Wal-Mart (WMT) -7.49%
Wal-Mart shares weighed on sentiment after the retailing giant cut profit guidance and reported lower than expected December same-store sales. The company said the difficult economy and severe winter weather in some regions hampered the holiday seasons at Wal-mart Stores, with softness in apparel and jewelry. Looking ahead, Wal-Mart said customers are focused on “value and necessities” and it expects same-store sales to be flat to up two percent.
Peabody Energy (BTU) +4.71%
Peabody announced it is cutting its expected 2009 production targets in response to the current weak U.S. thermal and global steel markets. To address excessive inventories in the Power River Basin (PRB), Peabody plans to reduce targeted 2009 PRB output by 10 million tons (approximately five percent of their total U.S. output). Following the cuts, Peabody’s U.S. production is essentially fully priced.
To address weak global steel demand, Peabody plans to reduce targeted Australian metallurgical coal (coal used in the steelmaking process) production by two million tons (approximately 20 percent of Peabody’s Australian metallurgical coal production).
EMC Corp (EMC) +6.35%
Data storage company EMC reaffirmed its fourth quarter earnings and revenue guidance and announced a program to cut costs. As part of its restructuring program, EMC plans to cut 2,400 jobs, or about seven percent of its workforce. EMC expects the program to reduce costs from its 2008 annualized rate by approximately $350 million in 2009, increasing to approximately $500 million in 2010.
Quick Hits
- Credit Downgrade Hits Bank of America’s Debt, Equity
- Citigroup Supports Letting Bankruptcy Courts Reset Mortgages
Peter Lazaroff, Junior Analyst
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