Stocks finish higher....

but the tape was somewhat negative.  Several recent winners sold off as traders booked profits and moved to other names.  Tomorrow should be interesting.

Dow +53 to 11613
Nas +3 to 2579
S&P +6 to 1218

End of the month ....

Today is the last day of the month.  Looks like we are getting a little "window dressing" into the close.

With 15 minutes left:

Dow +79
Nas +5
S&P +1

Market turns negative....

As I thought earlier, this rally just didn't look right...too much selling going on this morning in the high beta names.  Hopefully we hold up into the close.

Dow -5
Nas -13
S&P -2

Hansen sells off on insider selling....

Shares of Hansen Natural (HANS -5.08 to 84.50) fall after SEC filings show insider selling in the last week while the stock was rising. Share are still up 10% over the last month and 61% for the year.

I find that insider selling has virtually no accuracy when looking for clues from insider action.  Why????  Because we have no idea why that insider is selling.

Market holding gains...

At noon the market is holding on to gains, however we are definitely seeing some weakness off of the open.  It looks like we need some sort of positive news to push this market higher.  It is clear that traders are a little nervous right here, considering we have rallied 10% off of the bottom hit on August 9.

Dow +66
Nas +8
S&P +8

Today's upgrades and downgrades...

These are some of this Wednesday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.

Alcatel-Lucent (NYSE: ALU) Maintained Underperform and cut estimates at Credit Suisse.
Apollo Residential Mortgage, In (NYSE: AMTG) Started as Buy at Stifel Nicolaus; Started as Outperform at Credit Suisse.
BMC Software Inc. (NYSE: BMC) Started as Outperform at Wells Fargo.
Boston Properties Inc. (NYSE: BXP) Reiterated Buy with $120 target at Argus.
Citrix Systems, Inc. (NASDAQ: CTXS) Started as Outperform at Wells Fargo.
Corning Inc. (NYSE: GLW) Reiterated Buy with $28 target at BofA/ML.
Crawford & Co. (NYSE: CRD-B) Started as Outperform at William Blair.
Francesca’s Holdings Corporation (NASDAQ: FRAN) Started as Neutral at Goldman Sachs; Started as Buy at Jefferies; Started as Hold at Stifel Nicolaus.
Honda Motor Co., Ltd. (NYSE: HMC) Cut to Neutral at Credit Suisse.
Linear Technology Corporation (NASDAQ: LLTC) Maintained Underperform as Bear of the Day at Zacks.
Navigant Consulting, Inc. (NYSE: NCI) Raised to Outperform as Bull of the Day at Zacks.
Red Hat, Inc. (NYSE: RHT) Started as Outperform at Wells Fargo.
Steel Dynamics Inc. (NASDAQ: STLD) Cut to Neutral at Goldman Sachs.
Tesoro Corporation (NYSE: TSO) Raised to Outperform at RBC.
Toyota Motor Corporation (NYSE: TM) Cut to Neutral at Credit Suisse.
VMware Inc. (NYSE: VMW) Reiterated Buy with $104 target at BofA/ML.

Ag stocks take a breather....

While the Dow remains up 85 points right now, Ag stocks are selling off.  These stocks have all made nice moves in the past two weeks.

CF Industries (CF) is down 6.35 to 183.42
Mosaic (MOS) is down 1.65 to 71.50
Agrium (AGU) is down 1.22 to 86.48
Potash (POT) is down 1.25 to 57.83

Bucking the trend is Terra Nitrogen (TNH).  It is up another 2.36 to 197

One hour into the day....

Kind of a strange tape.  Stock indexes are higher, but traders are clearly taking profits in some of the stocks that have made big moves of late.  That kind makes me a little wary of this move.  Let's see what happens as the day wears on.  Here's where we are now:

Dow +116
Nas +31
S&P +15 to 1228

The key for the S&P 500 is that it remain above the 1200 level.

Goldman likes the metals...

Goldman Sachs says demand for metal should remain “fairly healthy,” driven by emerging markets, and the recent pullback in metals and mining stocks has created a “particularly attractive entry point for select names." Goldman reiterates Buy ratings on Freeport McMoran (FCX +3.3%) and Alcoa (AA +4.1%) following sharp pullbacks.

Nice open for stocks....

After twenty minutes of trading, stocks are broadly higher. 

Dow +85
Nas +21
S&P +12

Gold is down slightly.

Joy Global tops views...

Joy Global (JOYG +5.6%) opens with a bounce after topping Q3 earnings views, and raising full-year earnings and revenue guidance. The mining equipment maker also says it will sell its LeTourneau drilling operation to Cameron International (CAM +1%) for $375M. JOYG is in the process of buyng China's International Mining Machinery Holdings.

HP seems like a confused company...

Hewlett-Packard (HPQ) says it will temporarily resume manufacturing of its TouchPad tablet just 11 days after killing it. The resurrection follows a spike in demand after H-P, desperate to clear out unsold inventory, slashed the price from $399 to $99. But the decision to manufacture a second run is puzzling, since the basic TouchPad costs ~$306 to manufacture.

Premarket movers....

Premarket gainers:

CTIC +18%. FRO +5%. JOYG +5%. SINA +4%. UBS +3%. ARMH +3%. JDSU +3%. MU +3%.

Losers:
 
LTXC -14%. DRYS -8%. NBG -7%. JVA -5%. TQNT -4%.

A Milkshake to treat Alzheimer's....

A vanilla milkshake for Alzheimer's patients provides energy to the brain, says the company that sells it. A company-funded clinical trial found short-term positive effects in cognition and memory, but scientists say so far there is insufficient evidence that the drink is effective.

The brains of Alzheimer's patients don't convert glucose into energy as efficiently as healthy brains, which can result in a decrease in cognitive function, according to privately held Accera Inc., the Broomfield, Colorado company that sells the milkshake, called Axona. The shake contains caprylic triglyceride, a compound derived from coconut oil that is metabolized in the liver to produce ketone bodies, which serve as alternate brain fuel for Alzheimer's patients, the company says.

Here is a link to the company's website:

http://www.accerapharma.com/index.html

Gaddafi forces given 5 days to surrender...

Libya’s rebel leadership on Tuesday ordered forces loyal to longtime leader Moammar Gaddafi to surrender by Saturday or face a military assault aimed at completing the rebels’ takeover of the country. 

Mustafa Abdel Jalil, head of the rebel’s governing Transitional National Council, said his forces would attack Gaddafi’s home town of Sirte, where the loyalists have gathered, on Saturday, the day when celebrations marking the end of the Muslim holy month of Ramadan will end.

“This window of opportunity closes with the end of the official holiday Eid al-Fitr," Abdel Jalil said. “We can act decisively to end this in a military manner. We do not wish to do so, but we cannot wait any longer.”

Amazon vs. Apple....

The 10-inch version of Amazon's (AMZN) much-anticipated tablet won't go into mass production until Q1 2012, according to DigiTimes. However, the 7-inch version is expected to start shipping in October. Apple (AAPL) is expected to launch its next 9.7-inch iPad, believed to feature a higher-resolution display, early next year.

These stories that Amazon's tablet will rival Apple's iPad is a joke to me.  There is no comparison between the Kindle and the iPad. 

Jobs number less than expected....

August ADP Jobs Report: +91K vs. +100K expected and +109K prior (revised from +114K). The data "suggests that the trend in employment moderated somewhat in August at a pace below what would be consistent with a stable unemployment rate."


Stock Futures remain positive...

Market stages late rally to close higher....

Following the release of the Fed August 9 minutes, traders pushed stocks higher.  With 15 minutes left in the day the Dow was up 88 points, however program selling in the last 10 minutes brought us back toward even on the day.

Dow + 20 to 11559
Nas +14 to 2576
S&P +3 to 1212

Oil stocks rallied into the close and Gold, once again, moved higher in tandem with the broad market.  All in all not a bad day, but not exactly the breakout we were hoping for.

Market shruggs off Fed minutes...

