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

Opening View: Morgan Stanley Reports Earnings, Fifth Third Slashes Dividend

Following up yesterday's earnings report from Goldman Sachs, Morgan Stanley (MS: View sentiment for MSsentiment, chart, options) reported a profit from continuing operations of 95 cents per share, versus expectations for a profit of 92 cents per share. Revenue fell 38% from last year to $6.5 billion. Following the news, MS shares fell more than 2% in electronic trading.

Also in earnings, shipping specialist FedEx (FDX: View sentiment for FDXsentiment, chart, options) reported a fourth-quarter loss of 78 cents per share, compared to last year's gain of $1.96 per share. Excluding items, the speedy-delivery firm banked a profit of $1.45 per share, just shy of expectations for a profit of $1.47. Revenue rose 8% to $9.87 billion. Looking ahead, FDX expects first-quarter earnings of 80 cents to $1.00 per share, versus the consensus estimate for $1.35 per share.

In banking, Cincinnati, Ohio-based Fifth Third Bancorp (FITB: View sentiment for FITBsentiment, chart, options) announced late last night that it will cut its dividend and raise $1 billion in new capital from convertible preferred shares. FITB is lowering its second-quarter cash dividend to 15 cents per share, down from 44 cents per share the prior quarter. Fifth Third also announced that it has replaced chairman George Schaefer, Jr. with CEO Kevin Kabat, effective Tuesday. The new dividend is payable on July 22 to holders of record on June 30.

Finally, the travel-and-leisure sector could take a big hit today after ABN Amro placed several firms under the ratings knife. The group cut its 2009-2010 earnings forecast for the sector by 16%, bringing it 15% below the consensus estimate. "We find it hard to believe that demand (volume or price) from the business and/or leisure consumer will not reduce over the next 12 months; western GDP trends are slowing, business activity is softening, the credit cycle has turned, and consumer balance sheets are in many cases over-leveraged."

Accompanying the research note, ABN Amro downgraded Carnival (CCL: View sentiment for CCLsentiment, chart, options) , Enterprise Inns (ETINF), Martsons, and Ladbrokes (LDBKY) to "hold from "buy." The brokerage firm also downgraded Royal Caribbean ( RCL: View sentiment for RCLsentiment, chart, options) to "sell" from "buy," and lowered J.D. Wetherspoon (JDWPY) and Accor (ACRFF) to "sell" from "hold."



Opening View: Morgan Stanley Reports Earnings, Fifth Third Slashes Dividend

NYSE Pre Market Trading Arca Morning Update

Stocks trading on NYSE Arca at a price more than 15% away from the previous trade day's consolidated close price. (As of 08:30:00 ET)

Stock
Tuesday's Close Current Price Pct Chng Current NYSE Arca Vol
FITB

$12.73

$10.70

( 16%)

419,320

MF

$13.30

$11.20

( 16%)

2,100

LNN

$124.55

$104.96

( 16%)

19,415

10 Most Active stocks on NYSE Arca as of 08:30:00 ET

Based on Dollar Volume: Based on Share Volume:
Stock
Dollar Volume
SPY
$355,557,791
QQQQ
$28,923,501
FDX
$16,335,328
IWM
$16,075,132
SDS
$9,953,820
TOT
$8,858,123
RDS.A
$8,771,006
PFE
$8,559,499
USO
$7,938,317
MS
$7,066,227
Stock
Share Volume
SPY
2,641,257
QQQQ
598,875
PFE
468,148
FITB
419,320
IWM
219,700
FDX
203,626
XLF
196,972
MS
180,397
SDS
162,496
TOT
110,600

FITB:
LNN:

NYSE Arca Morning Update

Pre Market Trading, Gaps

Gapping up:

PANC +14.3%, YRCW +8.4%, PNRA +5.4%, LINE +4.3%, BEZ +2.6%, AMTD +2.0%, PFE +1.6%, GOLD +1.1%...

Gapping down:

MF -16.5%, HOO -11.7%, FITB -10.8%, ABK -4.7%, CLC -3.0%, GFI -2.8%, OGE -2.6%, NOVL -2.4%, BP -2.3%, GCI -2.2%, ELN -2.2%, RDS.A -2.1%, UBS -1.9%, BHP -1.8%, NOK -1.6%, TOT -1.3%, APL -1.2%.

Pre-Market Trading Most Active Stocks - NASDAQ Premarket

NASDAQ - Pre-Market Ten Most Advanced

Active Share Volume Declined

Symbol

Company Name

Market
Close
Last Sale (Pre-Market) % Change
(Pre-Market)
Share
Volume

(Pre-Market)

Empire Resorts, Inc.
$2.67 $2.95 10.49% 5,000

Panera Bread Company
$45.56 $48.80 7.11% 56,697

YRC Worldwide, Inc.
$16.77 $17.80 6.14% 53,945

Linn Energy, LLC
$24.50 $25.50 4.08% 9,646

Canadian Solar Inc.
$47 $47.90 1.91% 12,533

Randgold Resources Limited
$38.30 $39 1.83% 16,300

Evergreen Solar, Inc.
$10.22 $10.35 1.27% 30,212

New Oriental Energy & Chemical Corp.
$6.94 $7.03 1.27% 9,300

James River Coal Company
$54.54 $55.18 1.17% 8,268

Capstone Turbine Corporation
$4.12 $4.15 0.73% 7,637

As of 6/18/2008 8:25:26 AM

NASDAQ - Pre-Market Ten Most Declined

Active Share Volume Advanced

Symbol

Company Name

Market
Close
Last Sale (Pre-Market) % Change
(Pre-Market)
Share
Volume

(Pre-Market)

Fifth Third Bancorp
$12.73 $10.65 16.34% 558,093

ASML Holding N.V.
$27.89 $27.39 1.79% 4,500

Baidu.com, Inc.
$332.64 $327.20 1.64% 7,094

DryShips Inc.
$81.50 $80.20 1.60% 11,538

Level 3 Communications, Inc.
$3.91 $3.85 1.53% 6,000

Intel Corporation
$22.58 $22.40 0.80% 9,000

NVIDIA Corporation
$20.51 $20.35 0.78% 7,001

Acergy S.A.
$24.03 $23.88 0.62% 3,000

Yahoo! Inc.
$23.25 $23.11 0.60% 5,000

PowerShares QQQ Trust, Series 1
$48.54 $48.25 0.60% 1,274,047

As of 6/18/2008 8:25:44 AM

Pre-Market Most Active Stocks - NASDAQ Premarket

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