Monday, February 11, 2008
Another iPhone Price Drop Coming...
Sources say Apple (AAPL) will again drop prices on the iPhone and iPod Touch within the next two months -- by as much as $100.
Cree Inc. (CREE) Breaking higher....
CREE up 1.60 to $33.82
Cree Inc. is climbing back to the mid 30's, a level that has proven hard to break thru for the stock no less than 5 times in the past.
Keep a close eye on this as it looks like the stock is building momentum as it moves higher.
Cree Inc. is climbing back to the mid 30's, a level that has proven hard to break thru for the stock no less than 5 times in the past.
Keep a close eye on this as it looks like the stock is building momentum as it moves higher.
Noon Update....
Dow - 11
S&P + 2
Nasdaq +5
The market is holding up well in here following the negative news from AIG this morning. AIG is still down $5.75, but the Dow Average is about to turn positive.
The Dow fell to 12,069 this morning. The bottom made on January 22 was just above 12,000 (on the close). A retest would tend to reverse itself right around the 12,100 level....exactly where we turned around this morning. So....we're hoping that the retest may be over. Only time will tell. If we by chance slip below and close below 12,000...that would be very negative. If we hold above that 12,000 level, then maybe we can start to move forward. My guess is that we have bottomed.
S&P + 2
Nasdaq +5
The market is holding up well in here following the negative news from AIG this morning. AIG is still down $5.75, but the Dow Average is about to turn positive.
The Dow fell to 12,069 this morning. The bottom made on January 22 was just above 12,000 (on the close). A retest would tend to reverse itself right around the 12,100 level....exactly where we turned around this morning. So....we're hoping that the retest may be over. Only time will tell. If we by chance slip below and close below 12,000...that would be very negative. If we hold above that 12,000 level, then maybe we can start to move forward. My guess is that we have bottomed.
AIG Pulls Down the Dow....
American International Group Inc., the world's largest insurer by assets, fell as much as 6.1 percent after auditors found a ``material weakness'' in how the company values its credit-default swap portfolio.
AIG hasn't yet determined the decline in value that will be included in its 2007 financial statements, the New York-based insurer said in a regulatory filing today.
AIG stock is down 5.05 to $45.60 (a 5-year low).
AIG hasn't yet determined the decline in value that will be included in its 2007 financial statements, the New York-based insurer said in a regulatory filing today.
AIG stock is down 5.05 to $45.60 (a 5-year low).
Bush to Sign Stimulus Package on Wednesday...
President George W. Bush says he will sign a $152 billion economic stimulus package on Wednesday. After a brief spat over the cost, Congress agreed Thursday to a measure that would provide investment incentives and one-time tax rebates.
New Phones for Sony Ericsson...
Sony Ericsson (SNE) (ERIC) unveiled numerous new phones, including a phone based on Microsoft (MSFT) software, and the G900, with a 5-megapixel camera and a 2.4" touchscreen that rivals Apple's (AAPL) iPhone. Sony Ericsson said an upgraded version of its PlayNow internet and mobile phone service will be available in 30 countries within the year. The service rivals Apple's iTunes and Nokia's Ovi. CEO Hideki Komiyama says Sony Ericsson is looking to bolster its weak presence in the U.S., but called a purchase of Motorola's (MOT) handset unit unattractive.
Oil Spikes on Chavez Threats....
Chavez threatens oil supply disruption over Exxon case. Venezuelan President Hugo Chavez expanded his threats to cut off oil shipments to the United States, saying he would close the tap if oil companies succeed with lawsuits challenging his nationalizations.
Oil ran up $4.50 on Friday to $91.78, causing the US market to sell off in the afternoon.
Oil ran up $4.50 on Friday to $91.78, causing the US market to sell off in the afternoon.
The Latest on Delta / Northwest Deal...
Delta Air Lines Inc. (DAL), Northwest Airlines Corp. (NWA). The Atlanta, Georgia-based air carrier and the Eagan, Minnesota-based airline are trying to build a common labour contract for the 11,000 pilots at both airlines before they complete a merger deal, The Wall Street Journal reported Saturday, citing people familiar with the matter.
The negotiations, considered essential for smooth integration of those key labour groups, centre on organizing a fair way of forming a unified, seniority-based roster, the paper added.
The negotiations, considered essential for smooth integration of those key labour groups, centre on organizing a fair way of forming a unified, seniority-based roster, the paper added.
Earnings Due Today....
COMPANIES REPORTING EARNINGS
• Carlisle Cos. (CSL). Expected to post Q4 profit of $0.53 a share, down 3.96% from $0.56 per share earned same quarter last year.
• CNA Financial Corp. (CNA). Expected to report Q4 profit of $1.03 a share, up 13.19% from $0.91 earned same time last year.
• General Growth Properties Inc. (GGP). Expected to post a loss of $0.17 per share in the fourth quarter.
• Lincare Holdings (LNCR). Expected to post Q4 profit of $0.67 a share, up 14.2% from $0.59 earned same time last year.
• Valspar (VAL). Estimated to post profit of $0.23 a share in the first quarter.
• Carlisle Cos. (CSL). Expected to post Q4 profit of $0.53 a share, down 3.96% from $0.56 per share earned same quarter last year.
• CNA Financial Corp. (CNA). Expected to report Q4 profit of $1.03 a share, up 13.19% from $0.91 earned same time last year.
• General Growth Properties Inc. (GGP). Expected to post a loss of $0.17 per share in the fourth quarter.
• Lincare Holdings (LNCR). Expected to post Q4 profit of $0.67 a share, up 14.2% from $0.59 earned same time last year.
• Valspar (VAL). Estimated to post profit of $0.23 a share in the first quarter.
Changes to the Dow Industrials....
Dow Jones will make changes to the Industrial Average for the first time since 2004.
They have decided to add:
Chevron Texaco - which was taken out of the average in 1999...now back in...probably at the top of Oil prices...
Bank of America - adding a financial, probably at an opportune time.
In exchange, they are taking out:
Honeywell - the smallest of the Dow companies...
Altria (Philip Morris) - probably about time for this one to be taken out.
They have decided to add:
Chevron Texaco - which was taken out of the average in 1999...now back in...probably at the top of Oil prices...
Bank of America - adding a financial, probably at an opportune time.
In exchange, they are taking out:
Honeywell - the smallest of the Dow companies...
Altria (Philip Morris) - probably about time for this one to be taken out.
Yahoo Rejects Microsoft's Offer....
Yahoo! Inc. (YHOO) plans to reject Microsoft Corp.'s (MSFT) unsolicited $44.6 billion offer for it. The Wall Street Journal reports that Yahoo's board determined that the $31 per share offer "massively undervalues" Yahoo, according to a person familiar with the situation. It also doesn't account for the risks Yahoo would be taking by entering into an agreement that might be overturned by regulators, the Journal said.
What happens to Yahoo's share price in the coming days could help determine Microsoft's response. The stock traded at 4 p.m. Friday at $29.20, up 16 cents from previous day, on Nasdaq. If the stock stays at that level or goes up, that could be a signal that investors believe Yahoo is worth more than Microsoft's current bid. If the shares decline following news of the offer's rejection, that could lessen the pressure on Microsoft to increase its offer.
Yahoo playing games here...reports were that YHOO thinks their company is worth $41 a share....Maybe in your dreams, Yahoo..
What happens to Yahoo's share price in the coming days could help determine Microsoft's response. The stock traded at 4 p.m. Friday at $29.20, up 16 cents from previous day, on Nasdaq. If the stock stays at that level or goes up, that could be a signal that investors believe Yahoo is worth more than Microsoft's current bid. If the shares decline following news of the offer's rejection, that could lessen the pressure on Microsoft to increase its offer.
Yahoo playing games here...reports were that YHOO thinks their company is worth $41 a share....Maybe in your dreams, Yahoo..
Barron's: 3 Tech Stocks With Serious Potential...
Barron's says the January 2008 tech downturn is in no way similar to the crash of the dot-com bubble. Demand for network bandwidth continues to grow, and despite potential corporate penny pinching, few companies can afford to cut back on their internet strategies.
Tech Trader Eric Savitz outlines the bullish case on three tech stocks:
Cisco (CSCO) -- CEO John Chambers once again spooked investors by noting orders were down sharply in January, and warning FQ3 revenue will come up short. Shares fell 7% in extended trading, but were up $0.30 by day's-end. Cisco is sticking to its long-term estimates of 12-17% growth. Down 33% from its highs, shares are a solid long-term investment at 15x 2008 earnings. The company also holds $22B in cash and investments.
Akamai (AKAM) -- a content-delivery network [CDN] leader, demand for CDNs continues to boom as internet TV becomes a reality, no doubt a factor in AKAM's recent blowout quarter. CEO Paul Sagan doubts an economic downturn would much affect the company. With estimated 40% growth and trading at 20x 2008 earnings, shares look cheap.
JDS-Uniphase (JDSU) -- signs the company's turnaround is finally taking hold include: 1) Hitting GAAP profitability for the first time without needing asset sales. 2) Four quarters in a row of EPS and cash-flow growth. 3) The most recent quarter was perhaps the first time JDSU has seen simultaneous improvement in both gross margin and revenue across all its businesses. At 20x 2008 earnings, shares aren't cheap, but it's "an interesting speculative play on bandwidth growth."
Tech Trader Eric Savitz outlines the bullish case on three tech stocks:
Cisco (CSCO) -- CEO John Chambers once again spooked investors by noting orders were down sharply in January, and warning FQ3 revenue will come up short. Shares fell 7% in extended trading, but were up $0.30 by day's-end. Cisco is sticking to its long-term estimates of 12-17% growth. Down 33% from its highs, shares are a solid long-term investment at 15x 2008 earnings. The company also holds $22B in cash and investments.
Akamai (AKAM) -- a content-delivery network [CDN] leader, demand for CDNs continues to boom as internet TV becomes a reality, no doubt a factor in AKAM's recent blowout quarter. CEO Paul Sagan doubts an economic downturn would much affect the company. With estimated 40% growth and trading at 20x 2008 earnings, shares look cheap.
JDS-Uniphase (JDSU) -- signs the company's turnaround is finally taking hold include: 1) Hitting GAAP profitability for the first time without needing asset sales. 2) Four quarters in a row of EPS and cash-flow growth. 3) The most recent quarter was perhaps the first time JDSU has seen simultaneous improvement in both gross margin and revenue across all its businesses. At 20x 2008 earnings, shares aren't cheap, but it's "an interesting speculative play on bandwidth growth."
Friday, February 8, 2008
McDonald's January Sales Increase...
McDonald's Corp. (MCD) reported January global same-store sales rose 5.7%, as U.S. sales rebounded from December weakness and growth overseas was boosted by the beaten-down dollar.
MCD is up 1.80 to $56.26 this morning....
I could swear they just said last week that traffic was down...so which is it??? In fact the market sold off hard in reaction to that news.
MCD is up 1.80 to $56.26 this morning....
I could swear they just said last week that traffic was down...so which is it??? In fact the market sold off hard in reaction to that news.
Morgan Stanley Does Not Like Sears...
A continuing decline in sales and tight profit margins might hurt Sears' (SHLD) turnaround plans. "Until I can see why cash is low, I see no reason to own the stock," Morgan Stanley's Gregory Melich says.
Have you been to a K-Mart or Sears store lately??? No one there.
Have you been to a K-Mart or Sears store lately??? No one there.
Dell Dumps AMD...
Dell (DELL) has stopped selling AMD-powered (AMD) machines through its online store, including the Latitude D531, Vostro 1000 or OptiPlex 740.
This is good news for Intel (INTC).
This is good news for Intel (INTC).
Smartphones....
Research in Motion (RIMM) and Apple (AAPL) may be the primary beneficiaries of a massive consumer shift from basic cellphones to smart phones.
Go check out a cell phone store and ask them what the trend is...
Go check out a cell phone store and ask them what the trend is...
Another Take on Ethanol....
Ethanol may boost global warming. Researchers say widespread ethanol use could double any greenhouse gas emissions produced by the gasoline it replaces. Farmers growing biofuel plants destroy forests and grass, raising the amount of carbon in the atmosphere. Ethanol producers' Renewable Fuels Association called the research "simplistic."
Verizon Announces Stock Buyback..
Verizon (VZ) yesterday announced that its board has authorized the repurchase of up to 100 million shares. The authorization expires Feb. 28, 2011. Sounds like a lot of stock - 100 million shares! - but it would be just 3.4% of the company’s 2.9 billion shares outstanding, or about 1% of the float per year over the authorized period.
