Buffett to the rescue of BAC...

This just in....

Warren Buffett is investing $5 billion in Bank of America, putting the Oracle of Omaha’s golden seal of approval on the battered banking giant. 

Remember that Buffett rode to the rescue of several besieged financing giants during the financial crisis, investing in Goldman Sachs and General Electric, among others, during the heat of financing panic in 2008 and 2009.

Buffett’s seal of approval is legendary and he charges a fortune for it. He’s buying 50,000 preferred shares of Bank of America at a dividend of 6% a year. He’s also receiving warrants on 700 million shares at a strike price of about $7.14 a share. Those warrants would have been out of the money yesterday, but will be in the money as soon as markets open. The deal will make Buffett one of Bank of America’s biggest shareholders.

Futures have spiked as a result...Look for a big rally in bank shares.

Amazon + Hulu = Trouble for Netflix....

According to the Wall Street Journal, Amazon, along with other potential bidders, Google, DirecTV and Yahoo are supposed to submit bids for Hulu today. Hulu, which is currently owned by News Corp., Walt Disney and Comcast, could be acquired for as much as $2 billion, depending on how the auction goes and the content is split up.

If Jeff Bezos and his team were to get Hulu, it would be a massive win for the Seattle-based company, and be a huge blow to Netflix. Amazon already has over 100,000 streaming videos through its Amazon Prime service, and it would take on Netflix in a way that should leave Reed Hastings and his team up late at night.

UBS, Citi cut global growth view, rule out recession...

UBS and Citigroup lowered their forecast for global growth, with sharp reductions to its euro zone view and more modest cuts for China, but ruled out the likelihood of a recession for now.

Steve Jobs quits as Apple CEO, Cook takes over...

Steve Jobs resigned as CEO of Apple Inc on Wednesday and passed the reins to his right-hand man Tim Cook, saying he could no longer fulfill the duties in a bombshell announcement that raised fears his health has deteriorated further.

Wednesday's Recap...

Leading stocks behaved decently Wednesday as the major indexes rose for a third straight day.  The Nasdaq rallied 0.9% and finished almost at the day's high during a seesaw session. That followed a 4.3% jump Tuesday, which marked a follow-through on a new rally that began Aug. 9.  The S&P 500 closed it it's highs of the day, rising 1.3%, beating the Nasdaq's gain. The NYSE composite was up 0.9% and the small-cap Russell 2000 gained 1.4%. Gold miners fell hard.

After the bell, news that Steve Jobs is stepping down as CEO of Apple put pressure on the markets overnight.

Stocks Rally into the close....

Dow +143
Nas +21
S&P +15 to 1177

Gold sells off again -5.12% TO 1172

Levels to watch are 1200 on the S&P and 1125 in Gold.

Ouch!!! I don't even want to think about where they inject this....

Allergan (AGN +2.4%) announces FDA approval for its BOTOX solution to urinary incontinence for patients with neurological conditions. Shares started trading higher yesterday in advance of today's announcement.  AGN is currently up 1.86 to 77.48

RIMM looks to compete more with iPhone....

Research In Motion (RIMM) is up 2.9% after reports that the QNX phones it's introducing early next year will run apps made for Android (GOOG). At 250K apps, the Android Market is roughly six times the size of RIM's own app store.

Considering RIMM is down to $28 from a high of $70 in February, it might be time to get back in.  Looking at the chart below you can see the stock has put in a nice bottom, a break above $30 would be very positive.

Bernanke to try to flatten the yield curve...

Many expect Bernanke to give support on Friday to a version of "Operation Twist," a '50s-era program to flatten the yield curve. If that happens, long-term Treasury buyers could be looking at lower returns going forward. Risk-averse investors have poured billions into Treasury funds this year, widening the spread between long-term Treasurys and corporate debt.

Amazon to use Kindle as ad tool....

Amazon (AMZN -1.1%) launches daily deals on Kindle ebooks, adding to the firm's presence in the online coupon space as an investor in LivingSocial.

Fertilizer play with a nice dividend...

Terra Nitrogen (TNH) is on a serious roll...check out this nice chart.  Add in a 8.84% dividend and this looks like a good one...

ATPG Oil and Gas might be worth a play....

Shares of ATP Oil & Gas (ATPG +6.2%) get a boost this morning, after the driller says it has successfully brought online the well at its Telemark Hub location in the deep-water Gulf of Mexico after a 16 month delay.

ATPG currently trades at 10.82.  It traded above $22 a share before the BP spill and subsequent ban on offshore drilling was instituted.

Just a thought....

What if we have an earthquake aftershock at the same time we get Hurricane Irene??? 

How cool would that be???

Update on Hurricane Irene...

Hurricane Irene intensified into a Category 3 hurricane (the threshold for major hurricane classification) Wednesday morning.  Irene will likely then strengthen into a powerful Category 4 hurricane during its dangerous assault on the Bahamas into Thursday.

After leaving the Bahamas, Irene will take aim at the North Carolina Outer Banks and New England this weekend. Florida and Georgia will be spared in the process.

Dominion Power Back up and Running...

Shares of Dominion Resources (D +1.5%) gain after the firm says the North Anna Power Station is no longer relying on back-up generators following the 5.8-magnitude earthquake.

Technology Picks....

