SKY News Summary 12-31-09
Most of the newly-released economic data shows improvement for yearend. The one exception is new home sales which were depressed.
Personal income (including wages and salaries) increased 0.4 percent and disposable income increased 0.5 percent in November. Private wage and salary disbursements increased $16.1 billion in November, compared with an increase of $3.2 billion in October. Personal consumption rose 0.5 percent. (We saw indications of these numbers in the retail and car sales numbers out earlier).
http://www.bea.gov/newsreleases/national/pi/2009/pi1109.htm
In the week ending Dec. 26, initial unemployment claims was 432,000, a very healthy decrease of 22,000 from the previous week’s revised figure of 454,000. The 4-week moving average was 460,250, a decrease of 5,500 from the previous week’s revised average of 465,750. Continuing unemployment claims during the week ending Dec. 19 was 4,981,000, a decrease of 57,000 from the preceding week’s revised level of 5,038,000. The 4-week moving average was 5,101,000, a decrease of 122,250 from the preceding week’s revised average of 5,223,250.
http://www.dol.gov/opa/media/press/eta/ui/current.htm
New residential sales for November tumbled to 355,000, down 11.3 percent from the October rate (which was revised downward) and down 9.0 percent below the November 2008 rate.
http://www.census.gov/const/newressales.pdf
New orders for manufactured durable goods in November increased $0.3 billion or 0.2 percent to $166.9 billion, according to the U.S. Census Bureau. Computers and electronic products had the largest increase, $0.9 billion or 3.7 percent to $25.7 billion. Inventories of manufactured durable goods in November, down ten of the last eleven months, decreased $0.5 billion or 0.2 percent to $303.6 billion. Inventories of Computers and electronic products, down eleven consecutive months, had the largest decrease, $0.2 billion or 0.4 percent to $42.8 billion.
http://www.census.gov/manufacturing/m3/adv/pdf/durgd.pdf
The ICSC-Goldman Sachs chain store sales index for the week ending December 26 improved as shoppers played catch-up on their holiday shopping after the blizzard in the Northeast and Southeast the week before. The Commerce Department will release its advance retail numbers for December and actual numbers for November on January 14th, but watch for individual stores’ releases beforehand.
http://www.icsc.org/homepage/research_article.php?id=83
The Conference Board’s Consumer Confidence Index, increased to 52.9 in December, up from 50.6 in November. The Expectations Index, which can be a harbinger for consumer spending, increased to 75.6 from 70.3 last month. However, reflecting the current job situation, The Present Situation Index, declined to 18.8 from 21.2 in November.
http://www.conference-board.org/economics/ConsumerConfidence.cfm
Sources: Conference Board, ICSC, Census, Bureau of Labor Statistics, Department of Labor.
SKY News Summary 12-17-09
Tuesday’s news, which showed rising inflation, is mollified, if not contradicted by today’s release of The Philadelphia Fed’s survey and CPI-U.
The Philadelphia Fed’s manufacturing survey for December contradicts the Empire State report that came out two days ago. The Philadelphia survey shows the region’s manufacturing sector is expanding with the indexes for general activity, new orders, shipments, employment and average work hours all improving. Headline index rose 3 ½ points to 20.4. The current employment index increased 7 points, to its highest reading since October 2007 and the workweek gained four points, reaching 6.4, its second consecutive positive reading. But manufacturing indexes for the next six months were not as optimistic as before. The future general activity index decreased from 36.8 in November to 24.4, its lowest reading since March. Indexes for future new orders and shipments declined this month, falling 15 points and 7 points, respectively.
http://www.philadelphiafed.org/research-and-data/regional-economy/business-outlook-survey/2009/bos1209.cfm
The Federal Open Market Committee meeting announcement falls somewhere in between the Philadelphia Fed’s survey and the Empire State report. The Committee which met in November sees economic activity growing and the labor market stabilizing. The housing sector has shown some signs of improvement over recent months. “Household spending appears to be expanding at a moderate rate, though it remains constrained by a weak labor market, modest income growth, lower housing wealth, and tight credit. Businesses are still cutting back on fixed investment, though at a slower pace, and remain reluctant to add to payrolls; they continue to make progress in bringing inventory stocks into better alignment with sales. Financial market conditions have become more supportive of economic growth.”
