The rating agency downgraded $247 million in Countrywide subprime loan transactions as the transactions experienced 60-day delinquency rates of ranging from 7-40%. In the process the ratings agency affirmed the ratings of $2 billion of the subprime-based transactions. Here’s the breakdown - check out the delinquency numbers on these things!

CWABS 2003-BC3 60+ day Delinquency: 26.73%
CWABS 2003-BC4 60+ day Delinquency: 18.01%
CWABS 2003-BC5 60+ day Delinquency: 16.06%
CWABS 2003-BC6 60+ day Delinquency: 12.35%
CWABS 2003-5 Group 1 60+ day Delinquency: 6.79%
CWABS 2003-5 Group 2 60+ day Delinquency: 40.99%
CWABS 2004-BC4 60+ day Delinquency: 18.59%
CWABS 2004-1 60+ day Delinquency: 14.92%
CWABS 2004-5 60+ day Delinquency: 19.51%
CWABS 2004-8 60+ day Delinquency: 28.68%
CWABS 2004-11 60+ day Delinquency: 28.76%

Source [blownmortgage]

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Filed under: Earnings reports, Good news, Consumer experience, General Motors (GM)

Shares of the nation’s largest automaker, General Motors Corp. (NYSE: GM), have been soaring in premarket despite posting a large first quarter loss, as the company surprised Wall Street by reporting a smaller than expected loss per share.

For the quarter, General Motors said it swung to a loss of $3.3 billion, hurt by continued weakness in U.S., waning demand for its sport utility vehicles, and a supplier strike. The company stated that the strike, which started two months ago at American Axle and Manufacturing Holdings Inc. (NYSE: AXL), came with charges that totaled $800 million, and slashed vehicles production by 100,000.

Weighed down by those costs, GM posted a net loss of $5.74 per share, compared with a profit of 11 cents a share a year-earlier. However, excluding one-time items, the automaker reported a loss of 62 cents per share. Going into today’s earnings announcement, analysts had been expecting the company to show a much higher loss of $1.60 per share.

Continue reading General Motors (GM) reports lower than expected first quarter loss

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Subprime loan delinquencies have stabilized after their torrid run-up in late payments according to the latest remittance reports. This is obviously a positive sign for the housing market as fewer 60-day delinquencies mean fewer eventual 90-day delinquencies and NOD’s. While analysts caution against over-reaching in the importance of the improvement they do note that it is significant.

Unfortunately, the metrics for foreclosures, REO properties and vacancies were all higher - which may negate any improvement in the delinquency number. Further, a full 33% of all tranches of the 80 deals tracked on the ABX index are rated ‘CCC’ which mean they are in imminent danger of default.

Compounding the problem is that subprime is just a small chunk of the market that is going to see delinquencies and NOD’s as we move through 2008-11. A majority of the loans that will be hardest hit are the limited-documentation, I/O, and Neg Am option ARMs that make up the Alt-A bucket of lending.

From the Reuters article on the slowing subprime loan delinquencies:

The performance of subprime mortgage loans pooled into U.S asset-backed securities showed signs of stabilizing in April, although analysts signal caution ahead.

Remittance reports, which provide a snapshot of subprime loan performance over the last 30 days, showed the pace of delinquencies slowed from the sharp climb in previous months, snapping a long period of pronounced deterioration.

“The deceleration is partly attributable to seasonality (tax refunds), but is nevertheless a fairly significant slowdown,” said Chris Flanagan, analyst at JPMorgan Securities.

…

“Given the historical seasonal pattern of significant percentage change improvements in 30- and 60-day delinquencies in April, we believe the latest report portends additional collateral performance deterioration over the next several months,” the firm said.

Cumulative losses on the risky home loans that support the series of ABX indexes continue to rise.

“This translates to 33 percent of all outstanding bonds across ABX reference entities are in imminent default. Even bonds originally in the ‘AA’ category have fallen to ‘CCC’ or lower,” said Flanagan.