24/7 Wall St. picks 12 big techs trading at steep market discounts while also sporting solid financial fundamentals: AMAT, CSC, GLW, DELL, HPQ, INTC, KLAC, LRCX, MSFT, MU, SNDK, WDC.

Today's Upgrades and Downgrades...

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Wednesday morning.

Boston Scientific Corporation (NYSE: BSX) Reiterated Buy as Value at Zacks; Cut to Market Perform at Morgan Keegan.
CIGNA Corporation (NYSE: CI) named as Bull of the Day at Zacks.
Computer Sciences Corp. (NYSE: CSC) Maintained Underperform as Bear of the Day at Zacks.
Elan Corporation (NYSE: ELN) Raised to Outperform at Credit Suisse.
Google Inc. (NASDAQ: GOOG) Started as Outperform at Baird.
NASDAQ OMX Group (NASDAQ: NDAQ) Raised to Buy at UBS.
Newmont Mining Corp. (NYSE: NEM) Raised to Sector Perform at RBC.
Nucor Corporation (NYSE: NUE) Raised to Overweight at Morgan Stanley.
Royal Caribbean Cruises Ltd. (NYSE: RCL) Cut to Hold at Argus.
Sanmina-SCI Corp. (NASDAQ: SANM) Cut to Underperform at RBC.
Saks Incorporated (NYSE: SKS) Raised to Neutral at Credit Suisse.
United States Steel Corp. (NYSE: X) Cut to Equal-Weight at Morgan Stanley.
VIVIUS Inc. (NASDAQ: VVUS) Reiterated Buy and $9 target at BofA/ML

So you want to short Gold???

This might be the way to play it:  GLL - the Double Short Gold ETF

Gold selling off again....

Gold down to $1774.70 per ounce.  Note how quickly the selloff can be in this.  If/when it does break down below $1700, look for an acceleration downward as gold "investors" panic out.

Market shakes off poor start.....

Dow +102
Nas +21
S&P +11

Banks, Oils and Tech now leading the market higher.

A key reversal so far in Bank of America stock.  The stock is up 0.54 to $8.54.  

I'm really liking Mastercard here....

During last quarter, Berkshire Hathaway increased its position in MasterCard (NYSE: MA ) , by a whopping 88%. Many believe that the move stems from financial-stock bull Todd Combs, a young investor whom Buffett has tapped to manage some of the company's money. Combs may be one of the candidates to succeed Buffett as well.


The stock is currently up 4 points this morning to $326.

15 Minutes in....

The market is shaking off premarket negativity and has just turned positive.

Dow +3
Nas +1
S&P +1

Banks leading the market higher...

More on Mortgage Applications....

Applications for home purchases dropped 5.7% to the lowest level since December 1996. Volatile markets and "rampant uncertainty regarding the economy kept prospective homebuyers on the sidelines," the Mortgage Bankers Association says.

Premarket Movers....

Gainers:

AVGO +11%. RENN +12%. ATPG +10%. ELN +5%. CPST +4%.

Losers:
 
PSUN -22%. UTHR -21%. HSOL -10%. TCAP -8%. AEO -7%. HGSI -7%. BUD -4%. TTM -4%. LPL -4%. BCS -4%. AUO -3%. STD -3%.

CVS Caremark to buyback another $4B of stock....

CVS Caremark (CVS) announces a $4B stock buyback program on top of an earlier $2B buyback. The drugstore operator says it will repurchase at least $1B in stock by the end of the year. Shares +2.1% premarket.

Stocks ignore negative reports....

Investors paid no mind to two weak reports Tuesday:

July new-home sales fell 0.7% to an annual rate of 298,000 units. Sales fell to a five-month low and missed expectations for 310,000 units.

The Richmond Fed's manufacturing index tumbled to -10 in August from -1 in July. That was the lowest reading since June 2009.

When stocks dismiss bad news, that shows strength.

Earnings Due Today...

• American Eagle Outfitters Inc. (AEO). Expected to report Q2 earnings of 11 cents a share, according to Thomson Reuters I/B/E/S

• Applied Materials Inc. (AMAT). Expected to report Q3 earnings of 33 cents a share

• Express Inc. (EXPR). Expected to report Q2 earnings of 15 cents a share

• Guess Inc. (GES). Expected to report Q2 earnings of 81 cents a share

• Heico Corp. (HEI). Expected to report Q3 earnings of 40 cents a share

• Semtech Corp. (SMTC). Expected to report Q2 earnings of 48 cents a share

• Solera Holdings Inc. (SLH). Expected to report Q4 earnings of 60 cents a share

This can't be bad for Boeing....

Delta Air Lines Inc. (DAL). The company is expected to order 100 Boeing Co (BA) extended-range 737 planes as it looks to replace older aircraft with more fuel-efficient models, sources with knowledge of the matter said on Tuesday. The order could be valued at up to $8.6 billion based on average prices.

Toll Brothers Q3 profit rises; narrows Fiscal Year outlook...

The luxury builder posted a higher quarterly profit, helped by a rise in orders, but narrowed its home delivery outlook for the year as it expects the housing sector to remain in a fragile state due to weak consumer confidence.

Hansen breaks out....

Hansen Natural (HANS) cleared a third-stage, lopsided cup-with-handle base in more than double its average trade. The distributor of Monster Energy drinks closed at an all-time high and is 3% above an 82.10 buy point.

