Things were going well on Friday until the announcement of Spain's debt downgrade. Alot of nervous nellies out there.
Saturday, May 29, 2010
Friday, May 28, 2010
Ideas for the weekend: ULTA
Ulta Salon, Cosmetics & Fragrance, Inc. operates as a retailer of prestige, mass and solon products in the united States. The company was founded in 1990, operates 346 stores in 36 states and has a market cap of $1.35 billion.
Ulta gained in a couple of key categories, with operating income up 60% to $34 million and same-store sales up 6.2%. Free cash flow was $105 million.
Looking forward Ulta is ready to capitalize on its upward momentum, with plans to open 46 stores, remodel 13 and relocate 6 in 2010.
Estimates Jump
Estimates have been on the rise for the last few months, with the current year adding 15 cents to 85 cents. The next-year estimate is up 23 cents to $1.04, a solid 22% growth projection.
Netapp, Inc.
NetApp is seen riding a wave of growing corporate IT spending, including stronger demand for data storage products as companies embrace cloud computing which allows businesses to access computing power through a network instead of in-house data centers.
Companies are also embracing virtualization which enables them to tap disparate computer systems on their premises or in hosted data centers as one network and use that computing capacity based on needs.
NetApp reported fiscal fourth-quarter income of $145.1 million, or 40 cents a share, compared with a profit of $68.4 million, or 21 cents a share, for the year-earlier period. Revenue rose to $1.17 billion from $879.6 million. Adjusted income was 50 cents a share.
SXC Health Solutions
SXC Health Solutions
•The company logged some triple-digit earnings growth gains last year. Earnings growth has slowed in recent quarters, but at 34% last quarter it's still above the 25% minimum typically seen in winning growth stocks.
•Sales growth has accelerated during the past two quarters, which is a positive.
•For the full year, analysts see earnings rising just 8%, so that's something to factor in. And they predict earnings will rise 30% next year.
Market closes lower ahead of long weekend....
Stocks closed out their worst May since 1962 by sliding again on more unsettling news about Europe.
Closing numbers:
Dow -122.36
Nas -20.64
S&P - 13.65
Closing numbers:
Dow -122.36
Nas -20.64
S&P - 13.65
What You Talkin' About Willis???
Gary Coleman, the child star of the TV sitcom Diff'rent Strokes, died Friday after suffering an intercranial hemorrhage. He was 42. Utah Valley Regional Medical Center spokeswoman Janet Frank says life support was terminated and Coleman died at 12:05 p.m. Coleman was hospitalized Wednesday after falling and suffering a head injury at his home south of Salt Lake City, according to family members.
Truly one of the classic TV characters of all time....
Truly one of the classic TV characters of all time....
Fitch Downgrades Spain Debt....
This shouldn't be any real surprise, but the Dow sold off over 100 points in 5 minutes as this news hit the wire. Traders are really whipping this market around. There is no conviction, it seems...so it's probably best at this point to ignore it and just go home for the weekend.
At 1:15 pm:
Dow -99
Nas -24
S&P -11
At 1:15 pm:
Dow -99
Nas -24
S&P -11
Time Warner (TWX) needs to be more aggressive...
The WSJ’s Heard on the Street thinks that Time Warner needs to be more aggressive in packaging its digital entertainment; for example – creating a subscription only model for HBO in order to compete with NFLX.
Rough Hurrican Season Forecast....
US warns of worst hurricane season since 2005 – The Atlantic storm season could be the most intense since 2005 when Hurricane Katrina killer over 1,000 people and disrupted oil production in the Gulf, according to the NOAA. The NOAA is forecasting 14-23 named storms, of which 8-14 could develop into hurricanes, close to 2005’s record of 15.
Does this include all the Oil spilling into the Gulf???
OPEC crude-oil output rose to a 17 month high in May according to a Bloomberg survey. Production rose 187K barrels.
Dow on Pace for Worst May in 48 years....
Dow on pace for worst May since 1962
May action:
DJIA -6.80%
SP500 -7.10%
Nas -7.46%,
May action:
DJIA -6.80%
SP500 -7.10%
Nas -7.46%,
Latest numbers show outflows out of equity funds...
Fund Flows - US equity funds (including ETFs) saw sharp outflows again this week of -$13.7b, the second consecutive week of large outflows. The large outflows over the past two weeks totaling -$21.2b have wiped out most of the inflows over the prior 13 weeks; Excluding the impact of ETFs, the outflows were still significant at -$4.2b
After an Hour of Trading.....
Dow -33.79
Nas -4.38
S&P -2.84
Gainers:
NFLX +4.15 to $113
AAPL +4.64 to $259
JCG + 2.13 to $46
SXCI + 1.32 to $74
ULTA +1.16 to $25.75
Nas -4.38
S&P -2.84
Gainers:
NFLX +4.15 to $113
AAPL +4.64 to $259
JCG + 2.13 to $46
SXCI + 1.32 to $74
ULTA +1.16 to $25.75
Sweatshop has a Heart Afterall....
Faced with an escalating management crisis following a spate of worker suicides, iPhone maker Foxconn Technology Group will increase employees' wages at its China operations by 20%, according to media reports Friday.
Commodity Stocks Downgraded...
• AK Steel (AKS) price target cut to $17 from $22; rating hold at Deutsche Bank
• Monsanto Co. (MON) price target cut to $60 from $82; rating buy at Deutsche Bank
• Nucor Corp. (NUE) price target cut to $50 from $53; rating buy at Deutsche Bank
• United States Steel Corp. (X) price target cut to $65 from $85; rating buy at Deutsche Bank
• Monsanto Co. (MON) price target cut to $60 from $82; rating buy at Deutsche Bank
• Nucor Corp. (NUE) price target cut to $50 from $53; rating buy at Deutsche Bank
• United States Steel Corp. (X) price target cut to $65 from $85; rating buy at Deutsche Bank
J Crew Beats and Raises...
J Crew Group Inc. (JCG). The apparel retailer posted a first-quarter profit on Thursday that topped Wall Street estimates and raised its full-year outlook. The company boosted its full-year earnings forecast to $2.35 to $2.45 per share from $2.20 to $2.30 per share previously.
CVS Overcharging for Prescriptions...
CVS Caremark Corp. (CVS). The company has been charging some customers of its SilverScript Medicare prescription-drug programs higher prices than they were promised when they signed up for the plans in late 2009, the WSJ reported on Thursday.
Apple Launches IPad overseas...
Apple Inc. (AAPL). The company’s iPad launched in overseas store shelves on Friday, with buyers storming Japanese and Australian shops to be among the first outside the United States to snap up the long awaited tablet PC.
Thursday, May 27, 2010
Market Breadth Numbers...
Impressive Breadth numbers. Nasdaq Advancing Volume 21 times Declining Volume. Market made a little bump higher in the last hour as it became apparent that there would be no selloff. Shorts decided to cover before the close. We need to see a few of these type days in a row to shift the sentiment to positive.
Market closes broadly higher....
Market recap: Stocks zoomed higher and closed at session highs after China reassured investors that it doesn't plan to sell its massive holdings of European debt. Advancers outnumbered decliners more than seven to one on heavy volume.
Dow +284 to 10258
Nas +81 to 2277
S&P +35 to 1103
Dow +284 to 10258
Nas +81 to 2277
S&P +35 to 1103
Lincoln Mercury line to be dropped by Ford....
Mercury is set to join Pontiac, Saturn, Oldsmobile and Plymouth in the great junkyard in the sky, as Ford (F) prepares to kill its "forgotten" 70-year-old brand.
Hopefully they won't get rid of the Mercury girl (Jill Wagner) on their commercials...
Hopefully they won't get rid of the Mercury girl (Jill Wagner) on their commercials...
I-Phones Being Used more by Businesses....
AT&T Inc (T) said on Thursday that 40 percent of its iPhone sales since the beginning of the year have been to business customers, suggesting that the phone is encroaching on an area dominated by Research in Motion's (RIMM) BlackBerry.
AT&T also generates almost half of its total revenue from business customers, said Ron Spears, the head of the company's business services, at an investor conference.
The company would not say how many iPhones it sold during that period.
Analysts estimate that AT&T, which started selling iPhone in 2007, has about 15 million iPhone users or 17 percent of its total customer base. RIM reported a total customer base of about 41 million for the BlackBerry in its most recent quarterly report.
