SKY News Summary 08-11-09
Companies’ cost control measures and reduced inventories are being reflected in productivity numbers and quarterly earnings. However, discretionary spending for July continues to be sluggish and bodes a slow recovery.
Earnings:
P&G 4Q ’08-‘09
http://www.pginvestor.com/phoenix.zhtml?c=104574&p=irol-EventDetails&EventId=2309473
Cisco 4Q ‘09
http://files.shareholder.com/downloads/CSCO/583848929×0x311427/012212f5-8abb-4c8d-8896-471fc554763c/Q4%20FY09%20Earnings%20Slides%20FINAL.pdf
CBS 2Q ‘09
http://webcastingplayer.corporate-ir.net/player/playerHOST.aspx?c=99462&EventId=2303713&StreamId=1332392&TIK={779c15fa-38a7-42a2-93de-838388d7282d}&RGS=3&IndexId=
Applied Materials 3Q ‘09
http://www.appliedmaterials.com/investors/index.html
The Navy has signed a contract with Johnson Controls to make the naval base in Guam more energy efficient. The project includes a large-scale photovoltaic power generation system and energy efficient air conditioning systems. It’s expected to reduce annual energy costs by $1.7 million while reducing carbon emissions. “We greatly appreciate the opportunity to help the Navy work toward its goal of achieving 25 percent of its energy needs from renewable sources by 2025,” said Mark Wagner, vice president of government affairs with Johnson Controls.
http://www.johnsoncontrols.com/publish/us/en/news.html
Praxair, has priced $600 million of 4.500% notes due August 15, 2019, expected to close on August 13, 2009. The company will use the proceeds of the offering to repay short-term debt and for general corporate purposes. The company’s long-term debt is rated A2 by Moody’s Investors Service and A by Standard and Poor’s Corporation.
http://www.praxair.com/praxair.nsf/AllContent/BB20FB6CD19431DD8525760E007334ED?OpenDocument
In the week ending Aug. 1, the advance figure for seasonally adjusted initial claims was 550,000, a decrease of 38,000 from the previous week’s revised figure of 588,000.
http://www.dol.gov/opa/media/press/eta/ui/current.htm
The Department of Labor reported that, for the second quarter of 2009, productivity improved by 6.3 percent in the business sector and by 6.4 percent in the nonfarm business sector.
http://www.bls.gov/news.release/prod2.nr0.htm
The Census Bureau reported that inventories dropped 1.7% by the end of June and were down 10.3% year-over-year while sales were up 0.4% for the month. Sales of motor vehicle and motor vehicle parts and supplies were up 4.5 percent from last month. The June inventories/sales ratio for merchant wholesalers was 1.26. The June 2008 ratio was 1.11.
http://www2.census.gov/wholesale/pdf/mwts/currentwhl.pdf
ICSC’s benchmark for sales in the shopping-center industry showed a July decline of 0.7%–its largest monthly decline since March. Excluding motor vehicles, sales dropped 8.5% in July, which was the largest drop during the recession.
http://www.icsc.org/homepage/research_article.php?id=15
In the week ending Aug. 8, initial claims was about steady with last week at 558,000, an increase of 4,000. The 4-week moving average was 565,000, an increase of 8,500 from the previous week’s revised average of 556,500.
http://www.dol.gov/opa/media/press/eta/ui/current.htm
Sources: DOL, Census, NASDAQ, Praxair, Johnson Controls, Applied Materials, CBS, Cisco, and P&G, ICSC websites.
SKY News Summary 08-04-09
We continue to see improvement in the economy. Housing in particular shows signs of life. GDP was “less-bad” and the ISM manufacturing index almost reached a point of expansion.
Earnings:
Spectra 2Q ‘09
http://www.spectraenergy.com/news/releases/2009/aug/20090804_01.pdf
Trojan Technologies, a subsidiary of Danaher, has won the 2009 Stockholm Industry Water Award. The company’s low-energy pressurized UV disinfection system is installed in 5800 facilities in 80 countries. UV technology works more than 20 times faster than traditional chlorine based systems, with no environmental impacts from chemical leaks.
http://www.danaher.com/pdf/Feature_Trojan_SIWA_release.pdf
General Electric announced that it had reached a settlement with the SEC which relates to four accounting matters in 2002 and 2003. GE has previously corrected for the effects of these matters in its financial statements and in SEC filings made between May 2005 and February 2008. Under the terms of the settlement, the Company will pay a civil penalty of $50 million.
