well fedex ruining the early happy times they were having due to oracle etc.
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FedEx 2Q Profit Falls on Fuel Costs
Thursday December 20, 10:56 am ET
By Woody Baird, Associated Press Writer
FedEx 2nd-Quarter Profit Falls 6 Pct, Offers 3rd-Qtr Outlook Below Wall Street Estimates
MEMPHIS, Tenn. (AP) -- Package courier FedEx Corp. reported Thursday its second-quarter profit fell 6 percent from a year ago, largely due to high fuel costs, lower demand for freight shipments and an overall sluggish U.S. economy.
The delivery company's growth overseas tempered the effects of the domestic economic slowdown and helped FedEx meet its lowered earnings expectations for the quarter. But it forecast profit for the current quarter that was below Wall Street estimates.
Its shares fell $1.41 to $93.22 in morning trading Thursday.
FedEx earned $479 million, or $1.54 a share, for the three months ended Nov. 30 compared with $511 million, or $1.64 a share, a year ago.
The company lowered its expected earnings for the second quarter last month to a range of $1.45 to $1.55, down from an earlier estimate of $1.60 to $1.75. Analysts surveyed by Thomson Financial expected earnings of $1.50 per share.
Revenue rose 6 percent to $9.45 billion from $8.93 billion last year. Analysts were expecting revenues of $9.32 billion.
"High fuel prices and weak U.S. economic growth year-over-year have impacted our business," said Frederick W. Smith, FedEx chairman, president and chief executive.
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FedEx 2Q Profit Falls on Fuel Costs
Thursday December 20, 10:56 am ET
By Woody Baird, Associated Press Writer
FedEx 2nd-Quarter Profit Falls 6 Pct, Offers 3rd-Qtr Outlook Below Wall Street Estimates
MEMPHIS, Tenn. (AP) -- Package courier FedEx Corp. reported Thursday its second-quarter profit fell 6 percent from a year ago, largely due to high fuel costs, lower demand for freight shipments and an overall sluggish U.S. economy.
The delivery company's growth overseas tempered the effects of the domestic economic slowdown and helped FedEx meet its lowered earnings expectations for the quarter. But it forecast profit for the current quarter that was below Wall Street estimates.
Its shares fell $1.41 to $93.22 in morning trading Thursday.
FedEx earned $479 million, or $1.54 a share, for the three months ended Nov. 30 compared with $511 million, or $1.64 a share, a year ago.
The company lowered its expected earnings for the second quarter last month to a range of $1.45 to $1.55, down from an earlier estimate of $1.60 to $1.75. Analysts surveyed by Thomson Financial expected earnings of $1.50 per share.
Revenue rose 6 percent to $9.45 billion from $8.93 billion last year. Analysts were expecting revenues of $9.32 billion.
"High fuel prices and weak U.S. economic growth year-over-year have impacted our business," said Frederick W. Smith, FedEx chairman, president and chief executive.
and bear stearns, lost 6.90 a share on the quarter
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Bear Stearns Posts 4Q Loss
Thursday December 20, 10:00 am ET
By Joe Bel Bruno, AP Business Writer
Bear Stearns Posts 4Q Losss Amid Bigger-Than-Expected Mortgage Writedown
NEW YORK (AP) -- Bear Stearns Cos. said Thursday a bigger-than-expected writedown in its mortgage portfolio caused the nation's fifth-largest U.S. investment bank to post the first loss in its 84-year history.
It took a $1.9 billion writedown in the quarter ended Nov. 30 as its mortgage-backed securities continued to lose value amid the global credit crisis. That was much larger than the $1.2 billion it expected in November.
Bear Stearns' fiscal fourth-quarter loss, and collapse of two hedge funds it managed during the summer, prompted Chief Executive Jimmy Cayne to pass on his 2007 bonus. Members of the company's executive committee also will not receive year-end bonuses.
"We are obviously upset with our 2007 results, particularly in light of the fact that weakness in fixed income more than offset strong and, in some areas, record-setting performance in other businesses," he said in a statement.
The fiscal fourth-quarter loss after paying preferred dividends was $859 million, or $6.90 per share, compared to a profit of $558 million, or $4 per share, a year earlier. The company had negative net revenue of $379 million, compared to revenue of $2.41 billion a year earlier.