 FOMC minutes from the Aug. 9 meeting show a split concerning the best tools for easing monetary policy. A few members felt that economic developments justified a more substantial move, but they were willing to accept the stronger forward guidance on the federal funds rate as a step in the direction of additional accommodation.

The markets sold off initially on the release, but are now resuming their uptrend...

Dow +19
Nas +11
S&P +1

Terra Nitrogen continues move higher....

We've been following the movement of Terra Nitrogen (TNH) over the past week.  Today the stock is up yet another 6.19 to 194.70.  The dividend is now 7.66% based on the current price.

Consumer confidence drops...

This morning we got news that confidence among consumers plunged to its lowest level since April 2009. The consumer confidence index dropped to a reading of 44.5 in August from 59.2 in July, according to the Conference Board. Economists had been looking for a reading of 52.

That's a big miss by the experts...however a few good weeks in the stock market can turn that confidence around very quickly.

RIMM Breaks out.....

We pointed out last week that it may be time to scoop up some Reseach in Motion shares.  The maker of Blackberry phones' shares rose thru the targeted $30 level yesterday and are getting a strong follow thru rally today.

Shares are currently up 1.50 to $32.22

After two hours.....

the market just turned positive after a negative open.  Look for more volatility as traders await Fed minutes to be released at 2 pm this afternoon.

Dow +3
Nas +5
S&P +1

Southwest Air shares weak on bad news concerning 717's...

Shares of Southwest Airlines (LUV -2.1%) suffer on a day many airline stocks (FAA +0.7%) are posting modest gains. An aviation blogger reports the firm's 88 717s picked up in the AirTran buyout are increasingly "unviable" in a high fuel cost environment, a statement reinforced by the carrier's decision to drop routes serviced exclusively by 717s.

LUV shares are down 0.20 to 8.48 this morning.

You gotta like Perrigo...

Generic product maker Perrigo (PRGO) is hitting new all-time highs this morning.  It is currently up 1.94 to 95.55.

 

Market holds up well.....

Twenty minutes into the day, the market is holding up despite premarket selling following Fed comments about potential QE3. 
Dow -25
Nas -5
S&P -5

Fed minutes from last weeks meeting will be released later today.  Look for a drastic reaction either way on that once it is released.  It is becoming clear that the market does not want to hear that the Fed is going to start a QE3 program.

FDIC objecting to Bank of America settlement...

Bank of America (BAC) is once again a stock to watch, as the FDIC objects to B of A's $8.5 billion mortgage settlement.  The agency is objecting as an investor rather than a regulator - it owns securities that would be covered by the settlement because it took over banks that failed during the financial crisis.

The FDIC says its objection is based on the fact that it doesn't have enough information to evaluate it.

This is probably positive for Green Mountain Coffee...

Starbucks Corp. (SBUX). The coffee chain said coffee packets under its brand for Green Mountain Coffee Roasters Inc's (GMCR) single-serve Keurig coffee machines will be sold in U.S. grocery and specialty retail stores from November, in time for the key holiday season. It also said it plans to grow its sales of "K-Cups" to $1 billion over time.

Meanwhile, check out the chart on Coffee prices...

HP contemplates splitting company...

Hewlett-Packard (HPQ). The technology company said on Monday it prefers to spin off its personal computers unit and is currently working on understanding the larger implications of separating the business from the company.

Premarket movers...

Premarket gainers:

LLNW +10%. AEZS +8%. PANL +6%. TGB +4%. DG +3%.

Losers:
 
NBG -9%. CEDC -7%. LVLT -4%. ASBC -4%. FRO -3%. DB -3%. FMS -3%. GSK -3%.

Futures sell off on Fed comments premarket....

Gold spikes higher as well.

Chicago Fed's Charles Evans says "strong accommodation" is needed for a "substantial period of time" due to a U.S. economy that seems to be moving "sideways." Evans tells CNBC this morning that more aggressive policy is needed; he is "somewhat nervous" about the recovery, and believes the labor market is in a state "consistent with recession."

This clinches it.  It is clear, the market does NOT want any more fiscal stimulus from the Fed.  It would be nice if they would just let everything play out.

DSW beats and raises...

DSW Inc's quarterly profit beat estimates as more customers showed up at its stores looking for discounts, and the shoe retailer raised its full-year outlook.   The Columbus, Ohio-based retailer now expects annual diluted earnings of $2.70-$2.85 for the full year. It had earlier forecast earnings in the range of $2.65-$2.80.

Excluding items related to DSW's merger with RVI which closed in the quarter, it earned 74 cents a share in the second quarter.  Sales at the company, which sells branded footwear for men and women at discounted rates, rose 14.7 percent to $476.3 million.

Analysts, on average, had expected the retailer to earn 63 cents a share on revenue of $459.4 million, according to Thomson Reuters I/B/E/S.

The stock is up $2 in premarket trading to $49.20.

New Idea of the Day....MAKO

MAKO Surgical (MAKO) designs and makes robotic systems (similar general idea as ISRG) that can avoid total knee replacements by use of a procedure called MAKOplasty. MAKOplasty is an alternative that resurfaces the damaged portions of the knee. MAKO sells the robotic system, called the Robotic Arm Interactive Orthopedic System, and then sells consumables which must be replaced for every procedure. Recovery times for MAKOplasty patients are drastically reduced over total knee replacement, leading to lower healthcare and rehabilitation costs, and improved quality of life.

About 581,000 knee replacements are performed each year in the US. Although there are no hard numbers for the percentage of these that would benefit from MAKOplasty, that does provide some scale to the potential market. The company has not yet had a profitable quarter, but revenues keep increasing at a high rate (up 80% and 81% in the past two quarters) and procedures performed are also increasing quickly (up 88% in the first half of 2011 to over 2,800).

MAKO fell down to $21 during the latest market selloff, but then has come storming back after releasing its earnings on August 9.  The stock rose 2.57 to a new closing high of 34.99 yesterday.  Here is the weekly chart:

Today is a key day....

After yesterday's rally we are sitting just above key levels.  The S&P closed at 1210 after breaking thru the previous high made on August 17.  What we would like to see today is follow thru move higher, on heavier volume.  This morning Futures are lower (down 6), but that is great.  A reversal of that with a further breakout would be very positive. 

Dick Bove loves the banks....

Dick Bove is pounding the table for bank stocks, noting many now sport market caps lower than their net cash positions; names fitting this description include BAC, JPM, C, BK, STT, NTRS, and SNV. However, Bove also believes Ireland, Portugal, and Greece will default, affecting several big-name U.S. banks with Euro exposure.

Nice Day for the market...

Dow +2.28% to 11542.
S&P +2.83% to 1210.
Nasdaq +2.86% to 2224.

Gold and silver both sold off.

Afternoon update....

At 3:15 pm the market is much higher.  All but 4 stocks in the S&P 500 are positive.

Dow +240 to 11525
Nas +75 to 2554
S&P +31 to 1207

All three indices are breaking out on the charts through the previous high.  In technical terms this is significant.

Noon update....

At noon the market is holding its earlier gains:

Dow +193 to 11477
Nas +63 to 2543
S&P +24 to 1201

Remember, 1200 is a key level to break back above for the S&P.

Hansen Natural still moving higher...

Last week we showed you the chart on Hansen Natural.  Sales of Monster Energy drinks, the high-caffeinated elixir with the neon "M" logo, are growing fast, propelling the earnings of owner Hansen Natural Corp. Energy drinks as an industry are growing as well, but Hansen says Monster is outpacing some competitors like Red Bull, NOS, AMP and Full Throttle.

Hansen said it sold $484 million worth of Monster drinks in the second quarter, a 28 percent increase over the previous year. And though the Los Angeles-area company also sells sodas, teas and smoothies, the Monster drinks accounted for 94 percent of the increase in gross sales.

Hansen is up another 2.62 to 87.25 (a new all-time high):

Travelzoo Rebounds...

Travelzoo (TZOO +9.8%) shoots higher following Friday's news that Facebook plans to shut down its daily deals program, perhaps easing competitive pressure on industry leaders. But Travelzoo also has been a rumored takeover candidate, so a fresh round of speculation could be pushing shares.

