Stocks still climbing...

Another nice day, so far, on the heels of a positive day on Friday.

Dow +97
Nas +58
S&P +15 to 1253

Just about every sector is showing strength, so it looks like the market is liking the possibility of some good news on Wednesday concerning the Euro crisis.

SXCI down on Healthspring acquisition...

SXC Health Solutions (SXCI) is down big following news that customer HealthSpring (HS) will be acquired by Cigna (CI). SXCI could be negatively impacted by the deal due to its relationship with HS, which could be in danger since CI likely would provide the same services.

SXCI is currently down 13.44 to 42.98

Oracle buys RightNow Technologies...

Oracle (ORCL) will purchase RightNow Technologies (RNOW) for $43/share, about a 20% premium to the stock's Friday close.

With this deal, Oracle is squarely targeting Salesforce.com (CRM) and NetSuite (N) in the burgeoning market for cloud-based CRM software. While Oracle is a leader in traditional CRM, cloud-based solutions, with their lower up-front costs and faster rollout times, have become a growing threat.

Obviously the Street likes the deal: ORCL +0.36 to 32.46.

Stocks open higher...

Helped by positive earnings from Caterpillar and a few buyouts, stocks are pushing higher in early trading.

Dow +48
Nas +24
S&P +7 to 1245

The S&P is drifting higher thru resistance that we had previously seen in the 1225-1235 range.  Next resitance is at 1300.

I'm not really sure what to think about the European situation.  I can't tell what the market is pricing in.  It looks like traders are anticipating a solution by Wednesday.  If some solution/agreement is not fianlized by then, we could see a quick drop in equities.

Gold and Silver are holding near their recent lows, but are holding up well.  Obviously some LARGE fund or pool of money is propping that trade up.  Here are the charts on the Gold and Silver ETFs:

Caterpillar moves higher after earnings...

Caterpillar reported record sales in its third quarter and predicting full-year results will come in at the higher end of its previous forecast.

The construction equipment and machinery maker recorded a third-quarter profit of $1.1 billion, up 44% from a year earlier, on $15.7 billion in sales that were up 41% from the prior year and set a new company record. On a per-share basis, profits of $1.71 were up 40% from $1.22 a year ago and easily topped the $1.54 consensus estimate.

Excluding costs related to the acquisition of mining equipment business Bucyrus International, Caterpillar earned $1.93 per share on sales of $14.5 billion.

Even more important than Caterpillar’s third-quarter results was the company’s outlook, which sounded a fairly upbeat tone. The company said it expects full-year 2011 earnings and sales to come in at the high end of its previous guidance, at $6.75 per share and $58 billion.

CAT is currently up 4.90 to 92.32

Healthspring to be acquired by Cigna...

HealthSpring Inc., (HS) the Nashville operator of Medicare Advantage health plans, agreed to be acquired by Cigna Corp. for $55 a share, or $3.8 billion. Cigna (CI) is the Bloomfield, Conn., insurer. The deal price is a 37% premium to HealthSpring's closing price Friday at $40.16 a share. 

HealthSpring's Medicare Advantage plans have 340,000 members in 11 states and it operates a Medicare prescription-drug business with 800,000 customers, the companies said in a Monday statement.

IBD's Top 10 stocks...

Here is the latest top 10 rated stocks from Investor's Business Daily:

1. Lulumon Athletica (LULU)
2. Alexion Pharmaceuticals (ALXN)
3. Ulta Salon and Cosmetics (ULTA)
4. Herbalife (HLF)
5. Intuitive Surgical (ISRG)
6. Mastercard (MA)
7. Dollar Tree (DLTR)
8. Hansen Natural (HANS)
9. Apple Inc. (AAPL)
10. Perrigo (PRGO)

Analyst moves....

• BB&T Corp (BBT) price target raised to $24 from $22 at Citigroup

• CME (CME) price target cut to $315 from $350; rating buy at Citigroup

• Duke Realty Corp (DRE) rating raised to outperform at Baird

• Frontline (FRO) rating cut to underweight from equal-weight; price target cut to $4 from $12 at Evercore Partners

• Honeywell International Inc (HON) price target raised to $55 from $48 at Citigroup; price target raised to $59 from $57 at FBR

• ICE (ICE) price target cut to $130 from $134; rating neutral at Citigroup

• LPL Investment Holding Inc (LPLA) coverage assumed with outperform at William Blair

• Newbridge Bancorp (NBBC) price target cut to $5 from $5.50 at KBW

• Nordic American Tanker Ltd (NAT) price target cut to $13 from $19 at Evercore Partners

• Overseas Shipholding (OSG) rating cut to underweight from equal-weight; price target cut to $10 from $23 at Evercore Partners

• Schlumberger (SLB) price target cut to $84 from $88; rating buy at Citigroup

• Seagate Technology Plc. (STX) price target raised to $22 from $18; rating buy at Citigroup

• Suntrust Banks Inc. (STI) price target cut to $30 from $33 at RBC

• Taubman Centers Inc. (TCO) price target raised to $58 from $52 at KBW

• Teradyne Inc. (TER) price target cut to $18 from $21; rating buy at Citigroup

Netflix to offer service in UK and Ireland...

Netflix Inc. (NFLX). The company said it will launch a subscription service in the United Kingdom and Ireland in early 2012, offering unlimited TV shows and movie streaming over the Internet. The service will be available to customers on a monthly subscription basis, Netflix said.

Good Morning...

U.S. stock index futures are pointing to a higher open this morning on hopes for a concrete plan to solve the European debt crisis, with leaders having made some progress over the weekend.

The Dow begins the new week coming off a four week winning streak, the only one of the major averages currently in positive territory for 2011.

October, traditionally one of the worst months of the year for stocks, is on track for the best monthly gain for the S&P 500 since March 2000, while the Dow is on pace for its best monthly point gain since April 1999.

Have a good weekend....

I am checking out for the weekend.  I'll leave you with an update.  Stocks are still holding early gains.

Dow +210
Nas +46
S&P +22 to 1238

My guess is if nothing happens in Europe this weekend, that we will sell off any gains we end up with today.

Capitol One reports better-than-expected earnings...

