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Stock Market – Pre Open Report June 2nd 2008

June 2, 2008 By Chuck

More banking sector shakeups…

Wachovia Bank (WB) BOARD ASKS CEO KEN THOMPSON TO STEP DOWN, APPOINTS CHAIRMAN LANTY SMITH INTERIM CEO
- Ben Jenkins, currently Vice Chairman and President of the General Bank, will serve as interim COO.

 

Bradford & Bingley (BB.UK) CONFIRMS RESTRUCTURED RIGHTS OFFERING
- Says TPG Capital to take a £179M stake and to become a major strategic investor owning 23% of the company
- Adds that a restructured rights issue will raise approximately £258M and to be issued at 55p a share
- Notes that difficult economic conditions have led to a decline in net interest margin and increasing arrears
-   A Restructured Rights Issue will raise approximately £258 million and, together with TPG”s investment, will raise additional capital of approximately £400 million, net of expenses. All shares will be issued at an offer price of 55 pence per share
-  Difficult economic conditions have led to a decline in net interest margin and increasing arrears. Underlying profits for the first four months of the year amounted to £56 million compared to £108 million in 2007. The trading update highlights a more cautious outlook for the year
- Steven Crawshaw has stepped down as Group Chief Executive with immediate effect as a result of serious illness. Chairman Rod Kent has become Executive Chairman
-  Rod Kent, Executive Chairman said:     "The last few weeks have been challenging for Bradford & Bingley, and this is a disappointing trading update reflecting a more difficult market environment.  I understand shareholders” disappointment. Nevertheless, I am delighted to welcome TPG as a major strategic investor in Bradford & Bingley.  With a strengthened capital base and the skills that TPG will bring I am sure we can develop the business to exploit the opportunities available in our markets in the medium term.

 

Futures have deteriorated in the overnight trading hours. At this time it looks like a lower open.

Economic Schedule (all times are US EST)

Monday

10:00am : May ISM Manufacturing Data (last 48.6)

12:20pm: Fed’s Lockhart to speak on the economy in Jacksonville

 

Earnings

Before the Open: AGYS.

After the Close: ABM, CMOS, GIII, LULU, NCS, TMRK, TMA.

 

Tuesday

9:00am: Fed Chairman Ben Bernanke speaks in Spain

10:00am: April Factory Orders (last 1.3%)

May vehicle sales data released throughout the day

 

Earnings

Before the Open: GMTN, HGG, LAYN, NOOF, SGK, TOL.

After the Close: BOBE, CPRT, DMND, GES, HOV, TUTR, SAI, SHRP.

 

Wednesday

7:30am May Challenger Job Cuts y/y (last 27.4%)

8:15am May ADP Employment Change (last 10K)

8:30am Final Q1 Nonfarm Productivity (last 2.2%), Q1 Unit Labor Costs (last 2.2%)

10:00am May ISM Non-Manufacturing Composite (last 52)

10:30am Crude Oil/Gasoline/Distillate Inventories

2:45pm: Fed Chairman Ben Bernanke speaks on economy in Boston

 

Earnings

Before the Open: AMWD, CONN, BRLC, VIP, VOL, WSM.

After the Close: ADCT, PSS, CMTL, DDMX, FCEL, GEF, MATK, QSII, NX.

 

Thursday

8:30am Initial Jobless Claims (last 372K), Continuing Claims (last 3.104M)

10:30am Natural Gas Inventories

12:00pm: Fed’s Plosser speaks on financial stability in New York

 

Earnings

Before the Open: ALOG, BRLI, BTH, CIEN, CRAI, DLM, FRPT, JTX, KFY, MDZ, MESA, PDC, RSTO, SFD, TSL, UTIW, MTN.

After the Close: CHP, CAE, COO, FMCN, HRLY, IUSA, NSM, OPTM, ZQK, SYMM, PAY.

 

Friday

8:30am May Change in Manufacturing Payrolls (last –46K), May Change in Nonfarm Payrolls (last –20K), May Average Hourly Earnings (last m/m 0.1%, y/y 3.4%), May Average Weekly Hours (last 33.7), May Unemployment Rate (last 5.0%)

8:45am: Fed’s Kroszner speaks on financial markets in Boston

10:00am April Wholesale Inventories (last –0.1%)

11:15am: Fed’s Evans speaks in Chicago

1:30pm: Fed’s Bullard speaks on housing in Wisconsin

3:00pm April Consumer Credit (last $15.3B)

 

Earnings

During Trading Hours: PNY

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