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News That Moved the Market
Markets Rally On Upbeat News From MBIA. Markets had a strong day, with all major sectors finishing higher. After Wednesday's late sell off, despite the Fed cutting 50 basis points, it was important for the markets to bounce back. Arguably the biggest catalyst for the up move was news from bond insurer MBIA (MBI, +6.7%) which reassured investors that it had enough capital to keep its AAA rating and said it would not go bankrupt. MBIA also announced it lost $2.3 billion last quarter, but investors were more worried about the company's future than its past performance.
Google Misses Targets. Google (GOOG, +2.1% day; -7.9% A.H.) fell after posting a 17% increase in profits and a 51% jump in revenue. The figures were short of analysts' estimates. The company's share of the Internet search market rose to 56.3% from 50.8% at the end of last year.
Mixed Economic News. The Department of Labor reported jobless claims increased to 375,000, much higher than expected. The news created fears that tomorrow's Jobs Report would disappoint, but the data was only for one week, and does not carry too much weight. The Department of Commerce announced December personal income increased 0.5%, while spending rose 0.2%. Both figures were basically in-line with estimates. Employment costs increased 0.8%, which was in-line with forecasts.
January Barometer. The S&P 500 finished down 6.1% in January, a bad sign for things to come. The so-call "January Barometer" says the first month of the year determines the performance for the whole year. Though it sounds odd, it has been correct 80% of the time since 1950.
Tomorrow Notable Earnings:
Chevron (CVX) Before Open
Exxon (XOM) Before Open
Economic Events:
Motor Vehicle Sales
8:30 AM: Monthly Jobs Report
8:30 AM: ISM Mfg Index
10:00 AM: Consumer Sentiment
10:00 AM: Construction Spending
Thursday, January 31, 2008
Notable Movers:
Potash (POT) up 4.50 to $140.71 - POT was down 6 points on the open today in sympathy with selloff in Peobody Energy
Gamestop (GME) up 2.27 to $51.35 - GME held up nicely around support at $48
Chipotle Mexican Grill (GMG) up 4.79 to $119.86 - CMG was hit hard earlier in the week as parent company (McDonald's) sold off
Zumiez (ZUMZ) up 1.44 to $19.26 - ZUMZ fell to 14 on Jan 22, has since rebounded with Retail stocks.
Google (GOOG) up 14 to $562 - up ahead of tonight's earnings report. Option traders say this stock could go $50 either way after they announce.
Gamestop (GME) up 2.27 to $51.35 - GME held up nicely around support at $48
Chipotle Mexican Grill (GMG) up 4.79 to $119.86 - CMG was hit hard earlier in the week as parent company (McDonald's) sold off
Zumiez (ZUMZ) up 1.44 to $19.26 - ZUMZ fell to 14 on Jan 22, has since rebounded with Retail stocks.
Google (GOOG) up 14 to $562 - up ahead of tonight's earnings report. Option traders say this stock could go $50 either way after they announce.
Mortgage Rates Start to Move Higher.....
U.S. fixed-rate mortgages rose for the first time in five weeks, according to Freddie Mac's survey released Thursday. The national average interest rate on the benchmark 30-year, fixed-rate loan averaged 5.68% in the week ending Thursday, up from 5.48% a week ago, but down from 6.34% a year ago.
Basically, the market is telling you that the Fed is done cutting rates and maybe we're not going to fall into a recession....
Basically, the market is telling you that the Fed is done cutting rates and maybe we're not going to fall into a recession....
Washington Mutual Climbs Back to $20...
In the last 15 minutes, WM has accelerated higher...
Now up 1.35 to $20.00
Now up 1.35 to $20.00
Potash (POT) Down in Sympathy with Peabody...
POT - 2.55 to $133.70
This looks like a Buying Opportunity. Did traders forget Potash's earnings report last week. A blowout and the company guided higher.
This looks like a Buying Opportunity. Did traders forget Potash's earnings report last week. A blowout and the company guided higher.
Jetblue Continues to Break Off Bottom....
We pointed out on Monday, that JBLU was looking good at $5.00.
The stock is up another .21 to $6.57 this morning.
Another winner!!!
The stock is up another .21 to $6.57 this morning.
Another winner!!!
Crocs in Full Breakout Mode Now....
CROX up .31 to $32.87
We highlighted this stock on Monday and pointed out that $31 was a breakout point.
We highlighted this stock on Monday and pointed out that $31 was a breakout point.
Mastercard Blowing and Going....
Mastercard is up 18 right now to $207.
I thought the consumer was dead???
I thought the consumer was dead???
Nutrisystem continues to climb....