http://www.federalreserve.gov/newsevents/press/monetary/20091216a.htm
Initial jobless claims rose slightly (by 7,000) in the Dec. 12 week to 480,000, although the four-week average is down 5,250 to the lowest level since September last year. Continuing claims were unchanged at 5,186,000 in the Dec. 5 week with the four-week moving average at 5,318,250, a decrease of 106,750 from the preceding week’s revised average of 5,425,000.
http://www.dol.gov/opa/media/press/eta/ui/current.htm
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in November according to the Bureau of Labor Statistics. The increase in CPT-U is a relief after the larger rise in PPI (1.8%) which we saw on Tuesday. As with the PPI, CPI-U’s increase stemmed from a 4.1 percent increase in the energy index. The index for all items less food and energy was unchanged in November, after ten consecutive monthly increases.
http://www.bls.gov/news.release/cpi.nr0.htm
The U.S. Census Bureau announced that new residential construction of privately-owned homes for November 2009 grew 6.0 percent from October, but is 7.3 percent below November 2008. Privately-owned housing starts in November were 8.9 percent above the October estimate of 527,000, but are 12.4 percent below the November 2008 rate of 655,000.
http://www.census.gov/const/newresconst.pdf
Johnson & Johnson and Acclarent, a privately held medical technology company, announced a merger agreement whereby Ethicon will acquire Acclarent for approximately $785 million. Acclarent addresses sinus problems without surgery, through devices such as Balloon Sinuplasty. “Millions of people suffer from ear nose and throat conditions, such as chronic sinusitis and obstructive sleep apnea,” said William M. Facteau, President and Chief Executive Officer for Acclarent. “The opportunity to become part of Ethicon will enable us to continue to innovate and expand our reach so that more physicians and patients worldwide will benefit from our technology.”
http://www.investor.jnj.com/releasedetail.cfm?ReleaseID=430920
Merck and Avecia Investments announced that Merck will acquire the biologics business of the Avecia group. Avecia Biologics is a contract manufacturing organization with specific expertise in microbial-derived biologics. Financial details of the transaction were not disclosed. Products currently being worked on by Avecia include medicines targeted at forms of cancer, heart disease and stroke.
http://www.merck.com/newsroom/news-release-archive/corporate/2009_1217.html
Praxair has started up a new air separation unit to supply 1,975 tons per day of nitrogen gas to support Samsung Electronics’ advanced thin-film-transistor, liquid-crystal-display factory in Tangjeong, South Korea. It is Praxair’s second air separation plant at the facility.
http://www.praxair.com/praxair.nsf/AllContent/061163D1F3AE662A8525768D006308AD?OpenDocument
‘The South African Petroleum Authorities awarded Shell a Technical Cooperation Permit for a one-year study to determine the hydrocarbon potential in parts of the Karoo Basin in central South Africa. The permit covers an area of approximately 185,000 square kilometers. The study will provide a better understanding of the area’s geology and shale gas potential, establishing the scope to pursue natural gas exploration. Shell will have the exclusive right to apply for exploration permits following completion of the study.“This onshore study and the recent award of offshore exploration acreage in the Orange Basin area together reinforce Shell’s interest in exploring for oil and gas in South Africa,” said Ceri Powell, Executive Vice President International Exploration. Shell has been active in the South African retail markets since 1904 and in refining since 1963.’
http://www.shell.com/home/content/investor/news_and_library/press_releases/2009/permit_karoo_basin_16122009.html
Sources: Shell, Praxair, Merck, Johnson & Johnson, Census, Bureau of Labor Statistics, Department of Labor, Federal Reserve, Philadelphia Fed website.
