Market down, but not as bad as it looks...

A nice little comeback in the last 20 minutes, as it looks like traders scooped up some bargains going into the close.

Dow -100 to 11139
Nas -6 to 2473
S&P -8 to 1165

Even though the headline number looks bad, don't be surprised if you actually had gains on the day in your mutual funds. 

O'Reilly Automotive (ORLY) hits all time high...

The stock is up 0.87 to a new all-time high of 66.62

O'Reilly Automotive, which operates a chain of auto parts stores, also received an earnings related lift on July 27, with the company raising its guidance on 2011 adjusted earnings to a range of $3.53 to $3.63 per share compared to the previous guidance range of $3.49 to $3.59.

O'Reilly Automotive also recently added another $500 million to its stock repurchase program, increasing the total authorization to $1 billion. The stock finished August up by 9%.

Vertex up on Arthritis Drug results...

Vertex Pharmaceuticals (VRTX) is up today after results from Phase II studies of its VX-509 drug showed significantly reduced signs and symptoms of rheumatoid arthritis.

VRTX is up 0.58 to 45.18

What kind of drugs....

was the designer of the new Maryland uniforms on???  That must have been some good stuff...

With one hour left....

With one hour left of trading, it appears that Traders might be a bit nervous about holding stocks overnight.  We keep trying to rally, but then program selling keeps kicking back in. 

Hopefully we can further trim our losses over the next hour.  I'm not too optimistic of that, as I think traders will be reluctant to hold positions overnight for fear of more problems in Europe.

Right now:

Dow -156
Nas -21
S&P -14

Retail chains to open more stores...

More than half of U.S. retail chains plan to open more stores because of lower rents, a report by CB Richard Ellis Group Inc. (CBG) found.

Fifty-nine percent of retailers surveyed said “compelling rent levels” are encouraging them to expand, according to Anthony Buono, executive managing director of CB Richard Ellis’s retail services group for the Americas. The company, based in Los Angeles, is the world’s largest commercial real estate services firm.

“A significant number of retailers will be taking advantage of an opportune time for growth,” Buono said in an e- mailed statement. “Luxury goods, wholesale clubs and discounters in particular are expected to continue to expand.”

REIT leader, Simon Property Group is moving higher today, up 1.82 to 116.38

RIMM partners with China Mobile...

Research In Motion (RIMM) has started selling its first BlackBerry that is compatible with China Mobile's (CHL) home-grown cellular standard, a move that would allow it to tap into the operator's 620 million users.  RIM said it would begin selling the BlackBerry 9788, based on the TD-SCDMA 3G data network standard used by China Mobile, the world's biggest mobile operator by users.

While the BlackBerry smartphone has been available in China since late last year, China Mobile users have had to live with slower download speeds because the mobile operator uses a different, homegrown 3G standard.

Both stocks are higher today:

CHL +1.23 to 50.58
RIMM +0.73 to 30.84

Only three Dow stocks higher...

As I said, my screen is about 50/50 red and green right now, however only Caterpillar, Johnson and Johnson and Pfizer are higher on the Dow.

A clear sign the traders are chasing high beta stocks in here.

Consumer Discretionary stocks moving higher....

With the Dow still down 150 points, check out these Consumer Discretionary stocks:

Chipotle (CMG) +3.68 to 309.18
Green Mountain Coffee (GMCR) +1.35 to 104.92
Apple (AAPL) + 2.32 to 376.55
Panera (PNRA) +0.72 to 111.24
Netflix (NFLX) + 5.60 to 218.70
Whole Foods (WFM) +0.85 to 63.95

Market creeping back....

At 1:50 pm, my screen is about 50/50 green and red...that's a very good sign even though the Dow is still down 152 points....

Report on Alexion Pharmaceuticals from IBD...

Alexion Pharmaceuticals (ALXN) may well have just hit the tip of the iceberg with the number of diseases its drug Soliris can treat.

Soliris, Alexion's only drug, is approved in over 35 countries to treat one rare life-threatening blood disorder called paroxysmal nocturnal hemoglobinuria, or PNH.