AT&T also generates almost half of its total revenue from business customers, said Ron Spears, the head of the company's business services, at an investor conference.
The company would not say how many iPhones it sold during that period.
Analysts estimate that AT&T, which started selling iPhone in 2007, has about 15 million iPhone users or 17 percent of its total customer base. RIM reported a total customer base of about 41 million for the BlackBerry in its most recent quarterly report.
Earnings Preview for Novell....
Novell (NOVL) is expected to report Q2 earnings after the market close on Thursday, May 27, with a conference call scheduled for 5 pm ET.
Guidance
The consensus estimate is 7c for EPS and $204.85M for revenue, according to First Call. A number of private equity firms have been "kicking the tires" on Novell after the company announced in March that it will review alternatives to enhance shareholder value, including a potential sale of the company. This comes after Elliott Associates' $2B bid was rejected as "inadequate". Elliott already owns 8.5% of Novell. Since then, the Wall Street Journal reported that 20 bidders have been eyeing the company. Last week was the deadline for interested parties to submit bids, but the auction is expected to take longer.
Novell has four separate businesses, each of which could be attractive to a rival technology company. Speculation is that it's unlikely that a tech company would bid for all of Novell. A private equity firm could break up Novell, and either sell off the pieces or run them as standalone businesses. Given this latest auction action, Q2 results will be irrelevant. Nevertheless, management provided Q2 guidance on their last earnings call for a non-GAAP operating margin of 12%-15% and revenue similar to Q1's $202.4M. Novell came in a bit light last quarter, so expectations aren't high for a Q2 upside.
Guidance
The consensus estimate is 7c for EPS and $204.85M for revenue, according to First Call. A number of private equity firms have been "kicking the tires" on Novell after the company announced in March that it will review alternatives to enhance shareholder value, including a potential sale of the company. This comes after Elliott Associates' $2B bid was rejected as "inadequate". Elliott already owns 8.5% of Novell. Since then, the Wall Street Journal reported that 20 bidders have been eyeing the company. Last week was the deadline for interested parties to submit bids, but the auction is expected to take longer.
Novell has four separate businesses, each of which could be attractive to a rival technology company. Speculation is that it's unlikely that a tech company would bid for all of Novell. A private equity firm could break up Novell, and either sell off the pieces or run them as standalone businesses. Given this latest auction action, Q2 results will be irrelevant. Nevertheless, management provided Q2 guidance on their last earnings call for a non-GAAP operating margin of 12%-15% and revenue similar to Q1's $202.4M. Novell came in a bit light last quarter, so expectations aren't high for a Q2 upside.
MSFT NOT presenting at AAPL conference...
Microsoft (MSFT) uses its Twitter account to dispel speculation Steve Ballmer will be taking the stage at Apple's (AAPL) June 7 developer conference: "Steve Ballmer not speaking at Apple Dev Conf. Nor appearing on Dancing with the Stars. Nor riding in the Belmont. Just FYI."
Noon Update...
The stock market continues to trade near its session high as only a handful of names are weak with losses. In turn, stocks remain on track for their best single-session percentage gain in two weeks. Despite such an accomplishment, the stock market is up only slightly more than 0.5% week-to-date and down almost 8% month-to-date. Trading volume is strong this session. Advancing volume currently outnumbers declining volume by more than 10-to-1 on the Big Board.
DJ30 +213.19
NASDAQ +58.71
SP500 +25.35
DJ30 +213.19
NASDAQ +58.71
SP500 +25.35
Mortgage Rates Dropping...
The recent flight to safety in Fixed Income is driving down mortgage rates for the fifth straight week, to an average 4.78% for a 30-year fixed-rate loan, Freddie Mac reports.
What the Hell???
A Foxconn Technology worker tried to kill himself Thursday, becoming the 13th person to commit suicide or attempt to do so this year at the company, which makes high-tech products for industry giants such as Apple, Dell and Hewlett-Packard, state media said.
Police said the man survived after cutting himself in his dormitory room at the factory, the official Xinhua News Agency reported. It said the 25-year-old man, surnamed Chen, migrated from central Hunan province and began working at Foxconn two months ago.
The 12 previous suicide attempts at Foxconn Technology Group's operations in southern China involved workers who jumped from buildings. Two survived. Another worker killed himself in January at a factory in northern China.
On Wednesday night, a 23-year-old worker from the northwestern province of Gansu killed himself by leaping from a dormitory balcony. Hours earlier, Foxconn Chairman Terry Gou had led a media tour of the industrial park and promised to work harder to prevent more deaths. Gou said he couldn't sleep at night and dreaded answering his phone in off hours, fearing more news about deaths.
Gou said the company would do everything possible to prevent more deaths. Safety nets were being installed on buildings and more counselors were being hired. He also said all the employees were being divided into 50-member groups, whose members would watch for signs of emotional trouble within their group.
Labor activists accuse the company of having a rigid management style, a too-fast assembly line and overwork. Foxconn denies the allegations.
Police said the man survived after cutting himself in his dormitory room at the factory, the official Xinhua News Agency reported. It said the 25-year-old man, surnamed Chen, migrated from central Hunan province and began working at Foxconn two months ago.
The 12 previous suicide attempts at Foxconn Technology Group's operations in southern China involved workers who jumped from buildings. Two survived. Another worker killed himself in January at a factory in northern China.
On Wednesday night, a 23-year-old worker from the northwestern province of Gansu killed himself by leaping from a dormitory balcony. Hours earlier, Foxconn Chairman Terry Gou had led a media tour of the industrial park and promised to work harder to prevent more deaths. Gou said he couldn't sleep at night and dreaded answering his phone in off hours, fearing more news about deaths.
Gou said the company would do everything possible to prevent more deaths. Safety nets were being installed on buildings and more counselors were being hired. He also said all the employees were being divided into 50-member groups, whose members would watch for signs of emotional trouble within their group.
Labor activists accuse the company of having a rigid management style, a too-fast assembly line and overwork. Foxconn denies the allegations.
OMG....
Google has started a trading floor to manage its $26.5 billion in cash and short-term investments.
This strikes me as being quite funny...
This strikes me as being quite funny...
Crystal was robbed....
Lee DeWyze won the 9th season of “American Idol” in the final episode for judge Simon Cowell. The ratings for “American Idol” will be down ~9% this season, which Fox Chairman Peter Rice said is “pretty good”, compared to other shows. Cowell plans to return to Fox next year with his new show, “The X Factor.”
Moody's still not out of the woods....
Greenlight’s David Einhorn is still shorting Moody's (MCO). Einhorn has been critical on Moody’s decision making process, and noted that S&P has some of the same problems. Einhorn also believes that the European debt crisis could also bring more problems for the rating agencies.
Monsanto down as Roundup patent expires...
Monthly chart on Monsanto doesn't look pretty since announcement that Roundup patent is expiring.Disney axes the Soap Channel...
DIS will close their 10 year old cable channel SoapNet, which will be replaced by Disney Junior in 2012. Programming on the Disney Channel and ~24 Playhouse Disney international channels will be re- branded as Disney Junior next year.
I was wondering if anyone actually watched reruns of Soaps at night.
I was wondering if anyone actually watched reruns of Soaps at night.
What up with Yahoo???
Stock is down fractionally this morning while the rest of Tech is rallying big time. You have to wonder about Carol Bartz directing F-Bombs at a reporter in a live interview on Tuesday.
There has to be some hidden pressure there....
There has to be some hidden pressure there....
Oil Rig Insurance rises....
WR Berkley (WRB) is boosting premiums on deep water oil rig insurance by ~40% after the large oil spill in the Gulf.
No surprise here, but at least you now have a name.
No surprise here, but at least you now have a name.
Austrailia may soften mine tax....
Australia may soften blow of mine tax – Australia left the possibility of concessions to its 40% super profits tax after newspapers said it would change the way the tax is calculated to give a little support to miners. The gov’t currently defines “super profits” as any return on assets above 5.3%, but that could be doubled to 12%.
This would be big, as many mining stocks have sold off hard since the tax was proposed. Stocks like Rio Tinto (RTP), Cliffs (CLF) and Freeport (FCX) should be beneficiaries.
This would be big, as many mining stocks have sold off hard since the tax was proposed. Stocks like Rio Tinto (RTP), Cliffs (CLF) and Freeport (FCX) should be beneficiaries.