SKY News Summary 12-15-09
Once again, we have mixed economic news. Consumer spending seems to be up, but inflation indicators seem to be up as well.
The Census Bureau announced today that advance estimates of retail and food services sales for November increased 1.3 percent, up from October’s revised 1.1 percent gain. November retail sales were 1.9 percent above November 2008, although total sales for September through November 2009 were down 2.1 percent year-over-year.
http://www.census.gov/retail/marts/www/marts_current.pdf
A more recent ICSC-Goldman Sachs chain store sales index for the week ending December 12 showed retail sales rising 0.4 percent from the prior week. Year-over-year retail sales for that week increased by 2.4 percent. According to the ICSC-Goldman Sachs consumer holiday shopping survey, “the average percentage of shopping completed during the second week of December rose to 56.9%–which, for the third consecutive week, remained about 6 percentage points lower than the same week of 2008. As such, this suggests that December sales could get a late and very strong lift from this slower completion rate as consumers wrap up their holiday-gift buying.”
http://www.icsc.org/homepage/research_article.php?id=78
As expected, the drop in the dollar resulted in a 1.7 percent increase in the price of imports for the month of November, according to the Bureau of Labor Statistics. Fuel prices rose 7.3 percent, and accounted for about 80 percent of the increase. Export prices also rose, up 0.8 percent in November. With the dollar up 2 percent so far in December, we can expect a more limited foreign demand for our goods, which will affect the producer price index for November.
http://www.bls.gov/news.release/ximpim.nr0.htm
The Producer Price Index for Finished Goods rose 1.8 percent in November raising inflation fears. It should be remembered however, that about sixty percent of the rise can be attributed to a 14.2-percent increase in gasoline prices which have since dropped.
http://www.bls.gov/news.release/ppi.nr0.htm
http://www.eia.doe.gov/oil_gas/petroleum/data_publications/wrgp/mogas_home_page.html
The Empire State Manufacturing Survey added fuel to inflation fears by indicating that respondents predicted prices paid for most budget categories would increase by 2 to 3 percentage points more in 2010 than in 2009. Prices paid overall were reported to have risen by 2.5 percent in 2009 and were expected to rise by 4.2 percent next year. The average respondent anticipated an increase of 2.1 percent in both wages and costs of outside services, 7.6 percent in employee benefit costs, and 3.5 percent in nonmedical insurance costs. Overall, business conditions for New York manufacturers fell a significant 21 points. The new orders index slipped more than 14 points to 2.2, and the shipments measure declined by just under 7 points to 6.3. The unfilled orders index fell by more than 18 points to -21.1, its lowest level in nine months. Employment indexes declined for the second straight month, falling below zero for the first time in a few months: the index for number of employees slipped 7 points to -5.3, and the average workweek index fell 11 points to -5.3.
http://www.newyorkfed.org/survey/empire/Empire2009/empiresurvey_20091215.html
The latest NAHB/Wells Fargo Housing Market Index shows builder confidence in the market for newly built, single-family homes receded one point to 16 in December as continued weakness in the economy and job markets weighed on consumers’ potential home buying plans. “As we anticipated, this is shaping up to be a bumpy recovery period for the housing market,” noted NAHB Chief Economist David Crowe. “While some families may be just starting to factor the expanded tax credit into their potential home buying plans, many are hesitating because of the poor economy. At the same time, tight lending conditions for both consumers and home builders continue to pose considerable obstacles on the road to a sustained housing and economic recovery.” However, regionally, the Northeast posted a three point gain to 23, and the West posted a one-point gain to 19, the South registered no change at 17, and the Midwest posted a two-point decline, to 12.
http://www.nahb.org/news_details.aspx?sectionID=148&newsID=10128
In company news, after more than two years of setbacks, Boeing’s 787 Dreamliner had a successful test flight today.
