E*Trade Financial (ETFC) believes additional deterioration in the fair value of its $3 billion asset-backed securities portfolio observed since Sept. 30 will likely result in write-downs that exceed previous expectations; investors should no longer expect these earnings levels to be achieved. It says total exposure to ABS collateralized debt obligations was about $450 million in amortized cost. Citigroup reportedly downgrades to sell.
Microsoft (MSFT) shares were down after Merrill Lynch reportedly downgrades to neutral from buy.
Countrywide Financial (CFC) says in its Form 10-Q that debt and secondary mortgage market conditions could have a material adverse impact on its earnings and financial condition.
Cognos (COGN) agrees to be acquired by IBM (IBM) in $4.9 billion deal. Terms: $58 cash per COGN share.
Tyson Foods (TSN) posts lower-than-expected $0.09 fourth quarter EPS, vs. $0.17 loss a year ago, on 6.2% sales rise. It sees fiscal year 2008 EPS of $0.30-$0.70, below the current consensus view of $1.08.
United Technologies (UTX) says its Sikorsky Aircraft Corp. unit signed direct commercial sale contract with the United Arab Emirates (U.A.E.) for 10 S-70A Black Hawk helicopters to upgrade the fleet used by U.A.E. Armed Forces.