NTRI up .20 to $27.91
We have noticed that the company's new weight loss project: Tori Spelling - former star of Beverly Hills 90210. Looks like they are now going after the 20-something crowd....or maybe she's 30-something.
We have noticed that the company's new weight loss project: Tori Spelling - former star of Beverly Hills 90210. Looks like they are now going after the 20-something crowd....or maybe she's 30-something.
Under Armour Beats Reduced Estimates...
Under Armour Inc.'s (UA) fourth-quarter net income rose 42% to $16.9 million, or 34 cents a share, from $11.9 million, or 24 cents, a year earlier. The Baltimore athletic wear company said revenue for the quarter ended Dec. 31 rose 29.2% to $174.8 million from $135.3 million a year earlier.
Analysts polled by Thomson Financial, on average, projected earnings of 31 cents a share on revenue of $174 million.
For the first half of 2008, Under Armour projects earnings of 3 cents a share to 5 cents a share. Looking ahead, the company expects annual net revenue of $765 million to $775 million for 2008, an increase of 26% to 28% over 2007. The company also expects income from operations of $108.5 million to $110.5 million, an increase of 26% to 28% over 2007.
Under Armour's stock is breaking off a bottom here (up 1.62 to $39.20). Its 52-week high was at $73 back in August.
Analysts polled by Thomson Financial, on average, projected earnings of 31 cents a share on revenue of $174 million.
For the first half of 2008, Under Armour projects earnings of 3 cents a share to 5 cents a share. Looking ahead, the company expects annual net revenue of $765 million to $775 million for 2008, an increase of 26% to 28% over 2007. The company also expects income from operations of $108.5 million to $110.5 million, an increase of 26% to 28% over 2007.
Under Armour's stock is breaking off a bottom here (up 1.62 to $39.20). Its 52-week high was at $73 back in August.
Boeing Beats Estimates....
Boeing beats, easing concerns over Dreamliner delays. Boeing (BA) reported a 4% rise in Q4 profit to $1.03 billion ($1.36/share), $0.04 ahead of analyst forecasts. Revenue was flat at $17.5 billion. Boeing also raised 2008 EPS guidance to $5.70-5.85 from $5.55-5.75. Shares rose 2.32%.
Boeing shares are down 1.32 to $81.55
Boeing shares are down 1.32 to $81.55
Sony Beats Estimates, Cuts PS3 Target...
Sony (SNE) reported Q3 EPS of $1.67 vs. consensus estimates of $1.31. Q3 revenue of $25.08B was well ahead of Street consensus of $24.82B. Sony cut its 2007 forecast to 9.5M PlayStation 3 sales from 11M.
Shares are down 1.32 to $46.18
Shares are down 1.32 to $46.18
Shell Posts "Obscene" Profit....
Royal Dutch Shell (RDS.A) reported full-year earnings on Thursday of $27.6 billion (£14 billion), a record not just for the oil giant but for any European company. High oil prices compensated amply for weak refining margins and lower oil and gas production.
The profit was labeled "obscene" by Tony Woodley, joint general secretary of British trade union Unite, and "absolutely scandalous" by the motorist organization Road Haulage Association.
The profit was labeled "obscene" by Tony Woodley, joint general secretary of British trade union Unite, and "absolutely scandalous" by the motorist organization Road Haulage Association.
Mastercard Up on Internet Transactions...
MasterCard beats by $0.17, beats on revs (MA) (Stock at $189.00): Reports Q4 (Dec) earnings of $0.89 per share, excluding non-recurring items, $0.17 better than the First Call consensus of $0.72; revenues rose 27.8% year/year to $1.07 bln vs the $0.98 bln consensus.
Co reports Q4 gross dollar volume up 15.2% vs 12.8% prior, purchase volume up 16.1% vs 14.1% prior.
Co reports Q4 gross dollar volume up 15.2% vs 12.8% prior, purchase volume up 16.1% vs 14.1% prior.
Starbucks Experiences Minimal Earnings Growth...
Starbucks (SBUX). The Seattle-based coffee giant said late Wednesday first-quarter net earnings rose to $208.1 million, or 28 cents a share, up 1.5% from $205 million, or 26 cents a share, in the same period a year earlier. The latest results were hurt by incremental interest expense related to the company's inaugural senior notes offering during the fourth quarter of 2007, the company said. Net revenue for the first quarter ended Dec. 30 rose 17% to $2.77 billion.
For 2008, Starbucks said it expects "low double digit" per-share profit expansion, citing "continued macroeconomic weakness." The company said it has slowed the pace of store growth in the United States to about 1,175 stores in 2008, down from a revised target of 1,600 stores. It also has increased the store opening target in international markets to about 975 stores.
The stock is down nearly $1 to $18.29 premarket.