Caterpillar sold out of mining equipment....
CAT - Mining equipment sold out until next year – Not even halfway through 2010, CAT has already sold out of some of its largest mining vehicles due to rising commodity prices and is now taking orders for 2011 delivery. Although the momentum was strong early this year, recent price drops in commodities over the past few weeks might suggest the rally is short lived.
Netapp gets two upgrades....
Netapp Inc. (NTAP) price target raised to $39 from $36; rating neutral at BOFA Merrill. Price target raised to $38 from $36; rating equal-weight at Barclays
Coinstar lowers forecast....
Coinstar Inc. (CSTR). The redbox owner sold its electronic payment services business to InComm for $40 million and cut its second-quarter forecast to account for the sale. The company now expects earnings from continuing operations of 28 cents to 32 cents a share, on revenue of $363 million to $383 million for the quarter.
Not sure why they reported this the way they did. The company IS receiving $40 Million in Cash...unless they made a bad deal, this is probably good news.
Not sure why they reported this the way they did. The company IS receiving $40 Million in Cash...unless they made a bad deal, this is probably good news.
Earnings released last night....
Jo-Ann Stores Inc.(JAS) said its first-quarter profit more than doubled to $18.2 million, or 66 cents a share, from $8.6 million, or 33 cents, a year ago. Revenue rose 4.4% to $480.3 million from $460 million. Same-store sales increased 4.1% from a year earlier.
McKesson Corp. (MCK) said it raised the quarterly dividend by 50% to 18 cents a share. The dividend will be paid on July 1 to shareholders of record on June 10.
NetApp Inc. (NTAP) reported fiscal fourth-quarter income of $145.1 million, or 40 cents a share, compared with a profit of $68.4 million, or 21 cents a share, for the year-end period. Revenue rose to $1.17 billion from $879.6 million.
Jamba Inc. (JMBA), parent of the Jamba Juice smoothie retail chain, reported a first-quarter net loss of $7 million, or 13 cents a share. In the year-earlier period, Jamba lost $10.2 million, or 19 cents a share. Sales fell to $80.4 million from $88.8 million partly due to a lower store count.
McKesson Corp. (MCK) said it raised the quarterly dividend by 50% to 18 cents a share. The dividend will be paid on July 1 to shareholders of record on June 10.
NetApp Inc. (NTAP) reported fiscal fourth-quarter income of $145.1 million, or 40 cents a share, compared with a profit of $68.4 million, or 21 cents a share, for the year-end period. Revenue rose to $1.17 billion from $879.6 million.
Jamba Inc. (JMBA), parent of the Jamba Juice smoothie retail chain, reported a first-quarter net loss of $7 million, or 13 cents a share. In the year-earlier period, Jamba lost $10.2 million, or 19 cents a share. Sales fell to $80.4 million from $88.8 million partly due to a lower store count.
Earnings due today....
Costco (COST) is expected to report earnings of 66 cents a share in the first quarter, according to analysts surveyed by FactSet Research.
Tiffany (TIF) is forecast to report earnings of 35 cents a share in the first quarter.
J.Crew (JCG) is projected to report earnings of 57 cents a share in the first quarter.
H.J. Heinz Co. (HNZ) is likely to report earnings of 64 cents a share in the first quarter.
Guess Inc. (GES) is expected to report earnings of 49 cents a share in the first quarter.
Tiffany (TIF) is forecast to report earnings of 35 cents a share in the first quarter.
J.Crew (JCG) is projected to report earnings of 57 cents a share in the first quarter.
H.J. Heinz Co. (HNZ) is likely to report earnings of 64 cents a share in the first quarter.
Guess Inc. (GES) is expected to report earnings of 49 cents a share in the first quarter.
Jones Soda to be sold in WalMart stores....
Jones Soda (JSDA) up a whopping 62% premarket after inking a deal with Wal-Mart (WMT) to sell its products in WMT's 3,800 U.S. stores. Jones says customers' biggest complaint had been "that people can’t find Jones Soda near them."
JNJ could face criminal charges...
FDA is considering criminal charges against Johnson & Johnson (JNJ) following its wide-ranging recall of children's Tylenol and other medicines.
Costco Beats....
Costco beats by $0.02, reports revs in-line (COST) 55.98 : Reports Q3 (May) earnings of $0.68 per share, $0.02 better than the Thomson Reuters consensus of $0.66; revenues rose 12.5% year/year to $17.78 bln vs the $17.62 bln consensus. Comparable sales for 3Q increased 10%.
Good Morning...
At 8:35 am:
S&P futures vs fair value: +15.00. Nasdaq futures vs fair value: +31.30. Stock futures are off of their morning highs, but they continue to trade with strength in the wake of the latest dose of data. The second estimate for first quarter GDP showed that the economy expanded at an annualized rate of 3.0%, which is down from the 3.2% increase that came with the advance estimate.
S&P futures vs fair value: +15.00. Nasdaq futures vs fair value: +31.30. Stock futures are off of their morning highs, but they continue to trade with strength in the wake of the latest dose of data. The second estimate for first quarter GDP showed that the economy expanded at an annualized rate of 3.0%, which is down from the 3.2% increase that came with the advance estimate.
Wednesday, May 26, 2010
Final Market Breadth Numbers...
Breadth was positive all day until the final hour. ...you can see the Nasdaq Declining Volume overtook Advancing Volume. We are in one of those periods where no one has any conviction...so traders are opening positions premarket and closing them out before the market closes. Kind of irritating.What was that????
The market sells off in the last hour to close down on the day. Program trading is in high gear!!!
Dow - 69 to 9974
Nas - 15 to 2195
S&P -6 to 1068
Dow - 69 to 9974
Nas - 15 to 2195
S&P -6 to 1068
Ulta Salon, Cosmetics....
Here's another favorite stock. Nice weekly chart. Stock is climbing again today despite getting a downgrade this morning from Thomas Weisel.J Crew Downgraded at BMO....
J. Crew Group may have a solid following among consumers, with a strong product lineup and brand identity, but BMO Capital said Wednesday that the retailer may have maxed out its growth opportunities for now.
THE OPINION: Analyst John Morris said J. Crew has delivered above-average returns recently as it captured market share from department stores but its strengths are already recognized in its stock price. And the company faces a tough second half of the year if the overall retail business slows.
THE STOCK: J. Crew's stock fell $1.96, more than 4 percent, to $42.73 in midday trading Wednesday. Morris lowered his rating on the company to "Market Perform" from "Outperform" and lowered his price target from $55 to $48. He also lowered its 2010 guidance to $2.45 from $2.50 and 2011 estimate to $2.82 from $2.92.
THE OPINION: Analyst John Morris said J. Crew has delivered above-average returns recently as it captured market share from department stores but its strengths are already recognized in its stock price. And the company faces a tough second half of the year if the overall retail business slows.
THE STOCK: J. Crew's stock fell $1.96, more than 4 percent, to $42.73 in midday trading Wednesday. Morris lowered his rating on the company to "Market Perform" from "Outperform" and lowered his price target from $55 to $48. He also lowered its 2010 guidance to $2.45 from $2.50 and 2011 estimate to $2.82 from $2.92.
Apple overtakes Microsoft in Market Cap....
Apple, the maker of iPods, iPhones and iPads, overtook Microsoft, the computer software giant, on Wednesday to become the world’s most valuable technology company.
In intraday trading shortly after 2:30 p.m., Apple shares rose 1.8 percent, which gave the company a value of $227.1 billion. Shares of Microsoft declined about 1 percent, giving the company a market capitalization of $226.3 billion. (Let's see if it holds up).
The only American company valued higher is Exxon Mobil, with a market capitalization of $282 billion.
In intraday trading shortly after 2:30 p.m., Apple shares rose 1.8 percent, which gave the company a value of $227.1 billion. Shares of Microsoft declined about 1 percent, giving the company a market capitalization of $226.3 billion. (Let's see if it holds up).
The only American company valued higher is Exxon Mobil, with a market capitalization of $282 billion.
Why the VMWare move???
VMware Inc. shares rose Wednesday after an analyst upgraded the virtual desktop service provider, saying the company is in a better position than many other software companies.