Capital One Financial Corp. (COF). The company reported a better-than-expected quarterly profit as net interest income rose and the bank set aside less money for loan losses. Capital One reported third-quarter net income of $813 million, or $1.77 per share and total revenues rose 3.4 percent to $4.15 billion from $4 billion a year ago.

COF is up 1.91 to 42.40 on the news

Chipotle beats...stock flies...

Chipotle Mexican Grill (CMG). The company reported better-than-expected quarterly profit as robust sales at established restaurants offset higher food costs. Third-quarter net income was $60.4 million, or $1.90 per share, up from $48.2 million, or $1.52 cents per share, a year earlier and revenue rose 24.1 percent to $591.9 million.

CMG is currently up 20 to 328.20

GE meets expectations...

General Electric Co. (GE). The conglomerate reported an 18 percent rise in quarterly profit that met Wall Street's expectations, as revenue rose across its big energy, aviation, healthcare and transportation arms. Third-quarter earnings attributable to common shareholders came to $2.34 billion, or 22 cents per share, compared with $1.98 billion, or 18 cents per share, a year earlier.


GE is opening down 0.26 to 16.37

Stocks burst out of the gate...

In sympathy with a big European short covering rally, stocks are flying early.

Dow +152
Nas +30
S&P +16 to 1231

Not sure this rally will hold, but traders will probably cover all shorts by the end of the day in fear that something positive may hapen in Europe on Sunday.

Groupon sets offering price...

Groupon (GRPN) plans to offer 30M shares at about $17/share, bringing in $479M. With a total 633M shares outstanding, the IPO would give Groupon a valuation of $10.76B. Valuation estimates have ranged from $25B early this year to as low as $3-5B earlier this month.

When this comes out, it will surely be a hot one, however, once the dust settles, it will be one of the great shorts of all-time.

Good Morning...

U.S. stocks continue to be vulnerable to every headline emerging from Europe, where leaders are preparing for a weekend summit to talk about the debt crisis.

The Dow has now alternated between gains and losses for 11 consecutive sessions, the S&P 500 for seven, highlighting the uncertain nature of investor sentiment these days.

The Dow has only experienced such a streak of 11 sessions or longer five other times in its history.

We now know that a definitive plan to ease the European debt crisis won't happen at this weekend's gathering - that is now hoped to happen in a second summit set to happen by Wednesday at the latest.

Stocks close mixed...

Dow +37
Nas -5
S&P +5

Ho hum....Looks like we are tied to whatever happens in Europe overnight.

Bernanke says EU crisis is solvable...

In a closed door meeting with Senate Democrats Fed chief Bernanke says the EU crisis is solvable, it's just up to policymakers to take the necessary steps. The key, he believes is just getting past the politics. Addressing the U.S. economy, the Chairman says the Fed has done what it could do, it's on Congress now.

That's not good.  Those clowns do nothing productive.

Stocks reporting before the open tomorrow...

Schlumberger (SLB)
Verizon (VZ)
Haliburton (HAL)
Air Products (APD)
McDonald's (MCD)
Manpower (MAN)

Notable stocks reporting after the close today...

Tempur Pedic (TPX)
Acme Packet (APKT)
Sandisk (SNDK)
Athena Health (ATHN)
Capitol One (COF)
Microsoft (MSFT)
Chipotle (CMG)
Informatica (INFA)

Transports say economy not that bad...

Two top rail execs are saying the U.S. is in a "slow growth environment" but not a recession. "I don't see a double-dip," Union Pacific's (UNP) Jim Young says; with inventory levels "as low as they've ever been," any spurt in consumer demand would pose an opportunity. CSX's (CSX) Michael Ward says the economy even shows signs of life.

The transport sector is rallying 1.5% today.

Greece passes austerity measures...market rallies...

As expected, the Greek parliament passes the latest austerity measures - including wage cuts and higher taxes - paving the way for the country to receive the next tranche of bailout money. The vote was 154 to 144. One member of the ruling PASOKs voted against, and was immediately kicked out of the party.

As a result stocks have moved higher:

Dow +59
Nas +1
S&P +8

Yesterday there were riots in the streets over passing this...I don't think this positive reaction is going to hold.

Food prices rising...

Wholesale food prices are "on pace to post their strongest annual increase in more than three decades,” National Restaurant Association's Bruce Grindy writes. Food costs are already up 7.8% this year, and if the trend holds, they will have soared 26% in five years. So far, grocers have been passing along more of those increases to customers than restaurants.

I'm getting a little tired of this Euro thing...

Anyone else???

We need to get some sort of solution over there so we can move on.

EU Summit follow-up meeting next Wednesday...

Now, the news is that the EU summit will happen on Sunday, and that a follow-up EU summit, probably scheduled for next Wednesday, is in the works.  This weekend's gathering may not accomplish as much as hoped, reports the FT. "There will be no agreements (Sunday) ... this will now happen Wednesday at the earliest," says a German official.

Whatever, at least stocks and the euro are rallying a bit on this news.

At 1:15 pm:

Dow -28
Nas -20
S&P -1

Stocks slip on possible EU summit cancelation...

As news came out that the EU may cancel their summit planned for this weekend, stocks have started falling.

Dow -101
Nas -41
S&P -10

Looks like steel stocks are the only group moving higher.  Gold and Silver are breaking down, as they have been tracking the strength of the Euro.  When the Euro falls, so does gold and silver.  Not sure why, other than there were rumors that European banks were heavily invested in Gold and Silver.

Here's a look at the Gold and Silver ETF's:

Gadhafi killed...

Libyan dictator Moammar Gadhafi, the most wanted man in the world, has been killed, Libyan Prime Minister Mahmoud Jibril said today.

The flamboyant tyrant who terrorized his country and much of the world during his 42 years of despotic rule was reportedly cornered by insurgents in the town of Sirte, where Gadhafi had been born and a stronghold of his supporters.

"We have been waiting for this moment for a long time. Moammar Gadhafi has been killed," Jibril said at a news conference in Tripoli.

Stocks looking good on open...

Stocks are moving higher after taking a break yesterday.

Dow +55
Nas -2
S&P +6

Tech stocks are holding the averages back but are starting to strengthen in the last 15 minutes.