http://www.marketwatch.com/story/boeing-warms-its-787-engines-watches-cloud-cover-2009-12-15
Exxon Mobil and XTO Energy announced a merger agreement valued at $41 billion The transaction value includes $10 billion of existing XTO debt and is based on the closing share prices of ExxonMobil and XTO on December 11, 2009. “XTO’s resource base is the equivalent of 45 trillion cubic feet of gas and includes shale gas, tight gas, coal bed methane and shale oil. These will complement ExxonMobil’s holdings in the United States, Canada, Germany, Poland, Hungary and Argentina. Following the transaction closing, ExxonMobil intends to establish a new upstream organization to manage global development and production of unconventional resources, enabling the rapid development and deployment of technologies and operating practices to increase production and maximize resource value.”
http://www.businesswire.com/portal/site/exxonmobil/index.jsp?ndmViewId=news_view&ndmConfigId=1001106&newsId=20091214005563&newsLang=en
The Procter & Gamble announced it will acquire Ambi Pur, a air care brand, for $470 million, from Sara Lee. “Ambi Pur also brings high-performance products and new technologies to our current Air Care portfolio, including car air fresheners, battery-powered air fresheners, toilet rim blocks and various non-energized air fresheners.”
http://www.pginvestor.com/phoenix.zhtml?c=104574&p=irol-newsArticle_Print&ID=1365059&highlight=
Fannie Mae announced that it has raised its loan-to-value (LTV) ratios to 125 percent for loans eligible for delivery on or after September 1, 2009.” Previously, HARP allowed for refinancing of Fannie Mae loans with LTVs up to 105 percent. For loans with LTVs above 105 percent, borrowers must refinance through their existing servicer and the new loans must be fully amortizing fixed-rate mortgages with terms greater than 15 years up to 30 years. Typically other banks will follow Fannie’s lead in raising their LTVs.
http://www.fanniemae.com/newsreleases/2009/4743.jhtml?p=Media&s=News+Releases
T. Rowe Price announced that Mike Gitlin, currently the firm’s global head of trading, will succeed Mary J. Miller as director of the firm’s Fixed Income Division, which manages nearly $100 billion in assets for clients. Ms. Miller was nominated by President Barack Obama on October 5, 2009 to become the next Assistant Secretary for Financial Markets within the U.S. Department of Treasury. She is currently awaiting final U.S. Senate approval, and has decided to step down as head of T. Rowe Price’s Fixed Income Division effective December 18, 2009.
http://corporate.troweprice.com/ccw/home/ourCompany/pressReleases/pressRelease.do
Sources: T. Rowe Price, Fannie Mae, Procter & Gamble, Exxon, Market Watch, NAHB, N.Y. Federal Reserve, Energy Information Administration, Bureau of Labor Statistics, ICSC-Goldman Sachs, Census Bureau websites.
SKY News Summary 12-10-09
Today’s news is all about debt. Government debt increased at an annual rate of almost 21 percent (household debt and business debt decreased by 2.6 percent) and there seems to be no end in sight as the federal budget indicated a shortfall of $176.4 billion for the month of October.
Two newsworthy items were reported by the Federal Reserve today in its Flow of Funds Report. First, “government debt continued to grow in the third quarter. State and local government debt expanded at an annual rate of 5 percent, 1½ percentage points faster than in the second quarter. Federal government debt increased at an annual rate of almost 21 percent in the third quarter, somewhat slower than in the second quarter, but nonetheless the fifth consecutive quarter of growth exceeding 20 percent.”
Second, “household net worth—the difference between the value of assets and liabilities—was an estimated $53.4 trillion at the end of the third quarter, up $2.7 trillion (5 percent) from the second quarter and the second consecutive quarter of growth.” Most of the increase in net worth came from the increase in stocks and a small increase in real estate values. The report also showed household and business debt decreasing by 2.6 percent.
http://www.federalreserve.gov/releases/z1/Current/z1.pdf
The U.S. Treasury’s budget report for the month of October indicates a huge $176.4 billion shortfall for October, up from $155.5 billion last year at this time. Receipts dropped to $135.3 billion from $165 billion last year, while outlays only decreased from $320 billion to $311.7 billion. This is the first month of the Treasury’s fiscal year.
