Here's why Netflix is up...

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


Netflix is up 2.69 to 215.80 today.

Express Scripts - Medco Health Merger postponed...

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

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

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

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

Thank you Wedbush!!!  This is helpful. 

Government regulations a problem....

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

At 11:00 am....

The market continues to be weak...

Dow -252
Nas -55
S&P -27

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

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

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

Honda issues another recall...

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

Today's Upgrades and Downgrades...

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


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

Netflix bouncing this morning...

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

It is currently climbing +2.26 to 215.30

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

A lovely open....

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

Dow -265
Nas -50
S&P -29

Starbucks expanding in China...

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

Dendreon cuts ties with Glaxo...

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

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

Dell and Baidu team up...

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

Amazon targets Apple...

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

Crude Falling....

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


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


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

Treasury Rates continue to fall...

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

Welcome Back my Friends....

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


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

Market recap...

Traders bailed out of stocks ahead of the long weekend, spooked by the no-new-jobs report. Cries for QE3 mount, but no risk-on trade ever took root. Banks were hit hard on news of FHFA suits over mortgage fraud. And Europe continues to percolate. Gold surged nearly $50, and Treasury yields plunged to historic closing lows. Only seven S&P stocks posted gains.  

Kind of disappointing that we fell back below key level of 1200 on the S&P 500.  Hopefully it was just reluctancy to hold over the long weekend and not the start of a new move back down.

Dow -253 to 11240
Nas -65 to 2480
S&P -30 to 1174


Monday is a Holiday.  Have a nice long weekend!!!

Dish may lauch streaming movie service...

Dish Network (DISH -2.4%) bounces off lows on reports that the company plans to launch a Blockbuster streaming service similar to rival Netflix (NFLX -8.3%), the timing designed to coincide with upcoming Netflix price hikes. The offering may include movies from Starz (LSTZA -1.5%), which halted negotiations with Netflix to renew its online viewing deal.

This ought to help those CD rates...

New records are set in the Treasury bond market: 10-year yield settles at a record low close of 1.996%, 5-year sees record low close of 0.87%.

Netflix and Starz deal may not be dead...

BTIG's Richard Greenfield expects Netflix (NFLX -9.1%) and Starz (LSTZA -1.2%) to come back to the negotiating table and eventually sign a deal: "Why does Netflix want to let someone else have access to Starz’s unique movie content, and can anyone really pay Starz as much as Netflix... Stay tuned, we expect there is more to this story..."

At 3 pm....

In the last hour, the market has taken a turn lower.  It looks like program selling as basically every group is lower.

Dow -258
Nas -72
S&P -31

Noon update....

Stocks are slowly climbing back from an earlier 240 point drop on the Dow:

Dow -180
Nas -42
S&P -21

Gold is up $47 to to 1875
Oil is down to $87 a barrell

A few of the stocks we have been watching are up again:

MAKO Surgical (MAKO) is up 1.14 to 37.61
Hansen Natural (HANS) is up 1.26 to 85.36
Interdigital (IDCC) up 0.25 to 69.56
Jazz Pharmaceutical (JAZZ) is up 0.70 to 42.46

Bond Market closes at 1 pm today....

However, most traders are already gone for the weekend.

Nobody wants RIMM's tablet...

Research In Motion (RIMM). Big box retailer Best Buy (BBY) has slashed up to $150 off the U.S. price tag for RIM’s PlayBook tablet computer for the Labor Day weekend.

Fed wants to know BAC's plans...

Bank of America Corp. (BAC). The U.S. Federal Reserve has asked the bank to show what measures it could take if business conditions worsen, the WSJ said, citing people familiar with the situation.

Stock Buybacks...

These are just a few of the companies that have announced stock buyback programs...

Lowe’s Companies, Inc. (NYSE: LOW) authorized for up to $5 billion over the next two to three years and its market capitalization is roughly $25 billion.

CVS Caremark Corporation (NYSE: CVS) announced a plan of up to $4 billion on top of a prior plan, and its market cap is close to $48 billion.

Celgene Corporation (NASDAQ: CELG) announced a buyback of up to $2 billion against a market cap of close to $27 billion.

Intuit Inc. (NASDAQ: INTU) announced a share buyback of up to $2 billion against a market cap of almost $13 billion at the time.

Discovery Communications, Inc. (NASDAQ: DISCA) approved a new $1 billion share buyback plan early in the month and its market cap was $15 billion.

Harris Corporation (NYSE: HRS) said early in August that a plan of up to $1 billion in shares and its market capitalization was a mere $4.4 billion.

Lockheed Martin Corporation (NYSE: LMT) announced a buyback in August of up to $1 billion on top of a prior buyback plan; its market cap is $24 billion.

