A day after Warren Buffett's historic wager on the freight industry, shares of the trucking company Con-Way fell as much as 10% on worse-than-expected results and wary statements from its CEO about the company's prospects for growth, at least in the near term.
After Tuesday's closing bell, Con-Way reported a third-quarter profit -- excluding the effects of accounting changes and "certain discrete tax items" -- of 39 cents a share. That still fell far short of the consensus analysts' earnings target of 52 cents But it was Con-Way's chief executive, Douglas Stotlar, who dampened the mood even further with a gloomy outlook for the short-term business prospects of his company. "Overall, the business environment continues to present formidable challenges, characterized by weak demand, excess capacity and pricing pressure," Stotlar said in a written statement. "We expect these conditions to persist in the near term, diminishing the prospects for earnings growth." Con-Way Gives Dour View; Street Returns It | Earnings | Financial Articles & Investing News | TheStreet.com Con-way Inc. Q3 2009 Earnings Conference Call -- Seeking Alpha
S&P: Distressed Debt Exchanges May Not Boost Credit Profile
Convincing debt holders to swap holdings that are in danger of default for bonds of lesser value has become an increasingly attractive option for some hard-pressed companies. “As long as capital markets remain open, we believe that some issuers will consider this option,” according to Diane Vazza, managing director of Standard & Poor’s Global Fixed Income Research Group. “Yet, it’s important to understand that, after a distressed debt exchange, many companies won’t necessarily present a stronger credit profile.,” she wrote in a Q&A on the speculative grade sector.
A distressed debt exchange might help some issuers ward off bankruptcy, but it could still leave them exposed to significant risk if the increasing liquidity within the system that has supported them so far were to dry up. S&P: Distressed Debt Exchanges May Not Boost Credit Profile -- Seeking Alpha
Trucking Spot Market Up 10 Percent in October
TransCore Freight Index jumps year-over-year, but dips from September
Freight volume in trucking’s spot market rose 10 percent in October, said TransCore, which reported the first year-over-year increase this year in the TransCore Freight Index.
But the sudden rise reflects the depth of the collapse last fall more than an economy recovering strength. The TFI declined 2.3 percent from September to October after rising 10.5 percent from August to September. ATA’s For-Hire Truck Tonnage Index in September showed a similar pattern, dipping 0.3 percent after increasing 1.2 percent in August and July. That could indicate an uneven road to recovery. The index, which uses August 1996 as its base, hit its low point this year in February, at 239. Its highest point in the past four years was June 2006, when it hit 1215. Trucking Spot Market Up 10 Percent in October | Journal of Commerce
Shippers Appeal to NY, Newark on Harbor Truckers
Letter says change in federal law not needed as part of port clean trucks plans
A broad group of retailers and other shippers called on the mayors of New York and Newark, N.J., to withdraw their support for changes in federal law that would allow local regulators to bar independent owner-operators from harbor trucking.
The 29 organizations, including the National Retail Federation and the National Industrial Transportation League, said they had “grave disappointment” with support the mayors announced Oct. 19 for the effort led by the Port of Los Angeles, which has targeted independent operators as part of its effort to limit truck pollution at the port.
Writing to New York City Mayor Michael Bloomberg and Newark Mayor Cory Booker, the groups noted legal challenges to the Los Angeles regulations have been aimed only at provisions focused on economic regulation and not those touching on emissions and the environment Shippers Appeal to NY, Newark on Harbor Truckers | Journal of Commerce
Heavy truck sales surged in October, rising 117 percent year-over-year and 104 percent from September, as freight volumes showed signs of improving and carriers began a last-minute round of truck purchasing before new emissions standards raise prices.
Preliminary data from FTR Associates shows Class 8 net orders for all major North American truck makers totaled 21,792 units in October. That led the vehicle market research firm to declare “the recovery has begun,” but to warn the truck manufacturing industry has a long, slow haul ahead, at least until the second half of 2010. “All indications are that the October increase is due to filling up of remaining 2009 production slots for trucks with the older 2007 engine technology and to avoid the new 2010 engines, which due to tighter emissions standards will be more expensive and will employ new technology,” said Eric Starks, president of FTR Associates. Heavy Truck Sales Surge in October | Journal of Commerce
Quality Distribution Swings to Profit
Leaner, more efficient company remains cautious on economy
After losing $143.2 million in the second quarter, Quality returned to profit in the third quarter and improved upon last year’s third quarter profit.
The Tampa, Fla.-based bulk carrier earned net income of $1.4 million in the third quarter, compared with a profit of $717,000 a year earlier. Last year’s net was slashed by a $1.7 million restructuring charge. This year, Quality’s third quarter included a $300,000 pre-tax restructuring charge.
Revenue excluding fuel surcharge was down 13.5 percent year-over-year to $147.2 million, reflecting continued pressure from the current economic environment, the company said. But that figure was up approximately 7 percent from the second quarter. Quality Distribution Swings to Profit | Journal of Commerce
Former SmartWay Head Kicks Off a New Venture in Truck Aerodynamics
There have been many contributions to the improvement of truck and trailer aerodynamics - and therefore fuel efficiency - over the last few years, both from truck manufacturers and from add-on devices. Many of these advanced technologies are approved by the Environmental Protection Agency's SmartWay program, including ATDynamics' TrailerTail, Windyne's Flex Fairing and Carrier Transicold's Freight Wing Belly Fairing. However, current advances have not fully captured the imagination of the trucking industry, and there is still room for improvement, says Mitch Greenberg. And who better to take truck aerodynamics to the next level but Greenberg himself, who resigned as head of the EPA's SmartWay program a few months ago. TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
Stocks ended mixed Wednesday as a post-Fed rally fizzled. Stocks had opened higher as investors cheered some encouraging readings on the economy, then swung in about a 50 point range after the Fed's statement, before finishing narrowly mixed.
The Dow Jones Industrial Average gained 30.23, or 0.3 percent, to close at 9,802.14, after being up more than 130 points earlier. The S&P 500 rose 0.1 percent, while the Nasdaq shed about 0.1 percent. Stocks End Mixed as Post-Fed Rally Fizzles - Market Overview * US * News * Story - CNBC.com
Fed to Maintain Low Rates Even as Economy Recovers
The U.S. Federal Reserve Wednesday expressed growing confidence that an economic recovery was building, even though it stuck to its commitment to keep borrowing costs near zero for "an extended period."
As expected, the Fed kept its benchmark federal funds rate unchanged in a range of zero to 0.25 percent, and said the economy had "continued to pick up" since its last policy-setting meeting in September. In its closely watched policy statement, the Fed said household spending "appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit."
That was somewhat more upbeat than September's statement, which referred to spending as "stabilizing." Fed to Keep Interest Rates Low Even as US Economy Recovers - Economy * US * News * Story - CNBC.com
Why the Dollar's Decline Doesn't Worry US Officials—Yet
While US officials publicly support a strong dollar, in private they don't appear so worried about its recent slide.
