MarketWatch.com - Pre-Market Indications

Thursday, May 29, 2008

Trader Talk: Morgan Stanley Says Business Travel Suffering - Trader Talk with Bob Pisani - CNBC.com

Dollar stronger again; bond rout continues. Stock futures dropped a bit as GDP revision came in in-line, up 0.9 percent from 0.6 previously.

Morgan Stanley out with a long note on business travel this morning, not surprisingly with the title, "Business Travel Fundamentals Worsening." A summary:

1) room rate renegotiations, which first surfaced with financial business travelers, is now spreading to other sectors;

2) group cancellation rates are increasing.

3) rising airfares, already impacting leisure travel, will impact corporate travel this year.

They cut their ratings on Marriott

Marriott International Inc
MAR

34.14 UNCH 0%
NYSE




[MAR 34.14 --- UNCH (0%) ] , and reduce the price target to $40 from $47. Marriott closed at $34.14. They go further: "...we do not recommend putting new money into lodging with the exception of stocks with unique catalysts."

Elsewhere:

1) We have been getting retail earnings reports for the past week, with mixed results.

a) Men's Wearhouse

Men's Wearhouse Inc
MW

23.62 UNCH 0%
NYSE




[MW 23.62 --- UNCH (0%) ] reported earnings a bit below expectations, and guidance for the quarter and full year appears a bit below expectations as well. Down 6 percent pre-open.

b) Big Lots

Big Lots Inc
BIG

28.53 UNCH 0%
NYSE




[BIG 28.53 --- UNCH (0%) ] and Costco [COST 73.24 --- UNCH (0%) ] beat expectations; Big Lots up 8 percent pre-open as they raise their full year guidance slightly. Costco reported good comp store sales growth--U.S. up 6 percent, international up 16 percent.

2) NYSE IPO: Safe Bulkers (SB), a marine drybulk shipping company, priced 10 million shares at $19, below the expected range of $20 to $22 a share.

3) German chip maker Infineon

Infineon Technologies AG
IFX

9.96 UNCH 0%
NYSE




[IFX 9.96 --- UNCH (0%) ] down about 12 percent pre-open, after they lowered their outlook for their communications unit.



Bob Pisani's Trader Talk: Morgan Stanley Says Business Travel Suffering - Trader Talk with Bob Pisani - CNBC.com

No comments:

Post a Comment

Your spam will not get posted on my blog. No wizetrade spammers etc

Pre Market Movers - Futures Trading - Nasdaq - NYSE

Subscribe to "The $t0ckman" via email

Enter your email address:

Delivered by FeedBurner