Verizon's stock has fallen from the mid 40's to $36.95 over the past three weeks. Their dividend currently pays 4.655%. Not bad for a quality name.
Verizon's stock has fallen from the mid 40's to $36.95 over the past three weeks. Their dividend currently pays 4.655%. Not bad for a quality name.
Dismal January for Retail, But Stocks Rally...
Retailers posted their worst monthly sales in five years; even gift-card redemptions were soft. Wal-Mart (WMT) lead the way with 0.5% comps growth vs. 2% estimates; more than half of all retailers missed expectations.
Despite the bad news, Retail stocks had a great day. That is a key group to keep an eye on over the next few months. Retailers will typically be one of the first groups to show a recovery in the economy as it pertains to the average citizens.
Despite the bad news, Retail stocks had a great day. That is a key group to keep an eye on over the next few months. Retailers will typically be one of the first groups to show a recovery in the economy as it pertains to the average citizens.
Stimulus Bill Wins Vote...
Congress approved a $168B economic stimulus bill, meaning more than 130 million households will begin receiving $600-1,200 rebate checks. The measure passed after Democrats dropped demands for billions in extra spending and tax breaks.
President Bush called the legislation "an example of bipartisan cooperation at a time when the American people most expect it."
President Bush called the legislation "an example of bipartisan cooperation at a time when the American people most expect it."
Amazon Ups Stock Repurchase Plan..
Amazon.com, Inc. (AMZN) announced today that its Board of Directors has authorized the Company to repurchase up to $1 billion of the Company's common stock within the next 24 months.
The program allows the Company to opportunistically repurchase its shares when it believes that doing so would enhance long-term shareholder value. This stock repurchase authorization replaces an April 2007 $500 million stock repurchase authorization.
The stock is climbing 2.50 pts to $73.58 in the premarket.
The program allows the Company to opportunistically repurchase its shares when it believes that doing so would enhance long-term shareholder value. This stock repurchase authorization replaces an April 2007 $500 million stock repurchase authorization.
The stock is climbing 2.50 pts to $73.58 in the premarket.
Earnings Due Today....
• American Electric Power (AEP). Expected to report Q1 earnings of $0.73 cents a share.
• Apartment Investment and Management (AIV). Expected to post Q4 loss of $0.27 per share.
• Beckman Coulter (BEC). Expected to report Q4 earnings of $1.03 a share.
• Weyerhaeuser Co. (WY). Expected to report Q4 earnings of $0.35 a share.
• Apartment Investment and Management (AIV). Expected to post Q4 loss of $0.27 per share.
• Beckman Coulter (BEC). Expected to report Q4 earnings of $1.03 a share.
• Weyerhaeuser Co. (WY). Expected to report Q4 earnings of $0.35 a share.
Hitachi to Introduce Super Thin TV's in 2010...
Hitachi Ltd. (HIT). The Japanese electronics giant said today it will introduce a 10-millimeter (mm) thin plasma display panel TV in 2010 in a bid to boost the competitiveness of its flat TV business operations. The thickness is less than a third of the 35mm-thin PDP TVs the manufacturer plans to launch next year. Capitalizing on these new "super-thin" models, Hitachi is targeting to raise its share of the world's PDP TV market to 10% in the fiscal year to March 2011, from an estimated 6 percent in the year to March 2009, it said.
Hitachi will also introduce a 15mm-thin liquid crystal display (LCD) panel TV by 2012, slimmer than the 19-mm model it plans to launch next year. It will also launch a 3mm-thin organic light-emitting diode (OLED) display TV by 2012, the company said.
Hitachi will also introduce a 15mm-thin liquid crystal display (LCD) panel TV by 2012, slimmer than the 19-mm model it plans to launch next year. It will also launch a 3mm-thin organic light-emitting diode (OLED) display TV by 2012, the company said.
Options Going Crazy in CTSH...
Cognizant Technology Solutions Corp. (CTSH). The Teaneck, N.J.-based IT services provider late Thursday said fourth-quarter net income rose to $96.3 million, or 32 cents a share, from $69.5 million, or 23 cents a share, in the same period last year. On an adjusted basis, earnings were 36 cents a share, beating the mean estimate of analysts polled by Thomson Financial for 31 cents a share.
Fourth-quarter revenue increased 41% to $600 million from $424.4 million in last year's comparable period. The company provided guidance for first-quarter adjusted earnings of 36 cents a share and sales of at least $640 million.
The stock is up 3.50 to $31 premarket.
Fourth-quarter revenue increased 41% to $600 million from $424.4 million in last year's comparable period. The company provided guidance for first-quarter adjusted earnings of 36 cents a share and sales of at least $640 million.
The stock is up 3.50 to $31 premarket.
Guitar Hero Propels Earnings for Activision..
After yesterday's closing bell, Activision Inc. (ATVI). late Thursday reported third-quarter adjusted earnings rose to $284.9 million, or 90 cents a share, from $147.5 million, or 48 cents a share, in the same period last year. Revenue for the period ended Dec. 31 jumped 80% to $1.48 billion from $824.3 million in last year's comparable period.
For fiscal 2008, the Santa Monica, Calif.-based interactive entertainment software products company expects adjusted earnings of $1.07 a share on sales of $2.65 billion. For the fourth quarter, the company expects adjusted earnings of 4 cents a share on sales of $350 million.
Activision is the maker of the popular Guitar Hero video game. Obviously a big hit for Xmas.
For fiscal 2008, the Santa Monica, Calif.-based interactive entertainment software products company expects adjusted earnings of $1.07 a share on sales of $2.65 billion. For the fourth quarter, the company expects adjusted earnings of 4 cents a share on sales of $350 million.
Activision is the maker of the popular Guitar Hero video game. Obviously a big hit for Xmas.
Thursday, February 7, 2008
Daily Summary....
U.S. Markets
Dow +46.90 (+0.38%)
Nasdaq +14.28 (+0.63%)
S&P 500 +10.46 (+0.79%)
News That Moved the Market:
Stocks Finish Higher Despite Lousy Retail Sales. Markets were able to end the day with gains for the first time this week, but volatility was still prevalent in today's trading. Selling pressure was strong early in the session when chain stores released January's sales results. With a few exceptions, the results were grim. In all, sales grew 0.5% from last year, with notable weakness in luxury and department store sales. Wal-Mart (WMT, +2.1%) reported a 0.5% increase in sales, well below the 2.0% jump analysts had anticipated. Target (TGT, +6.1%) saw a 1.1% decrease in same-store sales, while Nordstrom (JWN, +3.7%) said sales fell 6.6% at stores open more than a year. Despite the negativity, traders bought retailers perhaps sensing a bottom or figuring that earnings will not be affected by the poor start to the year.
Senate Passes Stimulus Plan. The U.S. Senate passed a $151 billion economic stimulus plan similar to the one the House passed last week. The bill will likely now get to the President very quickly to sign.
Pending Home Sales Decline. Homebuilders finished higher, despite lower than expected pending home sales data. The National Association of Realtors announced December pending home sales fell 1.5%, more than the 1.0% decrease expected, but an improvement over November's figures.
Pepsi Jumps On 2008 Outlook. Pepsi (PEP, +5.5%) traded higher after the company put out a solid forecast for the year in the face of higher commodity prices and economic weakness. The company reported a 31% decrease in profits due to a large tax benefit from last year. Pepsi sees earnings increasing about 10% in 2008.
Tomorrow Notable Earnings:
Weyerhaeuser(WY) Before Open
Economic Events:
10:00 AM: Wholesale Inventories
Dow +46.90 (+0.38%)
Nasdaq +14.28 (+0.63%)
S&P 500 +10.46 (+0.79%)
News That Moved the Market:
Stocks Finish Higher Despite Lousy Retail Sales. Markets were able to end the day with gains for the first time this week, but volatility was still prevalent in today's trading. Selling pressure was strong early in the session when chain stores released January's sales results. With a few exceptions, the results were grim. In all, sales grew 0.5% from last year, with notable weakness in luxury and department store sales. Wal-Mart (WMT, +2.1%) reported a 0.5% increase in sales, well below the 2.0% jump analysts had anticipated. Target (TGT, +6.1%) saw a 1.1% decrease in same-store sales, while Nordstrom (JWN, +3.7%) said sales fell 6.6% at stores open more than a year. Despite the negativity, traders bought retailers perhaps sensing a bottom or figuring that earnings will not be affected by the poor start to the year.
Senate Passes Stimulus Plan. The U.S. Senate passed a $151 billion economic stimulus plan similar to the one the House passed last week. The bill will likely now get to the President very quickly to sign.
Pending Home Sales Decline. Homebuilders finished higher, despite lower than expected pending home sales data. The National Association of Realtors announced December pending home sales fell 1.5%, more than the 1.0% decrease expected, but an improvement over November's figures.
Pepsi Jumps On 2008 Outlook. Pepsi (PEP, +5.5%) traded higher after the company put out a solid forecast for the year in the face of higher commodity prices and economic weakness. The company reported a 31% decrease in profits due to a large tax benefit from last year. Pepsi sees earnings increasing about 10% in 2008.
Tomorrow Notable Earnings:
Weyerhaeuser(WY) Before Open
Economic Events:
10:00 AM: Wholesale Inventories
Circuit City to Open Smaller Stores...
Circuit City's turnaround plans. Circuit City (CC) will open 50-60 smaller stores in 2008 called "City" with high-level staff that will mimic Apple Stores; says it doesn't think selling itself is in its best interest; and more than doubled its credit line to $1.3B.
Apple Cuts Component Orders....
A researcher says Apple (AAPL) has reduced supplier orders for its iPhones, iPods and MacBooks for the second time in two months, amid weak Q4 sell-through.
Suppliers Broadcom (BRCM) and Marvell (MRVL) could feel the effects.
Suppliers Broadcom (BRCM) and Marvell (MRVL) could feel the effects.
Midday Update....
Dow + 12
S&P +5
Nasdaq +5
After selling off on the open the market has strengthened. There is a noticeable change in Market Breadth this Morning.
On the NYSE:
Advancing Issues 1733
Declining Issues 1283
Advancing Volume 444 Million shares
Declining Volume 305 Million shares
Today is setting up an important inflection point. We are severely oversold and need to hold up here. How we close is critical.
S&P +5
Nasdaq +5
After selling off on the open the market has strengthened. There is a noticeable change in Market Breadth this Morning.
On the NYSE:
Advancing Issues 1733
Declining Issues 1283
Advancing Volume 444 Million shares
Declining Volume 305 Million shares
Today is setting up an important inflection point. We are severely oversold and need to hold up here. How we close is critical.
Yahoo Steps Up Talks With Google...
Sources say Yahoo's (YHOO) talks with Google (GOOG) have intensified as the company looks at alternatives to Microsoft's (MSFT) $44.6B offer.
Breakdown Alert: Chipotle (CMG)
Chipotle (CMG) down 4.87 to $103.73
Chipotle has clearly broken down thru support it had at $110. Pull up a daily chart and you'll see what I mean. Next support levels: $98 and then $88.
I just ate there yesterday...same long line as always...so I would say this is purely market-related tied to recession fears..
Chipotle has clearly broken down thru support it had at $110. Pull up a daily chart and you'll see what I mean. Next support levels: $98 and then $88.
I just ate there yesterday...same long line as always...so I would say this is purely market-related tied to recession fears..
Notable Mover: Emcore Corp.
Emcore (EMKR) up 1.47 to $13.50
Emcore is an interesting looking stock. The stock has been steadily climbing since June of last year. Though volatility has certainly picked up, this looks like it may be a solid new name to keep an eye on....which we will do.
Emcore Corporation's (EMKR) principal activity is a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets.
Emcore is an interesting looking stock. The stock has been steadily climbing since June of last year. Though volatility has certainly picked up, this looks like it may be a solid new name to keep an eye on....which we will do.
Emcore Corporation's (EMKR) principal activity is a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets.
Farm / Fertilizer Stocks Getting Crushed this Morning...
Monsanto (MON) down 6.34 to $100.00
Potash (POT) down 6.51 to $132.40
Terra Nitrogen (TNH) down 9.82 to $126.03
Terra Industries (TRA) down 3.33 to $39.35
Mosaic (MOS) down 3.87 to $89.65
Each of these stocks are guiding higher for earnings this year...very volatile...but could be nice trade once the market bottoms.