THE SPARK: In a note to investors Wednesday, RBC Capital Markets analyst Robert Breza upgraded VMware shares to "Outperform" from "Sector Perform" and raised his price target by $12 to $75.
THE BIG PICTURE: Companies are shifting toward virtualization because it helps them cut data center costs. Instead of needing one server for each task, software such as that offered by VMware lets one server computer do many more things simultaneously. Virtualization is also extending beyond servers in data centers to applications and even whole desktops.
THE ANALYSIS: Breza said VMware is "one of the best-positioned software companies" and he expects it to gain from several technology trends in the next several years, such as growth in cloud-computing applications. He also thinks its enterprise license agreement is "under-appreciated by investors" and could result in the company raising its earnings estimates this year.
THE SPARK: In a note to investors Wednesday, RBC Capital Markets analyst Robert Breza upgraded VMware shares to "Outperform" from "Sector Perform" and raised his price target by $12 to $75.
THE BIG PICTURE: Companies are shifting toward virtualization because it helps them cut data center costs. Instead of needing one server for each task, software such as that offered by VMware lets one server computer do many more things simultaneously. Virtualization is also extending beyond servers in data centers to applications and even whole desktops.
THE ANALYSIS: Breza said VMware is "one of the best-positioned software companies" and he expects it to gain from several technology trends in the next several years, such as growth in cloud-computing applications. He also thinks its enterprise license agreement is "under-appreciated by investors" and could result in the company raising its earnings estimates this year.
NCR continues to go after DVD market....
Blockbuster's DVD vending machines will be installed at more than 100 grocery stores in Texas.
NCR Corp., which operates the rental kiosks for Blockbuster, said Wednesday that the machines will come to 105 Tom Thumb and Randalls stores in Dallas, Austin and Houston by the end of May as replacements for existing DVDPlay kiosks.
NCR bought DVDPlay in December, and since then has been working to replace DVDPlay kiosks with Blockbuster Express kiosks.
The kiosk rollout is part of Blockbuster's effort to catch up with Redbox, the Coinstar Inc. subsidiary that pioneered $1-per-night rentals from vending machines.
NCR Corp., which operates the rental kiosks for Blockbuster, said Wednesday that the machines will come to 105 Tom Thumb and Randalls stores in Dallas, Austin and Houston by the end of May as replacements for existing DVDPlay kiosks.
NCR bought DVDPlay in December, and since then has been working to replace DVDPlay kiosks with Blockbuster Express kiosks.
The kiosk rollout is part of Blockbuster's effort to catch up with Redbox, the Coinstar Inc. subsidiary that pioneered $1-per-night rentals from vending machines.
Market still up, but fading....
Stocks are paring their gains on Wednesday after investors bought shares of beaten-down companies following recent losses, and after new home sales rose last month to their highest in almost two years.
SXC Health Solutions...
SXCI is another stock I love. SXC Health Solutions Corp. provides pharmacy benefit management (PBM) services and healthcare information technology solutions in North America. Very strong earnings and revenue growth.
VM Ware Chart is looking strong....
The stock is now up 4.00 today to $65.30. You can see it is breaking out to New Highs.Amazon Kindle Losing momentum...
AMZN – from WSJ Heard on the Street; the Kindle is losing momentum to Apple and its
iPad and Touch; AMZN mgmt appeared to lower expectations for the Kindle at its
shareholder meeting Tues; AMZN valuation still rich.
iPad and Touch; AMZN mgmt appeared to lower expectations for the Kindle at its
shareholder meeting Tues; AMZN valuation still rich.
New Home Sales Better than Expected...
Apr. New Home Sales: +14.8% to 504K vs. 425K expected, 439K (revised) in March. Months' supply 5 vs. 6.7 prior. Median price $198,400.
Here's a Strange Story for you....
Apple Inc. said Wednesday that it is independently investigating how one of its Taiwan suppliers is dealing with nine suicides among its workers in China.
The object of the investigation is Hon-Hai Precision Industry Inc., which does business as Foxconn and assembles Apple (NASDAQ:AAPL) products including the iPhone and MacBook. It also does work for Dell Inc., Sony Corp. and Nokia Corp.
The Apple investigation comes after nine Hon-Hai workers in Shenzhen died from falls at buildings that have been confirmed as suicides. This has raised concerns about working conditions in the factories.
Hon Hai founder and chairman Terry Gou on Wednesday outlined a series of safety precautions the company is instituting, including installing 1.5 million square meters of safety nets around the outsides of all worker dormitories.
He has rejected characterizations of his factories as "sweat shops" and said it is difficult to manage a work force of 800,000 people, but the company is taking steps.
The object of the investigation is Hon-Hai Precision Industry Inc., which does business as Foxconn and assembles Apple (NASDAQ:AAPL) products including the iPhone and MacBook. It also does work for Dell Inc., Sony Corp. and Nokia Corp.
The Apple investigation comes after nine Hon-Hai workers in Shenzhen died from falls at buildings that have been confirmed as suicides. This has raised concerns about working conditions in the factories.
Hon Hai founder and chairman Terry Gou on Wednesday outlined a series of safety precautions the company is instituting, including installing 1.5 million square meters of safety nets around the outsides of all worker dormitories.
He has rejected characterizations of his factories as "sweat shops" and said it is difficult to manage a work force of 800,000 people, but the company is taking steps.
Upcoming Earnings...
Wed May 26:
After the close (NetApp, Verifone);
Thurs May 27:
Before the open (Lenovo, Genesco, Heinz, Big Lots, Costco);
After the close (Blue Coat Systems, J. Crew);
Fri May 28:
Before the open (Mentor Graphics)
After the close (NetApp, Verifone);
Thurs May 27:
Before the open (Lenovo, Genesco, Heinz, Big Lots, Costco);
After the close (Blue Coat Systems, J. Crew);
Fri May 28:
Before the open (Mentor Graphics)
Toll Brothers with Mixed Results...
Toll Brothers (TOL):
Mixed result here as the earnings miss, revenue miss, gross margin miss, higher charges, and lower closings; however, The new orders number was well ahead of the street and the company's outlook was pretty upbeat.
FQ2 EPS of -$0.24 misses by $0.01. Revenue of $311M (-21.9%) vs. $322M.
Mixed result here as the earnings miss, revenue miss, gross margin miss, higher charges, and lower closings; however, The new orders number was well ahead of the street and the company's outlook was pretty upbeat.
FQ2 EPS of -$0.24 misses by $0.01. Revenue of $311M (-21.9%) vs. $322M.
Top Hedge Fund Holdings....
Every quarter, Goldman Sachs puts out the list of the top holdings owned by hedge funds. The top holdings are what you would expect: Apple (AAPL), Bank of America (BAC), Microsoft (MSFT), Google (GOOG), and JP Morgan (JPM).
The 12 new holdings on the list are:
CIT Group (CIT)
CF Industries (CF)
Aclon (ACL)
Coca Cola Enterprises (CCE)
Kraft (KFT)
Xerox (XRX)
Assured Guaranty (AGO)
Baidu (BIDU)
Equinix (EQIX)
Gilead Sciences (GILD)
Liberty (LBTYA)
News Corp (NWSA)
The 12 new holdings on the list are:
CIT Group (CIT)
CF Industries (CF)
Aclon (ACL)
Coca Cola Enterprises (CCE)
Kraft (KFT)
Xerox (XRX)
Assured Guaranty (AGO)
Baidu (BIDU)
Equinix (EQIX)
Gilead Sciences (GILD)
Liberty (LBTYA)
News Corp (NWSA)
American Eagle Reports In-Line....
American Eagle Outfitters (AEO): Q1 EPS of $0.17 in-line. Revenue of $659.5M (+7.8%) vs. $656M.
Shares -6.1% premarket.
Shares -6.1% premarket.
Futures Point to Higher Opening...
Stock futures are near their morning highs in the minutes that follow the latest dose of durable goods orders data. Durable goods orders for April spiked 2.9%, which is much stronger than the 1.5% increase that had been widely expected.
Mortgage Applications up....
MBA Mortgage Applications: +11.3% vs. -1.5% last week.
Thirty-year fixed mortgage rate decreased to 4.80% from 4.83%.
Thirty-year fixed mortgage rate decreased to 4.80% from 4.83%.
Tuesday, May 25, 2010
Closing Market Breadth Figures
Quite a reversal from how we looked in the morning. At one point Declining Volume on the NYSE outnumbered Advancing Volume by a 15-1 ratio.Short-Sellers head for the exits....
