U.S. Markets
Dow +178.83 (+1.45%)
Nasdaq +53.89 (+2.32%)
S&P 500 +18.35 (+1.36%)
News That Moved the Market
Retail Sales Shines. A better than expected retail sales figure fueled another rally Wednesday, the third gain in as many days for the Dow. The Commerce Department announced retail sales jumped by 0.3%, well ahead of the 0.3% decline expected. Auto and gasoline sales were the main catalysts for the number beating expectations. Though auto companies reported earlier in February that monthly sales declined from last month, the report showed motor vehicle sales increased by 0.6% by dollar value. On the news, markets traded higher, as investors seemed convinced that they can rely on the American consumer, even in such trying circumstances.
NY State Attorney General Targets Health Insurers. New York Attorney General Andrew Cuomo announced plans to sue UnitedHealth Group (UNH, -2.7%), the U.S.'s largest health insurer, and subpoena 16 other insurers to investigate illegitimate reimbursement practices. Cuomo said UnitedHealth limited payments to customers by claiming their medical charges were too high.
News Corp and Yahoo in Talks. In a new wrinkle to the story, Yahoo (YHOO, +1.0%) is now in talks with News Corp. (NWS, -0.5%) about a potential strategic alliance to fend off Microsoft's (MSFT, +2.2%) bid. Rupert Murdoch's media giant is exploring merging some of its online properties, including MySpace, with Yahoo in exchanging for a stake possibly greater than 20%. Details of the potential deal are still unclear, but it is hard to see News Corp. going through with a deal, especially because it is already struggling to integrate the Wall Street Journal.
Bush Signs Stimulus Plan. President Bush signed into law the $168 billion stimulus plan aimed to help the U.S. economy avoid a recession. Expect to receive rebates some time in May.
Tomorrow Notable Earnings
Comcast Corporation (CMCSA) Before Open
UBS (UBS) Before Open
Economic Events:
8:30 AM: Jobless Claims
8:30 AM: Trade Balance
Wednesday, February 13, 2008
Palm Pumps Centro; Analysts Wary...
Palm (PALM) CEO Ed Colligan said in an interview Wednesday sales of Centro, Palm's entry-level smart phone, have exceeded expectations. He said he believes Palm finally has the product it needs to penetrate the consumer market and conquer Europe, while downplaying the effects economic softness could have on consumer sales. Some analysts are skeptical the long-awaited device can spark a turnaround at the troubled company.
T-Mobile Dumps Google for Yahoo...
T-Mobile parent Deutsche Telecom (DT) said Tuesday it will drop Google (GOOG) in favor of Yahoo (YHOO) as search engine for its websites, making Yahoo the primary search engine for about 80 million European subscribers.
Convenient news for Yahoo...considering the Microsoft bid going on right now...
Convenient news for Yahoo...considering the Microsoft bid going on right now...
Boom in Display Screens Eases Applied Materials' Slump
Applied Materials (AMAT) reported a 35% drop in fiscal Q1 earnings, but orders were up 13% from Q4, well ahead of the company's forecast 5-15% decline. Shares gained 4.76% after hours.
The company is also shifting their attention to the Solar market. Applied's solar operations represents only a sliver of the company's total revenue, but it's growing at a rapid rate, especially in comparison to the company's sluggish core business of making chip equipment.
Applied Materials has aggressively moved into the solar market, seeking to become the industry's biggest equipment supplier.
That's two hot markets: Solar and Display Screens....
The company is also shifting their attention to the Solar market. Applied's solar operations represents only a sliver of the company's total revenue, but it's growing at a rapid rate, especially in comparison to the company's sluggish core business of making chip equipment.
Applied Materials has aggressively moved into the solar market, seeking to become the industry's biggest equipment supplier.
That's two hot markets: Solar and Display Screens....
RIMM Explains Outage....
Research In Motion (RIMM). The Canadian wireless communication solutions company said late Tuesday an early investigation of Monday's Blackberry service disruption indicated a problem with an internal data routing system within the Blackberry service infrastructure that had been recently upgraded. The upgrade was part of RIM's efforts to increase overall capacity, the company said.
Sounds like our company's email "upgrade" that we had in January that shut down our email for a week.
Sounds like our company's email "upgrade" that we had in January that shut down our email for a week.
First Solar Blows Away Estimates...
First Solar Inc. (FSLR). The Phoenix-based solar electric power module maker said fourth-quarter net income rose to $62.9 million, or $0.77 a share, beating the mean estimate of analysts polled by Thomson Financial of $0.53 a share. A year ago, the company posted net income of $8 million, or $0.11 a share, in the quarter. Revenue rose to $200.8 million from $52.7 million.
FSLR is up 25 points to $200 in premarket trading. This is a hot, but dangerous group. Long term, probably a good place to put money.
FSLR is up 25 points to $200 in premarket trading. This is a hot, but dangerous group. Long term, probably a good place to put money.
Blue Nile Falls on 1Q Outlook....
Shares of Blue Nile Inc. (NILE) fell 19% to $43.61 after the online jewelry retailer forecast first-quarter results that missed analysts' expectations. The Seattle company said it expects first-quarter earnings between 11 cents and 14 cents a share and sales to be "relatively flat" with first-quarter results. Analysts expect, on average, earnings of 23 cents a share on revenue of $82 million.