http://www.fms.treas.gov/mts/mts1009.pdf
Initial jobless claims for the week ending December 5 rose by 17,000, reversing a 5-week trend of improvements. However, the 4-week moving average continued to drop, decreasing 7,750 to 473,750. Continuing claims for the week of November 28 fell 303,000 to 5,157,000.
http://www.dol.gov/opa/media/press/eta/ui/current.htm
The Department of Commerce announced that October’s international trade deficit of $32.9 billion was down from $35.7 billion in September. October exports grew by $3.5 billion, while imports increased by $0.7 billion. Exports are benefitting from a weak dollar. Breaking down the change in the deficit, the goods and services deficit decreased $2.4 billion for the month of October and decreased $26.5 billion from October 2008 due mostly to decrease in imports of industrial supplies and materials.
http://www.bea.gov/newsreleases/international/trade/2009/trad1009.htm
United Technologies announced it has agreed to acquire a 49.5 percent stake in Clipper Windpower Plc, a California-based wind turbine manufacturer, for about $270 million. Clipper Windpower is involved with wind energy technology, turbine manufacturing, and wind project development, and had 2008 revenues of $737 million.
http://www.utc.com/utc/News/News_Details/2009/2009-12-09.html?page=1&year=0
PepsiCo announced it will manufacture and distribute Dr Pepper Snapple Group products following completion of PepsiCo’s acquisition of DPS’s two main bottlers, The Pepsi Bottling Group and PepsiAmericas, for about $900 million. In exchange, PepsiCo will be entitled to manufacture and distribute Dr Pepper and certain other DPS products in the territories where they are currently distributed by PBG and PAS. “Under the new agreement, PepsiCo will distribute: Dr Pepper, Crush and Schweppes brands in the United States; Dr Pepper, Crush, Schweppes, Vernors and Sussex brands in Canada; and Squirt and Canada Dry brands in Mexico.”
http://www.pepsico.com/PressRelease/PepsiCo-Reaches-Agreement-to-Distribute-Certain-Dr-Pepper-Snapple-Group-Brands12082009.html
Sources: Federal Reserve, Pepsi, UTC, BEA, and Treasury websites.
SKY News Summary 12-08-09
Health care legislation, unemployment, and consumer credit issues seem to weigh on the consumer this week. Federal Reserve Chairman, Ben S. Bernanke, spoke at the Economic Club, saying, “Despite the general improvement in financial conditions, credit remains tight for many borrowers, particularly bank-dependent borrowers such as households and small businesses.” In fact, consumer credit decreased at an annual rate of 3-1/4% in the third quarter. Revolving credit dropped by 7-1/4%. Car loans associated with Cash for Clunkers helped lessen the decline in non-revolving loans which were down 1% and gave a lift to overall consumer credit.
http://www.federalreserve.gov/newsevents/speech/bernanke20091207a.htm
http://www.federalreserve.gov/releases/g19/current/g19.htm
The ICSC- Goldman index for chain store sales showed retail spending was down 1.3% for the week of December 5, compared to the week before. Apparently, this is to be expected as shoppers rest after Black Friday and wait to begin Christmas shopping. The Commerce Department will post its retail sales numbers for the month of November on Friday.
http://www.icsc.org/homepage/research_article.php?id=76
In company news, A.G. Lafley, will retire as P&G’s board chairman as of February 25, 2010, and will be replaced by Robert A. McDonald, (56), president and chief executive officer.
http://www.pginvestor.com/phoenix.zhtml?c=104574&p=irol-newsArticle&ID=1363243&highlight=
Illinois Tool Works announced that David B. Smith, Jr. has been elected to ITW’s Board of Directors. Smith is the Executive Vice President for Policy & Legal Affairs and General Counsel at the Mutual Fund Directors Forum in Washington DC. Previously, Smith held several positions at the Securities and Exchange Commission including Associate Director of the Division of Investment Management. David B. Smith’s election comes with the retirement of his uncle, Harold B. Smith, in May 2010. The Smith family founded ITW in 1912.
