Lehman Bros Exceeds Expectations

Elena
13 Sep, 2006
New York City

Lehman Brothers reported Q3 profit increase to $916 million, or $1.57 a share from $864 million, or $1.47 a share last year, supported by higher trading revenue. The company''s revenue in the quarter totaled $4.18 billion, compared to $3.85 billion. Company

[R]8:15AM Stock futures were mixed ahead of Lehman Bros earnings.[/R]
Stock market futures traded mixed Wednesday, with investors awaiting third-quarter earnings release by investment-banking giant Lehman Brothers. Lehman Brothers ((LEH)) is due to report Q3 earnings, following Goldman Sachs results announced Tuesday. Analysts expect Lehman to report net income of $1.49 a share.

Automaker Ford ((F)) will be another company in focus after reports it is planning to cut its white-collar costs by nearly a third. Hewlett-Packard ((HPQ)) is also expected to draw some attention as a California''s Attorney General said he had enough evidence for indictments inside and outside the company. Lehman Brothers upgraded the Gap Inc. ((GPS)) to overweight from equal-weight. The broker told clients that unless same-store sales improve, a management change could happen before the end of the contract of the present CEO. BP ((BP)) gained 0.7% in London on news that the company is close to a deal with the Department of Interior that would help resolve the agency''s worries about flawed Gulf of Mexico drilling leases. Dow Jones futures were recently down 10 points, S&P futures slipped 1.5 points, while Nasdaq futures climbed 2 points.


[R]7:30AM Asian markets close higher on chip-makers and property stocks.[/R]
Asian markets finished higher on Wednesday. The Nikkei 225 Average finished the day 0.2% higher at 15750.05. Stocks in Tokyo closed mixed as a strong showing amid the export-oriented technology sector failed to counter declines in commodity companies. Elpida Memory advanced 6.6%, and Sumco gained 5.2%. On the other hand, selling pressure on consumer finance stocks continued, as Takefuji lost 3.4% and Aiful sank 3.3%.

Hong Kong Hang Seng Index gained 0.79% to close at 17210.04. shares ended higher for the second straight session. HSBC closed 0.7% higher, and China Mobile rose 1.2%. South Korea Kospi Index advanced 0.38% to 1333.13. Hynix Semiconductor advanced 3.1% on the company positive fundamentals and stabilizing memory chip prices. Transport shares rose on a sustained fall in oil prices, as Hyundai Merchant Marine rose 0.9% and Asiana Airlines climbed 1.6%.

Taiwan gained 0.59% to 6664.87. Stocks tracked Wall Street, with food companies leading after Uni-President Enterprises was chosen as a sponsor of the 2008 Beijing Olympics. Australia S&P/ASX 200 closed 0.86% higher at 5017.20. The stock market reversed two days of heavy losses with share-price gains tempered by the outlook for the Chinese-driven commodity boom. BHP Billiton gained 1.6% and Rio Tinto advanced 1.4%. Shanghai Composite Index bucked the upward trend and lost0.4% to finish at 1689.39.


[R]6:30AM European stocks traded higher Wednesday, tracking U.S. markets[/R]
European markets were higher by mid-morning on Wednesday. The U.K. FTSE 100 index rose 0.1% to 5,902, the German DAX Xetra 30 index advanced 0.2% to 5,888 and the French CAC-40 index increased 0.2% to 5,134. BAE Systems gained 1% after it said that its first-half net income rose 28%. On the other hand, Safran, the aero engine and telecoms group, plunged 7.6% after first half proforma operating profits fell 35%.

Scania, the Swedish truck company, jumped 8.9% in the wake of confirming MAN AG, its German rival was likely to make a bid. The stock rose 9% on Tuesday. MAN added 2.8%. Investor rose 4.4% following the investment vehicle statement it was willing to sell its Scania stake. Mediaset, private broadcaster, fell 3.5% after it announced its Italian advertising sales target of 2-3% did not seem achievable.

Crude oil for October delivery fell 26 cents to $63.50 in electronic trading on the NYME in London. Gold for immediate delivery dropped $5.88, or 1%, to $581.57 an ounce in London. The euro was down slightly against the U.S. dollar Wednesday. In morning European trading the euro bought $1.2695, down from $1.2702 in New York on Tuesday. The British pound climbed slightly to $1.8748 from $1.8743 the day before, while the dollar rose to purchase 117.75 Japanese yen from 117.68 in New York.