But Alexion isn't likely to be a one-trick pony for long. The company expects the Food and Drug Administration to decide if Soliris can be marketed to treat another rare disease, atypical Hemolytic Uremic Syndrome, or aHUS, as early as this year's fourth quarter. The disease primarily affects kidney function. If approved, Alexion officials anticipate the U.S. launch of Soliris for aHUS during the same quarter.

Alexion has enjoyed a booming business with Soliris' single application. Sales and profits have surged at double-digit rates for eight straight quarters. Most recently, in the second quarter, earnings climbed 45% to 29 cents a share, topping views for the 14th straight quarter. Sales popped 48% to $185.7 million.


The company got a nice bump from strong growth in the U.S., Western Europe and Japan. It also got a lift from its results reflecting the first full quarter of Soliris sales from Australia. A slight positive foreign exchange effect also helped.

Alexion is poised to stay on the fast track. Analysts polled by Thomson Reuters expect full-year earnings to rise 30% to $1.16 a share. They see a 37% jump in 2012.

The stock is up again today +1.69 to 58.58

There are a few stocks moving higher....

With the Dow down 200 points, we still see some familiar names bucking the trend:

Netflix (NFLX) +2.79 to 215.90
Perrigo (PRGO) +1.01 to 90.90
Mako Surgical (MAKO) +0.24 to 37.14
Terra Nitrogen (TNH) +2.00 to 184
Amazon (AMZN) +1.20 to 211.25
Research in Motion (RIMM) +0.44 to 30.55
Hansen Natural (HANS) +1.05 to 84.68
CF Industries (CF) +1.16 to 183.03

Here's why Netflix is up...

Netflix (NFLX), which announced yesterday it would be rolling out its Latin American and Caribbean services over the course of this week, has reached a multi-year deal with Miramax to stream films to Latin American subscribers. Both Netflix and Hulu already have deals to offer Miramax content to U.S. subscribers.


Netflix is up 2.69 to 215.80 today.

Express Scripts - Medco Health Merger postponed...

The waiting period for the proposed merger between Medco Health (MHS) and Express Scripts (ESRX) is postponed by 30 days after the FTC requests additional information on the deal. The firms are pushing the paperwork forward, and say the $29.1B merger is still slated for completion in the first half of 2012.

Here's a timely downgrade for you....

Wedbush slashes its price target on shares of Travelzoo (TZOO) to $72 from $107 on concerns over increased competition and declining sales. The new price target still marks a premium of 125% over TZOO's current trading price after a month-long downward slide saw the stock lose 33%.

Travelzoo is currently trading at $32.  It was at $92 on July 20, 2011.

Thank you Wedbush!!!  This is helpful. 

Government regulations a problem....

The U.S. government "doesn't seem to care what it's doing to the economy" in its actions against banks, and risks forcing a recession, Dick Bove says. Bove says banks that engage in traditional businesses are being rewarded, while those that lend more aggressively - and help the economy grow - are penalized.

At 11:00 am....

The market continues to be weak...

Dow -252
Nas -55
S&P -27

Gold is up but down off its earlier highs.  My screen is pretty red, but is starting to turn more green in the last few minutes.

Expansion??? I thought we were in a depression...

August ISM Non-Manufacturing Index: 53.3 vs. 51 expected and 52.7 prior (>50 denotes expansion). Prices index rose to 64.2 from 56.6. Employment fell to 51.6 from 52.5. New orders rose to 52.8 from 51.7.

Honda issues another recall...

Honda (HMC -4.6%) on Monday said it will recall 936,000 Fit compacts, CR-V and City models in Japan, China, the U.S., Europe and elsewhere because of defective power-window switches. Honda had recalled more than 2.3M vehicles only a month ago, citing problems with automatic transmissions.

Today's Upgrades and Downgrades...

These are some of this Tuesday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.