I've been reading alot of pessimistic views of the latest rally...which is exactly what we want.  Climb that Wall of Worry!!!

Wynn gets hit on earnings...

Wynn Resorts Ltd. (WYNN). The casino operator swung to a quarterly profit as revenue at its Wynn Macau unit soared 42 percent, but it won less money than usual in Las Vegas. Adjusting for one-time items, Wynn earned $1.05 per share in the third quarter. The company's quarterly net revenue rose 30 percent to $1.3 billion from a year earlier. 


Wynn is down 7 to 123 on the news.

eBay gives cautious guidance...

EBay Inc. (EBAY). The operator of the largest online marketplace reported profit that matched Wall Street estimates and gave a restrained outlook for the rest of the year because of economic uncertainty. EBay reported third-quarter net income of $490.5 million, or 37 cents a share and forecasts fourth-quarter profit of 55 cents to 58 cents a year.

eBay is selling off on the earnings...the stock is down 1.38 to 31.81

This looks like an opportunity to "Buy".  Remember, earlier in the week, the company was talking about how earnings from PayPal was expected to grow.

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.

Baidu, Inc. (NASDAQ: BIDU) Cut to Neutral at Goldman Sachs.

Changyou.com Limited (NASDAQ: CYOU) Raised to Buy at Goldman Sachs.

Core Laboratories N.V. (NYSE: CLB) Cut to Market Perform at FBR.

CSX Corporation (NYSE: CSX) Cut to Market Perform at Wells Fargo.

eBay Inc. (NASDAQ: EBAY) Maintained long-term outperform and near-term hold at Zacks; reiterated Outperform at Credit Suisse.

Herbalife (HLF: NYSE) Reiterated Buy at Canaccord Genuity.

Macy’s Inc. (NYSE: M) Started as Overweight at JPMorgan.

Monsanto Co. (NYSE: MON) Started as Market Perform at Wells Fargo.

PVH Corp. (NYSE: PVH) named value stock of the day at Zacks.

Polycom, Inc. (NASDAQ: PLCM) Cut to Neutral at Piper Jaffray; Cut to Market Perform at William Blair.

Regency Centers Corporation (NYSE: REG) Raised to Outperform at Credit Suisse.

Western Digital Corporation (NYSE: WDC) Cut to Underweight at JPMorgan.

Western Union (NYSE: WU) Raised to Outperform as Bull of the Day at Zacks.

Wynn Resorts Ltd. (NASDAQ: WYNN) Reiterated Outperform at Credit Suisse.

Youku.com Inc. (NYSE: YOKU) Raised to Conviction Buy List at Goldman Sachs

American Express beats but heads lower...

American Express Co. (AXP). The company posted higher-than-expected quarterly net earnings as cardholders spent more, but expenses grew faster than revenue. The company said third-quarter net income rose to $1.2 billion, or $1.03 per share and total revenue, net of interest expenses, rose 9 percent to $7.57 billion.


AXP is down 1.05 to 45.08 in premarket trading.

Alexion Pharmaceuticals beats and raises...

Alexion Pharmaceuticals Inc. (ALXN). The company posted a more than two-fold rise in net quarterly profit that also topped market estimates, helped by strong global sales of its genetic disorder drug, and raised its full-year view for the second time in less than a month. For the third quarter, the company reported a net income of $65.6 million, or 34 cents a share, compared with $27.9 million, or 15 cents a share, a year ago. The company now sees 2011 earnings of $1.25-$1.28 excluding items, up from earlier outlook of $1.15-$1.20.

ALXN is up 4.00 to 70.03 in premarket trading.

ALXN is Investor's Business Daily's number 1 rated stock.

Good morning...

Stocks on Wednesday wiped out most of the prior day's gains after a glum report on the U.S. regional economies triggered broad selling in the last two hours of trade. Volume, however, was mixed.

For what looks to be a confirmed rally now in its second week, the number of stocks breaking out to new highs is still disappointing. The new highs list still lacks beef.

I'll be pointing out stocks that break out...we would like to see that number increase in the coming weeks.

Stocks take a day off...

Well...no rally in the final 30 minutes this time.

Dow -72
Nas -53
S&P -15 to 1209

Volume was light for most of the day.  We have October Options expiration of Friday.  It is not uncommon to get some selling on the Wednesday before options expiration as traders sell this months positions and roll into next month's.

Banks, commodities and oils were the main drags on the market today.

Stocks weaken as the day wears on...

After holding up well this morning, stocks have turned red this afternoon.  Big reversals have occured in the banks and oils, dragging the rest of stocks with them.

At 3:30 pm:

Dow -88
Nas -51
S&P -15 to 1210

Gold and silver are selling off as well.

Noon update...

Stocks are mixed, but holding up well at lunchtime. 

Dow +26
Nas -15
S&P +1

Banks are starting to slide, Oils are mixed, commodities getting hit hard.

Losers:

Apple (AAPL) -16.83 to 405.39
Amazon (AMZN) -6.77 to 237.17
CF Industries (CF) -2.71 to 145.90
Cliffs Natural Resources (CLF) - 2.28 to 58.96

Gainers:

Intuitive Surgical (ISRG) +42.14 to 424.90
Sears (SHLD) +1.38 to 75.82
Whole Foods (WFM) +2.46 to 71.69
Ulta Cosmetics (ULTA) +2.00 to 70.82
Apollo Group (APOL) +4.35 to 47.68

Best Buy hurt by falling TV prices...

Prices of flat-screen TVs are in free-fall and represent a "significant risk" to Q3 gross margins at Best Buy (BBY), prompting Citigroup analyst Kate McShane to repeat her Sell rating on the shares. "Near-term pressures including a weak product cycle and increasingly price conscious consumers will continue to weigh on the stock in the near term.”

No kidding...these TVs are really getting cheap.

Citigroup and Smith Barney face fraud charges...

The SEC will vote today on a proposed agreement with Citigroup (C +2.2%) to pay more than $200M to settle civil fraud charges related to its sale of a mortgage bond deal, WSJ reports. The SEC has been investigating whether Citigroup misled investors in the deal, a CDO created from other CDOs backed by subprime mortgages.

