Trading Resumes in Genentech....

The stock is up 6.25 to $78 in after market trading...

Reason For Late Move....

Ambac Bailout May Be Announced Next Week
New York State Insurance Department's plan to bail out troubled bond insurer Ambac Financial could be announced Monday or Tuesday, reports CNBC's Charlie Gasparino, citing conversations with "bankers working on the deal."

FDA Approves Genentech's Avastin Drug...

Genentech, Inc. (NYSE:DNA) today announced that the U.S. Food and Drug Administration (FDA) granted accelerated approval for Avastin(R) (bevacizumab), in combination with paclitaxel chemotherapy, for the treatment of patients who have not received chemotherapy for their metastatic HER2-negative breast cancer.

This is huge surprise for Genentech...

Genentech Stock Halted....

DNA is halted with news pending.

It last traded at $71.60

Stocks Turn Green....

The Dow Jones Industrial Average recovers from a triple-digit decline to trade positive on news of a potential bailout of troubled bond insurer Ambac. Stocks had been lower most of the day amid nervousness about the economy and downgrades of federal home lenders Fannie Mae and Freddie Mac.

Today's Downgrades....

Agnico-Eagle (AEM) by Salman to Hold from Buy

Barrick Gold (ABX) by UBS to Neutral from Buy

Best Buy (BBY) by Morgan Stanley to Underweight from Equal Weight

ChoicePoint (CPS) by GARP to Neutral from Buy

Fannie Mae (FNM) by Merrill Lynch to Sell from Neutral

Freddie Mac (FRE) by Merrill Lynch to Sell from Neutral

Freeport-McMoran (FCX) by Desjardins to Hold from Buy

Gilead (GILD) by Sanford Berstein to Mkt Perform from Outperform

Goldcorp (GG) by R James to Mkt Perform from Outperform

Goldcorp (GG) by Salman to Hold from Buy

Kinross Gold (KGC) by Genuity to Hold from Buy

Kinross Gold (KGC) by UBS to Neutral from Buy

Nicor Inc (GAS) by Baird to Neutral from Outperform

Today's Upgrades...

American Equity (AEL) by KeyBanc to Buy from Hold

Bristow Grp (BRS) by C. Suisse to Neutral from Underperform

DCP Midstream (DPM) by Wachovia to Outperform from Mkt Perform

DirecTV (DTV) by Cowen & Co to Outperform from Neutral

Discover Fnl Svcs (DFS) by Morgan Stanley to Overweight from Underweight

Dynavax Tech (DVAX) by Oppenheimer to Outperform from Perform

Health Management (HMA) by Raymond James to Mkt Perform from Underperform

Hillenbrand (HB) by Hilliard Lyons to Buy from Neutral

ImClone Sys (IMCL) by Cowen & Co. to Outperform from Neutral

Switch & Data (SDXC) by Raymond James to Strong Buy from Outperform

Williams Cos (WMB) by RBC to Outperform from Sector Perform

Earnings Reports Due on Monday....

American Tower Corp. (AMT) 4Q .08 6:00AM
Atlas Pipeline Partners L.P. (APL) 4Q .62 AMC
China TechFaith Wireless Commun Tech (CNTF) 4Q .04 AMC
Donaldson Co. Inc. (DCI) 2Q .42 AMC
EXCO Resources Inc. (XCO) 4Q .06 AMC
FirstEnergy Corp. (FE) 4Q .94
Grant Prideco Inc. (GRP) 4Q 1.09
Greatbatch Inc. (GB) 4Q .22 4:00PM
GulfMark Offshore Inc. (GLF) 4Q 1.13 6:00AM
Henry Schein Inc. (HSIC) 4Q .82 BMO
Hilb Rogal & Hobbs Co. (HRH) 4Q .55 AMC
Human Genome Sciences Inc. (HGSI) 4Q (.54) AMC
Keryx BioPharms Inc. (KERX) 4Q (.44)
LDK Solar Co. Ltd. (LDK) 4Q .41 AMC
Lowe's Cos. (LOW) 4Q .25
Nationwide Health Ppties Inc. (NHP) 4Q .33 AMC
Nordstrom Inc. (JWN) 4Q .90
ONEOK Inc. (OKE) 4Q .94 AMC
ONEOK Partners L.P. (OKS) 4Q 1.20 AMC
Orient Express Hotels Ltd. (OEH) 4Q .20 AMC
Perfect World Co. Ltd. (PWRD) 4Q .28 BMO
Shanda Interactive Entertain Ltd. (SNDA) 4Q .45 AMC
Sirtris Pharms Inc. (SIRT) 4Q (.34) AMC
Tesco Corp. (TESO) 4Q .22 BMO
TNS Inc. (TNS) 4Q .21 AMC
USEC Inc. (USU) 4Q .09 AMC
Verenium Corp. (VRNM) 4Q (.20) AMC
Zebra Tech Corp. (ZBRA) 4Q .43 BMO

S&P Slashes GMAC Ratings...

Standard & Poor's cut its rating on GMAC three notches deeper into junk territory and warns the finance company may not be able to remain a better credit risk than its former parent, GM. Ratings agency says further downgrades are possible.

Short List of Stocks to BUY.....

Reviewing earnings reports since January 1. Here is a list of companies that have Beat Earnings Expectations AND have Raised Guidance for the future.

These are stocks you want to BUY if given an opportunity on a pullback...

