U.S. Markets
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S&P 500 +22.74 (+1.68%)
News That Moved the Market
Markets Rally On Upbeat News From MBIA. Markets had a strong day, with all major sectors finishing higher. After Wednesday's late sell off, despite the Fed cutting 50 basis points, it was important for the markets to bounce back. Arguably the biggest catalyst for the up move was news from bond insurer MBIA (MBI, +6.7%) which reassured investors that it had enough capital to keep its AAA rating and said it would not go bankrupt. MBIA also announced it lost $2.3 billion last quarter, but investors were more worried about the company's future than its past performance.
Google Misses Targets. Google (GOOG, +2.1% day; -7.9% A.H.) fell after posting a 17% increase in profits and a 51% jump in revenue. The figures were short of analysts' estimates. The company's share of the Internet search market rose to 56.3% from 50.8% at the end of last year.
Mixed Economic News. The Department of Labor reported jobless claims increased to 375,000, much higher than expected. The news created fears that tomorrow's Jobs Report would disappoint, but the data was only for one week, and does not carry too much weight. The Department of Commerce announced December personal income increased 0.5%, while spending rose 0.2%. Both figures were basically in-line with estimates. Employment costs increased 0.8%, which was in-line with forecasts.
January Barometer. The S&P 500 finished down 6.1% in January, a bad sign for things to come. The so-call "January Barometer" says the first month of the year determines the performance for the whole year. Though it sounds odd, it has been correct 80% of the time since 1950.
Tomorrow Notable Earnings:
Chevron (CVX) Before Open
Exxon (XOM) Before Open
Economic Events:
Motor Vehicle Sales
8:30 AM: Monthly Jobs Report
8:30 AM: ISM Mfg Index
10:00 AM: Consumer Sentiment
10:00 AM: Construction Spending
Thursday, January 31, 2008
Notable Movers:
Potash (POT) up 4.50 to $140.71 - POT was down 6 points on the open today in sympathy with selloff in Peobody Energy
Gamestop (GME) up 2.27 to $51.35 - GME held up nicely around support at $48
Chipotle Mexican Grill (GMG) up 4.79 to $119.86 - CMG was hit hard earlier in the week as parent company (McDonald's) sold off
Zumiez (ZUMZ) up 1.44 to $19.26 - ZUMZ fell to 14 on Jan 22, has since rebounded with Retail stocks.
Google (GOOG) up 14 to $562 - up ahead of tonight's earnings report. Option traders say this stock could go $50 either way after they announce.
Gamestop (GME) up 2.27 to $51.35 - GME held up nicely around support at $48
Chipotle Mexican Grill (GMG) up 4.79 to $119.86 - CMG was hit hard earlier in the week as parent company (McDonald's) sold off
Zumiez (ZUMZ) up 1.44 to $19.26 - ZUMZ fell to 14 on Jan 22, has since rebounded with Retail stocks.
Google (GOOG) up 14 to $562 - up ahead of tonight's earnings report. Option traders say this stock could go $50 either way after they announce.
Mortgage Rates Start to Move Higher.....
U.S. fixed-rate mortgages rose for the first time in five weeks, according to Freddie Mac's survey released Thursday. The national average interest rate on the benchmark 30-year, fixed-rate loan averaged 5.68% in the week ending Thursday, up from 5.48% a week ago, but down from 6.34% a year ago.
Basically, the market is telling you that the Fed is done cutting rates and maybe we're not going to fall into a recession....
Basically, the market is telling you that the Fed is done cutting rates and maybe we're not going to fall into a recession....
Washington Mutual Climbs Back to $20...
In the last 15 minutes, WM has accelerated higher...
Now up 1.35 to $20.00
Now up 1.35 to $20.00
Potash (POT) Down in Sympathy with Peabody...
POT - 2.55 to $133.70
This looks like a Buying Opportunity. Did traders forget Potash's earnings report last week. A blowout and the company guided higher.
This looks like a Buying Opportunity. Did traders forget Potash's earnings report last week. A blowout and the company guided higher.
Jetblue Continues to Break Off Bottom....
We pointed out on Monday, that JBLU was looking good at $5.00.
The stock is up another .21 to $6.57 this morning.
Another winner!!!
The stock is up another .21 to $6.57 this morning.
Another winner!!!
Crocs in Full Breakout Mode Now....
CROX up .31 to $32.87
We highlighted this stock on Monday and pointed out that $31 was a breakout point.
We highlighted this stock on Monday and pointed out that $31 was a breakout point.
Mastercard Blowing and Going....
Mastercard is up 18 right now to $207.
I thought the consumer was dead???
I thought the consumer was dead???
Nutrisystem continues to climb....
NTRI up .20 to $27.91
We have noticed that the company's new weight loss project: Tori Spelling - former star of Beverly Hills 90210. Looks like they are now going after the 20-something crowd....or maybe she's 30-something.
We have noticed that the company's new weight loss project: Tori Spelling - former star of Beverly Hills 90210. Looks like they are now going after the 20-something crowd....or maybe she's 30-something.
Under Armour Beats Reduced Estimates...
Under Armour Inc.'s (UA) fourth-quarter net income rose 42% to $16.9 million, or 34 cents a share, from $11.9 million, or 24 cents, a year earlier. The Baltimore athletic wear company said revenue for the quarter ended Dec. 31 rose 29.2% to $174.8 million from $135.3 million a year earlier.
Analysts polled by Thomson Financial, on average, projected earnings of 31 cents a share on revenue of $174 million.
For the first half of 2008, Under Armour projects earnings of 3 cents a share to 5 cents a share. Looking ahead, the company expects annual net revenue of $765 million to $775 million for 2008, an increase of 26% to 28% over 2007. The company also expects income from operations of $108.5 million to $110.5 million, an increase of 26% to 28% over 2007.
Under Armour's stock is breaking off a bottom here (up 1.62 to $39.20). Its 52-week high was at $73 back in August.
Analysts polled by Thomson Financial, on average, projected earnings of 31 cents a share on revenue of $174 million.
For the first half of 2008, Under Armour projects earnings of 3 cents a share to 5 cents a share. Looking ahead, the company expects annual net revenue of $765 million to $775 million for 2008, an increase of 26% to 28% over 2007. The company also expects income from operations of $108.5 million to $110.5 million, an increase of 26% to 28% over 2007.
Under Armour's stock is breaking off a bottom here (up 1.62 to $39.20). Its 52-week high was at $73 back in August.
Boeing Beats Estimates....
Boeing beats, easing concerns over Dreamliner delays. Boeing (BA) reported a 4% rise in Q4 profit to $1.03 billion ($1.36/share), $0.04 ahead of analyst forecasts. Revenue was flat at $17.5 billion. Boeing also raised 2008 EPS guidance to $5.70-5.85 from $5.55-5.75. Shares rose 2.32%.
Boeing shares are down 1.32 to $81.55
Boeing shares are down 1.32 to $81.55
Sony Beats Estimates, Cuts PS3 Target...
Sony (SNE) reported Q3 EPS of $1.67 vs. consensus estimates of $1.31. Q3 revenue of $25.08B was well ahead of Street consensus of $24.82B. Sony cut its 2007 forecast to 9.5M PlayStation 3 sales from 11M.
Shares are down 1.32 to $46.18
Shares are down 1.32 to $46.18
Shell Posts "Obscene" Profit....
Royal Dutch Shell (RDS.A) reported full-year earnings on Thursday of $27.6 billion (£14 billion), a record not just for the oil giant but for any European company. High oil prices compensated amply for weak refining margins and lower oil and gas production.
The profit was labeled "obscene" by Tony Woodley, joint general secretary of British trade union Unite, and "absolutely scandalous" by the motorist organization Road Haulage Association.
The profit was labeled "obscene" by Tony Woodley, joint general secretary of British trade union Unite, and "absolutely scandalous" by the motorist organization Road Haulage Association.
Mastercard Up on Internet Transactions...
MasterCard beats by $0.17, beats on revs (MA) (Stock at $189.00): Reports Q4 (Dec) earnings of $0.89 per share, excluding non-recurring items, $0.17 better than the First Call consensus of $0.72; revenues rose 27.8% year/year to $1.07 bln vs the $0.98 bln consensus.
Co reports Q4 gross dollar volume up 15.2% vs 12.8% prior, purchase volume up 16.1% vs 14.1% prior.
Co reports Q4 gross dollar volume up 15.2% vs 12.8% prior, purchase volume up 16.1% vs 14.1% prior.
Starbucks Experiences Minimal Earnings Growth...
Starbucks (SBUX). The Seattle-based coffee giant said late Wednesday first-quarter net earnings rose to $208.1 million, or 28 cents a share, up 1.5% from $205 million, or 26 cents a share, in the same period a year earlier. The latest results were hurt by incremental interest expense related to the company's inaugural senior notes offering during the fourth quarter of 2007, the company said. Net revenue for the first quarter ended Dec. 30 rose 17% to $2.77 billion.
For 2008, Starbucks said it expects "low double digit" per-share profit expansion, citing "continued macroeconomic weakness." The company said it has slowed the pace of store growth in the United States to about 1,175 stores in 2008, down from a revised target of 1,600 stores. It also has increased the store opening target in international markets to about 975 stores.
The stock is down nearly $1 to $18.29 premarket.
For 2008, Starbucks said it expects "low double digit" per-share profit expansion, citing "continued macroeconomic weakness." The company said it has slowed the pace of store growth in the United States to about 1,175 stores in 2008, down from a revised target of 1,600 stores. It also has increased the store opening target in international markets to about 975 stores.
The stock is down nearly $1 to $18.29 premarket.
MBIA Takes Unprecedented losses...
MBIA Inc. (MBI). The New York-based bond insurer said today it slipped into a fourth quarter loss on the back of "unprecedented" loss reserving and impairment activity. For the three months ended Dec 31, MBIA reported a net loss of $2.3 billion, or $18.61 per share, compared with a $181 million profit, or $1.32 per share the same time last year.
For the full year, the group reported a loss of $1.9 billion, or $15.22 per share, against a profit of $819.3 million, or $5.99 per share last time.
The stock traded down over $2 per share after the close.
For the full year, the group reported a loss of $1.9 billion, or $15.22 per share, against a profit of $819.3 million, or $5.99 per share last time.
The stock traded down over $2 per share after the close.
Hologic to Split 2 for 1....
Hologic Inc. (HOLX). The Beford, Mass.-based medical supply company said late Wednesday it has approved a two-for-one stock split, to be effected in the form of a stock dividend.
Subject to stockholder approval, the record date for the stock split will be March 21 and the payment date will be April 2. The proposed stock split will increase the number of shares of common stock outstanding to 255.4 million from 127.7 million.
The stock closed yesterday at $61.80.
Subject to stockholder approval, the record date for the stock split will be March 21 and the payment date will be April 2. The proposed stock split will increase the number of shares of common stock outstanding to 255.4 million from 127.7 million.
The stock closed yesterday at $61.80.
Eli Lilly May Pay $1 Billion Fine....
Eli Lilly & Co. (LLY). The Indianapolis, IN-based drug maker and federal prosecutors are discussing a settlement of a civil and criminal investigation into the company’s marketing of the antipsychotic drug Zyprexa that could result in Lilly’s paying more than $1 billion to federal and state governments, The New York Times reported on Wednesday, citing several sources close to the matter.
CVS Earnngs Up on Caremark Acquisition...
CVS Caremark Corp. (CVS). The Woonsocket, RI-based drugstore chains operator today reported adjusted fourth-quarter income of $861.1 million, or 58 cents a share. Including certain merger and integration costs, the company reported net income of $815 million, or 55 cents a share.
Net revenue for the quarter rose to $21.94 billion from $12.07 billion a year earlier. Same-store sales for the quarter rose 3.4% from a year earlier.
The stock has a strong level of support right here in the mid 30's.
Net revenue for the quarter rose to $21.94 billion from $12.07 billion a year earlier. Same-store sales for the quarter rose 3.4% from a year earlier.
The stock has a strong level of support right here in the mid 30's.
Amazon: Margins Fall...as does stock...
Amazon.com (AMZN). The Seattle-based web-based retailer Wednesday said fourth-quarter net income more than doubled to $207 million or 48 cents a share from $98 million or 23 cents a share profit recorded in the year-earlier period. Net sales for the quarter ending Dec. 31 rose 42% to $5.67 billion from last year's $3.99 billion.
The company said it expects first-quarter sales of $3.95 billion to $4.15 billion. For 2008, the company said it is targeting sales of $18.75 billion to $19.75 billion.
Shares of Amazon.com Inc. (AMZN) fell 12% to $65.16 in after-hours trading Wednesday after the company's gross margin fell to 20.6%, down from 23.4% in 3Q and 21.3% a year ago, and below the average analyst estimate of 21.4%.
The company said it expects first-quarter sales of $3.95 billion to $4.15 billion. For 2008, the company said it is targeting sales of $18.75 billion to $19.75 billion.
Shares of Amazon.com Inc. (AMZN) fell 12% to $65.16 in after-hours trading Wednesday after the company's gross margin fell to 20.6%, down from 23.4% in 3Q and 21.3% a year ago, and below the average analyst estimate of 21.4%.
Earnings Today...