Citigroup owns the Smith Barney Brokerage firm.

DC is wealthiest Metro area...

Federal employees whose compensation averages $126,000 and a heavy concentration of lawyers helps Washington edge out San Jose as the wealthiest U.S. metro area. The typical D.C.-area household earned $84,523 in 2010, vs. the national average $50,046. “There’s a gap that’s isolating Washington from the reality of the rest of the country... They just get more and more out of touch."

Yep - nothing like big government.

Whole Foods jumps on upgrade...

Whole Foods Market (WFM) jumps higher after catching an upgrade to Buy from Jefferies analyst Scott Mushkin on higher earnings expectations. He also raises his price target on shares to $90 from $68 - repping 24% upside potential.

WFM is one of my favorites.  It is currently up 3.54 to 72.77

Stocks looking good...

Considering that Apple is down 20 points, this market is holding up extremely well.

Dow +42
Nas -8 (primarily due to Apple)
S&P +4 to 1229


Banks are in full rally mode after Morgan Stanley earnings...Oils are improving as well.

Gold and Silver are down slightly, but seem to have a great deal of resilience in here.

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.


Alcatel-Lucent SA (NYSE: ALU) Cut to Underperform at Jefferies.

Anadarko Petroleum Corporation (NYSE: APC) Started as Overweight at Morgan Stanley.

Intel Corporation (NASDAQ: INTC) Raised target to $30 from $28 at Credit Suisse; Reiterated Hold at Canaccord.

Juniper Networks, Inc. (NYSE: JNPR) Cut to Market Perform at Wells Fargo.

LinkedIn Corporation (NYSE: LNKD) Started as Neutral at Lazard.

NRG Energy, Inc. (NYSE: NRG) named Bear of the Day at Zacks.

Nucor Corporation (NYSE: NUE) Started as Outperform at Wells Fargo.

Steel Dynamics Inc. (NASDAQ: STLD) Started as Market Perform at Wells Fargo.

Steven Madden, Ltd. (NASDAQ: SHOO) Started as Buy at Citigroup.

United States Steel Corporation (NYSE: X) Started as Market Perform at Wells Fargo.

Wal-Mart Stores, Inc. (NYSE: WMT) named Growth & Income stock of the day at Zacks.

Morgan Stanley beats estimates...

Morgan Stanley (MS). The bank swung to a $2.15 billion profit in the third quarter, helped by a large accounting gain, even as core revenue in trading, banking and wealth management operations fell. It earned $1.15 per common share, compared with a loss of 7 cents per share in the year-ago quarter.


MS had fallen to 11.58 three weeks ago on rumors that they had too much exposure to the falling Euro.  I guess that was a great opportunity to buy.  The stock is trading at around $17 premarket.

ISRG blows away estimates...

Intuitive Surgical Inc. (ISRG). The company reported a much higher-than-expected third-quarter profit on increased demand for its da Vinci surgical robots and a rise in procedures using the expensive systems. It posted a net profit of $122 million, or $3.05 per share and revenue for the quarter rose 30 percent to $447 million. July-September net income climbed to $46.3 million, or 41 cents a share, from $41 million, or 35 cents a share a year ago.


ISRG is up 25 to 408 premarket...

Intel raises forecast...

Intel Corp. (INTC). The company forecast quarterly revenue above Wall Street's expectations, defying concerns that tablets and a shaky economy are eating into demand for personal computers. Intel said revenue in the current quarter would be $14.7 billion, plus or minus $500 million. Intel said non-GAAP revenue in the third quarter was $14.3 billion.

Here is Intel's long term chart.  Note it is at a key resistance level...a break above 24 would be significant:

CSX meets expectations...

CSX Corp. (CSX). The railroad operator reported a higher quarterly profit in line with forecasts, and said volume was driven up by metals for auto-and energy sector products as well as forest products. Third-quarter net profit of $464 million, or 43 cents per share and revenue rose 11 percent to $2.96 billion.


You have to pay attention to what the transports say, as they give you good insight as to where our economic strengths are...

Cree hurt by increasing competition...

Cree Inc. (CREE). The LED maker reported a steep decline in first-quarter profit that missed Wall Street's expectations as stiff competition hurt pricing and kept inventories high and also forecast a tepid second quarter. Profit for the quarter fell by 78 percent to $12.8 million, or 11 cents per share, from $58 million, or 53 cents per share, in the year-ago period.

CREE is down 1.25 to 26.45 premarket.

Apple miss due to customers waiting for newest version...

Apple Inc. (AAPL). The company stunned Wall Street by reporting results that missed expectations for the first time in years, blaming rumors of the new iPhone for hurting demand in the September quarter. Net profit was $6.62 billion, or $7.05 a share.  Apparently, customers held off buying iPhones until the October launch of the latest version.

Stocks to watch today...

Several high profile earnings reports are out this morning, including Dow components Travelers (TRV) and and United Technologies (UTX) and Wall Street giant Morgan Stanley (MS).

We'll also get the latest numbers from Abbott Labs (ABT), Bank of New York Mellon (BK), BlackRock (BLK), PNC (PNC), and Freeport-McMoRan (FCX), among others.

American Express (AXP), eBay (EBAY), E*Trade (ETFC), Xilinx (XLNX), Wynn Resorts (WYNN), and Western Digital (WDC) are among the companies releasing quarterly numbers after today's closing bell.

Apple (AAPL) clearly leads our list of stocks to watch after posting its first quarterly earnings miss since 2004. Apple posted fiscal fourth quarter earnings of $7.05/share, 34 cents below estimates, with revenue also falling short.

Intel (INTC) shares jumped after hours, as the company posted record third quarter profits and gave an upbeat outlook for the fourth quarter.

Yahoo (YHOO) saw third quarter earnings fall 26%, but the stock rose after hours as Yahoo beat the Street's lowered expectations.

Also seeing bullish after-hours activity: Intuitive Surgical (ISRG), as its sales of robotic surgical equipment soared.

We'll also watch shares of JetBlue (JBLU), as chief financial officer Ed Barnes resigns.

Also on the watch list today: Dow component DuPont (DD) and Monsanto (MON), as DuPont sues Monsanto for alleged patent infringement regarding a process that helps genetically modified corn seeds germinate.

