7/10T8:20 Co in the News

WYNN Wynn Resorts: Color on Q2 preannouncement (77.56 ) -Update-
Jefferies notes yesterday WYNN preannounced 2Q08 earnings. Firm says the preliminary results make them even more confident about WYNN going forward than ever. EBITDA in Las Vegas was in line despite bad luck and EBITDA in Macau surpassed firm's expectations by a large margin. Wynn has proven its fundamentals are strong and has continued to exceed expectations. Firm's main thesis on the stock continues to be the development pipeline. THey see Wynn with strong future growth both in Las Vegas and Macau. Firm also sees strong potential for WYNN to win a casino license in Japan if/when the country goes in that direction... Keybanc notes WYNN released preliminary property detail for both Las Vegas and Macau after the close yesterday. This is not usual for the Company, but welcomed after the disappointing Nevada gaming numbers for May and likely to provide a short-term bounce in the shares. EBITDAs from both properties were better than firm expected and given the weakness at Wynn Las Vegas' casino floor, this is impressive. Firm is still trying to understand the disconnect between much lower than forecast Las Vegas casino activity, yet better than expected EBITDA. Although firm's $0.68 EPS est feels low right now, they will not be changing their EPS estimate. Tgt cut to $63 from $70.

FNM and FRE plunge in pre-market trading, oil sets new high, equity futures sink
FNM (-27%) and FRE (-32%) are plunging in pre-mkt trading, leading to weakness in equity futures (Dow futures -97 pts, SPX futures -14). There are reports out this morning suggesting the govt is considering a plan to have the govt take over one or both of Fannie Mae (FNM) and Freddie Mac (FRE) and place them in a conservatorship if their problems worsen. Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee would be paid by taxpayers... Oil also hit a new all time high of 145.98 this morning, which isn't helping equity futures either... This negative news is taking center stage despite a positive earnings report out of GE.