ET
By Stevenson Jacobs, AP Business Writer
Oil falls below $72 as dollar gains on euro, OPEC production cut still weighs
NEW YORK (AP) -- Oil prices tumbled back below $72 a barrel Tuesday as a stronger dollar dented investor demand for commodities and outweighed concerns about an expected OPEC output cut.
At the pump, consumers got another price cut as a gallon of regular gasoline lost 3.4 cents overnight to a new national average of $2.89, according to auto club AAA, the Oil Price Information Service and Wright Express. Prices have fallen 30 percent from their July 11 peak of $4.11 a gallon and are quickly closing in on year-ago levels.
The dollar muscled higher against rival currencies as credit market conditions eased some and on speculation that the U.S. government might roll out another stimulus package in an effort to push the economy out of a deep downturn.
Investors often buy commodities like crude oil as an inflation hedge when the dollar weakens and sell those investments when the greenback rises.
Light, sweet crude for November delivery fell $2.75 to $71.50 on the New York Mercantile Exchange, after earlier dropping as low as $71. On Monday, the contract rose rose $2.40 to settle at $74.25 a barrel.
Crude oil is down 51 percent from its all-time peak of $147.27 reached July 11.
Alarmed by the rapid slide, the Organization of the Petroleum Exporting Countries, which controls 40 percent of the world's oil supply, is holding an extraordinary meeting Friday in Vienna. OPEC's president, Chakib Khelil, said Sunday the group is planning to announce an output reduction that analysts believe could total at least 1 million barrels a day.
But experts are divided over how much impact on OPEC cut will have on prices. Some believe waning global demand for energy will push prices as low as $50 a barrel, while others say a significant supply reduction could halt the downward the momentum.
"If OPEC does cut production, prices could return to the upside over the next three to six months," said Costanza Jacazio, an oil analyst with Barclays Capital in New York.
She said tighter global supplies could eventually push prices back toward the $90 range, a level believed to be favored by several OPEC members including Iran and Venezuela.
Oil-producing countries are facing steep serious budget shortfalls as oil prices come down from record levels. Khelil has said OPEC may cut output again at a meeting in December, and that the group considers the oil market oversupplied by about 2 million barrels a day.
Investors are also keeping a close eye on whether non-OPEC producers, such as Russia, will reduce supply as analysts lower price expectations for next year. Deutsche Bank on Monday cut its 2009 oil price forecast to $60 a barrel from $92 and predicted $57.50 for 2010.
"Producers are getting concerned about this downward spiral in pricing since the summer," said Victor Shum, an energy analyst at consultancy Purvin & Gertz in Singapore. "Some governments have based their budgets higher than current prices."
Oil market traders are also closely watching economic conditions in the U.S.
Federal Reserve Chairman Ben Bernanke told the House Budget Committee on Monday that a fresh round of government measures might help ease the country's downturn. There were also signs Tuesday of a reviving credit market as bank-to-bank lending rates eased further.
In other Nymex trading, heating oil futures fell 3.69 cents to $2.1930 a gallon, while gasoline prices lost 2.85 cents to $1.6916 a gallon. Natural gas for December delivery fell 1.3 cents to $7.198 per 1,000 cubic feet.
In London, December Brent crude fell $2.24 to $69.79 a barrel on the ICE Futures exchange.
Associated Press writers Pablo Gorondi in Budapest, Hungary and Alex Kennedy in Singapore contributed to this report.
Circuit City Going Bankrupt?
More bad news for Circuit City. Sources 'familiar with the company' say that as many as 150 stores across the U.S. will be closed. Earlier this month, the retailer hired Skadden, Arps, Slate, Meagher & Flom LLP and it has also retained FTI Consulting Inc to develop a turnaround plan as well as investment bank Rothschild Inc to guide talks with banks and secure emergency financing.
The company's advisers are trying to line up additional financing but so far lenders have shown little interest, the paper said.
"The management team, board of directors, and its strategic financial advisers are conducting a comprehensive review of all aspects of our business to determine the best methods of accelerating our turnaround," Circuit City spokesman Bill Cimino told the paper without giving details of the plans.
A spokesperson for the company could not be immediately reached for comment.
The company's advisers are trying to line up additional financing but so far lenders have shown little interest, the paper said.
"The management team, board of directors, and its strategic financial advisers are conducting a comprehensive review of all aspects of our business to determine the best methods of accelerating our turnaround," Circuit City spokesman Bill Cimino told the paper without giving details of the plans.
