MarketWatch.com - Pre-Market Indications

Wednesday, June 18, 2008

Pre Market - Trader Talk with Bob Pisani - CNBC.com

Futures are weaker due to poor commentary from a number of key players.

FedEx

FEDEX CORP
FDX

84.33 UNCH 0%
NYSE




[FDX 84.33 --- UNCH (0%) ] is the main story this morning, and it is not a pretty picture. Earnings of $1.45 was a bit shy of consensus of $1.47, but that wasn't the big problem. Guidance for the current quarter is well below expectations: $0.80-$1.00 vs. $1.27, as is the full year guidance of $4.75-$5.25 vs. $5.92 consensus.

"Record high fuel prices and the weak U.S. economy dampened volume growth and substantially affected our bottom line," CEO Frederick Smith said.

International continues to grow: 6 percent growth in International Priority, but that was offset by continuing declines in U.S. domestic express shipments.

FedEx down about 5 percent pre-open.

Elsewhere:

1) Morgan Stanley

MORGAN STANLEY
MS

40.59 UNCH 0%
NYSE




[MS 40.59 --- UNCH (0%) ] beat expectations ($0.95 vs. $0.92 expectations), but not by nearly as much as Goldman Sachs. There were declines in fixed income (85 percent below the levels for the same period last year), including a curious $120 million negative adjustment to marks previously taken in a trader's book that did not comply with Firm policies. Traders also noting that they had a sizeable gain ($1.43 b) from sale of two assets, ex-those one-time gains they had little in the way of earnings. Down 5 percent pre-open.

2) Fifth Third

FIFTH THIRD BANCORP
FITB

12.73 UNCH 0%
NASDAQ




[FITB 12.73 --- UNCH (0%) ], one of the nation's largest regional banks, based in Cincinnati, is raising capital by issuing $1 B in convertible preferred shares. They are also reducing their quarterly dividend reduced to $0.15, down from prior $0.44. Kudos to BMO Capital Markets, who issued a report last Friday correctly predicting they would cut their dividend at least 50 percent and likely initiate a capital raise. Down 16 percent pre-open.

3) MF Global

MF GLOBAL
MF

13.26 UNCH 0%
NYSE




[MF 13.26 --- UNCH (0%) ]is down 15 percent pre-open, after warning that first quart revenues would come in below estimates; they will also be selling $150 m in preferred stock.

It wasn't all bad news:

--trucking giant YRC Worldwide

YRC WORLDWIDE INC
YRCW

16.77 UNCH 0%
NASDAQ




[YRCW 16.77 --- UNCH (0%) ] affirmed its guidance for the quarter despite higher fuel costs; up 6 percent pre-open.

--General Mills

GENERAL MILLS INC
GIS

60.73 UNCH 0%
NYSE




[GIS 60.73 --- UNCH (0%) ] raised its guidance, though they did not say why. Up 1 percent pre-open


FedEx Hit By High Oil Prices, Weak Economy - Trader Talk with Bob Pisani - CNBC.com

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