Potash (POT) down 6.51 to $132.40
Terra Nitrogen (TNH) down 9.82 to $126.03
Terra Industries (TRA) down 3.33 to $39.35
Mosaic (MOS) down 3.87 to $89.65
Each of these stocks are guiding higher for earnings this year...very volatile...but could be nice trade once the market bottoms.
JC Penney Stock Jumps on Q4 Outlook...
J.C. Penney Co.'s (JCP) January comparable-store sales, or sales of stores open at least a year, fell 1.9%, compared with a year earlier increase of 3.6%. The Plano, Texas, retailer said January total department store sales rose 1.7%, while direct sales increased 3.6%.
J.C. Penney projects February comparable-store sales to be flat, with comparable-department store sales decreasing in the low single digits on a percentage basis. J.C. Penney will include Internet sales in its comparable-store sales results starting in the 2008 fiscal year ending Jan. 31. The company now projects fiscal fourth-quarter earnings at the high end of its original guidance range of $1.65 to $1.80.
The stock is up 3.28 to $47.00 this morning. It is down from a high of $87 hit last February.
J.C. Penney projects February comparable-store sales to be flat, with comparable-department store sales decreasing in the low single digits on a percentage basis. J.C. Penney will include Internet sales in its comparable-store sales results starting in the 2008 fiscal year ending Jan. 31. The company now projects fiscal fourth-quarter earnings at the high end of its original guidance range of $1.65 to $1.80.
The stock is up 3.28 to $47.00 this morning. It is down from a high of $87 hit last February.
Energy Conversion Devices Sees Profit by Q4...
Energy Conversion Devices Inc.'s (ENER) second-quarter loss widened to $5.43 million, or 14 cents a share, from $2.91 million, or 7 cents, a year earlier. Results for the latest period included restructuring charges and preproduction costs totaling 12 cents a share.
The Rochester Hills, Mich., manufacturer of solar thin-film laminate products said revenue for the quarter ended Dec. 31 rose to $56.4 million from $22.9 million a year earlier. Analysts polled by Thomson Financial, on average, projected a loss of 13 cents a share on revenue of $53 million.
The company confirmed its expectation that it will reach sustainable profitability in the fiscal fourth quarter.
The stock is up 1.20 to $25.11 this morning.
The Rochester Hills, Mich., manufacturer of solar thin-film laminate products said revenue for the quarter ended Dec. 31 rose to $56.4 million from $22.9 million a year earlier. Analysts polled by Thomson Financial, on average, projected a loss of 13 cents a share on revenue of $53 million.
The company confirmed its expectation that it will reach sustainable profitability in the fiscal fourth quarter.
The stock is up 1.20 to $25.11 this morning.
Thornburg continues breakout...
TMA up .60 to $13.35
Thornburg Mortgage (TMA) continues to move higher this morning. This stock held up very well in the $9-$10 area, now it is receiving upgrades from several analysts. The stock is clearly breaking out off a four month base.
Thornburg Mortgage (TMA) continues to move higher this morning. This stock held up very well in the $9-$10 area, now it is receiving upgrades from several analysts. The stock is clearly breaking out off a four month base.
Ex-CEO Says He May Buy Children's Place...
Children's Place Retail Stores Inc (PLCE) former Chief Executive Ezra Dabah said on Thursday he was confident he could make a bid to buy the company for $24 a share, sending its shares up 18 percent in pre-market trading.
The $24 price would represent a 35 percent premium to the closing price of Children's Place shares on Wednesday. Dabah said he had received interest from private equity firm Golden Gate Capital to be a participant in the deal.
Dabah, who said in a filing to the Securities and Exchange Commission that he owns 17.2 percent of the children's clothing retailer's shares, resigned as CEO last September after an internal probe found he did not comply with the company's securities-trading policies.
Something smells with this potential deal.....This stock has been in a free fall lately....this guy owns alot of stock....could he be just looking to prop the stock up so he can get out??? I'd short on the news.
The $24 price would represent a 35 percent premium to the closing price of Children's Place shares on Wednesday. Dabah said he had received interest from private equity firm Golden Gate Capital to be a participant in the deal.
Dabah, who said in a filing to the Securities and Exchange Commission that he owns 17.2 percent of the children's clothing retailer's shares, resigned as CEO last September after an internal probe found he did not comply with the company's securities-trading policies.
Something smells with this potential deal.....This stock has been in a free fall lately....this guy owns alot of stock....could he be just looking to prop the stock up so he can get out??? I'd short on the news.
Akamai Beats Estimates...
Akamai Technologies Inc. (AKAM). The Cambridge, Mass.-based service provider for accelerating content and applications online late Wednesday reported fourth-quarter net income of $35.9 million, or 20 cents a share, compared with $20.6 million, or 12 cents a share, in the same period a year earlier. Normalized net income for the fourth quarter was $75.9 million, or 41 cents a share. Revenue for the period ended Dec. 31 jumped 46% to $183.2 million from last year's $125.7 million.
AKAM is up 1.00 to $30.75 premarket.
AKAM is up 1.00 to $30.75 premarket.
Earnings Due Today....
• Activision Inc. (ATVI). Expected to post Q3 earnings of $0.80 a share, according to analysts polled by Thomson Financial.
• Aon Corp. (AOC). Expected to report Q4 earnings of $0.66 a share.
• Apache Corp. (APA). Expected to report Q4 earnings of $2.52 a share.
• AutoNation Inc. (AN). Expected to report Q4 earnings of $0.32 a share.
• Embarq Corp. (EQ). Expected to report Q4 earnings of $1.11 a share.
• Expedia Inc. (EXPE). Expected to post Q4 earnings of $0.31 a share.
• Genworth Financial Inc. (GNW). Expected to report Q4 earnings of $0.69 a share
• International Paper Co. (IP). Expected to report Q4 earnings of $0.65 a share.
• Level 3 Communications (LVLT). Expected to report Q4 loss of $0.11 a share.
• McAfee Inc. (MFE). Expected to report Q4 earnings of $0.45 a share.
• Moody's Corp. (MCO). Expected to post Q4 earnings of $0.47 a share.
• Pitney Bowes Inc. (PBI). Expected to post Q4 earnings of $0.69 a share.
• Timberland Co. (TBL). Expected to post Q4 earnings of $0.51 a share.
• Watson Wyatt Worldwide (WW). Expected to post Q2 earnings of $0.70 a share.
• Aon Corp. (AOC). Expected to report Q4 earnings of $0.66 a share.
• Apache Corp. (APA). Expected to report Q4 earnings of $2.52 a share.
• AutoNation Inc. (AN). Expected to report Q4 earnings of $0.32 a share.
• Embarq Corp. (EQ). Expected to report Q4 earnings of $1.11 a share.
• Expedia Inc. (EXPE). Expected to post Q4 earnings of $0.31 a share.
• Genworth Financial Inc. (GNW). Expected to report Q4 earnings of $0.69 a share
• International Paper Co. (IP). Expected to report Q4 earnings of $0.65 a share.
• Level 3 Communications (LVLT). Expected to report Q4 loss of $0.11 a share.
• McAfee Inc. (MFE). Expected to report Q4 earnings of $0.45 a share.
• Moody's Corp. (MCO). Expected to post Q4 earnings of $0.47 a share.
• Pitney Bowes Inc. (PBI). Expected to post Q4 earnings of $0.69 a share.
• Timberland Co. (TBL). Expected to post Q4 earnings of $0.51 a share.
• Watson Wyatt Worldwide (WW). Expected to post Q2 earnings of $0.70 a share.
Citigroup says Coal Prices to Keep Rising...
Coal will continue to rise in price as bad weather and other factors cut production, a Citigroup analyst says. The bank raised its forecast for thermal coal, saying prices will double this year. While demand for coal keeps rising as the world's electricity use expands, blizzards in China, power outages in South Africa, and floods in Queensland have cut world output.
Ways to play Coal:
Arch Coal (ACI)
Consolidated Energy (CNX)
Burlington Northern (BNI) - transports coal
Ways to play Coal:
Arch Coal (ACI)
Consolidated Energy (CNX)
Burlington Northern (BNI) - transports coal
Bank of America informs cardholders of mystery rate hike...
Bank of America has taken an aggressive stance toward its credit-card holders, raising interest rates based on criteria it won't disclose. Many credit-card lenders have raised rates on cardholders who are current with balances but see a deterioration in their overall credit scores. Bank of America last month notified some of its 40 million cardholders that it would more than double their rates.
Buffett blames investment banks for subprime mess...
Warren Buffett says the giant investment banks are responsible for the subprime mortgage meltdown and ensuing losses. "It's sort of a little poetic justice, in that the people that brewed this toxic Kool-Aid found themselves drinking a lot of it in the end," the billionaire investor said, adding that money is still available and reduced interest rates make it "quite cheap."
US Senate Vote Leaves Stimulus Plan Fate Unclear...
The fate of an economic stimulus plan in the Senate was unclear last night after Democrats fell one senator short of forcing Republicans to allow a vote on a $205 billion version of the plan.
I'm sure we'll hear more on this today...
I'm sure we'll hear more on this today...
Delta / Northwest Talks Intensify...
As we said yesterday, merger discussions between Delta Air Lines\ and Northwest Airlines are picking up steam and a deal could come in next two weeks. And talks between UAL and Continental have grown more serious, The Wall Street Journal says.
Cisco Warns on 3rd Quarter...
Cisco Shares May Fall On Weak 3Q Growth Estimate
Cisco Systems reports net income of $2.1 billion, or 33¢ a share. On a non-GAAP basis, Cisco earns 38¢ a share. Revenue grows nearly 17% to $9.8 billion. Results are in line with Wall Street expectations, but CEO says it expects weaker revenue growth going forward.
This will put downward pressure on the Market this morning....
Cisco Systems reports net income of $2.1 billion, or 33¢ a share. On a non-GAAP basis, Cisco earns 38¢ a share. Revenue grows nearly 17% to $9.8 billion. Results are in line with Wall Street expectations, but CEO says it expects weaker revenue growth going forward.
This will put downward pressure on the Market this morning....
Wednesday, February 6, 2008
Daily Summary....
U.S. Markets:
Dow -65.03 (-0.53%)
Nasdaq -30.82 (-1.33%)
S&P 500 -10.19 (-0.76%)
News That Moved the Market:
Markets Finish Down, Continue Drop After Close. Markets succumbed to selling pressures after a positive morning. The biggest news however was Cisco's (CSCO) outlook, which failed to impress Wall Street. The company said it saw weakness in January that may continue over the "next few months." CEO Officer John Chambers forecasted sales growth of 10% in the next fiscal quarter, well below average analyst projection of 15%. Though the company's results, which were released Wednesday after the bell, were basically in-line, investors were more focused on the company's outlook. Shares of Cisco were hammered along with major indices after hours. Unless a timely positive catalyst occurs between now and the opening bell tomorrow, expect to open tomorrow with significant losses.
Macy's Drops On Outlook. Macy's (M) cut its forecast for the current quarter after a weak January and will let go of 2,300 employees. The company's same-store sales for January fell 7.9%.
Rio Tinto Rejects BHP's Bid. Rio Tinto (RTP) declined BHP Billiton's (BHP) $147 billion all-stock bid. Rio said the bid undervalues the company and did not open the door for further negotiations.
MBIA To Raise $750 Million By Issuing Shares. MBIA (MBI) jumped in after-hours trading after it announced it would raise $750 million in an effort to sure up funds to keep its AAA rating. Fitch Ratings however said that the additional funds still may not be enough to save the bond insurer.
Tomorrow Notable Earnings:
Pepsi (PEP) Before Open
Economic Events:
Chain Store Sales
7:00 AM: Bank of England Announcement
7:45 AM: European Central Bank Announcement
8:30 AM: Jobless Claims
10:00 AM: Pending Home Sales
Dow -65.03 (-0.53%)
Nasdaq -30.82 (-1.33%)
S&P 500 -10.19 (-0.76%)
News That Moved the Market:
Markets Finish Down, Continue Drop After Close. Markets succumbed to selling pressures after a positive morning. The biggest news however was Cisco's (CSCO) outlook, which failed to impress Wall Street. The company said it saw weakness in January that may continue over the "next few months." CEO Officer John Chambers forecasted sales growth of 10% in the next fiscal quarter, well below average analyst projection of 15%. Though the company's results, which were released Wednesday after the bell, were basically in-line, investors were more focused on the company's outlook. Shares of Cisco were hammered along with major indices after hours. Unless a timely positive catalyst occurs between now and the opening bell tomorrow, expect to open tomorrow with significant losses.