AmerisourceBergen Corporation (NYSE: ABC) completed a prior $500 million plan and authorized a new plan of up to $750 million against a $9.9 billion market cap.

Alpha Natural Resources, Inc. (NYSE: ANR) added $600 million to a prior buyback plan against a market cap of about $7 billion.

Avnet Inc. (NYSE: AVT) announced a buyback plan of up to $500 million versus a market cap of $4.1 billion.

Southwest Airlines Co. (NYSE: LUV) approved a buyback plan of up to $500 million against a market cap of $6.6 billion.

St. Jude Medical Inc. (NYSE: STJ) announced in early August that it would repurchase up to $500 million versus a market cap of $13.8 billion.

Interpublic Group of Companies, Inc. (NYSE: IPG) expanded its buyback plan with up to $450 million more against a market cap of about $4.15 billion.

Forest Laboratories Inc. (NYSE: FRX) agreed to repurchase another $350 million of common stock from Morgan Stanley (NYSE: MS), just over 3% of the company’s value at the time versus a $9.55 billion market cap.

Cliffs Natural Resources Inc. (NYSE: CLF): up to 4 million shares, close to $300 million at the time, versus a market cap of nearly $11 billion.

Cognizant Technology Solutions Corp. (NASDAQ: CTSH): up to $300 million on top of a prior plan versus a $19 billion market cap.

KBR, Inc. (NYSE: KBR) close to $300 million (10 million shares) versus a market cap of about $4.5 billion.

Newell Rubbermaid Inc. (NYSE: NWL): up to $300 million and the market cap was about $3.8 billion.

Valeant Pharmaceuticals International, Inc. (NYSE: VRX): up to $300 on top of a prior plan versus a market cap of $13+ billion.

Akamai Technologies Inc. (NASDAQ: AKAM): up to $250 million more in an existing buyback program (new total was up to $400 million) against a market cap of $4.1 billion.

AOL Inc. (NYSE: AOL): up to $250 million versus a market cap of almost $1.3 billion.

Dolby Laboratories, Inc. (NYSE: DLB): up to an additional $250 million versus a market cap of about $3.6 billion.

Urban Outfitters, Inc. (NASDAQ: URBN) was close to $250 million more (10 million shares) in addition to a prior plan versus a market cap of $4.1 billion.

At 10:00 am.....

The market is selling off after the lame employment numbers....

Dow -209
Nas -41
S&P -22 to 1182

Let's see if we can get the S&P back above 1200 before the close.

Today's upgrades and downgrades...

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

American Capital Agency Corp. (NASDAQ: AGNC) Cut to Neutral at BofA/ML.
Annaly Capital Management, Inc. (NYSE: NLY) Cut to Neutral at BofA/ML.
Cabela’s, Inc. (NYSE: CAB) named as Bull of the Day at Zacks.
Canadian Pacific Railway Limited (NYSE: CP) Cut to Neutral at Credit Suisse.
Chimera Investment Corporation (NYSE: CIM) Cut to Neutral at BofA/ML.
Education Management Corporation (NASDAQ: EDMC) Raised to Equal-Weight at Morgan Stanley.
FedEx Corporation (NYSE: FDX) Cut to Neutral at Credit Suisse.
First Solar Inc. (NASDAQ: FSLR) Reiterated Buy with $140 target at Argus.
Goldman Sachs Group. Inc. (NYSE: GS) Maintained Outperform but cut estimates by Credit Suisse.
Hatteras Financial Corp (NYSE: HTS) Cut to Neutral at BofA/ML.
Invesco Mortgage Capital Inc. (NYSE: IVR) Cut to Neutral at BofA/ML.
Jos. A Bank Clothiers Inc. (NASDAQ: JOSB) Called the value stock of the day at Zacks.
Liquidity Services, Inc. (NASDAQ: LQDT) Raised to Outperform at Oppenheimer.
McDermott International (NYSE: MDR) named as Bear of the Day at Zacks.
Old Dominion Freight Line Inc. (NASDAQ: ODFL) Raised to Outperform at Credit Suisse.
Research in Motion Ltd. (NASDAQ: RIMM) Maintained Neutral but raised target to $37 from $25 at BofA/ML.
Saks Inc. (NYSE: SKS) Maintained Buy with $14 target at Argus.
Toronto Dominion Bank (NYSE: TD) Raised to Outperform at Credit Suisse.
United Parcel Service, Inc. (NYSE: UPS) Raised to Outperform at Credit Suisse.

This is funny to me....

U.S. securities regulators have taken the unprecedented step of asking high-frequency trading firms to hand over the details of their trading strategies, and in some cases, their secret computer codes.