This from IBD's morning commentary on yesterday's action:

"The major indexes soared broadly Tuesday, giving the market a hopeful sign.

The Nasdaq bolted 4.3%, the S&P 500 3.4% and the NYSE composite 3.3%. All closed right at their session highs. Volume rose on both major exchanges.

Tuesday's big gains along with the higher volume constituted a follow-through, a confirmation signal for the market rally that started Aug. 9.

Although it's historically a bullish sign for the market, a follow-through signal is not the holy grail. So don't start buying stocks with both hands.  The market still faces some question marks."

IBD changed their outlook to "Market in confirmed uptrend."

Futures Lower as Japan Debt is Downgraded....

Stock Futures are lower this morning following Moody's downgrade of Japanese Debt rating overnight.  Dow Futures are 101 points lower.

Moody's cuts Japan rating, blames politics


Moody's Investors Service cut its rating on Japan's government debt by one notch to Aa3, blaming a build-up of debt since the 2009 global recession and revolving-door political leadership that has hampered effective economic strategies.

Warren Buffett's Top 10 Dividend Stocks.....

Companies and their dividend yields as of today's close.

1. Glaxo Smith Kline (GSK) 5.00%
2. Conoco Phillips (COP) 4.01%
3. Johnson & Johnson (JNJ) 3.50%
4. Sanofi (SNY) 3.59%
5. Procter & Gamble (PG) 3.33%
6. Kraft (KFT) 3.40%
7. M&T Bank (MTB) 3.85%
8. General Electric (GE) 3.86%
9. UPS (UPS) 3.25%
10. Coca-Cola (KO) 2.72%

Nice Close....

Dow closes 320 points higher to 11175
Nasdaq + 100 to 2446
S&P +38 to 1162

Keep an eye on the 1200 level for S&P

Also Gold closes -$64 to 1827

Sprint to sell iPhone 5???

Sprint (S +10.8%) shoots higher on a WSJ report the carrier will be selling Apple's (AAPL) iPhone 5. Rumors of Sprint offering the next iPhone have existed for months.

Just a few Gainers....

Chipotle (CMG) +20.29 to 293.87
Amazon (AMZN) +15.70 to 193.16
Green Mountain (GMCR) +8.43 to 93.76
Nike (NKE) +4.02 to 83.25
Perrigo (PRGO) +3.43 to 90.10
Carbo Ceramics (CRR) +9.88 to 140.75

Notable Losers in an Up tape....

Goldman Sachs (GS) -0.43 to 106.12
Bank of America (BAC) -0.20 to 6.22
Travelzoo (TZOO) -1.73 to 32.45
Urban Outfitters (URBN) -0.64 to 26.39

Dominion Resources loses power...

Dominion Resources (D) loses all offsite power at its North Anna nuclear plant in Virginia, and is using backup generators to keep spent fuel cool. D's shares fell more than 2% immediately following the quake before rebounding a bit.

You think I was kidding????

Take a look at this market.  Taking off this afternoon following the Earthquake (Dow now up 272 points).  The Northeast is all abuzz!!!

Toyota Lowers price on Camry...

Toyota (TM +2.5%) introduces a new generation of its bestselling Camry sedan at lower prices to compete with Hyundai’s Sonata and the increasingly stiff competition in the mid-size sedan segment. Camry’s market share in the segment has sunk to 13.8%, down from 16.5% in 2010 and 18.8% in 2009.

Amtrak shuts down service....

so they can inspect potential damage to tracks along the East Coast.

Market Update following Earthquake...

Stocks give up a few points, but mostly show little reaction to the East Coast earthquake.

Dow +175
Nas +61
S&P +21

How about an earthquake rally!!!

5.8 magnitude Earthquake strikes in Mineral, Virginia, SW of DC area.

What was that????

A mini Earthquake just happened....Wow!!!

Noon Update....

Stocks are broadly higher as Banks (minus BAC) move higher along with commodities and technology.  Gold and silver selling off slightly.

Dow + 197
Nas +55
S&P +22


Also, the Volatility Index is falling below 40 to 38.68.  The VIX is a reading of fear in the market.  Typically the Vix sits near 20, but in the last few weeks it has spiked above 40.  Spikes above 40 have historically indicated that fear is high...a possible time to buy??

Looking for a Buy Signal???

Look for the S&P 500 to break above last resistance level of 1200....

A rise in the S&P would probably be accompanied by a selloff in Gold below previous support of 1725.

New Home Sales Slide, Inventories Remain Manageable...

New home sales decreased for the third consecutive month. Sales fell from a downwardly revised 300,000 (from 312,000) in June to 298,000 in July. New home sales were expected to increase to 310,000.

Inventories remained at a 6.6 months supply. The total number of homes for sale fell slightly from 166,000 in June to 165,000 in July, reaching a new historical low. With the number of homes currently under construction in a steady decline, inventory levels should fall regardless if sales pick up.

Perfect World shares climb....

Chinese online-game developer Perfect World (PWRD +14.2%) jumps after reporting a solid Q2. Profit rose 61% on strong online revenue growth and improved cost controls, as efforts put in place last quarter to retool its strategy begin to bear fruit. Separately, ThinkEquity and CLSA both upgrade the shares.