Obvious short covering rally in the last hour, as traders fear that we may get some sort of stimulus announcement from European central banks, overnight.
The S&P finishes positive after one of the nastiest starts I've seen in a while.
We need some follow thru tomorrow to crush those shorts who remain.
The S&P finishes positive after one of the nastiest starts I've seen in a while.
We need some follow thru tomorrow to crush those shorts who remain.
Too many Bears....
This rush to jump on the bearish bandwagon is not typical of what happens at major market tops, Mark Hulbert says; such tops are far more often characterized by a more stubborn bullishness. In any case, it's rare for the advisory consensus to be right about the market's direction.
He's right.
He's right.
Some Insider Buying....
Some interesting insider buying amid the bloodshed: Ormat Technologies (ORA), Tupperware (TUP), Comcast (CMCSA) and JB Hunt (JBHT), companies that are good economic barometers whose stocks already looked cheap from a fundamentals level even before recent insider activity.
Netflix Target Raised....
FBR Capital analyst Heath Terry this morning repeated his Outperform rating on Netflix (NFLX), while lifting his price target on the shares to $130, from $100.
“We continue to believe that Netflix is in the sweet spot of its growth phase: closing rental stores and expanding streaming options are driving significant subscriber growth, while the impact of rising content costs is more than offset by declining fulfillment costs,” he writes.
In particular, Terry says that the success of the company’s Apple iPad app and the coming addition of apps for the iPhone and iPod Touch, “should drive meaningful incremental subscriber growth, lower churn, and lower subscriber acquisition costs.”
Concludes Terry: “With growth accelerating in the quarters ahead and consensus expectations still withinmanagement’s typically conservative guidance, we believe that the potential for upside to consensus expectations far outweighs the risk to the down side.”
Of course, the focus today is on the macro, not the micro. Ergo, NFLX is down $1.67, or 1.6%, to $99.95.
“We continue to believe that Netflix is in the sweet spot of its growth phase: closing rental stores and expanding streaming options are driving significant subscriber growth, while the impact of rising content costs is more than offset by declining fulfillment costs,” he writes.
In particular, Terry says that the success of the company’s Apple iPad app and the coming addition of apps for the iPhone and iPod Touch, “should drive meaningful incremental subscriber growth, lower churn, and lower subscriber acquisition costs.”
Concludes Terry: “With growth accelerating in the quarters ahead and consensus expectations still withinmanagement’s typically conservative guidance, we believe that the potential for upside to consensus expectations far outweighs the risk to the down side.”
Of course, the focus today is on the macro, not the micro. Ergo, NFLX is down $1.67, or 1.6%, to $99.95.
Lunchtime update....
12:30 pm : Trade remains choppy and generally listless, but stocks continue to trim their losses. Despite such a feat, the major equity averages are still down markedly for this session. This session's slide, on top of those registered in recent weeks, has put the S&P 500 on pace for a monthly loss of more than 10%, which would challenge the 11% drop in February 2009 for the stock market's worst monthly performance of the past 15 months.
Looks to me like we are vastly oversold....
Looks to me like we are vastly oversold....
Transocean's Legal Action "Inappropriate"...
Here's the News...
The U.S. Food and Drug Administration approved Genzyme's(GENZ) Lumizyme as a treatment for Pompe disease, a rare genetic disorder, the agency said Tuesday in a statement.
The FDA decision to approve Lumizyme came earlier than expected.
Currently, the only other treatment for Pompe disease available in the U.S. is Myozyme, also made by Genzyme.
In Pompe disease, a gene mutation prevents the body from making an enzyme, necessary for proper muscle functioning. Without the enzyme action, glycogen builds up in the cells and, ultimately, weakens the heart and muscles.
The FDA decision to approve Lumizyme came earlier than expected.
Currently, the only other treatment for Pompe disease available in the U.S. is Myozyme, also made by Genzyme.
In Pompe disease, a gene mutation prevents the body from making an enzyme, necessary for proper muscle functioning. Without the enzyme action, glycogen builds up in the cells and, ultimately, weakens the heart and muscles.
Genzyme spikes...no news yet...
Genzyme (GENZ) stock is spiking +2.34 to $50.70 all of a sudden.
No news yet...stay tuned.
No news yet...stay tuned.
Verizon's version of I-Phone will hurt AT&T...
AT&T could lose as many as 40% of iPhone users once Verizon starts selling a version of
the phone, according to Davenport analyst F. Drake Johnstone.
the phone, according to Davenport analyst F. Drake Johnstone.
Upcoming Earnings...
Tues May 25:
Earnings after the close:
TIVO
Wed May 26:
Earnings before the open:
Cable & Wireless
Burberry
SCMR
TOL
BMO
Earnings after the close:
NTAP
PAY
AINV
Earnings after the close:
TIVO
Wed May 26:
Earnings before the open:
Cable & Wireless
Burberry
SCMR
TOL
BMO
Earnings after the close:
NTAP
PAY
AINV
Crude Prices Tumbling...
July crude oil has traded in negative territory all session and hit morning lows of $67.15 per barrel around 9:00am ET. The energy component has since recovered a portion of its losses, but remains well in the red at $68.00 per barrel, down 3.1%.
Just released: Home Price Index....
The FHFA's Home Price Index for March increased 0.3%, which is a bit of a surprise since a flat reading that had been widely expected. It also marks an improvement from the 0.4% decline for the prior month.
Consumer Confidence is High....
May Consumer Confidence Index: 63.3 vs. 58.8 expected and 57.7 in April.
Consumer confidence posted its third consecutive monthly gain, and although still weak by historical levels, appears to be gaining some traction.
Consumer confidence posted its third consecutive monthly gain, and although still weak by historical levels, appears to be gaining some traction.
NCR looks to compete with Coinstar....
The nation's biggest ATM maker wants to compete with Coinstar.
NCR (NCR), the company that makes automatic teller machines and kiosks is ready to do some transacting for themselves.
They've already rolled out DVD-kiosks across the United States to prove they're serious... desiring a piece of an industry expected to grow 37% this year to $1.3 billion.
But don't run out and risk the house on these guys just yet. You will want to play it safe.
We're still slightly concerned that they don't have any agreements with studios... yet. But that shouldn't be a long-term issue, as they plan to offer something that Coinstar does not: sales.
NCR wants to "use the kiosks to sell DVDs, giving the studios a chance to recoup lost DVD sales revenue and possibly encourage impulse DVD purchases,” according to CNN.
And that alone could prove to be a gold mine.
NCR (NCR), the company that makes automatic teller machines and kiosks is ready to do some transacting for themselves.
They've already rolled out DVD-kiosks across the United States to prove they're serious... desiring a piece of an industry expected to grow 37% this year to $1.3 billion.
But don't run out and risk the house on these guys just yet. You will want to play it safe.
We're still slightly concerned that they don't have any agreements with studios... yet. But that shouldn't be a long-term issue, as they plan to offer something that Coinstar does not: sales.
NCR wants to "use the kiosks to sell DVDs, giving the studios a chance to recoup lost DVD sales revenue and possibly encourage impulse DVD purchases,” according to CNN.
And that alone could prove to be a gold mine.
Toyota suspends sales of Lexus sedans...
Toyota Motor Corp. (TM). The automaker said it had temporarily suspended sales of certain Lexus LS sedans following a steering-related recall. The decision announced on Monday marks the third time in recent months that Toyota has told dealers to stop selling vehicles in the wake of a recall.
From our Market Strategist....
As noted many times, the major difference between today and fall 2008/winter 2009 is the recovering American economy. According to a survey by the National Association for Business Economics, the American economy is expected to expand by 3.2% this year and next. In February this same group projected a 3.1% growth rate.
If the economy does grow at this pace, this would be the strongest consecutive periods of expansion since 2003 and 2004. Wow!
Yesterday stocks were again volatile. In my view the economic data was largely dismissed and all focused upon the happenings in Europe. What will happen today? There is more housing data, a regional manufacturing index, inflation and confidence surveys released. All can influence trading.
Last night the foreign markets were down. London was down 2.66%, Paris down 3.47% and Frankfurt down 2.76%. Japan was down 3.06% and Hang Sang down 3.47%.