Affiliated Computer Svcs Inc (ACS) 2Q .83
Altera Corp. (ALTR) 4Q .18 4:15PM
Anheuser-Busch Cos. Inc. (BUD) 4Q .32
Apache Corp. (APA) 4Q 2.31 BMO
AstraZeneca PLC (AZN) 4Q .95 6:00AM
bebe Stores Inc. (BEBE) 2Q .26
Bristol-Myers Squibb Co. (BMY) 4Q .34
Callaway Golf Co. (ELY) 4Q (.18)
Colgate-Palmolive Co. (CL) 4Q .89
Columbia Sportswear Co. (COLM) 4Q 1.01
CVS Caremark Corp. (CVS) 4Q .55 BMO
E.W. Scripps Co. (SSP) 4Q .70 BMO
Electronic Arts Inc. (ERTS) 3Q .78 AMC
Flowers Foods Inc. (FLO) 4Q .21
Gold Fields Ltd. (GFI) 2Q .13 1:00AM
Goodrich Corp. (GR) 4Q .91 BMO
Google Inc. (GOOG) 4Q 4.09
Hologic Inc. (HOLX) 1Q .45 8:00AM
ImClone Syss Inc. (IMCL) 4Q .24
Intuitive Surgical Inc. (ISRG) 4Q 1.03
Key Energy Svcs Inc. (KEG) 4Q .29
L-3 Commun Hldgs Inc. (LLL) 4Q 1.60 BMO
Marathon Oil Corp. (MRO) 4Q 1.05
MasterCard Inc. (MA) 4Q .70
Mattel Inc. (MAT) 4Q .72 6:00AM
Monster Worldwide Inc. (MNST) 4Q .37 AMC
Nasdaq Stock Market Inc. (NDAQ) 4Q .46 7:00AM
Newell Rubbermaid Inc. (NWL) 4Q .45 BMO
Peabody Energy Corp. (BTU) 4Q .69
Procter & Gamble Co. (PG) 2Q .97
Raytheon Co. (RTN) 4Q .90 6:00AM
RF Micro Devices Inc. (RFMD) 3Q .05 4:00PM
Sony Corp. (SNE) 3Q 1.53
Starwood Hotels & Resorts (HOT) 4Q .67 BMO
Tesoro Corp. (TSO) 4Q .12
Under Armour Inc. (UA) 4Q .31 7:00AM
Western Union Co. (WU) 4Q .31 7:30AM
Wyeth (WYE) 4Q 0.790
Altera Corp. (ALTR) 4Q .18 4:15PM
Anheuser-Busch Cos. Inc. (BUD) 4Q .32
Apache Corp. (APA) 4Q 2.31 BMO
AstraZeneca PLC (AZN) 4Q .95 6:00AM
bebe Stores Inc. (BEBE) 2Q .26
Bristol-Myers Squibb Co. (BMY) 4Q .34
Callaway Golf Co. (ELY) 4Q (.18)
Colgate-Palmolive Co. (CL) 4Q .89
Columbia Sportswear Co. (COLM) 4Q 1.01
CVS Caremark Corp. (CVS) 4Q .55 BMO
E.W. Scripps Co. (SSP) 4Q .70 BMO
Electronic Arts Inc. (ERTS) 3Q .78 AMC
Flowers Foods Inc. (FLO) 4Q .21
Gold Fields Ltd. (GFI) 2Q .13 1:00AM
Goodrich Corp. (GR) 4Q .91 BMO
Google Inc. (GOOG) 4Q 4.09
Hologic Inc. (HOLX) 1Q .45 8:00AM
ImClone Syss Inc. (IMCL) 4Q .24
Intuitive Surgical Inc. (ISRG) 4Q 1.03
Key Energy Svcs Inc. (KEG) 4Q .29
L-3 Commun Hldgs Inc. (LLL) 4Q 1.60 BMO
Marathon Oil Corp. (MRO) 4Q 1.05
MasterCard Inc. (MA) 4Q .70
Mattel Inc. (MAT) 4Q .72 6:00AM
Monster Worldwide Inc. (MNST) 4Q .37 AMC
Nasdaq Stock Market Inc. (NDAQ) 4Q .46 7:00AM
Newell Rubbermaid Inc. (NWL) 4Q .45 BMO
Peabody Energy Corp. (BTU) 4Q .69
Procter & Gamble Co. (PG) 2Q .97
Raytheon Co. (RTN) 4Q .90 6:00AM
RF Micro Devices Inc. (RFMD) 3Q .05 4:00PM
Sony Corp. (SNE) 3Q 1.53
Starwood Hotels & Resorts (HOT) 4Q .67 BMO
Tesoro Corp. (TSO) 4Q .12
Under Armour Inc. (UA) 4Q .31 7:00AM
Western Union Co. (WU) 4Q .31 7:30AM
Wyeth (WYE) 4Q 0.790
Subprime-related losses may surpass $265 billion....
Standard & Poor's estimates that banks, credit unions and foreign financial institutions may be hit with more than $265 billion in losses from securities tied to subprime mortgages. S&P is reviewing credit ratings on $534-billion worth of CDOs and bonds.
The ratings agency said it expects the next round of writedowns will be by smaller financial firms in the U.S., Europe and Asia.
The ratings agency said it expects the next round of writedowns will be by smaller financial firms in the U.S., Europe and Asia.
Wednesday, January 30, 2008
Earnings Expected Tomorrow....
Earnings Releases on Thursday...
Affiliated Computer Svcs Inc (ACS) 2Q .83
Altera Corp. (ALTR) 4Q .18 4:15PM
Anheuser-Busch Cos. Inc. (BUD) 4Q .32
Apache Corp. (APA) 4Q 2.31 BMO
AstraZeneca PLC (AZN) 4Q .95 6:00AM
bebe Stores Inc. (BEBE) 2Q .26
Bristol-Myers Squibb Co. (BMY) 4Q .34
Callaway Golf Co. (ELY) 4Q (.18)
Colgate-Palmolive Co. (CL) 4Q .89
Columbia Sportswear Co. (COLM) 4Q 1.01
CVS Caremark Corp. (CVS) 4Q .55 BMO
E.W. Scripps Co. (SSP) 4Q .70 BMO
Electronic Arts Inc. (ERTS) 3Q .78 AMC
Flowers Foods Inc. (FLO) 4Q .21
Gold Fields Ltd. (GFI) 2Q .13 1:00AM
Goodrich Corp. (GR) 4Q .91 BMO
Google Inc. (GOOG) 4Q 4.09
Hologic Inc. (HOLX) 1Q .45 8:00AM
ImClone Syss Inc. (IMCL) 4Q .24
Intuitive Surgical Inc. (ISRG) 4Q 1.03
Key Energy Svcs Inc. (KEG) 4Q .29
L-3 Commun Hldgs Inc. (LLL) 4Q 1.60 BMO
Marathon Oil Corp. (MRO) 4Q 1.05
MasterCard Inc. (MA) 4Q .70
Mattel Inc. (MAT) 4Q .72 6:00AM
Monster Worldwide Inc. (MNST) 4Q .37 AMC
Nasdaq Stock Market Inc. (NDAQ) 4Q .46 7:00AM
Newell Rubbermaid Inc. (NWL) 4Q .45 BMO
Peabody Energy Corp. (BTU) 4Q .69
Procter & Gamble Co. (PG) 2Q .97
Raytheon Co. (RTN) 4Q .90 6:00AM
RF Micro Devices Inc. (RFMD) 3Q .05 4:00PM
Sony Corp. (SNE) 3Q 1.53
Starwood Hotels & Resorts (HOT) 4Q .67 BMO
Tesoro Corp. (TSO) 4Q .12
Under Armour Inc. (UA) 4Q .31 7:00AM
Western Union Co. (WU) 4Q .31 7:30AM
Wyeth (WYE) 4Q 0.790
and Friday.....
Arch Coal Inc. (ACI) 4Q .47 BMO
Automatic Data Processing (ADP) 2Q .53 BMO
Chevron Corp. (CVX) 4Q 2.26
Cummins Inc. (CMI) 4Q 1.05
Exxon Mobil Corp. (XOM) 4Q 1.93
L.M. Ericsson Telephone Co. (ERIC) 4Q .55 1:30AM
Oshkosh Truck Corp. (OSK) 1Q .50
Simon Ppty Grp Inc. (SPG) 4Q .62 BMO
Tidewater Inc. (TDW) 3Q 1.55 BMO
Affiliated Computer Svcs Inc (ACS) 2Q .83
Altera Corp. (ALTR) 4Q .18 4:15PM
Anheuser-Busch Cos. Inc. (BUD) 4Q .32
Apache Corp. (APA) 4Q 2.31 BMO
AstraZeneca PLC (AZN) 4Q .95 6:00AM
bebe Stores Inc. (BEBE) 2Q .26
Bristol-Myers Squibb Co. (BMY) 4Q .34
Callaway Golf Co. (ELY) 4Q (.18)
Colgate-Palmolive Co. (CL) 4Q .89
Columbia Sportswear Co. (COLM) 4Q 1.01
CVS Caremark Corp. (CVS) 4Q .55 BMO
E.W. Scripps Co. (SSP) 4Q .70 BMO
Electronic Arts Inc. (ERTS) 3Q .78 AMC
Flowers Foods Inc. (FLO) 4Q .21
Gold Fields Ltd. (GFI) 2Q .13 1:00AM
Goodrich Corp. (GR) 4Q .91 BMO
Google Inc. (GOOG) 4Q 4.09
Hologic Inc. (HOLX) 1Q .45 8:00AM
ImClone Syss Inc. (IMCL) 4Q .24
Intuitive Surgical Inc. (ISRG) 4Q 1.03
Key Energy Svcs Inc. (KEG) 4Q .29
L-3 Commun Hldgs Inc. (LLL) 4Q 1.60 BMO
Marathon Oil Corp. (MRO) 4Q 1.05
MasterCard Inc. (MA) 4Q .70
Mattel Inc. (MAT) 4Q .72 6:00AM
Monster Worldwide Inc. (MNST) 4Q .37 AMC
Nasdaq Stock Market Inc. (NDAQ) 4Q .46 7:00AM
Newell Rubbermaid Inc. (NWL) 4Q .45 BMO
Peabody Energy Corp. (BTU) 4Q .69
Procter & Gamble Co. (PG) 2Q .97
Raytheon Co. (RTN) 4Q .90 6:00AM
RF Micro Devices Inc. (RFMD) 3Q .05 4:00PM
Sony Corp. (SNE) 3Q 1.53
Starwood Hotels & Resorts (HOT) 4Q .67 BMO
Tesoro Corp. (TSO) 4Q .12
Under Armour Inc. (UA) 4Q .31 7:00AM
Western Union Co. (WU) 4Q .31 7:30AM
Wyeth (WYE) 4Q 0.790
and Friday.....
Arch Coal Inc. (ACI) 4Q .47 BMO
Automatic Data Processing (ADP) 2Q .53 BMO
Chevron Corp. (CVX) 4Q 2.26
Cummins Inc. (CMI) 4Q 1.05
Exxon Mobil Corp. (XOM) 4Q 1.93
L.M. Ericsson Telephone Co. (ERIC) 4Q .55 1:30AM
Oshkosh Truck Corp. (OSK) 1Q .50
Simon Ppty Grp Inc. (SPG) 4Q .62 BMO
Tidewater Inc. (TDW) 3Q 1.55 BMO
So...we missed on the degree of the cut....
but the market sold off as we expected would happen with a 50 bp cut.
Now the Fed is out of ammo.
Now the Fed is out of ammo.
What Will the Fed Do???
We think they will cut 25 basis points.
The market will initially sell off and then rally and close higher....then the Fed saves 25 bps for a later cut if needed.
If they go 50 basis points, the Fed just shows that they are a slave to the traders. If they cut 50, then we think the market will sell off and stay lower.
Hey...we gotta predict something.
The market will initially sell off and then rally and close higher....then the Fed saves 25 bps for a later cut if needed.
If they go 50 basis points, the Fed just shows that they are a slave to the traders. If they cut 50, then we think the market will sell off and stay lower.
Hey...we gotta predict something.
VMware Catching a Bid This Morning....
VMW up 1.13 to $56.00.
The stock was obliterated yesterday (down nearly 30 points) on a slight miss in Revenues.
A little overdone on the downside...don't you think???
The stock was obliterated yesterday (down nearly 30 points) on a slight miss in Revenues.
A little overdone on the downside...don't you think???
Robert Half Rises After Earnings....
RHI up 1.30 to $26.15
Want a good economic indicator??? This is the stock.
Specialty staffing company Robert Half International Inc (RHI) reported higher quarterly profit on Tuesday, citing demand in its international divisions.
Earnings rose 4.5 percent to $78.8 million, or 50 cents per share, from $75.4 million, or 45 cents per share, a year earlier.
Analysts, on average, had expected a profit of 47 cents per share, according to Reuters Estimates.
Revenue rose 15 percent to $1.22 billion, compared with Wall Street forecasts for sales of $1.2 billion.
Want a good economic indicator??? This is the stock.
Specialty staffing company Robert Half International Inc (RHI) reported higher quarterly profit on Tuesday, citing demand in its international divisions.
Earnings rose 4.5 percent to $78.8 million, or 50 cents per share, from $75.4 million, or 45 cents per share, a year earlier.
Analysts, on average, had expected a profit of 47 cents per share, according to Reuters Estimates.
Revenue rose 15 percent to $1.22 billion, compared with Wall Street forecasts for sales of $1.2 billion.
PBM's Breaking Higher....
Express Scripps (ESRX) + 2.76 to $67.60
Medco Health (MHS) + 2.35 to $50.38
Looks like traders don't care that WalMart is entering the business.
Medco Health (MHS) + 2.35 to $50.38
Looks like traders don't care that WalMart is entering the business.
Check Out Rambus.....
Rambus (RMBS) up 1.40 to $17.92.
This is a crazy stock, but it tends to move in large waves. This is its first move higher since falling from $22 in December.
This is a crazy stock, but it tends to move in large waves. This is its first move higher since falling from $22 in December.
Shipping Stocks up again....
Dry Bulk Shipping stocks are up for the 2nd straight day.
Leaders:
DRYS + 2.90 to $65.35
DSX + 1.50 to $28.25
Leaders:
DRYS + 2.90 to $65.35
DSX + 1.50 to $28.25
Crocs (CROX) continues to break higher...
CROX +.75 to $31.35 on the open.
$31 is a key breakout level.
$31 is a key breakout level.
GDP Slows ....
US GDP Slows To 0.6% Growth In 4Q
U.S. gross domestic product rises at a 0.6% annual rate October through December, pulling growth for all of 2007 to its lowest speed in five years as the housing slump takes a heavy toll. Slowing consumer spending, inventory liquidation and lower overseas sales also restrain the economy.
U.S. gross domestic product rises at a 0.6% annual rate October through December, pulling growth for all of 2007 to its lowest speed in five years as the housing slump takes a heavy toll. Slowing consumer spending, inventory liquidation and lower overseas sales also restrain the economy.
ADP Sees US Private Sector Jobs Up 130,000
Payrolls giant Automatic Data Processing and consultancy Macroeconomic Advisers says U.S. private sector jobs increase by 130,000 in January, beating forecasts by big margins, setting stage for Friday's payrolls report from the Labor Department.
Stock Futures traded higher after this release.
Stock Futures traded higher after this release.
Baker Hughes...Another Miss...