One stock we can't yet watch - but may be able to soon - is Groupon. Multiple reports say the daily deal company will launch its IPO roadshow next week, with an initial public offering likely to value the company at $11 - $12 billion.

Good Morning....

On Tuesday, stocks shook off modest early losses and closed with solid gains.  The S&P 500 added 2%, while the Nasdaq rose 1.6%.  Volume increased across the board from Monday's level, but remained below average.

The major indexes picked themselves off their session lows about 10 a.m. ET as an index of homebuilder sentiment topped expectations, though it still signaled pessimism.

Stocks added to their gains in the late afternoon on a report by the U.K.'s Guardian newspaper that France and Germany had agreed to boost the euro zone rescue fund.

However, a Dow Jones report after the market's close raised questions about the Guardian's story.

During the regular session, the main indexes tested key technical levels and passed, at least for now.

The S&P 500 briefly fell below 1200, but recovered.

Apple misses on earnings and revenues....

Apple reported third-quarter earnings of $7.05 a share, on revenue of $28.3 billion.

Analysts, on average, expected Apple to earn $7.22 a share on revenue of $29.5 billion.

Apple has not missed earnings forecasts since the second quarter of 2002, according to FactSet data.

The stock is down to 402 after hours, after closing at 422.24.

iPhone sales came in at 17.07 million, compared with forecasts of 20 million — maybe the most disappointing number.

More to come tomorrow…

Stocks nervous in last five minutes...

Looks like a little nervousness in the last five minutes as stocks settle off their highs.

Dow +179
Nas +42
S&P +24 to 1225

Pretty solid day ahead of Apple earnings which should affect the market overnight.

Stocks explode to the upside...

Stocks jumped in late afternoon trading on reports that France and Germany have agreed to boost a rescue fund as part of an effort to stem the European debt crisis. 

The Dow Jones industrial average is up 234 points, or 2 percent, to 11,631 at 3:50 p.m. Eastern. The Dow added more than 100 points within minutes after the report.

The Standard & Poor's 500 index is up 28 points, or 2.4 percent, to 1,229. The Nasdaq composite is up 48 points, or 1.8 percent, to 2,663.

Dow moves higher despite selloff in IBM...

IBM is currently down 8.37 to 178.30

IBM's is the highest weighted stock in the price-weighted Dow Jones Industrial Average.  It carries 12.39% of the weight, since it is the highest priced of the 30 stocks.

In spite of this the Dow is up 119 points right now...without IBM we would be up nearly 200 points.

Starbucks going Blonde...

Starbucks Corp (SBUX) is going "Blonde," expanding its coffee lineup with its lightest roast to date in a move aimed at wooing more customers and capturing a bigger share of the U.S. coffee market.

The world's biggest coffee company is known for its dark roasts, which have prompted some critics to say the chain's coffee tastes burned. The new, lighter roast unveiled on Tuesday is milder in body and acidity than Starbucks' traditional coffees and the company expects it to appeal to a broad audience.

Mass-market competitors McDonald's Corp (MCD) and Dunkin' Donuts (DNKN) offer milder brewed coffees and in recent years have added lattes, mochas and other sorts of "fancy" espresso drinks popularized by Starbucks.

"We think this is a big opportunity," Jeff Hansberry, president of channel development for Starbucks, told Reuters. 

According to Starbucks research, more than 40 percent of U.S. coffee drinkers -- or about 54 million consumers -- prefer a lighter roast coffee.

Additionally, nearly 71 percent of all packaged coffee sales in the grocery aisle are either light or medium roasted coffee.

Check out the Banks...

Here are some of the banks that are leading the market today:

Bank of America (BAC) +0.41 to 6.43
Morgan Stanley (MS) +0.61 to 15.85
JP Morgan (JPM) +1.34 to 32.37
Goldman Sachs (GS) +1.93 to 98.87
State Street Bank (STT) +2.20 to 36.07
Citigroup (C) +1.39 to 29.32

Stocks having a nice day...

After an early selloff, stocks have staged a nice comeback.  Banks are leading the way on the heels of the Bank of America eanings before the bell.

Dow +79
Nas +15
S&P +12 to 1213

Earnings due tomorrow morning...

Notables reporting before the bell tomorrow:

Morgan Stanley (MS) +0.63 to 15.88
American Airlines (AMR) +0.05 to 2.81
United Technologies (UTX) +1.78 to 73.91
Blackrock (BLK) +2.58 to 153.51
Abbott Labs (ABT) -0.06 to 51.97

Earnings after the bell today...

Companies reporting today and how they are trading ahead of those earnings:

Apple Inc. (AAPL) -2.14 to 417.88
Sonic Restaurants (SONC) +0.05 to 7.17
Intuitive Surgical (ISRG) -5.15 to 382.85
Cree Inc. (CREE) +0.33 to 26.94
Juniper Networks (JNPR) +0.62 to 21.02
CSX Corp. (CSX) +0.60 to 20.99

Are you ready for McTV???

Coming soon to a McDonald's (MCD +0.4%) near you: McTV replete with HD in-house programming from the McDonald's channel. The company aims to grab its captive audience waiting in line for their burger and fries with niche shows, news, features, and 8 minutes of advertising per hour. McTV will launch in California initially.

What's going on with Pizza???

Domino's Pizza (DPZ) tacks on a 2.3% gain after beating estimates with its Q3 report. Net income rose 33% year over year for the quarter, led by strong international sales. Revenue for stores open at least a year climbed 3% Y/Y in the U.S. and 8.1% globally.  Dominoes is hitting new highs.

Pizza Inn (PZZI) is hitting new highs as well.

S&P downgrades Italian banks...

S&P downgrades 24 out of 43 Italian banks it covers as conditions "continue to deteriorate. We do not believe that this difficult operating environment is transitory or that it will be easily reversed."

eBay ups Pay Pal expectations...

eBay Inc. (EBAY). CEO of the company, John Donahoe, increased a key forecast for the company's PayPal payments business during an Internet industry conference on Monday. Donahoe said total payment volume, or TPV, transmitted by mobile devices through PayPal's system will be more than $3.5 billion in 2011, during a discussion on stage at the Web 2.0 Summit in San Francisco.