The results broadly missed Wall Street expectations, as analysts were unable to get a handle on exactly how exposed Bear Stearns was to risky subprime mortgage securities. Analysts polled by Thomson Financial had expected a loss of $1.79 per share on $625.1 million of revenue for the quarter. No analyst polled by Thomson expected a loss of more than $2.45 per share.
Cayne is under pressure like other chief executives on Wall Street, as global banks have written off more than $100 billion in assets this year. Bear Stearns and other firms have seen writedowns from subprime-related investments and fixed-income trading come in much steeper than first expected.
On Wednesday, Morgan Stanley Inc. reported a $9.4 billion writedown from bad bets on mortgage debt -- almost triple what it originally expected. That triggered its first loss as a public company for the nation's second-largest investment bank.
It also unveiled a $5 billion investment from China's state-run investment vehicle. Bear Stearns agreed in October to a $1 billion investment from China's government-controlled Citic Securities Co.
Like Cayne, Morgan Stanley's John Mack will pass up a bonus that topped $40 million last year. It was not clear how much smaller, if at all, either man's bonus would have been this year.
Bear Stearns has undergone three waves of layoffs since two hedge funds it controlled collapsed during the summer. Some 1,500 jobs have been eliminated from its staff of around 15,500.
The company, one of the nation's biggest underwriters of mortgage-backed bonds, may be the Wall Street investment bank most directly exposed to this year's credit squeeze. It faces a number of legal actions related to the funds' collapse, including a suit filed this week by investor Barclays PLC.
Bear Stearns said fixed-income net revenue was negative $1.5 billion in the fourth quarter. However, it did not disclose how much was actually lost before being offset by hedging activity.
It reported fourth-quarter revenue from equity sales and trading dropped 11 percent to $384 million. Meanwhile, investment banking fees -- an area Cayne hoped to build on -- fell 44 percent to $205 million.
"The results, to us, seem to imply that the problems at Bear are not contained to mortgages and more broad based than seen elsewhere," Deutsche Bank Securities analyst Mike Mayo said in a note to clients.
With this quarter's sluggish performance, and an $850 million writedown during the third quarter, Bear Stearns reported a steep decline in full-year results. Profit in 2007 fell 90 percent from the year-ago period to $212 million.
The dismal year for Bear Stearns might put more heat on Cayne, 73, to announce succession plans. Citigroup Inc. CEO Charles Prince and Merrill Lynch & Co. CEO Stan O'Neal were both ousted after their companies posted massive subprime writedowns.
Cayne ousted his co-president, Warren Spector, after Bear Stearns closed the two troubled hedge funds. Spector was considered to be an heir-apparent at the company.
However, shares rose $1.78 to $92.36 as investors hoped the worst might be over for the company.
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Bear Stearns Posts 4Q Loss
Thursday December 20, 10:00 am ET
By Joe Bel Bruno, AP Business Writer
Bear Stearns Posts 4Q Losss Amid Bigger-Than-Expected Mortgage Writedown
NEW YORK (AP) -- Bear Stearns Cos. said Thursday a bigger-than-expected writedown in its mortgage portfolio caused the nation's fifth-largest U.S. investment bank to post the first loss in its 84-year history.
It took a $1.9 billion writedown in the quarter ended Nov. 30 as its mortgage-backed securities continued to lose value amid the global credit crisis. That was much larger than the $1.2 billion it expected in November.
Bear Stearns' fiscal fourth-quarter loss, and collapse of two hedge funds it managed during the summer, prompted Chief Executive Jimmy Cayne to pass on his 2007 bonus. Members of the company's executive committee also will not receive year-end bonuses.
"We are obviously upset with our 2007 results, particularly in light of the fact that weakness in fixed income more than offset strong and, in some areas, record-setting performance in other businesses," he said in a statement.
The fiscal fourth-quarter loss after paying preferred dividends was $859 million, or $6.90 per share, compared to a profit of $558 million, or $4 per share, a year earlier. The company had negative net revenue of $379 million, compared to revenue of $2.41 billion a year earlier.
The results broadly missed Wall Street expectations, as analysts were unable to get a handle on exactly how exposed Bear Stearns was to risky subprime mortgage securities. Analysts polled by Thomson Financial had expected a loss of $1.79 per share on $625.1 million of revenue for the quarter. No analyst polled by Thomson expected a loss of more than $2.45 per share.