Baker Hughes misses by $0.02, misses on revs (BHI) 73.44 : Reports Q4 (Dec) earnings of $1.26 per share, $0.02 worse than the First Call consensus of $1.28; revenues rose 11.7% year/year to $2.74 bln vs the $2.79 bln consensus.
Constellation Energy Beats...
Constellation Energy beats by $0.06, beats on revs; guides FY08 EPS in-line (CEG) 92.50 : Reports Q4 (Dec) earnings of $1.48 per share, excluding non-recurring items, $0.06 better than the First Call consensus of $1.42; revenues rose 12.3% year/year to $4.46 bln vs the $3.71 bln consensus.
Co issues in-line guidance for FY08, sees EPS of $5.25-5.75 vs. $5.61 consensus.
Co issues in-line guidance for FY08, sees EPS of $5.25-5.75 vs. $5.61 consensus.
Kraft Guides Lower...
Kraft Foods reports EPS in-line, beats on revs; guides FY08 EPS below consensus (KFT) 30.19 : Reports Q4 (Dec) earnings of $0.44 per share, in-line with the First Call consensus of $0.44; revenues rose 10.9% year/year to $10.4 bln vs the $10.05 bln consensus.
Co issues downside guidance for FY08, sees EPS of $1.90, excluding $0.34 in costs related to restructuring, vs. $1.94 consensus.
Co issues downside guidance for FY08, sees EPS of $1.90, excluding $0.34 in costs related to restructuring, vs. $1.94 consensus.
Merck...No Surprises, but Stock Lower...
Merck beats by $0.06, reports revs in-line; reaffirms FY08 EPS guidance (MRK) 48.01 : Reports Q4 (Dec) earnings of $0.80 per share, excluding non-recurring items, $0.06 better than the First Call consensus of $0.74; revenues rose 3.3% year/year to $6.24 bln vs the $6.29 bln consensus.
Co reaffirms guidance for FY08, sees EPS of $3.28-3.38, excluding non-recurring items, vs. $3.37 consensus.
Co reaffirms guidance for FY08, sees EPS of $3.28-3.38, excluding non-recurring items, vs. $3.37 consensus.
Boeing Lowers Guidance....
Boeing beats by $0.04, beats on revs; lowers FY08 rev guidance but raises FY08 EPS guidance (BA) 80.96 : Reports Q4 (Dec) earnings of $1.36 per share, $0.04 better than the First Call consensus of $1.32; revenues fell 0.4% year/year to $17.48 bln vs the $17.33 bln consensus. Co lowers its FY08 revenue guidance slightly to $67-68 bln, down from prior guidance of $67.5-68.5 bln and vs $69.6 bln consensus due to the 787 delay.
Co raises FY08 EPS guidance to $5.70-5.85 from $5.55-5.75, as productivity gains are being realized ahead of earlier plans, however it's still below consensus of $5.95.
Co raises FY08 EPS guidance to $5.70-5.85 from $5.55-5.75, as productivity gains are being realized ahead of earlier plans, however it's still below consensus of $5.95.
UPS Reports In-Line Earnings...
UPS reports EPS in-line, beats on revs; guides Q1 EPS in-line; guides FY08 EPS in-line (UPS) 70.92 : Reports Q4 (Dec) earnings of $1.13 per share, in-line with the First Call consensus of $1.13; revenues rose 6.1% year/year to $13.39 bln vs the $13.11 bln consensus. Co issues in-line guidance for Q1, sees EPS of $0.94-0.98 vs. $0.98 consensus.
Co issues in-line guidance for FY08, sees EPS of $4.30-4.50 vs. $4.45 consensus.
Co issues in-line guidance for FY08, sees EPS of $4.30-4.50 vs. $4.45 consensus.
Centex (CTX) Loss Widens....
Home Builder Centex's 3Q net loss widens to $975.2 million, or $7.94 a share, hurt by weakness in housing market. Quarter includes a non-cash charge of $500 million to establish a valuation allowance related to deferred tax assets. Revenue falls 30% to $1.91 billion
Tuesday, January 29, 2008
Daily Summary....
U.S. Markets
Dow +96.4
Nasdaq +8.15
S&P 500 +8.33
News That Moved the Market
Stocks Higher With Fed Looming. Markets finished the day up once again, as investors are looking forward to tomorrow's Fed announcement. A 25 basis point cut is already priced in, and Fed fund futures also indicate that the market sees a 74% chance the Fed will cut 50 basis points. Durable goods orders also gave a boost to the market, coming in with a 5.2% gain, easily beating economists' predictions of a 1.6% increase. Markets did drop after the Conference Board announced that consumer confidence fell to 87.9 from 90.6 in December, but they were able to recover with a late rally in the afternoon.
Stimulus Plans Goes to Senate. The House approved the $146 billion economic stimulus plan, which is expected to give rebate checks to 111 million Americans. The bill will now go to the Senate, where some members say they will try to alter the current version, putting some uncertainty on when the rebates will actually go out. Though the plan will put more money in American consumers' hands, many are simply looking at the move as more election year politics and that seems hard argue.
VMWare Plunges. VMWare (VMW, -34.0%) fell hard after missing fourth-quarter targets Monday night. The company is down more than 50% from its peak of over $120/share last year. The company's outlook also disappointed.
Bank of America Reaffirms Countrywide Deal. Bank of America (BAC, +1.8%) CEO Kenneth Lewis reassured Countrywide (CFC, +6.0%) investors that BofA had enough capital to purchase Countrywide after the bank's $13 billion sale of preferred stock last week.
Tomorrow Notable Earnings:
Kraft (KFT) Before Open
UPS (UPS) Before Open
Boeing (BA) Before Open
Amazon (AMZN) After Close
Starbucks (SBUX) After Close
Economic Events:
8:15 AM: ADP Employment Report
8:30 AM: GDP (Advance)
10:30 AM: Crude Inventories
2:15 PM: FOMC Announcement
Dow +96.4
Nasdaq +8.15
S&P 500 +8.33
News That Moved the Market
Stocks Higher With Fed Looming. Markets finished the day up once again, as investors are looking forward to tomorrow's Fed announcement. A 25 basis point cut is already priced in, and Fed fund futures also indicate that the market sees a 74% chance the Fed will cut 50 basis points. Durable goods orders also gave a boost to the market, coming in with a 5.2% gain, easily beating economists' predictions of a 1.6% increase. Markets did drop after the Conference Board announced that consumer confidence fell to 87.9 from 90.6 in December, but they were able to recover with a late rally in the afternoon.
Stimulus Plans Goes to Senate. The House approved the $146 billion economic stimulus plan, which is expected to give rebate checks to 111 million Americans. The bill will now go to the Senate, where some members say they will try to alter the current version, putting some uncertainty on when the rebates will actually go out. Though the plan will put more money in American consumers' hands, many are simply looking at the move as more election year politics and that seems hard argue.
VMWare Plunges. VMWare (VMW, -34.0%) fell hard after missing fourth-quarter targets Monday night. The company is down more than 50% from its peak of over $120/share last year. The company's outlook also disappointed.
Bank of America Reaffirms Countrywide Deal. Bank of America (BAC, +1.8%) CEO Kenneth Lewis reassured Countrywide (CFC, +6.0%) investors that BofA had enough capital to purchase Countrywide after the bank's $13 billion sale of preferred stock last week.
Tomorrow Notable Earnings:
Kraft (KFT) Before Open
UPS (UPS) Before Open
Boeing (BA) Before Open
Amazon (AMZN) After Close
Starbucks (SBUX) After Close
Economic Events:
8:15 AM: ADP Employment Report
8:30 AM: GDP (Advance)
10:30 AM: Crude Inventories
2:15 PM: FOMC Announcement
Yahoo Down After Earnings Announcement...
Shares of Yahoo Inc. (YHOO) are down 11% to $18.62 in after-hours trading after the company said its fiscal fourth-quarter profit fell from a year earlier, amid an ongoing reorganization of the Internet company.
The Sunnyvale, Calif., company said its net income for the period ended in December fell to $205.7 million, or 15 cents a share, from $268.7 million, or 19 cents a share a year earlier. Total revenue rose 8% to $1.8 billion. Net sales, which exclude payments Yahoo makes to other Websites to acquire traffic, rose to $1.4 billion from $1.2 billion.
On average, analysts polled by Thomson Financial had estimated Yahoo would report earnings for the fourth quarter of 11 cents a share on net sales of $1.4 billion.
According to our math...they beat net income estimates by 4 cents and met net revenue estimates. Problem is they also announced that they will lay off 1,000 workers to the tune of $25 Million in the form of a charge....and they lowered guidance for the full year 2008.
The Sunnyvale, Calif., company said its net income for the period ended in December fell to $205.7 million, or 15 cents a share, from $268.7 million, or 19 cents a share a year earlier. Total revenue rose 8% to $1.8 billion. Net sales, which exclude payments Yahoo makes to other Websites to acquire traffic, rose to $1.4 billion from $1.2 billion.
On average, analysts polled by Thomson Financial had estimated Yahoo would report earnings for the fourth quarter of 11 cents a share on net sales of $1.4 billion.
According to our math...they beat net income estimates by 4 cents and met net revenue estimates. Problem is they also announced that they will lay off 1,000 workers to the tune of $25 Million in the form of a charge....and they lowered guidance for the full year 2008.
Trading Yahoo Ahead of Earnings....
Traders are purchasing February Call Options on Yahoo ahead of their earnings. Activity is heavy on the Feb 20, 22.5 and 25 calls.
The stock, however, is down .44 to $20.33.
The stock, however, is down .44 to $20.33.
Crocs Trying to Break off Lows....
CROX + 1.09 to $30.80
Check out Crocs (CROX). The stock is trying hard to break off of the latest bottom. A move above $31 on high volume would be a breakout.
Check out Crocs (CROX). The stock is trying hard to break off of the latest bottom. A move above $31 on high volume would be a breakout.
Rumors that Microsoft is Interested in Purchasing Yahoo...
Interview with Bill Gates on Monday suggests that MSFT is going to go after Google in the Search category. Only way that happens is with a buyout of Yahoo. Yahoo reports today, after the bell......hmmmmm.
Earnings Expected Tomorrow....
AFLAC Inc. (AFL) 4Q .80
Allergan Inc. (AGN) 4Q .57
Alliance Data Sys Corp. (ADS) 4Q .89
Altria Grp Inc. (MO) 4Q .97
Amazon.com Inc. (AMZN) 4Q .51
Baker Hughes Inc. (BHI) 4Q 1.28 BMO
Boeing Co. (BA) 4Q 1.32 7:30AM
Constellation Energy Grp (CEG) 4Q 1.38
Dominion Resources Inc. (D) 4Q .57
Eastman Kodak Co. (EK) 4Q .48 7:00AM
Genlyte Grp Inc. (GLYT) 4Q 1.21
Illinois Tool Works Inc. (ITW) 4Q .85 8:00AM
Kirby Corp. (KEX) 4Q .62 6:00PM
Kraft Foods Inc. (KFT) 4Q .44 7:00AM
MBIA Inc. (MBI) 4Q (2.45) AMC
Merck & Co. Inc. (MRK) 4Q .73
Starbucks Corp. (SBUX) 1Q .28
Wolverine World Wide Inc. (WWW) 4Q 0.430 BMO
Allergan Inc. (AGN) 4Q .57
Alliance Data Sys Corp. (ADS) 4Q .89
Altria Grp Inc. (MO) 4Q .97
Amazon.com Inc. (AMZN) 4Q .51
Baker Hughes Inc. (BHI) 4Q 1.28 BMO
Boeing Co. (BA) 4Q 1.32 7:30AM
Constellation Energy Grp (CEG) 4Q 1.38
Dominion Resources Inc. (D) 4Q .57
Eastman Kodak Co. (EK) 4Q .48 7:00AM
Genlyte Grp Inc. (GLYT) 4Q 1.21
Illinois Tool Works Inc. (ITW) 4Q .85 8:00AM
Kirby Corp. (KEX) 4Q .62 6:00PM
Kraft Foods Inc. (KFT) 4Q .44 7:00AM
MBIA Inc. (MBI) 4Q (2.45) AMC
Merck & Co. Inc. (MRK) 4Q .73
Starbucks Corp. (SBUX) 1Q .28
Wolverine World Wide Inc. (WWW) 4Q 0.430 BMO
Earnings Due Today After the Bell...
Centex Corp. (CTX) Expected to report 3Q earnings of 1.05 a share.
Robert Half Int'l (RHI) Expected to report Q4 earnings of .44 a share.
Yahoo Inc. (YHOO). Expected to report Q4 earnings of $0.11 a share, according to analysts polled by Thomson Financial. This is a decrease of 41.6% over the $0.19 per share earnings reported same time last year.
Robert Half Int'l (RHI) Expected to report Q4 earnings of .44 a share.
Yahoo Inc. (YHOO). Expected to report Q4 earnings of $0.11 a share, according to analysts polled by Thomson Financial. This is a decrease of 41.6% over the $0.19 per share earnings reported same time last year.
Fed Meeting Starts....
We won't get announcement on interest rates, though, until tomorrow at 2:15 pm EST.
Nutrisystem Turning Higher....
Nutrisystem (NTRI) is currently up 2.28 to $27.00.
This stock tends to trade in waves. Traders will run it up and then bring it down hard. Why??? Because they can.
Looks like it is getting ready to run. The stock double bottomed at $20 over the last few weeks. A break above $30 would be a clear breakout. Just don't get too greedy. Make some money and get out.
This stock tends to trade in waves. Traders will run it up and then bring it down hard. Why??? Because they can.
Looks like it is getting ready to run. The stock double bottomed at $20 over the last few weeks. A break above $30 would be a clear breakout. Just don't get too greedy. Make some money and get out.
First Solar: Technical Buy...
Check out First Solar (FSLR). Currently up 8 to $185.
The stock is down from a high of $283 made on XMas Eve.
Technically, the stock is breaking hard off the recent bottom in the $170 area on high volume. This looks like a good trade.
The stock is down from a high of $283 made on XMas Eve.
Technically, the stock is breaking hard off the recent bottom in the $170 area on high volume. This looks like a good trade.
Yahoo To Report After the Bell Today...
Yahoo Inc. (YHOO). Expected to report Q4 earnings of $0.11 a share, according to analysts polled by Thomson Financial. This is a decrease of 41.6% over the $0.19 per share earnings reported same time last year.
The stock is currently down .54 to $20.25
The stock is currently down .54 to $20.25
Frontier Oil Up on No News....
