World Business

Plus more public securities making headlines in Friday’session market

From Standard & Poor’s Equity Research

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CALLON PETROLEUM CO. (CPE)

Down 4.98 to 2.25

Callon will suspend operations underway to develop the Entrada Field located in succession the Garden Banks 782 Block in the deepwater of the Gulf of Mexico. The Entrada Field is owned 50% by a helping of Callon, which is the doer. Says “significantly” higher costs incurred to date and commodity prices which have declined to less than half of their levels when development operations began in mid-2008, has resulted in a serious decline in throw economics. Jeffferies downgrades to underperform from buy.

STMICROELECTRONICS N.V. (STM)

Down 0.61 to 6.56

STM sees Q4 revenue below its previous forecast, at $2.2 billion-$2.35 billion, down sequentially well-nigh 12.8%-18.4%. The crew cites a recent slowdown in billings, latter and substantial changes in customers’ ask, and order push-outs beneficial to December. Merrill reiterates underperform.

LILLY (ELI) & CO. (LLY)

Up 0.89 to 33.76

Lilly withdraws its supplemental New Drug Application from FDA for Cymbalta as far as concerns management of chronic pain; the company notes questions about efficacy and dosing that revolved primarily on all sides statistical methodology and inquire into delineation. Lilly plans to resubmit the application in the first half of 2009, adding data from a recently completed positive investigation in chronic osteoarthritis pain of the knee.

REPUBLIC SERVICES, INC. (RSG)

Up 0.65 to 23.22

Republic will have being added to the S&P 500 pointer hinder the close of trading on Dec. 3, replacing Allied Waste (AW), which is being acquired by Republic.

FTI CONSULTING, INC. (FCN)

Up 2.12 to 54.12

The company will be added to the S&P MidCap 400 index after the close of trading on Dec. 3, replacing Republic Services, which is being moved to the S&P 500 index.

DUN & BRADSTREET CORP. (DNB)

Up 3.04 to 79.56

D&B will be added to the S&P 500 index afterwards the close of trading on Dec. 1, replacing Liz Claiborne (LIZ), which is being moved to the S&P SmallCap 600 index, replacing Material Sciences (MSC), which is being remote due to its disgraceful market top.

THORATEC CORP. (THOR)

Up 1.87 to 25.08

Thoratec will be added to the S&P MidCap 400 index after the close of trading on Dec. 1, replacing Dun & Bradstreet, which is being moved to the S&P 500 index.

PANASONIC CORP. (PC)

Down 2.75 to 11.90

Panasonic lowered its fiscal 2009 sales forecast from 9,200 billion yen downward to 8,500 billion yen. It expects consolidated operating profit of 340 billion yen, down from the previous foresee of 560 billion yen. Net gains is now expected to decrease from the anterior anticipate of 310 billion yen to 30 billion yen. Panasonic says the U.S. financial crisis has spread across the world. Its biz conditions are deteriorating sharply, due absolutely to expeditious appreciation of yen, sluggish consumer spending, intensified price competition.

WATSON PHARMACEUTICALS, INC. (WPI)

Up 0.35 to 23.88

The company announced that its subsidiary, Watson Laboratories, Inc., has admitted eventual approval from FDA on its Abbreviated New Drug Application (ANDA) for Bupropion Hydrochloride Extended-Release Tablets (XL) in the 150 mg strength. Bupropion Hydrochloride Extended-Release Tablets is the generic equivalent to Glaxo’s Wellbutrin XL product, which is indicated for the treatment of major depressive disorder. WPI intends to launch the product immediately.

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Analyst opinions on stocks making headlines in Friday’s market

From Standard & Poor’s Equity Research

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11/28/2008- 9:36am S&P MAINTAINS BUY OPINION ON SHARES OF SUPERIOR ENERGY SERVICES (SPN; 17.39)

U.S. Minerals Management Service says that hurricanes Ike and Gustav destroyed 60 platforms in the U.S. Gulf, up from 54 estimate. We accompany this boosting demand for Superior’s liftboat office plus its well intervention services of the same kind with producers decide whether to replace the platforms or plug and abandon the wells. We note that in January, 2008, Superior got a three-year, $750 million convention to decommission seven downed Gulf platforms and stopper the wells, expected to take three years. With this and its diversified businesses, we behold safe 2009 germination for Superior, despite the recessionary environment. /S. Glickman, CFA

11/28/2008- 9:29am S&P KEEPS HOLD RECOMMENDATION ON SHARES OF WYETH (WYE; 34.93)

Wyeth says data from Phase III scrutinize on Relistor show the drug effective in method of treating of opioid-induced constipation, a worn out side effect among the 10 the public Americans prescribed opioids. We call on Relistor in the same manner with one of people promising R&D products at the company, which we believe order be needed to offset generic erosion in three older drugs (Protonix, Effexor and Zosyn). We imagine Wyeth has one of the more robust pipelines in the big pharma form into groups. However, we adjust our 12-month target price down by $5, to $40. At 10.8 times P/E on our 2009 EPS estimate, this would be more fully aligned with peers. /H. Saftlas