Amazon is also jumping into this arena with their daily coupon alerts.  Travelzoo is the originator of travel specials spread by email.  I would think they have a great deal of value just in their email database alone.

Here is the chart.  Kind of scary but that is because traders got into the shares and ran the stock up too quickly.  I think this could easily move 20-30% higher if the market continues to rebound :

Today's Upgrades and Downgrades...

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Monday morning.

Amazon.com Inc. (NASDAQ: AMZN) Maintained Buy with $255 target at BofA/ML.
Autodesk Inc. (NASDAQ: ADSK) Reiterated Hold at Argus.
Astec Industries, Inc. (NASDAQ: ASTE) named Value stock of the day at Zacks.
Baidu, Inc. (NASDAQ: BIDU) Raised to Neutral at Credit Suisse.
BlackRock, Inc. (NYSE: BLK) Reinstated as Buy with $216 price target at BofA/ML.
Chimera Investment Corporation (NYSE: CIM) lowered target to $3.15 at BofA/ML.
Merge Healthcare (NASDAQ: MRGE) named Bear of the Day at Zacks.
Pep Boys-Manny, Moe & Jack Inc. (NYSE: PBY) Maintained Buy but cut target to $13 at Argus.
Robert Half International Inc. (NYSE: RHI) Cut to Hold at Citigroup.
Royal Bank of Canada (NYSE: RY) Cut to Neutral at BofA/ML.
Saks, Inc. (NYSE: SKS) named as Bull of the Day at Zacks.
Skullcandy Inc. (NASDAQ: SKUL) Started as Buy with $22 target at BofA/ML; Started as BUy at KeyBanc.
Universal Technical Institute Inc. (NYSE: UTI) Reiterated Buy and $20 target at Argus.
Zillow, Inc. (NASDAQ: Z) Started as Buy at Citigroup.

What happened to all the negativity???

It's amazing that we have temporarily forgotten all the negative European headlines as well as the double dip recession hype...

I still maintain that this latest correction was just that...a correction...where traders took advantage of slow trading, a political stalemate, the ridiculous downgrade of US Debt, and lack of new monies coming into the market from individual investors.  Earnings from US companies continues to be better than expected for the most part.

Dollar Tree (DLTR) up 2.50 to 73....

Dollar Tree, Inc. operates a discount variety store chain. The Company sells an assortment of everyday general merchandise. Dollar Tree sells its merchandise at the $1.00 price point. The Company operates throughout the United States.

CF Industries + 5.15 to 185.50

CF Industries Holdings, Inc. manufactures and distributes nitrogen and phosphate fertilizer products in North America. The Company’s principal products in the nitrogen segment are ammonia, urea and urea ammonium nitrate solution and its principal products in the phosphate segment are diammonium phosphate, monoammonium phosphate, and granular muriate of potash.

McDonalds Up 0.60 to 90.52

Here are a few stocks hitting 52 week highs....

Terra Nitrogen Company (TNH) Up 7 to 182. Terra Nitrogen Company, L.P., through its subsidiaries, markets and produces nitrogen, fertilizer, crop protection products, and seed and services for agricultural, turf, ornamental, and other growers. The Company also produces nitrogen products and methanol for industrial customers.

We pointed out the move on Terra Nitrogen last week.

20 minutes in....

We are getting a broadbased rally.

Dow +185 to 11469
Nas +49 to 2529
S&P +21 to 1198

Gold is selling off again.

Monsanto down $3 on WSJ report....

Monsanto Co. (MON) is down 3.00 to 67.60 this morning.  Corn plants that the agriculture products company genetically modified to thwart a voracious bug are falling prey to the pest in some Iowa fields, Wall Street Journal reported.

Looks like a buying opportunity to me.

Insurance stocks get the best case scenario...

Insurance stocks could get a boost this morning, as Morgan Stanley issues a report saying that Irene presents a perfect opportunity for insurance companies to raise premiums. Among the stocks mentioned are Travelers (TRV), ACE Limited (ACE), Axis Capital (AXS), and Chubb (CB).

Where are we anyway???

We closed on Friday with the Dow at 11284.  Looks like this morning we will open possibly 100 points higher.  Such an open would put us right around the same place we were on Wednesday, August 17, before we sold off over 400 points on the next day.  Funny thing is the media hasn't said much about that, have they???

A move above 11500 would be a breakout off the bottom made on August 9.

Hurricane fizzles out....

Well that was a whimpy hurricane.  Being from New Orleans, Irene had to be one of the lightest storms I've seen...especially considering the media's predictions that we would have a Category 4 make a direct hit on NYC.  The news media seems to be getting more out of control every year (kind of the same as we see with their reporting on the stock market).  Futures are up this morning...my guess in relief that we didn't get as much damage as expected.

Nice gains on slower trade....

Stocks traded broadly higher following comments from the Fed that they will not start a QE3 program...at least not yet.  Here are the closing numbers:

Dow +134 to 11284
Nas +60 to 2479
S&P +17 to 1176

Briefly it looked like traders were going to sell off their holdings as we moved into an uncertain weekend, but the selloff didn't hold.  The worries are that the exchanges will not be able to open on Monday due to Huricane Irene.  The NYSE assures everyone that they will be open...no matter what happens.  We shall see.

All in all, it was a nice close to the week.

Have a nice weekend and stay safe everybody!!!

Stock of the Week: Universal Display (PANL)

Check out this stock.  Universal Display (PANL) is up 4 to 51 today capping a spectacular week for the stock.  The stock closed last Friday at 27.92.

On Monday it was announced that Samsung – “the world’s leading developer and manufacturer of active-matrix OLEDs” – had signed a new OLED patent license and supply deal with Universal. Samsung uses the screens on its Galaxy S line of smart phones.


Terms of the deal call for Samsung to pay a license fee to Universal Display, and to buy a minimum amount of phosphorescent OLED material use in OLED products. The deal runs through the end of 2017.

At 2 pm....

Stocks are staging a broad rally as Advances are outnumbering decliners by a 5 to 1 margin.  Up volume is 7 times down volume.

Dow +145
Nas +62
S&P +18

Chipotle (CMG) is up 11 to 300.  I mention this because I just did my part to support that stock. Love those burritos!!!

At Noon, it's an all out rally....

Dow +153
Nas +56
S&P +21 to 1180

Short Fleetcor (FLT)...

A former employee told me that this one is a great short.  Fleetcor (FLT).  They are the ones who sell the Fuelman contracts to companies looking for a discount on gasoline purchases for their fleet of cars and trucks.  Apparently management is shaky.  Here is an SEC filing from August 15:

Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.


On August 12, 2011, Van Huff gave notice of his resignation, effective September 2, 2011, from his position as Chief Information Officer of FleetCor Technologies, Inc. (the "Company"). Mr. Huff resigned in order to pursue personal interests. After his departure, Mr. Huff has indicated that he will remain available to consult with the Company in connection with the transition of his responsibilities.

Here is the chart:

Apple trading higher....

After an initial selloff on the news, Apple is now trading higher than where it was before it was announced that Steve Jobs was stepping down as CEO.

The stock is currently up 7.25 to 381.

Tech leads market higher.....

After "careful" thought, looks like traders like what Bernanke is saying in Jackson Hole.  Stocks just turned positive on the day, with high beta names leading the way.

Dow +3
Nas +25
S&P +3

Gold is selling off its earlier highs.

Let's revisit Interdigital (IDCC)....

Over the last month, rumors have been swirling that Google, Qualcomm and several others are looking to purchase Interdigital, a company with many important patents in the cell phone industry.  Here is the chart:

This is what is known as a High Tight Flag pattern, one that can be extremely bullish...if the stock breaks out of it to the upside.  As I write this, IDCC is up 2.64 to 68.80

Keep an eye on this one.

What a week for travel in the Northeast...

JetBlue (JBLU +0.5%) becomes the first large airline to reshuffle its schedule ahead of Hurricane Irene, canceling 882 flights from tomorrow through Aug. 29, most of them running through New York's JFK airport and Boston. Other major carriers are sure to follow

Market unimpressed by Bernanke's comments...