FDIC: "Problem Bank List" declines....

As per the FDIC the second quarter “Problem Bank List” declined for the first time since 2006. Because of the lower number of expected bank failures, the FDIC deposit insurance fund was positive for the first time in two years.

Net income at the country’s bank rose 38% to $28.8 billion from a year earlier, the eighth consecutive quarterly improvement as results were boosted by a seventh consecutive drop in provisions for loan loss reserves. Charge offs declined by 42%.

The significance behind this data is huge.

In order to have a recovery, the banking system must recover first. The regulatory environment is extraordinary harsh, where the mantra is find any and all issues and force banks to reserve or charge it off.

10:00 am update....

Markets are strengthening...

Dow +114
Nas +32
S&P +11

Bank of America continues Freefall....

The stock is down another 30 cents to $6.12 this morning.



General Dynamics wins contract...

General Dynamics Corp. (GD). The company has won a U.S. Air Force contract worth up to $900 million to supply a worldwide military broadcast service with new hardware, the Defense Department said on Monday.

Today's Upgrades and Downgrades...

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Tuesday morning.


Aetna Inc. (NYSE: AET) Raised to Buy at Jefferies.
AMR Corp. (NYSE: AMR) Raised to Neutral at BofA/ML.
Archer Daniels Midland Company (NYSE: ADM) Started as Equal-Weight at Barclays.
Arcelor Mittal (NYSE: MT) Cut to UNderperform at BNP Paribas.
Bunge Limited (NYSE: BG) STarted as Overweight at Barclays.
Cincinnati Financial Corporation (NASDAQ: CINF) Maintained Underperform as Bear of the Day at Zacks.
Coach Inc. (NYSE: COH) Raised to Buy at Jefferies.
Expedia Inc. (NASDAQ: EXPE) Started as Neutral at Credit Suisse.
Fastenal Company (NASDAQ: FAST) Raised to Outperform as Bull of the Day at Zacks.
Human Genome Sciences Inc. (NASDAQ: HGSI) Started as Buy at Brean Murray.
Insight Enterprises, Inc. (NASDAQ: NSIT) Reiterated Buy as Value at Zacks.
Juniper Networks, Inc. (NYSE: JNPR) Raised to Outperform at Morgan Keegan.
Kimberly-Clark Corporation (NYSE: KMB) Raised to Equal-Weight at Barclays.
Priceline.com Incorporated (NASDAQ: PCLN) Started as Outperform with $720 target at Credit Suisse.
Ryland Group Inc. (NYSE: RYL) Raised to Neutral at Credit Suisse.
US Airways Group, Inc. (NYSE: LCC) Raised to Buy at BofA/ML.
Sanderson Farms, Inc. (NASDAQ: SAFM) Raised to Neutral at JPMorgan.
Walgreen Co. (NYSE: WAG) Cut to Underweight at Barclays.

Apple starts manufacturing cheaper iPhone....

Apple Inc. (AAPL). Asian suppliers to Apple have begun manufacturing a lower-priced version of its hot-selling iPhone 4 with a smaller 8 gigabyte flash drive, according to two people with knowledge of the matter.

Stocks open higher....

Dow +37
Nasdaq +10
S&P +3

Futures were indicating a much higher open.  Obviously traders are selling into any strength.

Gold ETF is now larger than S&P Spiders...

OK....if this isn't a red flag.  The value of the Gold ETF (GLD) has just surpassed the value of the S&P ETF (SPY).

S&P replaces president after U.S. downgrade...

Standard & Poor's said its president is stepping down, capping two weeks of controversy following the rating agency’s downgrade of U.S. government debt on Aug. 5 that sparked a row with the Treasury.

So...is S&P going to reinstate the AAA rating???

China now the largest PC Market....

According to IDC, China surpassed the U.S. as the world's largest PC market in Q2. Strong PC demand in emerging markets has buoyed Intel (INTC) and Microsoft (MSFT) this year, helping offset weakness in the U.S. and Europe. Though in Microsoft's case, widespread piracy limits the profitability of the Chinese market.

Premarket Movers....

Premarket gainers: PMC +38%. PANL +28%. MPEL +10%. OCR +9%. LLYG +7%. ERIC +4%. ARMH +4%. UBS +3%. SNY +3%. GSK +3%. SODA +3%. SINA +3%. ALU +3%. AMR +3%. NVS +3%.


Losers: TSL -7%. GSS -5%. GFI -4%.

Crude rises...

Crude rises amid resistance from government loyalists in Tripoli against the rebel forces, characterized by the public appearance of Muammar Gaddafi's son Saif al-Islam, whom the insurgents said they had captured. Brent crude +0.2% to $108.60 and WTI +1% to $85.30.

Today's Upgrades and Downgrades....

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Monday morning.


