Best Buy focuses on online sales...

Best Buy (BBY) plans to launch an online marketplace before the holiday shopping season to recapture sales the firm loses to online rivals eBay (EBAY) and Amazon (AMZN). The new platform is expected to allow third-party sellers like Buy.com to sell items in addition to the retailer's own merchandise.

At 1:15 pm....

Stocks moving higher as the day wears on.  Banks, Oil, Agriculture and Technology leading the way.

Dow +220
Nas +61
S&P +27 to 1192

Walter Energy takeout rumors...

Shares of Walter Energy (WLT) are soaring more than 20% this morning, fueled by a report that British miner Anglo American is weighing a takeover offer for the coal maker that would carry a hefty premium of at least 60%.

According to the London Times, Anglo American, which is headquartered in London and mines coal in Australia, South Africa and Colombia, already has financing lined up for the bid.

Anglo American is considering pulling the trigger on a $120-a-share for Birmingham, Ala.-based Walter Energy, which is a producer and exporter of metallurgical coal and other products, the paper reported. At $120, the bid would translate to a 60% premium on Walter Energy’s Tuesday closing price of $74.99.

WLT is currently up 21 to 96.01...if this story is true, we are looking at another 24 points from here...

Free Breakfast at Chick-fil-A......

The restaurant chain is offering menu items such as the Chicken Biscuit, the Spicy Chicken Biscuit, the Chicken Breakfast Burrito, and the Multigrain Oatmeal, among five other breakfast items in the promotion.

Customers must visit Chick-fil-aForBreakfast.com to sign up for a pick-up time slot between 6:30 a.m. and 10:30 a.m., as well as select a location and which breakfast menu item they want.

Have fun waiting in those lines...

At 10:00 am...

Dow +165 to 11303
Nas +43 to 2517
S&P +20 to 1185

Key level to watch on the S&P is 1200.

Gold Gaps Lower....

Looking at the GLD (Gold ETF), it tried to make new highs yesterday, but closed below the previous high made on August 22.  We need to keep an eye on this one, as Gold has represented the fearful flight to safety trade.  Note the gap lower on the far right.  Here is the chart:

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.


Abaxis, Inc. (ABAX) maintained Underperform as Bear of the Day at Zacks.

Anheuser-Busch InBev (BUD) Cut to Neutral at Goldman Sachs.

Applied Materials Inc. (AMAT) Reiterated Buy with $19 target at Argus.

The Blackstone Group (BX) Cut to Perform at Oppenheimer.

Capital One Financial Corporation (COF) Raised to Outperform at Oppenheimer.

Career Education Corp. (CECO) maintained Buy but cut target to $21 from $28 at Argus.

Dover Corporation (DOV) Cut to Underweight at JPMorgan.

Goldman Sachs Group Inc. (GS) Cut to Perform at Oppenheimer.

Humana, Inc. (HUM) Reiterated Outperform as Bull of the Day at Zacks.

JDS Uniphase Corporation (JDSU) Started as Hold at Kaufman Bros.

Las Vegas Sands Corp. (LVS) Raised to Buy at Goldman Sachs.

NASDAQ OMX Group (NDAQ) Raised to Buy at Deutsche Bank.

RF Micro Devices Inc. (RFMD) Started as Underperform with $5.50 target at BofA/ML.

Skyworks Solutions Inc. (SWKS) Started as Buy with $25 target at BofA/ML.

Tim Hortons Inc. (THI) Reiterated Buy with $56 target at BofA/ML.

TriQuint Semiconductor, Inc. (TQNT) Started as Underperform with $6.75 target at BofA/ML.

Wyndham Worldwide Corporation (WYN) named value stock of the day at Zacks.

BP may have a huge find in the Gulf...

BP says it may have landed a giant deepwater oil find in the Gulf of Mexico in a previously untested part of its Mad Dog field. Total hydrocarbons could top 4B barrels of oil equivalent, according to initial reports. BP owns a 60.5% stake in Mad Dog, and minority owners include BHP Billiton (BHP) at 23.9% and Chevron (CVX) with 15.6%.

SEC finally investigating Leveraged ETF's....

It's about time.  I've been preaching this for years.  It all has to do with getting rid of the Uptick Rule, which allowed these toxic ETF's to exist...and led to the existence of high frequency trading firms.