Frontier Oil (FTO) is up 5 to $37 on no news. The Oil sector is ticking higher this morning but we see no reason for a 15% move on FTO.
There must be something....we'll let you know when we find out.
There must be something....we'll let you know when we find out.
Google (GOOG) Target Raised...Stock Down...
Analysts raises target to $755 per share... The stock opened + $6. It is now down over $13 a share to $543.
Looks like a big shareholder is trying to lighten up ahead of Thursday's earnings.
Looks like a big shareholder is trying to lighten up ahead of Thursday's earnings.
Chattem Income Triples...Raises Guidance...
Chattem Inc.'s (CHTT) fiscal fourth-quarter net income tripled to $14.8 million, or 76 cents a share, from $4.91 million, or 26 cents a share, the previous year, due in part to strong performance from its Gold Bond and Icy Hot brands.
Excluding an employee stock option expense, earnings were 81 cents a share, up from 32 cents a share the prior year. On average, analysts polled by Thomson Financial expected earnings of 65 cents a share. Analysts estimates usually exclude items.
The Chattanooga, Tenn., maker of over-the-counter healthcare products, toiletries and dietary supplements said revenue increased 55% to $100.6 million from $65.1 million a year ago. Chattem said it now sees fiscal 2008 earnings of $4 to $4.20 a share, excluding items. Previously, the company projected earnings of $3.90 to $4.10 a share.
The stock is up over 7 dollars to $75 on the news.
Excluding an employee stock option expense, earnings were 81 cents a share, up from 32 cents a share the prior year. On average, analysts polled by Thomson Financial expected earnings of 65 cents a share. Analysts estimates usually exclude items.
The Chattanooga, Tenn., maker of over-the-counter healthcare products, toiletries and dietary supplements said revenue increased 55% to $100.6 million from $65.1 million a year ago. Chattem said it now sees fiscal 2008 earnings of $4 to $4.20 a share, excluding items. Previously, the company projected earnings of $3.90 to $4.10 a share.
The stock is up over 7 dollars to $75 on the news.
Potash (POT) gets 3rd Upgrade in 3 Days....
Since reporting better than expected earnings on Thursday...and raising guidance for 2008, three analysts have raised their ratings on the stock:
BMO Capital Markets raise to Outperform
Wall Street Access raise to Strong Buy
Morgan Stanley raises to Equal Weight
The stock is up 3.25 points this morning to $143. It is up 10% + since Thursday.
BMO Capital Markets raise to Outperform
Wall Street Access raise to Strong Buy
Morgan Stanley raises to Equal Weight
The stock is up 3.25 points this morning to $143. It is up 10% + since Thursday.
Jetblue Airways Beats....
Jetblue Airways beats by $0.03, beats on revs (JBLU) 4.94 : Reports Q4 (Dec) loss of $0.02 per share, $0.03 better than the First Call consensus of ($0.05); revenues rose 16.7% year/year to $739 mln vs the $730.6 mln consensus.
Nice Planes....This stock has been hammered ever since their runway problems. The stock currently sits at $5.00...probably a buy with little downside due to the recent wave of consolidation in the Airline industry.
Nice Planes....This stock has been hammered ever since their runway problems. The stock currently sits at $5.00...probably a buy with little downside due to the recent wave of consolidation in the Airline industry.
WalMart Announces Huge Sale....
Just in time for Super Bowl Parties, WalMart is announcing a 10 - 30% off sale on thousands of items, including food and electronics. The company is billing this as their way to help the economy.
Good idea....also should be a good place to spend your upcoming Tax Rebate....don't you think???
Good idea....also should be a good place to spend your upcoming Tax Rebate....don't you think???
Zimmer Holdings (ZMH) Beats Expectations...
Zimmer Holdings 4Q Net Rises 8%
Orthopedics maker says 4Q net income rose to $263.8 million, or $1.12 a share, boosted by the weak dollar. Results top analyst expectations for earnings of $1.04 a share. Revenue rises 15% to $1.07 billion.
Zimmer's stock is up 7 points to $75.25 in premarket trading.
Orthopedics maker says 4Q net income rose to $263.8 million, or $1.12 a share, boosted by the weak dollar. Results top analyst expectations for earnings of $1.04 a share. Revenue rises 15% to $1.07 billion.
Zimmer's stock is up 7 points to $75.25 in premarket trading.
December Durable Goods Orders Up More Than Expected...
Orders for durable goods surge 5.2% to a seasonally adjusted $226.60 billion, after rising 0.5% in November. Economists expected orders to rise 2.1%. Orders for non-defense capital goods excluding aircraft increase 4.4% after falling 0.2% in November, while demand for all durables except transportation rise 2.6%.
Stock futures have surged higher on the news.
Stock futures have surged higher on the news.
Vytorin Prescriptions Down 23%....
Prescriptions for Merck's (MRK) and Schering-Plough's (SGP) embattled cholesterol drug Vytorin drop sharply in two weeks since study raised questions about effectiveness. Companies stand behind drug in reducing bad cholesterol.
Both stocks are down over 20% since the study was first announced....
Both stocks are down over 20% since the study was first announced....
US Foreclosures Surge....
Foreclosure filings for 2007 soars 75% from a year earlier as homeowners were hit by credit troubles and falling home values, a foreclosure-listing service says. For 2007, there were 2.2 million foreclosure filings, RealtyTrac says.
Don't you just love backwardlooking data??
Don't you just love backwardlooking data??
Monday, January 28, 2008
VMware Down as Revenue Misses...
Shares of VMware Corp. (VMW) plunged 25% to $62 after the virtualization software developer reported that its fourth-quarter revenue came in lower than Wall Street expectations.
The Palo Alto, Calif., company said revenue rose 80% to $412.5 million, from $229.6 million. Analysts, on average, expected VMware to earn 24 cents a share on $417 million in sales. Analysts' estimates typically exclude unusual items.
The company said its profit more than doubled to $78.2 million, or 19 cents a share, from $31 million, or 9 cents a share, a year earlier. Excluding charges and one-time items, VMware would have earned 26 cents a share.
This will also negatively affect EMC Corp., the original parent of VMW.
The Palo Alto, Calif., company said revenue rose 80% to $412.5 million, from $229.6 million. Analysts, on average, expected VMware to earn 24 cents a share on $417 million in sales. Analysts' estimates typically exclude unusual items.
The company said its profit more than doubled to $78.2 million, or 19 cents a share, from $31 million, or 9 cents a share, a year earlier. Excluding charges and one-time items, VMware would have earned 26 cents a share.
This will also negatively affect EMC Corp., the original parent of VMW.
American Express Reports Lower Net Income....
Shares of American Express Co. (AXP) fell 2.7% to $46.10 in after-hours trading Monday after the credit-card and travel-services giant said its fourth-quarter net income dropped 9.9% as the company set aside more money to cover higher delinquencies and loan write-offs amid rising credit-card losses and a slowdown in consumer spending. The company, which warned of a weakening U.S. economy earlier this month, reported net income of $831 million, or 71 cents a share, compared with $922 million, or 75 cents a share, a year earlier. Earnings from continuing operations were 71 cents a share, compared with 73 cents a share a year earlier. Earlier this month, American Express said it expected earnings from continuing operations to be 70 cents to 72 cents a share. Revenue climbed 13% to $8.4 billion. Analysts polled by Thomson Financial, on average, estimated earnings of 71 cents a share with revenue of $7.85 billion.
Much of this may already be priced in the stock.....
Much of this may already be priced in the stock.....
Nice Close.....
Dow +176
S&P + 23
Nasdaq +23
After a shaky start, the market rebounded nicely and held its gains into the close.
The Breadth of the rally was strong as shorts have clearly lost control of the market....at least for now.
Today's gains basically erased Friday's selloff. The next two days should be interesting as traders position themselves for the scheduled Fed meeting and decision on interest rates on Wednesday. It is widely thought that the Fed will cut the Fed Funds rate another 1/2 point at that meeting.
S&P + 23
Nasdaq +23
After a shaky start, the market rebounded nicely and held its gains into the close.
The Breadth of the rally was strong as shorts have clearly lost control of the market....at least for now.
Today's gains basically erased Friday's selloff. The next two days should be interesting as traders position themselves for the scheduled Fed meeting and decision on interest rates on Wednesday. It is widely thought that the Fed will cut the Fed Funds rate another 1/2 point at that meeting.
Potash (POT) Heading Back up....
POT up 5.75 to $138.60
The company had a nice earnings report last Thursday and guided higher for the upcoming year. It is trading 10% below its all-time high of $152.
The company had a nice earnings report last Thursday and guided higher for the upcoming year. It is trading 10% below its all-time high of $152.
NYSE New Highs....
Barrick Gold (ABX) $53.46, up $1.29
Alberto Culver (ACV) $25.27, up $1.75
Consolidated Energy (CNX) $76.11, up $3.10
Alberto Culver (ACV) $25.27, up $1.75
Consolidated Energy (CNX) $76.11, up $3.10
Nasdaq Stocks Hitting 52-Week Highs Today...
Accorda Therapeudics (ACOR) $26.08, up $4.30
Matria Healthcare (MATR) $32.26, up $1.57
MGI Pharmaceutical (MOGN) $41.22, up $0.23
Auxilium Pharmaceutical (AUXL) $31.57, up $0.87
Vivus Inc. (VVUS) $6.22, up $0.17
Matria Healthcare (MATR) $32.26, up $1.57
MGI Pharmaceutical (MOGN) $41.22, up $0.23
Auxilium Pharmaceutical (AUXL) $31.57, up $0.87
Vivus Inc. (VVUS) $6.22, up $0.17
Medtronic Begins Trials on New Pacemaker...
MDT up .30 to $46.42
Medtronic (MDT) announces FDA approval to begin clinical trial of first pacemaker system designed for safe use in MRI machines.
Medtronic (MDT) announces FDA approval to begin clinical trial of first pacemaker system designed for safe use in MRI machines.
Lockheed Martin (LMT) Likely to Win Indian Contract...
LMT up .88 to $106.37
The Bethesda, MD-based defense contractor is set to win a $1 billion contract for six Hercules transport planes from India, an official said Monday. A formal contract is likely to be issued next month to the company, which is also in the race for a $10 billion contract to sell 126 fighter jets to the Indian air force.
The Bethesda, MD-based defense contractor is set to win a $1 billion contract for six Hercules transport planes from India, an official said Monday. A formal contract is likely to be issued next month to the company, which is also in the race for a $10 billion contract to sell 126 fighter jets to the Indian air force.
Honda Global Output Increases...
Honda Motor Co Ltd. (HMC). Japan's second-largest auto maker said today its global vehicle output in December rose 5.5% to 298,824 vehicles from a year earlier, led by brisk overseas output.
HMC currently trades at $30.00, down from a high of $41 hit last February.
HMC currently trades at $30.00, down from a high of $41 hit last February.
New Home Sales Tumble...
New-home sales tumbled to the lowest mark in 12 years during December and prices also fell sharply. Sales of single-family homes decreased by 4.7% last month to a seasonally adjusted annual rate of 604,000, the Commerce Department said Monday. November new-home sales fell 12.6% to an annual rate to 634,000; originally, the government said November sales fell by 9.0% to 647,000.
Economists forecast December sales at an annual rate of 650,000. The pace of 604,000 was the worst since 559,000 in February 1995.
Year over year, new-home sales were 40.7% lower than the level in December 2006.
Regionally last month, new-home sales decreased 6.5% in the South, 1.2% in the Midwest, and 6.0% in the West. Sales rose 6.0% in the Northeast.
Economists forecast December sales at an annual rate of 650,000. The pace of 604,000 was the worst since 559,000 in February 1995.
Year over year, new-home sales were 40.7% lower than the level in December 2006.
Regionally last month, new-home sales decreased 6.5% in the South, 1.2% in the Midwest, and 6.0% in the West. Sales rose 6.0% in the Northeast.
Investors Like Wellcare Change at the Top...
WCG up 5.38 to $48.50
Wellcare Health Plans Inc. (WCG) named Charles Berg as executive chairman and Heath Schiesser as president and chief executive officer, effective immediately, after three executives resigned from their positions. The managed-care services provider said the shakeup is in the "best long-term interest of the company."
Wellcare Health Plans Inc. (WCG) named Charles Berg as executive chairman and Heath Schiesser as president and chief executive officer, effective immediately, after three executives resigned from their positions. The managed-care services provider said the shakeup is in the "best long-term interest of the company."
Analysts Cut Q4 Earnings Projections...
A Reuters survey indicated that Wall Street analysts have cut their Q4 earnings estimates for S&P 500 companies. They now see earnings growth falling 17.6% in the quarter, down from the 10.9% decline they forecast a week ago. Earnings in the financial sector are expected to show a 91% drop, but technology earnings are forecast to have grown 26%.
This is actually a positive for the future. Reduced expectations are easier to meet or exceed.
This is actually a positive for the future. Reduced expectations are easier to meet or exceed.
Sony Ericsson Joint Venture Goes After iTunes Market....
Sony Ericsson lands content deals with 3 top labels. The Sony Ericsson JV (SNE), (ERIC) has arranged deals with ten music providers, including Sony BMG, Warner Music Group and EMI, for its online music store, which will launch in May.
The venture's PlayNow service, which will rival Apple's (AAPL) iTunes and Nokia's (NOK) Ovi, will provide over five million music tracks in 30 countries by the end of 2008.
The venture's PlayNow service, which will rival Apple's (AAPL) iTunes and Nokia's (NOK) Ovi, will provide over five million music tracks in 30 countries by the end of 2008.
Naxavar Approved in Japan....
Bayer beats rivals to Japanese market with cancer drug. Bayer AG's (BAYRY.PK) treatment for advanced kidney cancer, Nexavar, has been approved for use in Japan.
The drug, which is already approved in the U.S. and Europe, is codeveloped by Onyx Pharmaceuticals (ONXX).
The drug, which is already approved in the U.S. and Europe, is codeveloped by Onyx Pharmaceuticals (ONXX).
Countrywide CEO to Forego Big Pay Package...
Angelo Mozilo, chairman and CEO of Countrywide Financial (CFC), will forfeit $37.5 million of severance pay, fees and benefits that he was to have received upon retiring.
Mozilo is expected to step down when Bank of America (BAC) completes its acquisition of the lender.
Mozilo is expected to step down when Bank of America (BAC) completes its acquisition of the lender.