I've had a chance to speak with several senior US and foreign financial officials over the past several days about the dollar's decline. Though they work in different branches of government, their commentary has been pretty similar: They do watch the dollar carefully but they see its decline so far as orderly and not yet an inflationary threat. Why US Officials Aren't Worried About Dollar's Fall—Yet - Economy * US * News * Story - CNBC.com
Nervous About US Stocks? Check Out Emerging Markets
As more nervousness creeps into the US stock market, investors are sharpening their look at overseas opportunities where growth is outpacing the US recovery. While emerging and developed markets have largely kept pace with the US rally over the past seven months, there's growing belief that the two may diverge as the US faces an extended slow-growth period. Consequently, advisors are making sure their clients are committing at least 20 percent of their portfolios to foreign markets, with about a quarter of that devoted to emerging markets. Nervous About US Stocks? Time To Check Emerging Markets - Markets * US * News * Story - CNBC.com
Do You Buy Marchionne's Turnaround Plan?
As I sit through a lengthy explanation of how Sergio Marchionne plans to turn around a struggling Chrysler, one question keeps running through my mind: Do we think this plan will work?
There are many aspects of the strategy that make complete sense on paper.
* Chrysler will share platforms with Fiat and by 2014 reduce 11 platforms to 7. A huge cost savings.
* Using a Fiat platform, Dodge will introduce a small car by 2013. That's in addition to Dodge adding a compact sedan in 2012 and a model to replace the Avenger in 2013. Dodge desperately needs new, smaller, fuel-efficient models.
* Jeep will be adding a small SUV in 2013 as well as two other new models that year. Jeep, which currently builds just fewer than 500,000 vehicles, is targeting a major increase in production to 800,000 vehicles by 2014. Do You Buy Marchionne's Turnaround Plan? - Behind the Wheel with Phil Lebeau - CNBC.com
Stocks and Voters Show GOP the Way
Stocks loved last night’s election returns.
President Obama and Nancy Pelosi got their ears pounded back over big spending, taxes, the health-care takeover, cap-and-trade, and well, the fact that government is getting too darned big under this crowd in Washington. The health-care insurance companies roared right up from the open.
Investors are making a bet that the government-insurance option is in even bigger trouble after last night’s Republican victories. A Wall Street Journal news story also suggests that the big health-care bill won’t get done this year, and that it will be pushed into next year’s midterm calendar. Blue Dogs everywhere (and especially in Virginia) can read the election returns as accurately as any pundit. And they are not going to vote to jack up taxes, slash Medicare, and launch even more government spending and deficits. Stocks and Voters Show GOP the Way - Money and Politics Blog - CNBC.com
Discounting seen as diluting benefits of additional tonnage gains
Less-than-truckload carrier Con-way says it moved toward "more aggressive" price discounting in the third quarter than it normally uses and started hiring back workers to cope with tonnage gains.
The declining yields and rising costs cut in the benefits of a 5.1 percent gain in tonnage in the third quarter over the same period a year ago.
Con-way Freight reported a sequential 11.9 percent increase in daily tonnage from the second quarter, along with the improvement over last year.
The nation’s third-largest LTL carrier — which went through layoffs and salary and wage cuts early this year — said it brought back an unspecified number of workers to keep up with the sudden surge in demand. It also plans to restore about $25 million in wage and salary cuts by January. Revenue at Con-way Freight dropped 14.1 percent from a year ago, operating income decreased 62.7 percent and yield was down 10.5 percent, excluding fuel surcharges. Including fuel surcharges, revenue per hundredweight was down 19.4 percent, a steeper decline than was seen at ABF Freight System, FedEx Freight or YRC.
“Profitability was diminished from lower pricing driven by overcapacity in the LTL market, and higher variable operating costs due to increased tonnage levels,” the company said in its Security and Exchange Commission filing. Con-way Says Used ‘Aggressive’ Pricing | Journal of Commerce
UPS, Boys & Girls Clubs of America Unveil New Paint Scheme for David Ragan's No. 6 Ford Fusion
New Design Reflects UPS Safe Driving Program Available to Local Boys & Girls Club Teens
NASCAR driver David Ragan and the UPS (NYSE:UPS - News) team will have an extra 4.5 million fans cheering them this weekend at Texas Motor Speedway when Ragan gets behind the wheel of his No. 6 Ford Fusion, which will sport a new paint scheme that reflects UPS and Boys & Girls Clubs of America’s (BGCA) UPS Road Code safe driving program. The UPS Foundation, the charitable arm of UPS, introduced a national program this year in collaboration with BGCA to teach the company’s industry-leading safe driving techniques to teens. Motor vehicle accidents are the leading cause of death for U.S. teens, but UPS and its world-renowned drivers are making an effort to change that with the help of BGCA and Ragan. UPS, Boys & Girls Clubs of America Unveil New Paint Scheme for David Ragan's No. 6 Ford Fusion - Yahoo! Finance
Hunt, NS Ink Intermodal Deal
Trucking and intermodal shipment operator J. B. Hunt Transport Services will ship goods through Norfolk Southern Railway under a far-reaching, multi-year contract agreement between the two transportation giants.
Hunt said the accord “will further establish the parties as the leading providers of transcontinental and local intermodal service in the eastern half of the United States.” Hunt already has a long-term contract with BNSF Railway in the West, and is the largest box customer for that largest of intermodal railroads.
Once known strictly as a truckload carrier, J.B. Hunt now gets the largest share of its revenue and operating profit from intermodal operations. Its intermodal business segment counted $456 million in revenue in the third quarter ending Sept. 30, more than half the $834 million in revenue the company reported. Hunt, NS Ink Intermodal Deal | Journal of Commerce
Deutsche Post DHL Lost $123 Million
Express unit earns profit after restructuring charges; forecast improves
Deutsche Post DHL lost $123 million in the third quarter, reflecting costs involved in DHL's exit from the U.S. domestic parcel delivery market and the bankruptcy of a major customer, German retailer Arcandor.
Revenue fell 18.6 percent to $16.5 billion, and third quarter operating income fell to $340 million from $1.4 billion a year ago. Those results beat expectations and allowed the world's biggest logistics company to raise its profit forecast for the full year. The German mail and express delivery group said it now expects earnings before interest and tax to reach at least $2 billion this year against a previously forecast $1.76 billion as cost cuts counter slumping cargo volume. Deutsche Post DHL Lost $123 Million | Journal of Commerce
Fleets Aren't Keen on Buying Equipment in 4Q
CK Commercial Vehicle Research's fourth quarter Fleet Sentiment Report indicates that equipment buying is expected to drop in the next three months, despite higher readings in the last few quarters. The Fleet Equipment Buying Index fell 23 percent from the previous quarter, a reflection of the low numbers of respondents with plans to place orders for new trailers.
The research returned the smallest percentage of fleets with plans to buy trailers in the fourth quarter than any other period in the six years CKCVR has collected the data. Twenty-one percent of those surveyed has plans to purchase trailers in the next three months, according to the report. The index is a simple measure of planned buying behavior of for-hire, private and government fleets over the next three months. A lower reading indicates that fewer fleets are planning to purchase equipment while a higher reading indicates that more are planning to purchase equipment. TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
Wabash National’s 3Q Operating Loss Narrows
Trailer manufacturer Wabash National Corp. said its third-quarter loss widened but its operating loss declined from the same quarter last year.