Cayne is under pressure like other chief executives on Wall Street, as global banks have written off more than $100 billion in assets this year. Bear Stearns and other firms have seen writedowns from subprime-related investments and fixed-income trading come in much steeper than first expected.
On Wednesday, Morgan Stanley Inc. reported a $9.4 billion writedown from bad bets on mortgage debt -- almost triple what it originally expected. That triggered its first loss as a public company for the nation's second-largest investment bank.
It also unveiled a $5 billion investment from China's state-run investment vehicle. Bear Stearns agreed in October to a $1 billion investment from China's government-controlled Citic Securities Co.
Like Cayne, Morgan Stanley's John Mack will pass up a bonus that topped $40 million last year. It was not clear how much smaller, if at all, either man's bonus would have been this year.
Bear Stearns has undergone three waves of layoffs since two hedge funds it controlled collapsed during the summer. Some 1,500 jobs have been eliminated from its staff of around 15,500.
The company, one of the nation's biggest underwriters of mortgage-backed bonds, may be the Wall Street investment bank most directly exposed to this year's credit squeeze. It faces a number of legal actions related to the funds' collapse, including a suit filed this week by investor Barclays PLC.
Bear Stearns said fixed-income net revenue was negative $1.5 billion in the fourth quarter. However, it did not disclose how much was actually lost before being offset by hedging activity.
It reported fourth-quarter revenue from equity sales and trading dropped 11 percent to $384 million. Meanwhile, investment banking fees -- an area Cayne hoped to build on -- fell 44 percent to $205 million.
"The results, to us, seem to imply that the problems at Bear are not contained to mortgages and more broad based than seen elsewhere," Deutsche Bank Securities analyst Mike Mayo said in a note to clients.
With this quarter's sluggish performance, and an $850 million writedown during the third quarter, Bear Stearns reported a steep decline in full-year results. Profit in 2007 fell 90 percent from the year-ago period to $212 million.
The dismal year for Bear Stearns might put more heat on Cayne, 73, to announce succession plans. Citigroup Inc. CEO Charles Prince and Merrill Lynch & Co. CEO Stan O'Neal were both ousted after their companies posted massive subprime writedowns.
Cayne ousted his co-president, Warren Spector, after Bear Stearns closed the two troubled hedge funds. Spector was considered to be an heir-apparent at the company.
However, shares rose $1.78 to $92.36 as investors hoped the worst might be over for the company.
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Life is a bull
bears are hiccups
its not to late for you Tizdoom, you're still a young man
Life is a bull
bears are hiccups
its not to late for you Tizdoom, you're still a young man
Several bank stocks are on 52 week low list this morning.
Cutting rates has really helped them.
My favorite stock to hate Countrywide is back along the cliffs' edge...8$ range.
NCC, Key, Fitb, even C back near a multi year low.
Looks like the boys from Dubai can catch falling knives like everyone else.
:lolBIG:
Cutting rates has really helped them.
My favorite stock to hate Countrywide is back along the cliffs' edge...8$ range.
NCC, Key, Fitb, even C back near a multi year low.
Looks like the boys from Dubai can catch falling knives like everyone else.
:lolBIG:
i'll be a bear when there are "hiccups"
and a bull when i think its time to be bullish
i'm not a gloom and doomer cause i want to be, that's just what the siuation calls for my friend
are we heading for recession and did we peak in october and are in a new bear market i say yes and that's what my bets are on
and a bull when i think its time to be bullish
i'm not a gloom and doomer cause i want to be, that's just what the siuation calls for my friend
are we heading for recession and did we peak in october and are in a new bear market i say yes and that's what my bets are on
the last barrier is showing signs of crumbling the consumer and now jobs (the last to fall/lagging indicator)
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More People Sign Up for Jobless Benefits
Thursday December 20, 8:56 am ET
More People Sign Up for Unemployment Benefits, Suggesting That Job Market Is Softening
WASHINGTON (AP) -- More people signed up for unemployment benefits last week, suggesting that the job market is softening as the economy loses speed.
The Labor Department reported Thursday that new applications filed for jobless benefits rose by a seasonally adjusted 12,000 to 346,000. It was a larger increase than economists were expecting. They were forecasting claims to rise to 335,000 last week.