Earnings This Week That May Move the Market...
Monday
American Express Co. (AXP) 4Q .74 AMC
Corning Inc. (GLW) 4Q .39 BMO
Halliburton Co. (HAL) 4Q .69
McDonald's Corp. (MCD) 4Q .71
SanDisk Corp. (SNDK) 4Q .55 AMC
Verizon Commun Inc. (VZ) 4Q .62 7:30AM
VMware Inc. (VMW) 4Q .20 AMC
Tuesday
3M Co. (MMM) 4Q 1.16
Burlington Northern Santa Fe (BNI) 4Q 1.40 8:00AM
Centex Corp. (CTX) 3Q (1.05)AMC
Chattem Inc. (CHTT) 4Q .64 BMO
Countrywide Fincl Corp. (CFC) 4Q (.11) BMO
Dow Chemical Co. (DOW) 4Q .81 6:30AM
Eli Lilly & Co. (LLY) 4Q .89
EMC Corp. (EMC) 4Q .22
JetBlue Airways Corp. (JBLU) 4Q (.01) BMO
Lexmark Intl Inc. (LXK) 4Q .56
Northwest Airlines Corp. (NWA) 4Q (.02)
Robert Half Intl Inc. (RHI) 4Q .47 4:00PM
Scotts Miracle-Gro Co. (SMG) 1Q (1.04) BMO
Sherwin-Williams Co. (SHW) 4Q .84 9:00AM
Smith Intl Inc. (SII) 4Q .88 BMO
T. Rowe Price Grp Inc. (TROW) 4Q .63
Travelers Cos. Inc. (TRV) 4Q 1.58
USG Corp. (USG) 4Q (.11) BMO
Valero Energy Corp. (VLO) 4Q .79
Yahoo! Inc. (YHOO) 4Q .12 5:00PM
Zimmer Hldgs Inc. (ZMH) 4Q 1.040
Wednesday
AFLAC Inc. (AFL) 4Q .80
Allergan Inc. (AGN) 4Q .57
Alliance Data Sys Corp. (ADS) 4Q .89
Altria Grp Inc. (MO) 4Q .97
Amazon.com Inc. (AMZN) 4Q .51
Baker Hughes Inc. (BHI) 4Q 1.28 BMO
Boeing Co. (BA) 4Q 1.32 7:30AM
Constellation Energy Grp (CEG) 4Q 1.38
Dominion Resources Inc. (D) 4Q .57
Eastman Kodak Co. (EK) 4Q .48 7:00AM
Genlyte Grp Inc. (GLYT) 4Q 1.21
Illinois Tool Works Inc. (ITW) 4Q .85 8:00AM
Kirby Corp. (KEX) 4Q .62 6:00PM
Kraft Foods Inc. (KFT) 4Q .44 7:00AM
MBIA Inc. (MBI) 4Q (2.45) AMC
Merck & Co. Inc. (MRK) 4Q .73
Starbucks Corp. (SBUX) 1Q .28
Wolverine World Wide Inc. (WWW) 4Q 0.430 BMO
Thursday
Affiliated Computer Svcs Inc (ACS) 2Q .83
Altera Corp. (ALTR) 4Q .18 4:15PM
Anheuser-Busch Cos. Inc. (BUD) 4Q .32
Apache Corp. (APA) 4Q 2.31 BMO
AstraZeneca PLC (AZN) 4Q .95 6:00AM
bebe Stores Inc. (BEBE) 2Q .26
Bristol-Myers Squibb Co. (BMY) 4Q .34
Callaway Golf Co. (ELY) 4Q (.18)
Colgate-Palmolive Co. (CL) 4Q .89
Columbia Sportswear Co. (COLM) 4Q 1.01
CVS Caremark Corp. (CVS) 4Q .55 BMO
E.W. Scripps Co. (SSP) 4Q .70 BMO
Electronic Arts Inc. (ERTS) 3Q .78 AMC
Flowers Foods Inc. (FLO) 4Q .21
Gold Fields Ltd. (GFI) 2Q .13 1:00AM
Goodrich Corp. (GR) 4Q .91 BMO
Google Inc. (GOOG) 4Q 4.09
Hologic Inc. (HOLX) 1Q .45 8:00AM
ImClone Syss Inc. (IMCL) 4Q .24
Intuitive Surgical Inc. (ISRG) 4Q 1.03
Key Energy Svcs Inc. (KEG) 4Q .29
L-3 Commun Hldgs Inc. (LLL) 4Q 1.60 BMO
Marathon Oil Corp. (MRO) 4Q 1.05
MasterCard Inc. (MA) 4Q .70
Mattel Inc. (MAT) 4Q .72 6:00AM
Monster Worldwide Inc. (MNST) 4Q .37 AMC
Nasdaq Stock Market Inc. (NDAQ) 4Q .46 7:00AM
Newell Rubbermaid Inc. (NWL) 4Q .45 BMO
Peabody Energy Corp. (BTU) 4Q .69
Procter & Gamble Co. (PG) 2Q .97
Raytheon Co. (RTN) 4Q .90 6:00AM
RF Micro Devices Inc. (RFMD) 3Q .05 4:00PM
Sony Corp. (SNE) 3Q 1.53
Starwood Hotels & Resorts (HOT) 4Q .67 BMO
Tesoro Corp. (TSO) 4Q .12
Under Armour Inc. (UA) 4Q .31 7:00AM
Western Union Co. (WU) 4Q .31 7:30AM
Wyeth (WYE) 4Q 0.790
Friday
Arch Coal Inc. (ACI) 4Q .47 BMO
Automatic Data Processing (ADP) 2Q .53 BMO
Chevron Corp. (CVX) 4Q 2.26
Cummins Inc. (CMI) 4Q 1.05
Exxon Mobil Corp. (XOM) 4Q 1.93
L.M. Ericsson Telephone Co. (ERIC) 4Q .55 1:30AM
Oshkosh Truck Corp. (OSK) 1Q .50
Simon Ppty Grp Inc. (SPG) 4Q .62 BMO
Tidewater Inc. (TDW) 3Q 1.55 BMO
American Express Co. (AXP) 4Q .74 AMC
Corning Inc. (GLW) 4Q .39 BMO
Halliburton Co. (HAL) 4Q .69
McDonald's Corp. (MCD) 4Q .71
SanDisk Corp. (SNDK) 4Q .55 AMC
Verizon Commun Inc. (VZ) 4Q .62 7:30AM
VMware Inc. (VMW) 4Q .20 AMC
Tuesday
3M Co. (MMM) 4Q 1.16
Burlington Northern Santa Fe (BNI) 4Q 1.40 8:00AM
Centex Corp. (CTX) 3Q (1.05)AMC
Chattem Inc. (CHTT) 4Q .64 BMO
Countrywide Fincl Corp. (CFC) 4Q (.11) BMO
Dow Chemical Co. (DOW) 4Q .81 6:30AM
Eli Lilly & Co. (LLY) 4Q .89
EMC Corp. (EMC) 4Q .22
JetBlue Airways Corp. (JBLU) 4Q (.01) BMO
Lexmark Intl Inc. (LXK) 4Q .56
Northwest Airlines Corp. (NWA) 4Q (.02)
Robert Half Intl Inc. (RHI) 4Q .47 4:00PM
Scotts Miracle-Gro Co. (SMG) 1Q (1.04) BMO
Sherwin-Williams Co. (SHW) 4Q .84 9:00AM
Smith Intl Inc. (SII) 4Q .88 BMO
T. Rowe Price Grp Inc. (TROW) 4Q .63
Travelers Cos. Inc. (TRV) 4Q 1.58
USG Corp. (USG) 4Q (.11) BMO
Valero Energy Corp. (VLO) 4Q .79
Yahoo! Inc. (YHOO) 4Q .12 5:00PM
Zimmer Hldgs Inc. (ZMH) 4Q 1.040
Wednesday
AFLAC Inc. (AFL) 4Q .80
Allergan Inc. (AGN) 4Q .57
Alliance Data Sys Corp. (ADS) 4Q .89
Altria Grp Inc. (MO) 4Q .97
Amazon.com Inc. (AMZN) 4Q .51
Baker Hughes Inc. (BHI) 4Q 1.28 BMO
Boeing Co. (BA) 4Q 1.32 7:30AM
Constellation Energy Grp (CEG) 4Q 1.38
Dominion Resources Inc. (D) 4Q .57
Eastman Kodak Co. (EK) 4Q .48 7:00AM
Genlyte Grp Inc. (GLYT) 4Q 1.21
Illinois Tool Works Inc. (ITW) 4Q .85 8:00AM
Kirby Corp. (KEX) 4Q .62 6:00PM
Kraft Foods Inc. (KFT) 4Q .44 7:00AM
MBIA Inc. (MBI) 4Q (2.45) AMC
Merck & Co. Inc. (MRK) 4Q .73
Starbucks Corp. (SBUX) 1Q .28
Wolverine World Wide Inc. (WWW) 4Q 0.430 BMO
Thursday
Affiliated Computer Svcs Inc (ACS) 2Q .83
Altera Corp. (ALTR) 4Q .18 4:15PM
Anheuser-Busch Cos. Inc. (BUD) 4Q .32
Apache Corp. (APA) 4Q 2.31 BMO
AstraZeneca PLC (AZN) 4Q .95 6:00AM
bebe Stores Inc. (BEBE) 2Q .26
Bristol-Myers Squibb Co. (BMY) 4Q .34
Callaway Golf Co. (ELY) 4Q (.18)
Colgate-Palmolive Co. (CL) 4Q .89
Columbia Sportswear Co. (COLM) 4Q 1.01
CVS Caremark Corp. (CVS) 4Q .55 BMO
E.W. Scripps Co. (SSP) 4Q .70 BMO
Electronic Arts Inc. (ERTS) 3Q .78 AMC
Flowers Foods Inc. (FLO) 4Q .21
Gold Fields Ltd. (GFI) 2Q .13 1:00AM
Goodrich Corp. (GR) 4Q .91 BMO
Google Inc. (GOOG) 4Q 4.09
Hologic Inc. (HOLX) 1Q .45 8:00AM
ImClone Syss Inc. (IMCL) 4Q .24
Intuitive Surgical Inc. (ISRG) 4Q 1.03
Key Energy Svcs Inc. (KEG) 4Q .29
L-3 Commun Hldgs Inc. (LLL) 4Q 1.60 BMO
Marathon Oil Corp. (MRO) 4Q 1.05
MasterCard Inc. (MA) 4Q .70
Mattel Inc. (MAT) 4Q .72 6:00AM
Monster Worldwide Inc. (MNST) 4Q .37 AMC
Nasdaq Stock Market Inc. (NDAQ) 4Q .46 7:00AM
Newell Rubbermaid Inc. (NWL) 4Q .45 BMO
Peabody Energy Corp. (BTU) 4Q .69
Procter & Gamble Co. (PG) 2Q .97
Raytheon Co. (RTN) 4Q .90 6:00AM
RF Micro Devices Inc. (RFMD) 3Q .05 4:00PM
Sony Corp. (SNE) 3Q 1.53
Starwood Hotels & Resorts (HOT) 4Q .67 BMO
Tesoro Corp. (TSO) 4Q .12
Under Armour Inc. (UA) 4Q .31 7:00AM
Western Union Co. (WU) 4Q .31 7:30AM
Wyeth (WYE) 4Q 0.790
Friday
Arch Coal Inc. (ACI) 4Q .47 BMO
Automatic Data Processing (ADP) 2Q .53 BMO
Chevron Corp. (CVX) 4Q 2.26
Cummins Inc. (CMI) 4Q 1.05
Exxon Mobil Corp. (XOM) 4Q 1.93
L.M. Ericsson Telephone Co. (ERIC) 4Q .55 1:30AM
Oshkosh Truck Corp. (OSK) 1Q .50
Simon Ppty Grp Inc. (SPG) 4Q .62 BMO
Tidewater Inc. (TDW) 3Q 1.55 BMO
McDonald's Beats Estimates....Stock sells off...
McDonald's 4Q EPS $1.06 Vs EPS $1.00
DOW JONES NEWSWIRES
McDonald's Corp., (MCD) the Oak Brook, Ill., fast-food restaurant giant, reported fourth-quarter net income rose 2.6% on a 5.7% increase in sales and 6.7% boost in comparable sales.
Earnings rose to $1.27 billion, or $1.06 a share, from $1.24 billion, or $1.00 a share, in the year-earlier period. Results for the latest period included a tax benefit of 33 cents a share. Currency fluctuations added an additional 4 cents a share.
Earnings from continuing operations were $1.06 a share compared with 61 cents a year ago.
A survey of analysts by Thomson Financial produced a consensus earnings estimate of 71 cents for the latest quarter.
The company reported fatter profit margins for the eight consecutive quarter.
The stock is down 3.30 to $50.80 in premarket trading.
DOW JONES NEWSWIRES
McDonald's Corp., (MCD) the Oak Brook, Ill., fast-food restaurant giant, reported fourth-quarter net income rose 2.6% on a 5.7% increase in sales and 6.7% boost in comparable sales.
Earnings rose to $1.27 billion, or $1.06 a share, from $1.24 billion, or $1.00 a share, in the year-earlier period. Results for the latest period included a tax benefit of 33 cents a share. Currency fluctuations added an additional 4 cents a share.
Earnings from continuing operations were $1.06 a share compared with 61 cents a year ago.
A survey of analysts by Thomson Financial produced a consensus earnings estimate of 71 cents for the latest quarter.
The company reported fatter profit margins for the eight consecutive quarter.
The stock is down 3.30 to $50.80 in premarket trading.
Haliburton Tops Estimates...
Halliburton Co.'s (HAL) fourth-quarter net income rose 4.9% to $690 million, or 75 cents a share, from $658 million, or 64 cents a share, a year earlier.
The Houston energy and engineering services company said earnings from continuing operations were 74 cents a share, compared with 61 cents a share a year ago.
Revenue climbed 19% to $4.18 billion from $3.51 billion.
Analysts polled by Thomson Financial, on average, expected earnings of 69 cents a share on revenue of $4.06 billion.
Results from the latest quarter included charges of $22 million from the impairment of an oil and gas property and $8 million in executive separation costs. The results benefited from a lower tax rate, Halliburton said.
The Houston energy and engineering services company said earnings from continuing operations were 74 cents a share, compared with 61 cents a share a year ago.