The clowns running the SEC are so far behind the curve.

Jobs report not good...

 Aug. Nonfarm Payrolls: Unchanged vs. +75K expected, +85K prior (revised from +117K). Unemployment remains at 9.1%, as expected. June growth was also revised to +20K from +46K.

The report shows a dramatic slowdown in private-sector hiring to be the main culprit. While public-sector job cuts fell to 17K in August from 70K in July, growth in private sector payrolls plummeted to 17K in August from 156K in July.

Netflix may lose STARZ content....

After the bell, STARZ has announced that it will cease licensing content to Netflix at the end of its current deal in February, 2012.  I never did understand why STARZ would license their content to NFLX...especially at a set fee.  It only makes sense if STARZ receives some sort of royalties.

This is a HUGE loss for Netflix.  The stock is down 22 points postmarket to 209.

Market weakens ahead of Friday's jobs number...

No alarming selloffs, but traders lightened up on stocks as the day went on.

Closing numbers:

Dow -119 to 11493
Nas -33 to 2546
S&P -14 to 1204

Gold and Oil were basically unchanged.

A Tax on Fat People....

The country of Hungary introduces a "fat tax" on consumers buying food high in fat, salt and sugar in order to help cover health care costs. Der Spiegel reports the revenue-maker is also catching on with other European governments strapped for cash.

Maybe this would work for me...nah, probably not.

The coupon world has gone nuts!!!

I don't know if it's just me but I'm now getting an email about every five minutes having to do with coupons.
Groupon, Travelosity, Travelzoo, Amazon, Living Social are a few of the leading spammers.

Wouldn't be surprised to see Cosi close down...

Così, Inc. (NASDAQ: COSI - News), the restaurant company, today announced that its Board of Directors has appointed Chairman of the Board Mark Demilio, 55, as interim Chief Executive Officer of the Company following the resignation of James Hyatt, 54. Mr. Hyatt has resigned as Chief Executive Officer and President of the Company and as a member of the Board of Directors, effective immediately, to pursue another opportunity due to family considerations. He will remain an employee of the Company until September 23, 2011 in order to assist with the leadership transition.

Last Friday. the company received a delisting notice from Nasdaq.

The stock currently trades at 65 cents a share.  Here's the monthly chart showing the stock since it went public in 2004:

Mortgage Rates still low....

Mortgages rates remain near historic lows, according to Freddie Mac. The average rate on a 30-year fixed stayed level at 4.22%, and the 15-year fixed dropped 5 bps to 3.39%.

Chrysler outsells Toyota....

New Auto sales just out and Chrysler has outsold Toyota for the 3rd time in 4 months.

I have to say that I recently rented a Dodge Avenger (not by choice)...and I was impressed...nice car.

SAIC not looking good...

Shares of SAIC Inc. are down 1.98 to 13.02 after the contractor announced disappointing second-quarter results and its full-year outlook disappointed Wall Street expectations. The company cited tightening government budgets.

William Loomis, an analyst for Stifel Nicolaus, cut his rating for SAIC to "Hold" from "Buy," saying he was surprised to see the slowdown in business so early in the government spending cycle.

"We are concerned that when budget pressures increase over the next couple of years, it could add additional pressure to the business, resulting in lackluster earnings per share growth over the next couple of years," Loomis wrote in a note to investors.

Verizon raises its dividend...

Verizon Communications (VZ) raises its quarterly dividend 2.6% to $0.50/share. It's the 5th consecutive year the firm has boosted its payout, and brings the yield to 5.39%., based on the current price of 36.16.

Mastercard continues to look strong...

Shares of Mastercard (MA) continue to move higher.  The stock is up 2.20 to 331.90 so far today.  The previous high on the stock is 340.42, hit on August 3rd.

Here are a few stocks hitting New Highs....

These are weekly charts:

Autozone (AZO) +4.95 to 311.95

Coca-Cola (KO) +0.51 to 70.95

Kimberly Clark (KMB) +0.10 to 69.25

Bristol Myers (BMY) +0.25 to 30.00

MAKO resumes upward move...

MAKO lost its gains late yesterday, but today it is back up 1.61 to 37.51.  A close here would be an all-time closing high for the stock.

Goldman cuts jobs forecast...

Goldman is slashing its forecast for tomorrow's nonfarm payroll report to a gain of 25K jobs from one of 50K. The firm cites "evidence of weak hiring in July and August," including the M/M drop reported in today's ISM manufacturing data. On average, economists expect a gain of 93K jobs to be reported, down from 117K in July.

Here's a new one for you....

I just heard some analyst on CNBC say that Gold should move higher because we are coming up to the Indian wedding season.