The company lost $66.4 million, or $2.23 cents a share, in the third quarter, compared with a loss of $4.3 million, or 15 cents, in last year’s third quarter. “Total manufacturing inventories appear to be bottoming and both tonnage and net trailer orders are incrementally increasing,” he said in a statement. “While the operating environment will likely remain challenging for the near-term, we believe the worst is now behind us.” Wabash National’s 3Q Operating Loss Narrows | Transport Topics Online | Trucking, Freight Transportation and Logistics News
Stocks rallied Thursday after a strong reading on productivity and an easing in jobless claims — an encouraging sign ahead of tomorrow's jobs report.
The Dow Jones Industrial Average shot up 203.82, or 2.1 percent, to close at 10,005.96 — the first time the index has finished above 10,000 since Oct. 22. All 30 Dow stocks finished higher.
Techs were among the best performers after Cisco posted strong results after the bell Wednesday. Dow Ends Above 10,000; Cisco Boosts Techs - Market Overview * US * News * Story - CNBC.com
Art Cashin: What Jobless Numbers Tell Traders
Cashin noted that the jobless claims number of 512,000 was "better than some rumors late yesterday" — rumors which he says dragged markets down before the close.
But he's refraining from popping champagne corks "as long as [claims] stay above 500,000. They're not going to start hiring until they stop firing."
Cashin addressed the Federal Reserve's Wednesday announcement that it'll hold interest rates steady for months to come. CNBC Stock Blog — Art Cashin on Interest Rates, Fed, Inflation, Jobless Claims — CNBC.com Market News - CNBC Stock Blog - CNBC.com
This Bear-Market Rally Has 'Turned': Elliot Wave Analyst
Markets opened higher on Thursday as a strong reading on productivity and an easing in jobless claims helped cheer investors. Will stocks continue to rise from this point? Steve Hochberg, chief market analyst at Elliott Wave International, shared his market outlook. “This has been a bear-market rally,” Hochberg told CNBC.
“It’s been a great rally in terms of percentage gain over a short period of time, but everything we look at in terms of the internals of the market suggests that it’s just a bear-market rally.”
Hochberg said the number of advancing shares versus declining shares has been “contracting on the way up” and the advancing volume on the NYSE has been in a “typical bear market profile”—contracting as the rally extended. CNBC Stock Blog — Bear-Market Rally Has 'Turned Over': Elliot Wave's Hochberg — CNBC.com Investing News - CNBC Stock Blog - CNBC.com
Boomers in Denial About Retirement Savings
No doubt last year’s financial crisis dealt a body blow to many investors, but many Boomers approaching retirement have yet to turn their reaction to last year’s events into action. Perhaps even more startling is the extent to which their savings are falling short of their goals. On average, these pre-retirees expected they would need $800,000 to fund their retirement. However, most had only saved about $300,000. Boomers in Denial About Retirement Savings - Consumer Nation - CNBC.com
Inflatable Seat Belts Aimed At Second Row Safety
After 10 years of research and development, Ford is unveiling inflatable seat belts.
This is a potentially ground breaking innovation in safety aimed at better protecting people in the second and third rows of cars involved in accidents. Inflatable seat belts, before they've been deployed, look like padded regular seat belts. When there is an accident, the belts open up and in less than 2 tenths of a second an air bag inflates, diffusing pressure on the chest as the passenger is thrown forward in a crash. Inflatable Seat Belts Aimed At Second Row Safety - Behind the Wheel with Phil Lebeau - CNBC.com
A Short-Sighted Cheer for Easy Money
Wall Street loves easy money. That’s what I conclude from today’s 200-point stock market rally, which started early and gathered force, pushing the Dow back over 10,000 at the close of trading. Oddly enough, stocks roared at yesterday’s opening by nearly 150 points, a response to the GOP sweep in New Jersey and Virginia. The government’s health-insurance takeover plan looks dead after the elections. Nancy Pelosi is walking off a cliff with her Saturday vote in the House. I don’t think she’s got the numbers. Post-election, Blue Dog Democrats are going to have a hard time voting for big tax hikes, big spending, big government, and a $500 billion Medicare cut. Independents, seniors, and affluent suburbanites all moved to the GOP column on Tuesday, a negative referendum on the Democrats’ big-government scheme. A Short-Sighted Cheer for Easy Money - Money and Politics Blog - CNBC.com
Tom Pauken, chairman of the Texas Workforce Commission, called on Congress to refocus its attention on stemming job losses in light of escalating national unemployment rates, which have reached 10.2 percent.
Pauken said in a statement issued Friday he would like Congress to focus on passing legislation that encourages job creation and capital investment in the private sector, specifically with small businesses. Pauken supported legislation suggested by FedEx Chairman Fred Smith that would allow companies that make capital investments in the United States to expense those investments in a one-year period during times of high unemployment. He also suggested that Congress reinstate an investment-tax credit law repealed in 1986 that allows for accelerated depreciation for capital investments in the United States. TWC chair: Congress should focus on jobs - Dallas Business Journal:
FedEx Honors Independent Contractors With Entrepreneur Awards
FedEx Ground has honored three independent contractors with its Entrepreneur of the Year Award, including Nick Ciardiello of Metuchen, N.J., Jason Keefe of Summerville, S.C., and Trent Webb of Memphis, Tenn. The three businesses provide package delivery services for the company.
The FedEx Ground Entrepreneur of the Year honor recognizes those independent contractors who have built businesses that most consistently go the extra mile to safely deliver superior customer service, help fellow independent contractors succeed, and support their local communities. "For nearly a quarter century, FedEx Ground has worked in collaboration with thousands of dedicated small business owners to deliver exceptional service to the marketplace," said Dave Rebholz, president and CEO of FedEx Ground. "These entrepreneurial men and women commit themselves to creating small businesses that deliver on a promise of reliable, cost-effective and professional service. Through their outstanding efforts they have built thriving businesses and, in the process, have made substantial contributions to their local communities." TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
UPS Marks 10th Birthday as a Public Company
Ten years after its Initial Public Offering, UPS (NYSE:UPS - News) marked the anniversary today as its chief executive officer returned to the Big Apple to ring the opening bell for the New York Stock Exchange. Chairman and CEO Scott Davis was joined by members of the UPS Board of Directors and senior executives in launching the trading day on Friday. Davis is the 10th chairman and CEO in UPS’s 102-year history but only the third to spend time guiding the affairs of a “public” UPS. UPS Marks 10th Birthday as a Public Company - Yahoo! Finance
Senate Confirms Ferro as FMCSA Chief
Former trucking association leader to take on driver hours, highway safety
The U.S. Senate unanimously confirmed Anne S. Ferro as Federal Motor Carrier Safety Administrator yesterday, putting a former trucking association executive in charge of the nation’s truck safety watchdog at the Department of Transportation.