A spokesperson for the company could not be immediately reached for comment.
Monday, October 20, 2008
Actor Rudy Ray Moore, Best Known as 'Dolemite', has Died
Rudy Ray Moore, best known for his lead roles as a pimp in 'Dolemite' and 'The Human Tornado', has died after suffering from complications due to diabetes. He was 81.
Moore began his entertainment career in the late 1950s as an R&B singer, later branching out into comedy and acting.
Rudy Ray Moore co-wrote and starred in 'Dolemite' in 1975. The film is a classic example of blaxploitation cinema, and has since gone on to achieve cult status.
Filmography:
Dolemite
The Human Tornado
Monkey Hustle
Petey Wheatstraw
Disco Godfather
Rude
B A P S
Penitentiary II
Legend of Dolemite
Live at Wetlands
The Great White Hype
Shaolin Dolemite
Big Money Hu$tla$
Dolemite Explosion
Vampire Assassin
A Stupid Movie For Jerks
Lil' Pimp
The Dolemite Explosion (2007)
Moore began his entertainment career in the late 1950s as an R&B singer, later branching out into comedy and acting.
Rudy Ray Moore co-wrote and starred in 'Dolemite' in 1975. The film is a classic example of blaxploitation cinema, and has since gone on to achieve cult status.
Filmography:
Dolemite
The Human Tornado
Monkey Hustle
Petey Wheatstraw
Disco Godfather
Rude
B A P S
Penitentiary II
Legend of Dolemite
Live at Wetlands
The Great White Hype
Shaolin Dolemite
Big Money Hu$tla$
Dolemite Explosion
Vampire Assassin
A Stupid Movie For Jerks
Lil' Pimp
The Dolemite Explosion (2007)
Sarah Palin Powers Saturday Night Live Ratings
Sarah Palin's appearence on Saturday Night Live (October 18, 2008) helped the show score its best ratings since 1994. Most of the sketches revolved around her refusal to participate; in the shows opener, Palin and producer Lorne Michaels looked on from backstage as Tina Fey impersonated her during a fake press conference.
"I really wish that that had been you," Michaels tells her. Palin responds, "Well, Lorne, you know, I just didn't think it was a realistic depiction of how one of my press conferences would've gone."
NBC said SNL enjoyed its best numbers in the nation's top TV markets since a post-Olympic, post-knee-clubbed Nancy Kerrigan hosted in 1994.
"I really wish that that had been you," Michaels tells her. Palin responds, "Well, Lorne, you know, I just didn't think it was a realistic depiction of how one of my press conferences would've gone."
NBC said SNL enjoyed its best numbers in the nation's top TV markets since a post-Olympic, post-knee-clubbed Nancy Kerrigan hosted in 1994.
Fashion Critic Mr. Blackwell Dies in L.A.
Mr. Blackwell, the creator of the annual Ten Worst Dressed Women list, has died. He was 86.
Mr. Blackwell died Sunday of complications from an intestinal infection, publicist Harlan Boll said.
Born Richard Sylvan Selzer in 1922, Blackwell recounted in his autobiography, "From Rags to Bitches," a troubled, poverty-ridden childhood in which he was variously a truant, thief and prostitute.
Blackwell was a little-known dress designer when he issued his first tongue-in-cheek criticism of Hollywood fashion disasters for 1960 — long before Joan Rivers and others turned such ridicule into a daily affair.
The critic acknowledged he had mixed feelings about appearing so publicly mean. Most of the women he put through the wringer, he said, were people he genuinely admired for their talent if not their fashion sense.
"The list is and was a satirical look at the fashion flops of the year," he said in 1998. "I merely said out loud what others were whispering. ... It's not my intention to hurt the feelings of these people. It's to put down the clothing they're wearing."
Sunday, October 19, 2008
Powell Endorses Obama For President
In a surprise move, retired General Colin Powell has announced his support of Senator Barack Obama's presidential campaign. Powell, a Republican who was President Bush's first secretary of state, endorsed Democrat Barack Obama for president Sunday and criticized the tone of Republican John McCain's campaign.
Powell said both Obama and Republican John McCain are qualified to be commander in chief. But he said Obama is better suited to handle the nation's economic problems as well as help improve its standing in the world.