OMG...

College Football kicks off this weekend....

Here's some exciting news for you:  The college football season kicks off on Saturday evening with two games:

No. 5 Boise State vs. No. 19 Georgia in Atlanta

No. 3 Oregon vs. No. 4 LSU in Dallas

Go Tigers!!!

Yawn....

Trading has slowed to a trickle.  Looks like traders are heading out of town for the Labor Day weekend.  There is an old Wall Street adage: Never short a dull market.  Well, today, so far, defintely qualifies as a dull market.  Looking forward to jobs number on Friday morning.  Don't expect much movement until then.

As of now:

Dow +11
Nas +3
S&P +1

Even Gold is unchanged.

Market starts to look tired....

After posting gains in 7 of the last 8 sessions, and making a 10% run over that time, the market is looking a bit tired to me.  Here is the chart on the S&P 500:



You can see that we are above the 1200 level which was the previous highs working off the August 9th bottom.  It's OK if we take a breather here, as long as we hold above the 1200 level.

Stocks higher after better than expected ISM number...

Stocks jump higher following the better-than-expected ISM print. August ISM Manufacturing Index: 50.6 vs. 49 consensus and 50.9 prior. Prices index 55.5 vs. 59 prior. Employment 51.8 vs. 53.5. Inventories 52.3 vs. 49.3. New orders 49.6 vs. 49.2.

Dow +66
Nas +17
S&P +5

Apple doubles iPad production...

Contract manufacturer Foxconn states that it expects to ship 20M iPad 2 units to Apple (AAPL) in Q3. That represents a major jump from Apple's calendar Q2, during which it sold 9.25M iPads - a figure that itself represented strong growth from calendar Q1.

Stocks have muted open...

At 9:55 am the markets have opened slightly lower.   ISM Manufacturing numbers come out at 10:00 am, so look for the market to react to those...

Dow -36
Nas - 3
S&P -1

Premarket movers...

Premarket gainers:

CIEN +14%. CTIC +10%. RBS +8%. CLWR +5%. RAD +5%. BCS +5%. NOK +4%. LYG +4%. JDSU +4%. MPEL +3%. WEN +2%. MGM +3%.


Losers:
 
DCTH -11%. SAI -9%. STD -3%. BK -3%.

Zumiez lowers estimates....

Zumiez Inc. (ZUMZ). The retail company forecast a third-quarter profit below Wall Street estimates, and posted market-lagging August same-store sales. The company expects to earn 37-39 cents a share in the third quarter. Second-quarter net income rose to $2.6 million, or 8 cents a share, compared with a loss of $1.2 million, or 4 cents a share, in the year-ago period.

Costco CEO to step down....

Costco Wholesale Corp. (COST). The company said its co-founder and CEO, Jim Sinegal, has decided to step down as CEO of the largest U.S. warehouse club, effective Jan. 1. Sinegal (75 years old) will be replaced by President and COO Craig Jelinek, Costco said on Wednesday. Costco reported an 11 percent rise in August same-store sales, or sales at stores open at least a year, helped by rising gasoline prices and currency benefits.

I was at Costco yesterday and I continue to be impressed at how well that company is run.

Stryker looks to expand business....

Stryker Corp. (SYK) said Wednesday it will buy Concentric Medical Inc., which makes devices that are used to remove blood clots from the brain, for $135 million in cash. 

Concentric Medical is based in Mountain View, Calif. Its devices are designed to be inserted into a blood vessel and then be threaded to the brain, where they can remove a blood clot. The clots can cause ischemic strokes. Concentric Medical's newest product is the Trevo Retriever, which is in clinical trials in the U.S. and was launched in Europe in 2010.

Stryker, of Kalamazoo, Mich., said it expects the deal to close during the fourth quarter, pending approval from regulators.

This is an interesting headline...

Amazon.com (AMZN) is reportedly offering to bring 7,000 jobs to California, in exchange for a delay in the implementation of a new state internet sales tax law. That's according to the Sacramento Bee.

The state of California had mandated that Amazon would have to start charging sales tax on all online transactions to customers who live there.  I think this has to be done in all states in order to even the score between online retailers and those who own the bricks and morter stores. Otherwise the unemployment rate is going to continue to grow.

Stocks finish higher....

but the tape was somewhat negative.  Several recent winners sold off as traders booked profits and moved to other names.  Tomorrow should be interesting.

Dow +53 to 11613
Nas +3 to 2579
S&P +6 to 1218

End of the month ....

Today is the last day of the month.  Looks like we are getting a little "window dressing" into the close.

With 15 minutes left:

Dow +79
Nas +5
S&P +1

Market turns negative....