http://investor.itw.com/phoenix.zhtml?c=71064&p=irol-newsArticle&ID=1362172&highlight=
Roche announced that the pivotal Phase III study CLL8 showed that patients with previously-untreated chronic lymphocytic leukemia (CLL) survived their disease longer when treated with MabThera/Rituxan (rituximab) compared to chemotherapy alone.
http://www.roche.com/media/media_releases/med-cor-2009-12-08.htm
UBS AG has nominated Wolfgang Mayrhuber for election to its Board of Directors. Wolfgang Mayrhuber is the Chairman of the Executive Board and CEO of Deutsche Lufthansa AG. In September, UBS announced that Sergio Marchionne and Peter Voser had declared their intention not to stand for reelection to the Board.
http://www.ubs.com/1/e/investors/releases?newsId=173690
Sources: UBS, Roche, ITW, P&G, ICSC, Federal Reserve websites.
SKY News Summary 12-03-09
While there are some sectors of the economy that remain depressed (such as commercial real estate, banks, and construction) other sectors enjoy growth. Employment and productivity numbers continue to improve.
ADP’s Employment report estimates that on a seasonally adjusted basis, employment decreased 169,000 from October to November 2009. This was the eighth consecutive month in which employment decreased less than the prior month.
http://www.adpemploymentreport.com/pdf/FINAL_Report_November_09.pdf
Initial unemployment claims fell only 5,000 in the week ending November 28th. Continuing claims for the week of November 21 rose by 28,000 although the 4-week moving average continued to drop, decreasing 75,750 to 5,541,500. The Department of Labor’s Employment Situation numbers will be released tomorrow.
http://www.dol.gov/opa/media/press/eta/ui/current.htm
The Fed’s Beige Book showed consumer spending increased slightly since their last report, with a marked increase in sales of used autos. Manufacturing and nonfinancial service sector also showed improvement. Residential real estate improved from very low levels, especially in the lower end of the market. Most Districts reported some pickup in home sales, though prices were generally said to be flat or declining modestly. Commercial real estate markets and construction activity were, however, very weak. Financial institutions reported weaker loan demand, continued tight credit standards, and steady or deteriorating loan quality. In the agricultural sector, the fall harvest was delayed in the eastern half of the nation due to excessively wet conditions during October and early November.
http://www.federalreserve.gov/FOMC/Beigebook/2009/20091202/default.htm
The U.S. Bureau of Labor Statistics reported that productivity increased at an 8.1 percent annual rate during the third quarter of 2009 reflecting a 2.9 percent increase in output and a 4.8 percent decline in hours worked. Unit labor costs fell 2.5 percent in the third quarter of 2009, as productivity grew at a faster rate (8.1 percent) than hourly compensation (5.4 percent). Manufacturing sector productivity grew 13.4 percent in the third quarter of 2009, as output rose 8.4 percent and hours worked fell 4.4 percent. The third quarter gain in manufacturing productivity was the largest in the series, which begins in the second quarter of 1987.
http://www.bls.gov/news.release/prod2.nr0.htm
The following American Express presentation, made at the 2009 Electronic Payments Summit, is worth reading to understand their credit card business:
http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjEyNDh8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1
CB&I made the following presentation at Citi’s 6th Annual Small/Mid Cap Conference:
http://www.veracast.com/citigroup/smid09/player.cfm?eventName=2031_chicag
Comcast and General Electric will form a joint venture that will be 51 percent owned by Comcast, 49 percent owned by GE and managed by Comcast. The joint venture will consist of NBC Universal (valued at $30 billion) and Comcast’s cable networks, and regional sports networks (valued at $7.25 billion). Comcast will make a payment to GE of approximately $6.5 billion of cash between signing and closing. Headquarters for the business will remain in New York, and the board will have three directors nominated by Comcast and two nominated by GE.