Revenue climbed 19% to $4.18 billion from $3.51 billion.
Analysts polled by Thomson Financial, on average, expected earnings of 69 cents a share on revenue of $4.06 billion.
Results from the latest quarter included charges of $22 million from the impairment of an oil and gas property and $8 million in executive separation costs. The results benefited from a lower tax rate, Halliburton said.
Corning Guides Higher....
Corning beats by $0.01, beats on revs; guides Q1 EPS above consensus, revs above consensus (GLW) $22.37 :
Reports Q4 (Dec) earnings of $0.40 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.39; revenues rose 15.6% year/year to $1.58 bln vs the $1.55 bln consensus. Co issues upside guidance for Q1, sees EPS of $0.41-0.43, excluding non-recurring items, vs. $0.36 consensus; sees Q1 revs of $1.59-1.62 bln vs. $1.52 bln consensus. Co said, "We believe first-quarter panel maker inventory levels are lower this year than last year. We expect panel makers to maintain high utilization rates throughout the first quarter, which will drive continued strong glass demand.
Looking forward, we anticipate the LCD glass supply and demand balance will remain tight throughout the year, absent the impact of any potential downturn in the economy."
Reports Q4 (Dec) earnings of $0.40 per share, excluding non-recurring items, $0.01 better than the First Call consensus of $0.39; revenues rose 15.6% year/year to $1.58 bln vs the $1.55 bln consensus. Co issues upside guidance for Q1, sees EPS of $0.41-0.43, excluding non-recurring items, vs. $0.36 consensus; sees Q1 revs of $1.59-1.62 bln vs. $1.52 bln consensus. Co said, "We believe first-quarter panel maker inventory levels are lower this year than last year. We expect panel makers to maintain high utilization rates throughout the first quarter, which will drive continued strong glass demand.
Looking forward, we anticipate the LCD glass supply and demand balance will remain tight throughout the year, absent the impact of any potential downturn in the economy."
Verizon Earnings....In Line with Estimates...
Verizon reports EPS in-line, revs in-line; adds 2 mln new net wireless subs; adds 226k FiOS TV customers (VZ) $37.76 :
Reports Q4 (Dec) earnings of $0.62 per share, ex items, in-line with the First Call consensus of $0.62; revenues rose 5.5% year/year to $23.84 bln vs the $23.96 bln consensus. For wireless co reports Q4 2.0 mln total net customer additions, 1.9 mln net retail customer additions; 65.7 mln total customers, 63.7 mln retail (non-wholesale) customers; 6.9 mln retail net adds in 2007, the most of any carrier. Co reports Q4 226,000 net new FiOS TV customers, 943,000 total FiOS TV customers at year-end;
Verizon now has more than 1 mln FiOS TV customers.
Reports Q4 (Dec) earnings of $0.62 per share, ex items, in-line with the First Call consensus of $0.62; revenues rose 5.5% year/year to $23.84 bln vs the $23.96 bln consensus. For wireless co reports Q4 2.0 mln total net customer additions, 1.9 mln net retail customer additions; 65.7 mln total customers, 63.7 mln retail (non-wholesale) customers; 6.9 mln retail net adds in 2007, the most of any carrier. Co reports Q4 226,000 net new FiOS TV customers, 943,000 total FiOS TV customers at year-end;
Verizon now has more than 1 mln FiOS TV customers.
Saturday, January 26, 2008
This is unbelievable.....
Federal Reserve Chairman Ben S. Bernanke discovered that an Ivy League career just doesn't leave the same impression as a Wall Street resume for some lawmakers.
Approaching his second anniversary at the helm of the U.S. central bank, Bernanke found himself mistaken for Treasury Secretary Henry Paulson during a hearing in Congress today.
``Seeing as how you were the former CEO of Goldman Sachs,'' Representative Marcy Kaptur, a Democrat from Ohio, began to say before the Fed chief interjected.
``No, you're confusing me with the Treasury secretary,'' Bernanke said at the House Budget Committee hearing. Paulson was the chief executive officer of Goldman Sachs Group Inc. before joining the Treasury in 2006.
``I got the wrong firm?'' asked Kaptur, 61, who is serving her 13th term and represents northern Ohio's ninth Congressional district.
``Yes,'' replied Bernanke.
``Paulson. Oh, OK. Where were you, sir?''
``I was a CEO of the Princeton Economics Department,'' Bernanke replied to laughter from the hearing room. Bernanke, 54, chaired the economics department at the Ivy League university before becoming a Fed governor in 2002. He later headed the White House Council of Economic Advisers, becoming Fed chairman in February 2006.
Bernanke, who appears on the cover of this coming Sunday's New York Times magazine, acknowledged before Congress today that the economy is weak enough to need fiscal stimulus.
``It was an honest mistake,'' said Emily Boening, a spokeswoman for Kaptur. ``But the Republicans have made bigger, more severe mistakes on economic policy. It was a few seconds of a very productive hearing otherwise.''
Approaching his second anniversary at the helm of the U.S. central bank, Bernanke found himself mistaken for Treasury Secretary Henry Paulson during a hearing in Congress today.
``Seeing as how you were the former CEO of Goldman Sachs,'' Representative Marcy Kaptur, a Democrat from Ohio, began to say before the Fed chief interjected.
``No, you're confusing me with the Treasury secretary,'' Bernanke said at the House Budget Committee hearing. Paulson was the chief executive officer of Goldman Sachs Group Inc. before joining the Treasury in 2006.
``I got the wrong firm?'' asked Kaptur, 61, who is serving her 13th term and represents northern Ohio's ninth Congressional district.
``Yes,'' replied Bernanke.
``Paulson. Oh, OK. Where were you, sir?''
``I was a CEO of the Princeton Economics Department,'' Bernanke replied to laughter from the hearing room. Bernanke, 54, chaired the economics department at the Ivy League university before becoming a Fed governor in 2002. He later headed the White House Council of Economic Advisers, becoming Fed chairman in February 2006.
Bernanke, who appears on the cover of this coming Sunday's New York Times magazine, acknowledged before Congress today that the economy is weak enough to need fiscal stimulus.
``It was an honest mistake,'' said Emily Boening, a spokeswoman for Kaptur. ``But the Republicans have made bigger, more severe mistakes on economic policy. It was a few seconds of a very productive hearing otherwise.''
Friday, January 25, 2008
Ambac could rise further on takeover speculation...
Billionaire Wilbur Ross is reportedly in talks to buy bond insurer Ambac Financial Group (ABK). ABK shares closed down 17.3% Thursday after the New York Insurance Department said its plan to rescue the bond insurers will take time, but surged 8.65% after hours on buyout rumors.
Goldman to Lay off Workers - Spooks Market
Goldman Sachs (GS) said it is targeting the bottom 5% of performers in its workforce to lay off as part of its annual review process, CNBC reported Friday. The review targets about 1,500 of 30,000 positions. Goldman's statement came in response to a Reuters report saying the financial giant was aiming to lay off 5% of its global workforce.
Goldman told CNBC the review was entirely related to individual performance, not business conditions.
The Dow is now down 160 pts after earlier being up 110 points. A clear overreaction...
Goldman told CNBC the review was entirely related to individual performance, not business conditions.
The Dow is now down 160 pts after earlier being up 110 points. A clear overreaction...
E-Trade Shares Rise on "Turnaround Plan"
Investors bought up E-Trade Financial Corp. shares, overlooking a massive quarterly loss on expectations the discount brokerage can revitalize its flagging business. But analysts warned exposure to potentially toxic mortgage debt could hamper the company's growth.
Honeywell Net Up 18%, Sees Softer Economy
Aerospace titan earns $689 million, or 91¢ a share, as it continues to post strong sales growth though it warns of a "softer" global economy in 2008. Wall Street expected EPS of 91¢. Shares gain 4%.
Caterpillar 4Q Net Jumps 11%, Backs Outlook
Heavy-equipment maker posts net profit of $975 million, or $1.50 a share, driven by strong growth overseas. Revenue rises 10% to $12.14 billion, beating forecasts of $11.79 billion. Dow component says recession-like conditions are developing in the U.S., but believes growth will hold up outside the country and affirms its forecast for a 5% to 15% increase in 2008 earnings. Shares gain 2%.
Microsoft Beats Expectations.....
Microsoft Corp. (MSFT). The Redmond, Washington-based software maker on Thursday said second-quarter earnings almost doubled to $4.71 billion or 50 cents a share from $2.63 billion or 26 cents a share same time last year. Revenue rose 30% to $16.37 billion from $12.54 billion last year on the back of robust holiday sales and enterprise demand. For the third quarter, Microsoft said it expects earnings of 43-45 cents a share and revenue between $14.3-$14.6 billion.
Companies Reporting Earnings Today...
• Caterpillar Inc. (CAT). Expected to report Q4 earnings of $1.50 per share, an increase of 13.41% from the same quarter last year when the company earned $1.32, according to analysts polled by Thomson Financial.
• Commerce Bancorp Inc. (CBH). Expected to report Q4 earnings of $0.30 per share, down 25.50% from the same quarter last year when the company earned $0.40.
• Fortune Brands Inc. (FO). Expected to report Q4 profits of $1.42 per share, an increase of 2.01% from the same quarter last year when the company earned $1.39.
• W.W. Grainger Inc. (GWW). Expected to report Q4 profits of $1.28 per share, an increase of 18.24% from the same quarter last year when the company earned $1.08.
• Commerce Bancorp Inc. (CBH). Expected to report Q4 earnings of $0.30 per share, down 25.50% from the same quarter last year when the company earned $0.40.
• Fortune Brands Inc. (FO). Expected to report Q4 profits of $1.42 per share, an increase of 2.01% from the same quarter last year when the company earned $1.39.
• W.W. Grainger Inc. (GWW). Expected to report Q4 profits of $1.28 per share, an increase of 18.24% from the same quarter last year when the company earned $1.08.
Thursday, January 24, 2008
Daily Summary....
U.S. Market Summary:
Dow +108.44 (+0.88%)
Nasdaq +44.51 (+1.92%)
S&P 500 +13.47 (+1.01%)
News That Moved the Market
Stimulus Plan Set. Markets ended the day higher, as government officials announced President Bush and House members had come to an agreement on the economic stimulus plan. The new plan will give rebates to 117 million American families and help businesses purchase new equipment. Essentially, it will give the average American a $300 rebate, with people earning higher incomes getting less, and families with children getting more. It will also increase the mortgage size Fannie Mae (FNM, -1.7%) and Freddie Mac (FRE, -1.6%) will be allowed to purchase to $625,000 from $417,000, increasing the availability for financing for higher-valued homes. Some investors were disappointed the rebates were not higher, and also questioned why the government was going out of its way to help Americans buy $600,000 homes.
Existing Homes Sales Down, But So Are Inventories. The National Association of Realtors reported existing home sales dropped 2.2% last month, but said unsold home inventories actually decreased. In all, single-family home sales fell 13% last year, the worst drop since 1982.
Nokia Surges on Q4 Performance. Cell phone maker Nokia (NOK, +12.5%) jumped after reporting a 57% increase in earnings and noting strong demand in emerging markets. The company's global market share now stands at 40%.
Rogue Trader at SocGen Loses $7.1 Billion. Societe Generale, the second largest bank in France, surprised the world by announcing a single trader concealed positions and made up transactions leading to a $7.1 billion loss for the bank. When the fraud was discovered, the bank liquidated all positions, but the news created questions about SocGen's risk management controls. SocGen, which trades in Paris, fell 3.7%.
AT&T Reports Higher Profits. AT&T (T, -2.6%) said Thursday Q4 earnings jumped 62%, propelled by acquisitions and wireless growth. The company still had mixed news for its traditional phone service, losing more customers than expected.
Microsoft Jumps in After Hours Trading.Microsoft (MSFT, +4.1%; +5.0% A.H.) pushed futures higher after the close, beating estimates and raising profits and sales targets for the year. Strong sales in Windows and Xbox 360 consoles were key drivers in the solid report.
Tomorrow Notable Earnings:
Caterpillar (CAT)
Honeywell (HON)
Dow +108.44 (+0.88%)
Nasdaq +44.51 (+1.92%)
S&P 500 +13.47 (+1.01%)
News That Moved the Market
Stimulus Plan Set. Markets ended the day higher, as government officials announced President Bush and House members had come to an agreement on the economic stimulus plan. The new plan will give rebates to 117 million American families and help businesses purchase new equipment. Essentially, it will give the average American a $300 rebate, with people earning higher incomes getting less, and families with children getting more. It will also increase the mortgage size Fannie Mae (FNM, -1.7%) and Freddie Mac (FRE, -1.6%) will be allowed to purchase to $625,000 from $417,000, increasing the availability for financing for higher-valued homes. Some investors were disappointed the rebates were not higher, and also questioned why the government was going out of its way to help Americans buy $600,000 homes.
Existing Homes Sales Down, But So Are Inventories. The National Association of Realtors reported existing home sales dropped 2.2% last month, but said unsold home inventories actually decreased. In all, single-family home sales fell 13% last year, the worst drop since 1982.
Nokia Surges on Q4 Performance. Cell phone maker Nokia (NOK, +12.5%) jumped after reporting a 57% increase in earnings and noting strong demand in emerging markets. The company's global market share now stands at 40%.
Rogue Trader at SocGen Loses $7.1 Billion. Societe Generale, the second largest bank in France, surprised the world by announcing a single trader concealed positions and made up transactions leading to a $7.1 billion loss for the bank. When the fraud was discovered, the bank liquidated all positions, but the news created questions about SocGen's risk management controls. SocGen, which trades in Paris, fell 3.7%.
AT&T Reports Higher Profits. AT&T (T, -2.6%) said Thursday Q4 earnings jumped 62%, propelled by acquisitions and wireless growth. The company still had mixed news for its traditional phone service, losing more customers than expected.
Microsoft Jumps in After Hours Trading.Microsoft (MSFT, +4.1%; +5.0% A.H.) pushed futures higher after the close, beating estimates and raising profits and sales targets for the year. Strong sales in Windows and Xbox 360 consoles were key drivers in the solid report.
Tomorrow Notable Earnings:
Caterpillar (CAT)
Honeywell (HON)
Deal Completed for Tax Rebates in June....
Congressional leaders completed a deal Thursday with the White House on an economic stimulus package that would give most tax filers refunds of $600 to $1,200, and more if they have children.