Agrium Inc. (NYSE: AGU) Cut to Underperform at BofA/ML.
Intrepid Potash, Inc. (NYSE: IPI) Cut to Neutral at BofA/ML.
Newmont Mining Corp. (NYSE: NEM) Raised to Buy at Citigroup.
OmniVision Technologies (NASDAQ: OVTI) Reiterated Buy with $38 target at Canaccord Genuity.
PMI Group, Inc. (NYSE: PMI) named as Bear of the Day at Zacks.
Seattle Genetics Inc. (NASDAQ: SGEN) Reiterated Sell with $10 target at Canaccord Genuity.
SLM Corporation (NYSE: SLM) Raised to Outperform at Credit Suisse.
SunPower Corporation (NASDAQ: SPWRA) Raised to Hold at Auriga.
Toyota Motor Corporation (NYSE: TM) Raised to Outperform as Bull of the Day at Zacks.
Under Armour, Inc. (NYSE: UA) Started as Buy at Canaccord Genuity.
Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) Raised to Overweight at Piper Jaffray.

Perrigo Holds up Well....

Shares of Perrigo (PRGO) continue to hold up well in an awful market.  The stock is currently up $1.13 to $86.30 and seems to have strong support at the $85 level.  This would be a good one to own if / when the market rebounds.

Bank of America continues to slide....

The slide in Bank of America (BAC -6.1%) continues, now trading at $6.55. Low print in this bear market: $6.31. Low close: $6.51. Other banking shares have given up sharp early gains, but remain slightly higher to moderately lower.

Market trades back down after strong open....

After the Dow gapping up nearly 170 points, we are now back to unchanged on the day....My guess is Margin calls are putting pressure on the market.  Typical Margin call deadlines are 11:45 am and 2:30 pm.

If we can get past 2:30 pm today with a gain, that at least prevets further margin call pressure tomorrow.

Gold Move Parabolic....

These kind of panic moves usually end badly for those who "invest" in them.  Let's keep an eye on this chart. 

Morning Movers.....

Accretive Health Inc. (AH) declined 2.1 percent to $28. The Chicago-based company that helps hospitals collect medical bills from patients reported second-quarter earnings minus some items of 12 cents a share, beating the average estimate of five analysts of 10 cents a share, according to Bloomberg data.

Capital One Financial Corp. (COF) rallied 3.1 percent to $42.10. The McLean, Virginia-based lender that acquired ING Direct USA in June, agreed buy HSBC Holdings Plc’s U.S. credit card division for about $32.7 billion. Capital One said the deal will add to earnings in 2013.

Cree Inc. (CREE) jumped 10 percent to $32.52. The maker of energy-efficient lighting posted fourth-quarter adjusted earnings that exceeded the average analyst projection, data compiled by Bloomberg show.

Macy’s Inc. (M) gained 4.2 percent to $26.50. The second-biggest U.S. department-store chain reported quarterly earnings that beat analysts’ estimates and boosted its full-year profit forecast as sales increased faster than the retailer expected.

OpenTable Inc. (OPEN) gained 5 percent to $63.35. The online restaurant-reservation service was raised to “buy” from “hold” at Citigroup Inc. analyst Mark S. Mahaney, who cited an attractive valuation and the company’s prospects for growth and profitability.

Pegasystems Inc. (PEGA) : The developer of customer relationship management software reported second-quarter earnings that exceeded the average analyst projection, data compiled by Bloomberg show.

Polo Ralph Lauren Corp. (RL) climbed 10 percent to $132.26. The clothing retailer reported first-quarter earnings of $1.90 a share, exceeding analysts’ estimate of $1.47 on average.

SunPower Corp. (SPWRA) : The second-largest U.S. solar panel said third-quarter earnings and sales will be lower than the average analyst estimate.

Walt Disney Co. (DIS) slid 4.3 percent to $33.20. The world’s biggest theme-park operator posted third-quarter studio revenue of $1.62 billion, compared with the average analyst estimate of $1.83 billion.

Disney Beats, but uncertain on Outlook....

Walt Disney Co. (DIS). The company’s quarterly results surpassed cautious Wall Street expectations on Tuesday, but the media and entertainment giant now has to grapple with an uncertain outlook for consumer spending. Disney posted net income of $1.48 billion or 77 cents per share, versus $1.33 billion or 67 cents a year earlier.

Good Morning....Futures Lower....

at 9:15 am

Dow Futures -256
Nasdaq -48
S&P -27

Markets Close MUCH Higher....

Dow +429.92
Nas +124.83
S&P +53.07

Nice closing rally...kind of erases 2/3rds of yesterdays losses.  Tomorrow is an important day.  We need a follow-up rally!!!

Traders sell into Fed news.....

Immediately following the Fed announcement, the Dow was up 180 points, 30 minutes later the Dow is down 108.

It will be an interesting close.  We have afternoon margin calls due at 3 pm....after that, hopefully we will gain some footing.

2:15 pm: Fed Leaves Rates Unchanged....

In an unprecedented move they are saying that they are not intending on raising rates until mid 2013.  Kind of an extreme statement...ultimately good for stocks, but may get a bad reception in the near term.

Expect Margin Calls.....

Market will undoubtedly face some selling pressure between 11 am and Noon today....

Keep an Eye on Gold and Silver....

Silver started selling off last Thursday...a fall in gold would be a key sign of a shift of money looking for bargains in stocks....

Analyst Upgrades and Downgrades....

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Tuesday morning.