Key Elements Of The Transaction:
• NBCU will borrow approximately $9.1 billion from third-party lenders and distribute the cash to GE.
• NBCU, valued at $30 billion, will be contributed to the newly formed joint venture. Comcast will contribute its programming businesses and certain other properties valued at $7.25 billion.
• GE will acquire Vivendi’s 20% interest in NBCU for $5.8 billion. GE will purchase approximately 38% of Vivendi’s interest (or approximately 7.66% of all outstanding NBCU shares) from Vivendi for $2 billion in September 2010, if the Comcast transaction is not closed by then. GE will acquire the remaining 62% of Vivendi’s interest (or approximately 12.34% of all outstanding NBCU shares) for $3.8 billion when the transaction closes.
• Comcast will make a payment to GE of approximately $6.5 billion in cash subject to certain adjustments based on various events between signing and closing.
• The new venture will be 51% owned by Comcast and 49% owned by GE.
• GE expects to realize $9.8 billion pre-tax in cash before debt reduction and transaction fees and after buyout of the Vivendi stake. GE expects to realize approximately $8 billion in cash after paying down the existing NBCU debt and transaction fees.
• GE will be entitled to elect to cause the joint venture to redeem one-half of its interest at year 3 ½ and its remaining interest at year 7. The joint venture’s obligations to complete those purchases will be subject to the venture’s leverage ratio not exceeding 2.75X EBITDA and the venture continuing to hold investment-grade ratings. Comcast also has certain rights to purchase GE’s interest in the venture at specified times. All such transactions would be done at a 20% premium to public market value with 50% sharing of upside above the closing valuation.
• To the extent the joint venture is not required to meet GE’s redemption requests, Comcast will provide a backstop up to a maximum of $2.875 billion for the first redemption and a total backstop of $5.750 billion.
http://www.genewscenter.com/content/detail.aspx?ReleaseID=9206&NewsAreaID=2
Johnson & Johnson announced that it has submitted a New Drug Application to the FDA for tapentadol extended release tablets, an investigational oral analgesic for the management of moderate to severe chronic pain. Tapentadol ER is an investigational, centrally acting oral analgesic that binds to mu-opioid receptors and inhibits norepinephrine re-uptake. Although the exact mechanism of action is not known, these two mechanisms, which affect established pain pathways, are thought to be responsible for pain relief with tapentadol.
http://www.investor.jnj.com/releasedetail.cfm?ReleaseID=427613
Praxair announced that it will supply Bridgelux, an LED supplier with high-purity ammonia using its bulk supply system. Praxair’s system can deliver sustained ammonia flow rates over 600 standard liters per minute, peaking at over 900 standard liters per minute, with fewer cylinder change-outs, helping to reduce labor costs and improve safety and reliability. http://www.praxair.com/praxair.nsf/AllContent/B9DFD9026CB38DDA8525768100586132?OpenDocument
Sources: Praxair, Johnson&Johnson, GE, Amex, BLS, Federal Reserve, DOL, and ADP websites.
SKY News Summary 12-01-09
There is more encouraging economic news today. The ISM index showed manufacturing rising, which was corroborated by the Department of Labor’s numbers that showed initial unemployment claims dropping. New and pending home sales also grew. Yet, consumer sentiment fell, as people worried about their finances. Perhaps consumers are leery of the effects of pending health care bills.
The Reuters/University of Michigan index of consumer sentiment for the entire month of November decreased to 67.4 from 70.6 in October due mainly to Americans’ perceptions of their own finances.
http://www.bloomberg.com/apps/news?pid=20601103&sid=aSAk5m0.P6U4
Information from the Bureau of Economic Analysis on personal income, and wages and salaries for the month of October shows personal income increased $30.1 billion, or 0.2 percent and wages and salaries increased $2.1 billion in October. Most of the increase came from the services-producing industries’ payrolls which increased $5.4 billion.
