Thursday's Summary....

U.S. Markets:

Dow -112.10 (-0.88%)
Nasdaq -22.21 (-0.94%)
S&P 500 -12.34 (-0.89%)

News That Moved the Market

GDP and Initial Job Claims Disappoints. The markets began the day lower off worse than expected economic data and never recovered. Before the bell, the preliminary GDP reading was released, coming in at 0.6%, slightly less than economists' expectations. The figure matched the initial estimates from last month. Additionally, initial job claims increased to 373,000 which was above forecasts. Combined with the data from the last couple days, things are beginning to look bleak. "We have absolutely no momentum going into the first quarter,'' said Josh Shapiro, chief U.S. at Maria Fiorini Ramirez Inc. "Things are looking pretty grim for the economy. If we're not in a recession already, we're very close."

Bernanke Speaks, Market Drops. Fed Chairman Ben Bernanke appeared before the Senate Finance Committee today and yet again caused a sell-off. Bernanke, while answering questions, said he thought the current economic environment was more challenging than the 2001 recession and believed oil would remain high. The markets noticeably sold off when he said some small U.S. banks may fail, though he said he believed larger banks would be able to survive.

Dell Misses Analysts' Targets. Dell (DELL, +0.5% day; -1.3% A.H.) reported a drop in fourth-quarter earnings after the bell. Net income fell 6%, while sales increased 10%; both the top and bottom-lines missed analysts' forecasts.

Sprint Falls On Unlimited Plan Offer. Sprint (S, -9.6%) jumped into the wireless price war by offering unlimited voice calls, data, and Web surfing for $99.99/month. The company reported a $29.5 billion loss after taking a enormous charge related to its acquisition of Nextel Communications. It also suspended its dividend.

Quick Tics:

Oil rallied 1.8% while gold traded at another all-time high

Kohl's (KSS, -3.5% day, -0.7% A.H.) missed analysts' targets and reported same-store sales were down after the bell.

Tomorrow Notable Earnings:

NONE

Economic Events:

8:30 AM: Personal Income
8:30 AM: Personal Spending
9:45 AM: Chicago PMI
10:00 AM: Consumer Sentiment

Dell Disappoints...

Dell Inc. (DELL) after the close reported a fourth-quarter profit of $679 million, or 31 cents a share, on revenue of $16 billion. During the year-ago period, Dell earned $726 million, or 32 cents a share, on $14.47 billion in revenue.

Analysts surveyed by FactSet Research had forecast Dell to earn 36 cents a share on sales of $16.24 billion. Dell said it expects to incur more costs as part of its business realignment plans and such actions could hurt its performance in the near term.

The stock is down slightly in after hours trading.

Another Large Hedge Fund Unwinds....

Prominent London Hedge Fund Liquidates Fund
Peloton Partners, a large London-based hedge fund, is liquidating one of its funds in the latest casualty of the credit crisis. The firm is in the process of alerting investors that is winding down its Peloton ABS fund.

In my opinion this is why last years high fliers are getting crushed of late. This is the 2nd large hedge fund in the last week to fold. They sell their assets with no regard for price. Exactly what we have seen since January 1.

Bush Speaking on TV again....

and once again the Market sells off.

It's amazing how much Wall Street hates this guy.

Dow -95
S&P -8
Nasdaq -11

Only one guy they hate as much (Bernanke) and he'll be speaking later....ohhh nooo!!!

Today's Notable Movers:

Netflix (NFLX) up 1.57 to $34.00- continues to run after yesterday's earnings beat

LG Philips (LPL) up 1.17 to 24.63 - no news released but stock is breaking higher on abnormal volume. They are becoming household name in electronic display and TVs

Apple (AAPL) up 4.69 to $127.64 - on positive comments about iphone sales

EOG Resources Inc. (EOG) up 12.89 to $118.50 - boosted its 2009 and 2010 organic production growth estimates to 13% to 15% from the previously stated annual average of 10%.

Earnings Due Today....

COMPANIES REPORTING EARNINGS

• American International Group (AIG). Expected to post Q4 earnings of $0.60 cents a share, according to analysts polled by Thomson Financial.

• Barr Pharmaceuticals Inc. (BRL). Expected to post Q4 profit of $0.74 a share.

• Cablevision Systems Corp. (CVC). Expected to report Q4 earnings of $0.11 a share.

• Cooper Tire & Rubber Co. (CTB). Expected to report Q4 profit of $0.36 a share.

• Dell Inc. (DELL). Expected to report Q4 earnings of $0.36 a share.

• Fluor Corp. (FLR). Expected to report Q4 earnings of $1.18 a share.

• Gap Inc. (GPS). Expected to report Q4 earnings of $0.35 a share.

• Hansen Natural Corp. (HANS). Expected to report Q4 profit of $0.38 a share.

• Kohl's Corp. (KSS). Expected to report Q4 profit of $1.30 per share.

• Leap Wireless International Inc. (LEAP). Expected to post Q4 loss of $0.17 a share.

• Liberty Media Holding Corp. (LINTA). Expected to post Q4 profit of $0.30 a share.

• Rowan Cos. (RDC). Expected to report Q4 profit of $1.18 a share.

• Universal Health Services Inc. (UHS). Expected to post Q4 profit of $0.70 a share.

• United Rentals Inc. (URI). Expected to report Q4 profit of $0.73 a share.

• Viacom Inc. (VIA). Expected to post Q4 earnings of $0.83 a share.

• XM Satellite Radio Holdings Inc. (XMSR). Expected to post Q4 loss of $0.63 a share.

Sears Profits Get Cut in Half...

Retailer's 4Q profit falls by nearly half to $426 million, or $3.17 a share, from last year's $811 million, or $5.27 a share, on a lower margins and 7% revenue drop on markdowns. Analysts were expecting earnings of $3.05 a share.

Not surprising if you have been in one of their stores lately.