As I thought earlier, this rally just didn't look right...too much selling going on this morning in the high beta names.  Hopefully we hold up into the close.

Dow -5
Nas -13
S&P -2

Hansen sells off on insider selling....

Shares of Hansen Natural (HANS -5.08 to 84.50) fall after SEC filings show insider selling in the last week while the stock was rising. Share are still up 10% over the last month and 61% for the year.

I find that insider selling has virtually no accuracy when looking for clues from insider action.  Why????  Because we have no idea why that insider is selling.

Market holding gains...

At noon the market is holding on to gains, however we are definitely seeing some weakness off of the open.  It looks like we need some sort of positive news to push this market higher.  It is clear that traders are a little nervous right here, considering we have rallied 10% off of the bottom hit on August 9.

Dow +66
Nas +8
S&P +8

Today's upgrades and downgrades...

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

Alcatel-Lucent (NYSE: ALU) Maintained Underperform and cut estimates at Credit Suisse.
Apollo Residential Mortgage, In (NYSE: AMTG) Started as Buy at Stifel Nicolaus; Started as Outperform at Credit Suisse.
BMC Software Inc. (NYSE: BMC) Started as Outperform at Wells Fargo.
Boston Properties Inc. (NYSE: BXP) Reiterated Buy with $120 target at Argus.
Citrix Systems, Inc. (NASDAQ: CTXS) Started as Outperform at Wells Fargo.
Corning Inc. (NYSE: GLW) Reiterated Buy with $28 target at BofA/ML.
Crawford & Co. (NYSE: CRD-B) Started as Outperform at William Blair.
Francesca’s Holdings Corporation (NASDAQ: FRAN) Started as Neutral at Goldman Sachs; Started as Buy at Jefferies; Started as Hold at Stifel Nicolaus.
Honda Motor Co., Ltd. (NYSE: HMC) Cut to Neutral at Credit Suisse.
Linear Technology Corporation (NASDAQ: LLTC) Maintained Underperform as Bear of the Day at Zacks.
Navigant Consulting, Inc. (NYSE: NCI) Raised to Outperform as Bull of the Day at Zacks.
Red Hat, Inc. (NYSE: RHT) Started as Outperform at Wells Fargo.
Steel Dynamics Inc. (NASDAQ: STLD) Cut to Neutral at Goldman Sachs.
Tesoro Corporation (NYSE: TSO) Raised to Outperform at RBC.
Toyota Motor Corporation (NYSE: TM) Cut to Neutral at Credit Suisse.
VMware Inc. (NYSE: VMW) Reiterated Buy with $104 target at BofA/ML.

Ag stocks take a breather....

While the Dow remains up 85 points right now, Ag stocks are selling off.  These stocks have all made nice moves in the past two weeks.

CF Industries (CF) is down 6.35 to 183.42
Mosaic (MOS) is down 1.65 to 71.50
Agrium (AGU) is down 1.22 to 86.48
Potash (POT) is down 1.25 to 57.83

Bucking the trend is Terra Nitrogen (TNH).  It is up another 2.36 to 197

One hour into the day....

Kind of a strange tape.  Stock indexes are higher, but traders are clearly taking profits in some of the stocks that have made big moves of late.  That kind makes me a little wary of this move.  Let's see what happens as the day wears on.  Here's where we are now:

Dow +116
Nas +31
S&P +15 to 1228

The key for the S&P 500 is that it remain above the 1200 level.

Goldman likes the metals...

Goldman Sachs says demand for metal should remain “fairly healthy,” driven by emerging markets, and the recent pullback in metals and mining stocks has created a “particularly attractive entry point for select names." Goldman reiterates Buy ratings on Freeport McMoran (FCX +3.3%) and Alcoa (AA +4.1%) following sharp pullbacks.

Nice open for stocks....

After twenty minutes of trading, stocks are broadly higher. 

Dow +85
Nas +21
S&P +12

Gold is down slightly.

Joy Global tops views...

Joy Global (JOYG +5.6%) opens with a bounce after topping Q3 earnings views, and raising full-year earnings and revenue guidance. The mining equipment maker also says it will sell its LeTourneau drilling operation to Cameron International (CAM +1%) for $375M. JOYG is in the process of buyng China's International Mining Machinery Holdings.

HP seems like a confused company...

Hewlett-Packard (HPQ) says it will temporarily resume manufacturing of its TouchPad tablet just 11 days after killing it. The resurrection follows a spike in demand after H-P, desperate to clear out unsold inventory, slashed the price from $399 to $99. But the decision to manufacture a second run is puzzling, since the basic TouchPad costs ~$306 to manufacture.

Premarket movers....