The company also said its fourth-quarter net income rose 31% to $7.5 million, or 45 cents a share, from $5.8 million, or 35 cents a share, a year earlier. Revenue increased 23% to $111.9 million. Analysts expected, on average, earnings of 44 cents a share on revenue of $113 million.
In addition, the board authorized an additional $100 million to repurchase shares of its common stock over the next two years. The company also named President Diane Irvine to the additional role of chief executive. She succeeds Mark Vadon, who was named executive chairman.
I could swear Blue Nile's CEO was just on CNBC two weeks ago saying how great business was......anyway....this is a retailer, right...retailers are supposed to have flat to lower earnings in the quarter following the Xmas Quarter...what are these analysts thinking??? This is probably an overreaction and a buying opportunity.
The company also said its fourth-quarter net income rose 31% to $7.5 million, or 45 cents a share, from $5.8 million, or 35 cents a share, a year earlier. Revenue increased 23% to $111.9 million. Analysts expected, on average, earnings of 44 cents a share on revenue of $113 million.
In addition, the board authorized an additional $100 million to repurchase shares of its common stock over the next two years. The company also named President Diane Irvine to the additional role of chief executive. She succeeds Mark Vadon, who was named executive chairman.
I could swear Blue Nile's CEO was just on CNBC two weeks ago saying how great business was......anyway....this is a retailer, right...retailers are supposed to have flat to lower earnings in the quarter following the Xmas Quarter...what are these analysts thinking??? This is probably an overreaction and a buying opportunity.
Venezuela Suspends Exxon Oil Shipments
Venezuela says it will suspend oil shipments to Exxon Mobil in an escalating dispute that pits the world's biggest oil company against a country with one of the planet's biggest reserves of oil and a major supplier to the U.S.
Oil has spiked over the last few days from the high 80's to $93.11 this morning as a result of this situation.
Oil has spiked over the last few days from the high 80's to $93.11 this morning as a result of this situation.
ERTS Pledges 50% Higher Revenues in 3 Years...
Electronic Arts Inc. (ERTS), seeking to bolster investor enthusiasm after several years of lackluster financial performance, said it plans to exceed $6 billion in annual revenue in three years, or more than 50% higher than expected revenue for its current fiscal year.
Such an increase would restore solid growth at EA, maker of well-known videogame franchises such as Madden NFL football and the Sims. In recent years, EA has shown little in profits and revenue growth as it struggled with high development costs, poor reviews and weak sales for some games.
Investors reacted positively to the news, sending EA's shares up $2.50, or 5.4%, to $48.85 in trading on the Nasdaq Stock Market.
At an event for Wall Street analysts at its Silicon Valley campus in Redwood City Tuesday, a new management team at EA -- including John Riccitiello, who joined EA as chief executive last April -- for the first time collectively presented its plans for the coming years. In their presentations, Riccitiello and other executives announced plans to contain costs for games by sending more development overseas, improve the quality of its titles and to make new games that are easier to play for consumers who aren't avid gamers.
"Our company has not delivered in the last three years in any way acceptable for shareholders," Riccitiello said.
This guy sounds like a politician, with these promises. He must think they have some hot games in the pipeline.
Such an increase would restore solid growth at EA, maker of well-known videogame franchises such as Madden NFL football and the Sims. In recent years, EA has shown little in profits and revenue growth as it struggled with high development costs, poor reviews and weak sales for some games.
Investors reacted positively to the news, sending EA's shares up $2.50, or 5.4%, to $48.85 in trading on the Nasdaq Stock Market.
At an event for Wall Street analysts at its Silicon Valley campus in Redwood City Tuesday, a new management team at EA -- including John Riccitiello, who joined EA as chief executive last April -- for the first time collectively presented its plans for the coming years. In their presentations, Riccitiello and other executives announced plans to contain costs for games by sending more development overseas, improve the quality of its titles and to make new games that are easier to play for consumers who aren't avid gamers.
"Our company has not delivered in the last three years in any way acceptable for shareholders," Riccitiello said.
This guy sounds like a politician, with these promises. He must think they have some hot games in the pipeline.
Ambac Turns Down Buffett Reinsurance Offer
Says it welcomes any "constructive offers to deal with the current uncertain environment." But deal offered by Buffett's Berkshire Hathaway "would result in little to no net capital relief to support Ambac's ratings."
Buffett is wanting to purchase the Municipal Bond Insurance Portion of Ambac's portfolio...Problem is that Municipal Bonds are highly unlikely to default. That is the most reliable part of the business.
Buffett is wanting to purchase the Municipal Bond Insurance Portion of Ambac's portfolio...Problem is that Municipal Bonds are highly unlikely to default. That is the most reliable part of the business.
Legg Mason urges Microsoft to enhance offer for Yahoo
Legg Mason, Yahoo's second largest shareholder, said it wants Microsoft to increase its offer. Prominent Legg Mason fund manager Bill Miller said "Microsoft will need to enhance its offer if it wants to complete a deal." But he also said it "will be hard for Yahoo to come up with alternatives that deliver more value than Microsoft will be willing to pay."
Yahoo's stock is up from $19 to $29 since the deal was announced. Yahoo better not get too greedy or they may find their stock right back down near $20 again.
Yahoo's stock is up from $19 to $29 since the deal was announced. Yahoo better not get too greedy or they may find their stock right back down near $20 again.
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