She takes charge at FMCSA as it reopens its rulemaking on truck driver hours of service, one of the most contentious issues facing the agency. When nominated by President Obama in June, Ferro was president of the Maryland Motor Truck Association. Before joining the MMTA in 2003, she spent 11 years with the Maryland Motor Vehicle Administration, first as assistant administrator and then administrator. Her nomination outraged the Teamsters union and several public safety groups opposed to changes in the hours-of-service rules that Ferro supported as head of the MMTA. Senate Confirms Ferro as FMCSA Chief | Journal of Commerce
U.S. Sheds Transport Jobs in October
National unemployment rate of 10.2 percent affects freight sector
Freight transportation employment fell again in October, the Labor Department said, and many of their major customer groups shed jobs as well.
Measured by the raw numbers supplied by employers, without adjusting for typical seasonal variations, Labor said the trucking industry lost 8,700 jobs last month. That left the largest transportation industry segment with about 1.27 million workers, down from 1.279 million in September and nearly 1.284 million in August. The report showed another month of sizable declines in the goods-producing sector, with the manufacturing and construction sectors each shedding more than 60,000 adjusted for seasonal norms. Those are customer groups that generate large amounts of freight shipments, and traffic for their cargoes has recently held to a narrow volume range after growing over the summer. U.S. Sheds Transport Jobs in October | Journal of Commerce
British Airways Fined for Price Fixing
British Airways will pay a $4.2 million fine under a ruling by a Canadian court that the airline participated in a cargo price-fixing cartel between 2002 and 2006.
The ruling by a federal court in Ottawa is part of the spreading series of penalties around the world that have taken in many of the world's largest freight carriers.
The fines in Canada against BA, Air France, KLM, Martinair and Qantas total some $13.5 million. "The fines obtained as a result of our investigation into the air cargo price-fixing conspiracy reflect the serious nature of this behavior," said Melanie Aitken, Canadian commissioner of competition. "The fines obtained as a result of our investigation into the air cargo price-fixing conspiracy reflect the serious nature of this behavior." British Airways Fined for Price Fixing | Journal of Commerce
While most trucking companies prefer to pay their drivers by the mile, Dupre Logistics has been taking a different approach, compensating by the hour. In light of National Driver Appreciation Week, the company decided to highlight its hourly pay structure and celebrate the initiative's benefits to its 700-plus drivers as well as the company as a whole. Not many fleets have committed to this type of pay structure, especially in this economy, but the Louisiana-based carrier is finding that the alternative method is paying off in terms of retention, safety and efficiency. The pay structure produces better schedules and safer drivers, the company says. It also attracts higher quality drivers that want to stay, something that may give Dupre a leg up once the recovery shakes out.
"We need the high caliber driver," said Tom Voelkel, president. "At Dupre Logistics, we strive to recruit and retain the best team in the industry. It's an initiative with benefits that far outweigh the cost to our bottom line." TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
Trucking Industry Celebrated Drivers Across the Country This Week
Trucking companies and industry associations across the country have been honoring truck drivers for their hard work and celebrating their role this week. National Truck Driver Appreciation Week recognizes the integral role drivers serve in delivering everything we need safely and efficiently. The annual event is sponsored by the American Trucking Associations. According to the ATA, there are 3.5 million professional truck drivers delivering life's essentials across the country every day. TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
Stocks eked out a gain Friday after a rocky session as investors juggled a disappointing jobs report and some analyst upgrades.
The Dow Jones Industrial Average rose 17.46, or 0.2 percent, to close at 10,023.42. The S&P 500 and Nasdaq each gained about 0.3 percent.
The gains for the week were far more impressive: All three indexes are up at least 3.2 percent from where they ended last week, snapping a two-week losing streak. And the CBOE volatility index, widely considered the best gauge of fear in the market, dropped more than 20 percent, finishing the week below 25. Dow Gains 3% for the Week - Market Overview * US * News * Story - CNBC.com
Outlook: Dollar Likely to Ride Higher on Bleak Jobs Report
The dollar is likely to trade higher in the week ahead, with Friday's worse-than-expected U.S. non-farm payrolls data for October seen as the driving force for currency markets at least until mid week. The dollar eked out a gain against most major currencies other than the yen after the government said the unemployment rate rose to 10.2 percent, the highest since April 1983. Currency Outlook: Dollar Will Ride Higher on Bleak Jobs Report - Forex Currencies * US * News * Story - CNBC.com
How Fed Will Trigger Correction: Market Pro
Friday's Labor Department report showed that unemployment rate unexpectedly jumped to 10.2 percent in October, even though the pace of job losses slowed. How do the numbers affect the markets? David Joy, chief market strategist at RiverSource Investments, and Keith Goddard, president of Capital Advisors, shared their insights. “I read it as a relatively constructive number, because the trend continues to improve and the headline number will keep consumer confidence under pressure,” Joy told CNBC.
Joy said he expects businesses to lead the global recovery instead of consumers. He added that, according to the Fed statement from earlier this week, it will take a "long time" to get into an inflationary period. “So I think the Fed is on hold, as they said, for an extended period of time," he said. "I think that means well into next year if not beyond.” CNBC Stock Blog — Correction Coming when Fed Ends 'Easy Money': Market Pro — CNBC.com Market News - CNBC Stock Blog - CNBC.com
Correction Coming in this 70s Retro Rally: Charts
The current market rally will stop in the next few days, a correction of at least 3 weeks will follow, but stocks will rebound and finish high in 2010, independent trader Bill McLaren said Friday. Once this correction has finished, it “will be followed by a strong trend up to complete in 2010 for a significant top,” Mclaren told CNBC.
The current recovery outlook for the S&P 500 index mirrors that of the Dow in 1975, McLaren said, adding that the “index has been following this roadmap very well.”
The crisis of ’75 was “the last time that there was a dominate five-year bear cycle which we’re in right now,” he said, adding that “we can expect the same type of trend that occurred in '75-'78 to occur from now to 2012.” Correction Coming in this 70s Retro Rally: Charts - Economy * Europe * News * Story - CNBC.com
Fears of Bubble Prompt Investors to Seek Exit Strategy
Fears that the meteoric rise in stocks and commodities prices is creating another asset bubble have investors debating whether to pull back now or ride the rally until the bubble bursts next year when the Fed starts raising interest rates.
Warnings about another asset bubble—which have become more pronounced recently from economist Nouriel Roubini as well as others—stem from concern that the market's continued rally is not the result of an improving economy but the Fed's low interest rates, which make dollar-denominated assets cheaper. "The thing that's super-difficult to gauge is how much longer will these assets all keep rising in tandem. It's virtually impossible to gauge but it could end up surprising people and go longer than people think," says Chip Hanlon, president of Delta Global Advisors in Huntington Beach, Calif. Fears of Market Bubble Have Investors Debating Exit Strategy - Markets * US * News * Story - CNBC.com
Jobless Rate Jumps to 10.2% as Labor Market Still Weak
The U.S. unemployment rate unexpectedly jumped to 10.2 percent in October, breaching the politically sensitive double-digit barrier for the first time in 26-1/2 years, even though the pace of job losses slowed.