Macy's Drops On Outlook. Macy's (M) cut its forecast for the current quarter after a weak January and will let go of 2,300 employees. The company's same-store sales for January fell 7.9%.
Rio Tinto Rejects BHP's Bid. Rio Tinto (RTP) declined BHP Billiton's (BHP) $147 billion all-stock bid. Rio said the bid undervalues the company and did not open the door for further negotiations.
MBIA To Raise $750 Million By Issuing Shares. MBIA (MBI) jumped in after-hours trading after it announced it would raise $750 million in an effort to sure up funds to keep its AAA rating. Fitch Ratings however said that the additional funds still may not be enough to save the bond insurer.
Tomorrow Notable Earnings:
Pepsi (PEP) Before Open
Economic Events:
Chain Store Sales
7:00 AM: Bank of England Announcement
7:45 AM: European Central Bank Announcement
8:30 AM: Jobless Claims
10:00 AM: Pending Home Sales
Bulletin: Update on Northwest/Delta Deal...
The Wall Street Journal is just reporting that a deal could be complete as soon as next week.
Look for more consolidation talk and speculation in airlines....Jetblue, Continental, US Air.
Look for more consolidation talk and speculation in airlines....Jetblue, Continental, US Air.
Rally Fizzles Out as Stocks Roll Over....
After being up all day, the market has just turned negative again.
Not necessarily a huge wave of selling, it looks more like buyers are staying on the sidelines, allowing bears to regain control.
Cisco has earnings after the bell this evening. A disappointment would virtually assure that we are headed back down for a retest of the bottom made on January 22.
Not necessarily a huge wave of selling, it looks more like buyers are staying on the sidelines, allowing bears to regain control.
Cisco has earnings after the bell this evening. A disappointment would virtually assure that we are headed back down for a retest of the bottom made on January 22.
Jetblue Gives Reason for Move...
Jetblue Airways reports its traffic in January increased 7.2% (JBLU) $6.73 +0.41 :
Co announces its traffic in January increased 7.2% from January 2007, on a capacity increase of 8.0%. Load factor for January 2008 was 75.6%, a decrease of 0.5 points from January 2007. JetBlue's preliminary completion factor was 98.7% and its on-time performance was 76.7%. JetBlue's preliminary passenger revenue per available seat mile for the month of January increased ten percent year over year.
Co announces its traffic in January increased 7.2% from January 2007, on a capacity increase of 8.0%. Load factor for January 2008 was 75.6%, a decrease of 0.5 points from January 2007. JetBlue's preliminary completion factor was 98.7% and its on-time performance was 76.7%. JetBlue's preliminary passenger revenue per available seat mile for the month of January increased ten percent year over year.
Technical Alert: Zimmer Holdings.....
ZMH up .78 to $77.70
Check out the Daily chart on Zimmer Holdings (ZMH). The stock gapped up last week after they guided higher on 2008 earnings. It has formed a classic Bullish high-tight flag pattern. A break above $79.50 would be a significant move for the stock.
Check out the Daily chart on Zimmer Holdings (ZMH). The stock gapped up last week after they guided higher on 2008 earnings. It has formed a classic Bullish high-tight flag pattern. A break above $79.50 would be a significant move for the stock.
Jetblue Climbing Again...
JBLU up .40 to $6.72
After running up last week from $5 to $7.00, the stock fell back a bit. Today it is resuming it's run. A break thru $7 would be very positive with $9-$10 as the next level of resitance.
After running up last week from $5 to $7.00, the stock fell back a bit. Today it is resuming it's run. A break thru $7 would be very positive with $9-$10 as the next level of resitance.
Technical Breakout: Thornburg Mortgage...
TMA up 1.04 to $12.95
Thornburg Mortgage (TMA) is breaking out from a four month base today on higher volume. The stock was trying to break higher yesterday, but the broad market held it back. This morning it broke easily through resistance at $12. Next level of resitance is $13.50. After that, nothing until the low 20's.
Thornburg Mortgage (TMA) is breaking out from a four month base today on higher volume. The stock was trying to break higher yesterday, but the broad market held it back. This morning it broke easily through resistance at $12. Next level of resitance is $13.50. After that, nothing until the low 20's.
Mastercard Down on Rumors....
MA down 3.50 to $203.30
MasterCard (MA) is down this morning on rumors the ECB and EU will implement major cross-border charges which would crush profit margins.
The stock hit $198 earlier.
MasterCard (MA) is down this morning on rumors the ECB and EU will implement major cross-border charges which would crush profit margins.
The stock hit $198 earlier.
VMware Clawing its Way Back Up...
VMW up 2.23 to $61.55
The stock is climbing off a bottom set on January 29, when the stock gapped down from $82 to $55 after posting a slight disappointment in earnings.
The stock is climbing off a bottom set on January 29, when the stock gapped down from $82 to $55 after posting a slight disappointment in earnings.
What's Going on With Northwest and Delta???
While there has been no confirmation of a potential merger between Delta (DAL) and Northwest Airlines (NWA), the two put on a show which suggests they are exploring a closer relationship.
After both stocks gapped higher on January 10, both are trying to break off their latest base today.
DAL up 1.02 to $18.05
NWA up .61 to $18.39
After both stocks gapped higher on January 10, both are trying to break off their latest base today.
DAL up 1.02 to $18.05
NWA up .61 to $18.39
Sony Leapfrogs LCD TV Market...
Sony (SNE) jumped from fourth to first place in U.S. LCD TV sales in Q4, largely due to its pushing big screens, and high-value, high-margin products.
Sony's stock hit a 52-week low this morning....Fundamentally it looks strong.
Sony's stock hit a 52-week low this morning....Fundamentally it looks strong.
Biogen's Net Income Nearly Doubles....
BIIB up 1.37 to $61.89
Biogen Idec Inc.'s (BIIB) fourth-quarter net income nearly doubled as sales of multiple sclerosis drugs Avonex and Tysabri continued to grow sharply. The Massachusetts biotech company reported net income of $201.2 million, or 67 cents a share, from $108.6 million, or 32 cents a share, a year earlier. Excluding items, including acquisition-related costs and a prior-year license settlement, earnings rose to 89 cents a share from 53 cents.
Revenue jumped 26% to $893.3 million. The mean per-share earnings estimate of analysts polled by Thomson Financial was 80 cents on revenue of $836 million.
Sales of Biogen's bestseller, multiple sclerosis drug Avonex, grew 15% to $502.5 million. The company's portion of sales from its other multiple sclerosis drug, Tysabri, rose fivefold to $89.6 million out of $129 million in global sales. The balance goes to Biogen's partner on the drug, Elan Corp. (ELN). Arthritis drug Rituxan's sales grew 17% to $254 million. Biogen co-promotes with Genentech Inc. (DNA), and gets a share of pretax profits.
Looking forward, Biogen backed its previous estimate of per-share earnings, excluding items of $3.20 to $3.35 on revenue up 15% to 20%. Analysts expect 2008 per-share earnings of $3.30 on revenue up 15% to $3.59 billion. The company has said it expects to double its profit by 2010.
Biogen Idec Inc.'s (BIIB) fourth-quarter net income nearly doubled as sales of multiple sclerosis drugs Avonex and Tysabri continued to grow sharply. The Massachusetts biotech company reported net income of $201.2 million, or 67 cents a share, from $108.6 million, or 32 cents a share, a year earlier. Excluding items, including acquisition-related costs and a prior-year license settlement, earnings rose to 89 cents a share from 53 cents.
Revenue jumped 26% to $893.3 million. The mean per-share earnings estimate of analysts polled by Thomson Financial was 80 cents on revenue of $836 million.
Sales of Biogen's bestseller, multiple sclerosis drug Avonex, grew 15% to $502.5 million. The company's portion of sales from its other multiple sclerosis drug, Tysabri, rose fivefold to $89.6 million out of $129 million in global sales. The balance goes to Biogen's partner on the drug, Elan Corp. (ELN). Arthritis drug Rituxan's sales grew 17% to $254 million. Biogen co-promotes with Genentech Inc. (DNA), and gets a share of pretax profits.
Looking forward, Biogen backed its previous estimate of per-share earnings, excluding items of $3.20 to $3.35 on revenue up 15% to 20%. Analysts expect 2008 per-share earnings of $3.30 on revenue up 15% to $3.59 billion. The company has said it expects to double its profit by 2010.
JDSU Blows Away Estimates....
JDS Uniphase Corp.'s (JDSU) fiscal second-quarter fell to $21.2 million, or 9 cents a share, from $23.2 million, or 10 cents a share, a year earlier. Excluding items, per-share earnings were 22 cents. The technology networking equipment maker's revenue rose to $399.2 million from $366.3 million a year earlier.
Analysts had predicted earnings of 12 cents a share and revenue of $386.4 million. Analyst estimates typically exclude items.
The stock is up 3.00 to $13.15 this morning....
Analysts had predicted earnings of 12 cents a share and revenue of $386.4 million. Analyst estimates typically exclude items.
The stock is up 3.00 to $13.15 this morning....
Consumer Courage Collapses....
U.S. consumer confidence fell to a 14-year low according to the ABC News/Washington Post Consumer Comfort Index. 59% of Americans think the economy is already in a recession. The index fell 13 points over the last month, similar to its reaction prior to the 1990-91 and 2001 recessions.
Housing Woes Take Toll on Toll Bros....
Toll Bros. (TOL) warned Q1 revenue fell 22% to $843M. TOL expects Q1 writedowns of $150-300M. Backlog fell 42% to $2.4B. Gross contracts signed fell 46%.
CEO Robert Toll said he has yet to see the proverbial light at the end of the tunnel.
CEO Robert Toll said he has yet to see the proverbial light at the end of the tunnel.
Google Bringing Free Music to China...
Google (GOOG), together with a Chinese parter, is about to reveal a market-changing service that will offer free, licensed music downloads in China. The move is a direct challenge to Baidu's (BIDU) music search domination, which has helped it keep Google at bay.
Analysts say 90% of China's 162 million internet surfers use pirated music from their computers at least once a day.
Now we know why Google ticked higher all day yesterday.
Analysts say 90% of China's 162 million internet surfers use pirated music from their computers at least once a day.
Now we know why Google ticked higher all day yesterday.
BHP Billiton Raises Bid for Rio Tinto...
Mining giant BHP Billiton (BHP) late Tuesday upped its bid for rival Rio Tinto (RTP) to $147 billion. The move came a few days after Aluminum Corp. of China and Alcoa Inc. (AA) bought a big block of Rio shares.
Disney Beats Estimates....
Walt Disney Co. (DIS). The Burbank, CA-based entertainment company reported Tuesday fiscal first-quarter net income of $1.25 billion, or 66 cents a share, down from $1.7 billion, or 83 cents a share in the year-earlier period.
Excluding non-recurring items, adjusted earnings were 63 cents a share, compared with the mean estimate of analysts surveyed by Thomson Financial of 52 cents a share. Revenue for the quarter ending Dec. 31 rose 9% to $10.45 billion from last year's $9.58 billion.
Disney is up 1.80 to $31.80 premarket...helping give the Dow a lift this morning.
Excluding non-recurring items, adjusted earnings were 63 cents a share, compared with the mean estimate of analysts surveyed by Thomson Financial of 52 cents a share. Revenue for the quarter ending Dec. 31 rose 9% to $10.45 billion from last year's $9.58 billion.
Disney is up 1.80 to $31.80 premarket...helping give the Dow a lift this morning.
Earnings Due Today....
COMPANIES REPORTING EARNINGS
• Alcon Inc. (ACL). Expected to report Q4 earnings of $1.28 a share, according to analysts polled by Thomson Financial.
• Biogen Idec Inc. (BIIB). Expected to report Q4 earnings of $0.80 a share.
• Cisco Systems Inc. (CSCO). Expected to post Q2 earnings of $0.38 a share.
• Electronic Data Systems (EDS). Expected to post Q4 earnings of $0.57 a share.
• Fiserv Inc. (FISV). Expected to post Q4 earnings of $0.71 a share.
• IAC Interactivecorp (IACI). Expected to post Q4 earnings of $0.55 a share.
• Kimco Realty Corp. (KIM). Expected to post Q4 earnings of $0.26 a share.
• McClatchy (MNI). Expected to post Q4 earnings of $0.48 a share.
• MetLife Inc. (MET). Expected to post Q4 earnings of $1.43 a share.
• Polo Ralph Lauren Corp. (RL). Expected to report Q3 earnings of $0.77 a share.