We talked about this last week...PayPal is the money maker here...

Chesapeake downgraded at JP Morgan...

Chesapeake Energy (CHK -4.8%) is downgraded to Neutral from Overweight at JPMorgan, skeptical about CHK meeting its projected price of $12K-$16K/acre for a joint venture sale of about 30% of its Utica shale in Ohio. Over the longer term, caution comes from uncertainty about CHK’s ability to fund its spending.

11 am update....

Stocks are mixed but looking much better as the morning moves along. 

Dow +5
Nas +1
S&P +3 to 1204


Banks are currently the strongest group as it looks like traders were surprised by Bank of America's earnings.  Not sure those earnings were as strong as they made it look...so we could see some profit taking later today in the group.


Right now BAC is up 0.34 to 6.37

Crocs gets pounded...

Crocs Inc (CROX). The shoemaker lowered its outlook for the first time in three years as it faces softening sales at its stores, amid a weak economy in Europe and shaky consumer confidence in the United States. The company expects July-September earnings of 31-33 cents a share, down from its previous forecast of 40 cents a share. It also projected revenue of $273.0-$275.0 million, compared with its prior outlook of $280 million.


CROX is down 10.19 to 16.46

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.


Alcoa Inc. (NYSE: AA) Started as Buy at Stifel Nicolaus.

Baker Hughes Inc. (NYSE: BHI) Started as Buy at Stern Agee.

Broadcom Corporation (NASDAQ: BRCM) Started as Buy at Societe Generale.

CareFusion Corporation (NYSE: CFN) Started as Market Perform at BMO.

Charter Communications Inc. (NASDAQ: CHTR) Started as Outperform with $60 target at Credit Suisse.

Citigroup Inc. (NYSE: C) cut estimates and cut target to $45 from $50 at Credit Suisse’ Maintained Sell at Argus.

Fidelity National Financial (NYSE: FNF) named Value stock of the day at Zacks.

First Solar Inc. (NASDAQ: FSLR) Cut to Hold at S&P Equity Research (late-Monday call).

The Goldman Sachs Group Inc. (NYSE: GS) Cut to Underperform as Bear of the Day at Zacks.

Halliburton Company (NYSE: HAL) Started as Buy at Stern Agee; Reiterated Buy at Canaccord Genuity.

Lulelemon Athletica Inc. (NASDAQ: LULU) Started as Neutral at Macquarie.

Macy’s Inc. (NYSE: M) Started as Outperform at Macquarie.

Progressive Corp. (NYSE: PGR) Cut to Hold at Argus.

QUALCOMM Incorporated (NASDAQ: QCOM) Started as Hold at Societe Generale.

UnitedHealth Group, Inc. (NYSE: UNH) named Bull of the Day at Zacks.

Urban Outfitters, Inc. (NASDAQ: URBN) Started as Underperform at Macquarie; Started as Outperform at FBR.

VMware Inc. (NYSE: VMW) Cut to Hold at Jefferies.

Whirlpool Corporation (NYSE: WHR) Cut to Sell at Goldman Sachs.

VMware gets mixed reaction...

VMware Inc (VMW). The business software maker on Monday posted quarterly profit ahead of market estimates, helped by growth in the Asia Pacific market, and it forecast fourth-quarter revenue above analysts' expectations. VMware forecast fourth-quarter revenue of $1.03 billion to $1.06 billion. Net income for the third quarter more than doubled to $177.5 million, or 41 cents a share, from $84.6 million, or 20 cents a share, a year ago.

VMW is currently up 0.05 to 89.55

Last night, the stock was down 10 at one point.

IBM sells off on earnings...

International Business Machines Corp. (IBM). The company's quarterly results failed to impress investors used to a stellar showing from Big Blue, adding to concerns about lackluster corporate IT spending. On Monday, it raised its full-year diluted earnings forecast to at least $13.35 per share, from its prior estimate of at least $13.25. IBM reported a third-quarter profit, excluding items, of $3.28 per share, up 15 percent year over year and above expectations of $3.22.


IBM is currently down 8.65 to 177.95

EMC earnings well received...so far...

EMC Corp (EMC). The corporate storage equipment maker reported a 28 percent jump in third- quarter profit as corporations invested in new equipment and hardware to expand their data centers. Net income rose to $606 million, or 27 cents per share, from $473 million, or 22 cents, a year earlier.


EMC is currently up 0.73 to 23.41

Bank of America reports earnings...

Bank of America Corp. (BAC). The bank reported higher third-quarter profits due to an accounting gain and a pretax gain on asset sales. Net income applicable to common shareholders was $5.9 billion, or 56 cents a share, compared with a loss of $7.6 billion, or 77 cents per share, in the same period a year earlier, when the bank took a $10.4 billion accounting charge.


BAC is currently up 0.30 to 6.33

Earnings today...

Earnings season hits the accelerator pedal this morning, with financials particularly in focus.


Goldman Sachs (GS) and Bank of America (BAC) will both be out with quarterly numbers, and investors will also get a look at the latest results from Dow components Coca-Cola (KO) and Johnson & Johnson (JNJ) as well as Harley-Davidson (HOG), State Street (STT), and UnitedHealth (UNH).

The after-the-bell calendar is similarly crowded, with Apple (AAPL), Intel (INTC), and Yahoo(YHOO) the highest profile names on the schedule.

Good Morning....

Stocks are opening under a little pressure this morning.  Overnight, France's AAA credit rating is still intact, but Moody's has warned the country of a possible negative outlook.


The agency says France needs to show commitment to financial reforms, and if not, it's possible the rating could be downgraded within two years.

This is causing the Euro to drop and is setting off a chain reaction of selling in Gold and Silver.

Stocks get pounded in last hour...

More volatility.  That's really all you can say.  No real reason to sell off, but that's traders did.

Dow -246
Nas -52
S&P -23 to 1200

Only good thing to say was that the S&P held up at 1200.

Lots of earnings due overnight, so maybe we'll find a reason to go up tomorrow.

Walgreens and Express Scripts may have a breakthrough...