A transcript of Bernanke's intended remarks was just released.  There is no mention of QE3.  The market initially sold off 200 points on the release. 

This was no surprise folks.  In fact this is good news.  We don't need more Fed manipulation of the economy.

Let's see what happens this afternoon.

Amazon going after Groupon market....

Have you received an email from Amazon Local yet???  I just got an offer for $25 off at some random Moroccan restaurant in Arlington...for only $12.  Oooooo...how tempting.

Great.  Just what we need.  More Spam!!!

Did you know today is National Toilet Paper Day???

Isn't every day toilet paper day? That seems accurate in the U.S. where the average consumer uses more than 20,805 sheets annually, according to Earth411. The first documented use of toilet paper can be traced to the 6th century, in early medieval China, according to the Shanghai News and Press Bureau. Paper is one of China's greatest inventions, and the Chinese had been using paper as wrapping and padding material in China since the 2nd century BC.

The first time toilet paper sold on a roll was on Aug. 26, 1871, according to Dickinson College.

Charmin is celebrating National Toilet Paper Day by giving away coupons on Aug. 26 through its Facebook page.   Guess they got this idea from Krispy Kreme...

15 minutes in....

The market is seling off slightly, ahead of Bernanke comments later this morning...

Dow -101
Nas -13
S&P -9

Gold is higher.

Today's Upgrades and Downgrades...

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Friday morning.

Big 5 Sporting Goods (NASDAQ: BGFV) named Bear of the Day at Zacks.
Biogen Idec Inc. (NASDAQ: BIIB) Reiterated Buy with $115 target at Argus.
Eaton Corporation (NYSE: ETN) named as Bull of the Day at Zacks.
Hartford Financial Services Group Inc. (NYSE: HIG) Reiterated Buy but cut target to $26 at Argus.
Human Genome Sciences Inc. (NASDAQ: HGSI) Maintained Outperform but cut target to $27 at Credit Suisse.
Pandora Media, Inc. (NYSE: P) Reiterated Buy and raised target to $19 at BofA/ML.
Regeneron Pharmaceuticals, Inc. (NASDAQ: REGN) Cut to Hold at Citigroup.
Research in Motion Ltd. (NASDAQ: RIMM) Raised to Buy at Stern Agee.
rue21, Inc. (NASDAQ: RUE) Raised to Buy at BofA/ML.
Sequenom Inc. (NASDAQ: SQNM) Started as Outperform at William Blair.
VMware Inc. (NYSE: VMW) Raised to Outperform at Pacific Crest.
World Fuel Services Corporation (NYSE: INT) named Value stock of the day at Zacks.

Are you serious???

Medtronic Inc. (MDT). The medical device maker acknowledged that security flaws in its line of implanted insulin pumps could allow hackers to remotely take control of the devices that dose insulin to diabetes patients. But company officials said that the about 200,000 diabetes patients who use those devices need not worry about their safety because the risk of a cyber attack is extremely low.

What kind of sick individual would do such a thing...

Boeing set to unveil Dreamliner...

Boeing Co. (BA). After years of headaches and occasional heartbreak, the company is ready on Friday for the U.S. government to declare its revolutionary 787 Dreamliner safe to fly passengers. Operating certification by the Federal Aviation Administration will enable Boeing to make the first delivery of its plastics-based airplane next month to Japan's All Nippon Airways.

Tiffany raises guidance...

Tiffany & Co. (TIF) raised its full-year profit outlook as more shoppers worldwide snapped up its jewelry during the bridal season, overcoming rising gold and diamond costs. Tiffany net income rose 33 percent to $90 million, or 33 cents per share, during the quarter that ended on July 31, from $67.7 million, or 53 cents a year earlier.Tiffany raised its full-year profit outlook range by 20 cents and expects to earn between $3.65 and $3.75 per share.

East Coast prepares for Irene...

After lashing the low-lying Bahamas yesterday, Hurricane Irene was due to hit North Carolina today before heading to Virginia, Washington, New York and beyond at the weekend. Irene slightly weakened to Category 2 today from Cat. 3, but still had winds of up to 110 mph. Insurance and airline stocks took a hit on Thursday on fears of major damage and mass flight cancellations respectively.

Good Morning....All eyes on Jackson Hole.

Fed Chairman Ben Bernanke is due to give his much anticipated speech at Jackson Hole later today, and while markets rose earlier this week partly on hopes of QE3, there is little expectation he will announce further bond buying. Instead, Bernanke may unveil more modest measures to boost the flailing economy, although Rob Parenteau of The Levy Economics Institute believes it may be time to finally realize that central bankers "are not the omnipotent demigods that a generation of investors has expected them to be."

Market closes lower...

At the close:

Dow -170 to 11157.

S&P -18 to 1161.

Nasdaq -48 to 2111.



Kind of a dull day as traders reduce holdings ahead of the Jackson Hole meeting tomorrow.

Different Take on the Buffett Investment in BAC....

Mike Krieger has a different take on Warren Buffett's (BRK.A) Bank of America (BAC +9.4%) investment: It's "extremely bearish for the market, the economy and the financial system." It shows BofA did indeed need capital, Krieger says, and that the Fed may be "out of the game. No one has confidence in the Fed to come save the day," so they went to the next best thing: "Uncle Warren."

ATPG Oil and Gas continues to rally....

Yesterday, I pointed out that ATPG might be worth a play.

Today this stock is up another 10% (+1.25 to 13.03)

At 2 pm.....

Dow -128
Nas -32
S&P -6

Bank of America is now up 73 cents
Apple is down 3.55
Gold is slightly lower

The latest on Irene....

Hurricane Irene is now on a path that could take it dangerously close to, if not over, the mid-Atlantic coastline and New York City on Sunday, posing a serious danger to millions of people.  Irene could be "once-in-50-year" hurricane for the Northeast.

The AccuWeather.com Hurricane Center is confident that Irene will strike the Outer Banks of North Carolina Saturday evening as a strong Category 3 or Category 4 hurricane.  Beyond that point, latest indications put Irene on a path extremely close to or over the mid-Atlantic coast and New York City before plowing into western New England. This could mean the worst effects from a hurricane in the region in 50 years.

More on Jackson Hole....

Fed chief Ben Bernanke is due to address central bankers at an annual symposium in Jackson Hole,Wyoming, on Friday. His speech last year laid the groundwork for the Fed's $600 billion bond-buying program to revive a sputtering U.S. economy.


While many doubt Bernanke will immediately commit to conducting a third round of quantitative easing at the Jackson Hole summit, investors generally expect him to stress that the central bank stands ready to act if necessary.

The market is selling off today, ahead of the meeting.

Mid-day update.....

Stocks are selling off as the day progresses:

Dow -181
Nas -46
S&P -20

After two nice updays we were due for some sort of profit taking ahead of tomorrow's Fed comments from Jackson Hole WY. 

Individual Investors Turn Bearish...

The AAII Investor Sentiment Survey shows more investors came off the fence from neutral and defined their outlook for stocks over the next 6 months.

Bullish sentiment 36.4% vs.Bearish sentiment 41%

What a surprise......NOT!!!

I kind of agree with this....

Let's get real: In the long run, Apple (AAPL -1.6%) will not be the same company without Steve Jobs, Jeff Macke writes. Consider Microsoft's (MSFT) stock since Bill Gates left day-to-day operations in January 2000. From Henry Ford to Sam Walton to Howard Shultz, the history of companies after the departure of charismatic long-time leaders tends to be ugly.

I'll add another one: Gateway Computer crashed after its founder Ted Waite left.  Jeff Macke is the bald headed guy who used to be on Fast Money and mysteriously disappeared.

Traders sell into open.....

Not much going on here, but after opening up nearly 100 points the Dow is now down 142.

Two biggest stories: 

Bank of America stock is now up only 87 cents after opening 1.50 higher on the Buffett news.

Apple has been down 6 points most of the morning as traders bought that following the 20 point loss in the aftermarket last night.  A great example of why trading in the post market should be avoided.