AECOM Technology Corp. (NYSE: ACM) Reiterated Buy with $33 target at Argus.
American International Group, Inc. (NYSE: AIG) Raised to Market Perform at KBW.
Berkshire Hathaway Inc. (NYSE: BRK-A) Raised to Overweight at Barclays.
Boston Scientific (NYSE: BSX) Raised to Outperform as Bull of the Day at Zacks.
CBS Corp. (NYSE: CBS) Raised to Buy with $31 target at Argus.
First Solar Inc. (NASDAQ: FSLR) Maintained Buy but cut target to $140 at Argus.
Humana Inc. (NYSE: HUM) Raised to Buy at Goldman Sachs.
McDonald’s Corporation (NYSE: MCD) Raised to Conviction Buy List at Goldman Sachs.
Merck & Co. Inc. (NYSE: MRK) Raised to Buy at Jefferies.
Pfizer Inc. (NYSE: PFE) Raised to Buy at Goldman Sachs.
PPG Industries, Inc. (NYSE: PPG) Reiterated Buy as Value at Zacks.
StanCorp Financial Group (NYSE: SFG) Cut to Underperform as Bear of the Day at Zacks.
Tyco International Ltd. (NYSE: TYC) Raised to Buy at Goldman Sachs.
Wells Fargo & Company (NYSE: WFC) Raised to Outperform at FBR.
Wynn Resorts Ltd. (NASDAQ: WYNN) Raised to Hold at Citigroup

All Eyes on the Fed....

The FOMC is due to meet today amid calls for the Fed to take action over slowing growth, especially after yesterday's stock plunge. However, with interest rates at zero to 0.25% for nearly three years and $2.3T of bond buying not spurring growth, there doesn't appear to be a huge amount the Fed can do. One option would be to replace shorter-term securities with longer maturities to reduce rates on longer-term debt. And if the Fed is considering QE3, it's not expected to announce it today.

Bring Back the Uptick Rule!!!!

With the Uptick Rule in place, shorting the market was much more difficult.  The SEC completely dropped the ball by allowing these ETF companies talk them into getting rid of the rule.  The result...a casino with no protection on the downside.

Medicis cuts outlook.....

Medicis Pharmaceutical Corp. (MRX). The company posted second-quarter profit in line with estimates and cut its full-year outlook. Medicis cut full-year earnings to $2.25-$2.56 a share from earlier view of $2.45-$2.60 a share. April-June net income fell to $28.8 million, or 43 cents a share, from $36.5 million, or 56 cents a share, a year ago.

Carrizo Oil and Gas Profit Doubles....

Carrizo Oil & Gas Inc (CRZO). The natural gas-focused energy company’s second-quarter profit rose more than fourfold helped by higher production and increase in oil prices, and said it expects 2011 production to be at par or above its prior view. Net income rose to $7.7 million, or 20 cents a share, from $1.8 million, or 5 cents a share, a year ago.

Fossil Q2 profit beats Street, but Guides Lower...

The company which sells its namesake brand as well as Michael Kors and Armani quarterly profit beat market estimates on increased sales of its watches and leather products, but the watchmaker forecast a third-quarter profit below expectations.

Fossil trading at $78 premarket down from a close of $93.  Fossil was IBD's number 2 rated stock.

Dish Network Q2 profit misses on subscriber losses

The second-largest U.S. satellite TV provider’s quarterly profit fell short of market estimates as the satellite-TV provider lost subscribers, hurt by increased competition.

Direct TV and Verizon's FIOS taking a toll on DISH.....

Futures have reversed overnight....

At 11 pm last night, the Dow Futures were down 280 points....as I write this Dow Futures are up 108 points....

Market Breadth from Yesterday....

This is about as ugly as it gets....Check out the New Lows on the NYSE (1,306).  I have been keeping track of Market Stats for 15 years, and have never seen anything close to that.  Selling volume suggests that yesterday was a complete panic selloff. 

Stocks to watch....

Apple Inc. (AAPL). The iPhone-maker said on Saturday its App Store reached landmark 10 billion downloads, further underlining the lead of the company in mobile online software battle, a counter on front page of the store showed.

Halliburton Co. (HAL). The world's second-largest oilfield services, on Monday reported higher fourth-quarter profit as drilling activity in its North American market remained strong. The company said its net profit rose to $605 million, or 66 cents per share, from $243 million, or 27 cents per share, a year earlier.

Premarket Movers.....

Gainers

Clinical Data Inc.’s (CLDA 25.00, +9.97, +66.33%)   shares rallied 44% after the company’s antidepressant received approval Friday from the U.S. Food and Drug Administration.

Genoptix Inc. (GXDX 24.88, +5.12, +25.91%) shares rose 26% after Swiss drug maker Novartis AG (NVS 56.70, +0.28, +0.50%) said it would buy the cancer-diagnostic specialist for $470 million.


Nvidia Corp.  (NVDA 23.05, +0.83, +3.74%) shares added 5% after Barron’s said the chip maker’s stock might rise as much as 80% in the next year.

Smurfit-Stone Container Corp. (SSCC 35.10, +7.58, +27.54%) shares climbed 27% after Rock-Tenn Co. (RKT 60.17, +2.99, +5.23%) said it would buy the container-board producer for $3.5 billion.


Decliners


RadioShack Corp. (RSH 16.09, -1.52, -8.63%) shares fell 12% after the consumer-electronics retailer said Chief Executive Officer Julian Day would step down in May. Read more about RadioShack.

World Wrestling Entertainment Inc. (WWE 11.95, -1.55, -11.48%) shares lost 11% after the producer of wrestling matches late Friday projected fourth-quarter earnings below expectations.