Maybe this is the beginning of the end for these things.

Bank of America may need more capital...

Despite a $5 billion investment from Warren Buffet and the $3 billion sale of half its stake in China Construction Bank, there is talk that Bank of America may need to sell off Merrill Lynch to further reinforce its capital base. However, BAC is up nearly 3% pre-market after announcing a management shake-up, including the departure of two senior executives and the appointment of co-COOs.

Groupon "forced" to cancel IPO...

According to a recent Wall Street Journal report, Groupon has received questions from SEC regarding a leaked memo by CEO, Andrew Mason. As a result the company is cancelling its roadshow and reevaluating its IPO timing.

Something tells me this window will not be open long...

Urban Outfitters sales fall...

Urban Outfitters (URBN) reports in a 10-Q filing comparable store sales fell 3.3% for the six months ending July 31 due to a decrease in transactions, lower units per transaction and lower average unit sales prices. Shares -8.1% premarket.

Yahoo interested in selling itself...

The WSJ reports Carol Bartz was fired after an independent study found Yahoo (YHOO) to be underperforming. Perhaps more interestingly, a source claims Yahoo is now "open to selling itself to the right bidder." A number of companies and investment firms reportedly have shown interest in Yahoo's assets.

Of course we have heard this for years.

Verifone beats and raises...

VeriFone Systems Inc. (PAY). The credit card swipe machine maker posted better-than-expected quarterly results and raised its full-year outlook as it ropes in more customers for mobile payment technologies. The company expects fourth-quarter adjusted earnings of 49-50 cents per share on sales of $395-$400 million. Third-quarter net income rose to $26.3 million, or 28 cents a share, from $18.5 million, or 21 cents a share, last year.

Verifone is up 5% premarket to 36.52

Yahoo fires CEO....

Yahoo Inc. (YHOO). The company Chairman Roy Bostock fired CEO Carol Bartz over the phone on Tuesday, ending a tumultuous tenure marked by stagnation and a rift with Chinese partner Alibaba. CFO Tim Morse will step in as interim CEO, and the company will search for a permanent leader to spearhead a battle in online advertising and content with rivals Google Inc (GOOG) and Facebook.

Here is the long term chart on Yahoo going back to 2003:
 

Futures higher...

U.S. stock index futures are pointing to a higher open this morning, following the late day comeback yesterday,  The Dow managed to close 100 points lower yesterday on heavy volume, however that was a nice improvement from the earlier 307 point loss. 

There is some relief in the Euro zone as a German court rejects challenges to the country's participation in bailouts for Greece.

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

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

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

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

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

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

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

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

Vertex up on Arthritis Drug results...

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

VRTX is up 0.58 to 45.18

What kind of drugs....

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

With one hour left....

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

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

Right now:

Dow -156
Nas -21
S&P -14

Retail chains to open more stores...

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

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

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

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

RIMM partners with China Mobile...

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

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

Both stocks are higher today:

CHL +1.23 to 50.58
RIMM +0.73 to 30.84

Only three Dow stocks higher...

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

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

Consumer Discretionary stocks moving higher....

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

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

Market creeping back....

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

Report on Alexion Pharmaceuticals from IBD...

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

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

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

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


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

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

The stock is up again today +1.69 to 58.58

There are a few stocks moving higher....

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

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

Here's why Netflix is up...

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


Netflix is up 2.69 to 215.80 today.

Express Scripts - Medco Health Merger postponed...

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

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

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

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

Thank you Wedbush!!!  This is helpful. 

Government regulations a problem....

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

At 11:00 am....

The market continues to be weak...

Dow -252
Nas -55
S&P -27

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

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

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

Honda issues another recall...

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

Today's Upgrades and Downgrades...

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


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

Netflix bouncing this morning...

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

It is currently climbing +2.26 to 215.30

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

A lovely open....

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

Dow -265
Nas -50
S&P -29

Starbucks expanding in China...

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

Dendreon cuts ties with Glaxo...

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

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

Dell and Baidu team up...

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

Amazon targets Apple...

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

Crude Falling....

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


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


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

Treasury Rates continue to fall...

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

Welcome Back my Friends....

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


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

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.