Source [blownmortgage]

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Filed under: Earnings reports, Google (GOOG), eBay (EBAY), Pfizer (PFE), Coca-Cola (KO), Intel (INTC), Nokia Corp. (NOK), Advanced Micro Dev (AMD), Abbott Laboratories (ABT), Xerox Corp (XRX), Reliance Steel and Aluminum (RS), Hunt(J.B.) Transport (JBHT), Intuitive Surgical Inc (ISRG)

Here are some highlights from this past week’s earnings coverage from BloggingStocks:

• Abbott Laboratories Inc. (NYSE: ABT) first-quarter profit soared on overseas demand for Humira.
• Advanced Micro Devices Inc. (NYSE: AMD) posted a bigger-than-expected loss, its sixth straight.
• Coca-Cola Co. (NYSE: KO) posted better-than-expected first-quarter results on strength overseas.
• CSX Corp. (NYSE: CSX) first-quarter profit soared on strong demand for grain, ethanol, and coal.
• eBay Inc. (NASDAQ: EBAY) beat first-quarter expectations but the outlook was uninspiring.
• Google Inc. (NASDAQ: GOOG) first-quarter profit soared 42%, beating Wall Street estimates.
• Intel Corp. (NASDAQ: INTC) first-quarter earnings slipped but exceeded expectations.
• Intuitive Surgical Inc. (NASDAQ: ISRG) beat first-quarter estimates and offered a disappointing outlook.
• J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) missed first-quarter estimates on rising fuel prices.
• Nokia Corp. (NYSE: NOK) first-quarter profit missed expectations and it warned of a coming decline.
• Pfizer Inc. (NYSE: PFE) first-quarter profits fell and missed analysts’ expectations.
• Reliance Steel & Aluminum Co. (NYSE: RS) lowered its second-quarter outlook.
• Royal Philips Electronics posted a bigger-than-expected fall in profit on weak North America TV sales.
• Wolverine World Wide Inc. (NYSE: WWW) beat earnings estimates but shareholders were not impressed.
• Xerox Corp. (NYSE: XRX) posted a first-quarter loss that matched analysts’ estimates.

Also, Jim Cramer doesn’t think General Electric (NYSE: GE) is the bellwhether some take it for. Goldman Sachs (NYSE: GS) is pessimistic about this earnings season. And here’s a look at some companies that reported this week that could bounce back after the recession, as well as earnings expectations for “barometer” companies reporting next week.

Upcoming results to watch for include Bank of America (NYSE: BAC), Halliburton (NYSE: HAL), Merck (NYSE: MRK) Texas Instruments (NYSE: TXN), AT&T (NYSE: T), DuPont (NYSE: DD), Yahoo! (NASDAQ: YHOO), Amazon.com (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Qualcomm (NASDAQ: QCOM), Boeing (NYSE: BA), UPS (NYSE: UPS), 3M (NYSE: MMM), PepsiCo (NYSE: PEP), Microsoft (NASDAQ: MSFT), Motorola (NYSE: MOT), and McDonald’s (NYSE: MCD).

Visit AOL Money & Finance for more earnings coverage.

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Filed under: Analyst reports, Analyst upgrades and downgrades, BP p.l.c. ADS (BP)

MOST NOTEWORTHY: BP, LMI Aerospace and Smith & Nephew were among today’s noteworthy upgrades:

• Credit Suisse upgraded BP (NYSE: BP) following the company’s strong Q1 report.
• Wachovia upgraded LMI Aerospace (NASDAQ: LMIA) based on valuation and potential catalysts that include a production rate hike decision on the Boeing 737, an option on the 767 wing modification program, and Q1 earnings.
• Wachovia upgraded Smith & Nephew (NYSE: SNN) based on growth opportunities, strong reconstruction product cycle, and potential share gains, among other reasons.

