ADP Report: Wednesday's Headlines
The latest ADP employment report showed that the private sector lost 22,000 jobs in January.
NEW YORK (
) -- Here are the top stock market headlines for the morning of Wednesday, Feb. 3, 2010.
Wednesday's Early Headlines
- ADP Report Shows Moderating Job Losses in January -- Automatic Data Processing's (ADP) - Get Report latest employment report showed that the private sector lost 22,000 jobs in January, an improvement from the revised December number of losses totaling 61,000 and better than the consensus for a loss of 30,000. It was the fewest number of private sector jobs lost since February 2008. January's ADP Report estimates nonfarm private employment in the service-providing sector increased by 38,000, the second consecutive monthly increase. However, this employment growth was not enough to offset continued losses in the goods-producing sector, the report said.
- Planned Layoffs Increase to Start 2010: Challenger Report -- Employers cut payrolls in January by 71,482 jobs, a 59% increase from December and the first increase in monthly job cuts since last July, according to outplacement firm Challenger, Gray and Christmas. The surge was due primarily to heavy downsizing in the retail and telecommunications sectors, the firm said. Still, although layoffs increased from December, the January total was down 70% from a year ago, when planned layoffs peaked at 241,749.
- Mortgage Applications Tumble, Rates Jump -- The Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, rose a seasonally adjusted 21% last week, as both the purchase and refinance indexes returned to mid-December levels. Refinancing applications rose 26.3% compared with the prior week, the survey showed. The average 30-year fixed-rate mortgage rate slipped to 5.01% last week from 5.02% the previous week, the MBA said.
- AIG Reportedly to Pay $100 Million In Bonuses -- American International Group (AIG) - Get Report agreed to cut employee bonuses by $20 million but will still distribute about $100 million on Wednesday, according to a New York Times report. AIG first promised the bonuses to retain people at its financial products unit, the division that made derivatives trades that went sour and which led to a U.S. government bailout of $180 billion. The contracts, which were established in December 2007, called for the bonuses to be paid in regular installments to more than 400 employees in the unit, the report said. The final payment, of about $198 million, was due in mid-March, but was moved up to Wednesday as part of the agreement to reduce its size, the Times reported.
Wednesday's Earnings Roundup
- Pfizer (PFE) - Get Report notched an adjusted fourth-quarter profit of 49 cents a share, which was a penny worse than the Thomson Reuters average estimate. Revenue jumped 34% from a year ago to $16.54 billion, which was above consensus. Looking ahead, Pfizer offered weak full-year earnings guidance for 2010, saying it expects adjusted earnings of $2.10 to $2.20 a share, which is below the $2.27-a-share consensus.
- Time Warner (TWX) reported a fourth-quarter adjusted profit of 55 cents a share, which beat the Thomson Reuters average estimate of 52 cents a share. Revenue was up 2.2% from a year earlier to $7.32 billion, also ahead of forecasts. Looking ahead to 2010, Time Warner said it expects adjusted earnings-per-share growth in the mid-teens. In addition, Time Warner raised its dividend 13.3% to an annual 85 cents a share from 75 cents.
- Comcast (CMCSA) - Get Report posted a fourth-quarter profit of 33 cents a share, or 29 cents a share after stripping out gains from a tax benefit. Analysts were looking for a profit of 27 cents a share, according to Thomson Reuters. Revenue climbed 3% to $9.07 billion, also above consensus.
- International Paper (IP) - Get Report said it earned 24 cents a share on an adjusted basis in the fourth quarter, which was a penny better than Wall Street's target. Revenue fell 8.7% from a year ago to $5.98 billion, which was also ahead of consensus.
-- Written by Robert Holmes in Boston
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