A Labor Department report showed on Friday that employers cut 190,000 jobs last month, more than the 175,000 markets had expected. Economists had looked for the jobless rate to rise to only 9.9 percent from 9.8 percent the prior month. "The unemployment rate of 10.2 percent is problematic because it gives a sense of urgency to Washington, D.C. Washington will be looking for any increase in stimulus," said Tom Sowanick, co-president and chief investment officer at Omnivest Group. Jobless Rate Jumps to 10.2% as Labor Market Still Weak - Economy * US * News * Story - CNBC.com
What The Street Thinks of The Jobless Report
S&P Futures dropped about 10 points as the October Unemployment rate hit 10.2 percent, the highest since April 1983.
While this will be the headline in the papers, bear in mind that unemployment in the 1982 recession peaked at 10.8 percent at the end of 1982.
October Nonfarm Payrolls were also worse than expected, with a loss of 190,000 jobs vs. expectations of a loss of 175,000. There were revisions UPWARD in August and September. What The Street Thinks of The Jobless Report - Trader Talk with Bob Pisani - CNBC.com
BNSF CEO: Buffett's Bid for Railroad "Warmly Received" In Washington
Burlington Northern Santa Fe CEO Matt Rose says the railroad's proposed acquisition by Berkshire Hathaway is being "very warmly received" by Washington policy makers.
Rose makes the comment in a voice message to BNSF employees posted today on the company's intranet. A transcription has been filed with the SEC. "All I can tell you is, 'Wow, what a difference it makes.' This transaction is really being very warmly received. And the reason is exactly what we told all of our employees on Tuesday, and that is that Berkshire has a tremendous track record of buying well-run, well-maintained companies and leaving them alone in order for them to fulfill their mission. And it also helps to have, as I described it on Tuesday, probably the most significant business icon, Warren Buffett, leading this effort." BNSF CEO: Buffett's Bid for Railroad "Warmly Received" In Washington - Warren Buffett Watch - CNBC.com
FedEx Express will purchase 51 gasoline-electric hybrid vehicles from Azure Dynamics Corp.
The vehicles will be delivered in November and December; most of those will be put into service at a Bronx, N.Y., station. That station will have an all-hybrid fleet of about 100 trucks.
This will bring FedEx Express’ fleet of hybrid electric and electric vehicles to 325. “The tough driving and delivery conditions of New York City, mainly the stop-and-go-traffic, is an ideal environment to prove that efficient and cleaner transportation technologies are a viable alternative to conventionally equipped trucks,” Mitch Jackson, FedEx Corp. director of environmental affairs and sustainability, said in a statement. FedEx Express to boost hybrid fleet by 51 trucks - Memphis Business Journal: Electric Hybrid Bus Engines | Videos | Azure Dynamics Azuredynamics Video Hybrid Electric E450 Drive System, Hybrid Trucks
FedEx Delivers Holiday Cheer to U.S. Armed Services Members and Their Families
Trees for Troops Program Celebrates 5 Years of Supporting U.S. Soldiers
For the fifth consecutive year, FedEx Corp. and the Christmas SPIRIT Foundation are teaming up for Trees for Troops, a program created to deliver support and cheer to members of the military and their families during the holiday season. Throughout this holiday season, Trees for Troops will deliver approximately 16,000 real Christmas trees to more than 50 military facilities in the United States and overseas. “FedEx and its team members are pleased to support Trees for Troops, delivering holiday cheer to military men, women and families,” said Douglas G. Duncan, president and CEO, FedEx Freight. “Now in its fifth year, this program provides us the opportunity to say thanks to those who serve our country in the Armed Forces.” “The FedEx team considers it a privilege to help coordinate Trees for Troops,” said Stan Bradford, freight flow analyst for FedEx Freight who assists with planning the tree pickup and distribution logistics for the program. “As an Army veteran, I am glad that FedEx is taking this step to support these very deserving men, women and families.” FedEx Delivers Holiday Cheer to U.S. Armed Services Members and Their Families - Yahoo! Finance FedEx Special Delivery | About FedEx
YRC Worldwide starts debt exchange; failure could mean bankruptcy
YRC Worldwide Inc. has started its debt-for-equity exchange offer, a vital step in the company’s turnaround plan that, if unsuccessful, could end in bankruptcy.
If successful, the exchange — which would trade about $536.8 million in debt for what could be 95 percent of YRC’s common shares — promises Overland Park-based YRC a more firm financial footing. The proposal followed “several months of ongoing, active dialogue with representatives of the noteholders,” YRC said in a Monday release. If the exchange fails, YRC would talk to stakeholders about other ways to restructure outside court, including potential amendments to the exchange offer, YRC said in a Monday filing with the Securities and Exchange Commission. If such efforts still fell short, it would file bankruptcy, probably with a plan prepared in advance, the filing said. YRC Worldwide starts debt exchange; failure could mean bankruptcy - Kansas City Business Journal:
Manheim Selects UPS to Manage Vehicle Transport
Long-Term Vehicle Transport Alliance Will Simplify Process, Expedite Deliveries for Manheim Customers
Manheim, a leading provider of automotive remarketing services, has selected UPS to oversee its entire supply chain for moving millions of used vehicles each year to the wholesale market.
Manheim selected UPS because of its reputation as a global leader in supply chain and freight services, expertise in transportation logistics, experience in moving vehicles and excellent customer service. “After an extensive review of our vehicle transport operations, we identified opportunities to improve efficiencies and deliver a more consistent experience for our customers,” said Brett Franklin, senior director, Manheim. “Working with UPS, we found a partner that understands the type of logistical expertise, coordination and quality of service required and offers the best transport solution for us and our customers.” Manheim Selects UPS to Manage Vehicle Transport - Yahoo! Finance UPS: Business Solutions
Con-way Inc. Named to Inbound Logistics' Top 25 List of Green Supply Chain Partners
Inaugural G25 Index Recognizes Companies for Efficient and Eco-Friendly Operations
Con-way Inc. today announced that it has been named to Inbound Logistics' inaugural 25 Green Supply Chain Partners (G25) list. The first annual index recognizes transportation companies that are implementing efficient, measurable sustainability programs. According to Inbound Logistics, the G25 represents the industry's sustainable supply chain visionaries that are on the "cutting edge of green." Click here to view the full list. "Today the green movement has evolved to a point where companies are being held accountable for making significant and measurable contributions to the sustainability of the environment," said David L. Miller, Con-way's senior vice president, global policy and economic sustainability. "It's an honor to know that Con-way is being included among the leading innovators in sustainability for the transportation industry and is being positioned as a role model in this ongoing journey of improvement." Con-way Inc. Named to Inbound Logistics' Top 25 List of Green Supply Chain Partners - Yahoo! Finance
David Congdon, CEO of Old Dominion Freight Line, says business remains tight for the trucking industry. Trucking CEO Stays Cautious
ODFL Sets Improved Service to Canada
Old Dominion Freight Line said it is improving its Northwest gateway into Canada effective Monday, which will connect more than 65 of its service centers to Edmonton and Calgary, Canada. “By utilizing our Northwest gateway, we can reduce border crossing times for our customers,” said Chuck Powell, ODFL’s vice president for the Pacific Northwest.
