Wednesday, March 3, 2010
Wednesday Morning 3/3/10
US stocks are trading flat in pre-market activity.
Greece announced "austerity" measure designed to save them about $6.5billion a year. Among details outlined from the WSJ:
"The measures effectively include slashing more than 60% of one month's pay for public-sector workers by cutting 30% of their current Christmas, Easter and holiday bonuses, the official said. Greek civil servants get an extra salary at Christmas and another through bonuses during the Easter holiday and the month of August."
The private sector shed 20k jobs in February, according to a Reuters survey. Less than the 60k lost in January.
Novell shares are up 30% in premarket trading, after shareholder Elliott International offered to buy them last night. Likely in a panic, management has hired JP Morgan and Skadden, Arps to figure out just how in the hell they will retain their jobs...
Mining equipment firm Joy Global (JOYG) beat earnings and revenue estimates, and guided 2010 in line with expectations. CEO Mike Sutherlin said " We continue to see strength in the international and emerging markets for all commodities, and the U.S. thermal coal market is correcting faster than expected. I was also pleased that we reduced our trade working capital during the first quarter as we continue to improve the efficiency of our processes. As a result, we are well positioned to take full advantage as the market recovery unfolds.”
Costco (COST) missed earnings estimates by 2cents, despite better than expected revenues. Shares are down 3.5% on the news.
Goldman Sachs put out a report initiating coverage of the transportation industry, with Air Freight as Attractive, and Railroad & Trucking with a Neutral View. The individual names:
UPS - Buy. $76 price target = 28% upside
FDX - Neutral. $95 price target = 12% upside
UNP - Neutral. $80 price target = 19% upside
NSC - Neutral. $55 price target = 4% upside
KSU - Neutral. $37 price target = 6% upside
CSX - Sell. $46 price target = 5% downside
CHRW - Sell. $51 price target = 4% downside
JBHT -Neutral. $37 price target = 5% upside
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Posted by Brendan Wagner at 6:20 AM