NEW YORK (
) -- Here are the top stock market headlines for the morning of Wednesday, June 16, 2010.
Wednesday's Early Headlines
- Fannie, Freddie to Delist from NYSE -- The Federal Housing Finance Agency (FHFA) has directed both Fannie Mae (FNM) and Freddie Mac (FRE) to delist from the New York Stock Exchange. Fannie and Freddie expect that the delisting of its common and preferred stock from the NYSE will be effective about July 8, when their stocks will move to the over-the-counter market.
- Housing Starts Drop; PPI Slides in May -- Housing starts tumbled 10% to 593,000 in May, below the 655,000 consensus of economists. Building permits fell 5.9% to 574,000, also well below economists' forecasts. Meanwhile, the producer price index was down 0.3% last month, compared with forecasts of a 0.5% decline. The core number, which excludes food and energy, rose 0.2%. Economists expected a 0.1% increase in May on the core number
- BP Confirms Obama Meeting Wednesday -- Ahead of a meeting Wednesday between BP (BP) - Get Report executives and President Obama, the oil company said in a statement it would discuss Obama's "proposal for arrangements to ensure that all legitimate claims in respect in the Gulf of Mexico oil spill are paid out in a fair and timely manner." Obama in a speech from the Oval Office Tuesday accused BP of "recklessness" and swore to make the company pay for the massive damage the oil spill has caused. Obama, in his meeting with BP Wednesday, said he would "inform" the company that it must set aside whatever resources are required to make whole all local residents and businesses hurt by the spill and to repair the ecological damage caused by the oil spill.
- Mortgage Applications, Rates On the Rise -- The Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, rose by a seasonally adjusted 17.7% last week, the first increase in a month. Refinancing applications jumped 21.1% from the prior week, while purchasing applications increased 7.3% compared with the previous week, the survey showed. The average 30-year fixed-rate mortgage rate inched higher to 4.82% last week from 4.81% the previous week, the MBA said.
- Mylan Reportedly Being Probed by SEC -- Mylan (MYL) - Get Report is being investigated by the Securities and Exchange Commission on whether it disclosed confidential information about its coming earnings to a group of handpicked investors, The Wall Street Journal reports. The SEC has contacted several investment banks whose analysts cover Mylan the generic drugmaker, asking about a meeting the company hosted last September with those analysts and a group of investors, the newspaper reports, citing people familiar with the matter. A day after the meeting, Mylan shares rose 7% on three times the previous month's average daily volume, the Journal reports.
Wednesday's Earnings Roundup
- FedEx (FDX) - Get Report said it had fourth-quarter earnings of $1.33 a share on revenue of $9.43 billion above the Thomson Reuters average estimate for a profit of $1.32 a share on revenue of $9.04 billion. However, FedEx offered weak earnings guidance for the full year, saying it expects to earn $4.40 to $5 a share for the year. Analysts are expecting a full-year profit of $5.05.
- Nokia (NOK) - Get Report lowered its second-quarter outlook for sales from its devices and services business, saying it expects net sales to be at the lower end or slightly below its previous expected range of €6.7 billion to €7.2 billion. Nokia cited lower than previously expected average selling prices. Nokia also said it expects adjusted operating margins for devices and services to be at the lower end, or slightly below, its 9% to 12% range.
-- Written by Robert Holmes in Boston
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