The Dow should open sharply lower on mounting concern that Europe debt crisis will endanger the global recovery. The Korean situation is also increasing nervousness. There are reports that North Korea ordered its troops last week to prepare for combat. The 10-year is up 21/32 to yield 3.12%.
Kent Engelke
Chief Economic Strategist/Managing Director
Capitol Securities Management
If the economy does grow at this pace, this would be the strongest consecutive periods of expansion since 2003 and 2004. Wow!
Yesterday stocks were again volatile. In my view the economic data was largely dismissed and all focused upon the happenings in Europe. What will happen today? There is more housing data, a regional manufacturing index, inflation and confidence surveys released. All can influence trading.
Last night the foreign markets were down. London was down 2.66%, Paris down 3.47% and Frankfurt down 2.76%. Japan was down 3.06% and Hang Sang down 3.47%.
The Dow should open sharply lower on mounting concern that Europe debt crisis will endanger the global recovery. The Korean situation is also increasing nervousness. There are reports that North Korea ordered its troops last week to prepare for combat. The 10-year is up 21/32 to yield 3.12%.
Kent Engelke
Chief Economic Strategist/Managing Director
Capitol Securities Management
On the positive side....
The delinquency rate for auto loan payments dropped markedly in Q1, falling to 0.66% from 0.83% Y/Y. Similar improvements in credit card and mortgage delinquency rates suggest consumers are finally starting to climb out from under their debt loads.
PVH beats but guides lower....
Phillips-Van Heusen Corp (PVH). The company beat Wall Street estimates in its first quarter, but a second quarter profit forecast lighter than some analysts anticipated. The company's adjusted earnings was 83 cents per share -- above the 79 cents per share expected, on average, by analysts, according to Thomson Reuters.
DSW Beats Expectations...
DSW Inc. (DSW). The shoe retailer on Tuesday posted first-quarter profit that beat market expectations, boosted by strong merchandise margins, and the shoe retailer backed its 2010 earnings view. The company reported net income of 67 cents a share up from 16 cents a share, a year earlier.
Dell unveils its version of the "IPad"
Dell (DELL) unveils the Streak this morning, an Android-based tablet with a 5-inch screen. The Streak goes on sale in the U.K. in June, and in the U.S. later this summer, as Dell makes its assault on the tablet market with its 'mini-iPad.'
AutoZone Beats....
AutoZone Inc. said Tuesday its net income rose 17 percent in its fiscal third quarter on strong sales of automotive replacement parts and several new store openings.
The results breezed past analyst projections.
The company said its net income rose to $202.7 million, or $4.12 per share, in the three months ended May 8 from $173.7 million, or $3.13 per share, a year ago.
Revenue rose 10 percent to $1.82 billion from $1.66 billion a year ago.
Analysts surveyed by Thomson Reuters expected earnings of $3.59 per share on $1.71 billion in sales, on average.
Shares of AutoZone closed Monday at $184.25, up 17 percent for the year.
The results breezed past analyst projections.
The company said its net income rose to $202.7 million, or $4.12 per share, in the three months ended May 8 from $173.7 million, or $3.13 per share, a year ago.
Revenue rose 10 percent to $1.82 billion from $1.66 billion a year ago.
Analysts surveyed by Thomson Reuters expected earnings of $3.59 per share on $1.71 billion in sales, on average.
Shares of AutoZone closed Monday at $184.25, up 17 percent for the year.
Futures look ugly....
Ahead of the opening bell, Dow futures are down 221, or 2.2 percent, to 9,822. Standard & Poor's 500 index futures are down 27.90, or 2.6 percent, to 1,043.10, while Nasdaq 100 index futures are down 42.00, or 2.3 percent, to 1,770.50.
Tuesday's expected sell-off follows a sharp, late-session drop Monday. The Dow lost 80 points in the last 15 minutes of trading Monday to close down nearly 127 points. The index is now trading at its lowest levels since February.
Tuesday's expected sell-off follows a sharp, late-session drop Monday. The Dow lost 80 points in the last 15 minutes of trading Monday to close down nearly 127 points. The index is now trading at its lowest levels since February.
More on Medtronic....
NEW YORK (AP) -- Medtronic Inc., the world's largest medical-device company, says its fourth-quarter profit surged from results a year ago that had been depressed by a large license payment.
Medtronic says its revenue rose 10 percent, helped by higher sales of implantable heart devices as rival Boston Scientific suspended its U.S. sales of such devices for a month. Boston Scientific made changes to some of its devices without telling regulators.
Medtronic, which is based in Minneapolis, says it earned $954 million, or 86 cents per share, in the quarter ended April 30. That's up from $103 million, or 9 cents per share.
Medtronic says its earnings per share was 89 cents per share excluding one-time costs. That is a penny a share higher than analysts expected.
Its revenue rose to $4.2 billion. Analysts expected $4.19 billion in revenue.
Medtronic says its revenue rose 10 percent, helped by higher sales of implantable heart devices as rival Boston Scientific suspended its U.S. sales of such devices for a month. Boston Scientific made changes to some of its devices without telling regulators.
Medtronic, which is based in Minneapolis, says it earned $954 million, or 86 cents per share, in the quarter ended April 30. That's up from $103 million, or 9 cents per share.
Medtronic says its earnings per share was 89 cents per share excluding one-time costs. That is a penny a share higher than analysts expected.
Its revenue rose to $4.2 billion. Analysts expected $4.19 billion in revenue.
Earnings Before the Market....
Monday, May 24, 2010
Mad Money Recap...
Here's what Jim Cramer had to say about some of the stocks that callers offered up during the "Mad Money Lightning Round" Monday evening.
Macy's (M): "Everyone knows I like Macy's, but not at the exclusion of TJX Companies (TJX). I'm going to say buy TJ Maxx and don't buy Macy's."
World Wrestling Entertainment (WWE): "If you look at the combination of the dividend and the stock, you've got a winner."
Caterpillar (CAT): "I feel that this is still not at the yield I want. I like it at 3.5% yield. Let's wait a couple more points."
MGM Mirage (MGM): "I think that Vegas is having another downturn. Macau is on fire, though. I'm a seller on MGM and a buyer of Wynn Resorts (WYNN)."
Vodafone Group (VOD): "I don't have a catalyst there. I like Verizon (VZ)."
Hitachi (HIT): "I think Japan is a no-growth environment and I'm not a buyer."
Macy's (M): "Everyone knows I like Macy's, but not at the exclusion of TJX Companies (TJX). I'm going to say buy TJ Maxx and don't buy Macy's."
World Wrestling Entertainment (WWE): "If you look at the combination of the dividend and the stock, you've got a winner."
Caterpillar (CAT): "I feel that this is still not at the yield I want. I like it at 3.5% yield. Let's wait a couple more points."
MGM Mirage (MGM): "I think that Vegas is having another downturn. Macau is on fire, though. I'm a seller on MGM and a buyer of Wynn Resorts (WYNN)."
Vodafone Group (VOD): "I don't have a catalyst there. I like Verizon (VZ)."
Hitachi (HIT): "I think Japan is a no-growth environment and I'm not a buyer."
WalMart to cut I-Phone Prices in Half...
Wal-Mart says it's cutting the price of the most up-to-date iPhone in half. That's another sign Apple is getting ready to unveil a new model.
Wal-Mart says that starting Tuesday the iPhone 3GS with 16 gigabytes of storage space will cost $97 with a two-year contract with AT&T. It currently costs $197.
Leaked prototypes for an updated iPhone surfaced on blogs recently. The price cut could signal retailers are clearing the shelves to make room for a new Apple smart phone.
Apple declined to comment on whether it's planning to release a new iPhone soon, or whether it will also sell the iPhone 3GS for less.
The company's annual developer conference kicks off June 7. Apple unveiled the iPhone 3GS at the same event last year.
Wal-Mart says that starting Tuesday the iPhone 3GS with 16 gigabytes of storage space will cost $97 with a two-year contract with AT&T. It currently costs $197.
Leaked prototypes for an updated iPhone surfaced on blogs recently. The price cut could signal retailers are clearing the shelves to make room for a new Apple smart phone.
Apple declined to comment on whether it's planning to release a new iPhone soon, or whether it will also sell the iPhone 3GS for less.
The company's annual developer conference kicks off June 7. Apple unveiled the iPhone 3GS at the same event last year.