• Prudential Financial Inc. (PRU). Expected to report Q4 earnings of $1.88 a share.
• Sara Lee Corp. (SLE). Expected to report Q2 earnings of $0.24 a share.
Cisco's the main one today....due after the close this evening.
• Alcon Inc. (ACL). Expected to report Q4 earnings of $1.28 a share, according to analysts polled by Thomson Financial.
• Biogen Idec Inc. (BIIB). Expected to report Q4 earnings of $0.80 a share.
• Cisco Systems Inc. (CSCO). Expected to post Q2 earnings of $0.38 a share.
• Electronic Data Systems (EDS). Expected to post Q4 earnings of $0.57 a share.
• Fiserv Inc. (FISV). Expected to post Q4 earnings of $0.71 a share.
• IAC Interactivecorp (IACI). Expected to post Q4 earnings of $0.55 a share.
• Kimco Realty Corp. (KIM). Expected to post Q4 earnings of $0.26 a share.
• McClatchy (MNI). Expected to post Q4 earnings of $0.48 a share.
• MetLife Inc. (MET). Expected to post Q4 earnings of $1.43 a share.
• Polo Ralph Lauren Corp. (RL). Expected to report Q3 earnings of $0.77 a share.
• Prudential Financial Inc. (PRU). Expected to report Q4 earnings of $1.88 a share.
• Sara Lee Corp. (SLE). Expected to report Q2 earnings of $0.24 a share.
Cisco's the main one today....due after the close this evening.
Wellcare Gets Hawaii Contract...
Wellcare Health Plans Inc. (WCG) said its 'Ohana Health Plans Inc. unit was awarded a contract to participate in the Hawaii QUEST Expanded Access program, according to a filing with the Securities and Exchange Commission. The program provides Medicaid managed care services to Hawaii's Medicaid aged, blind and disabled members who are currently receiving services through the fee-for-service system.
Under the contract, 'Ohana will arrange for the provision of members' primary, acute and long term care services. The contract is effective Feb. 1 until June 30, 2011. 'Ohana is expected to begin providing services to members on Nov. 1. Shares of the Tampa-based managed-care services provider closed Tuesday at $47.71.
Under the contract, 'Ohana will arrange for the provision of members' primary, acute and long term care services. The contract is effective Feb. 1 until June 30, 2011. 'Ohana is expected to begin providing services to members on Nov. 1. Shares of the Tampa-based managed-care services provider closed Tuesday at $47.71.
S&P Warns of Bank Downgrades.....
S&P warns of bank downgrades if bond insurers slip: Commercial and investment banks could see their credit ratings cut if the bond insurers backing some of the banks' assets are downgraded, Standards & Poor's said. One analyst estimated that U.S. financial institutions could face as much as $70 billion in new writedowns if bond insurers lose their "AAA" ratings.
Tuesday, February 5, 2008
Daily Summary....
U.S. Markets
Dow -370.03 (-2.93%)
Nasdaq -73.28 (-3.08%)
S&P 500 -44.18 (-3.20%)
News That Moved the Market
Market Plunges On ISM Service Data. Stocks fell the most in nearly a year after a disappointing ISM service figure. The Institute for Supply Management announced its non-manufacturing index dropped to 41.9% last month, well below the 53.0% economists had estimated. Looking at today's report combined with the disheartening monthly jobs report announced on Friday, the risk of recession has grown very strong in the last week.
BHP Ups Bid for Rio Tinto. BHP Billiton (BHP, -4.1%) offered 3.4 shares for each share of Rio Tinto (RTP, -2.5% day, + 4.4% A.H) after Rio refused to begin merger talks. The bid is worth $147.4 billion.
MBIA Back Under Review For Downgrade. MBIA's (MBI, -3.2% day, -5.4% A.H.) AAA rating will come under further pressure after Fitch placed the bond insurer back under review for a downgrade. The ratings firm will probably increase the capital needed for the company to maintain its AAA rating. Fitch already has cut its AAA rating for Ambac Financial (ABK, -0.0%).
Disney Beats Estimates. Disney (DIS, -2.7% day, +5.9% A.H.) reported a 27% decrease in profits after the bell, but traded higher after topping analysts' estimates. Revenue jumped 9%.
Tomorrow Notable Earnings
Time Warner (TWX) Before Open
Prudential (PRU) After
CloseCisco (CSCO) After Close
Economic Events:
8:30 AM: Productivity and Costs
10:30 AM: Crude Inventories
Dow -370.03 (-2.93%)
Nasdaq -73.28 (-3.08%)
S&P 500 -44.18 (-3.20%)
News That Moved the Market
Market Plunges On ISM Service Data. Stocks fell the most in nearly a year after a disappointing ISM service figure. The Institute for Supply Management announced its non-manufacturing index dropped to 41.9% last month, well below the 53.0% economists had estimated. Looking at today's report combined with the disheartening monthly jobs report announced on Friday, the risk of recession has grown very strong in the last week.
BHP Ups Bid for Rio Tinto. BHP Billiton (BHP, -4.1%) offered 3.4 shares for each share of Rio Tinto (RTP, -2.5% day, + 4.4% A.H) after Rio refused to begin merger talks. The bid is worth $147.4 billion.
MBIA Back Under Review For Downgrade. MBIA's (MBI, -3.2% day, -5.4% A.H.) AAA rating will come under further pressure after Fitch placed the bond insurer back under review for a downgrade. The ratings firm will probably increase the capital needed for the company to maintain its AAA rating. Fitch already has cut its AAA rating for Ambac Financial (ABK, -0.0%).
Disney Beats Estimates. Disney (DIS, -2.7% day, +5.9% A.H.) reported a 27% decrease in profits after the bell, but traded higher after topping analysts' estimates. Revenue jumped 9%.
Tomorrow Notable Earnings
Time Warner (TWX) Before Open
Prudential (PRU) After
CloseCisco (CSCO) After Close
Economic Events:
8:30 AM: Productivity and Costs
10:30 AM: Crude Inventories
Dow loses 368 points...
Dow -368 to 12,265
S&P -44 to 1336
Nasdaq -73 to 2309
Volatility Index (VIX) +2.39 to 28.38
NYSE Breadth - 15-1 Downside Volume to Upside Volume (That's Bad!!)
Almost on cue the Market is heading back down to retest lows of January 22. A retest is a retracement back to previous lows, but not getting all the way there. This is a typical pattern after we see large, sharp selloffs similar to the one we saw in January. Experienced traders typically will not reenter the market until a retest happens. Look for a large round of buying if the Dow hits the 12,000 level. That is 265 points lower from here.
One troubling thing about today's selloff was that it was not accompanied by a sharp move higher in the VIX. This shows that today's selloff was not due to fear. Meaning we have more selling to come. The selloff won't be over until we get a sharp rise in the VIX, typically above the 35-37 level.
That 15-1 negative breadth is one of the worst readings I've seen in 15 years...yet no fear seen in the VIX???
S&P -44 to 1336
Nasdaq -73 to 2309
Volatility Index (VIX) +2.39 to 28.38
NYSE Breadth - 15-1 Downside Volume to Upside Volume (That's Bad!!)
Almost on cue the Market is heading back down to retest lows of January 22. A retest is a retracement back to previous lows, but not getting all the way there. This is a typical pattern after we see large, sharp selloffs similar to the one we saw in January. Experienced traders typically will not reenter the market until a retest happens. Look for a large round of buying if the Dow hits the 12,000 level. That is 265 points lower from here.
One troubling thing about today's selloff was that it was not accompanied by a sharp move higher in the VIX. This shows that today's selloff was not due to fear. Meaning we have more selling to come. The selloff won't be over until we get a sharp rise in the VIX, typically above the 35-37 level.
That 15-1 negative breadth is one of the worst readings I've seen in 15 years...yet no fear seen in the VIX???
Keep an Eye on the VIX....
The Volatility Index (VIX) is spiking higher as the market is selling off further.
The VIX measures that amount of fear in the market. Typically it acts as a contrary indicator for the market. When it spikes up over 35, that typically has marked bottoms in the market. On January 22, it hit 37.
Today it is up 2.05 to 28.04
The VIX measures that amount of fear in the market. Typically it acts as a contrary indicator for the market. When it spikes up over 35, that typically has marked bottoms in the market. On January 22, it hit 37.
Today it is up 2.05 to 28.04
Stocks that are bucking the trend....
Market selling off hard so far today (Dow -250). As we have been saying, it looks like traders are trying to bring stocks down to retest the lows made on January 22.
Bucking the trend:
Google (GOOG) up 9 to $504.50
Las Vegas Sands (LVS) up 11.50 to $93.00
Wynn Resorts (WYNN) up 9 to $120.50
Thornburg Mortgage (TMA) up .75 to $12.00
Intuitive Surgical (ISRG) up 4 to $311.00
Dolby Labs (DLB) up 1.67 to $49.05
KB Homes up 1.07 to $27.25
Continental Airlines up 1.06 to $29.00
Bucking the trend:
Google (GOOG) up 9 to $504.50
Las Vegas Sands (LVS) up 11.50 to $93.00
Wynn Resorts (WYNN) up 9 to $120.50
Thornburg Mortgage (TMA) up .75 to $12.00
Intuitive Surgical (ISRG) up 4 to $311.00
Dolby Labs (DLB) up 1.67 to $49.05
KB Homes up 1.07 to $27.25
Continental Airlines up 1.06 to $29.00
11:30 am Update....
Dow -231
S&P - 27
Nasdaq -38
The major indices continue to be under selling pressure. All ten S&P sectors are posting a loss in excess of 1%, five of those sectors are posting a loss larger than 2%.
A poor ISM Services reading helped give Treasuries a boost as traders up their bets on the size of the next Fed rate cut. The 10-year is up 27 ticks, pushing its yield down to 3.54%.
S&P - 27
Nasdaq -38
The major indices continue to be under selling pressure. All ten S&P sectors are posting a loss in excess of 1%, five of those sectors are posting a loss larger than 2%.
A poor ISM Services reading helped give Treasuries a boost as traders up their bets on the size of the next Fed rate cut. The 10-year is up 27 ticks, pushing its yield down to 3.54%.
Yahoo / Microsoft Square Off...
Yahoo (YHOO) may play 'hard to get' in an effort to entice Microsoft's (MSFT) to sweeten its $46.1B bid. Yahoo has received a number of tentative approaches from media, telecom and private equity groups that could potentially lead to a rival bid. Microsoft revealed Monday it would have to borrow money for the first time in order to foot the bill.
Yum Brands Reports In-line Earnings....
After Monday's closing bell, fast-food giant Yum Brands Inc. (YUM, $35.81, $0.57, 1.62%) reported fourth-quarter net income of $231 million, or 44 cents a share, nearly unchanged from $232 million, or 42 cents, a year ago. Total sales at the company came in at $3.01 billion, up 8%. Same-store sales, or those at outlets open at least a year, climbed 8% worldwide. The average estimate had been for the company to earn 42 cents a share on revenue of $3.21 billion. Looking to the current year, Yum raised its 2008 profit target from $1.82 to $1.85 per share, excluding one-time gains.
Yum Brands is the owner of KFC, Pizza Hut and Taco Bell chains...
Yum Brands is the owner of KFC, Pizza Hut and Taco Bell chains...
Las Vegas Sands Disappoints...
Las Vegas Sands Corp. (LVS). The Las Vegas-based developer and operator of hotel, gambling, and resort businesses late Monday reported fourth-quarter adjusted earnings of $71.1 million, or 20 cents a share, compared with $132.9 million, or 37 cents a share, during the year earlier. The company posted net income of $39.9 million, or 11 cents, a share, down from $113.6 million, or 32 cents a share, last year. Revenue for the three months ended Dec. 31 came in at $1.05 billion versus $636.3 million a year ago.
The company said its latest results were impacted, in part, by increases in operating costs related to its global expansion, as well as higher depreciation and amortization expense.
The stock is trading up 3 points pre-market.
The company said its latest results were impacted, in part, by increases in operating costs related to its global expansion, as well as higher depreciation and amortization expense.
The stock is trading up 3 points pre-market.
Companies Reporting Earnings Today...
• Ace Ltd. (ACE). Expected to post Q4 earnings of $1.90 a share, according to analysts polled by Thomson Financial.
• Avon Products Inc. (AVP). Expected to report Q4 earnings of $0.28 per share.
• CME Group Inc. (CME). Expected to report Q4 earnings of $3.62 a share.
• CNET Networks (CNET). Expected to report Q4 earnings of $1.29 a share.
