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10:00AM New York – Merrill Lynch recorded $15 billion write down related to subprime loans.[/R]
U.S. market averages edged higher at the opening despite sharp sub-prime related losses at Bank of New York Mellon and Merrill Lynch.
December housing starts fell to a seasonally adjusted annual rate of 1,006,000, 14.2% below the revised November estimate of 1,173,000 and is 38.2% below the revised December 2006 rate of 1,629,000. The December rate for units in buildings with five units or more was 196,000.
Privately-owned housing completions in December were at a seasonally adjusted annual rate of 1,302,000, 7.7% below the revised November estimate of 1,411,000 and is 31% below the revised December 2006 rate of 1,887,000. Single-family housing completions in December were at a rate of 1,009,000, 12.0% below the November 1,146,000 completion.
The December rate for units in buildings with five units or more was 278,000. An estimated 1,500,200 housing units were completed in 2007. This is 24.2% below the 2006 completion of 1,979,400.
Home builders edged higher in the morning after the report. Toll Brothers, D R Horton, Lennar, and Beazer Homes edged between 1% and 3% higher.
Merrill Lynch (
MER: chart) today reported a net loss from continuing operations for the full year 2007 of $8.6 billion, or $10.73 per diluted share, a sharp reversal from net earnings from continuing operations of $7.1 billion, or $7.17 per diluted share for 2006.
Merrill Lynch’s net loss for the full year 2007 was $7.8 billion, or $9.69 per diluted share, significantly below net earnings of $7.5 billion, or $7.59 per diluted share for 2006.
Net revenues for 2007 were $11.3 billion, down 67% from $33.8 billion in 2006, while the 2007 pre-tax loss from continuing operations was $12.8 billion compared to pre-tax earnings from continuing operations of $9.8 billion for 2006.
For the fourth quarter of 2007, net revenues were negative $8.2 billion, down from $8.4 billion in the prior-year period, and Merrill Lynch’s fourth quarter 2007 pre-tax loss from continuing operations was $14.9 billion.
The net loss from continuing operations for the fourth quarter was $10.3 billion, or $12.57 per diluted share, down substantially from net earnings from continuing operations of $2.2 billion in the prior-year quarter.
Merrill Lynch’s net loss for the fourth quarter of 2007 was $9.8 billion, or $12.01 per diluted share, significantly below net earnings of $2.3 billion, or $2.41 per diluted share for the 2006 fourth quarter.
Merrill recorded losses from collateralized loans of $11.5 billion in the fourth quarter after recording losses of $7.9 billion in the third quarter.
At the end of the fourth quarter, book value per share was $29.37, down from $41.35 at the end of 2006. Including the impact of the equity and equity-related transactions which closed subsequent to year end, Merrill Lynch’s pro forma book value per share would be $30.30 at the end of 2007.
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8:00AM New York, 6:30PM Mumbai - Sensex declined and Reliance Industries Limited, Reliance Energy, and TCS profits surges. /R
Stock market in India on Thursday declined for the fourth time in a row, pulled by declines in large cap companies.
Reliance Industries fell after reporting December 2007 third quarter results and ICICI Bank also declined.
The 30-share BSE Sensex fell 0.8% or 167.29 to 19,700.82. The broader CNX S&P Nifty lost 0.4% or 22.55 to 5913.20.
On the BSE, 2,003 shares advanced 833 shares fell, and 41 shares remained unchanged. Of the index stocks, 13 gained while the rest declined.
Turnover on the BSE was at 8,423 crore rupees and revenue on the National Stock Exchange stood at 20,510 crore rupees.
Reliance Industries was the most active stock on the BSE with a turnover of 472.55 crore rupees. Reliance Natural Resources, Reliance Energy, Reliance Capital and Himachal Futuristic Communications were also active.