Medtronic to Report Tuesday before the open...
Medtronic (MDT) is expected to report Q4 earnings on Tuesday, May 25 before the market open with a conference call scheduled for 8 am ET.
Guidance:
Analysts are looking for EPS of 88c on revenue of $4.19B. The consensus range is 86c-91c for EPS, and $4.11B-$4.27B for revenue. The company raised the lower end of its FY10 EPS guidance to $3.20-$3.22 in late February.
Positive catalysts for Medtronic this quarter include the product recalls that its competitor Boston Scientific (BSX) is currently experiencing, expanding global sales in the ICD market, domestic and international demand for the Endeavor stent, and sales of its new heart valve products. Negative catalysts for the quarter may be seen coming from a maturing domestic ICD market with slowing sales growth.
Guidance:
Analysts are looking for EPS of 88c on revenue of $4.19B. The consensus range is 86c-91c for EPS, and $4.11B-$4.27B for revenue. The company raised the lower end of its FY10 EPS guidance to $3.20-$3.22 in late February.
Positive catalysts for Medtronic this quarter include the product recalls that its competitor Boston Scientific (BSX) is currently experiencing, expanding global sales in the ICD market, domestic and international demand for the Endeavor stent, and sales of its new heart valve products. Negative catalysts for the quarter may be seen coming from a maturing domestic ICD market with slowing sales growth.
Market Recap....
Market recap: Stocks plummeted in the final half-hour of trading, knocked down by concerns about Europe's Banks and Washington's Lawmaking.
NYSE decliners outnumbered advancers two to one.
At the close:
Dow -1.27% to 10064.
S&P -1.31% to 1073.
Nasdaq -0.69% to 2214.
Treasurys: 30-year -0.33%. 10-yr -0.09%. 5-yr -0.08%.
Commodities: Crude +0.03% to $70.06. Gold +1.44% to $1193.00.
Currencies: Euro -1.51% vs. dollar. Yen -0.67%. Pound -0.17
NYSE decliners outnumbered advancers two to one.
At the close:
Dow -1.27% to 10064.
S&P -1.31% to 1073.
Nasdaq -0.69% to 2214.
Treasurys: 30-year -0.33%. 10-yr -0.09%. 5-yr -0.08%.
Commodities: Crude +0.03% to $70.06. Gold +1.44% to $1193.00.
Currencies: Euro -1.51% vs. dollar. Yen -0.67%. Pound -0.17
Will Amazon buy out Netflix???
For what it's worth, a recent poll by TheStreet.com suggests that Netflix will not be bought by
Amazon.
http://www.thestreet.com/_yahoo/story/10764150/1/netflix-wontbe-
bought-by-amazon-poll-says.html
Amazon.
http://www.thestreet.com/_yahoo/story/10764150/1/netflix-wontbe-
bought-by-amazon-poll-says.html
Disney's Toy Story 3...Coming June 18
Toy Story 3 will be the first film to use Dolby Surround 7.1 for sound effects, an
improvement over the current 5.1 setup.
The film will debut on June 18th.
improvement over the current 5.1 setup.
The film will debut on June 18th.
IBD Top 100 Deletions...
J Crew (JCG)
Tractor Supply (TSCO)
Fossil Inc. (FOSL)
Whirlpool (WHR)
Phillips Van Heusen (PVH)
TRW Automotive (TRW)
Tractor Supply (TSCO)
Fossil Inc. (FOSL)
Whirlpool (WHR)
Phillips Van Heusen (PVH)
TRW Automotive (TRW)
Limewire in Trouble...
LimeWire creator Mark Groton is profiled in the NYT, he is facing up to $450M in damages for copyright infringement.
http://www.nytimes.com/2010/05/24/business/media/24limewire.html?ref=media
http://www.nytimes.com/2010/05/24/business/media/24limewire.html?ref=media
IBD Top 100 Additions....
New to the Top 100:
Dollar Tree (DLTR)
Aeropostale (ARO)
Polaris Industries (PII)
O'Reilly Automotive (ORLY)
Family Dollar (FDO)
Life-time Fitness (LTM)
DSW Shoe Warehouse (DSW)
Ann Taylor (ANN)
Ross Stores (ROST)
IMAX Theatres (IMAX)
Cheesecake Factory (CAKE)
Bed, Bath and Beyond (BBBY)
Dollar Tree (DLTR)
Aeropostale (ARO)
Polaris Industries (PII)
O'Reilly Automotive (ORLY)
Family Dollar (FDO)
Life-time Fitness (LTM)
DSW Shoe Warehouse (DSW)
Ann Taylor (ANN)
Ross Stores (ROST)
IMAX Theatres (IMAX)
Cheesecake Factory (CAKE)
Bed, Bath and Beyond (BBBY)
Stocks to Watch This Morning
• American International Group Inc. (AIG). U.S. Treasury is re-looking at plans to float the Asian unit of AIG in case a bid by Prudential (PUK) to buy the AIA fails, two British newspapers reported on Sunday. Separately, the company welcomed the Justice Department decision, not specifically identified, in which published reports indicate that federal prosecutors will not charge company executives over credit default swaps.
• BHP Billiton Ltd/Plc (BHP). The global miner wants to take advantage of the current market weakness and is looking worldwide for acquisition opportunities to grow its business, a senior company official said on Monday. The company also said that the recent giant oil spill in the Gulf of Mexico has brought some delays to its projects and could hit its production growth forecast of 10 percent for the year ending June 10, and estimates of 8-10 percent next year. Separately, the company set out its case for changes to Australia's proposed new mining tax in talks with government officials on Friday, saying any tax should be based on the value of commodities produced. Meanwhile, BHP said it still sees returns on its petroleum operations in Western Australia and the Gulf of Mexico as competitive, amid tax and regulatory debates affecting the two regions.
• British Petroleum (BP). The British oil major sharply reduced its estimate on Monday of how much oil it is siphoning off each day from a ruptured well in the Gulf of Mexico that has been spewing oil for a month and threatening ecological disaster. Separately, BP will press ahead with a series of short-term options, including one this week, to try to plug its gushing Gulf of Mexico oil well, and these will be attempted before it completes an expected relief well in August, BP Managing Director Bob Dudley said on Sunday.
• Burger King Holdings (BKC). The hamburger chain’s franchisees have won the right to argue in court that the company acted in bad faith when it added its double cheeseburger to its $1 Value Menu.
• Campbell Soup Co. (CPB). The largest soup maker on Monday posted higher sales in its key U.S. soup market, helped by increased promotional spending. The company's third-quarter earnings were 54 cents a share, before items.
• EMC Corp. (EMC). The company's shares, which have already jumped 50 percent in the past year, could climb even more fueled by a recovering economy and strong demand for storage capacity from its corporate customers, according to a story in Barron's.
• Equity One Inc. (EQY). The shopping center owner said on Sunday it would buy Capital Shopping Centres Group Plc's U.S. unit in a $258.3 million deal, helping the company expand into California. The transaction will give British company 4.1 million shares of Equity One common stock and 10.9 million joint venture units.
• First Solar (FSLR). The producer of solar modules, which plans to build the world's largest solar power plant in Inner Mongolia, could hear from China in coming months the amount of subsidy it will get, the company's president said.
• Fluor Corp. (FLR). The company on Monday said it won a series of contracts from Ma`aden and Alcoa (AA) joint venture to provide program management consultancy, engineering, procurement and construction management services for projects related to the development of the integrated Ras Az`Zawr aluminum complex. The company said it expects to book about $3 billion covering four separate scopes of work.
• Marriott International Inc. (MAR). The largest U.S. hotel chain aims to double the number of Marriott brand hotels in China within five years and intends to introduce a lower-priced hotel brand in the near future. Marriott, which currently manages 46 hotels in China, expects to have 60 hotels by the end of the year and 90 in five years, making China its second-largest market by number of hotels, Arne Sorenson, Marriott's president, said in Shanghai on Monday.
• Morgan Stanley (MS). China's securities regulator has started to review the company’s application to sell its roughly $1 billion stake in Chinese investment bank China International Capital Corp, state media reported on Monday. If the application process goes smoothly, Morgan Stanley could obtain regulatory approval to sell its 34.3 percent stake in CICC within around three months, the official Shanghai Securities News said, citing unnamed sources.