Premarket gainers:

CTIC +18%. FRO +5%. JOYG +5%. SINA +4%. UBS +3%. ARMH +3%. JDSU +3%. MU +3%.

Losers:
 
LTXC -14%. DRYS -8%. NBG -7%. JVA -5%. TQNT -4%.

A Milkshake to treat Alzheimer's....

A vanilla milkshake for Alzheimer's patients provides energy to the brain, says the company that sells it. A company-funded clinical trial found short-term positive effects in cognition and memory, but scientists say so far there is insufficient evidence that the drink is effective.

The brains of Alzheimer's patients don't convert glucose into energy as efficiently as healthy brains, which can result in a decrease in cognitive function, according to privately held Accera Inc., the Broomfield, Colorado company that sells the milkshake, called Axona. The shake contains caprylic triglyceride, a compound derived from coconut oil that is metabolized in the liver to produce ketone bodies, which serve as alternate brain fuel for Alzheimer's patients, the company says.

Here is a link to the company's website:

http://www.accerapharma.com/index.html

Gaddafi forces given 5 days to surrender...

Libya’s rebel leadership on Tuesday ordered forces loyal to longtime leader Moammar Gaddafi to surrender by Saturday or face a military assault aimed at completing the rebels’ takeover of the country. 

Mustafa Abdel Jalil, head of the rebel’s governing Transitional National Council, said his forces would attack Gaddafi’s home town of Sirte, where the loyalists have gathered, on Saturday, the day when celebrations marking the end of the Muslim holy month of Ramadan will end.

“This window of opportunity closes with the end of the official holiday Eid al-Fitr," Abdel Jalil said. “We can act decisively to end this in a military manner. We do not wish to do so, but we cannot wait any longer.”

Amazon vs. Apple....

The 10-inch version of Amazon's (AMZN) much-anticipated tablet won't go into mass production until Q1 2012, according to DigiTimes. However, the 7-inch version is expected to start shipping in October. Apple (AAPL) is expected to launch its next 9.7-inch iPad, believed to feature a higher-resolution display, early next year.

These stories that Amazon's tablet will rival Apple's iPad is a joke to me.  There is no comparison between the Kindle and the iPad. 

Jobs number less than expected....

August ADP Jobs Report: +91K vs. +100K expected and +109K prior (revised from +114K). The data "suggests that the trend in employment moderated somewhat in August at a pace below what would be consistent with a stable unemployment rate."


Stock Futures remain positive...

Market stages late rally to close higher....

Following the release of the Fed August 9 minutes, traders pushed stocks higher.  With 15 minutes left in the day the Dow was up 88 points, however program selling in the last 10 minutes brought us back toward even on the day.

Dow + 20 to 11559
Nas +14 to 2576
S&P +3 to 1212

Oil stocks rallied into the close and Gold, once again, moved higher in tandem with the broad market.  All in all not a bad day, but not exactly the breakout we were hoping for.

Market shruggs off Fed minutes...

 FOMC minutes from the Aug. 9 meeting show a split concerning the best tools for easing monetary policy. A few members felt that economic developments justified a more substantial move, but they were willing to accept the stronger forward guidance on the federal funds rate as a step in the direction of additional accommodation.

The markets sold off initially on the release, but are now resuming their uptrend...

Dow +19
Nas +11
S&P +1

Terra Nitrogen continues move higher....

We've been following the movement of Terra Nitrogen (TNH) over the past week.  Today the stock is up yet another 6.19 to 194.70.  The dividend is now 7.66% based on the current price.

Consumer confidence drops...

This morning we got news that confidence among consumers plunged to its lowest level since April 2009. The consumer confidence index dropped to a reading of 44.5 in August from 59.2 in July, according to the Conference Board. Economists had been looking for a reading of 52.

That's a big miss by the experts...however a few good weeks in the stock market can turn that confidence around very quickly.

RIMM Breaks out.....

We pointed out last week that it may be time to scoop up some Reseach in Motion shares.  The maker of Blackberry phones' shares rose thru the targeted $30 level yesterday and are getting a strong follow thru rally today.

Shares are currently up 1.50 to $32.22

After two hours.....

the market just turned positive after a negative open.  Look for more volatility as traders await Fed minutes to be released at 2 pm this afternoon.

Dow +3
Nas +5
S&P +1

Southwest Air shares weak on bad news concerning 717's...

Shares of Southwest Airlines (LUV -2.1%) suffer on a day many airline stocks (FAA +0.7%) are posting modest gains. An aviation blogger reports the firm's 88 717s picked up in the AirTran buyout are increasingly "unviable" in a high fuel cost environment, a statement reinforced by the carrier's decision to drop routes serviced exclusively by 717s.

