<TABLE cellSpacing=0 cellPadding=2 width="100%" bgColor=white border=0 xmlns:msxsl="urn:schemas-microsoft-com:xslt" xmlns:js="http://cbs.markewatch.com/xsl"><TBODY><TR><TD width="100%">The S&P 500 tracker (SPY: news, chart, profile) weakened 0.3% and the Nasdaq 100 tracker (QQQQ: news, chart, profile) eased 0.3% in pre-open moves.
The dollar was weaker against the euro and yen ahead of the release of minutes from the last Federal Open Market Committee meeting.
July-dated crude oil futures rose 10 cents to $49.26 a barrel in electronic trade.
The Organization for Economic Cooperation and Development trimmed its 2005 GDP forecast for its 30 members to 2.6% for 2005 from a previous forecast of 2.9%, and lowered its 2006 view to 2.8% from 3.1%.
The OECD upped its 2005 U.S. forecast to 3.6% from 3.3% but lowered its 2006 forecast to 3.3% from 3.6%. It slashed U.K., French, German and Japanese forecasts, however, for both years.
In other data, the closely watched ZEW indicator for German economic sentiment tumbled unexpectedly in May, while French household spending in April came in stronger than forecast.
Focus stocks
Scottish Power PLC (SPI: news, chart, profile) agreed to sell its PacifiCorp unit for $5.1 billion in cash and $4.3 billion in assumed debt to MidAmerican Energy, a holding of Warren Buffett's Berkshire Hathaway (BRK.A: news, chart, profile) (BRK.B: news, chart, profile) . Scottish Power shares jumped 6% on plans to return $4.5 billion of that to shareholders. See story.
Vodafone Group (VOD: news, chart, profile) fell over 4% in London after revising its margins and sales targets slightly lower. The mobile giant also said it'd buy back $8.2 billion in shares and double its dividend. See story.
Boeing Co. (BA: news, chart, profile) officially launched its 777 freighter, the world's largest twin-engine freighter, following the completion of a launch order from Air France. The carrier ordered five 777 freighters, with options for three additional airplanes, to replace its 747-200F fleet. The first 777 Freighter is scheduled for delivery to Air France in the fourth quarter of 2008. The aircraft will be capable of flying 4,965 nautical miles (9,195 kilometers) with a full payload and market-preferred cargo load density, making it the world's longest-range freighter.
Roche Holding (RHHDY: news, chart, profile) shares rose 2.7% in Switzerland as Genentech (DNA: news, chart, profile) said late Monday that its Lucentis drug improved vision. Roche holds a majority stake in Genentech.
Eyetech Pharmaceuticals (EYET: news, chart, profile) was hammered 37.4% on concerns over the competitive hit from the Genetech drug.
JDS Uniphase Corp. (JDSU: news, chart, profile) climbed over 5% on its $760 million acquisition of Acterna. Citigroup Smith Barney upgraded JDS shares to hold, telling clients it believes the deal will improve JDS Uniphase's fiscal 2006 revenue by $476 million to $1.2 billion and earnings per share to break even from a previously forecast loss of three cents a share.
Retailers were the focus of a limited earnings calendar.
Retailer Williams-Sonoma Inc. (WSM: news, chart, profile) said first-quarter profit rose 22% to $26.2 million, or 22 cents a share, from $21.4 million, or 18 cents, in the year-ago period. Earnings surpassed analysts' average estimate by 3 cents a share, according to Thomson First Call, though a penny of the outperformance came from an unexpected shift in fulfillments from the second quarter to the first. Revenue climbed 12% to $720.7 million from $640.9 million in last year's first quarter. Williams-Sonoma also increased its stock repurchase program by up to 2 million shares.
Dillard's Inc. (DDS: news, chart, profile) first quarter net income of $38 million, or 46 cents a share compared with $53.8 million, or 64 cents a share in the same quarter a year ago. Earnings include a 4 cent a share charge for store closings. Sales for the quarter ended April 30 slipped 3% to $1.8 billion. The Thomson First Call average estimate was for earnings of 53 cents a share on revenue of $1.9 billion. Same-store sales in the first quarter fell 3%.
Perry Ellis International (PERY: news, chart, profile) reported fiscal first-quarter earnings of $8.9 million, or 89 cents a share, vs. $8.2 million, or 89 cents a share in the year-earlier period, and above the average analyst estimate compiled by Thomson First Call of 83 cents a share. Revenue rose 14% to $225.6 million from last year's $197.4 million, but missed analyst forecasts of $246.7 million. The apparel designer confirmed its fiscal 2006 estimates for earnings of $2.25 to $2.35 a share and for revenue of $890 million to $910 million.
Broker notes
Shares of TiVo Inc. (TIVO: news, chart, profile) rallied 12.5% to $6.30 a share in Instinet pre-open trading. First Albany started research coverage of the digital video recorder maker with a strong buy rating and a $16 stock price target. Analyst Richard Baldry believes the company can become profitable "at will" when it decides to abandon its hardware subsidization strategy.
