Thursday, June 28, 2012

Stock close off of lows....

Dow -24.75
Nas -25.83
S&P -2.81

Late news that Germany's Angela Merkle cancelled the planned EU Summit conference call this evening was seen as a least for today.

Losers: Retail, Tech, Precious Metals, and Restaurants.
Gainers: Healthcare providers, Home Builders, Oil Services.

Monster Beverage to be added to S&P 500; Sara Lee deleted as of 6/28

Sara Lee (SLE) is spinning off its international Coffee & Tea business to shareholders in a transaction expected to be effective after the close of trading on that date.

Companies reporting Before the Market Open on Friday, June 29

Notable companies reporting after the closing bell include Constellation Brands (STZ), Finish Line (FINL), and KB Home (KBH).

Companies reporting After the Market Close on Thursday, June 28

Notable companies reporting after the closing bell include Accenture (ACN), AZZ (AZZ), CalAmp (CAMP), Nike (NKE), and TIBCO (TIBX).

Who Cares....

Google announces Chrome version for iPhone, iPad, TechCrunch reports

Google (GOOG) announced the launch of a Chrome browser version for iPhone and iPad users, TechCrunch reports. The app will hit Apple's (AAPL) App Store today and allow users to sync all their devices.

Silver Looks like it has already broken down....

Here's the Silver ETF (SLV):

Gold ETF Breaking key level...

Be careful if you own Gold.  Bearish Triangle Pattern forming.  Looks like this one could accelerate lower.

Nordstrom (JWN) to open first full-line store in NYC

Nordstrom has finalized an agreement with Extell Development Company to build Nordstrom's first full-line store in New York City. This new flagship store will open along Manhattan's bustling 57th Street corridor at 225 West 57th Street, between Broadway and Seventh Avenue, in the Columbus Circle area of Manhattan. The 285,000 square-foot store is expected to open in 2018.

Vertex Pharmaceuticals (VRTX) weakness creates buying opportunity, says Piper Jaffray

After a test of Vertex's KALYDECO +VX-809 in cystic fibrosis patients indicated that the drug failed to improve lung functioning by a statistically significant amount, Piper still believes that Vertex's cystic fibrosis franchise represents a blockbuster opportunity. The firm reiterates a $75 target and Overweight rating on the stock.

Potash CEO says sees no new potash mines for five years, Reuters reports

Potash (POT) CEO Bill Doyle says he doesn't see any new potash mines beginning production between now and 2017, Reuters reports. Doyle says it takes an "enormous" amount of time to develop a new potash mine. It is unclear whether Doyle predicts no new potash mines just in Canada or globally.

Healthcare insurers retreat after Supreme Court upholds healthcare law

The Supreme Court found that the vast majority of the healthcare reform law, including its insurance mandate, is constitutional. In a 5-4 decision, the court held that Congress' taxing power under the Constitution gave it the authority to impose the mandate. The five justices who voted to uphold the law say that the law's penalty for not buying healthcare insurance is a tax. The court's majority ruled that the law's expansion of Medicaid is constitutional, but added that states who choose not to meet the law's Medicaid requirements may not be deprived of all of their Medicaid funding, according to SCOTUSblog. Instead, such states can only be deprived of new Medicaid funding, the blog quotes the court's majority as saying. Most large insurance companies fell following the court's decision. The law contains provisions that limit the profits of the insurers while placing costly mandates on them. On the other hand, hospital stocks are climbing, as the mandate is expected to help hospitals obtain more payments from poor patients. 

Healthcare Facilities should be bought on strength, says Citigroup

Citigroup said hospital stocks are the biggest beneficiary of the Supreme Court's healthcare decision and expects the group to trade materially higher. The firm said Universal Health (UHS) and HCA Holdings (HCA) have favorable assets but lower leverage than Community Health (CYH) and Tenet Healthcare (THC).

Lululemon Athletica puts active on speculation Einhorn is short

Lululemon Athletica July 55 and 60 puts are active on total put volume of 8K contracts (3K calls). July put option implied volatility is at 59, August is at 49; compared to its 26-week average of 50 according to Track Data, suggesting larger near term price movement on speculation David Einhorn is short.

Hospitals rally after healthcare law mandate upheld

Hospital stocks are climbing after the Supreme Court upheld the healthcare law's insurance mandate in a 5-4 decision. The mandate is expected to help hospitals obtain more payments from poor patients. In mid-morning trading, Tenet Healthcare (THC) jumped 6.63% to $5.31, Community Health (CYH) rallied 5.22% to $26.82, HCA Holdings (HCA) rallied 7.37% to $28.57, and LifePoint Hospitals (LPNT) rallied 5.20% to $40.47.