The service will reduce border crossing times by providing a single gateway into Alberta, Canada, through Old Dominion’s Great Falls, Mont., location. ODFL Sets Improved Service to Canada | Transport Topics Online | Trucking, Freight Transportation and Logistics News
Missouri Truckload Carrier to Shutter
Joplin, Mo.-based Sitton Motor Lines has decided to close its doors, according to the Springfield Business Journal. The truckload carrier will most likely see its 250 employees laid off, including drivers and administrative and service personnel.
Richard Sitton, president and CEO, told the Journal he wasn't sure how the closing would play out, but that it would be a smooth liquidation. Sitton Motor Lines was founded in 1979 by David Sitton and his two sons, Richard and Michael. The company started out serving 13 states with five owner-operator tractors and 50 new trailers.
Sitton, a privately held corporation, operates as an irregular route common and contract carrier, providing truckload transportation service throughout the U.S. TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
FTR: We're on the Bottom, But Where Do We Go From Here?
"We really have reached a bottom, and that's a good thing." "We think the economy is starting to improve." These are just a few of the promising phrases listeners heard from Eric Starks, president of FTR Associates, and Economist Bill Witte, respectively, during an FTR webinar Friday morning. The forecasters presented the good news in their Commercial Truck and Vehicle Outlook. But, as with most good news that comes from FTR, it almost always comes with a caveat: there's no free lunch. Starks explained that there's still a lot of uncertainty about how long it will take for things to firm up. At a minimum, things won't start firming up until the third quarter of 2010, he predicts. TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
Stocks rallied Monday, building off of their best weekly performance in a month, as a pledge by the G20 to keep stimulus in place spurred investors' appetite for risk.
The Dow Jones Industrial Average jumped 203.52, or 2 percent, to close at 10,226.94, a new high for 2009. The S&P 500 gained 2.2 percent and the Nasdaq advanced 2 percent. Dow Ends at New Highs for Year After G20 Pledge - Market Overview * US * News * Story - CNBC.com
Art Cashin: I'm Still Skeptical About Markets
Toward the end of last week, the markets saw a huge run-up. Does this bode well for stocks this week? Art Cashin, director of floor operations for UBS Financial Services, offered CNBC his insights.
"I am still skeptical about the markets," says Cashin. "We are still in what could be a topping process." "What I want to see are better economic reports coming out. The private sector hasn't kicked in yet for the recovery," said Cashin.
"Today (Monday) is basically a non event day. The market will just be checking its pulse," Cashin said. CNBC Stock Blog — Art Cashin on Interest Rates, Fed, Inflation, Jobless Claims — CNBC.com Market News - CNBC Stock Blog - CNBC.com
Are You Making These Costly Investing Mistakes?
In the last 30 days, the Dow’s volatility increased significantly and took investors on quite a roller coaster ride.
As such, I’m hearing from a lot of people who wonder what to do next.
I’m going to answer some of the questions I’ve received in upcoming issues of Investor Brief, so stay tuned for that, but first I want to share some words of wisdom from two of the best investors I know (both are contributors to my Wall Street newsletter). Are You Making These Costly Investing Mistakes? - Investor Agenda with Maria Bartiromo - CNBC.com
Time Is Here to Look at Overseas Stocks: Bill Gross
Middle-aged investors looking to retire in about 20 years should position their portfolios to have a 25 to 30 percent stake in equities outside of the United States, Bill Gross, co-chief investment officer at PIMCO told CNBC Monday. "Stocks or equity investments are better made in strong growth economies—that's not the US," Gross said. "You go where the growth is, and today, that would be in developing markets such as Brazil or Asia."
The US stock market is likely the most overvalued global market, Gross said, pointing out that it has a higher P/E ratio than the United Kingdom or Brazilian markets, but a lower yield. Ten-year bonds in those two countries also far outyield those in the United States, he said. Investors Should Limit Exposure to US Equities: Gross - General * US * News * Story - CNBC.com
Flaw in US Data Overstates Growth, Productivity
A widening gap between data and reality is distorting the government’s picture of the country’s economic health, overstating growth and productivity in ways that could affect the political debate on issues like trade, wages and job creation. The fundamental shortcoming is in the way imports are accounted for. A carburetor bought for $50 in China as a component of an American-made car, for example, more often than not shows up in the statistics as if it were the American-made version valued at, say, $100. The failure to distinguish adequately between what is made in America and what is made abroad falsely inflates the gross domestic product, which sums up all value added within the country. Flaw in US Data Overstates Growth, Productivity - General * US * News * Story - CNBC.com
China Growth Shows GM Good Fortune
The latest sales numbers out of China this morning are further vindication that General Motors strategy in that country is paying off.
Thanks to a government incentive program stoking demand for new vehicles, GM sales soared 77 % last month - this at a time when auto sales for the entire auto industry also took off.
So far this year, GM has sold more than 1.5 million vehicles in China. Not far behind GM U.S. sales which are 1.71 million this year. China Growth Shows GM Good Fortune - Behind the Wheel with Phil Lebeau - CNBC.com
Dow Industrials at New Highs—But Other Indices Lag
Dow Industrials hits new highs, but other indices lag. In most recoveries, small caps notably outperform big caps, but this has not been the case with this recovery.
On just a numbers basis, it look like small caps have done well. Since the March bottom, the Russell 2000 has outperformed the S&P 500: 60 percent to 51 percent. Dow Industrials at New Highs—But Other Indices Lag - Trader Talk with Bob Pisani - CNBC.com
50 Million Packages to Move Through FedEx Network During Busiest Week
FedEx Corp. expects to move more than 50 million packages through the global FedEx Express, FedEx Ground and FedEx Freight networks during the week of December 14, 2009, its busiest week of the year. “The cornerstone of our success at FedEx is our 275,000 team members who work tirelessly to make every FedEx experience outstanding,” said Frederick W. Smith, chairman, president and CEO of FedEx Corp. “As our team members deliver the holidays, they provide our customers the reliability of our unmatched global networks backed by the broadest range of shipping solutions available to suit their needs.” FedEx Readies for the Holiday Season - Yahoo! Finance
FedEx says IRS won't impose penalties for 2004-06
FedEx says IRS won't impose penalties for 2004-2006 in battle over driver status
FedEx says the IRS will not impose tax penalties for 2004 through 2006 in the package delivery company's long-running battle over the classification of its FedEx Ground drivers as contractors instead of employees.
