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Wednesday, December 12, 2012

Schacknow, Today's Brief - 12-12-12

December 12, 2012

TODAYS PRIMER                             
Peter Schacknow, Senior Producer, CNBC Breaking News Desk 

    The new day begins with the major averages having made up all their post-Election Day losses – the Dow and S&P 500 are coming off their highest closes since October 22, the Nasdaq since October 18.  The Dow’s 5-day winning streak is its first of that length or longer since March, and the S&P has also risen for five consecutive sessions.

    Today’s major focus – besides the ongoing fiscal cliff talks – is the latest policy statement from the Federal Reserve’s Open Market Committee.  That will come at approximately 12:30pm ET, followed by a news conference from Fed chairman Ben Bernanke at 2:15pm ET.  The Fed will also issue its latest economic forecasts at 2pm ET.

    Also on today’s economic calendar: November import and export prices at 8:30am ET, and the November federal budget statement at 2pm ET.

    The earnings schedule is extremely light today, with Costco (COST) and Joy Global (JOY) among the few companies of note on the schedule for this morning.  Restoration Hardware (RH) will be out with its quarterly numbers after the closing bell.

    Costco (COST) is already out with its fiscal first quarter numbers,  earning $0.95 per share, two cents above estimates.  Revenue and profit margins also beat consensus, as the warehouse retailer posted higher sales and benefited from higher membership fees.

    Microsoft (MSFT) will make its new Surface tablet available at more retailers, and will extend the run of temporary Microsoft holiday stores.  Some of those locations will transition into permanent Microsoft retail outlets.  Separately, office supplies retailer Staples (SPLS) has announced it will begin to carry the Surface this week.

    Molycorp (MCP) chief executive officer Mark Smith has left the producer of rare earth metal products.  Constantine Karayannopoulos will service as interim chief executive while a search is conducted for a permanent CEO.  Karayannopoulos is former CEO of Neo Material Technologies.

    DuPont (DD) says it sees full year 2012 earnings at the high end of its previously projected range of $3.25 - $3.30 per share, versus Street estimates of $3.29.  The Dow component also announced a $1 billion share buyback.

    Lazard (LAZ) has declared a special dividend of $0.20 per share, and the investment firm is also accelerating its regularly quarterly dividend – ordinarily payable in February – into December in anticipation of higher tax rates.

    Thor Industries (THO) is taking a similar action, declaring a special dividend of $1.50 per share, and accelerating its January quarterly dividend payment into December.  Thor is a maker of recreational vehicles, commercial buses, and ambulances.

    Dolby Laboratories (DLB) has declared a special dividend of $4.00 per share, payable on December 27 to shareholders of record as of December 21.

    Moody’s (MCO) has boosted its quarterly dividend by 25% to $0.16 per share.
    Cummins (CMI) has authorized a $1 billion share repurchase program.  That comes as the engine maker’s current $1 billion program nears conclusion.

    Big Lots (BIG) executives reportedly sold more than $23 million in stock in March, just before negative news that sank the price.  That’s according to the Wall Street Journal, which says these sales were made outside of prearranged trading plans.

    Coinstar’s (CSTR) Redbox unit is launching an unlimited streaming video plan that also comes with four nights of physical DVD rentals for $8 per month.  That’s seen as a challenge to Netflix (NFLX), which dominates the category.

    Avon Products (AVP) is cutting about 1,500 jobs globally, and also will exit the South Korea and Vietnam markets.  The moves are part of a restructuring plan that was announced last month.
    Apple (AAPL) is in the early stages of designing a large, high resolution TV set, according to the Wall Street Journal.  The paper says Apple is working with Hon Hai, which assembles the iPad and iPhone, as well as Sharp, on the design of the new set.

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