Walgreen (WAG +3.5%) says it has offered terms to Express Scripts (ESRX -0.7%) that would allow it to continue serving the Defense Department's 6M-member Tricare program, despite a broader contract dispute between the two companies. Although the two sides remain "miles apart" in reaching a deal, a quiet arrangement may hint at a future breakthrough.

Earnings due on Tuesday morning...

Here are a few notable stocks due to report earnings tomorrow before the open:

United Healthcare (UNH) -0.03 to 47.19
Goldman Sachs (GS) -0.48 to 96.21
Checkpoint Software (CHKP) -0.60 to 58.29
Coca-Cola (KO) -0.49 to 67.35
Johnson and Johnson (JNJ) -0.66 to 64.06
Bank of America (BAC) -0.12 to 6.08
EMC Corp. (EMC) -0.52 to 22.57
Harley Davidson (HOG) -0.58 to 37.29

Earnings after the bell today...

Here is how a few notable stocks are trading ahead of their earnings to be released after the close today:

IBM -4.07 ot 186.53
VMWare (VMW) -3.62 to 89.38
Lincare Holdings (LNCR) -0.67 to 21.58
Steel Dynamics (STLD) -0.65 to 10.77

1 pm Update...

Stocks are selling off in the wake a many analyst downgrades this morning. 

Dow -196
Nas -49
S&P -19 to 1205

Weakness in banks, commodities, technology and metals are leading the market lower.

The Volatility Index (VIX) is staring to spike again.  It is currently +4.07 to 32.31

Remember the Vix had spiked up to 46 during the last selloff.

Haliburton beats estimates...but stock sells off...

Halliburton Co. (HAL). The oilfield services company reported a higher-than-expected third-quarter profit, as more drillers tapped its expertise in extracting oil and gas from U.S. shale rock. Net profit climbed to $683 million, or 74 cents per share, from $544 million, or 60 cents per share, a year earlier.


HAL is currently down 2.66 to 34.80

Stocks open lower...

Stocks are having a weak open here as it appears to be some disappointment that no positive news came out of Europe over the weekend.

Dow -86
Nas -17
S&P -9 to 1214

Main pockets of weakness are in Banks, Agriculture and Technology.  Gold is flat, Silver is down for the first time in several sessions.

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.

American Capital Agency (NASDAQ: AGNC) Cut to Market Perform at JMP Securities.

Apple Inc. (NASDAQ: AAPL) Reiterated Outperform with $500 target at Credit Suisse.

Archer Daniels Midland Company (NYSE: ADM) Started as Hold at Argus.

Cal-Maine Foods, Inc. (NASDAQ: CALM) named value stock of the day at Zacks.

Caterpillar Inc. (NYSE: CAT) Raised to Buy at Goldman Sachs.

Dollar Tree, Inc. (NASDAQ: DLTR) Cut to Equal-Weight at Barclays.

Family Dollar Stores, Inc. (NYSE: FDO) Raised to Overweight at Barclays.

Hewlett-Packard Co. (NYSE: HPQ) Reiterated Buy with $40 target at Argus.

Kirkland’s, Inc. (NASDAQ: KIRK) Cut to Underperform as bear of the day at Zacks.

Lincoln National Corporation (NYSE: LNC) Added to the U.S. 1 List at BofA/ML.

Monsanto Company (NYSE: MON) Reiterated Outperform as Bull of the Day at Zacks.

Navistar International Corp. (NYSE: NAV) Cut to Sell at Goldman Sachs.

Tiffany & Co. (NYSE: TIF) Started as Buy at Stern Agee.

Veeco Instruments Inc. (NASDAQ: VECO) Cut to Sell at Canaccord Genuity

Anadarko settles with BP...

In the oil industry, Anadarko Petroleum (APC) will pay BP (BP) $4 billion in a settlement over Gulf Oil spill cleanup costs. That's seen as less than half the amount it might have had to pay had the case gone to court. As part of the agreement, Anadarko will no longer pursue allegations of gross negligence against BP.

Kinder Morgan Buys El Paso...

Kinder Morgan Inc. (KMI). The company struck a $21 billion deal to buy rival El Paso Corp (EP), combining the two largest natural gas pipeline operators in North America in a huge bet on the fast-growing market for that fuel. The cash and stock deal announced on Sunday values El Paso at a 37 percent premium to its Friday market value.

IBD's Top 10 Stocks...

Here are Investor's Business Daily's Top 10 Stocks...

1. Alexion Pharmaceuticals (ALXN)
2. Lulumon Athletica (LULU)
3. Ulta Salon & Cosmetics (ULTA)
4. Apple Inc. (AAPL)
5. Herbalife (HLF)
6. First Cash Financial (FCFS)
7. Perrigo (PRGO)
8. Mastercard (MA)
9. Yamana Gold (AUG)
10. Dollar Tree (DLTR)

Stocks to watch...

El Paso Corporation (EP) leads our list of stocks to watch this morning, as it agrees to be bought by rival Kinder Morgan (KMI) in a $21 billion cash deal that combines the two largest natural gas pipeline operators in North America.

Sprint Nextel (S) could also be a stock to watch today, as the company says it set a single-day device sales record Friday as the iPhone 4S went on sale at its stores.

Research In Motion (RIMM) is offering BlackBerry users free premium apps, normally costing more than $100, to appease customers upset by last week's service disruptions.

Rio Tinto (RIO) is putting an estimated $8 billion in aluminum assets up for sale, signaling a retreat from that business just four years after buying Alcan for $38 billion.

State Street (STT) could see some upside action today as billionaire investor Nelson Peltz's Trian Group calls for changes, including a spinoff of the investment management business.

And Eastman Kodak (EK) is licensing thousands of its patents to Imax in a deal that will supply the troubled company with millions of dollars.

Earnings releases take center stage...

This week marks the start of the heaviest part of earnings season, with Citigroup (C), Wells Fargo (WFC), Hasbro (HAS), Halliburton (HAL), and Gannett (GCI) highlighting this morning's releases.

Dow component IBM (IBM) and Stanley Black & Decker (SWK) are among the companies set to release after today's closing bell.

Good Morning...

U.S. stocks may find last week's performance difficult to top: the S&P 500 registered its best weekly percentage gain since July 2009, the Nasdaq since March 2009.