The IRS also recently withdrew its initial penalty of $319 million plus interest from an audit from 2002. FedEx says IRS won't impose penalties for 2004-06 - Yahoo! Finance
Will Chrysler Return to Class 8 Trucks? Link with Fiat's Iveco Might Make It So
Will Chrysler return to the Class 8 market that it left 34 years ago? Fred Diaz, CEO of Chrysler LLC's Dodge Ram Truck, said his group will explore expansion into heavy trucks while it adds Euro-style cargo vans and a new American light pickup. They'll all be called Rams but not overtly Dodge Rams because the Ram name has gained near-stand-alone brand status within Chrysler. However, for Australia Iveco also makes a heavy conventional model called the Powerstar, which could find acceptance in North America. Powerstar comes in day- and sleeper-cab versions, with big-bore diesels rated at 450 to 560 horsepower, and with transmissions that include a 16-speed automated mechanical gearbox (more details are at Iveco heavy commercial vehicles: Powerstar). Like most other diesels overseas, Iveco's Curser engines will use selective catalytic reduction to meet the latest Euro exhaust emissions limits, and would presumably do so to meet EPA limits in the U.S. and Canada. TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
FFE Posts $2.6 Million Loss in 3Q
As a result of lower demand for transportation services, excess capacity and downward pricing pressure, Frozen Food Express Industries, Dallas, reported a loss of $2.6 million, or $0.15 a share, in the third quarter. While it's a narrower loss than the company's second quarter, this compares to net income of $1.4 million, or $0.08 a share, in the year-ago period. "2009 has undoubtedly been the toughest operating conditions our industry has seen in quite some time," said Stoney M. Stubbs, president and CEO. "We continue to experience significant revenue and profit challenges that we believe are the result of the weak economy, increased unemployment and changes in consumer buying habits. While our results reflect the negative impact of the current economic recession, we continue to place an emphasis on cost controls while focusing on customer initiatives to incrementally increase revenue and profits which has allowed our results to improve every quarter during 2009." TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
Western Star Still Going Strong
Western Star last week staged a dealer meeting in Las Vegas to underscore its new structure as a separate business unit under Daimler Trucks North America. Trucking reporters were invited to drive some of the division's on- and off-highway products and meet the new management. The final truck, an on-highway rotary-boom wrecker, made this overgrown Tonka Toy a piker, though. At $600,000, it is the star of Ten-West Towing of Bakersfield, Calif. Powered by a 575-horsepower Series 60 14-liter with an 18-speed, it features dual 20,000-pound lift axles and a 55,000-pound tandem. The top-rated wrecker with its 355-inch wheelbase has a tripled frame and tips the scales at 81,000 pounds ready to roll. TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
The Dow eked out a gain Tuesday but trading was light and choppy following Monday's rally.
The Dow Jones Industrial Average rose 20.03, or 0.2 percent, to close at 10,246.97, its highest close since October 2008, and fifth straight gain. This came after the Dow chalked up its second 200-plus gain in three sessions on Monday.
The S&P 500 finished flat and the Nasdaq shed 0.1 percent. Dow Ekes Out a Gain; Priceline Surges - Market Overview * US * News * Story - CNBC.com
US Recovery to be Weak, Erratic: Top Fed Officials
High unemployment and reluctant consumers will likely make an incipient U.S. economic recovery weak and erratic, top Federal Reserve officials said in a string of speeches across the country on Tuesday.
That means interest rates, currently at historic lows close to zero, should remain near that floor for the foreseeable future, the policymakers said. "The strength and durability of the expansion is in question," said Janet Yellen president of the Federal Reserve Bank of San Francisco, in Phoenix, Arizona. "High unemployment, weak job growth and paltry wage increases are a recipe for sluggish consumer spending growth and a tepid recovery." US Recovery to be Weak, Erratic: Top Fed Officials - Economy * US * News * Story - CNBC.com
Workers Staying Put at Their Jobs as Jobless Surges
U.S. workers were reluctant to quit their jobs in September as businesses showed no signs of increased hiring, a government report showed Tuesday.
The job separations rate, a measure that covers all terminations of employment, stood at 3.3 percent in September, unchanged from the previous month, the Labor Department said in its monthly Job Openings and Labor Turnover Survey. With Unemployment Up, Workers Are Slow to Quit Jobs - Economy * US * News * Story - CNBC.com
Three Things the US Can Do To Stop the Dollar's Decline
Since 2001, four consecutive Treasury secretaries have made "a strong dollar policy" the cornerstone of their rhetoric on the U.S. currency. Over that period of time, the currency has lost nearly a fifth of its value. Hint to the current Treasury secretary: it's not working.
Here are three ways Federal Reserve and the Treasury could stop the dollar's decline without changing current policy too much. Three Things the US Can Do To Stop the Dollar's Decline - Economy * US * News * Story - CNBC.com
Chrysler Makes Smart Call Staying Unplugged—For Now
Ever since Chrysler CEO Sergio Marchionne and his management team unveiled their plan for reviving Chrysler last week, much has been made about what the plan is and is not built around: A heavy emphasis on four cylinder engines and very little mention of hybrids and electric cars. Also, for all the hype about electric cars coming, they will be here in limited numbers at first. A combination of limited capacity to supply batteries and components along with the usual slow uptake on new technology will limit electric car sales when they first roll out. Heck, look at gas-electric hybrids. After almost a decade of being sold, they still make up less than 3 % of auto sales. Chrysler Makes Smart Call Staying Unplugged—For Now - Behind the Wheel with Phil Lebeau - CNBC.com
A Red-Ink Train Wreck: The Real Fiscal Cost of Government-Run Healthcare
United Parcel Service (UPS) has gotten some love on Wall Street for its forecast for business conditions in coming quarters, including the impending holiday season.
Shares have risen 3%, and gotten back within spitting distance of the highs reached two months ago at just shy of $60 a share, after offering some constructive comments about business conditions. Or, at least, comments that sounded constructive. Still, there seemed to be a lot of ”yes, with a ’but’ ….” or ”no, with a ‘maybe’ ….” to the company’s remarks. Which included its belief that the recovery was real. But gradual. And sustainable. But vulnerable. You’ll Laugh, You’ll Cry At UPS Outlook - Stocks To Watch Today - Barrons.com
IRS Drops Last FedEx Audit
Decision is major victory for independent contractor model at parcel unit
FedEx says it expects no more audits from the Internal Revenue Service now that the agency for the second time dropped a look at potential penalties in the company’s classification of parcel division drivers as independent contractors.
The IRS, which last month told FedEx it will not impose penalties under an audit for 2002, this week said it also rejected assessments for the years 2004 through 2006. It’s a major victory for FedEx because the classification of the drivers as independent contractors is a central pillar of the business model at its ground delivery operation, which competes directly with UPS and its unionized parcel delivery work force.
“FedEx Ground’s independent contractor model has been tremendously successful for our customers, the hard-working independent contractors and FedEx Ground for more than 20 years,” the company said. “It is clear that the IRS decision today further validates this business model and we look forward to continue growing the model for many decades to come.” IRS Drops Last FedEx Audit | Journal of Commerce
Con-way Launches Blog on Public Policy, Sustainability
As much as I’d like it to be otherwise, for the foreseeable future, the trucking industry will continue to be virtually 100% dependent on fossil fuels for energy to power our fleets. As such, the industry will remain for some time a significant source of carbon emissions. We did this in 2008 for both our less-than-truckload and full-truckload operations at Con-way. In our LTL operations, which run both in cities and between them, we turned back the throttle governors of our trucks to run at a maximum speed of 62 mph, down from 65. In our truckload operation, which runs mostly long-haul highway miles across the nation, we turned back their speed governors to 65 mph from 70 mph.