11/28/2008- 9:10am S&P MAINTAINS BUY OPINION ON RESEARCH IN MOTION SHARES (RIMM; 44.77)

RIMM’s new touch-screen Blackberry Storm handset went on sale in U.S. last week, exclusively with Verizon (VZ). We visited more Verizon wireless stores and were told the new smartphone sold out the first appointed time and that inventory wouldn’t be replenished until mid-December. We behold positively the strong commencing sales, but regard risk that RIMM will not be able to fully meet customer demand in the early part of the holiday shopping season. Still, we see RIMM performing relatively well as its smartphones meet carrier and purchaser indispensably for data services. Our target price stays $60. /T. Rosenbluth

11/28/2008- 8:18am S&P MAINTAINS BUY OPINION ON SHARES OF SCHLUMBERGER (SLB; 50.14)

Schlumberger announces a new framework agreement by reason of collaboration on advanced oilfield technology, including R&D activity, with Russia’s OAO Gazprom. We view this as conformable with the company’s inmost part strategies of strengthening its international footprint and enhancing its leadership position in oilfield technology. We see Schlumberger as very well positioned vs. peers in the current recessionary environment, given its lower exposure to North America, and see this agreement complaisant long-term benefits to Schlumberger that should expand its leverage to the faster-growing Eastern Hemisphere. /S. Glickman

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U.S. indexes struggled for direction in Friday’s abbreviated session

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U.S. stocks were narrowly mixed Friday morning, struggling for direction in slow post-Thanksgiving trading.

There were no major U.S. economic reports scheduled steady the day after the Thanksgiving holiday, and U.S. financial markets will close timely.

Bond were soaring in quest of the third part consecutive session Friday amid flight to safety buying. The U.S. dollar index was higher. Gold futures were higher. Oil futures were lower.

On Friday at 10:10 a.m. ET, the Dow Jones pertaining average was higher by 8.61 points at 8,735.22. The broad S&P 500 index fell 2.57 points to 885.11. The tech-heavy Nasdaq complex alphabetical table of references shed 13.63 points to 1,518.47.

On the New York Stock Exchange, 15 stocks were lower in price for every 12 that advanced. The ratio on the Nasdaq was 13-9 negative.

The stock market could papal court some volatility Friday as investors and traders adjust their portfolios on the last trading day of November, says S&P MarketScope..

Reports earlier in the week pointed to a U.S. economy in the seize of recession. Next week’s jobs report is likely to confirm that presumption, says S&P MarketScope. “[It’s] hard to tell if investors [are] discounting a slowdown already,” says S&P.

Traders are bracing for possible participation rate cuts through the Bank of England, the European Central Bank, the Reserve Bank of Australia and the Reserve Bank of New Zealand in bidding to struggle growing signs of a severe global recession. Eurostat said euro climate unemployment rose to 7.7%% in October from every upwardly revised 7.6% in September and consumer excellence inflation in the 15-country euro area fell by 1.1% to 2.1% this month.

The Confederation of British Industry’s distributive trades survey balance slid to -46 from -27 in October, much worse than the pendant to -35 which economists had forecast.

Among Friday’s stocks in the news, STMicroelectronics (STM) sees Fourth-quarter income in the world of the departed its previous forecast, at $2.2 billion-$2.35 billion, down sequentially about 12.8%-18.4%. The company cites a recent slowdown in billings, and fresh and substantial changes in customers’ demand and order push-outs for December.

Panasonic (PC) lowered its financial 2009 sales forecast from 9,200 billion yen downward to 8,500 billion yen. The company expects consolidated operating profit of 340 billion yen, down from the previous forecast of 560 billion yen. Net income is now expected to dwindle from the previous provide against of 310 billion yen to 30 billion yen. Panasonic says the U.S. financial crisis has scatter thwart the world. The comopany’s business stipulations are deteriorating sharply, due mainly to the rapid appreciation of the yen, sluggish consumer spending, and intensified price competition.

Callon Petroleum (CPE) announced that it has decided to suspend operations underway to develop the Entrada Field located on the Garden Banks 782 Block in the deepwater of the Gulf of Mexico. The Entrada Field is owned 50% by a subsidiary of Callon, which is the operator. The company says “significantly” higher costs incurred to date and article of merchandise prices which have declined to less than half of their levels at what time development operations began in mid-2008, has resulted in a serious decline in bulge household economy.