Obamacare Upheld by Supreme Court...

In a victory for President Barack Obama, the Supreme Court decided to uphold his signature health care law's individual insurance mandate in a 5-4 decision, upending speculation after hostile-seeming oral arguments in March that the justices would overturn the law. The mandate has been upheld as a tax, with Chief Justice John Roberts, a Bush appointee, joining the liberal wing of the court. Tom Goldstein of SCOTUSblog says Roberts' vote "saved" the Affordable Care Act.


Google Inc. (GOOG). The internet search company expects to roll out a consumer version of its electronic eyewear that can live-stream images and audio and perform computing tasks in less than two years, though it stopped short of putting a price tag on the "smart" glasses. Google Glass, as the technology is known, will be sold to consumers at a price "significantly" lower than the $1,500 that the company is selling it to U.S.-based software developers from early next year, Google co-founder Sergey Brin said.

Smart Glasses for Idiots!!!  I can see idiots driving a car while surfing the internet on their "smart glasses."

This one looks like a good short...

Progress Software Corp. (PRGS). The business software maker reported second quarter adjusted earnings of 21 cents per share on revenue of $114.6 million. Due to continued anticipated disruption, the company is not providing guidance for the third quarter ending August 31, 2012. For fourth-quarter it expects core revenue to be in the range of $90 to $95 million.

Try to read this earnings release....Unbelievably inconsistent...No guidance for next quarter (Q3), but guidance for Q4...What???   I see this one heading MUCH lower.

News Corp board approves company split - source

The board of News Corp approved in principle splitting the $60 billion media conglomerate into separate publishing and entertainment businesses, a person familiar with the situation said on Thursday.


The New York Times says the losses from JPMorgan Chase’s (JPM) derivatives trades may reach as high as $9 billion, compared to initial estimates of about $2 billion.

JPM is trading down 1.25 to 35.52 premarket.

BlackBerry maker's cash burn emerges as pressing concern

On Thursday, RIM is expected to post an adjusted loss of 8 cents a share in the three months to June 2, according to the average estimate of 37 analysts polled by Reuters. Revenue is expected to come in at $3.15 billion, a 35 percent decline from a year earlier.

Earnings Due today...

Family Dollar (FDO) is among the companies out with earnings this morning, along with American Greetings (AM) and Schnitzer Steel (SCHN). After the bell, we’ll see widely-watched quarterly reports from beleaguered BlackBerry maker Research In Motion (RIMM) and athletic footwear and apparel maker Nike (NKE). Consulting firm Accenture (ACN) is also scheduled to report after the bell.

Good Morning....

Wall Street looks set to open lower as divisions among the region’s leaders fuelled hopes of concrete measures at the latest European Union summit to tackle the region's debilitating debt crisis. Economic data scheduled for release includes first-quarter real GDP numbers, corporate profits and initial jobless claims. The euro hit a three-week low and European shares fell, led by weaker banking stocks. Asian indices rounded out mixed. Oil and gold trading lower.

Wednesday, June 27, 2012

Stocks close higher....

Dow +92.34
Nas + 21.26
S&P +11.86

Nice day for Pharmaceuticals...rough day for Restaurant stocks....

Google Nexus 7 to be available starting at $199

Purchasers of the device will also get $25 to use on Google Play, a Transformers Movie, a book ,and several magazines for free. The device will start shipping in mid-July.

Google introduces 7-inch tablet called Nexus 7

The device was built in partnership with computer company ASUS, will run Jelly Bean, is optimized for Google Play, and is "super-thin," Google says. Games are "extremely fast and smooth" on the tablet, Google says, adding that its battery will support up to nine hours of video playback. It uses a Tegra 3 chipset and a 1280x800 HD Display, and has the portability of a paperback book, the company added.

Arena diet dug Lorcaserin approved by FDA, Bloomberg says

Arena Pharmaceuticals trading halted, pending news

Note today is the FDA action date for the company's diet drug. :

Germany's Linde eyeing Lincare Holdings, FT Alphaville reports

Suitors are eyeing Lincare Holdings, a Florida-based provider of oxygen, respiratory and other chronic therapy services to patients in the home, sources tell the FT's Alphaville. Germany's Linde is said to be leading the bidding, and the sources say the purchase price is potentially $40 or more per share, valuing Lincare at about $3.4B.

Microsoft says tablets will outsell PCs in 2013, Reghardware reports

Microsoft (MSFT) says Windows 8 will be the driving force that shifts sales to tablets versus PCs in 2013, according to

Exxon Mobil CEO says domestic natural gas prices are too low, Reuters says

Exxon Mobil (XOM) CEO Rex Tillerson said U.S. natural gas prices are not sustainable for the energy industry to cover the cost of finding and producing new supply, reports Reuters. In a presentation at the council of Foreign Relations, Tillerson said "we are all losing our shirts today."