Deutsche Bank upgraded Web-based retailer Shopping.com Ltd. (SHOP: news, chart, profile) to hold from sell, saying that the current multiples reflect the market's concerns regarding traffic, growth prospects, reinvestment vs. margin expansion and competition. The broker told clients that operating margin expansion may be limited in the near term as the company invests in international expansion. "
</TD></TR><TR><TD>
Steve Goldstein is a reporter for MarketWatch in London</TD></TR></TBODY></TABLE>
The dollar was weaker against the euro and yen ahead of the release of minutes from the last Federal Open Market Committee meeting.
July-dated crude oil futures rose 10 cents to $49.26 a barrel in electronic trade.
The Organization for Economic Cooperation and Development trimmed its 2005 GDP forecast for its 30 members to 2.6% for 2005 from a previous forecast of 2.9%, and lowered its 2006 view to 2.8% from 3.1%.
The OECD upped its 2005 U.S. forecast to 3.6% from 3.3% but lowered its 2006 forecast to 3.3% from 3.6%. It slashed U.K., French, German and Japanese forecasts, however, for both years.
In other data, the closely watched ZEW indicator for German economic sentiment tumbled unexpectedly in May, while French household spending in April came in stronger than forecast.
Focus stocks
Scottish Power PLC (SPI: news, chart, profile) agreed to sell its PacifiCorp unit for $5.1 billion in cash and $4.3 billion in assumed debt to MidAmerican Energy, a holding of Warren Buffett's Berkshire Hathaway (BRK.A: news, chart, profile) (BRK.B: news, chart, profile) . Scottish Power shares jumped 6% on plans to return $4.5 billion of that to shareholders. See story.
Vodafone Group (VOD: news, chart, profile) fell over 4% in London after revising its margins and sales targets slightly lower. The mobile giant also said it'd buy back $8.2 billion in shares and double its dividend. See story.
Boeing Co. (BA: news, chart, profile) officially launched its 777 freighter, the world's largest twin-engine freighter, following the completion of a launch order from Air France. The carrier ordered five 777 freighters, with options for three additional airplanes, to replace its 747-200F fleet. The first 777 Freighter is scheduled for delivery to Air France in the fourth quarter of 2008. The aircraft will be capable of flying 4,965 nautical miles (9,195 kilometers) with a full payload and market-preferred cargo load density, making it the world's longest-range freighter.
Roche Holding (RHHDY: news, chart, profile) shares rose 2.7% in Switzerland as Genentech (DNA: news, chart, profile) said late Monday that its Lucentis drug improved vision. Roche holds a majority stake in Genentech.
Eyetech Pharmaceuticals (EYET: news, chart, profile) was hammered 37.4% on concerns over the competitive hit from the Genetech drug.
JDS Uniphase Corp. (JDSU: news, chart, profile) climbed over 5% on its $760 million acquisition of Acterna. Citigroup Smith Barney upgraded JDS shares to hold, telling clients it believes the deal will improve JDS Uniphase's fiscal 2006 revenue by $476 million to $1.2 billion and earnings per share to break even from a previously forecast loss of three cents a share.
Retailers were the focus of a limited earnings calendar.
Retailer Williams-Sonoma Inc. (WSM: news, chart, profile) said first-quarter profit rose 22% to $26.2 million, or 22 cents a share, from $21.4 million, or 18 cents, in the year-ago period. Earnings surpassed analysts' average estimate by 3 cents a share, according to Thomson First Call, though a penny of the outperformance came from an unexpected shift in fulfillments from the second quarter to the first. Revenue climbed 12% to $720.7 million from $640.9 million in last year's first quarter. Williams-Sonoma also increased its stock repurchase program by up to 2 million shares.
Dillard's Inc. (DDS: news, chart, profile) first quarter net income of $38 million, or 46 cents a share compared with $53.8 million, or 64 cents a share in the same quarter a year ago. Earnings include a 4 cent a share charge for store closings. Sales for the quarter ended April 30 slipped 3% to $1.8 billion. The Thomson First Call average estimate was for earnings of 53 cents a share on revenue of $1.9 billion. Same-store sales in the first quarter fell 3%.
Perry Ellis International (PERY: news, chart, profile) reported fiscal first-quarter earnings of $8.9 million, or 89 cents a share, vs. $8.2 million, or 89 cents a share in the year-earlier period, and above the average analyst estimate compiled by Thomson First Call of 83 cents a share. Revenue rose 14% to $225.6 million from last year's $197.4 million, but missed analyst forecasts of $246.7 million. The apparel designer confirmed its fiscal 2006 estimates for earnings of $2.25 to $2.35 a share and for revenue of $890 million to $910 million.
Broker notes
Shares of TiVo Inc. (TIVO: news, chart, profile) rallied 12.5% to $6.30 a share in Instinet pre-open trading. First Albany started research coverage of the digital video recorder maker with a strong buy rating and a $16 stock price target. Analyst Richard Baldry believes the company can become profitable "at will" when it decides to abandon its hardware subsidization strategy.
Deutsche Bank upgraded Web-based retailer Shopping.com Ltd. (SHOP: news, chart, profile) to hold from sell, saying that the current multiples reflect the market's concerns regarding traffic, growth prospects, reinvestment vs. margin expansion and competition. The broker told clients that operating margin expansion may be limited in the near term as the company invests in international expansion. "
</TD></TR><TR><TD>
Steve Goldstein is a reporter for MarketWatch in London</TD></TR></TBODY></TABLE>