• Duke Energy Corp. (DUK). Expected to post Q4 earnings of $0.24 per share.
• Martin Marietta Materials (MLM). Expected to post Q4 earnings of $1.55 per a share.
• Nabors Industries (NBR). Expected to post Q4 earnings of $0.73 a share.
• THQ Inc. (THQI). Expected to post Q3 earnings of $0.33 per share.
• Walt Disney Co. (DIS). Expected to report Q1 earnings of $0.52 per share.
• XL Capital (XL). Expected to report Q4 earnings of $1.76 a share.
• Avon Products Inc. (AVP). Expected to report Q4 earnings of $0.28 per share.
• CME Group Inc. (CME). Expected to report Q4 earnings of $3.62 a share.
• CNET Networks (CNET). Expected to report Q4 earnings of $1.29 a share.
• Duke Energy Corp. (DUK). Expected to post Q4 earnings of $0.24 per share.
• Martin Marietta Materials (MLM). Expected to post Q4 earnings of $1.55 per a share.
• Nabors Industries (NBR). Expected to post Q4 earnings of $0.73 a share.
• THQ Inc. (THQI). Expected to post Q3 earnings of $0.33 per share.
• Walt Disney Co. (DIS). Expected to report Q1 earnings of $0.52 per share.
• XL Capital (XL). Expected to report Q4 earnings of $1.76 a share.
Apple Adds New iPhone & iPod Models...
Apple Inc. (AAPL) $131.65 : Co announces it has added new models of the iPhone and iPod touch which have double the memory, doubling the amount of music, photos and videos. The iPhone now comes in a new 16GB model for $499, joining the 8GB model for $399. iPod touch now comes in a 32GB model for $499, joining the 16GB model for $399 and the 8GB model for $299.
Boston Scientific Beats by $0.15
Boston Scientific beats by $0.15, beats on revs; guides Q1 EPS above consensus, revs in-line (BSX) 12.85 +0.48 : Reports Q4 (Dec) earnings of $0.24 per share, excluding charges and amortization expense, $0.15 better than the First Call consensus of $0.09; revenues rose 4.2% year/year to $2.15 bln vs the $2.13 bln consensus.
Co issues mixed guidance for Q1, sees EPS of 0.15-0.20, excluding charges and amortization expense, vs. $0.12 consensus; sees Q1 revs of 1.96-2.08 bln vs. $2.09 bln consensus.
Co issues mixed guidance for Q1, sees EPS of 0.15-0.20, excluding charges and amortization expense, vs. $0.12 consensus; sees Q1 revs of 1.96-2.08 bln vs. $2.09 bln consensus.
SOHU Beats Earnings Estimates...
Sohu.com beats by $0.08, beats on revs; guides Q1 EPS above consensus, revs above consensus (SOHU) 48.95 -1.54 : Reports Q4 (Dec) earnings of $0.39 per share, including stock based comp, $0.08 better than the First Call consensus of $0.31; revenues rose 90.1% year/year to $65.3 mln vs the $55.4 mln consensus. Co issues upside guidance for Q1, sees EPS of $0.34-$0.37, including stock based comp, vs. $0.32 consensus; sees Q1 revs of $66.5-$68.5 mln vs. $59.00 mln consensus.
Co states, "...With the Beijing 2008 Olympic Games kicking off in 185 days, the Sohu brand resonates across China as we broaden our media reach to penetrate the Olympic audience. We expect the continued expansion of the total Chinese internet population, combined with our advancements in technology and our Olympic sponsorship, to help us to increase our market share of internet users. We believe that we will continue to reap the rewards of our success and strong branding for 2008 and beyond."
Co states, "...With the Beijing 2008 Olympic Games kicking off in 185 days, the Sohu brand resonates across China as we broaden our media reach to penetrate the Olympic audience. We expect the continued expansion of the total Chinese internet population, combined with our advancements in technology and our Olympic sponsorship, to help us to increase our market share of internet users. We believe that we will continue to reap the rewards of our success and strong branding for 2008 and beyond."
Monday, February 4, 2008
Daily Summary....
U.S. Markets
Dow -108.03 (-0.85%)
Nasdaq -30.51 (-1.26%)
S&P 500 -14.60 (-1.05%)
News That Moved the Market
Markets Fall; Factory Orders Disappoints. Markets drifted lower Monday after posting a strong gain last week. After opening down, major indices fell even lower after factory orders came in weaker than expected. The figure increased by 2.3%, but fell short of the 2.6% jump economists were anticipating.
With little news during the day, buyers seemed to sit the session out and let seller regain control.
Google Reacts To Microsoft's Bid. Microsoft's (MSFT, -0.1%) bid for Yahoo (YHOO, +3.3%) remained in focus Monday, as major players began reacting to the move. Google (GOOG, -4.0%) CEO Eric Schmidt reportedly called Yahoo CEO Jerry Yang to explore partnerships between the companies to fend off the unsolicited bid. Meanwhile, an executive at Google said on a blog during the weekend that the combination of Microsoft and Yahoo could create antitrust issues, despite Google owning a greater market share of the Internet search market than its two rivals combined. Yahoo said that it still has made "absolutely no decisions" about the proposed deal, but I do not know many Yahoo share holders opposed to it.
After Hours Earnings Reports.
News Corp. (NWS, -0.3% day; -0.0% A.H. ) reported a slight increase in profit, but missed estimates by a penny. The company closed its deal to buy Wall Street Journal publisher Dow Jones in December.
Yum Brands (YUM, +1.6% day, -1.3% A.H.) top and bottom-line fourth quarter figures beat estimates, but its 2008 EPS guidance fell short of expectations.
Tomorrow Notable Earnings
Toyota (TM) Before Open
Disney (DIS) After Close
NYSE Euronext (NYE) Before Open
CME (CME) Before Open
Economic Events:
10:00 AM: ISM Services
Dow -108.03 (-0.85%)
Nasdaq -30.51 (-1.26%)
S&P 500 -14.60 (-1.05%)
News That Moved the Market
Markets Fall; Factory Orders Disappoints. Markets drifted lower Monday after posting a strong gain last week. After opening down, major indices fell even lower after factory orders came in weaker than expected. The figure increased by 2.3%, but fell short of the 2.6% jump economists were anticipating.
With little news during the day, buyers seemed to sit the session out and let seller regain control.
Google Reacts To Microsoft's Bid. Microsoft's (MSFT, -0.1%) bid for Yahoo (YHOO, +3.3%) remained in focus Monday, as major players began reacting to the move. Google (GOOG, -4.0%) CEO Eric Schmidt reportedly called Yahoo CEO Jerry Yang to explore partnerships between the companies to fend off the unsolicited bid. Meanwhile, an executive at Google said on a blog during the weekend that the combination of Microsoft and Yahoo could create antitrust issues, despite Google owning a greater market share of the Internet search market than its two rivals combined. Yahoo said that it still has made "absolutely no decisions" about the proposed deal, but I do not know many Yahoo share holders opposed to it.
After Hours Earnings Reports.
News Corp. (NWS, -0.3% day; -0.0% A.H. ) reported a slight increase in profit, but missed estimates by a penny. The company closed its deal to buy Wall Street Journal publisher Dow Jones in December.
Yum Brands (YUM, +1.6% day, -1.3% A.H.) top and bottom-line fourth quarter figures beat estimates, but its 2008 EPS guidance fell short of expectations.
Tomorrow Notable Earnings
Toyota (TM) Before Open
Disney (DIS) After Close
NYSE Euronext (NYE) Before Open
CME (CME) Before Open
Economic Events:
10:00 AM: ISM Services
What a Boring Day...
I guess I'm getting spoiled by all the volatility we've seen over the past month, but today was very slow.
Closing performance:
Dow -108
S&P -14
Nasdaq -30
Retail and Gold stocks sold off, leaders were Pharmaceutical, Oil, and Fertilizer stocks.
More complete summary to follow.
Closing performance:
Dow -108
S&P -14
Nasdaq -30
Retail and Gold stocks sold off, leaders were Pharmaceutical, Oil, and Fertilizer stocks.
More complete summary to follow.
Motorola Downgraded to Sell....
MOT down .38 to $12.31
AmTech Research downgrades Motorola from Neutral to Sell . Amtech downgrades MOT to Sell from Neutral saying in the $13 range, MOT stock is discounting a successful sale of the handset division for $10-$11 bln.
The firm says they would sell the stock here on strength given the risk and uncertainty of timing and/or amount of transaction. They argue that 1) $8 bln for handsets would be generous based on 0.5x their CY08 sales estimate of $16 bln, and 2) a successful deal appears factored into today's stock valuation.
AmTech Research downgrades Motorola from Neutral to Sell . Amtech downgrades MOT to Sell from Neutral saying in the $13 range, MOT stock is discounting a successful sale of the handset division for $10-$11 bln.
The firm says they would sell the stock here on strength given the risk and uncertainty of timing and/or amount of transaction. They argue that 1) $8 bln for handsets would be generous based on 0.5x their CY08 sales estimate of $16 bln, and 2) a successful deal appears factored into today's stock valuation.
Wells Fargo Downgraded to Sell....
WFC down 1.75 to $31.90
Stifel Nicolaus downgrades Wells Fargo from Hold to Sell . Stifel downgrades WFC to Sell from Hold based on valuation. The firm says this move is one of the toughest decisions they have made in recent years.
They still believe the co has one of the better management teams in the industry and has a strong capital position relative to other large-cap banks. However, the shares currently trade at 14.0x their 2008 EPS of $2.40, which is in line with the broader market multiple. This premium multiple comes despite the fact that the firm has lowered their 2008 EPS estimate by 20% since 2Q07, which shows that while the company has avoided the large CDO and market valuation writedowns, it is not immune to the overall economic environment.
Stifel Nicolaus downgrades Wells Fargo from Hold to Sell . Stifel downgrades WFC to Sell from Hold based on valuation. The firm says this move is one of the toughest decisions they have made in recent years.
They still believe the co has one of the better management teams in the industry and has a strong capital position relative to other large-cap banks. However, the shares currently trade at 14.0x their 2008 EPS of $2.40, which is in line with the broader market multiple. This premium multiple comes despite the fact that the firm has lowered their 2008 EPS estimate by 20% since 2Q07, which shows that while the company has avoided the large CDO and market valuation writedowns, it is not immune to the overall economic environment.
A Lull in the Action....
Very sluggish market this morning. The averages are lower following a great Superbowl last night. Probably a hangover similar to the one I'm experiencing right now.
Dow - 69
S&P - 8
Nasdaq -16
I think Traders want to bring this market back down to retest the bottom made on January 22nd. However, with all the positive stimulus going on out there, they may not be able to.
The old adage is "Don't fight the Fed" and the Fed right now is cutting rates....that should help the market head higher over the next few months.
Dow - 69
S&P - 8
Nasdaq -16
I think Traders want to bring this market back down to retest the bottom made on January 22nd. However, with all the positive stimulus going on out there, they may not be able to.
The old adage is "Don't fight the Fed" and the Fed right now is cutting rates....that should help the market head higher over the next few months.
Earnings Today...
COMPANIES REPORTING EARNINGS
Anadarko Petroleum Corp. (APC). Expected to post Q4 earnings of $0.76 a share, a decrease of 40.86% from $1.28 earned same time last year, according to analysts polled by Thomson Financial.
Clorox Co. (CLX). Expected to report Q2 earnings of $0.55 a share.
Computer Sciences Corp. (CSC). Expected to report Q3 earnings of $1 a share.
Equifax Inc. (EFX). Expected to post Q4 earnings of $0.57 a share.
Lincoln National Corp. (LNC). Expected to post Q4 earnings of $1.36 a share.
Manitowoc Co. (MTW). Expected to post Q4 profit of $0.68 a share.
News Corp. (NWS). Expected to post Q2 earnings of $0.27 a share.
PartnerRe Ltd. (PRE). Expected to post Q4 earnings of $3.19 a share.
Post Properties Inc. (PPS). Expected to post Q4 earnings of $0.09 a share.
Principal Financial Group (PFG). Expected to report Q4 earnings of $1.01 a share.
Savvis Inc. (SVVS). Expected to post Q4 earnings of $0.02 a share.
Yum Brands Inc. (YUM). Expected to report Q4 earnings of $0.42 a share.
Anadarko Petroleum Corp. (APC). Expected to post Q4 earnings of $0.76 a share, a decrease of 40.86% from $1.28 earned same time last year, according to analysts polled by Thomson Financial.
