IBM And SAP Top Q4 Forecasts
1 Halting a recent tech slide, Big Blue preannounced that profit rose 24% to $2.80 a share ex items, 20 cents above views. A weak dollar helped lift IBMs revenue (NYSE:IBM - News) 10% to $28.9 bil. But IBM was mum on U.S. results. Meanwhile, German software giant SAP (NYSE:SAP - News) said Q4 sales rose 10%, beating views. IBM shares rose 5% and SAP 4%.
Stocks Rally On Upbeat Big Blue
2 The major averages rallied as strong results from IBM and SAP offset more bad news from Sears (NasdaqGS:SHLD - News). The Nasdaq rose 1.6%, the Dow climbed 1.4% and the S&P 500 added 1.1%. Volume was light, though. Agricultural groups continued to soar on rising crop prices. The 10-year Treasury yield fell 2 basis points to 3.78%.
Dem Voters Split On Racial Lines
3 As the Hillary Clinton and Barack Obama camps clash over race, white Dems prefer Clinton by a wide margin while black Dems overwhelmingly favor Obama, according to a Rasmussen poll. John McCain is widening his lead in natl GOP polls but is deadlocked with Mitt Romney in economically struggling Michigan, which holds its primary Tue.
Citigroup May Cut 24,000 Jobs
4 The ailing financial giant may write off $24 bil for mortgage-related losses, and set plans to cut payrolls by 17,000-24,000 when it reports results Tue., CNBC reported. Another report said Citi may slash its dividend as it seeks foreign capital. Chinas govt reportedly blocked a Chinese bank from investing in Citi (NYSE:C - News), which may get other cash injections from Kuwait and Singapore.
Sears Sees Softer Side Of Sales
5 The retail giant sees Q4 profit of $2.59 to $3.48 share, far below forecasts of $4.43. Sears cited holiday same-store sales in the U.S. that fell 3.5%, as well as the credit crunch and housing woes. Meanwhile, the National Retail Federation said total U.S. sales will rise just 3.5% in 08, the slowest growth in 6 years. Sears shares fell 5% to a 2-year low, but retail stocks overall rallied.
Commodities Lodge Big Gains
6 Everything from gold and copper to oil and cotton rallied as the dollar weakened again. Feb. gold rose $5.70 to $903.40, its first close above $900 an ounce ever. Cotton hit its highest in nearly 4 years. Corn, wheat and beans surged again as supplies dwindled. Cocoa also jumped. Crude shot up $1.51 to $94.20 a barrel.
Sunni Bloc May Rejoin Iraq Govt
7 The main Sunni Arab bloc, which quit the Shiite-led govt last year, said its members were ready to revive the unity govt. The move comes after Iraqi lawmakers voted to let members of Saddam Husseins Baath party return to govt jobs, a longtime Sunni demand. Separately, U.S. forces said 60 militants were killed in a weeklong sweep in N. Iraq.
Afghan Militants Hit Key Hotel
8 Taliban militants armed with grenades and assault rifles attacked a fortified hotel in Kabul used by diplomats and foreign business leaders, killing 6 and wounding at least 6. Norways foreign minister was holding a meeting when the assault occurred. He escaped injury, but the brazen attack could rattle the confidence of Western business leaders who often stay at the hotel.
Toyota To Test Plug-In Hybrids
9 The Japanese automaker said it plans to test hundreds of plug-in hybrid vehicles by the end of 2010. Toyota (NYSE:TM - News) is working on the needed lithium-ion battery technology and is partnering with Panasonic to mass produce the batteries. The announcement was a challenge to GM (NYSE:GM - News), which is trying to bring the Chevy Volt plug-in to market in 2010.
Bush Promotes Saudi Arms Deal
10 Seeking to counter Irans growing military clout, President Bush said during a visit to Saudi Arabia that hes committed to selling $20 bil in advanced weapon systems, including precision-guided bombs, to the Islamic kingdom. Bush was in Riyadh for talks with King Abdullah, urging the Arab leader to press Palestinians to crack down on militants and pursue peace with Israel.
No comments:
Post a Comment