Markets Tumble
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Citigroup (C) -23.44%
C said in order to wind-down Citi-advised structured investment vehicles (SIVs), it has committed to acquire the remaining assets of the SIVs at their current fair value, which is estimated to be $17.4 billion, net of cash. Citi said it will be a nearly cashless transaction.
Other banks also dropped in anticipation that they will follow suit. JPMorgan Chase & Co. (JPM) fell 11.42 percent and Bank of America (BAC) retreated 14.02 percent.
St. Jude Medical (STJ) -9.03%
Medtronic’s (MDT) results yesterday showed that the U.S. ICD market was underperforming. According to MDT, the primary implant market was flat to declining. This is not good for the ICD market.
MDT also said replacement contributions were lessening. MDT felt an impact from Boston Scientific’s (BSX) new product launch and to the extent BSX is successful in gaining share, STJ will be less successful.
In a sluggish ICD market, market share becomes more central to STJ’s growth strategy. Without a robust ICD business, STJ earnings outlook certainly weakens.
Boeing (BA) -5.26%
The Wall Street Journal reports that BA is reworking its entire production schedule as it recovers from a machinist strike. BA is adding as much as ten weeks to the original delivery date of more than 3,700 jetliners making up the company’s order backlog. The report stated Boeing already decided against trying to step up production due to concern that such a move could actually have consequences.
BA also announced that their defense unit plays to cut 800 jobs because it didn’t have enough orders for aerial refueling tankers.
Procter & Gamble (PG) -3.08%
PG and leading Internet search engine Google (GOOG) are swapping employees to collaborate on a advertising efforts, according to today’s Wall Street Journal.
Peter Lazaroff, Junior Analyst
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