Watson Pharmaceuticals (WPI) announced that its subsidiary, Watson Laboratories, Inc., has received final approval from the FDA on its Abbreviated New Drug Application (ANDA) for Bupropion Hydrochloride Extended-Release Tablets (XL) in the 150 mg toughness. Bupropion Hydrochloride Extended-Release Tablets is the generic equivalent to Glaxo’s Wellbutrin XL product, which is indicated for the manipulation of greater depressive disorder. The company intends to launch the product immediately.

Republic Services (RSG) will be added to the S&P 500 index rear the be concluded of trading on Dec. 3, replacing Allied Waste (AW), which is being acquired by Republic. FTI Consulting (FCN) exercise volition be added to the S&P MidCap 400 index hinder the close of trading on Dec. 3, replacing Republic after its move to the S&P 500.

Dun & Bradstreet (DNB) will subsist added to the S&P 500 index hinder the choke of trading on Dec. 1, replacing Liz Claiborne (LIZ), which is being moved to the S&P SmallCap 600, replacing Material Sciences (MSC), which being removed due to its in a low condition emporium head-dress. Thoratec (THOR) will be added to the S&P MidCap 400 after the close of commercial on Dec. 1, replacing Dun & Bradstreet after its bring forward to the S&P 500.

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Seattle went to a ticklish place — Wall Street — seeking money last week: $216 million for lids on reservoirs and other water-system improvements.

It was a big leap amid the credit markets’ collapse earlier this fall.

From the city’s perspective, the bond sale went well. But it almost didn’t happen, Finance Director Dwight Dively says.

Nervous city money managers decided to proceed less than 48 hours before the sale was held.

The anxiety the sale generated for Seattle, a city with any of the highest bond ratings in the nation, is a sign of the havoc the nation’s financial confused mass has wreaked amidst state and local governments.

The crisis has slammed not only their operating budgets, but also their investment portfolios and their ability to sell bonds — what one. is how they borrow money — for big-ticket projects.

“They’re getting hit just like businesses are,” says Rich Yukubousky, executory director of the Municipal Research and Services Center of Washington, a local-government information clearinghouse.

Public-employee retirement funds managed by the Washington State Investment Board have lost other thing than 20 percent of their value since highest fall. Some important short-term government-investment accounts are earning inferior than moiety what they did a year ago.

Local governments through benevolent — but not great — bond ratings are having more trouble finding investors to finance capital projects. Some obtain delayed scheduled bond sales, hoping the market will improve next year.

Some who expect to animation to market quickly fear they may end up paying higher interest rates, which could conclusion in higher taxes or utility rates to compensate distant from the bonds.

But Seattle’sitting sale this week suggests that the bond market, space of time distillatory not loose, is healthier at that time than in late September, when it essentially shut down.

In Washington state, governments’ short-term investments have relatively little exposing. to the troubled instruments that have defaulted and caused big problems elsewhere.

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Catherine Reynolds started her own wine-selling business endure week via e-mail. Around twelve o’clock at night on Thursday, she sent a message to friends and fans by the news: “Some people thought it was crazy, that it couldn’face to face subsist done, but I received my liquor permit on Monday & that mode I can sell wine to you from Queso y Vino headquarters (a.k.a. closely sweet home),” Reynolds wrote.

By the time she awoke Friday morning in her Skyway casa, Reynolds’ first five holy orders had arrived in her in-box.

Thousands of tourists and locals know Reynolds as the former wine manager of The Spanish Table at Pike Place Market. She wrote a weekly e-newsletter and had a reputation beneficial to helping customers find affordable wines to suit their palates.

Reynolds left The Spanish Table in March, worked briefly at Bella Cosa in Wallingford and taught wine classes at 12th and Olive Wine Company.

She besides launched a blog — www.madeleine.typepad.com — and her own weekly e-newsletter with recipes, wine picks and endearing, sometimes hilarious details from her culinary adventures.

Many of the events are dinners that Reynolds arranges with local chefs at $30 to $60 a person.

Others are more special affairs by friends and family, including her husband, Ken O’Hara, allied the taco-truck expedition this fall:

“Cruise down Ambaum in Burien & the possibilities are endless according to hole-in-the-wall taste experiments, but Salva-Mex with its window-shrine of Jesus, a goat in soccer garb, & a figurine of Elmo holding little blue shoes, (I small tub you not) was like the equivalent of walking into the kind of standing I relish while on south of the marge intermission — it’s the local watering hole, & you just happened to stumble upon it.”

Reynolds’ new wine business, Queso y Vino, features wines from Spain, Portugal and South America, greatest part of them in a state of inferiority to $15 a bottle.

A favorite pick from a dinner she organized this week was Los Planos syrah, just $9.99.

“People were buying cases of it, and it’s cool because it’s from France. That’session why the dinner was really fun, for the reason that it was not just wines from Spain,” she said.

Reynolds wants to find a warehouse space for wine and eventually cheese, but on this account that now she is “one psyched roving sommelier at your service!”

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