Gold bounced off of the 1700 level this morning and is now back to 1725.  That is still down $55 an ounce from yesterday's close.

Pat O'Brien's Hurricane Recipe.....

I'll be making these at my house on Friday night...

2 oz Myer's Dark Jamaican Rum
2 oz Silver White Light Rum
2 oz Passion-fruit Juice, Yellow
1 oz 100% Orange Juice
1 tsp Fresh Lime Juice
1 tbsp Simple Syrup
1 tbsp Grenadine Syrup

Directions: Mix up and drink heavily.  Maybe the real Hurricane will blow over.

Does anyone actually subscribe to a music service for their phone???

Confirming rumors, Research In Motion (RIMM) is launching a subscription music service for BlackBerry owners. However, critics are already panning the $5/month service as another sign of RIM's consumer myopia.

Today's Upgrades and Downgrades...

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Thursday morning.

American Eagle Outfitters, Inc. (NYSE: AEO) Raised to Neutral from Sell at Lazard.
Apple Inc. (NASDAQ: AAPL) Maintained Overweight at JPMorgan; Maintained Outperform at Credit Suisse; Maintained Buy at BofA/ML.
Ariba Inc. (NASDAQ: ARBA) Reiterated Hold at Argus.
BHP Billiton Ltd. (NYSE: BHP) Raised to Buy at Societe Generale.
Casey’s General Stores Inc. (NASDAQ: CASY) Raised to Buy at BofA/ML.
China Unicom (NYSE: CHU) Raised to Outperform at Credit Suisse.
F5 Networks, Inc. (NASDAQ: FFIV) Raised to Buy at Stifel Nicolaus.
Gol Linhas Aereas (NYSE: GOL) named Bear of the Day at Zacks.
Hewlett-Packard Co. (NYSE: HPQ) Cut to Sector Perform at RBC.
Kennametal Inc. (NYSE: KMT) Started as Outperform at Credit Suisse.
Old Dominion Freight Line, Inc. (NASDAQ: ODFL) named Value stock of the day at Zacks.
SAP AG (NYSE: SAP) Started as Buy at RBS.
Shanda Games Limited (NASDAQ: GAME) Raised to Buy at Deutsche Bank.

9:45 am update.....

The market opened higher on the news that Warren Buffett is supporting Bank of America stock.  Since the open we have settled back down a bit.

Dow +40
Nas +4
S&P +1

Bank of America stock is up 1.26 to 8.25
Apple had been down 20+ points last evening, now it is only down 6.33 to 370
Gold is selling off hard again.

Buffett to the rescue of BAC...

This just in....

Warren Buffett is investing $5 billion in Bank of America, putting the Oracle of Omaha’s golden seal of approval on the battered banking giant. 

Remember that Buffett rode to the rescue of several besieged financing giants during the financial crisis, investing in Goldman Sachs and General Electric, among others, during the heat of financing panic in 2008 and 2009.

Buffett’s seal of approval is legendary and he charges a fortune for it. He’s buying 50,000 preferred shares of Bank of America at a dividend of 6% a year. He’s also receiving warrants on 700 million shares at a strike price of about $7.14 a share. Those warrants would have been out of the money yesterday, but will be in the money as soon as markets open. The deal will make Buffett one of Bank of America’s biggest shareholders.

Futures have spiked as a result...Look for a big rally in bank shares.

Amazon + Hulu = Trouble for Netflix....

According to the Wall Street Journal, Amazon, along with other potential bidders, Google, DirecTV and Yahoo are supposed to submit bids for Hulu today. Hulu, which is currently owned by News Corp., Walt Disney and Comcast, could be acquired for as much as $2 billion, depending on how the auction goes and the content is split up.

If Jeff Bezos and his team were to get Hulu, it would be a massive win for the Seattle-based company, and be a huge blow to Netflix. Amazon already has over 100,000 streaming videos through its Amazon Prime service, and it would take on Netflix in a way that should leave Reed Hastings and his team up late at night.

UBS, Citi cut global growth view, rule out recession...

UBS and Citigroup lowered their forecast for global growth, with sharp reductions to its euro zone view and more modest cuts for China, but ruled out the likelihood of a recession for now.

Steve Jobs quits as Apple CEO, Cook takes over...

Steve Jobs resigned as CEO of Apple Inc on Wednesday and passed the reins to his right-hand man Tim Cook, saying he could no longer fulfill the duties in a bombshell announcement that raised fears his health has deteriorated further.

Wednesday's Recap...

Leading stocks behaved decently Wednesday as the major indexes rose for a third straight day.  The Nasdaq rallied 0.9% and finished almost at the day's high during a seesaw session. That followed a 4.3% jump Tuesday, which marked a follow-through on a new rally that began Aug. 9.  The S&P 500 closed it it's highs of the day, rising 1.3%, beating the Nasdaq's gain. The NYSE composite was up 0.9% and the small-cap Russell 2000 gained 1.4%. Gold miners fell hard.

After the bell, news that Steve Jobs is stepping down as CEO of Apple put pressure on the markets overnight.

Stocks Rally into the close....

Dow +143
Nas +21
S&P +15 to 1177

Gold sells off again -5.12% TO 1172

Levels to watch are 1200 on the S&P and 1125 in Gold.

Ouch!!! I don't even want to think about where they inject this....

Allergan (AGN +2.4%) announces FDA approval for its BOTOX solution to urinary incontinence for patients with neurological conditions. Shares started trading higher yesterday in advance of today's announcement.  AGN is currently up 1.86 to 77.48

RIMM looks to compete more with iPhone....

Research In Motion (RIMM) is up 2.9% after reports that the QNX phones it's introducing early next year will run apps made for Android (GOOG). At 250K apps, the Android Market is roughly six times the size of RIM's own app store.

Considering RIMM is down to $28 from a high of $70 in February, it might be time to get back in.  Looking at the chart below you can see the stock has put in a nice bottom, a break above $30 would be very positive.

Bernanke to try to flatten the yield curve...

Many expect Bernanke to give support on Friday to a version of "Operation Twist," a '50s-era program to flatten the yield curve. If that happens, long-term Treasury buyers could be looking at lower returns going forward. Risk-averse investors have poured billions into Treasury funds this year, widening the spread between long-term Treasurys and corporate debt.

Amazon to use Kindle as ad tool....

Amazon (AMZN -1.1%) launches daily deals on Kindle ebooks, adding to the firm's presence in the online coupon space as an investor in LivingSocial.

Fertilizer play with a nice dividend...

Terra Nitrogen (TNH) is on a serious roll...check out this nice chart.  Add in a 8.84% dividend and this looks like a good one...

ATPG Oil and Gas might be worth a play....

Shares of ATP Oil & Gas (ATPG +6.2%) get a boost this morning, after the driller says it has successfully brought online the well at its Telemark Hub location in the deep-water Gulf of Mexico after a 16 month delay.

ATPG currently trades at 10.82.  It traded above $22 a share before the BP spill and subsequent ban on offshore drilling was instituted.

Just a thought....

What if we have an earthquake aftershock at the same time we get Hurricane Irene??? 

How cool would that be???

Update on Hurricane Irene...

Hurricane Irene intensified into a Category 3 hurricane (the threshold for major hurricane classification) Wednesday morning.  Irene will likely then strengthen into a powerful Category 4 hurricane during its dangerous assault on the Bahamas into Thursday.

After leaving the Bahamas, Irene will take aim at the North Carolina Outer Banks and New England this weekend. Florida and Georgia will be spared in the process.

Dominion Power Back up and Running...

Shares of Dominion Resources (D +1.5%) gain after the firm says the North Anna Power Station is no longer relying on back-up generators following the 5.8-magnitude earthquake.

Technology Picks....

24/7 Wall St. picks 12 big techs trading at steep market discounts while also sporting solid financial fundamentals: AMAT, CSC, GLW, DELL, HPQ, INTC, KLAC, LRCX, MSFT, MU, SNDK, WDC.

Today's Upgrades and Downgrades...

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Wednesday morning.