For 2008, Starbucks said it expects "low double digit" per-share profit expansion, citing "continued macroeconomic weakness." The company said it has slowed the pace of store growth in the United States to about 1,175 stores in 2008, down from a revised target of 1,600 stores. It also has increased the store opening target in international markets to about 975 stores.
The stock is down nearly $1 to $18.29 premarket.
MBIA Takes Unprecedented losses...
MBIA Inc. (MBI). The New York-based bond insurer said today it slipped into a fourth quarter loss on the back of "unprecedented" loss reserving and impairment activity. For the three months ended Dec 31, MBIA reported a net loss of $2.3 billion, or $18.61 per share, compared with a $181 million profit, or $1.32 per share the same time last year.
For the full year, the group reported a loss of $1.9 billion, or $15.22 per share, against a profit of $819.3 million, or $5.99 per share last time.
The stock traded down over $2 per share after the close.
For the full year, the group reported a loss of $1.9 billion, or $15.22 per share, against a profit of $819.3 million, or $5.99 per share last time.
The stock traded down over $2 per share after the close.
Hologic to Split 2 for 1....
Hologic Inc. (HOLX). The Beford, Mass.-based medical supply company said late Wednesday it has approved a two-for-one stock split, to be effected in the form of a stock dividend.
Subject to stockholder approval, the record date for the stock split will be March 21 and the payment date will be April 2. The proposed stock split will increase the number of shares of common stock outstanding to 255.4 million from 127.7 million.
The stock closed yesterday at $61.80.
Subject to stockholder approval, the record date for the stock split will be March 21 and the payment date will be April 2. The proposed stock split will increase the number of shares of common stock outstanding to 255.4 million from 127.7 million.
The stock closed yesterday at $61.80.
Eli Lilly May Pay $1 Billion Fine....
Eli Lilly & Co. (LLY). The Indianapolis, IN-based drug maker and federal prosecutors are discussing a settlement of a civil and criminal investigation into the company’s marketing of the antipsychotic drug Zyprexa that could result in Lilly’s paying more than $1 billion to federal and state governments, The New York Times reported on Wednesday, citing several sources close to the matter.
CVS Earnngs Up on Caremark Acquisition...
CVS Caremark Corp. (CVS). The Woonsocket, RI-based drugstore chains operator today reported adjusted fourth-quarter income of $861.1 million, or 58 cents a share. Including certain merger and integration costs, the company reported net income of $815 million, or 55 cents a share.
Net revenue for the quarter rose to $21.94 billion from $12.07 billion a year earlier. Same-store sales for the quarter rose 3.4% from a year earlier.
The stock has a strong level of support right here in the mid 30's.
Net revenue for the quarter rose to $21.94 billion from $12.07 billion a year earlier. Same-store sales for the quarter rose 3.4% from a year earlier.
The stock has a strong level of support right here in the mid 30's.
Amazon: Margins Fall...as does stock...
Amazon.com (AMZN). The Seattle-based web-based retailer Wednesday said fourth-quarter net income more than doubled to $207 million or 48 cents a share from $98 million or 23 cents a share profit recorded in the year-earlier period. Net sales for the quarter ending Dec. 31 rose 42% to $5.67 billion from last year's $3.99 billion.
The company said it expects first-quarter sales of $3.95 billion to $4.15 billion. For 2008, the company said it is targeting sales of $18.75 billion to $19.75 billion.
Shares of Amazon.com Inc. (AMZN) fell 12% to $65.16 in after-hours trading Wednesday after the company's gross margin fell to 20.6%, down from 23.4% in 3Q and 21.3% a year ago, and below the average analyst estimate of 21.4%.
The company said it expects first-quarter sales of $3.95 billion to $4.15 billion. For 2008, the company said it is targeting sales of $18.75 billion to $19.75 billion.
Shares of Amazon.com Inc. (AMZN) fell 12% to $65.16 in after-hours trading Wednesday after the company's gross margin fell to 20.6%, down from 23.4% in 3Q and 21.3% a year ago, and below the average analyst estimate of 21.4%.
Earnings Today...