The gains put the major averages on track for their biggest monthly gains since September 2010, and the Dow and Nasdaq are now positive for 2011 (the S&P 500, however, is still lower by 2.6% for the year to date).

Stocks close out nice week...

Stocks close at their highs for the week.  A strong afternoon move in the Oils accompanied the earlier push in Tech stocks.  It seems that sellers have all turned the other way and are now long.  Obviously mutual funds are being sucked in as they do not want to be seen as the only fund that did not make money this year. 

Dow +166 to 11644
Nas +47 to 2667
S&P +20 to 1224

Have a nice weekend everybody.  Hopefully we can continue this rally next week.

At 3:30 pm...

Stocks are holding on to gains...as it looks like funds are putting money to work.  Even banks have started to join the party.

Dow +121
Nas +37
S&P +16 to 1219

We continue to sit just below the 1220 mark on the S&P.

Today's Upgrades and Downgrades...

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


Baker Hughes Inc. (NYSE: BHI) Cut to Market Perform at BMO.

Beam Inc. (NYSE: BEAM) Started as Hold at Argus.

Boeing Co. (NYSE: BA) Cut to Perform at Oppenheimer.

Cisco Systems Inc. (NASDAQ: CSCO) Started as Buy at IS Group.

Ecolab Inc. (NYSE: ECL) Cut to Neutral at Citigroup.

FXCM Inc. (NYSE: FXCM) Cut to Sell at Citigroup.

Gap Inc. (NYSE: GPS) Cut to Market Perform at Wells Fargo.

General Electric Co. (NYSE: GE) Started as Overweight at Barclays.

Hewlett-Packard Co. (NYSE: HPQ) Started as Buy at ISI Group.

International Business Machines Corporation (NYSE: IBM) Started as Outperform at Macquarie.

Interactive Brokers Group (NASDAQ: IBKR) Raised to Outperform as Bull of the Day at Zacks.

ITT Corporation (NYSE: ITT) Started as Equal-Weight at Barclays.

Kinder Morgan Energy Partners (NYSE: KMP) Started as Neutral at JPMorgan.

Plains All American Pipeline (NYSE: PAA) Started as Overweight at JPMorgan.

TAL International Group, Inc. (NYSE: TAL) named Value stock of the day at Zacks.

Teradyne, Inc. (NYSE: TER) lowered target to $12 as Bear of the Day at Zacks.

Xbox picking up market share...

Microsoft's (MSFT) Xbox 360 accounted for 42% of U.S. retail console sales in September, according to NPD, as the runaway success of its Kinect add-on bolsters demand. However, industry-wide hardware sales fell 9% Y/Y, as the major consoles show their age. Software sales rose 3%, fueled by strong demand for Electronic Arts' (ERTS) Madden NFL 12.

Noon Update....

Stocks are still higher but down off earlier levels. 

Dow +77
Nas +21
S&P +10 to 1214

Apple and Google still leading the way for Technology.  Banks are now lower and Gold and Silver are now flat.

Ford F-150 selling briskly...

Ford (F) says its Ford F-150 pickups equipped with six-cylinder EcoBoost engines are selling briskly, and will account for 45% of retail sales of the model moving forward. The EcoBoost engine falls in line with regulators' push for fuel efficiency, and offers consumers 18 mpg vs. 14-17 mpg on 8-cylinder models.

Tim Geitner says IMF can help Europe...

In an interview on CNBC this morning, Timothy Geithner says the IMF has "very substantial" available financial resources to fund a TARP-like device to help solve Europe's problems, while declining to give a specific number on what would be required. Economic data has been more encouraging recently, he adds, and concerns about a much weaker growth outcome have receded a bit.

Nice open...

Surprisingly positive earnings from Google is giving the entire market a lift.

Dow +118
Nas +36
S&P +16 to 1220

1220 on the S&P is that key level that technicians are paying attention to, looking for a breakout in stocks.

Leading the market:

Google +36.24 to 595.40
Apple +8.59 to 417.26
Amazon +5.35 to 241.68
IBM +1.32 to 188.24
Mastercard +7.71 to 343.70

Gold and Silver have been drifting higher even though the market has been moving higher.  This seems to be a disconnect to why Gold and Silver were being bought in the first place...as a defensive move.  Let's see if that relationship changes in the next few days.

iPhone 4S goes on sale today...

Apple Inc. (AAPL). The company’s latest iPhone went on sale in stores across the globe, with fans snapping up the final gadget unveiled during Steve Jobs' lifetime, many buying the phone as a tribute to the former Apple boss. Separately, a U.S. judge said that Samsung Electronic's Galaxy tablets infringe Apple Inc's iPad patents, but added that Apple has a problem establishing the validity of its patents in the latest courtroom face-off between the technology giants.

Good Morning...

Though Wall Street's major averages are coming off a mixed session Thursday, they remain on pace for their best weekly gains in four weeks, and the fourth biggest weekly gains of 2011.  The Nasdaq Composite is currently riding a four-day winning streak and is up for seven of the past eight sessions.


We'll get the University of Michigan's preliminary consumer sentiment reading for October at 9:55am ET, expected to edge higher to 60.0 from September's final number of 59.4.

Google (GOOG) leads our list of stocks to watch this morning, after blowing past expectations with its latest quarterly earnings.

Google is up more than 8% premarket.

Apple (AAPL) will be high on the watch list once again today, as the iPhone 4S makes its debut in stores.

Financials could see some downward action today, as Fitch downgrades UBS (UBS) and puts others such as Morgan Stanley (MS) and Goldman Sachs (GS) on review.

Another Mixed Day for Stocks....

The early earnings posted by JP Morgan held the Dow and S&P back today.  Also, weakness in Europe overnight caused a selloff in Gold and Silver.  However, Technology posted decent gains.

Dow -40
Nas +15
S&P -3 to 1203

Leading the market higher:

Apple +6.24 to 408.43
Google +1049 to 558.99
Visa +1.43 to 92.60
Mastercard +8.00 to 335.99
Netflix +3.39 to 117.01
Walter Energy +8.45 to 75.22

JP Morgan closed down 1.60 to 31.60