http://www.genewscenter.com/Content/Detail.asp?ReleaseID=7569&NewsAreaID=2&MenuSearchCategoryID=
http://www.sec.gov/news/press/2009/2009-178.htm
The Food and Drug Administration approved Invega Sustenna (paliperidone palmitate) extended-release injectable suspension for the acute and maintenance treatment of schizophrenia in adults. It is the first once-monthly, long-acting, injectable atypical antipsychotic approved in the U.S. for this use.
http://www.investor.jnj.com/releaseDetail.cfm?ReleaseID=400524&year=2009
The. Food and Drug Administration also approved Avastin (bevacizumab) plus interferon alpha for people with metastatic renal cell carcinoma, the most common type of kidney cancer.
http://www.roche.com/media/media_releases/med-cor-2009-08-03.htm
The Bureau of Economic Analysis reported that estimated gross domestic product decreased at an annual rate of 1.0 percent in the second quarter of 2009. In the first quarter, real GDP decreased 6.4 percent. The “second” estimate for the second quarter, based on more complete data, will be released on August 27, 2009. The decrease was mainly due to decreases in business fixed investment, personal consumption, housing, and inventories that were partly offset by positive contributions from federal government spending and state and local government spending. Personal consumption expenditures decreased 1.2 percent in the second quarter, in contrast to an increase of 0.6 percent in the first. Durable goods decreased 7.1 percent, in contrast to an increase of 3.9 percent. Nondurable goods decreased 2.5 percent, in contrast to an increase of 1.9 percent. Services increased 0.1 percent, in contrast to a decrease of 0.3 percent. Business structures decreased 8.9 percent, compared with a decrease of 43.6 percent. Equipment and software decreased 9.0 percent, compared with a decrease of 36.4 percent. Real residential fixed investment decreased 29.3 percent, compared with a decrease of 38.2 percent. Current-dollar personal income increased $8.0 billion (0.3 percent) in the second quarter, in contrast to a decrease of $251.7 billion (8.0 percent) in the first. Personal current taxes decreased $113.1 billion in the second quarter, compared with a decrease of $241.7 billion in the first. Disposable personal income increased $121.1 billion (4.6 percent) in the second quarter, in contrast to a decrease of $9.9 billion (0.4 percent) in the first.
http://www.bea.gov/newsreleases/national/gdp/gdphighlights.pdf
July’s ISM manufacturing improved 4.1 points to 48.9 (readings above 50 indicate an expanding market). New orders, production, backlogs, even employment, saw improvements.
http://www.nasdaq.com/asp/econodayframe.asp?page=http://anasdaq.econoday.com/byweek.asp?cust=nasdaq
The Census Bureau announced that construction spending during June 2009 rose 0.3 percent above the revised May estimate of $963.2 billion. The increase this month was due to increases in both public and private construction. During the first 6 months of this year, construction spending was 11.4 percent below the same period in 2008.
http://www.census.gov/const/C30/release.pdf
http://www.census.gov/const/C30/totsa.pdf
The Bureau of Economic Analysis reported that personal income and disposable personal income both decreased 1.3 percent although spending increased 0.4 percent. The June change in personal income reflects the American Recovery and Reinvestment Act of 2009, which boosted personal income in May much more than in June. Excluding the effects of the Act, personal income decreased 0.1 percent, in June, following a decrease of less than 0.1 percent, in May. In May, the Act provided $166.1 billion in the form of one-time payments of $250 to people receiving social security, supplemental security income, and railroad retirement benefits. In June, funds from the Act decreased to $131.7 billion and reflected one-time payments of $250 to individuals receiving veteran benefits.
http://www.bea.gov/newsreleases/national/pi/2009/pi0609.htm
The pending home sales index for June increased 3.6 percent, mostly in the South, the largest region, and the West, which had fallen the most. Year-over-year rates were up 6.7 percent in June. http://www.realtor.org/wps/wcm/connect/b14ad7804f126f678f0bef0250570db4/PHS0906.pdf?MOD=AJPERES&CACHEID=b14ad7804f126f678f0bef0250570db4
Sources: NAR, BEA, Census, NASDAQ, Roche, JNJ, SEC, GE, UBS, Spectra, and Danaher websites.