Clorox Co. (CLX). Expected to report Q2 earnings of $0.55 a share.
Computer Sciences Corp. (CSC). Expected to report Q3 earnings of $1 a share.
Equifax Inc. (EFX). Expected to post Q4 earnings of $0.57 a share.
Lincoln National Corp. (LNC). Expected to post Q4 earnings of $1.36 a share.
Manitowoc Co. (MTW). Expected to post Q4 profit of $0.68 a share.
News Corp. (NWS). Expected to post Q2 earnings of $0.27 a share.
PartnerRe Ltd. (PRE). Expected to post Q4 earnings of $3.19 a share.
Post Properties Inc. (PPS). Expected to post Q4 earnings of $0.09 a share.
Principal Financial Group (PFG). Expected to report Q4 earnings of $1.01 a share.
Savvis Inc. (SVVS). Expected to post Q4 earnings of $0.02 a share.
Yum Brands Inc. (YUM). Expected to report Q4 earnings of $0.42 a share.
Google will try to thwart MSFT/YHOO deal...
Google mobilized over the weekend to thwart Microsoft's $44.6 billion hostile bid for Yahoo. A Google statement said the deal would threaten competition and needed examination by policymakers around the world. Google CEO Eric E. Schmidt reportedly called Yahoo chief Jerry Yang to offer help in fending off Microsoft, possibly in the form of a partnership between the companies.
Google's lobbyists in Washington began shaping arguments against the transaction, hoping to prolong a regulatory review at least until after the next president takes office.
This, of course, is positibve news for Yahoo, as it means Google may ultimately get in a bidding war with Microsoft. Yahoo is just responding that it is "exploring its options."
Google's lobbyists in Washington began shaping arguments against the transaction, hoping to prolong a regulatory review at least until after the next president takes office.
This, of course, is positibve news for Yahoo, as it means Google may ultimately get in a bidding war with Microsoft. Yahoo is just responding that it is "exploring its options."
Saturday, February 2, 2008
Daily Deep Thought....
"Winning isn't everything, but wanting to win is."
-Vince Lombardi
Wow...I guess I had that quote wrong all these years...I've been telling my kids:
Winning isn't everything...it's the only thing.
-Vince Lombardi
Wow...I guess I had that quote wrong all these years...I've been telling my kids:
Winning isn't everything...it's the only thing.
Friday, February 1, 2008
Daily Summary....
U.S. Markets
Dow +92.83 (+0.73%)
Nasdaq +23.50 (+0.98%)
S&P 500 +16.87 (+1.22%)
News That Moved the Market
Microsoft's Bid For Yahoo Spurs Rally. The markets found a direction after a volatile morning digesting a plethora of news. Most of the attention went to Microsoft's (MSFT) unsolicited $44.6 billion bid for Yahoo (YHOO). Microsoft's $31/share bid represented a 62% premium over Yahoo's closing price on Thursday. The combination of the two companies may provide stiff competition to Google (GOOG) who owns 56% of the Internet search market. Shares of Microsoft fell hard with investors questioning the steep premium and how the two companies will merge cultures, technologies, and strategies.
Jobs Reports Disappoints; ISM Manufacturing Jumps. Investors also had two major economic reports to deal with Friday, with both the monthly jobs report and the ISM Manufacturing Index being released. The jobs report was an absolute disappointment, showing a decrease in non-farm payrolls for the first time in four and a half years. The report proved the Fed's actions over the past two weeks were well justified and even more action will probably be needed to dodge a recession. ISM Manufacturing came in at 50.7, well ahead of estimates and representing expansion. The contradicting reports had a somewhat canceling out effect that allowed investors to concentrate on Microsoft's (MSFT) bid.
Merrill Sued For Fraud. Merrill Lynch (MER) was charged by Massachusetts regulators with fraud after selling CDOs to the city of Springfield, Massachusetts. The CDOs lost 91% of their value and the city said it did not authorize the purchase of the CDOs, adding the investment was unsuitable for the city's risk tolerance. Merrill was a little puzzled by the suit, which came a day after the bank said it would reimburse Springfield $13.9 million for their losses.
Monday Notable Earnings:
Wendy's (WEN) Before Open
Yum Brands (YUM)After Close
Economic Events:
10:00 AM: Factory Orders
Dow +92.83 (+0.73%)
Nasdaq +23.50 (+0.98%)
S&P 500 +16.87 (+1.22%)
News That Moved the Market
Microsoft's Bid For Yahoo Spurs Rally. The markets found a direction after a volatile morning digesting a plethora of news. Most of the attention went to Microsoft's (MSFT) unsolicited $44.6 billion bid for Yahoo (YHOO). Microsoft's $31/share bid represented a 62% premium over Yahoo's closing price on Thursday. The combination of the two companies may provide stiff competition to Google (GOOG) who owns 56% of the Internet search market. Shares of Microsoft fell hard with investors questioning the steep premium and how the two companies will merge cultures, technologies, and strategies.
Jobs Reports Disappoints; ISM Manufacturing Jumps. Investors also had two major economic reports to deal with Friday, with both the monthly jobs report and the ISM Manufacturing Index being released. The jobs report was an absolute disappointment, showing a decrease in non-farm payrolls for the first time in four and a half years. The report proved the Fed's actions over the past two weeks were well justified and even more action will probably be needed to dodge a recession. ISM Manufacturing came in at 50.7, well ahead of estimates and representing expansion. The contradicting reports had a somewhat canceling out effect that allowed investors to concentrate on Microsoft's (MSFT) bid.
Merrill Sued For Fraud. Merrill Lynch (MER) was charged by Massachusetts regulators with fraud after selling CDOs to the city of Springfield, Massachusetts. The CDOs lost 91% of their value and the city said it did not authorize the purchase of the CDOs, adding the investment was unsuitable for the city's risk tolerance. Merrill was a little puzzled by the suit, which came a day after the bank said it would reimburse Springfield $13.9 million for their losses.
Monday Notable Earnings:
Wendy's (WEN) Before Open
Yum Brands (YUM)After Close
Economic Events:
10:00 AM: Factory Orders
Today's Upgrades and Downgrades....
Lowe's: Citigroup downgrades Buy to Hold. Citigroup downgraded LOW to Hold from Buy, as they believe both LOW and HD 4Q07 SSS are likely tracking below guidance, as continued housing market weakness and a faltering consumer are taking its toll. The firm notes that since 2008 EPS visibility is very limited, and they anticipate HD and LOW guidance to be cautious in February, and as such, they expect additional pressure on these stocks. Firm cuts their ests for both HD and LOW.
Motorola: Citigroup upgrades Hold to Buy. Citigroup upgraded MOT to Buy from Hold as the co is finally exploring a structural and strategic realignment of its businesses. The firm believes that this will serve as a meaningful catalyst to Motorola shares as investors will look past the drag from the underperforming handset business. Firm says their sum of the parts analysis indicates a value of $16 - $17, with fairly conservative assumptions.
Avid Tech: Kaufman Bros downgrades Hold to Sell . Target $28 to $15. Kaufman Bros. downgrades AVID to Sell from Hold and lowers their tgt to $15 from $28, following Q407 revenue results that exceeded firm estimates with EPS slightly lower and based on management's view of 2008 as a transition year.
Garmin: Needham & Co upgrades Hold to Buy. Target $85. Needham upgrades GRMN to Buy from Hold with an $85 noting GRMN shares are down almost 30% ytd and 45% from their peak late last year. While some new concerns, such as threat of a macro slowdown and maturing of the European market have recently been added to the traditional ones, the firm believes these concerns are likely more than baked into the current share price and must be balanced against the very robust nearterm performance of Garmin's business. Firm also says while they are impressed by the new Nuviphone and expect it will minimally be a modest success, they don't view it as critical to the shares working from here.
RF Micro Device: Needham & Co downgrades Strong Buy to Buy. Needham downgrades RFMD to Buy from Strong Buy with a $6 tgt following earnings and saying they are bullish on RFMD for the following reasons: 1) Healthy handset unit growth, 2) more than doubling of GaAs content per handset with the migration to 3G, 3) Pricing of GaAs components to stabilize as industry enters capacity constraint conditions, 4) Continued Ramp up of Polaris transceivers through C08 based on current design activity; 5) Several strategies to increase margins.
Medarex: Banc of America Sec upgrades Sell to Neutral. BofA upgraded MEDX to Neutral from Sell based on valuation. At current prices, the firm believes expectations for MDX-010, its lead compound for melanoma, are low for a timely approval and that downside is limited. Longer term, they continue to believe that MDX-010 is a drug with activity in a relatively small percentage of patients and that it will ultimately gain approval. They estimate ~$300 mln in peak sales for MDX-010 in 2012.
Bristol-Myers: Cowen & Co upgrades Neutral to Outperform. Cowen upgraded BMY to Outperform from Neutral following earnings. The firm says standout Q4 EPS growth were driven by better-than-expected revenues. Current product dynamics, a good pipeline, upcoming news events, and attractive yield make a standout investment case.
Motorola: Citigroup upgrades Hold to Buy. Citigroup upgraded MOT to Buy from Hold as the co is finally exploring a structural and strategic realignment of its businesses. The firm believes that this will serve as a meaningful catalyst to Motorola shares as investors will look past the drag from the underperforming handset business. Firm says their sum of the parts analysis indicates a value of $16 - $17, with fairly conservative assumptions.
Avid Tech: Kaufman Bros downgrades Hold to Sell . Target $28 to $15. Kaufman Bros. downgrades AVID to Sell from Hold and lowers their tgt to $15 from $28, following Q407 revenue results that exceeded firm estimates with EPS slightly lower and based on management's view of 2008 as a transition year.
Garmin: Needham & Co upgrades Hold to Buy. Target $85. Needham upgrades GRMN to Buy from Hold with an $85 noting GRMN shares are down almost 30% ytd and 45% from their peak late last year. While some new concerns, such as threat of a macro slowdown and maturing of the European market have recently been added to the traditional ones, the firm believes these concerns are likely more than baked into the current share price and must be balanced against the very robust nearterm performance of Garmin's business. Firm also says while they are impressed by the new Nuviphone and expect it will minimally be a modest success, they don't view it as critical to the shares working from here.
RF Micro Device: Needham & Co downgrades Strong Buy to Buy. Needham downgrades RFMD to Buy from Strong Buy with a $6 tgt following earnings and saying they are bullish on RFMD for the following reasons: 1) Healthy handset unit growth, 2) more than doubling of GaAs content per handset with the migration to 3G, 3) Pricing of GaAs components to stabilize as industry enters capacity constraint conditions, 4) Continued Ramp up of Polaris transceivers through C08 based on current design activity; 5) Several strategies to increase margins.
Medarex: Banc of America Sec upgrades Sell to Neutral. BofA upgraded MEDX to Neutral from Sell based on valuation. At current prices, the firm believes expectations for MDX-010, its lead compound for melanoma, are low for a timely approval and that downside is limited. Longer term, they continue to believe that MDX-010 is a drug with activity in a relatively small percentage of patients and that it will ultimately gain approval. They estimate ~$300 mln in peak sales for MDX-010 in 2012.
Bristol-Myers: Cowen & Co upgrades Neutral to Outperform. Cowen upgraded BMY to Outperform from Neutral following earnings. The firm says standout Q4 EPS growth were driven by better-than-expected revenues. Current product dynamics, a good pipeline, upcoming news events, and attractive yield make a standout investment case.
Computer Associates Moves Higher....
CA up 3.27 to $25.27
Software maker CA Inc. (CA) said fiscal third-quarter net income tripled, aided by cost-cutting and a lower restructuring charge compared with a year earlier. The maker of business and data-management software formerly called Computer Associates also raised its full-year 2008 forecast.
Excluding items, the company reported earnings of 36 cents a share from continuing operations, compared with 24 cents a year earlier. Revenue rose 9.8% to $1.1 billion from $1 billion.
Analysts polled by Thomson Financial had expected the Islandia, N.Y., company to post earnings, excluding items, of 25 cents a share on revenue of $1.05 billion.
Software maker CA Inc. (CA) said fiscal third-quarter net income tripled, aided by cost-cutting and a lower restructuring charge compared with a year earlier. The maker of business and data-management software formerly called Computer Associates also raised its full-year 2008 forecast.
Excluding items, the company reported earnings of 36 cents a share from continuing operations, compared with 24 cents a year earlier. Revenue rose 9.8% to $1.1 billion from $1 billion.