OTHER UPGRADES:

• UBS upgraded James River Coal Co. (NASDAQ: JRCC) based on higher long-term coal prices.
• Merriman upgraded Denny’s Corp. (NASDAQ: DENN) because they believe that franchise growth initiative will reinvigorate the franchisees and put the company in a better position to beat estimates over the next year. The firm thinks investors need to refocus on the company’s core operating profitability.

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Filed under: Before the bell, General Motors (GM), Alcatel-LucentADS (ALU), Garmin Ltd (GRMN)

GM (NYSE:GM) is up 4% on strong earnings.

Panera Bread (NASDAQ:PNRA) is trading up over 7% on good numbers.

Alcatel-Lucent (NYSE:ALU) is off 8% on a weaker-than-expected forecast.

Garmin (NASDAQ:GRMN) is down over 5% on news that it had missed earnings estimates.

Stocks may trade differently in the pre-market than they do the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

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The California Association or Realtors on Friday came out with another press release showing how dismal the market has gotten. Sales have fallen 24.5 percent from a year ago but the more shocking development is the price of a median home in the state is now off by 29 percent. This is shocking […]
Related Posts:
■You Can Kiss $2.84 Trillion in Housing Equity Goodbye: The Continued Decline in Real Estate.
■Sales Drop Their Pants in Southern California. In More News, Median Prices Still Strong Like Arnold Schwarzenegger.
■Foreclosures? Housing Bubble? In Southern California? Impossible!
■The End of the Tribe of Housing: Breaking Down the National Housing Neurosis.
■Real Homes of Genius: Today we Salute you Huntington Park. Sold 3 Times in 4 Years.

The California Association or Realtors on Friday came out with another press release showing how dismal the market has gotten. Sales have fallen 24.5 percent from a year ago but the more shocking development is the price of a median home in the state is now off by 29 percent. This is shocking in itself but if we are to look at the peak price reached in April of 2007, we get a more stunning picture:

California Median Price

April 2007: $597,640

March 2008: $413,980

That translates to a stunning 30.73 percent drop in less than one year. Is it time for us to throw in the white towel and call the bottom? After all, we had so many folks telling us that the bottom would be reached once prices dropped 20 or 30 percent. Aside from these people smoking peyote and having visions of housing past, we are nowhere close to a bottom. There are more nuggets of information in the release:

“Highlights of C.A.R.’s resale housing figures for March 2008:

* C.A.R.’s Unsold Inventory Index for existing, single-family detached homes in March 2008 was 11.6 months, compared with 7.6 months for the same period a year ago. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

* · Thirty-year fixed-mortgage interest rates averaged 5.97 percent during March 2008, compared with 6.16 percent in March 2007, according to Freddie Mac. Adjustable-mortgage interest rates averaged 5.12 percent in March 2008, compared with 5.44 percent in March 2007.

* · The median number of days it took to sell a single-family home was 56.7 days in March 2008, compared with 52.9 for the same period a year ago.”

Things still look grim and the fact that we’ve increased inventory by 4 months over the past year will only put additional pressure on prices. You would think that a massive 30 percent drop would humble a few pundits but here come the bottom callers!

“Alan Nevin, chief economist for the California Building Industry Association and San Diego-based MarketPointe Realty Advisors, predicted foreclosure sales could account for as many as 15,000 out of 25,000 total sales this year. But at some point, the foreclosures will drop off, he Nevin said.

“Anybody who’s going to walk away from a house or condo has already done it,” Nevin said. “Now it’s just a matter of the pig going through the snake.”

Bwahahaha! Let me catch my breath again. Bwahahaha! Anyone that is planning to walk away has already done so? This is amazing given the fact that California now has the 3^rd highest unemployment rate in the entire country:

The trend in regard to unemployment is quickly increasing. Given the enormous dependency on housing especially in the state, many jobs are now being shed off like snake skin (if we want to continue with that imagery) and more public sector jobs will be lost as well given the precarious state of our $16 billion budget short fall in the state. We can debate that we are reaching a bottom but how are these phantom buyers going to buy their homes? Also, don’t you think that these people would have already bought? I’m simply amazed how people think we are at a bottom especially here in California.