The four-week moving average of new claims for unemployment benefits rose by 4,250 to 343,000 last week, the highest level in two years.
Economic growth in the October-to-December quarter is expected to slow to a near crawl -- a pace of just 1.5 percent or less, according to economists' projections. The nation's unemployment rate, now at 4.7 percent, is expected to climb to 5 percent by early next year.
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More People Sign Up for Jobless Benefits
Thursday December 20, 8:56 am ET
More People Sign Up for Unemployment Benefits, Suggesting That Job Market Is Softening
WASHINGTON (AP) -- More people signed up for unemployment benefits last week, suggesting that the job market is softening as the economy loses speed.
The Labor Department reported Thursday that new applications filed for jobless benefits rose by a seasonally adjusted 12,000 to 346,000. It was a larger increase than economists were expecting. They were forecasting claims to rise to 335,000 last week.
The four-week moving average of new claims for unemployment benefits rose by 4,250 to 343,000 last week, the highest level in two years.
Economic growth in the October-to-December quarter is expected to slow to a near crawl -- a pace of just 1.5 percent or less, according to economists' projections. The nation's unemployment rate, now at 4.7 percent, is expected to climb to 5 percent by early next year.
I dont think there is any reason to wonder IF the economy is going into recession...its already there.
The only questions now are how long the recession will last and will the government chop down the forest and create stagflaton or run out of trees and it sinks into depression.
The only questions now are how long the recession will last and will the government chop down the forest and create stagflaton or run out of trees and it sinks into depression.
they'll cut another 1/4 at next meeting dollar rebounding some now, and 10 year down to 4%
although even with dollar rally they haven't been able to get down oil much still at 91.70
anyway stagflation is likely setting in nothing they can do.....as that's the least painful option
as for dubai and outsiders buying interests in banks they are getting good deals believe me they aren't stupid....it isn't a simple here's 5 billion give me some shares....the american shareholders are the ones that are getting screwed in the deals
Obviously Woof, you're changing the definition of recession. Since the economy grew in the last quarter, and we're still in this quarter, we haven't had two quarters of no growth.
I guess you think we're in decline this quarter. Since we've had continued job growth this quarter and its Christmas season, I think thats not likely.
Willie, to prevent this from being another week long debate here, lets just say you and I greatly disagree regarding govt statistics.
I realize that if the govt chops down every tree it can find, the nominal value of stocks wont collapse and they will be able to tell people things are doing well and enough of you will actually believe it.
I realize that if the govt chops down every tree it can find, the nominal value of stocks wont collapse and they will be able to tell people things are doing well and enough of you will actually believe it.
Abu Dhabi will buy securities that convert to stock and yield 11 percent a year, almost double the interest Citigroup offers bond investors, underscoring the New York-based company's need for cash. Fourth-quarter profit will be reduced by as much as $7 billion because of losses from subprime mortgages, which led to the departure of CEO Charles O. ``Chuck'' Prince III and a 46 percent slump in its stock this year.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a0UZNcACoX1Y&refer=home
willie, mutual fund managers are paid to own stocks.
so, unless they get alot of redemptions, they are going to own stocks and its very doubtful we will see them holding large amounts of cash anytime soon.
if we actually see mutual funds holding large % of assets in cash, you could actually see me become very bullish regarding equities.
like tiznow posted, im not going to be bearish forever.
problem is that the govt for many years now, has been printing money past its eyeballs trying to prevent the business cycle to properly work.
it also has prevented many weak stocks from crashing and thus people have been lulled to sleep thinking every dip is a new buying opportunity.
so, unless they get alot of redemptions, they are going to own stocks and its very doubtful we will see them holding large amounts of cash anytime soon.
if we actually see mutual funds holding large % of assets in cash, you could actually see me become very bullish regarding equities.
like tiznow posted, im not going to be bearish forever.
problem is that the govt for many years now, has been printing money past its eyeballs trying to prevent the business cycle to properly work.
it also has prevented many weak stocks from crashing and thus people have been lulled to sleep thinking every dip is a new buying opportunity.
cause they look at lagging indicators like GDP and jobs which you always point to
hno:anyway they will offically say we are in a recession when we are over 20% off the october highs but not before
if you want a sharp money manager that knows whats up go here
http://www.hussman.net/
