The French bank is expected to lose 2.5 billion euros
Comments »Source: Facebook’s Business is on Fire
RIMM WARNS AGAIN
Research In Motion sees Q4 $0.80-0.95 vs $1.10 Capital IQ Consensus Estimate; sees revs $4.6-4.9 bln vs $5.05 bln Capital IQ Consensus Estimate
Comments »American Express Says Late Payments Narrowly Rose While Defaults Fall
Gasparino: Morgan Stanley Layoffs Coming $MS
Morgan Stanley (MS: 15.23, +0.17, +1.13%) finally threw in the towel.
After months of denying that the big Wall Street investment bank had plans to announce across-the-board job cuts if business conditions didn’t improve, the firm announced Thursday morning that it will slash about 1,600 jobs, or a little more than 2% of its total workforce.
In July the FOX Business Network was first to report that Morgan was drawing up plans to slash jobs beyond the previously announced cuts of about 300 brokers from its “retail” division — which sells stocks and other securities to individual investors — if business conditions deteriorated. Morgan has the largest retail sales force with about 18,000 brokers.
The FOX Business report was initially denied by press officials at the firm as fear spread among bankers and traders that slowing business conditions were likely to be addressed through job cuts. Adding to the confusion: shares fluctuated wildly over the summer as investors speculated that Morgan was holding sovereign debt and other securities tied to several troubled European countries.
Morgan continues to deny that it has significant exposure to Europe, though today the firm finally confirmed its job cutting plans.
“As we conduct our year-end performance management process and evaluate the right size of the franchise for 2012, we anticipate the elimination of approximately 1,600 positions across the firm globally impacting all job levels — to take place early in the first quarter of 2012,” the firm said in a statement.
Shares of Morgan have fallen more than 40% this year; they rose a little less than 1% on the news.
Morgan isn’t the only firm to announce cutbacks as stiffer regulations and a slowing business environment crimp Wall Street profits. Nearly every major firm is paring back staff, including Morgan’s arch rival, Goldman Sachs (GS: 92.93, -0.32, -0.34%).
Morgan CEO James Gorman has already announced that executives at his firm should expect much smaller bonuses this year, with some receiving no bonus at all.
“The government constraints put on this industry in terms of earning money has never been seen in any other industry,” said securities analyst Dick Bove. “And the result is they have to fire people. This isn’t specific or unique to Morgan Stanley.”
What makes Morgan’s situation unusual is the amount of confusion surrounding the job cuts, and the contingency plans that were in place. Some analysts have speculated that the firm didn’t want to concede it was likely to cut its staff so as not to give credibility to fears it may face losses tied to Europe.
Read more: http://trade.cc/recComments »
Dick Bove: “You Can’t Trust the Banks or the Fed”
Hovnanian Narrows Losses
Discover Puts in a 46% Jump in Profits
Good news here, as shoppers use Discover to buy what it is they think they need. Sales were up 8% while profits jumped 46%.
Comments »SEC Investigates Diamond Foods for Improper Payments
Regulators Are One Step Closer to Finding the Missing MF Global Money
Apparently it is a matter of sorting out which transfers were legal. Then info and funds can be released to the public.
Comments »Honeywell Guides 13% Higher for 2012
Upgrades and Downgrades This Morning
Company | Date | Analyst | Action | From | To |
---|---|---|---|---|---|
CAREFUSION CORP (CFN) |
12/14/2011 | Morgan Keegan | Initiated | Mkt Perform | |
SOLTA MEDICAL (SLTM) |
12/14/2011 | Morgan Keegan | Initiated | Mkt Perform | |
PENN WEST EGY (PWE) |
12/14/2011 | Dahlman Rose | Initiated | Buy |
Company | Date | Analyst | Action | From | To |
