BP, Goldman: Monday's Headlines

BP CEO Tony Hayward is expected to leave the company, while Goldman Sachs faces an audit threat by regulators over derivatives trades.
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(FedEx revised guidance added to this update.)



) -- Here are the top stock market headlines for the morning of Monday, July 26, 2010.

Monday's Early Headlines

  • BP's Hayward to Depart; Dudley Tapped to Replace -- BP's (BP) - Get Report board will name managing director Bob Dudley as its new CEO, if it approves a negotiated departure plan for embattled CEO Tony Hayward, according to a report Sunday by The Wall Street Journal. Dudley will reportedly take the CEO position on Oct. 1, allowing for a two-month transition period, and Hayward would stay on the BP board until the end of the year. The board expects to meet Monday and decide on the plan, the Journal reported, citing anonymous sources.
  • Goldman Faces FCIC Audit Over Derivatives: Report -- Goldman Sachs (GS) - Get Report is facing a threat by the Financial Crisis Inquiry Commission to bring in outside accountants to examine the bank's systems for data on its derivatives business, the panel's chairman told The Financial Times. The threat comes after Goldman's executives maintained they do not track trading revenue generated strictly from derivatives, the paper reports. "We have a deep level of questioning about whether we're getting the straight scoop here and whether Goldman is working with us on information that they surely have," FCIC Chairman Phil Angelides told the FT.
  • FedEx Ups First-Quarter Guidance -- FedEx (FDX) - Get Report raised its first-quarter earnings guidance to a range of $1.05 to $1.25 a share, up from its prior guidance range of 85 cents to $1.05 a share. Analysts are expecting first-quarter earnings of $1.01 a share. For the full year, FedEx now expects earnings of $4.60 to $5.20 a share, up from the previous guidance range $4.40 to $5.00 a share. FedEx said the new guidance reflects "the current market outlook for fuel prices and a continued moderate recovery in the global economy."
  • UAE Says BlackBerry a Security Risk -- The United Arab Emirates said that Research In Motion's (RIMM) BlackBerry handset operates beyond the jurisdiction of national legislation, as the device "immediately exports its data off-shore and is managed by a foreign, commercial organization. As a result of how Blackberry data is managed and stored, in their current form, certain Blackberry applications allow people to misuse the service, causing serious social, judicial and national security repercussions."
  • EU Begins Antitrust Probe Into IBM -- The European Commission has initiatedformal antitrust investigations againstIBM (IBM) - Get Report in two cases of alleged infringements. The EU alleges that IBM illegally ties its mainframe hardware products to its dominant mainframe operating system, which shuts out providers of emulation technology. In addition, the Commission said it "has concerns that IBM may have engaged in anti-competitive practices with a view to foreclosing the market for maintenance services."
  • Genzyme Could Have Other Suitors: Report -- Genzyme (GENZ) could have other potential suitors in addition to France's Sanofi-Aventis (SNY) - Get Report. The Wall Street Journal reports that GlaxoSmithKline (GSK) - Get Report and Johnson & Johnson (JNJ) - Get Report are seen as the other most logical suitors for Genzyme by bankers and analysts.

Monday's Earnings Roundup

  • Lorillard (LO) said it had second-quarter earnings of $1.73 a share on revenue of $1.04 billion, exceeding the Thomson Reuters average estimate for earnings of $1.61 a share on revenue of $1.01 billion. Shares of Lorillard were up 1.6% ahead of the start of Monday's trading session.
  • Enterprise Products (EPD) - Get Report posted a second-quarter profit of 46 cents a share on revenue of $7.54 billion, compared to the consensus target for earnings of 44 cents a share on revenue of $7.99 billion. The stock climbed 2.5% ahead of the opening bell.
  • FMC Technologies (FTI) - Get Report notched a second-quarter profit of 78 cents a share on revenue of $1.01 billion. That compares to the Thomson Reuters consensus estimate for earnings of 71 cents a share on revenue of $1.06 billion. Looking ahead, FMC reaffirmed its full-year earnings guidance range of $2.70 to $2.90 a share, which is in line with the Street's forecast. Shares were off 1.2% in early trading.
  • Alcon (ACL) will post quarterly results after the close of trading Monday. Analysts are looking for a profit of $2.03 a share on revenue of $1.83 billion, according to a survey by Thomson Reuters.

-- Written by Robert Holmes in Boston


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