In the process, we made a couple of discoveries. We saved fuel, to the tune of 6.6 million gallons annually, and saw a roughly 3% to 5% improvement in fuel mileage. We lowered annual emissions of CO2 produced by our fleets, reducing them by 942 million tons over previous levels. The change didn’t impact on-time service since on an average run of 500 miles, the speed reduction in our LTL operations added about 25 minutes to the run time. Reducing Trucking’s Carbon Footprint | Public Policy & Sustainability
New Report Paints Alarming Picture of Our Energy Future
A new report released this week says we're headed for an energy crisis, unless we take practical steps to address energy issues, including increasing demand for oil, higher fuel prices, and diminishing oil supplies. The World Energy Outlook 2009, published by the International Energy Agency, calls for consumers and producers of energy to examine current trends and make some changes. TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
Dan Rather Produces Second Show on Trucking Industry
Dan Rather made a pit stop at Willie's Place truckstop at Carl's Corner, Texas, Monday to talk to a panel of people in the trucking industry, and to shoot a show that aired Tuesday night on HDNet. The segment is a follow-up to a previous HDNet story that Rather hosted, which focused on concerns related to truck driver training and schools. According to Norita Taylor, spokeswoman for the Owner-Operator Independent Drivers Association, the panel discussion touched on topics including driver training, hours of service, and the economic environment and its effect on truckers. TruckingInfo.com : We've got trucking covered. Your Source for Trucking News and Information
Trucker Werner to Pay Shareholders $90 Million
Special dividend reflects ‘firming’ freight trends, analyst says
At a time when many trucking companies are hard up for cash, Werner Enterprises says it will deliver $90 million in special dividends to shareholders next month.
It’s the second consecutive year Werner, a $2.2 billion carrier, will pay a special cash dividend to shareholders, in addition to its regular quarterly dividend of 5 cents per share.
The special dividend of $1.25 per share will be paid to holders of approximately 72 million shares Dec. 8, the company said. Analysts said the move is a good sign. “This special dividend is not a surprise,” said R.W. Baird analyst Jon A. Langenfeld. “We view it as an indication of solid 2010 free cash flow expectations on a lower capital expenditure outlook and a confirmation of a firming in freight trends.” Trucker Werner to Pay Shareholders $90 Million | Journal of Commerce
The Dow rose for a sixth straight session Wednesday as the dollar hit a new 15-month low after Federal Reserve officials reinforced the view that rates will remain low for some time.
The dollar rebounded by the close but stocks held onto their gains. Also giving the market a boost was strong Chinese data on factory output and retail sales. Dow Rises for a Sixth Straight Session - Market Overview * US * News * Story - CNBC.com
Yuan Critics Want Obama to Keep Campaign Promise
U.S. critics of China's currency policy said on Wednesday they were skeptical of a hint from Beijing that it could soon let its yuan rise against the dollar again after an 18-month hiatus. The critics, representing U.S. business and labor groups, also urged President Barack Obama to live up to his campaign promise last year, when he said he would "insist that China stop manipulating its currency because it's not fair to American manufacturers, it's not fair to you and we are going to change it when I am president of the United States of America." Yuan Critics Want Obama to Keep Campaign Promise - China * Asia * News * Story - CNBC.com
Wal-Mart To Continue Retail Success: Analysts
Wal-Mart is reporting third quarter earnings on Thursday and has so far out performed other retailers during the recession. The question is whether the retailing giant can continue to draw in customers as the recovery seems to be picking up. "I think value is going to be in vogue for some time," said Binder. "And while other retailers are showing somewhat better results, I think that if you look out over the next few years, you are still going to see a very valued consumer and that's Wal-Mar'ts sweet spot. I think there are brighter days ahead for them." CNBC Stock Blog —Wal-Mart To Continue Retail Success: Analysts - CNBC Stock Blog - CNBC.com
Dollar Trouble, Oil's Bubble Could Derail Recovery
The weakness in the U.S. dollar risks inflating a bubble in the oil market, which could threaten consumer spending and potentially cause a double dip recession.
The greenback's decline this year has been lauded as good for America as it benefits earnings, stimulates exports and helps rebalance the U.S. economy. But runaway oil prices could be the Achilles' heel to the thesis that sees only a benign impact of a weak dollar. Dollar Trouble, Oil's Bubble Could Derail Recovery - Economy * US * News * Story - CNBC.com
Hewlett-Packard to Acquire 3Com for $2.7 Billion in Cash
Hewlett-Packard announced after the bell Wednesday that it will acquire 3Com in a deal valued at $7.90 a share, or approximately $2.7 billion in cash, sending 3Com shares sharply higher in after-hours trading. Also Wednesday, Hewlett-Packard announced preliminary results for the fiscal fourth quarter, putting its revenue at $30.8 billion, down 8 percent from the same time last year, and down 5 percent when adjusted for currency effects. Hewlett-Packard to Acquire 3Com for $2.7 Billion in Cash - Mergers and Aquisitions * US * News * Story - CNBC.com
CNN Anchor Lou Dobbs Says He is Leaving Network
CNN host Lou Dobbs, whose outspoken views on U.S. immigration have made him one of the most controversial figures on cable news, said on Wednesday he is leaving the 24-hour cable news network because he wants a freer platform to state his opinion.
Dobbs, who announced his decision near the start of his nightly news and commentary show, did not say where he plans to go after finishing nearly 30 years at CNN, now a unit of Time Warner Inc A CNN source told Reuters Dobbs will be concentrating on his syndicated radio show, "The Lou Dobbs Show," and would not confirm a New York Times report that he had met with Roger Ailes, chairman and chief executive of the Fox News channel, a CNN rival owned by News Corp CNN Anchor Lou Dobbs Says He is Leaving Network - Media * US * News * Story - CNBC.com
Clowning Around At Work
For those of you in HR charged with hiring from a workforce of Americans whose parents never told them they were stupid for some boneheaded move—they just made "poor choices"—you can appreciate new survey results from CareerBuilder. The job Web site asked nearly 3,000 hiring managers for the most unusual requests they've received from employees. Clowning Around At Work - Funny Business with Jane Wells - CNBC.com
Cadillac Converj Smart Extension of Volt
It stole the show at last year's auto show. Now the Cadillac Converj is getting the green light from General Motors. This is not only a smart move that could pay off over time for GM, but it also shows how far the auto maker has come in moving quicker when it comes to taking new models from concept to production. This does not mean the Converj will be a slam-dunk, guaranteed winner. Still, I like the move. Cadillac Converj Smart Extension of Volt - Behind the Wheel with Phil Lebeau - CNBC.com
Addicted to Easy Money?
In an interview with CNBC’s Maria Bartiromo yesterday, Richmond Fed president Jeffrey Lacker refused to offer any clear sign as to when the central bank might finally end its zero-bound policy and begin raising rates. When asked whether he was worried about future inflation, Lacker said he thinks “we’re in a good place with inflation right now.” And when asked whether the U.S. would move to lift rates in 2010, he said, “It could take longer than that.” Look, I would have asked Lacker if the Fed will tighten policy in my lifetime. He wouldn’t even commit to 2010. Addicted to Easy Money? - Money and Politics Blog - CNBC.com
Stocks End Mixed as Post-Fed Rally Fizzles 
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