(InvesTrend Via Thomson Dialog NewsEdge)
January 15, 2008 (Financial Wire) Conference calls scheduled at 11 a.m.
on Investrend Broadcast via partner BestCalls include Hot Topic Inc.
(NASDAQ: HOTT), OMNOVA Solutions Inc. (NYSE: OMN), Kona Grill Inc.
(NASDAQ: KONA), Bank of the Ozarks Inc. (NASDAQ: OZRK).
Conference calls are often impacted by market trends, geopolitical
conditions, news coming from conferences and economic releases.
(By Philip Holmes) Stocks rose on Monday, recapturing some of the
ground lost in recent weeks. But investors are bracing for possible bad
news from the banks, as the financial sector bares its gray flannel
pockets for earnings season. They re right to worry, if the news on
credit cards is any indication. For Monday, though, the news was
encouraging. The Dow Jones industrial average rose 171.85 points to
close at 12,778.15. The S&P 500 index gained 15.23 points, to 1,416.25,
while the Nasdaq composite index ended the trading day at 2,478.30,
lofting 38.36 points. IBM s strong earnings report played a big role in
generating this enthusiasm. So did weeks of recent sell-off in the
equity markets. Buyers were itching for some good news. How bad is it
for the banks? That s the trillion dollar question hanging over the
Street, and the signs are troubling, with Q4 2007 earnings season
underway. Merrill Lynch is hunting for a $4 billion cash fix, while
rumors abound of a $24 billion at Citigroup. Several smaller banks are
upping their loan loss provisions. BusinessWeek reports on how worried,
and confused, investors are likely to be by the financial sector s Q4
earnings releases. The paper says that the profit figures for the
sector are likely to be confusing and unreliable, with investors
wondering whether the banks have over- or understated results. What s
to blame for the confusion? Housing, of course. For months we ve all
wondered when, and how, banks would take out the trash by disclosing
the extent of their exposure to deteriorating conditions in the housing
sector. According to BW, bankers don't really know the value of their
mortgage holdings or the complex securities based on home loans. BW
cites Reuters Estimates, whose analyst pals reckon that Q4 earnings
from financial companies will be down 62% from a year ago. Not good,
and new causes for concern keep appearing. One of them is the worsening
consumer credit picture. The New York Times reports that consumers are
turning ever more to credit cards and home equity lines to support
consumption. That s right, equity lines on the very houses that are
losing equity by the minute nationwide. Blogger Mike Shedlock looked at
the Times piece, and shared some grim data: Credit card debt rose at an
annual rate 8.5 percent October, and another 11.3 percent annual rate
in November. Shedlock also reports that the quarterly delinquency rate
for Capital One, Washington Mutual, Citigroup, J.P. Morgan Chase, and
Bank of America rose an average of 13% in the third quarter. On a
positive note, the LIBOR has been dropping, offering some relief for
the credit markets. But get out your umbrellas, because some other
things are set to drop as well. Namely, bank earnings.
The Investrend Earnings Calendar features CA Pizza Kitchen (NASDAQ:
CPKI), expected at $0.23 a year ago versus $0.13, Intel Corp. (NASDAQ:
INTC), expected at $0.40 versus $0.26, Linear Technology (NASDAQ:
LLTC), expected at $0.41 versus $0.34, U.S. Bancorp (NYSE: USB),
expected at $0.59 versus $0.66.
The Investrend Economics Calendar highlights Retail Sales for December
(8:30 a.m.), Producer Prices for December (8:30 a.m.), NY Empire State
Index for January (8:30 a.m.), Weekly Chain Store Sales (8:55 a.m.),
Business Inventories for November (10 a.m.).
The Investrend Events Calendar AEO, BJRI, BWS, MSSR, BUCA at Cowen and
Company Consumer Conference, ALC at Stifel, Nicolaus & Company Inc.
Senior Housing & Health Care Real Estate Conference, BSC, JEF at
Capital Link, Inc Analyst Panel Discussion, CHS at Merrill Lynch
Retailing Leaders One-on-One, COH, IBM, TLB, ORCL WMT at The National
Retail Federation Annual Conference, Credit Suisse Group Auto Analysts
of New York Conference, DOW, JEVC at Chemical Week Associates
Transportation, Distribution and Security Conference,
The Investrend Money Index is an indicator of the depth of market
direction or indirection. While not always including the same stocks,
the NYSE/NASDAQ 50 Most Actives indicate the direction in which the
mass of money is flowing. Last session's trading showed 40 advancers
versus ten decliners. Advancers were led by Converted Organics (NASDAQ:
COIN) up 41.38%, Sanmina-Sci Corp (NASDAQ: SANM) up 7.69%, Nvidia Corp
(NASDAQ: NVDA) up 6.65%. Decliners followed Schering Plough Cp (NYSE:
SGP) down 7.97%.
Vote in the Investrend Poll Question of the Day at Investrend
Information (http://www.investrendinformation.com).
Investrend Website of the Day: http://www.brillig.com/debt_clock/
Quote of the Day: "Of all the noises known to man, opera is the most
expensive." Jean-Baptiste Moliere
Today is: Procrastinator s New Year, Hat Day.
Happy Birthday: Jean-Baptiste Moliere, Philip Livingston, Edward
Teller, Jean Bugatti, Gene Krupa, Lloyd Bridges, Gamal Abdal Nasser,
Martin Luther King Jr, Ronnie Van Zant, Charo, Drew Brees, Howie Day.
Today in History: The British Museum opened in 1759. University of
Notre Dame received its charter from the state of Indiana in 1844. A
political cartoon in 1870 for the first time symbolized the United
States Democratic Party with a donkey by Thomas Nast for Harper's
Weekly. James Naismith published the rules for basketball in 1892.
[FirstAlert was created by Gayle Essary, founder of Investrend
Communications, Inc., parent of Investrend Information
(http://www.investrendinformation.com). The opinions expressed in
FirstAlert do not necessarily reflect the opinions of Investrend.]
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