Chipotle (CMG) Q2 revenues trending below estimates, says ITG

ITG said Chipotle Q2 revenues are trending at $700M, below consensus of $706M, on continued strong check and traffic growth.

CMG is down $20 to $395.25 this morning....

U.S. pending homes sales index rebounded 5.9% to 101.1 in May

U.S. pending homes sales index rebounded 5.9% to 101.1 in May, erasing the 5.5% drop in April to 95.5. This matches March's level which was the highest since April 2010. The improvement is consistent with some generally more positive housing data reported this week. The index was up in each of the four regions surveyed, paced by the 14.5% surge in the West. On an annual basis, the index is up 15.3% y/y versus 14.7% previously.

Entropic Communications (ENTR) sees upside to revenue and EPS in Q2

Entropic Communications announced expected revenue in Q2 of 2012 will be stronger than the company's previous outlook, which was provided on April 24. Entropic expects to release financial results for Q2 on August 1. At that time, the company will review its quarterly results and provide an outlook for Q3 of 2012.

The stock is up to $5 from a close of $4.08 yesterday....

Perrigo (PRGO) receives FDA approval and launches new products

Perrigo announced that it has received final approval from the U.S. Food and Drug Administration for its abbreviated new drug application for clindamycin phosphate and benzoyl peroxide 1.2% / 5% topical gel, the generic equivalent of Duac Gel. Perrigo acquired the ANDA in 2009, transferred production to a Perrigo manufacturing facility, and submitted an amendment to the ANDA, which was the first submission with a paragraph IV certification, Perrigo may be entitled to 180-days of marketing exclusivity and FDA has deferred determining Perrigo's exclusivity period until there is another ANDA in condition for approval. Patent litigation for this product was dismissed with prejudice in 2009. Perrigo has commenced shipment of the product.

O'Reilly Automotive (ORLY) sees Q2 EPS at lower end of $1.13-$1.17 range Q2...consensus is $1.19.

O'Reilly Automotive lowers Q2 SSS guidance to 2%-2.5% from prior 3%-5%

Greg Henlsee, CEO and Co-President stated, "Our previously announced second quarter comparable store sales guidance reflected our slow start to the quarter in April due, we believed, to the shift of some business into the first quarter as a result of the early spring weather in many of our markets, and we expected sales trends would stabilize as the quarter progressed. We saw improved comparable store sales results for the month of May; however, comparable store sales in June were below our expectations, and we now expect comparable store sales for the second quarter to finish in the range of 2.0% to 2.5%."

Zynga (ZNGA) price target lowered to $9 from $13 at Piper Jaffray

Piper Jaffray believes Zynga made no progress in addressing key investor concerns at its event yesterday, but continues to feel the stock is undervalued at current levels. The firm lowered its price target for shares and keeps an Overweight rating on the name.

Arena Pharmaceuticals (ARNA) shares rally ahead of PDUFA

Shares of Arena Pharmaceuticals are up huge in the last week ahead of today's PDUFA date for the company's obesity drug Lorcaserin. Piper attributes a lot of the share volume to retail investors, and points out Arena is a heavily shorted name. Piper believes Lorcaserin is well positioned to penetrate the large global obesity market and sees further stock upside should the FDA approve the drug.


U.S. stock index futures pointed to a mixed open as investors remained on the sidelines ahead of the June 28-29 EU Summit, which is expected to do little to resolve the region’s debt crisis. Major economic data like durable goods and pending home sales are scheduled to be released. Best Buy Co Inc will be in focus after sources said it is working with banks including Credit Suisse to explore a potential private takeover of the world's largest consumer electronics retailer. European shares surrendered most of their early gains, with cyclical shares losing ground. Most Asian shares ended higher. Oil and gold were lower.


• Europe's leaders at odds before summit

European leaders sound unusually divided before a high-stakes summit, with Germany's Angela Merkel saying total debt liability would not be shared in her lifetime and giving little support to Italian and Spanish pleas for immediate crisis action.

• Judge halts sales of Samsung Galaxy Tab in U.S.

A U.S. judge on Tuesday backed Apple Inc's request to stop Samsung Electronics selling its Galaxy Tab 10.1 tablet in the United States, giving the iPhone maker a significant win in the global smartphone and tablet patent wars.

• Planned Google tablet to rival Amazon

Google Inc will soon unveil a tablet co-branded with Taiwan's Asustek Computer Inc and priced to compete with Amazon's Kindle Fire device, an Asustek executive said.