Wall Street Rumors - April 17, 2008
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Merrill Lynch Swings to a Loss, Plans to Cut Another 4,000 Jobs
Merrill Lynch & Co. (NYSE:MER) posted its third consecutive quarterly loss Thursday and said it is cutting 4,000 jobs, as damage from a poorly managed plunge into risky credit-market activities under its previous chief executive continued to hurt the U.S. broker.
IBM Gains After Palmisano’s Forecast Defies Slowdown
International Business Machines Corp. (NYSE:IBM) rose in New York trading after saying 2008 profit will top its previous projections, signaling that the computer-services company will resist the U.S. economic slowdown.
Yahoo-Google Deal Advances
Yahoo Inc. (NASDAQ:YHOO) moved closer to outsourcing its search advertising to Google Inc. (NASDAQ:GOOG) after an initial test of the system yielded what the two firms deemed positive results, people familiar with the matter said.
Philadelphia Fed Index Declines More Than Forecast
Manufacturing in the Philadelphia region contracted more than forecast in April, as measures of new orders and shipments reflected weakening demand.
Cisco Changes Tack In Takeover Game
When Scott Weiss heard that tech behemoth Cisco Systems Inc. (NASDAQ:CSCO) wanted to acquire an email-security company like his startup, he emailed a vow to his staff: “Said acquiree will not be us.”
JPMorgan Raises $6 Billion in Hybrid Securities Sale
JPMorgan Chase & Co. (NYSE:JPM) raised $6 billion of hybrid securities in the bank’s biggest-ever sale, after reporting a 50 percent drop in first-quarter profit.
Soaring Fuel Prices Hurt Airlines
Surging fuel prices are hitting airlines hard in the first quarter. Continental Airlines Inc. (NYSE:CAL) on Thursday swung to a net loss amid a 53% surge in fuel costs, while Southwest Airlines Co. (NYSE:LUV) posted a 63% plunge in first-quarter net income.
Nokia Profit Misses Estimates; Forecasts Market Slide
Nokia Oyj (NYSE:NOK), the world’s biggest maker of mobile phones, reported first-quarter profit that missed analysts’ estimates and said the value of the global handset market will shrink in euro terms this year.
Asian growth drives Prudential sales up 13%
U.K. insurer Prudential (NYSE:PRU) said Thursday that strong growth from its Asian division helped drive a 13% rise in first-quarter new business and offset a decline in the U.S., where sales have been hurt by the market turmoil.
BOE Received Most Bids in Three Months at Auction
The Bank of England said financial institutions bid for 50 billion pounds ($99 billion) in its weekly auction, the most in three months, as a worsening shortage of credit increased the need for central bank funds.
Pfizer’s Net Falls 11% As Generics Advance
Pfizer Inc.’s (NYSE:PFE) first-quarter net income fell 18% as generics invaded the market for two drugs and sales slipped for its cornerstone drug Lipitor. The world’s largest drug maker by sales recorded net income of $2.78 billion, or 41 cents a share, compared to $3.39 billion, or 48 cents a share, a year earlier. Both periods included 20 cents a share in charges.
GE to Buy Most of CitiCapital’s Lending Unit; Terms Undisclosed
General Electric Co.’s commercial finance unit said it agreed to buy about $13.4 billion in assets from CitiCapital, or most of Citigroup Inc.’s (NYSE:C) North American commercial lending and leasing unit. Terms weren’t disclosed.
Sallie Mae Sounds the Alarm
SLM Corp. (NYSE:SLM) swung to a first-quarter loss and warned it can’t make profitable loans at this time, prompting the nation’s largest student lender to assess its operation and call for a “system-wide liquidity solution.”
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