General News:
– Cambridge Place’s Caliber Fund will close its doors due to losses in subprime mortgages.
– Private-equity firm, Carlyle Group, will postpone its $415 IPO of a mortgage fund.
– Wires are stating that Kia is the 8th company to postpone a bond sale. Kia’s bond size is $500 million.
– Wall Street Journal is reporting the end of the private-equity boom due to tighter credit.
– Following in the footsteps of General Motors (GM), Ford (F) is offering 0% financing for 3 years to move product.
– Crude oil futures top $70/barrel for the first time since September 1st, 2006 as inventories unexpectedly fell.
– The economy pushed slowly ahead at just 0.7% in the first quarter, the slowest in more than four years, as some businesses crimped spending given uncertainties about the severity of the housing slump.
Asia/Europe:
Asia:
– Fear over reduced liquidity and supply caused the Chinese markets to plummet 4%.
– Bank of Japan’s, Fukui, said that adjusting interest rates gradually would insure a gradual price rise.
Europe:
– German unemployment fell 37,000. A decline of 20,000 was expected.
– German unemployment rate was in line at 6.4%.
– Euro-Zone M3 growth rose 10.7%, 10.4% was expected.
– European Central Bank’s, Liebscher, says that the ECB must act firmly as M3 show medium to long-term upside inflation risks.
– Bank of England remarks: Barker says that the labor market is weakening but only slightly. Lomax says that the BOE is not behind on the inflation curve. Tucker says that the key issues are consumption, global demand and capacity.
Corporate News:
– MON reports strong numbers.
– KB Homes (KBH) reported a loss in the fiscal second quarter, as the homebuilder bled money to write down inventory amid declining demand and lower prices for homes.
– Beazer Homes USA (BZH) fired their chief account officer.
– Rite Aid Corp. (RAD), the nation’s third-largest drugstore chain, reported a rise in profit for the first quarter as sales rose in both the pharmacy and front-end sections of the stores.
– Barrington Capital reported that it had a stake in Dillard’s Inc. (DDS).
– Novellus Systems (NVLS) guides are at the lower end of the range.
– Crown Castle International (CCI) has indicated insider selling.
– Cereal maker, General Mills Inc. (GIS) reported that its fiscal fourth-quarter profit rose as the company ramped up advertising and set a record of $1 billion in snack sales for the year.
– General Motors Corp. (GM) announced that it is selling its Allison Transmission commercial and military business for about $5.6 billion to the private equity firm Carlyle Group and Canada’s Onex Corp.
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Favorable Comments:
– Alaska Airlines (ALK), AMR Corp. (AMR), Continental Airlines (CAL), Southwest Airlines (LUV), UAL Corp. (UAUA), and US Airways (LCC) are all upgraded at JP Morgan.
– AMBAC Financial (ABK) upgraded at Calyon.
– Asset Acceptance Capital (AACC) upgraded at Jeffries.
– Bare Escentuals (BARE) upgraded at Banc of America.
– Bioscrip (BIOS) upgraded at Piper Jaffray.
– Capital One (COF) upgraded at Friedman Billings.
– Luzottica (LUX) upgraded at UBS.
– Maxim Integrated (MXIM) upgraded at Bear Stearns.
Negative Comments:
– Broadcom (BRCM) downgraded at Pacific Growth Equities.
– Republic Airways (RJET) and SkyWest (SKYW) are downgraded at JP Morgan.
– UniFirst (UNF) downgraded at Barrington.
– Web.com (WWWW) downgraded at Roth.
– Chittenden (CHZ) downgraded at AG Edwards.
– CNA Financial (CNA) downgraded at Credit Suisse.
– Rural Cellular (RCCC) downgraded at Stanford Research.