"It isn't easy for me to disappoint Sen. McCain in the way that I have this morning, and I regret that," Powell, interviewed on NBC's "Meet the Press," said of his longtime friend, the Arizona senator.
"But I firmly believe that at this point in America's history, we need a president that will not just continue, even with a new face and with the changes and with some maverick aspects, who will not just continue basically the policies that we have been following in recent years," Powell said.
"I think we need a transformational figure. I think we need a president who is a generational change and that's why I'm supporting Barack Obama, not out of any lack of respect or admiration for Sen. John McCain."
Powell's endorsement has been much anticipated because he is a Republican with impressive foreign policy credentials, a subject on which Obama is weak. At the same time, he is a black man and Obama would be the nation's first black president.
Powell said he was cognizant of the racial aspect of his endorsement, but said that was not the dominant factor in his decision. If it was, he said, he would have made the endorsement months ago.
Powell also expressed disappointment in the negative tone of McCain's campaign, his choice of Alaska Gov. Sarah Palin as a running mate and McCain's and Palin's decision to focus in the closing weeks of the contest on Obama's ties to 1960s-era radical William Ayers.
He said McCain's choice of Palin raised questions about judgment.
"I don't believe she's ready to be president of the United States," Powell said.
Powell, as secretary of state, helped make the case before the United Nations for the U.S.-led invasion of Iraq, launched in March 2003. A retired general, he also was the nation's top military commander, chairman of the Joint Chiefs of Staff, during the first Gulf war under President George H.W. Bush.
McCain disagreed with Powell's decision and said he has been endorsed by four other former secretaries of state, all veterans of Republican administrations: Henry Kissinger, James A. Baker III, Lawrence Eagleburger and Alexander Haig.
"Well, I've always admired and respected Gen. Powell. We're longtime friends. This doesn't come as a surprise," McCain said on "Fox News Sunday."
Asked whether Powell's endorsement would undercut his campaign's assertion that Obama is not ready to lead, McCain said: "Well, again, we have a very, we have a respectful disagreement, and I think the American people will pay close attention to our message for the future and keeping America secure."
Powell said he does not plan to campaign for Obama.
Powell said both Obama and Republican John McCain are qualified to be commander in chief. But he said Obama is better suited to handle the nation's economic problems as well as help improve its standing in the world.
"It isn't easy for me to disappoint Sen. McCain in the way that I have this morning, and I regret that," Powell, interviewed on NBC's "Meet the Press," said of his longtime friend, the Arizona senator.
"But I firmly believe that at this point in America's history, we need a president that will not just continue, even with a new face and with the changes and with some maverick aspects, who will not just continue basically the policies that we have been following in recent years," Powell said.
"I think we need a transformational figure. I think we need a president who is a generational change and that's why I'm supporting Barack Obama, not out of any lack of respect or admiration for Sen. John McCain."
Powell's endorsement has been much anticipated because he is a Republican with impressive foreign policy credentials, a subject on which Obama is weak. At the same time, he is a black man and Obama would be the nation's first black president.
Powell said he was cognizant of the racial aspect of his endorsement, but said that was not the dominant factor in his decision. If it was, he said, he would have made the endorsement months ago.
Powell also expressed disappointment in the negative tone of McCain's campaign, his choice of Alaska Gov. Sarah Palin as a running mate and McCain's and Palin's decision to focus in the closing weeks of the contest on Obama's ties to 1960s-era radical William Ayers.
He said McCain's choice of Palin raised questions about judgment.
"I don't believe she's ready to be president of the United States," Powell said.
Powell, as secretary of state, helped make the case before the United Nations for the U.S.-led invasion of Iraq, launched in March 2003. A retired general, he also was the nation's top military commander, chairman of the Joint Chiefs of Staff, during the first Gulf war under President George H.W. Bush.
McCain disagreed with Powell's decision and said he has been endorsed by four other former secretaries of state, all veterans of Republican administrations: Henry Kissinger, James A. Baker III, Lawrence Eagleburger and Alexander Haig.
"Well, I've always admired and respected Gen. Powell. We're longtime friends. This doesn't come as a surprise," McCain said on "Fox News Sunday."
Asked whether Powell's endorsement would undercut his campaign's assertion that Obama is not ready to lead, McCain said: "Well, again, we have a very, we have a respectful disagreement, and I think the American people will pay close attention to our message for the future and keeping America secure."
Powell said he does not plan to campaign for Obama.
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