Affiliated Computer Svcs Inc (ACS) 2Q .83
Altera Corp. (ALTR) 4Q .18 4:15PM
Anheuser-Busch Cos. Inc. (BUD) 4Q .32
Apache Corp. (APA) 4Q 2.31 BMO
AstraZeneca PLC (AZN) 4Q .95 6:00AM
bebe Stores Inc. (BEBE) 2Q .26
Bristol-Myers Squibb Co. (BMY) 4Q .34
Callaway Golf Co. (ELY) 4Q (.18)
Colgate-Palmolive Co. (CL) 4Q .89
Columbia Sportswear Co. (COLM) 4Q 1.01
CVS Caremark Corp. (CVS) 4Q .55 BMO
E.W. Scripps Co. (SSP) 4Q .70 BMO
Electronic Arts Inc. (ERTS) 3Q .78 AMC
Flowers Foods Inc. (FLO) 4Q .21
Gold Fields Ltd. (GFI) 2Q .13 1:00AM
Goodrich Corp. (GR) 4Q .91 BMO
Google Inc. (GOOG) 4Q 4.09
Hologic Inc. (HOLX) 1Q .45 8:00AM
ImClone Syss Inc. (IMCL) 4Q .24
Intuitive Surgical Inc. (ISRG) 4Q 1.03
Key Energy Svcs Inc. (KEG) 4Q .29
L-3 Commun Hldgs Inc. (LLL) 4Q 1.60 BMO
Marathon Oil Corp. (MRO) 4Q 1.05
MasterCard Inc. (MA) 4Q .70
Mattel Inc. (MAT) 4Q .72 6:00AM
Monster Worldwide Inc. (MNST) 4Q .37 AMC
Nasdaq Stock Market Inc. (NDAQ) 4Q .46 7:00AM
Newell Rubbermaid Inc. (NWL) 4Q .45 BMO
Peabody Energy Corp. (BTU) 4Q .69
Procter & Gamble Co. (PG) 2Q .97
Raytheon Co. (RTN) 4Q .90 6:00AM
RF Micro Devices Inc. (RFMD) 3Q .05 4:00PM
Sony Corp. (SNE) 3Q 1.53
Starwood Hotels & Resorts (HOT) 4Q .67 BMO
Tesoro Corp. (TSO) 4Q .12
Under Armour Inc. (UA) 4Q .31 7:00AM
Western Union Co. (WU) 4Q .31 7:30AM
Wyeth (WYE) 4Q 0.790
Altera Corp. (ALTR) 4Q .18 4:15PM
Anheuser-Busch Cos. Inc. (BUD) 4Q .32
Apache Corp. (APA) 4Q 2.31 BMO
AstraZeneca PLC (AZN) 4Q .95 6:00AM
bebe Stores Inc. (BEBE) 2Q .26
Bristol-Myers Squibb Co. (BMY) 4Q .34
Callaway Golf Co. (ELY) 4Q (.18)
Colgate-Palmolive Co. (CL) 4Q .89
Columbia Sportswear Co. (COLM) 4Q 1.01
CVS Caremark Corp. (CVS) 4Q .55 BMO
E.W. Scripps Co. (SSP) 4Q .70 BMO
Electronic Arts Inc. (ERTS) 3Q .78 AMC
Flowers Foods Inc. (FLO) 4Q .21
Gold Fields Ltd. (GFI) 2Q .13 1:00AM
Goodrich Corp. (GR) 4Q .91 BMO
Google Inc. (GOOG) 4Q 4.09
Hologic Inc. (HOLX) 1Q .45 8:00AM
ImClone Syss Inc. (IMCL) 4Q .24
Intuitive Surgical Inc. (ISRG) 4Q 1.03
Key Energy Svcs Inc. (KEG) 4Q .29
L-3 Commun Hldgs Inc. (LLL) 4Q 1.60 BMO
Marathon Oil Corp. (MRO) 4Q 1.05
MasterCard Inc. (MA) 4Q .70
Mattel Inc. (MAT) 4Q .72 6:00AM
Monster Worldwide Inc. (MNST) 4Q .37 AMC
Nasdaq Stock Market Inc. (NDAQ) 4Q .46 7:00AM
Newell Rubbermaid Inc. (NWL) 4Q .45 BMO
Peabody Energy Corp. (BTU) 4Q .69
Procter & Gamble Co. (PG) 2Q .97
Raytheon Co. (RTN) 4Q .90 6:00AM
RF Micro Devices Inc. (RFMD) 3Q .05 4:00PM
Sony Corp. (SNE) 3Q 1.53
Starwood Hotels & Resorts (HOT) 4Q .67 BMO
Tesoro Corp. (TSO) 4Q .12
Under Armour Inc. (UA) 4Q .31 7:00AM
Western Union Co. (WU) 4Q .31 7:30AM
Wyeth (WYE) 4Q 0.790
Subprime-related losses may surpass $265 billion....
Standard & Poor's estimates that banks, credit unions and foreign financial institutions may be hit with more than $265 billion in losses from securities tied to subprime mortgages. S&P is reviewing credit ratings on $534-billion worth of CDOs and bonds.
The ratings agency said it expects the next round of writedowns will be by smaller financial firms in the U.S., Europe and Asia.
The ratings agency said it expects the next round of writedowns will be by smaller financial firms in the U.S., Europe and Asia.
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