Jobs Number Hits Futures, Consumer Cos. Talk Price Hikes - Trader Talk with Bob Pisani

Trader Talk Video Gallery

NYSE Market Wrap

Bob Pisani reports on a soaring trading day from the NYSE

Market's Rebound

Discussing the market surge, with Alan Skrainka, Edward Jones, Robert Lloyd, AIM Summit Fund; and CNBC's Bob Pisani & Er...

NYSE Morning Preview

Bob Pisani reports on the trading day from the NYSE

NYSE Market Wrap

CNBC's Bob Pisani reports on the roller coaster day in the markets, live from the floor of the NYSE.

Chatting Markets

Discussing the volatile session, with CNBC's Bob Pisani, Sharon Epperson, Rick Santelli and the Power Lunch team.

NYSE Morning Preview

Bob Pisani reports on the trading day from the NYSE.

Assessing Market's Fall, Pt...

An outlook on the market's declines, with Bill Baldwin, Forbes; Michael Pento, Delta Global Avisors; Bob Reich, UC Berke...

Assessing Market's Fall, Pt...

Discussing the market's declines, with Bill Baldwin, Forbes; Michael Pento, Delta Global Avisors; Bob Reich, UC Berkeley...

More Videos

Stay up to date with the Trader Talk with Bob Pisani

We’ll send the latest posts directly to you.

Subscribe to this RSS feed

How to use RSS?

Text Size

Jan.31

9:20 AM ET

Jobs Number Hits Futures, Consumer Cos. Talk Price Hikes

Posted By:Bob Pisani

Topics:Earnings | Investment Strategy | Stock Market

Sectors:Oil and Gas

Futures dropped at 8:30 ET because jobless claims numbers higher than expected have somewhat hopes that the nonfarm payrolls report tomorrow will be stronger than expected.

There are two noteworthy trends from companies announcing earnings:

1) Once again, consumer companies have talked about higher costs and price increases. Today it was Colgate and Proctor & Gamble.

2) Both Ann Taylor [ANN Loading... () ] and Starbucks [SBUX Loading... () ] have talked this morning about limiting store growth in response to the slower economy. Starbucks CEO Howard Schultz said "the consumer is in a recession."

On earnings:

1) Colgate [CL Loading... () ] beat, and announced a repurchase of 30 m shares. Note that Colgate generates less than 20 percent of its sales in North America. Their global market shares of key products like toothpaste, soap, and toothbrushes are all at record highs.
2) P&G [PG Loading... () ] beat by a penny and confirmed they were splitting off their Folgers business. Their guidance for the current quarter is just a tad below analyst expectations.
3) Like Centex [CTX Loading... () ], Pulte Homes [PHM Loading... () ] recorded a huge loss of $3.54, much greater than the loss of $0.76 expected. Like Centex, the bigger than expected mix was related to land-related impairment charges. Their guidance for the quarter is a loss of $0.15 to a loss of $0.30, analyst estimate is loss of $0.33.
4) What's up with the oil service stocks? First, Smith International [SII Loading... () ], then Baker Hughes[BHI Loading... () ] , now Cooper Cameron [CAM Loading... () ] is getting hammered on disappointing guidance. Down 7 percent pre-open.
Street estimates seem overly optimistic.
5) Aerospace giant Goodrich [GR Loading... () ] beat and talked about "steady growth" in aerospace, and reaffirmed 2008 guidance of $4.15-$4.30, though that is below analyst expectations of $4.33 (Reuters). They also note that Boeing's delay in the 787 would not have a material impact on earnings in 2008 or 2009.
6) Buried in the William Ackman letter so critical of Ambac [ABK Loading... () ] and MBIA [MBI Loading... () ] was an interesting argument for eliminating the purpose of the bond insurers altogether, that is, to try to create what he calls "Open Source Research" where "all market participants can have equal access to the primary source data and construct their own views of losses without reliance on the analytical judgment of rating agencies or the bond insurance industry."