Oracle breaks higher....

GE looks to breakout on positive earnings...

General Electric Co. (GE). The company on Friday said profit rose 51 percent, topping Wall Street's expectations, helped by lower loss rates at its finance arm and an unexpected 1 percent rise in revenue. The largest U.S. conglomerate said on Friday fourth-quarter net income came to $4.5 billion, or 42 cents per share, up from $3 billion, or 28 cents per share, a year earlier.

Capital One beats estimates...

Capital One Financial Corp. (COF). The company’s fourth-quarter profit rose 85 percent to $697 million, beating estimates, as losses on bad loans fell and consumers slowly started to take out new loans. The company said it earned $1.52 per share. That compared with a year-ago profit of $376 million, or 83 cents per share.

BAC continues to report losses...

Bank of America Corp. (BAC). The largest bank by assets, reported a second straight quarter loss, driven by a $2 billion writedown of its mortgage business. The bank posted fourth-quarter net loss of $1.57 billion, or 16 cents a share, compared with a loss of $5.2 billion, or 60 cents a share, a year earlier.

ISRG surges...

Intuitive Surgical Inc. (ISRG). The company on Thursday reported far better-than-expected fourth-quarter profit on strong demand for its da Vinci surgical robots and an increase in procedures using the high priced systems. The company said net profit rose 56 percent to $121.2 million, or $3.02 per share, from $77.5 million, or $1.95 per share, a year ago. The company forecast 2011 revenue growth of 16 percent to 20 percent and procedure growth of 25 percent to 28 percent.

Google blows past estimates....

Google Inc. (GOOG). The company’s co-founder Larry Page will take over as CEO from Eric Schmidt, a surprise move to make the company more nimble at a time when competition heats up with fast-growing rivals like Facebook. The news came as Google reported fourth-quarter earnings and revenue that blew past expectations. Net income, excluding items, of $8.75 a share outstripped Wall Street's average forecast of $8.10. Net revenue, excluding fees paid to partner websites, was $6.37 billion.

Skyworks continues to roll....

Skyworks Solutions Inc. (SWKS). The cellphone chipmaker on Thursday reported better-than-expected first-quarter results and forecast second-quarter above market estimates on firm demand for smartphones, tablets and a shift to 4G. The company reported net income of $60.9 million, or 32 cents a share, from $28 million, or 16 cents a share, a year ago. The company forecast second-quarter earnings of 38 cents to 40 cents a share, excluding items, on revenue of $310 million to $320 million.

Rumors swirl on Radware (RDWR)

We've heard this story before, but rumors are out there that Radware (RDWR) will be taken out very shortly.  The stock is up 4-5 points in the last three days, after holding 20% gains when these rumors first surfaced on Sept 14.

The stock is currently at $39.10  Rumored take out price is $47.

Today's Upgrades and Downgrades...

Airgas Inc. (NYSE: ARG) Raised to Outperform at Baird.


Bank of Ireland (NYSE: IRE) Cut to Underweight at Morgan Stanley.

Broadcom Corporation (NASDAQ: BRCM) Started as Neutral at Nomura; Raised to Positive at Susquehanna.

Calpine Corporation (NASDAQ: CPN) Started as Outperform at Oppenheimer.

Celgene Corporation (NASDAQ: CELG) Started as Outperform at Wells Fargo.

CIT Group, Inc. (NYSE: CIT) Started as Neutral at Credit Suisse.

DryShips, Inc. (NASDAQ: DRYS) Raised to Outperform at Credit Suisse.

Gilead Sciences Inc. (NASDAQ: GILD) Started as Outperform at Wells Fargo.

Intel Corporation (NASDAQ: INTC) Started as Buy at Nomura.

Lululemon Athletica (NASDAQ: LULU) Raised to Hold at Jefferies.

Marvell Technology Group Ltd. (NASDAQ: MRVL) Started as Neutral at Nomura.

NVIDIA Corporation (NASDAQ: NVDA) Started as Neutral at Nomura.

Procter & Gamble (NYSE: PG) Raised to Buy at Goldman Sachs.

QUALCOMM Incorporated (NASDAQ: QCOM) Started as Neutral at Nomura.

Research in Motion Ltd. (NASDAQ: RIMM) Reiterated Outperform and target raised to $75 at Raymond James.

Texas Instruments Inc. (NYSE: TXN) Started as Reduce at Nomura.

Latest Short Interest - from Bloomberg

• Short Interest in the SP500 for the period ending Nov. 30th declined 3.51%.

The largest decreases came from Healthcare (dn. 7.68%) Consumer Discretionary (dn. 7.09%) and financials (dn. 6.35%)

3 sectors showed an increase in Short Interest, IT (+2.85%) Telecom (+2.11%) and Industrials (+0.19%)

• Largest Increases: KSS (+157.9%) RSG (+89.9%) INTC (+80.97%) AIZ (+72.21%) PWR (+63.79%) IR (+63.34%) COL (+62.87%) RF (+49.5%) HAR (+45.91%) MJN (42.81%)

• Largest Decreases: APA (dn. 64.08%) MYL (dn. 61.26%) PGR (dn. 34.95%) APC (dn. 30.2%) MHP (dn. 29.8%) MAT (dn. 29.17%) ED (dn. 28.88%) BTI (dn. 28.75%) NEE (dn. 28.48%) AEP (dn. 27.37%)

Green Mountain Coffee warns...