Analysts polled by Thomson Financial had expected the Islandia, N.Y., company to post earnings, excluding items, of 25 cents a share on revenue of $1.05 billion.
Dolby Labs (DLB): Stock of the Day....
DLB up 4.50 to $47.42
Dolby Labs (DLB) first-quarter net income rose to $47.7 million, or 42 cents a share, from $29.9 million, or 27 cents a share, a year earlier. Revenue increased to $150.2 million from $104.4 million the year before. On average, analysts had expected first-quarter earnings of 32 cents a share and revenue of $134.4 million. Dolby raised its 2008 forecasts, now projecting earnings of $1.34 to $1.44 a share and revenue of $575 million to $615 million. The company had predicted annual net income of $1.27 to $1.37 a share and revenue of $560 million to $600 million.
That is the company's 11th straight quarter or earnings and revenue growth!!!
The company's principal activities are to develop and deliver innovative products and technologies that make the entertainment experience more realistic and immersive in theatres, homes and cars. The Group operates in single segments, licenses its technologies to manufacturers of DVD players, DVD recorders, audio/video receivers, television sets, set-top boxes, video game consoles, personal audio and video players, personal computers, in-car entertainment systems and other consumer electronics. The Products and Production Services segment designs, manufactures and sells audio products for the motion picture, broadcast, music and video game industries to improve sound quality, provide surround sound and increase the efficiency of sound storage and distribution.
Dolby Labs (DLB) first-quarter net income rose to $47.7 million, or 42 cents a share, from $29.9 million, or 27 cents a share, a year earlier. Revenue increased to $150.2 million from $104.4 million the year before. On average, analysts had expected first-quarter earnings of 32 cents a share and revenue of $134.4 million. Dolby raised its 2008 forecasts, now projecting earnings of $1.34 to $1.44 a share and revenue of $575 million to $615 million. The company had predicted annual net income of $1.27 to $1.37 a share and revenue of $560 million to $600 million.
That is the company's 11th straight quarter or earnings and revenue growth!!!
The company's principal activities are to develop and deliver innovative products and technologies that make the entertainment experience more realistic and immersive in theatres, homes and cars. The Group operates in single segments, licenses its technologies to manufacturers of DVD players, DVD recorders, audio/video receivers, television sets, set-top boxes, video game consoles, personal audio and video players, personal computers, in-car entertainment systems and other consumer electronics. The Products and Production Services segment designs, manufactures and sells audio products for the motion picture, broadcast, music and video game industries to improve sound quality, provide surround sound and increase the efficiency of sound storage and distribution.
Arch Coal Beats Estimates...
Arch Coal beats by $0.09, reports revs in-line; guides FY08 EPS in-line (ACI) 43.95 : Reports Q4 (Dec) earnings of $0.56 per share, $0.09 better than the First Call consensus of $0.47; revenues rose 4.2% year/year to $644.4 mln vs the $641.1 mln consensus.
Co issues in-line guidance for FY08, sees EPS of $2.00-2.50 vs. $2.43 consensus.
The stock is trading up 2.25 to a new 52-week high $46.20
Co issues in-line guidance for FY08, sees EPS of $2.00-2.50 vs. $2.43 consensus.
The stock is trading up 2.25 to a new 52-week high $46.20
Don't Be Fooled By Yesterday's Rally....
Remember, yesterday was the last day of the worst January in Stock Market History. Fund Managers wanted to close out the month as high as they could to minimize the "shock" on their clients' faces when they get their January statements.
It's called "Window Dressing" and that's what happened.
Today's higher open was due to the Microsoft bid for Yahoo. M&A is back.
We've settled back down to even on the day....and traders still want to go back down and retest the bottom from last Tuesday. Be careful.
It's called "Window Dressing" and that's what happened.
Today's higher open was due to the Microsoft bid for Yahoo. M&A is back.
We've settled back down to even on the day....and traders still want to go back down and retest the bottom from last Tuesday. Be careful.
Movers on the open...
Google (GOOG) -40 to $524
Crocs (CROX) +1.81 to $36.60
Chipotle (CMG) +2.92 to $123.30
Gamestop (GME) +.75 to $52.33
Potash +3 to $144
Wynn Resorts (WYNN) + 4.25 to $119.25
Celgene (CELG) + 2.64 to $58.75
Intuitive Surgical (ISRG) + 55 to $309.00
Crocs (CROX) +1.81 to $36.60
Chipotle (CMG) +2.92 to $123.30
Gamestop (GME) +.75 to $52.33
Potash +3 to $144
Wynn Resorts (WYNN) + 4.25 to $119.25
Celgene (CELG) + 2.64 to $58.75
Intuitive Surgical (ISRG) + 55 to $309.00
Chevron Earnings....
Chevron beats by $0.06 (CVX) $83.25 : Reports Q4 (Dec) earnings of $2.32 per share, $0.06 better than the First Call consensus of $2.26; revenues rose 28.6% year/year to $61.41 bln.
CEO says "Fourth quarter earnings for our upstream business benefited from a significant increase in the price of crude oil. However, downstream profits were off sharply because of planned and unplanned refinery downtime in the United States, as well as the impact of higher crude-oil costs that were not fully recovered in the sales price of refined products.
CEO says "Fourth quarter earnings for our upstream business benefited from a significant increase in the price of crude oil. However, downstream profits were off sharply because of planned and unplanned refinery downtime in the United States, as well as the impact of higher crude-oil costs that were not fully recovered in the sales price of refined products.
Interesting Looking Company...
Intuitive Surgical Inc. (ISRG) expects its revenue to climb 40% this year from $600.8 million in 2007 as more hospitals buy and ramp up usage of the company's expensive robotic surgical system, the company said Thursday. Shares of Intuitive, which soared last year but have recently been more than $100 below the 52-week high, recently traded at $291.55 in after-hours trading. That's up considerably from Thursday's close at $254 following an 8.1% climb during the regular trading session.
Intuitive reported net income that more than doubled to $49.2 million in the recent quarter, helped by the sale of 78 da Vinci systems, up from 50 sales a year earlier. Twenty machines were sold to existing customers and 26 were sold outside the U.S. The company is forecasting system revenues, tied to shipments of da Vinci units, to rise about 30% in 2008.
System sales are important, but so is the growth in procedures because Intuitive collects usage-related revenue tied to the sale of accessories, system service and training. "System utilization has steadily increased and currently averages about three procedures per system per week across the installed base," Gong said. The worldwide installed base of da Vinci machines reached 795 at the end of the fourth quarter. The system today has grown on the back of prostate removal surgery, and hysterectomies represent a fast growth area. According to Gong, the company sees prostatectomy procedures growing by about 40% this year and hysterectomy procedures growing by about 150%.
The fourth quarter tends to be the strongest quarter for system sales, Gong noted. Intuitive sees first-quarter revenue down from the fourth quarter, but then growing sequentially in subsequent quarters. The average selling price per da Vinci machine reached a high of $1.38 million in the fourth quarter, helped by sales of a newer model and sales outside the U.S. that benefited from the weak dollar.
The average selling price on the year was about $1.33 million, which Intuitive expects will also be the average price in 2008. Intuitive sees gross margins in 2008 between 69% and 70%.
Intuitive reported net income that more than doubled to $49.2 million in the recent quarter, helped by the sale of 78 da Vinci systems, up from 50 sales a year earlier. Twenty machines were sold to existing customers and 26 were sold outside the U.S. The company is forecasting system revenues, tied to shipments of da Vinci units, to rise about 30% in 2008.
System sales are important, but so is the growth in procedures because Intuitive collects usage-related revenue tied to the sale of accessories, system service and training. "System utilization has steadily increased and currently averages about three procedures per system per week across the installed base," Gong said. The worldwide installed base of da Vinci machines reached 795 at the end of the fourth quarter. The system today has grown on the back of prostate removal surgery, and hysterectomies represent a fast growth area. According to Gong, the company sees prostatectomy procedures growing by about 40% this year and hysterectomy procedures growing by about 150%.
The fourth quarter tends to be the strongest quarter for system sales, Gong noted. Intuitive sees first-quarter revenue down from the fourth quarter, but then growing sequentially in subsequent quarters. The average selling price per da Vinci machine reached a high of $1.38 million in the fourth quarter, helped by sales of a newer model and sales outside the U.S. that benefited from the weak dollar.
The average selling price on the year was about $1.33 million, which Intuitive expects will also be the average price in 2008. Intuitive sees gross margins in 2008 between 69% and 70%.
Cummins Misses on Earnings...
Cummins misses by $0.05, beats on revs; guides FY08 revs in-line (CMI) 48.35 : Reports Q4 (Dec) earnings of $1.00 per share, $0.05 worse than the First Call consensus of $1.05; revenues rose 15.4% year/year to $3.5 bln vs the $3.46 bln consensus.
Sales are forecast to increase 12% from 2007 levels (which calculates to roughly $14.61 mln vs. $14.63 bln consensus), and the co expects to generate EBIT of 10% of sales in 2008.
The stock is down $3 premarket to $45.
Sales are forecast to increase 12% from 2007 levels (which calculates to roughly $14.61 mln vs. $14.63 bln consensus), and the co expects to generate EBIT of 10% of sales in 2008.
The stock is down $3 premarket to $45.
Google Wakes Up with a Hangover....
Talk about getting kicked when you're down....
Google stock is down 40 points pre market due to falling short on earnings and revenue expectations.....now the Mcrosoft / Yahoo Buyout.....
By the way...Yahoo shareholders and Board have to OK this deal. Google may.....and I say may....hop in here and raise the bid.....I doubt it though.
Google stock is down 40 points pre market due to falling short on earnings and revenue expectations.....now the Mcrosoft / Yahoo Buyout.....
By the way...Yahoo shareholders and Board have to OK this deal. Google may.....and I say may....hop in here and raise the bid.....I doubt it though.
Jetbue Partners with Irish Airline....
Low-fare,high-frills carrier JetBlue Airways Corporation (Nasdaq:JBLU) and Aer Lingus, Ireland's low-fares counterpart, today officially announced their industry-first strategic partnership will come into effect on April 3, 2008.
The innovative partnership will enable Irish and U.S. customers to book a single low fare reservation between Ireland and more than 40 continental U.S.destinations, connecting through JetBlue's home base at New York's John F.Kennedy International Airport (JFK).
The innovative partnership will enable Irish and U.S. customers to book a single low fare reservation between Ireland and more than 40 continental U.S.destinations, connecting through JetBlue's home base at New York's John F.Kennedy International Airport (JFK).
Exxon Mobil Reports Earnings...
Exxon Mobil Corp.'s (XOM) fourth-quarter net income rose 14% to $11.66 billion, or $2.13 a share, from $10.25 billion, or $1.76 a share, a year earlier, boosted in part by higher upstream earnings.
A Thomson Financial survey of analysts, on average, predicted earnings of $1.95 a share for the quarter. Analysts' estimates usually exclude items. The Irving, Texas, oil and gas company said revenue grew to $116.64 billion from $90.03 billion.
A Thomson Financial survey of analysts, on average, predicted earnings of $1.95 a share for the quarter. Analysts' estimates usually exclude items. The Irving, Texas, oil and gas company said revenue grew to $116.64 billion from $90.03 billion.
Microsoft to Buy Yahoo...
Microsoft Corp. (MSFT) offers to buy Yahoo Inc. (YHOO) for $44.6 billion, a move designed to create a more credible competitor to industry leader Google Inc. (GOOG) and deepen Microsoft's position in the market for online business software.
The hostile approach, outlined by Microsoft Chief Executive Steve Ballmer in a letter sent Thursday night to Yahoo's board and published Friday, is aimed at pressing Yahoo to agree to a combination it rejected a year ago.
The offer, for $31 a share in cash and stock, represents a 62% premium to Yahoo's closing price Thursday. It comes offer comes as Yahoo continues to struggle against Google in the race for online-advertising revenue and Internet-search market share despite efforts to upgrade its systems. Yahoo's shares have lost about 40% of their value over the past three months.
I think we called this one on Monday....
The hostile approach, outlined by Microsoft Chief Executive Steve Ballmer in a letter sent Thursday night to Yahoo's board and published Friday, is aimed at pressing Yahoo to agree to a combination it rejected a year ago.
The offer, for $31 a share in cash and stock, represents a 62% premium to Yahoo's closing price Thursday. It comes offer comes as Yahoo continues to struggle against Google in the race for online-advertising revenue and Internet-search market share despite efforts to upgrade its systems. Yahoo's shares have lost about 40% of their value over the past three months.
I think we called this one on Monday....
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