Boston Scientific Corporation (NYSE: BSX) Reiterated Buy as Value at Zacks; Cut to Market Perform at Morgan Keegan.
CIGNA Corporation (NYSE: CI) named as Bull of the Day at Zacks.
Computer Sciences Corp. (NYSE: CSC) Maintained Underperform as Bear of the Day at Zacks.
Elan Corporation (NYSE: ELN) Raised to Outperform at Credit Suisse.
Google Inc. (NASDAQ: GOOG) Started as Outperform at Baird.
NASDAQ OMX Group (NASDAQ: NDAQ) Raised to Buy at UBS.
Newmont Mining Corp. (NYSE: NEM) Raised to Sector Perform at RBC.
Nucor Corporation (NYSE: NUE) Raised to Overweight at Morgan Stanley.
Royal Caribbean Cruises Ltd. (NYSE: RCL) Cut to Hold at Argus.
Sanmina-SCI Corp. (NASDAQ: SANM) Cut to Underperform at RBC.
Saks Incorporated (NYSE: SKS) Raised to Neutral at Credit Suisse.
United States Steel Corp. (NYSE: X) Cut to Equal-Weight at Morgan Stanley.
VIVIUS Inc. (NASDAQ: VVUS) Reiterated Buy and $9 target at BofA/ML

So you want to short Gold???

This might be the way to play it:  GLL - the Double Short Gold ETF

Gold selling off again....

Gold down to $1774.70 per ounce.  Note how quickly the selloff can be in this.  If/when it does break down below $1700, look for an acceleration downward as gold "investors" panic out.

Market shakes off poor start.....

Dow +102
Nas +21
S&P +11

Banks, Oils and Tech now leading the market higher.

A key reversal so far in Bank of America stock.  The stock is up 0.54 to $8.54.  

I'm really liking Mastercard here....

During last quarter, Berkshire Hathaway increased its position in MasterCard (NYSE: MA ) , by a whopping 88%. Many believe that the move stems from financial-stock bull Todd Combs, a young investor whom Buffett has tapped to manage some of the company's money. Combs may be one of the candidates to succeed Buffett as well.


The stock is currently up 4 points this morning to $326.

15 Minutes in....

The market is shaking off premarket negativity and has just turned positive.

Dow +3
Nas +1
S&P +1

Banks leading the market higher...

More on Mortgage Applications....

Applications for home purchases dropped 5.7% to the lowest level since December 1996. Volatile markets and "rampant uncertainty regarding the economy kept prospective homebuyers on the sidelines," the Mortgage Bankers Association says.

Premarket Movers....

Gainers:

AVGO +11%. RENN +12%. ATPG +10%. ELN +5%. CPST +4%.

Losers:
 
PSUN -22%. UTHR -21%. HSOL -10%. TCAP -8%. AEO -7%. HGSI -7%. BUD -4%. TTM -4%. LPL -4%. BCS -4%. AUO -3%. STD -3%.

CVS Caremark to buyback another $4B of stock....

CVS Caremark (CVS) announces a $4B stock buyback program on top of an earlier $2B buyback. The drugstore operator says it will repurchase at least $1B in stock by the end of the year. Shares +2.1% premarket.

Stocks ignore negative reports....

Investors paid no mind to two weak reports Tuesday:

July new-home sales fell 0.7% to an annual rate of 298,000 units. Sales fell to a five-month low and missed expectations for 310,000 units.

The Richmond Fed's manufacturing index tumbled to -10 in August from -1 in July. That was the lowest reading since June 2009.

When stocks dismiss bad news, that shows strength.

Earnings Due Today...

• American Eagle Outfitters Inc. (AEO). Expected to report Q2 earnings of 11 cents a share, according to Thomson Reuters I/B/E/S

• Applied Materials Inc. (AMAT). Expected to report Q3 earnings of 33 cents a share

• Express Inc. (EXPR). Expected to report Q2 earnings of 15 cents a share

• Guess Inc. (GES). Expected to report Q2 earnings of 81 cents a share

• Heico Corp. (HEI). Expected to report Q3 earnings of 40 cents a share

• Semtech Corp. (SMTC). Expected to report Q2 earnings of 48 cents a share

• Solera Holdings Inc. (SLH). Expected to report Q4 earnings of 60 cents a share

This can't be bad for Boeing....

Delta Air Lines Inc. (DAL). The company is expected to order 100 Boeing Co (BA) extended-range 737 planes as it looks to replace older aircraft with more fuel-efficient models, sources with knowledge of the matter said on Tuesday. The order could be valued at up to $8.6 billion based on average prices.

Toll Brothers Q3 profit rises; narrows Fiscal Year outlook...

The luxury builder posted a higher quarterly profit, helped by a rise in orders, but narrowed its home delivery outlook for the year as it expects the housing sector to remain in a fragile state due to weak consumer confidence.

Hansen breaks out....

Hansen Natural (HANS) cleared a third-stage, lopsided cup-with-handle base in more than double its average trade. The distributor of Monster Energy drinks closed at an all-time high and is 3% above an 82.10 buy point.

This from IBD's morning commentary on yesterday's action:

"The major indexes soared broadly Tuesday, giving the market a hopeful sign.

The Nasdaq bolted 4.3%, the S&P 500 3.4% and the NYSE composite 3.3%. All closed right at their session highs. Volume rose on both major exchanges.

Tuesday's big gains along with the higher volume constituted a follow-through, a confirmation signal for the market rally that started Aug. 9.

Although it's historically a bullish sign for the market, a follow-through signal is not the holy grail. So don't start buying stocks with both hands.  The market still faces some question marks."

IBD changed their outlook to "Market in confirmed uptrend."

Futures Lower as Japan Debt is Downgraded....

Stock Futures are lower this morning following Moody's downgrade of Japanese Debt rating overnight.  Dow Futures are 101 points lower.

Moody's cuts Japan rating, blames politics


Moody's Investors Service cut its rating on Japan's government debt by one notch to Aa3, blaming a build-up of debt since the 2009 global recession and revolving-door political leadership that has hampered effective economic strategies.

Warren Buffett's Top 10 Dividend Stocks.....

Companies and their dividend yields as of today's close.

1. Glaxo Smith Kline (GSK) 5.00%
2. Conoco Phillips (COP) 4.01%
3. Johnson & Johnson (JNJ) 3.50%
4. Sanofi (SNY) 3.59%
5. Procter & Gamble (PG) 3.33%
6. Kraft (KFT) 3.40%
7. M&T Bank (MTB) 3.85%
8. General Electric (GE) 3.86%
9. UPS (UPS) 3.25%
10. Coca-Cola (KO) 2.72%

Nice Close....

Dow closes 320 points higher to 11175
Nasdaq + 100 to 2446
S&P +38 to 1162

Keep an eye on the 1200 level for S&P

Also Gold closes -$64 to 1827

Sprint to sell iPhone 5???

Sprint (S +10.8%) shoots higher on a WSJ report the carrier will be selling Apple's (AAPL) iPhone 5. Rumors of Sprint offering the next iPhone have existed for months.

Just a few Gainers....

Chipotle (CMG) +20.29 to 293.87
Amazon (AMZN) +15.70 to 193.16
Green Mountain (GMCR) +8.43 to 93.76
Nike (NKE) +4.02 to 83.25
Perrigo (PRGO) +3.43 to 90.10
Carbo Ceramics (CRR) +9.88 to 140.75

Notable Losers in an Up tape....

Goldman Sachs (GS) -0.43 to 106.12
Bank of America (BAC) -0.20 to 6.22
Travelzoo (TZOO) -1.73 to 32.45
Urban Outfitters (URBN) -0.64 to 26.39

Dominion Resources loses power...

Dominion Resources (D) loses all offsite power at its North Anna nuclear plant in Virginia, and is using backup generators to keep spent fuel cool. D's shares fell more than 2% immediately following the quake before rebounding a bit.

You think I was kidding????

Take a look at this market.  Taking off this afternoon following the Earthquake (Dow now up 272 points).  The Northeast is all abuzz!!!

Toyota Lowers price on Camry...