Green Mountain Coffee Roasters (GMCR 31.98, -5.44, -14.54%)  declined 15% in the premarket. The Waterbury, Vt., coffee producer issued a softer profit forecast and withdrew its shipment guidance for its K-Cup coffee packs.

Earnings Next Week...

Corporate Events Calendar – Week of Mon Dec 13


• Mon Dec 13: analyst meetings (Air Liquide, BCR, EW); sales (GWW)

• Tues Dec 14: earnings before the open (BBY, FDS, SAFM); earnings after the close (HOV); analyst meetings (BMC, BRCM, CRL, FSLR, GE, KO, NVS, ONXX, PPG)

• Wed Dec 15: earnings before the open (JOYG); earnings after the close (NDSN); analyst meeting (AVT, CBR, DAL, DG, DGI, DHR, HON, LII)

• Thurs Dec 16: earnings before the open (ABC, ATU, DFS, FDX, GIS, PIR, RAD); earnings after the close (ACN, LUB, ORCL, RIMM, SMOD, TTWO, ZQK); analyst meetings (ATHN, CNC, IRDM, PG)

• Fri Dec 17: analyst meetings (CCE, ITT, PNR)

Latest Fund Flows

Fund Flows – from JPMorgan’s E Beinstein - For the week ending 12/8/10, all fund categories experienced inflows; HY, Equity, and Money Markets significant ones. HG had inflows of $400mn this week vs an inflow of $56mn last week. The last outflow was during the week of 11/3/10 of -$258mm. HY funds had inflows of $1bn this week vs an outflow of - $1.2bn last week. Equity funds had inflows of $8bn this week (3rd largest inflow this year) vs an outflow of -$1.6bn last week. Money markets had an inflow of $25bn this week (largest this year) vs an outflow of -$2.8bn last week.

Stocks to Watch

• Apple Inc. (AAPL). The component suppliers for the PC maker’s iPad are gearing up for a new round of production in the first quarter, sources said on Friday, with one saying the product will be a revamp of the popular tablet computer including front- and back-mounted cameras.

• Bank of America Corp. (BAC). The bank and financial holding company restarted about 16,000 home foreclosure cases across the United States on Monday, the Wall Street Journal said.

• Borders Group Inc. (BGP). The bookseller said on Thursday it is trying to obtain new financing to avoid violating the terms of its credit agreements early next year.

• Cablevision Systems Corp. (CVC), F5 Networks Inc (FFIV), Netflix Inc (NFLX) and Newfield Exploration Co (NFX). The four companies will join the benchmark S&P 500 index after the closing bell on Dec. 17, S&P said in a statement on Thursday. Netflix, F5 Networks and Newfield Exploration will replace Office Depot Inc (ODP), The New York Times Co (NYT) and Eastman Kodak Co (EK) in the S&P 500. Cablevision Systems will replace King Pharmaceuticals Inc (KG) as King Pharma's takeover by Pfizer Inc (PFE) is expected to be completed soon, S&P said.

• Cisco Systems Inc. (CSCO). The network equipment maker company’s CEO John Chambers on thursday said, the company would likely gain share in the overall market, including the public sector, where it suffered a fall in orders last quarter.

• Green Mountain Coffee Roasters Inc. (GMCR). The coffee company gave a weak first-quarter profit outlook due to higher marketing costs and an expected volatility in coffee costs, becoming the latest coffee company to take a hit due to soaring prices. The company, which raised coffee prices in October in response to rising coffee costs, expects a first-quarter adjusted profit of 14-18 cents a share.

• JPMorgan Chase & Co. (JPM). The bank is hiring 100 corporate bankers outside the United States, in a bet that loan demand in the rest of the world will grow faster than in the bank's home base.

• Microsoft Corp. (MSFT). The world's largest software company said November month was the best on record for xbox sales, helped by Kinect. 1.37 million of xbox consoles were sold, the company said. Separately, Microsoft, Adobe (ADBE) and other U.S. software manufacturers are pressing the Obama administration for a deal with China next week that could spur billions of dollars of additional U.S. software exports, an industry official said on Thursday.

• Sony Corp. (SNE). The electronic equipment maker on Friday said it shipped more than 5.5 million copies of Gran Turismo 5, the latest version of its motor-racing game franchise, in its first 12 days on sale.

• United Technologies Corp. (UTX). The diversified manufacturer set a wide 2011 profit target range, warning that a fluctuating euro and uncertain global economic recovery could hamper it from hitting its long-term earnings growth target of 10 percent or more. The company expected a profit of $5.05 to $5.35 per share in 2011.

FDIC keeps Insured level at $250K

Deposit insurance gets permanent increase – reconciliation conference members on Tues agreed to permanently increase deposit insurance for bank customers (from $100K to $250K); the move was unexpected. 

This move could hurt stocks....

PIMCO likes stocks...

PIMCO’s Gross says his firm is moving into equities - "We are making a move into equities...we are recognizing the global market place is not just bond related,"; Gross says equities look attractive - "Corporate equities, however, in terms of valuation are selling at very low (price-earnings) ratios.”