• News Corp. (NWSA). An Italian court on Monday rejected an appeal against the sale of satellite TV soccer rights to News Corp unit Sky Italia, averting possible financial problems for Italian clubs. The appeal was filed by Conto TV, a small satellite operator. Conto claimed the way Serie A rights for the next two seasons were sold to Sky Italia was unfair.
• Rio Tinto (RTP). The global miner described Australia as its top sovereign risk on Monday and said it was reviewing all investments there as its raised pressure on Canberra to overhaul its planned new mining tax.
• Royal Dutch Shell (RDSa). The oil major has started commissioning the first phase of its multi-billion dollar Pearl gas-to-liquids project in Qatar, an executive of the plant said on Monday. The GTL plant, which Shell describes as the world's largest energy project, has a price tag of up to $19 billion.
• Sherwin-Williams Co. (SHW). The largest U.S. paint maker on Monday said it will buy wood coatings maker Becker Acroma Industrial Wood Coatings for an undisclosed sum, in a bid to expand its global footprint. The deal, subject to regulatory approvals, is slated to close in the third aquarter
• Sony Corp. (SNE). The company’s CEO is set to meet rival Samsung Electronics, for possible alliances, as the Japanese consumer electronics maker aims to turn its TV business profitable with aggressive sales targets.
• Sprint Nextel (S). Shares of the carrier could rise to about $6 a share, helped by the introduction of a mobile phone that works on it's new high-speed network, according to business weekly Barron's. The newspaper said in its May 24 edition that Sprint's total subscriber base could grow as it takes the lead with a phone that runs on its "4G" network, which it promises will deliver speeds up to 10 times faster than existing networks.
• UAL Corp. (UAUA). A U.S. Senate subcommittee is set to examine the proposed airline deal between the company’s United Airlines and Continental Airlines (CAL) on Thursday that will study the implications for airline consumers.
• Verizon Communications Inc. (VZ). The company won final U.S. regulatory approval on Friday to sell 4.8 million rural phone lines to Frontier Communications Corp (FTR) for about $5.25 billion in stock.
• Walt Disney Co. (DIS). Billionaire Ron Burkle and Hollywood producer Harvey Weinstein on Friday said they were continuing efforts to buy the company's Miramax Films, playing down media reports that the long-gestating deal had fallen through.
• Whirlpool Corp. (WHR). The Indian unit of global appliances maker plans to hike product prices by 2-3 percent in the next 2 months, a top official said. The firm has also revised its investment in India to 4 billion rupees over 3 years, starting this fiscal. The firm also plans to launch a new range of higher end washing machines by September this year and boost distribution.
• BHP Billiton Ltd/Plc (BHP). The global miner wants to take advantage of the current market weakness and is looking worldwide for acquisition opportunities to grow its business, a senior company official said on Monday. The company also said that the recent giant oil spill in the Gulf of Mexico has brought some delays to its projects and could hit its production growth forecast of 10 percent for the year ending June 10, and estimates of 8-10 percent next year. Separately, the company set out its case for changes to Australia's proposed new mining tax in talks with government officials on Friday, saying any tax should be based on the value of commodities produced. Meanwhile, BHP said it still sees returns on its petroleum operations in Western Australia and the Gulf of Mexico as competitive, amid tax and regulatory debates affecting the two regions.
• British Petroleum (BP). The British oil major sharply reduced its estimate on Monday of how much oil it is siphoning off each day from a ruptured well in the Gulf of Mexico that has been spewing oil for a month and threatening ecological disaster. Separately, BP will press ahead with a series of short-term options, including one this week, to try to plug its gushing Gulf of Mexico oil well, and these will be attempted before it completes an expected relief well in August, BP Managing Director Bob Dudley said on Sunday.
• Burger King Holdings (BKC). The hamburger chain’s franchisees have won the right to argue in court that the company acted in bad faith when it added its double cheeseburger to its $1 Value Menu.
• Campbell Soup Co. (CPB). The largest soup maker on Monday posted higher sales in its key U.S. soup market, helped by increased promotional spending. The company's third-quarter earnings were 54 cents a share, before items.
• EMC Corp. (EMC). The company's shares, which have already jumped 50 percent in the past year, could climb even more fueled by a recovering economy and strong demand for storage capacity from its corporate customers, according to a story in Barron's.
• Equity One Inc. (EQY). The shopping center owner said on Sunday it would buy Capital Shopping Centres Group Plc's U.S. unit in a $258.3 million deal, helping the company expand into California. The transaction will give British company 4.1 million shares of Equity One common stock and 10.9 million joint venture units.
• First Solar (FSLR). The producer of solar modules, which plans to build the world's largest solar power plant in Inner Mongolia, could hear from China in coming months the amount of subsidy it will get, the company's president said.
• Fluor Corp. (FLR). The company on Monday said it won a series of contracts from Ma`aden and Alcoa (AA) joint venture to provide program management consultancy, engineering, procurement and construction management services for projects related to the development of the integrated Ras Az`Zawr aluminum complex. The company said it expects to book about $3 billion covering four separate scopes of work.
• Marriott International Inc. (MAR). The largest U.S. hotel chain aims to double the number of Marriott brand hotels in China within five years and intends to introduce a lower-priced hotel brand in the near future. Marriott, which currently manages 46 hotels in China, expects to have 60 hotels by the end of the year and 90 in five years, making China its second-largest market by number of hotels, Arne Sorenson, Marriott's president, said in Shanghai on Monday.
• Morgan Stanley (MS). China's securities regulator has started to review the company’s application to sell its roughly $1 billion stake in Chinese investment bank China International Capital Corp, state media reported on Monday. If the application process goes smoothly, Morgan Stanley could obtain regulatory approval to sell its 34.3 percent stake in CICC within around three months, the official Shanghai Securities News said, citing unnamed sources.
• News Corp. (NWSA). An Italian court on Monday rejected an appeal against the sale of satellite TV soccer rights to News Corp unit Sky Italia, averting possible financial problems for Italian clubs. The appeal was filed by Conto TV, a small satellite operator. Conto claimed the way Serie A rights for the next two seasons were sold to Sky Italia was unfair.
• Rio Tinto (RTP). The global miner described Australia as its top sovereign risk on Monday and said it was reviewing all investments there as its raised pressure on Canberra to overhaul its planned new mining tax.
• Royal Dutch Shell (RDSa). The oil major has started commissioning the first phase of its multi-billion dollar Pearl gas-to-liquids project in Qatar, an executive of the plant said on Monday. The GTL plant, which Shell describes as the world's largest energy project, has a price tag of up to $19 billion.
• Sherwin-Williams Co. (SHW). The largest U.S. paint maker on Monday said it will buy wood coatings maker Becker Acroma Industrial Wood Coatings for an undisclosed sum, in a bid to expand its global footprint. The deal, subject to regulatory approvals, is slated to close in the third aquarter
• Sony Corp. (SNE). The company’s CEO is set to meet rival Samsung Electronics, for possible alliances, as the Japanese consumer electronics maker aims to turn its TV business profitable with aggressive sales targets.
• Sprint Nextel (S). Shares of the carrier could rise to about $6 a share, helped by the introduction of a mobile phone that works on it's new high-speed network, according to business weekly Barron's. The newspaper said in its May 24 edition that Sprint's total subscriber base could grow as it takes the lead with a phone that runs on its "4G" network, which it promises will deliver speeds up to 10 times faster than existing networks.
• UAL Corp. (UAUA). A U.S. Senate subcommittee is set to examine the proposed airline deal between the company’s United Airlines and Continental Airlines (CAL) on Thursday that will study the implications for airline consumers.
• Verizon Communications Inc. (VZ). The company won final U.S. regulatory approval on Friday to sell 4.8 million rural phone lines to Frontier Communications Corp (FTR) for about $5.25 billion in stock.
• Walt Disney Co. (DIS). Billionaire Ron Burkle and Hollywood producer Harvey Weinstein on Friday said they were continuing efforts to buy the company's Miramax Films, playing down media reports that the long-gestating deal had fallen through.
• Whirlpool Corp. (WHR). The Indian unit of global appliances maker plans to hike product prices by 2-3 percent in the next 2 months, a top official said. The firm has also revised its investment in India to 4 billion rupees over 3 years, starting this fiscal. The firm also plans to launch a new range of higher end washing machines by September this year and boost distribution.
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