Toyota (TM +2.5%) introduces a new generation of its bestselling Camry sedan at lower prices to compete with Hyundai’s Sonata and the increasingly stiff competition in the mid-size sedan segment. Camry’s market share in the segment has sunk to 13.8%, down from 16.5% in 2010 and 18.8% in 2009.

Amtrak shuts down service....

so they can inspect potential damage to tracks along the East Coast.

Market Update following Earthquake...

Stocks give up a few points, but mostly show little reaction to the East Coast earthquake.

Dow +175
Nas +61
S&P +21

How about an earthquake rally!!!

5.8 magnitude Earthquake strikes in Mineral, Virginia, SW of DC area.

What was that????

A mini Earthquake just happened....Wow!!!

Noon Update....

Stocks are broadly higher as Banks (minus BAC) move higher along with commodities and technology.  Gold and silver selling off slightly.

Dow + 197
Nas +55
S&P +22


Also, the Volatility Index is falling below 40 to 38.68.  The VIX is a reading of fear in the market.  Typically the Vix sits near 20, but in the last few weeks it has spiked above 40.  Spikes above 40 have historically indicated that fear is high...a possible time to buy??

Looking for a Buy Signal???

Look for the S&P 500 to break above last resistance level of 1200....

A rise in the S&P would probably be accompanied by a selloff in Gold below previous support of 1725.

New Home Sales Slide, Inventories Remain Manageable...

New home sales decreased for the third consecutive month. Sales fell from a downwardly revised 300,000 (from 312,000) in June to 298,000 in July. New home sales were expected to increase to 310,000.

Inventories remained at a 6.6 months supply. The total number of homes for sale fell slightly from 166,000 in June to 165,000 in July, reaching a new historical low. With the number of homes currently under construction in a steady decline, inventory levels should fall regardless if sales pick up.

Perfect World shares climb....

Chinese online-game developer Perfect World (PWRD +14.2%) jumps after reporting a solid Q2. Profit rose 61% on strong online revenue growth and improved cost controls, as efforts put in place last quarter to retool its strategy begin to bear fruit. Separately, ThinkEquity and CLSA both upgrade the shares.

FDIC: "Problem Bank List" declines....

As per the FDIC the second quarter “Problem Bank List” declined for the first time since 2006. Because of the lower number of expected bank failures, the FDIC deposit insurance fund was positive for the first time in two years.

Net income at the country’s bank rose 38% to $28.8 billion from a year earlier, the eighth consecutive quarterly improvement as results were boosted by a seventh consecutive drop in provisions for loan loss reserves. Charge offs declined by 42%.

The significance behind this data is huge.

In order to have a recovery, the banking system must recover first. The regulatory environment is extraordinary harsh, where the mantra is find any and all issues and force banks to reserve or charge it off.

10:00 am update....

Markets are strengthening...

Dow +114
Nas +32
S&P +11

Bank of America continues Freefall....

The stock is down another 30 cents to $6.12 this morning.



General Dynamics wins contract...

General Dynamics Corp. (GD). The company has won a U.S. Air Force contract worth up to $900 million to supply a worldwide military broadcast service with new hardware, the Defense Department said on Monday.

Today's Upgrades and Downgrades...

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Tuesday morning.


Aetna Inc. (NYSE: AET) Raised to Buy at Jefferies.
AMR Corp. (NYSE: AMR) Raised to Neutral at BofA/ML.
Archer Daniels Midland Company (NYSE: ADM) Started as Equal-Weight at Barclays.
Arcelor Mittal (NYSE: MT) Cut to UNderperform at BNP Paribas.
Bunge Limited (NYSE: BG) STarted as Overweight at Barclays.
Cincinnati Financial Corporation (NASDAQ: CINF) Maintained Underperform as Bear of the Day at Zacks.
Coach Inc. (NYSE: COH) Raised to Buy at Jefferies.
Expedia Inc. (NASDAQ: EXPE) Started as Neutral at Credit Suisse.
Fastenal Company (NASDAQ: FAST) Raised to Outperform as Bull of the Day at Zacks.
Human Genome Sciences Inc. (NASDAQ: HGSI) Started as Buy at Brean Murray.
Insight Enterprises, Inc. (NASDAQ: NSIT) Reiterated Buy as Value at Zacks.
Juniper Networks, Inc. (NYSE: JNPR) Raised to Outperform at Morgan Keegan.
Kimberly-Clark Corporation (NYSE: KMB) Raised to Equal-Weight at Barclays.
Priceline.com Incorporated (NASDAQ: PCLN) Started as Outperform with $720 target at Credit Suisse.
Ryland Group Inc. (NYSE: RYL) Raised to Neutral at Credit Suisse.
US Airways Group, Inc. (NYSE: LCC) Raised to Buy at BofA/ML.
Sanderson Farms, Inc. (NASDAQ: SAFM) Raised to Neutral at JPMorgan.
Walgreen Co. (NYSE: WAG) Cut to Underweight at Barclays.

Apple starts manufacturing cheaper iPhone....

Apple Inc. (AAPL). Asian suppliers to Apple have begun manufacturing a lower-priced version of its hot-selling iPhone 4 with a smaller 8 gigabyte flash drive, according to two people with knowledge of the matter.

Stocks open higher....

Dow +37
Nasdaq +10
S&P +3

Futures were indicating a much higher open.  Obviously traders are selling into any strength.

Gold ETF is now larger than S&P Spiders...

OK....if this isn't a red flag.  The value of the Gold ETF (GLD) has just surpassed the value of the S&P ETF (SPY).

S&P replaces president after U.S. downgrade...

Standard & Poor's said its president is stepping down, capping two weeks of controversy following the rating agency’s downgrade of U.S. government debt on Aug. 5 that sparked a row with the Treasury.

So...is S&P going to reinstate the AAA rating???

China now the largest PC Market....

According to IDC, China surpassed the U.S. as the world's largest PC market in Q2. Strong PC demand in emerging markets has buoyed Intel (INTC) and Microsoft (MSFT) this year, helping offset weakness in the U.S. and Europe. Though in Microsoft's case, widespread piracy limits the profitability of the Chinese market.

Premarket Movers....

Premarket gainers: PMC +38%. PANL +28%. MPEL +10%. OCR +9%. LLYG +7%. ERIC +4%. ARMH +4%. UBS +3%. SNY +3%. GSK +3%. SODA +3%. SINA +3%. ALU +3%. AMR +3%. NVS +3%.


Losers: TSL -7%. GSS -5%. GFI -4%.

Crude rises...

Crude rises amid resistance from government loyalists in Tripoli against the rebel forces, characterized by the public appearance of Muammar Gaddafi's son Saif al-Islam, whom the insurgents said they had captured. Brent crude +0.2% to $108.60 and WTI +1% to $85.30.

Today's Upgrades and Downgrades....

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Monday morning.


Agrium Inc. (NYSE: AGU) Cut to Underperform at BofA/ML.
Intrepid Potash, Inc. (NYSE: IPI) Cut to Neutral at BofA/ML.
Newmont Mining Corp. (NYSE: NEM) Raised to Buy at Citigroup.
OmniVision Technologies (NASDAQ: OVTI) Reiterated Buy with $38 target at Canaccord Genuity.
PMI Group, Inc. (NYSE: PMI) named as Bear of the Day at Zacks.
Seattle Genetics Inc. (NASDAQ: SGEN) Reiterated Sell with $10 target at Canaccord Genuity.
SLM Corporation (NYSE: SLM) Raised to Outperform at Credit Suisse.
SunPower Corporation (NASDAQ: SPWRA) Raised to Hold at Auriga.
Toyota Motor Corporation (NYSE: TM) Raised to Outperform as Bull of the Day at Zacks.
Under Armour, Inc. (NYSE: UA) Started as Buy at Canaccord Genuity.
Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) Raised to Overweight at Piper Jaffray.

Perrigo Holds up Well....

Shares of Perrigo (PRGO) continue to hold up well in an awful market.  The stock is currently up $1.13 to $86.30 and seems to have strong support at the $85 level.  This would be a good one to own if / when the market rebounds.

Bank of America continues to slide....