House Speaker Nancy Pelosi and Republican Leader John Boehner scheduled a news conference for 1:30 p.m. EST to announce the $150 billion package, hammered out in a week of intense negotiations with Treasury Secretary Henry Paulson. Congressional aides, speaking on condition of anonymity because the deal had not yet been announced, said they hope the checks could go out as early as June.
Individuals who pay income taxes would get up to $600, working couples $1,200 and those couples with children an additional $300 per child under the deal. Workers who make at least $3,000 but don't pay taxes would get $300 rebates.
The rebate part of the plan would cost about $100 billion, aides said. The package also includes close to $50 billion in business tax cuts.
The rebates would phase out gradually for individuals whose income exceeds $75,000 and couples with incomes above $150,000, aides said. Individuals with incomes up to $87,000 and couples up to $174,000 would get partial rebates. The caps rise higher for individuals and couples with children.
House Speaker Nancy Pelosi and Republican Leader John Boehner scheduled a news conference for 1:30 p.m. EST to announce the $150 billion package, hammered out in a week of intense negotiations with Treasury Secretary Henry Paulson. Congressional aides, speaking on condition of anonymity because the deal had not yet been announced, said they hope the checks could go out as early as June.
Individuals who pay income taxes would get up to $600, working couples $1,200 and those couples with children an additional $300 per child under the deal. Workers who make at least $3,000 but don't pay taxes would get $300 rebates.
The rebate part of the plan would cost about $100 billion, aides said. The package also includes close to $50 billion in business tax cuts.
The rebates would phase out gradually for individuals whose income exceeds $75,000 and couples with incomes above $150,000, aides said. Individuals with incomes up to $87,000 and couples up to $174,000 would get partial rebates. The caps rise higher for individuals and couples with children.
Companies Reporting Earnings Today...
• Amgen Inc. (AMGN). Expected to report Q4 earnings of $0.97 per share, an increase of 7.67% from the same quarter last year when the company earned $0.90.
• AT&T Inc. (T). Expected to report Q4 earnings of $0.71 per share per share, an increase of 16.56% from the same quarter last year when the company earned $0.61.
• Broadcom Corp. (BRCM). Expected to report Q4 earnings of $0.32 per share, up 2.90% from the same quarter last year when the company earned $0.31.
• Consolidated Edison Inc. (ED). Expected to report Q4 earnings of $0.61 per share, down 21.54% from the same quarter last year when the company earned $0.78.
• E-Trade Financial Corp. (ETFC). Expected to report Q4 loss of $2.91 per share.
• Kimberly-Clark Corp. (KMB). Expected to report Q4 earnings of $1.11 per share, an increase of 8.06% from the same quarter last year when the company earned $1.03.
• Microsoft Corp. (MSFT). Expected to report Q2 earnings of $0.46 a share, up 75.77% from the same quarter last year when the company earned $0.26.
• Northrop Grumman Corp. (NOC). Expected to report Q4 earnings of $1.31 per share, up 1.78% from the same quarter last year when the company earned $1.29.
• Sun Microsystems Inc. (JAVA). Expected to report Q2 earnings of $0.30 per share, up 86.88% from the same quarter last year when the company earned $0.16.
• Union Pacific Corp. (UNP). Expected to report Q4 earnings of $1.77 per share, down 0.67% from the same quarter last year when the company earned $1.78.
• US Airways Group (LCC). Expected to report Q4 loss of $0.76 per share.
• AT&T Inc. (T). Expected to report Q4 earnings of $0.71 per share per share, an increase of 16.56% from the same quarter last year when the company earned $0.61.
• Broadcom Corp. (BRCM). Expected to report Q4 earnings of $0.32 per share, up 2.90% from the same quarter last year when the company earned $0.31.
• Consolidated Edison Inc. (ED). Expected to report Q4 earnings of $0.61 per share, down 21.54% from the same quarter last year when the company earned $0.78.
• E-Trade Financial Corp. (ETFC). Expected to report Q4 loss of $2.91 per share.
• Kimberly-Clark Corp. (KMB). Expected to report Q4 earnings of $1.11 per share, an increase of 8.06% from the same quarter last year when the company earned $1.03.
• Microsoft Corp. (MSFT). Expected to report Q2 earnings of $0.46 a share, up 75.77% from the same quarter last year when the company earned $0.26.
• Northrop Grumman Corp. (NOC). Expected to report Q4 earnings of $1.31 per share, up 1.78% from the same quarter last year when the company earned $1.29.
• Sun Microsystems Inc. (JAVA). Expected to report Q2 earnings of $0.30 per share, up 86.88% from the same quarter last year when the company earned $0.16.
• Union Pacific Corp. (UNP). Expected to report Q4 earnings of $1.77 per share, down 0.67% from the same quarter last year when the company earned $1.78.
• US Airways Group (LCC). Expected to report Q4 loss of $0.76 per share.
AT&T Net Jumps 62% on Wireless Gains...
Earnings climb to $3.14 billion, or 51¢ a share, helped by strength in its wireless business, which adds 2.68 million subscribers. Subscriber-growth slows markedly in its broadband and video segments.
Potash (POT) Posts Record Earnings....
Potash Corp. of Saskatchewan (POT) posted its highest quarterly profit on record in the fourth quarter and sees first-quarter and 2008 earnings well above expectations as the fertilizer maker increased prices amid rising demand for its products. Saskatoon, Saskatchewan-based Potash posted net income of $376.8 million, or $1.16 a share, up from $186 million, or 58 cents a share, a year earlier.
The latest quarter's results include a $26.5 million charge related to investments and a $35.4 million decrease in income-tax expense and future tax liability. Prior-year results included $31 million in income-tax and foreign-currency gains.
Revenue surged 40% to $1.43 billion. The mean estimates of analysts polled by Thomson Financial were for earnings of 98 cents a share on $1.24 billion in revenue. Gross margin rose to 37.4% from 29.3%.
Potash is up 10 premarket to $130. The stock is down from a high of $152 hit on January 15.
The latest quarter's results include a $26.5 million charge related to investments and a $35.4 million decrease in income-tax expense and future tax liability. Prior-year results included $31 million in income-tax and foreign-currency gains.
Revenue surged 40% to $1.43 billion. The mean estimates of analysts polled by Thomson Financial were for earnings of 98 cents a share on $1.24 billion in revenue. Gross margin rose to 37.4% from 29.3%.
Potash is up 10 premarket to $130. The stock is down from a high of $152 hit on January 15.
Treasury Yields Spike Higher....
This morning, the yield on the 10-year Treasury note is spiking higher to 3.58%. The yield bottomed out yesterday at 3.28%. That is a big move for Treasury yields.
Yields fell for two reasons:
1. a flight to safety...as the stock market sold off over the past three weeks
2. in response to talk that the economy is slipping into a recession.
This morning...the spike higher in rates means money is coming back out of "safe" treasury investments...into the stock market. Let's keep an eye on yields, as a move higher would be more healthy for stocks.
Yields fell for two reasons:
1. a flight to safety...as the stock market sold off over the past three weeks
2. in response to talk that the economy is slipping into a recession.
This morning...the spike higher in rates means money is coming back out of "safe" treasury investments...into the stock market. Let's keep an eye on yields, as a move higher would be more healthy for stocks.
Wal-Mart to get into Pharmacy Benefit Management Business???
In a speech Wednesday before 7,000 Wal-Mart store managers at a meeting in Kansas City, Mo., Chief Executive Lee Scott said Wal-Mart is initiating a pilot program to help "select employers ... manage how they process and pay prescription claims."
Pharmacy-benefit managers, or PBMs, are the companies behind the cards that insured patients present at drugstores in order to fill their prescriptions. Most U.S. employers contract with PBMs to provide prescription drug coverage to their workers, and in exchange, the PBMs promise to negotiate lower prices from retail pharmacies and obtain rebates from drug manufacturers. PBMs also own their own mail-order pharmacies, and increasingly make much of their profits from big mark-ups on generic drugs. A record number of blockbuster drugs are going generic, fueling strong profits and rising revenues among the PBMs.
CVS Caremark Corp. (CVS) is expected to report revenue of $76.13 billion for 2007, while Medco Health Solutions Inc. (MHS) is expected to post revenue of $44.7 billion and Express Scripts Inc. (ESRX) $18.4 billion, according to Morgan Stanley. Combined, the three companies processed or filled 387 million prescriptions in the third quarter of 2007.
Wal-Mart could take a chunk of that.
Pharmacy-benefit managers, or PBMs, are the companies behind the cards that insured patients present at drugstores in order to fill their prescriptions. Most U.S. employers contract with PBMs to provide prescription drug coverage to their workers, and in exchange, the PBMs promise to negotiate lower prices from retail pharmacies and obtain rebates from drug manufacturers. PBMs also own their own mail-order pharmacies, and increasingly make much of their profits from big mark-ups on generic drugs. A record number of blockbuster drugs are going generic, fueling strong profits and rising revenues among the PBMs.
CVS Caremark Corp. (CVS) is expected to report revenue of $76.13 billion for 2007, while Medco Health Solutions Inc. (MHS) is expected to post revenue of $44.7 billion and Express Scripts Inc. (ESRX) $18.4 billion, according to Morgan Stanley. Combined, the three companies processed or filled 387 million prescriptions in the third quarter of 2007.
Wal-Mart could take a chunk of that.
BUY: Stryker Corp. (SYK)
Stryker Corp. (SYK). The Kalamazoo, Mich-based medical device maker said late Wednesday fourth-quarter net income rose to $276.1 million, or 66 cents a share, from $227.9 million, or 55 cents a share, a year earlier, due in part to increased sales. The medical technology company's sales rose to $1.66 billion from $1.4 billion a year earlier.
The company expects 2008 earnings from continuing operations of about $2.88. The company added it remains optimistic about growth in the orthopedic market and expects to meet analysts' profit forecasts this year.
Stryker has been a consistent performer since it broke out of a two year base late in 2006. The stock trades currently at $67.....down from a high of $76.89. The company make orthopedic implants and artificial knee and shoulder joints... As Baby Boomers age, and their joints start to fail from years of workouts...Stryker should benefit.
The company expects 2008 earnings from continuing operations of about $2.88. The company added it remains optimistic about growth in the orthopedic market and expects to meet analysts' profit forecasts this year.
Stryker has been a consistent performer since it broke out of a two year base late in 2006. The stock trades currently at $67.....down from a high of $76.89. The company make orthopedic implants and artificial knee and shoulder joints... As Baby Boomers age, and their joints start to fail from years of workouts...Stryker should benefit.
Wednesday, January 23, 2008
Daily Summary....
U.S. Markets
Dow +298.98 (+2.50%)
Nasdaq +24.14 (+1.05%)
S&P 500 +28.10 (+2.14%)
News That Moved the Market
Regulators Meet to Save Bond Insurers. The markets rallied Wednesday on solid volume. One of the catalysts for the move was news that U.S. banks were meeting with New York State insurance regulators in an effort to sure up funds for struggling bond insurers. The new capital would help bond insurers keep their AAA ratings. Ratings downgrades could spark another panic and oversupply in the credit market, as well as push banks profits even lower. Bond insurers like MBIA (MBI, +32.6%) and Ambac (ABK, +71.9%) jumped on the news and the previously weak financial sector led Wednesday's rally.
Apple Drags Down Tech. The tech sector underperformed mainly because of last night's Apple (AAPL, -10.7%) earnings report, which beat estimates, but offered a disappointing forecast.
Pfizer Back on Track. Pfizer (PFE, +2.8%) announced fourth-quarter earnings that beat expectations and surprised the Street by upping its 2008 outlook.
Ebay's CEO Steps Down; Outlook Disappoints. Ebay's (EBAY, 6.7% day; -8.3% A.H.) CEO Meg Whitman announced she will retire and be replaced internally by John Donohoe. Ebay also reported a 53% increase in sales after the bell, but was down in after hours trading because of a gloomy 2008 outlook.
Tomorrow:
Notable Earnings:
Amgen (AMGN)
AT&T (T)
Ford (F)
Microsoft (MSFT)
Nokia (NOK)
8:30 AM: Jobless Claims
10:00 AM: Existing Home Sales
10:30 AM: Crude Inventories
Dow +298.98 (+2.50%)
Nasdaq +24.14 (+1.05%)
S&P 500 +28.10 (+2.14%)
News That Moved the Market
Regulators Meet to Save Bond Insurers. The markets rallied Wednesday on solid volume. One of the catalysts for the move was news that U.S. banks were meeting with New York State insurance regulators in an effort to sure up funds for struggling bond insurers. The new capital would help bond insurers keep their AAA ratings. Ratings downgrades could spark another panic and oversupply in the credit market, as well as push banks profits even lower. Bond insurers like MBIA (MBI, +32.6%) and Ambac (ABK, +71.9%) jumped on the news and the previously weak financial sector led Wednesday's rally.
Apple Drags Down Tech. The tech sector underperformed mainly because of last night's Apple (AAPL, -10.7%) earnings report, which beat estimates, but offered a disappointing forecast.
Pfizer Back on Track. Pfizer (PFE, +2.8%) announced fourth-quarter earnings that beat expectations and surprised the Street by upping its 2008 outlook.
Ebay's CEO Steps Down; Outlook Disappoints. Ebay's (EBAY, 6.7% day; -8.3% A.H.) CEO Meg Whitman announced she will retire and be replaced internally by John Donohoe. Ebay also reported a 53% increase in sales after the bell, but was down in after hours trading because of a gloomy 2008 outlook.
Tomorrow:
Notable Earnings:
Amgen (AMGN)
AT&T (T)
Ford (F)
Microsoft (MSFT)
Nokia (NOK)
8:30 AM: Jobless Claims
10:00 AM: Existing Home Sales
10:30 AM: Crude Inventories
Market Rallies to close higher.....
Dow + 298
S&P + 28
Nasdaq +24
News that the State of New York Insurers Association was in discussions to bail out major bond insurers, sent the market sharply higher in the last hour of trading. The downgrade of Ambac by Fitch last Friday is one of the main reasons we sold off hard on Tuesday across the globe.
As I said earlier, we were severely oversold, and some sort of good news was needed to turn the direction of the market. This news did the trick. Now, we need to see a follow thru rally tomorrow to at least start to close the chapter in this worst January selloff ever.
We're not out of the woods yet...by any means...but this was a start.