LUV shares are down 0.20 to 8.48 this morning.

You gotta like Perrigo...

Generic product maker Perrigo (PRGO) is hitting new all-time highs this morning.  It is currently up 1.94 to 95.55.

 

Market holds up well.....

Twenty minutes into the day, the market is holding up despite premarket selling following Fed comments about potential QE3. 
Dow -25
Nas -5
S&P -5

Fed minutes from last weeks meeting will be released later today.  Look for a drastic reaction either way on that once it is released.  It is becoming clear that the market does not want to hear that the Fed is going to start a QE3 program.

FDIC objecting to Bank of America settlement...

Bank of America (BAC) is once again a stock to watch, as the FDIC objects to B of A's $8.5 billion mortgage settlement.  The agency is objecting as an investor rather than a regulator - it owns securities that would be covered by the settlement because it took over banks that failed during the financial crisis.

The FDIC says its objection is based on the fact that it doesn't have enough information to evaluate it.

This is probably positive for Green Mountain Coffee...

Starbucks Corp. (SBUX). The coffee chain said coffee packets under its brand for Green Mountain Coffee Roasters Inc's (GMCR) single-serve Keurig coffee machines will be sold in U.S. grocery and specialty retail stores from November, in time for the key holiday season. It also said it plans to grow its sales of "K-Cups" to $1 billion over time.

Meanwhile, check out the chart on Coffee prices...

HP contemplates splitting company...

Hewlett-Packard (HPQ). The technology company said on Monday it prefers to spin off its personal computers unit and is currently working on understanding the larger implications of separating the business from the company.

Premarket movers...

Premarket gainers:

LLNW +10%. AEZS +8%. PANL +6%. TGB +4%. DG +3%.

Losers:
 
NBG -9%. CEDC -7%. LVLT -4%. ASBC -4%. FRO -3%. DB -3%. FMS -3%. GSK -3%.

Futures sell off on Fed comments premarket....

Gold spikes higher as well.

Chicago Fed's Charles Evans says "strong accommodation" is needed for a "substantial period of time" due to a U.S. economy that seems to be moving "sideways." Evans tells CNBC this morning that more aggressive policy is needed; he is "somewhat nervous" about the recovery, and believes the labor market is in a state "consistent with recession."

This clinches it.  It is clear, the market does NOT want any more fiscal stimulus from the Fed.  It would be nice if they would just let everything play out.

DSW beats and raises...

DSW Inc's quarterly profit beat estimates as more customers showed up at its stores looking for discounts, and the shoe retailer raised its full-year outlook.   The Columbus, Ohio-based retailer now expects annual diluted earnings of $2.70-$2.85 for the full year. It had earlier forecast earnings in the range of $2.65-$2.80.

Excluding items related to DSW's merger with RVI which closed in the quarter, it earned 74 cents a share in the second quarter.  Sales at the company, which sells branded footwear for men and women at discounted rates, rose 14.7 percent to $476.3 million.

Analysts, on average, had expected the retailer to earn 63 cents a share on revenue of $459.4 million, according to Thomson Reuters I/B/E/S.

The stock is up $2 in premarket trading to $49.20.

New Idea of the Day....MAKO

MAKO Surgical (MAKO) designs and makes robotic systems (similar general idea as ISRG) that can avoid total knee replacements by use of a procedure called MAKOplasty. MAKOplasty is an alternative that resurfaces the damaged portions of the knee. MAKO sells the robotic system, called the Robotic Arm Interactive Orthopedic System, and then sells consumables which must be replaced for every procedure. Recovery times for MAKOplasty patients are drastically reduced over total knee replacement, leading to lower healthcare and rehabilitation costs, and improved quality of life.

About 581,000 knee replacements are performed each year in the US. Although there are no hard numbers for the percentage of these that would benefit from MAKOplasty, that does provide some scale to the potential market. The company has not yet had a profitable quarter, but revenues keep increasing at a high rate (up 80% and 81% in the past two quarters) and procedures performed are also increasing quickly (up 88% in the first half of 2011 to over 2,800).

MAKO fell down to $21 during the latest market selloff, but then has come storming back after releasing its earnings on August 9.  The stock rose 2.57 to a new closing high of 34.99 yesterday.  Here is the weekly chart:

Today is a key day....

After yesterday's rally we are sitting just above key levels.  The S&P closed at 1210 after breaking thru the previous high made on August 17.  What we would like to see today is follow thru move higher, on heavier volume.  This morning Futures are lower (down 6), but that is great.  A reversal of that with a further breakout would be very positive. 

Dick Bove loves the banks....