In the first quarter of 2008, we had 110,392 homes with notice of defaults out. Given the default rates on these we came out with the following estimate:

(110,392 individual homes with NODs for Q1 of 2008) x 68% will not go current = 75,066

Clearly we are nowhere near a bottom and all signs are pointing to more challenging times ahead. But wait! What’s that? It’s A Bird, It’s A Plane, It’s Super Wal-Mart Voucher Checks!

“Tax rebates are starting to arrive in bank accounts. But many economists doubt that they will keep the economy from recession.

The stimulus package, passed with overwhelming bipartisan support earlier this year, will give rebates to about 130 million Americans, costing the U.S. Treasury more than $110 billion. Married taxpayers earning $150,000 or less will get up to $1200 while single taxpayers earning $75,000 will receive up to $600.

But since the measure passed Congress, there have been growing signs that the U.S. economy has already fallen into recession.”

Don’t get too excited when you get a notification telling you a nice $600 or $1,200 arrived into your account. This money is being pulled out of thin air and will only put more inflationary pressures into a market where everything is going up. I’m amazed how some folks truly believe that this tiny amount of money is going to help budgets like this $25,000 a year budget or this $100,000 a year budget. I’ll leave you with a poster based on those inspirational one’s you always see (forgive my poor Microsoft Paint skills):

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Related Posts:
■You Can Kiss $2.84 Trillion in Housing Equity Goodbye: The Continued Decline in Real Estate.
■Sales Drop Their Pants in Southern California. In More News, Median Prices Still Strong Like Arnold Schwarzenegger.
■Foreclosures? Housing Bubble? In Southern California? Impossible!
■The End of the Tribe of Housing: Breaking Down the National Housing Neurosis.
■Real Homes of Genius: Today we Salute you Huntington Park. Sold 3 Times in 4 Years.

Via [DrHousingBubble]

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Filed under: Yahoo! (YHOO), Corning Inc (GLW), Merck and Co (MRK), Genentech Inc (DNA)

Despite today’s major markets showing a drop, this would really look like another mixed day on fairly light trading volume as profits fight economic numbers. Oil fell more than $3.00 per barrel and consumer confidence came in at a 5-Year low. Foreclosures also have risen by more than 100% with what now appears to be 1 home per 194 that are in foreclosure. All this is one day ahead of the FOMC meeting with the decision to raise rates, and one day after Warren Buffett called a recession already here. Below are the unofficial closing prices for major US index averages:

• DJIA 12,836.01 (-35.74; -0.28%)
• S&P500 1,391.24 (-5.13; -0.37%)
• NASDAQ 2,426.10 (+1.70; +0.07%)
• 10-YR TBond 3.825% (-0.01%)
• 52-WEEK LOWS
• Top Analyst Calls

Biogen Idec Inc. (NASDAQ: BIIB) and Genentech, Inc. (NYSE: DNA) both saw shares flounder with shares down 4.8% at $61.53 and down 6.4% at $68.47 respectively late in the day. This morning the companies announced that Rituxan was a total bust in treating lupus.

Continue reading Closing Bell: Late selling, mixed bag ahead of the FOMC

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Filed under: Google (GOOG), Apple Inc (AAPL), eBay (EBAY), General Electric (GE), Pfizer (PFE), Wal-Mart (WMT), Toyota Motor Corp. (TM), Walt Disney (DIS), Caterpillar (CAT), Netflix, Inc. (NFLX), Citigroup Inc. (C), Goldman Sachs Group (GS), Xerox Corp (XRX), Southwest Airlines (LUV), BP p.l.c. ADS (BP), Marriott Intl’A’ (MAR), Contl Airlines’B’ (CAL), Honeywell Intl (HON)