Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Deals, Apple Inc (AAPL), Time Warner (TWX), Coca-Cola (KO), Market matters, H and R Block (HRB), Boeing Co (BA), ConAgra Foods (CAG), Costco Wholesale (COST), Staples Inc (SPLS), U.S. Steel (X), Economic data, United Technologies (UTX), Oil, Lehman Br Holdings (LEH), Federal Reserve
Stock futures were lower this morning as investors digested the decline in commodity prices and awaited a slew of economic readings. Data on employment, manufacturing and auto sales will be reported during the morning and throughout the day. At 2:00 p.m., the Federal Reserve’s Beige Book, which gives an overall picture on the economy will be released.
Coca-Cola Co. (NYSE: KO) stated it is offering $2.4 billion for China Huiyuan Juice Group Ltd., triple Huiyuan’s market value. This is Coke’s largest acquisition by value to date in China and gives the company a leg in the fast-growing and dynamic Chinese juice market. Coke also stated that it anticipates to purchase back a total of $1 billion of its stock for the full year.
The Boeing Co.’s (NYSE: BA) workers are prepared to vote Wednesday. Union members are scheduled to cast two ballots: one regarding Boeing’s latest offer, which union leaders are recommending to reject, and another on whether to start a strike. Results of the vote are expected Wednesday night.
More information is coming out regarding Korea Development Bank interest in Lehman Brothers (NYSE: LEH). According to reports in The Chosun Ilbo, South Korea’s largest mass-circulation daily, state-owned KDB has made a proposal to acquire 25% of U.S. Lehman for as much as 6 trillion won ($5.3 billion). HSBC Holdings (NYSE: HBC) and an unnamed Chinese bank are stated to be vying with the KDB for the Lehman stake.
Apple Inc. (NASDAQ: AAPL) Tuesday announced a “Let’s Rock” event September 9. It will likely launch new iPods. Reuters states analysts “expect Apple to announce a refresh of its line of iPods and cuts to prices of some models.”
Earnings: Staples Inc. (NASDAQ: SPLS) and H&R Block Inc. (NYSE: HRB) are due today.
Movers:
- ConAgra Inc. (NYSE: CAG) stock was down almost 5% in after-hours trading Tuesday after it gave a warning on fiscal-first quarter profit due to weakness in its consumer foods unit. J.P. Morgan downgraded ConAgra from Overweight to Neutral.
- Ambac Financial (NYSE: ABK) shares are up over 14% in pre-market trading after ABK won approval of Wisconsin Insurance Commissioner to restart the company’s Connie Lee Insurance Company subsidiary as a new municipal bond insurer.
- Costco Wholesale (NASDAQ: COST) shares are down over 4% in pre-market trading after reporting same-store sales rose 9% in August in the U.S., or 6% excluding the effect of higher gas prices. Total sales figures were below analyst estimates.
Analyst calls:
- U.S. Steel (NYSE: X) was upgraded by CIBC to Sector Outperform from Sector Perform.
- United Tech (NYSE: UTX) was upgraded by UBS from Neutral to Purchase.
- Time Warner (NYSE: TWX) was downgraded by Bernstein from Outperform to Market Perform.
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