---|---|---|---|---|---|
INVESTORS RL ES (IRET) |
12/14/2011 | DA Davidson | Upgraded | Neutral | Buy |
DEMANDTEC INC (DMAN) |
12/14/2011 | JMP Securities | Downgraded | Mkt Outperform | Mkt Perform |
GROUPON INC (GRPN) |
12/14/2011 | Barclays Capital | Initiated | Overweight | |
GROUPON INC (GRPN) |
12/14/2011 | Deutsche Bank | Initiated | Hold | |
GROUPON INC (GRPN) |
12/14/2011 | William Blair | Initiated | Outperform | |
SIEMENS AG-ADR (SI) |
12/14/2011 | Standpoint Research | Upgraded | Hold | Buy |
ASHFORD HOSPTLY (AHT) |
12/14/2011 | UBS | Initiated | Neutral | |
AUTHENTEC INC (AUTH) |
12/14/2011 | Dougherty & Company | Initiated | Buy | |
MERU NETWORKS (MERU) |
12/14/2011 | Avian | Initiated | Neutral | |
ARUBA NETWORKS (ARUN) |
12/14/2011 | Avian | Initiated | Neutral | |
GLOBAL CASH ACS (GCA) |
12/14/2011 | Compass Point | Initiated | Neutral | |
DIEBOLD INC (DBD) |
12/14/2011 | Compass Point | Initiated | Neutral | |
COINSTAR INC (CSTR) |
12/14/2011 | Compass Point | Initiated | Buy | |
ARIBA INC (ARBA) |
12/14/2011 | Longbow | Reiterated | Buy | |
AVON PRODS INC (AVP) |
12/14/2011 | Caris & Company | Upgraded | Average | Above Average |
AMERESCO INC-A (AMRC) |
12/14/2011 | Canaccord Genuity | Resumed | Buy | |
CALLON PETE-DEL (CPE) |
12/14/2011 | Canaccord Genuity | Initiated | Buy | |
SIX FLAGS ENTMT (SIX) |
12/14/2011 | KeyBanc Capital Mkts | Initiated | Hold | |
TOLL BROTHERS (TOL) |
12/14/2011 | Stifel Nicolaus | Downgraded | Hold | Sell |
D R HORTON INC (DHI) |
12/14/2011 | Stifel Nicolaus | Downgraded | Hold | Sell |
ALTRIA GROUP (MO) |
12/14/2011 | Stifel Nicolaus | Downgraded | Buy | Hold |
VOLTERRA SEMI (VLTR) |
12/14/2011 | Needham | Downgraded | Strong Buy | Buy |
DU PONT (EI) DE (DD) |
12/14/2011 | Ticonderoga | Reiterated | Buy | |
RENTECH NITROGN (RNF) |
12/14/2011 | Dahlman Rose | Initiated | Buy | |
AMER WOODMARK (AMWD) |
12/14/2011 | Robert W. Baird | Upgraded | Neutral | Outperform |
ACME PACKET INC (APKT) |
12/14/2011 | Morgan Keegan | Upgraded | Mkt Perform | Outperform |
COMPLETE GENOM (GNOM) |
12/14/2011 | MLV & Co | Initiated | Buy | |
UNIFIRST CORP (UNF) |
12/14/2011 | KeyBanc Capital Mkts | Initiated | Hold | |
G&K SVCS A (GKSR) |
12/14/2011 | KeyBanc Capital Mkts | Initiated | Hold | |
CINTAS CORP (CTAS) |
12/14/2011 | KeyBanc Capital Mkts | Initiated | Buy |
Gapping Up and Down This Morning
Gapping up
NVLS +23.9%, FDX +3%, MTL +2.7% ,CSCO +0.7%, BRCM +1.9%, DB +1.2%, IPG +1.1%, TRIPV +1%, AAPL +0.8%,
ELN +2.4%, AET +0.3%, WLT +2.7%, RBS +3.4%, C +2.4%, BAC +2.3%, MS +2.3%, CS +2.1%, UBS +1.1%, BCS +1%,
CEDC +10.1% , TER +4.8%, SVM +3.4%, MT +2.4%, ABX +1.3%, SLW +1.3%, GLD +1.3%, SLV +0.8%, VRTX +1.2%,
ARIA +1.2%,
Gapping down
DECK -7.9%, IPSU -3.9%, BPAX -75.5%, OREX -15.7%, NDSN -5.3%, LRCX -4%, NOK -3%, HON -1.6%, PAY -0.5%,
DTV -1.2%, SYK -1.2%, LH -1.7% , ETFC -1%
Comments »In Play and On the Wires
FedEx 2nd Quarter Revenues and Profits Crush Estimates on Holiday Activity
Rite Aid Narrows 3rd Quarter Losses; Revenues Rise
Brazil Asks Chevron to Cease All Business Activity and Pay $10 Billion for Oil Spill
CEO Survey: Worries Over Inflation; Few Expect to Create Jobs
“U.S. chief executives’ view of the economy was little changed in the fourth quarter, though they are growing concerned about the risk of inflation in raw material prices, according to a survey released on Wednesday.”
Comments »
Is Best Buy “The Canary in the Coal Mine?”
“I think Best Buy is the canary in the coal mine. I think we’re going to hear retailers across all categories, with the exception of luxury, reporting depressed margin for the holiday time period,” said Joel Bines, managing director of consulting firm AlixPartners.”
Comments »Is Express Scripts Giving You a Buy Signal ?
Investors are reacting to news of contract dispute….perhaps a chance to buy some shares on the cheap. Please do your homework as i have not done any for you.
Comments »