Dick Bove is pounding the table for bank stocks, noting many now sport market caps lower than their net cash positions; names fitting this description include BAC, JPM, C, BK, STT, NTRS, and SNV. However, Bove also believes Ireland, Portugal, and Greece will default, affecting several big-name U.S. banks with Euro exposure.

Nice Day for the market...

Dow +2.28% to 11542.
S&P +2.83% to 1210.
Nasdaq +2.86% to 2224.

Gold and silver both sold off.

Afternoon update....

At 3:15 pm the market is much higher.  All but 4 stocks in the S&P 500 are positive.

Dow +240 to 11525
Nas +75 to 2554
S&P +31 to 1207

All three indices are breaking out on the charts through the previous high.  In technical terms this is significant.

Noon update....

At noon the market is holding its earlier gains:

Dow +193 to 11477
Nas +63 to 2543
S&P +24 to 1201

Remember, 1200 is a key level to break back above for the S&P.

Hansen Natural still moving higher...

Last week we showed you the chart on Hansen Natural.  Sales of Monster Energy drinks, the high-caffeinated elixir with the neon "M" logo, are growing fast, propelling the earnings of owner Hansen Natural Corp. Energy drinks as an industry are growing as well, but Hansen says Monster is outpacing some competitors like Red Bull, NOS, AMP and Full Throttle.

Hansen said it sold $484 million worth of Monster drinks in the second quarter, a 28 percent increase over the previous year. And though the Los Angeles-area company also sells sodas, teas and smoothies, the Monster drinks accounted for 94 percent of the increase in gross sales.

Hansen is up another 2.62 to 87.25 (a new all-time high):

Travelzoo Rebounds...

Travelzoo (TZOO +9.8%) shoots higher following Friday's news that Facebook plans to shut down its daily deals program, perhaps easing competitive pressure on industry leaders. But Travelzoo also has been a rumored takeover candidate, so a fresh round of speculation could be pushing shares.

Amazon is also jumping into this arena with their daily coupon alerts.  Travelzoo is the originator of travel specials spread by email.  I would think they have a great deal of value just in their email database alone.

Here is the chart.  Kind of scary but that is because traders got into the shares and ran the stock up too quickly.  I think this could easily move 20-30% higher if the market continues to rebound :

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.

Amazon.com Inc. (NASDAQ: AMZN) Maintained Buy with $255 target at BofA/ML.
Autodesk Inc. (NASDAQ: ADSK) Reiterated Hold at Argus.
Astec Industries, Inc. (NASDAQ: ASTE) named Value stock of the day at Zacks.
Baidu, Inc. (NASDAQ: BIDU) Raised to Neutral at Credit Suisse.
BlackRock, Inc. (NYSE: BLK) Reinstated as Buy with $216 price target at BofA/ML.
Chimera Investment Corporation (NYSE: CIM) lowered target to $3.15 at BofA/ML.
Merge Healthcare (NASDAQ: MRGE) named Bear of the Day at Zacks.
Pep Boys-Manny, Moe & Jack Inc. (NYSE: PBY) Maintained Buy but cut target to $13 at Argus.
Robert Half International Inc. (NYSE: RHI) Cut to Hold at Citigroup.
Royal Bank of Canada (NYSE: RY) Cut to Neutral at BofA/ML.
Saks, Inc. (NYSE: SKS) named as Bull of the Day at Zacks.
Skullcandy Inc. (NASDAQ: SKUL) Started as Buy with $22 target at BofA/ML; Started as BUy at KeyBanc.
Universal Technical Institute Inc. (NYSE: UTI) Reiterated Buy and $20 target at Argus.
Zillow, Inc. (NASDAQ: Z) Started as Buy at Citigroup.

What happened to all the negativity???

It's amazing that we have temporarily forgotten all the negative European headlines as well as the double dip recession hype...

I still maintain that this latest correction was just that...a correction...where traders took advantage of slow trading, a political stalemate, the ridiculous downgrade of US Debt, and lack of new monies coming into the market from individual investors.  Earnings from US companies continues to be better than expected for the most part.

Dollar Tree (DLTR) up 2.50 to 73....

Dollar Tree, Inc. operates a discount variety store chain. The Company sells an assortment of everyday general merchandise. Dollar Tree sells its merchandise at the $1.00 price point. The Company operates throughout the United States.

CF Industries + 5.15 to 185.50

CF Industries Holdings, Inc. manufactures and distributes nitrogen and phosphate fertilizer products in North America. The Company’s principal products in the nitrogen segment are ammonia, urea and urea ammonium nitrate solution and its principal products in the phosphate segment are diammonium phosphate, monoammonium phosphate, and granular muriate of potash.