http://www.bea.gov/newsreleases/national/pi/2009/pi1009.htm
Norbert J. Ore, chair of the Institute for Supply Management Manufacturing Business Survey Committee, reported that “The manufacturing sector grew for the fourth consecutive month in November. While the rate of growth slowed when compared to October, the signs are still encouraging for continuing growth as both new orders and production are still at very positive levels, and the Prices Index fell 10 points, signaling less inflationary pressure on manufacturers’ costs. Overall, the recovery in manufacturing is continuing, but many are still struggling based on their comments.”
http://www.ism.ws/ISMReport/MfgROB.cfm
Initial unemployment claims dropped 35,000 to 466,000 for the week of November 21 and the 4-week moving average decreased 16,500. The advance number for continuing claims decreased 190,000. The 4-week moving average was 5,613,750, a decrease of 98,500 from the preceding week’s revised average of 5,712,250.
http://www.dol.gov/opa/media/press/eta/ui/current.htm
New homes sales in October 2009 rose 6.2 percent above the revised September rate of 405,000 and were 5.1 percent above the October 2008 estimate of 409,000. There were 239,000 new houses for sale at the end of October, which represents a supply of 6.7 months at the current sales rate. This is the lowest inventory going back to 1971.
http://www.census.gov/const/newressales.pdf
The Pending Home Sales Index, which is based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. This is the highest level since March 2006 when it was 115.2. ‘Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.” Yun cautioned that home sales could dip in the months ahead. “The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.
Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.’
http://www.realtor.org/press_room/news_releases/2009/12/nine_sales
Boeing and the U.S. Army completed a test in September in which a laser system mounted on an Avenger combat vehicle destroyed 50 improvised explosive devices (IEDs) similar to those used in war zones. Using this device, soldiers would not have to leave their armored vehicles or wait for the explosive ordnance disposal team to destroy an IED before continuing their mission.
http://boeing.mediaroom.com/index.php?s=43&item=968
Advanced Sterilization Products, as subsidiary of the Johnson & Johnson, announced it will acquire, Gloster Europe, which designs and sells area decontamination technology to hospitals and operating rooms. Their technology generates a dry mist of hydrogen peroxide on all surfaces and is currently being used in Europe and the Middle East.
http://www.jnj.com/connect/news/all/20091123_110000
Johnson Controls-Saft has been chosen as the Lithium-ion battery supplier on Ford’s new all-electric van (Azure), which will be in production beginning in late 2010. This is the first of four electric vehicles Ford plans to build in its global commercial vehicle program. In addition to its work with Azure, Johnson Controls-Saft is in production with the Mercedes S-Class hybrid, currently on sale in Europe and the United States. Johnson Controls-Saft also will supply the Li-ion hybrid batteries for the BMW 7-Series ActiveHybrid available in 2010 and Ford’s first plug-in hybrid electric vehicle available in 2012.
http://www.johnsoncontrols.com/publish/us/en/news.html
Lockheed Martin and Microsoft entered into an intellectual property licensing agreement that allows Lockheed Martin to further develop the Microsoft’s flight simulators for battle. The instrumentation panel replicates the Boeing 747-400, but can be customized by developers to add their own scenery, objects, and functions.
http://www.microsoft.com/presspass/press/2009/nov09/11-30warfightertrainingpr.mspx
Three members of Walgreens’ board of directors will retire Jan. 13. Charles R. “Cork” Walgreen III, grandson of the company’s founder, will step down after serving on the board for 46 years. Cordell Reed and Marilou M. von Ferstel also will retire from the board in January. Mr. Walgreen, who began working for the company as a stock boy in 1952, earned a pharmacy degree from the University of Michigan in 1958 and held positions including pharmacist, district manager, regional manager and vice president. He joined the board in 1963 and was named CEO in 1971 and chairman in 1976.
http://news.walgreens.com/article_display.cfm?article_id=5238
Sources: Microsoft, Walgreens, Johnson Controls-Saft, Johnson&Johnson, Boeing, National Association of Realtors, Institute for Supply Management, Census Bureau, Department of Labor, Bureau of Economic Analysis and Bloomberg websites.