EBay out with earnings after the bell. Right now, the stock is down about 8%.
More later.
S&P + 28
Nasdaq +24
News that the State of New York Insurers Association was in discussions to bail out major bond insurers, sent the market sharply higher in the last hour of trading. The downgrade of Ambac by Fitch last Friday is one of the main reasons we sold off hard on Tuesday across the globe.
As I said earlier, we were severely oversold, and some sort of good news was needed to turn the direction of the market. This news did the trick. Now, we need to see a follow thru rally tomorrow to at least start to close the chapter in this worst January selloff ever.
We're not out of the woods yet...by any means...but this was a start.
EBay out with earnings after the bell. Right now, the stock is down about 8%.
More later.
Noon Update....
Dow - 165
S&P - 23
Nasdaq -60
This is ugly a selloff as I've ever seen and it all started on a whim, as traders decided to sell off stocks and take profits beginning on December 27.
The idiots on TV are saying that they want to see a complete washout of 600+ points in one day. That's a bunch of Bull. We've seen the market drop almost 2,000 points from this created hysteria. Enough is enough.
At some point the traders who have willed the market to crash will turn and go long. Not sure when that happens but I think it is soon.
S&P - 23
Nasdaq -60
This is ugly a selloff as I've ever seen and it all started on a whim, as traders decided to sell off stocks and take profits beginning on December 27.
The idiots on TV are saying that they want to see a complete washout of 600+ points in one day. That's a bunch of Bull. We've seen the market drop almost 2,000 points from this created hysteria. Enough is enough.
At some point the traders who have willed the market to crash will turn and go long. Not sure when that happens but I think it is soon.
Another critical day for the Market....
Dow opened -260 currently -110
S&P opened -32 currently - 15
Nasdaq opened -68 currently -32
This negativity needs to stop today. We need to rally and close higher or I fear the panic will really start to set in.
S&P opened -32 currently - 15
Nasdaq opened -68 currently -32
This negativity needs to stop today. We need to rally and close higher or I fear the panic will really start to set in.
Earnings the Rest of this Week...
Wednesday
Abbott Laboratories (ABT) 4Q .92 BMO
Brinker Intl Inc. (EAT) 2Q .33 BMO
Capital One Fincl Corp. (COF) 4Q .90 4:05PM
Coach Inc. (COH) 2Q .69
ConocoPhillips (COP) 4Q 2.37 8:30AM
Delta Air Lines Inc. (DAL) 4Q (.13)
eBay Inc. (EBAY) 4Q .38
Freeport-McMoRan Copper & Gold Inc. (FCX) 4Q 1.76 BMO
General Dynamics Corp. (GD) 4Q 1.41
Gilead Sciences Inc. (GILD) 4Q .41 4:05PM
LSI Corp. (LSI) 4Q .06 AMC
Motorola Inc. (MOT) 4Q .12 7:00AM
Netflix Inc. (NFLX) 4Q .13
QLogic Corp. (QLGC) 3Q .23 AMC
QUALCOMM Inc. (QCOM) 1Q .49 4:00PM
SLM Corp. (SLM) 4Q .39 BMO
Southwest Airlines Co. (LUV) 4Q .11 BMO
St. Jude Medical Inc. (STJ) 4Q .49 8:00AM
Stryker Corp. (SYK) 4Q .66 4:00PM
SunTrust Banks Inc. (STI) 4Q .42 BMO
United Tech Corp. (UTX) 4Q 1.07 BMO
WellPoint Inc. (WLP) 4Q 1.50 6:00AM
Western Digital Corp. (WDC) 2Q 1.00 AMC
Thursday
American Express Co. (AXP) 4Q .74
Amgen Inc. (AMGN) 4Q .96
AT&T Inc. (T) 4Q .71 8:00AM
Baxter Intl Inc. (BAX) 4Q .75
Beazer Homes USA Inc. (BZH) 1Q (1.86)
Becton Dickinson & Co. (BDX) 1Q 1.03
Broadcom Corp. (BRCM) 4Q .28 AMC
Cooper Indus Inc. (CBE) 4Q .82 BMO
E*TRADE Fincl Corp. (ETFC) 4Q (3.15) AMC
Eastman Chemical Co. (EMN) 4Q 1.06 5:00PM
Ford Motor Co. (F) 4Q (.22) 7:00AM
Hershey Co. (HSY) 4Q .56
Juniper Networks Inc. (JNPR) 4Q .22 AMC
Kimberly-Clark Corp. (KMB) 4Q 1.11
Lockheed Martin Corp. (LMT) 4Q 1.70
Nokia Corp. (ADR) (NOK) 4Q .61 6:00AM
Northrop Grumman Corp. (NOC) 4Q 1.31
Nucor Corp. (NUE) 4Q 1.20
Potash Corp. of Saskatchewan Inc. (POT) 4Q .97
Sun MicroSyss Inc. (JAVA) 2Q .30
SunPower Corp. (SPWR) 4Q .35
Union Pacific Corp. (UNP) 4Q 1.79 8:45AM
US Airways Grp Inc. (LCC) 4Q (.16)
Xerox Corp. (XRX) 4Q .41 7:00AM
Friday
AirTran Hldgs Inc. (AAI) 4Q .03
Caterpillar Inc. (CAT) 4Q 1.49 7:30AM
Fortune Brands Inc. (FO) 4Q 1.44
Harley-Davidson Inc. (HOG) 4Q .81 BMO
Harman Intl Indus Inc. (HAR) 2Q .76
Honeywell Intl Inc. (HON) 4Q .91 BMO
IDEXX Laboratories Inc. (IDXX) 4Q .36 7:00AM
ImClone Syss Inc. (IMCL) 4Q .28
Weatherford Intl Ltd. (WFT) 4Q .96
Abbott Laboratories (ABT) 4Q .92 BMO
Brinker Intl Inc. (EAT) 2Q .33 BMO
Capital One Fincl Corp. (COF) 4Q .90 4:05PM
Coach Inc. (COH) 2Q .69
ConocoPhillips (COP) 4Q 2.37 8:30AM
Delta Air Lines Inc. (DAL) 4Q (.13)
eBay Inc. (EBAY) 4Q .38
Freeport-McMoRan Copper & Gold Inc. (FCX) 4Q 1.76 BMO
General Dynamics Corp. (GD) 4Q 1.41
Gilead Sciences Inc. (GILD) 4Q .41 4:05PM
LSI Corp. (LSI) 4Q .06 AMC
Motorola Inc. (MOT) 4Q .12 7:00AM
Netflix Inc. (NFLX) 4Q .13
QLogic Corp. (QLGC) 3Q .23 AMC
QUALCOMM Inc. (QCOM) 1Q .49 4:00PM
SLM Corp. (SLM) 4Q .39 BMO
Southwest Airlines Co. (LUV) 4Q .11 BMO
St. Jude Medical Inc. (STJ) 4Q .49 8:00AM
Stryker Corp. (SYK) 4Q .66 4:00PM
SunTrust Banks Inc. (STI) 4Q .42 BMO
United Tech Corp. (UTX) 4Q 1.07 BMO
WellPoint Inc. (WLP) 4Q 1.50 6:00AM
Western Digital Corp. (WDC) 2Q 1.00 AMC
Thursday
American Express Co. (AXP) 4Q .74
Amgen Inc. (AMGN) 4Q .96
AT&T Inc. (T) 4Q .71 8:00AM
Baxter Intl Inc. (BAX) 4Q .75
Beazer Homes USA Inc. (BZH) 1Q (1.86)
Becton Dickinson & Co. (BDX) 1Q 1.03
Broadcom Corp. (BRCM) 4Q .28 AMC
Cooper Indus Inc. (CBE) 4Q .82 BMO
E*TRADE Fincl Corp. (ETFC) 4Q (3.15) AMC
Eastman Chemical Co. (EMN) 4Q 1.06 5:00PM
Ford Motor Co. (F) 4Q (.22) 7:00AM
Hershey Co. (HSY) 4Q .56
Juniper Networks Inc. (JNPR) 4Q .22 AMC
Kimberly-Clark Corp. (KMB) 4Q 1.11
Lockheed Martin Corp. (LMT) 4Q 1.70
Nokia Corp. (ADR) (NOK) 4Q .61 6:00AM
Northrop Grumman Corp. (NOC) 4Q 1.31
Nucor Corp. (NUE) 4Q 1.20
Potash Corp. of Saskatchewan Inc. (POT) 4Q .97
Sun MicroSyss Inc. (JAVA) 2Q .30
SunPower Corp. (SPWR) 4Q .35
Union Pacific Corp. (UNP) 4Q 1.79 8:45AM
US Airways Grp Inc. (LCC) 4Q (.16)
Xerox Corp. (XRX) 4Q .41 7:00AM
Friday
AirTran Hldgs Inc. (AAI) 4Q .03
Caterpillar Inc. (CAT) 4Q 1.49 7:30AM
Fortune Brands Inc. (FO) 4Q 1.44
Harley-Davidson Inc. (HOG) 4Q .81 BMO
Harman Intl Indus Inc. (HAR) 2Q .76
Honeywell Intl Inc. (HON) 4Q .91 BMO
IDEXX Laboratories Inc. (IDXX) 4Q .36 7:00AM
ImClone Syss Inc. (IMCL) 4Q .28
Weatherford Intl Ltd. (WFT) 4Q .96
Traders in Control....
This market is now feeding on itself. As we mentioned last week, it was important that the Fed act IMMEDIATELY to stem the shift in sentiment. They waited too long.....now they have no respect from the Traders.
We are now completely at the mercy of Hedge Funds and Traders who enjoy selling the market off...because they are short. I had feared the fact that over the past five years, the number of Hedge Funds increased exponentially as did the number of Exchange Traded Funds that enable traders to sell off multiple stocks with a single trade. This is why.
Now...the world economy is all of a sudden collapsing??? Yeah, right. This is a joke, but unfortunately you can lose alot of money as a result. We need some good news to turn this around. Apple's warning didn't help at all. Microsoft is the next big name to announce earnings....on Thursday.
We are now completely at the mercy of Hedge Funds and Traders who enjoy selling the market off...because they are short. I had feared the fact that over the past five years, the number of Hedge Funds increased exponentially as did the number of Exchange Traded Funds that enable traders to sell off multiple stocks with a single trade. This is why.
Now...the world economy is all of a sudden collapsing??? Yeah, right. This is a joke, but unfortunately you can lose alot of money as a result. We need some good news to turn this around. Apple's warning didn't help at all. Microsoft is the next big name to announce earnings....on Thursday.
Before the Bell.....
U.S. stock futures are trading lower this morning after a disappointing outlook from Apple stoked concerns about a slowdown in consumer spending in a market that remains unconvinced that yesterday's surprise interest rate cut from the Federal Reserve can stave off a recession.
Elsewhere, Europe's leading exchanges edged higher in opening trade, helped by gains in the insurance sector on merger and acquisition talk surrounding Swiss Re and Prudential. But investors remained cautious as they continue to assess the implications of the U.S. Federal Reserve's interest rate cut.
Elsewhere, Europe's leading exchanges edged higher in opening trade, helped by gains in the insurance sector on merger and acquisition talk surrounding Swiss Re and Prudential. But investors remained cautious as they continue to assess the implications of the U.S. Federal Reserve's interest rate cut.
Tuesday, January 22, 2008
More on Texas Instruments....
Texas Instruments Forecasts Solid Outlook.
Mobile-phone chipmaker Texas Instruments (TXN, -1.4% day; +1.5% A.H.) also reported after the bell, announcing a 13% increase in profits and a forecast for the current quarter that beat analysts' expectations.
Mobile-phone chipmaker Texas Instruments (TXN, -1.4% day; +1.5% A.H.) also reported after the bell, announcing a 13% increase in profits and a forecast for the current quarter that beat analysts' expectations.
More on Apple.....
Apple Drops in After Hours. Apple (AAPL, -3.5% day; -10.0% A.H.) announced after the bell that profits increased 57%, but provided a forecast that disappointed analysts.
Though the company is very susceptible to a consumer slowdown, it should also be noted that the company has issued forecasts that have missed seven out of the last eight quarters, but has beaten analysts' expectations every quarter the last three years.
Though the company is very susceptible to a consumer slowdown, it should also be noted that the company has issued forecasts that have missed seven out of the last eight quarters, but has beaten analysts' expectations every quarter the last three years.
Texas Instruments Beats Estimates....
TXN trying to lift market but Apple pulling it lower.
TXN trading up 1 point to $29.90 in aftermarket.
TXN trading up 1 point to $29.90 in aftermarket.
Apple Beats Q1 Estimates but Warns for Q2....
Apple posts earnings of $1.76 a share vs. $1.62 estimate, however, they lower guidance for Q2 to $.94 from $1.08.
Apple is down 14 points in aftermarket to $141.00
That's after a 5 point loss in today's trading...
Hopefully Conference Call will ease fears a bit.
Apple is down 14 points in aftermarket to $141.00
That's after a 5 point loss in today's trading...
Hopefully Conference Call will ease fears a bit.
Decent Close.....
Dow - 127
S&P - 14
Nasdaq - 48
Not a bad close considering where we started the day. Now waiting on Apple and Texas Instruments earnings.
S&P - 14
Nasdaq - 48
Not a bad close considering where we started the day. Now waiting on Apple and Texas Instruments earnings.
3:30 Update....
Dow - 45
S&P - 5
Nasdaq - 35
Looks like we have a chance to close positive...believe it or not. If we do...that is UGE...with no "H".
We still would be very dependent on earnings after the bell from Apple and Texas Instruments.
S&P - 5
Nasdaq - 35
Looks like we have a chance to close positive...believe it or not. If we do...that is UGE...with no "H".
We still would be very dependent on earnings after the bell from Apple and Texas Instruments.
Two Hours to Go....
Dow -170
S&P - 21
Nasdaq - 52
This is an important last two hours of trading. As we said earlier, there will be some downward pressure from possible Margin Calls until around 2:30 pm.
After that, it's going to be a battle between Bulls and Bears. Any improvement from where we are right now, would be positive. A higher close could mark the end of the selloff.
S&P - 21
Nasdaq - 52
This is an important last two hours of trading. As we said earlier, there will be some downward pressure from possible Margin Calls until around 2:30 pm.
After that, it's going to be a battle between Bulls and Bears. Any improvement from where we are right now, would be positive. A higher close could mark the end of the selloff.
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