Activision Blizzard, Inc. (NASDAQ: ATVI) Started as Buy at Citigroup.
BE Aerospace Inc. (NASDAQ: BEAV) Started as Buy at BofA/ML.
CF Industries Holdings, Inc. (NYSE: CF) Raised to Outperform as Bull of the Day at Zacks.
Dillard’s Inc. (NYSE: DDS) called Value Stock of the Day at Zacks.
Dunkin’ Brands Group (NASDAQ: DNKN) Started as Equal-Weight at Morgan Stanley; Started as Market Perform at Wells Fargo; Started as Overweight at JPMorgan; Started as Neutral at BofA/ML.
Electronic Arts Inc. (NASDAQ: ERTS) Raised to Hold at Citigroup.
LDK Solar Co., Ltd. (NYSE: LDK) Cut to Sell at Argus.
Merge Healthcare (NASDAQ: MRGE) named as Bear of the Day at Zacks.
National Oilwell Varco (NYSE: NOV) Raised to Buy at Argus.
PulteGroup, Inc. (NYSE: PHM) maintained Buy but removed from Conviction Buy List at Goldman Sachs.
SodaStream International Ltd. (NASDAQ: SODA) Raised to Overweight at JPMorgan.
Teavana Holdings, Inc. (NYSE: TEA) started as Outperform at William Blair; Started as Neutral at BofA/ML.
United States Steel Corp. (NYSE: X) Raised to Buy at Citigroup.
Wesco Aircraft Holdings, Inc. C (NYSE: WAIR) Started as Buy at BofA/ML

Netflix bouncing this morning...

After getting crushed on Friday, Netflix is one of the few stocks moving higher today.

It is currently climbing +2.26 to 215.30

Remember NFLX sold off 20 points Friday on news that Starz was not going to renew its content contract with Netflix.  Maybe the two will settle their differences???

A lovely open....

More selling here at the open, in sympathy European troubles yesterday...

Dow -265
Nas -50
S&P -29

Starbucks expanding in China...

Starbucks (SBUX) plans to triple the number of its coffee shops in China during the next four years, according to its Asia Pacific president. Jinlong Wang says Starbucks plans to operate 1,500 outlets in China by 2015 from its current 470, and expects to open 700 coffee shops in South Korea from 370.

Dendreon cuts ties with Glaxo...

Dendreon Corp. (DNDN). The biotechnology company said it ended a development and supply agreement with GlaxoSmithKline LLC (GSK) on Dendreon's prostate cancer vaccine, citing delays and difficulties in achieving the commercial purpose of the deal.

Dendreon's stock has fallen from $42 to $10.30 in the last 30 days. 

Dell and Baidu team up...

Dell Inc. (DELL). The company is partnering with China's top search engine Baidu Inc (BIDU) to develop tablet computers and mobile phones, targeting the Chinese market now dominated by Apple Inc (AAPL) and Lenovo devices. Dell declined to give a timeline for the launch of the devices, but local media reported, quoting sources, that it may be as early as November.

Amazon targets Apple...

Amazon.com Inc. (AMZN). The online retailer is rolling out a major redesign of its familiar website as it prepares to offer a new $250 tablet device to rival Apple Inc's (AAPL) iPad.

Crude Falling....

The crude oil market - not to be left out of today's turbulence - is being pushed lower by worries about the world economy, though traders are also keeping track of limited Gulf of Mexico oil production due to Tropical Storm Lee.


Crude is currently down $2.82 to $83.63 a barrel.


Now, forgive me if I am wrong, but shouldn't this be a positive???

Treasury Rates continue to fall...

The U.S. treasury market is especially worth watching today, after the yield on the benchmark 10-year note dipped to 1.91%, the lowest in at least 60 years.  The yield is only marginally above that level at the moment at 1.94%.

Welcome Back my Friends....

After two upbeat Septembers, the month is reverting back to historical form this year as the year's worst performing month: the Dow, the S&P 500, and the Nasdaq have all posted their biggest 2-session drops to start September since 1974. 


Today's early action isn't likely to be much better, following a European market selloff Monday during Wall Street's Labor Day holiday.  Japan's Nikkei Averages fell 2.2% overnight to close at a 2011 low.