Potash (POT)
Terex (TEX)
Intuitive Surgical (ISRG)
Hewlett-Packard (HPQ)
Medco Health (MHS)
Buffalo Wild Wings (BWLD)
Gamestop (GME)
Mosanto (MON)
JC Penney (JCP)
Zimmer Holdings (ZMH)
Sohu (SOHU)
Dolby Labs (DLB)
Research in Motion (RIMM)
Express Scripts (ESRX)
Boeing (BA)
Chattem (CHTT)
Corning (GLW)
IBM (IBM)

Latest Apple Patent Filing....

A new Apple (AAPL) patent describes a large touch-based system designed to be used with both hands simultaneously. Perhaps a competitor to Microsoft's delayed Surface?

ImClone Gets Upgraded...

Cowen and Co. upgraded biotech company ImClone Systems (IMCL) to outperform from neutral, saying that based on conversations with physician consultants, it believes Erbitux's prospects for gaining significant market share in the treatment of lung cancer are quite good.

Medical Device Makers Celebrate Victory...

Since Wednesday's Supreme Court ruling protecting medical device maker Medtronic (MDT) from personal injury lawsuits, lawyers and judges have been busily reexamining similar cases against companies like Johnson & Johnson (JNJ), Boston Scientific (BSX) and St. Jude Medical (STJ) to decide whether the suits should be closed down.

Microsoft Opens Source Code...

In the hopes of encouraging programmers to build add-ons to its products, Microsoft (MSFT) announced broad steps to open up its source code. Microsoft hopes the move will give it leverage against rival online software suites that make it easy to build plug-ins that enhance usability and function. Developers and regulators were pleased by the move, although some were skeptical of Microsoft's commitment to interoperability.

Jeff Bezos Selling Shares of Amazon....

Shares in Amazon.com Inc. (AMZN) fell 5.1% Thursday after the Internet retailer revealed that founder and Chief Executive Jeff Bezos sold more than $135 million worth of shares, his first insider sale in more than three years.

Nothing wrong with this....I guess he's learned from the past.

Chesapeake Energy Beats Estimates...

Chesapeake Energy Corp. (CHK, $44.18), the largest independent U.S. natural gas producer, reported fourth-quarter net income of $303 million, falling from $471 million a year ago. After paying preferred stock dividends and including losses on the conversion of preferred stock, earnings fell to 33 cents a share from 96 cents a share. Excluding one-time items, the company earned $466 million, or 93 cents a share, from ongoing operations. Revenue rose 12% to $2.09 billion.

Analysts surveyed had predicted the company would earn 82 cents a share on $1.96 billion in revenue.

This has been a hot stock lately with the latest move in Natural Gas prices.

Intuit Earnings Miss Estimates..

Intuit Inc. (INTU). The Mountain View, CA.-based provider of business and financial management software said late Thursday its second-quarter net profit dipped to $115.2 million, or $0.34 a share, from $145.4 million, or $0.40 a share, in the year-ago period. Total net revenue rose to $834.9 million from $750.6 million in the previous year period.

The company was expected to earn 36 cents a share.

Have you noticed how much they jacked up the price on Turbotax this year???

Fannie and Freddie Downgraded to Sell...

Merrill Lynch downgraded government-sponsored agencies Fannie Mae (FNM) and Freddie Mac (FRE) to sell from neutral Friday, saying that despite recent selling pressure, the share prices don't fully reflect "the severity or duration of the financial headwinds facing the companies." Further deterioration in financial market conditions and worsening credit performance will undermine fundamentals and the market’s assessment of Fannie and Freddie's respective financial position, Merrill Lynch analysts wrote in a note to clients.

Express Scripts Beats Estimates...

Express Scripts Inc. (ESRX). The Maryland Heights, Mo.-based provider of pharmacy benefit management services late Thursday said fourth-quarter adjusted earnings rose to $174.2 million, or 68 cents a share, compared with $139.9 million, or 51 cents a share, a year earlier. The company was expected to earn 64 cents a share.

Revenue for the period ended Dec. 31 rose to $4.69 billion from last year's $4.5 billion. For 2008, the company expects earnings from continuing operators of $2.92 to $3 a share.

The stock is trading up 1 to $66 premarket. This has been one of the top performing groups out there over the past thee years. Medco Health and CVS Caremark are the other two top players.

Thursday's Summary....

U.S. Markets

Dow -142.96 (-1.15%)
Nasdaq -27.32 (-1.17%)
S&P 500 -17.50 (-1.29%)

News That Moved the Market

Markets Drop On Philly Fed. Sellers dominated the market Thursday, with all 10 sectors finishing in negative territory. The bears took control after the Philadelphia Fed Manufacturing Survey came in at -24, showing continued contraction in the region's manufacturing. The reading was well below the -10 analysts expected, fueling speculation that we may not be able to avert a recession. The Philly Fed Survey has recently been a strong barometer of the country's manufacturing activity. With little news expected Friday, look for this number to stay with investors and traders through the start of tomorrow's' session.

Microsoft Opens Up. Microsoft (MSFT, -0.4% ) announced it would enhance interoperability by increasing the openness of its products. The move should make it easier for outside programmers to create applications that work with Microsoft's products, mainly Vista, and ease tensions with the EU anti-trust regulators.

Gold Shines. Gold futures hit an all-time high of $958.40/ouce, before settling up $11.40 to $949.20. After yesterday's higher than expected CPI reading and further weakness in the U.S. dollar, gold was bid up by investors and traders. "This type of inflation environment is one in which commodities thrive in -- at least until growth rates start to falter," said Edward Meir, an analyst at MF Global.

Research in Motion (RIMM, +9.0%) traded higher after increasing its forecast for subscriber growth...

Crude Oil fell $0.32 to $97.91/barrel after higher than expected inventories…

Cisco (CSCO, -0.0%) was upgraded to a Buy from Neutral at Citigroup.