The slide in Bank of America (BAC -6.1%) continues, now trading at $6.55. Low print in this bear market: $6.31. Low close: $6.51. Other banking shares have given up sharp early gains, but remain slightly higher to moderately lower.

Market trades back down after strong open....

After the Dow gapping up nearly 170 points, we are now back to unchanged on the day....My guess is Margin calls are putting pressure on the market.  Typical Margin call deadlines are 11:45 am and 2:30 pm.

If we can get past 2:30 pm today with a gain, that at least prevets further margin call pressure tomorrow.

Gold Move Parabolic....

These kind of panic moves usually end badly for those who "invest" in them.  Let's keep an eye on this chart. 

Morning Movers.....

Accretive Health Inc. (AH) declined 2.1 percent to $28. The Chicago-based company that helps hospitals collect medical bills from patients reported second-quarter earnings minus some items of 12 cents a share, beating the average estimate of five analysts of 10 cents a share, according to Bloomberg data.

Capital One Financial Corp. (COF) rallied 3.1 percent to $42.10. The McLean, Virginia-based lender that acquired ING Direct USA in June, agreed buy HSBC Holdings Plc’s U.S. credit card division for about $32.7 billion. Capital One said the deal will add to earnings in 2013.

Cree Inc. (CREE) jumped 10 percent to $32.52. The maker of energy-efficient lighting posted fourth-quarter adjusted earnings that exceeded the average analyst projection, data compiled by Bloomberg show.

Macy’s Inc. (M) gained 4.2 percent to $26.50. The second-biggest U.S. department-store chain reported quarterly earnings that beat analysts’ estimates and boosted its full-year profit forecast as sales increased faster than the retailer expected.

OpenTable Inc. (OPEN) gained 5 percent to $63.35. The online restaurant-reservation service was raised to “buy” from “hold” at Citigroup Inc. analyst Mark S. Mahaney, who cited an attractive valuation and the company’s prospects for growth and profitability.

Pegasystems Inc. (PEGA) : The developer of customer relationship management software reported second-quarter earnings that exceeded the average analyst projection, data compiled by Bloomberg show.

Polo Ralph Lauren Corp. (RL) climbed 10 percent to $132.26. The clothing retailer reported first-quarter earnings of $1.90 a share, exceeding analysts’ estimate of $1.47 on average.

SunPower Corp. (SPWRA) : The second-largest U.S. solar panel said third-quarter earnings and sales will be lower than the average analyst estimate.

Walt Disney Co. (DIS) slid 4.3 percent to $33.20. The world’s biggest theme-park operator posted third-quarter studio revenue of $1.62 billion, compared with the average analyst estimate of $1.83 billion.

Disney Beats, but uncertain on Outlook....

Walt Disney Co. (DIS). The company’s quarterly results surpassed cautious Wall Street expectations on Tuesday, but the media and entertainment giant now has to grapple with an uncertain outlook for consumer spending. Disney posted net income of $1.48 billion or 77 cents per share, versus $1.33 billion or 67 cents a year earlier.

Good Morning....Futures Lower....

at 9:15 am

Dow Futures -256
Nasdaq -48
S&P -27

Markets Close MUCH Higher....

Dow +429.92
Nas +124.83
S&P +53.07

Nice closing rally...kind of erases 2/3rds of yesterdays losses.  Tomorrow is an important day.  We need a follow-up rally!!!

Traders sell into Fed news.....

Immediately following the Fed announcement, the Dow was up 180 points, 30 minutes later the Dow is down 108.

It will be an interesting close.  We have afternoon margin calls due at 3 pm....after that, hopefully we will gain some footing.

2:15 pm: Fed Leaves Rates Unchanged....

In an unprecedented move they are saying that they are not intending on raising rates until mid 2013.  Kind of an extreme statement...ultimately good for stocks, but may get a bad reception in the near term.

Expect Margin Calls.....

Market will undoubtedly face some selling pressure between 11 am and Noon today....

Keep an Eye on Gold and Silver....

Silver started selling off last Thursday...a fall in gold would be a key sign of a shift of money looking for bargains in stocks....

Analyst Upgrades and Downgrades....

These are some of the top analyst upgrades, downgrades, and initiations seen from Wall Street research calls this Tuesday morning.


AECOM Technology Corp. (NYSE: ACM) Reiterated Buy with $33 target at Argus.
American International Group, Inc. (NYSE: AIG) Raised to Market Perform at KBW.
Berkshire Hathaway Inc. (NYSE: BRK-A) Raised to Overweight at Barclays.
Boston Scientific (NYSE: BSX) Raised to Outperform as Bull of the Day at Zacks.
CBS Corp. (NYSE: CBS) Raised to Buy with $31 target at Argus.
First Solar Inc. (NASDAQ: FSLR) Maintained Buy but cut target to $140 at Argus.
Humana Inc. (NYSE: HUM) Raised to Buy at Goldman Sachs.
McDonald’s Corporation (NYSE: MCD) Raised to Conviction Buy List at Goldman Sachs.
Merck & Co. Inc. (NYSE: MRK) Raised to Buy at Jefferies.
Pfizer Inc. (NYSE: PFE) Raised to Buy at Goldman Sachs.
PPG Industries, Inc. (NYSE: PPG) Reiterated Buy as Value at Zacks.
StanCorp Financial Group (NYSE: SFG) Cut to Underperform as Bear of the Day at Zacks.
Tyco International Ltd. (NYSE: TYC) Raised to Buy at Goldman Sachs.
Wells Fargo & Company (NYSE: WFC) Raised to Outperform at FBR.
Wynn Resorts Ltd. (NASDAQ: WYNN) Raised to Hold at Citigroup

All Eyes on the Fed....

The FOMC is due to meet today amid calls for the Fed to take action over slowing growth, especially after yesterday's stock plunge. However, with interest rates at zero to 0.25% for nearly three years and $2.3T of bond buying not spurring growth, there doesn't appear to be a huge amount the Fed can do. One option would be to replace shorter-term securities with longer maturities to reduce rates on longer-term debt. And if the Fed is considering QE3, it's not expected to announce it today.

Bring Back the Uptick Rule!!!!

With the Uptick Rule in place, shorting the market was much more difficult.  The SEC completely dropped the ball by allowing these ETF companies talk them into getting rid of the rule.  The result...a casino with no protection on the downside.

Medicis cuts outlook.....

Medicis Pharmaceutical Corp. (MRX). The company posted second-quarter profit in line with estimates and cut its full-year outlook. Medicis cut full-year earnings to $2.25-$2.56 a share from earlier view of $2.45-$2.60 a share. April-June net income fell to $28.8 million, or 43 cents a share, from $36.5 million, or 56 cents a share, a year ago.

Carrizo Oil and Gas Profit Doubles....

Carrizo Oil & Gas Inc (CRZO). The natural gas-focused energy company’s second-quarter profit rose more than fourfold helped by higher production and increase in oil prices, and said it expects 2011 production to be at par or above its prior view. Net income rose to $7.7 million, or 20 cents a share, from $1.8 million, or 5 cents a share, a year ago.

Fossil Q2 profit beats Street, but Guides Lower...

The company which sells its namesake brand as well as Michael Kors and Armani quarterly profit beat market estimates on increased sales of its watches and leather products, but the watchmaker forecast a third-quarter profit below expectations.

Fossil trading at $78 premarket down from a close of $93.  Fossil was IBD's number 2 rated stock.

Dish Network Q2 profit misses on subscriber losses

The second-largest U.S. satellite TV provider’s quarterly profit fell short of market estimates as the satellite-TV provider lost subscribers, hurt by increased competition.

Direct TV and Verizon's FIOS taking a toll on DISH.....

Futures have reversed overnight....

At 11 pm last night, the Dow Futures were down 280 points....as I write this Dow Futures are up 108 points....

Market Breadth from Yesterday....

This is about as ugly as it gets....Check out the New Lows on the NYSE (1,306).  I have been keeping track of Market Stats for 15 years, and have never seen anything close to that.  Selling volume suggests that yesterday was a complete panic selloff.