McDonald's Corp. (MCD) reported January global same-store sales rose 5.7%, as U.S. sales rebounded from December weakness and growth overseas was boosted by the beaten-down dollar.
MCD is up 1.80 to $56.26 this morning....
I could swear they just said last week that traffic was down...so which is it??? In fact the market sold off hard in reaction to that news.
Friday, February 8, 2008
Morgan Stanley Does Not Like Sears...
A continuing decline in sales and tight profit margins might hurt Sears' (SHLD) turnaround plans. "Until I can see why cash is low, I see no reason to own the stock," Morgan Stanley's Gregory Melich says.
Have you been to a K-Mart or Sears store lately??? No one there.
Have you been to a K-Mart or Sears store lately??? No one there.
Dell Dumps AMD...
Dell (DELL) has stopped selling AMD-powered (AMD) machines through its online store, including the Latitude D531, Vostro 1000 or OptiPlex 740.
This is good news for Intel (INTC).
This is good news for Intel (INTC).
Smartphones....
Research in Motion (RIMM) and Apple (AAPL) may be the primary beneficiaries of a massive consumer shift from basic cellphones to smart phones.
Go check out a cell phone store and ask them what the trend is...
Go check out a cell phone store and ask them what the trend is...
Another Take on Ethanol....
Ethanol may boost global warming. Researchers say widespread ethanol use could double any greenhouse gas emissions produced by the gasoline it replaces. Farmers growing biofuel plants destroy forests and grass, raising the amount of carbon in the atmosphere. Ethanol producers' Renewable Fuels Association called the research "simplistic."
Verizon Announces Stock Buyback..
Verizon (VZ) yesterday announced that its board has authorized the repurchase of up to 100 million shares. The authorization expires Feb. 28, 2011. Sounds like a lot of stock - 100 million shares! - but it would be just 3.4% of the company’s 2.9 billion shares outstanding, or about 1% of the float per year over the authorized period.
Verizon's stock has fallen from the mid 40's to $36.95 over the past three weeks. Their dividend currently pays 4.655%. Not bad for a quality name.
Verizon's stock has fallen from the mid 40's to $36.95 over the past three weeks. Their dividend currently pays 4.655%. Not bad for a quality name.
Dismal January for Retail, But Stocks Rally...
Retailers posted their worst monthly sales in five years; even gift-card redemptions were soft. Wal-Mart (WMT) lead the way with 0.5% comps growth vs. 2% estimates; more than half of all retailers missed expectations.
Despite the bad news, Retail stocks had a great day. That is a key group to keep an eye on over the next few months. Retailers will typically be one of the first groups to show a recovery in the economy as it pertains to the average citizens.
Despite the bad news, Retail stocks had a great day. That is a key group to keep an eye on over the next few months. Retailers will typically be one of the first groups to show a recovery in the economy as it pertains to the average citizens.
Stimulus Bill Wins Vote...
Congress approved a $168B economic stimulus bill, meaning more than 130 million households will begin receiving $600-1,200 rebate checks. The measure passed after Democrats dropped demands for billions in extra spending and tax breaks.
President Bush called the legislation "an example of bipartisan cooperation at a time when the American people most expect it."
President Bush called the legislation "an example of bipartisan cooperation at a time when the American people most expect it."
Amazon Ups Stock Repurchase Plan..
Amazon.com, Inc. (AMZN) announced today that its Board of Directors has authorized the Company to repurchase up to $1 billion of the Company's common stock within the next 24 months.
The program allows the Company to opportunistically repurchase its shares when it believes that doing so would enhance long-term shareholder value. This stock repurchase authorization replaces an April 2007 $500 million stock repurchase authorization.
The stock is climbing 2.50 pts to $73.58 in the premarket.
The program allows the Company to opportunistically repurchase its shares when it believes that doing so would enhance long-term shareholder value. This stock repurchase authorization replaces an April 2007 $500 million stock repurchase authorization.
The stock is climbing 2.50 pts to $73.58 in the premarket.
Earnings Due Today....
• American Electric Power (AEP). Expected to report Q1 earnings of $0.73 cents a share.
• Apartment Investment and Management (AIV). Expected to post Q4 loss of $0.27 per share.
• Beckman Coulter (BEC). Expected to report Q4 earnings of $1.03 a share.
• Weyerhaeuser Co. (WY). Expected to report Q4 earnings of $0.35 a share.
• Apartment Investment and Management (AIV). Expected to post Q4 loss of $0.27 per share.
• Beckman Coulter (BEC). Expected to report Q4 earnings of $1.03 a share.
• Weyerhaeuser Co. (WY). Expected to report Q4 earnings of $0.35 a share.
Hitachi to Introduce Super Thin TV's in 2010...
Hitachi Ltd. (HIT). The Japanese electronics giant said today it will introduce a 10-millimeter (mm) thin plasma display panel TV in 2010 in a bid to boost the competitiveness of its flat TV business operations. The thickness is less than a third of the 35mm-thin PDP TVs the manufacturer plans to launch next year. Capitalizing on these new "super-thin" models, Hitachi is targeting to raise its share of the world's PDP TV market to 10% in the fiscal year to March 2011, from an estimated 6 percent in the year to March 2009, it said.
Hitachi will also introduce a 15mm-thin liquid crystal display (LCD) panel TV by 2012, slimmer than the 19-mm model it plans to launch next year. It will also launch a 3mm-thin organic light-emitting diode (OLED) display TV by 2012, the company said.
Hitachi will also introduce a 15mm-thin liquid crystal display (LCD) panel TV by 2012, slimmer than the 19-mm model it plans to launch next year. It will also launch a 3mm-thin organic light-emitting diode (OLED) display TV by 2012, the company said.
Options Going Crazy in CTSH...
Cognizant Technology Solutions Corp. (CTSH). The Teaneck, N.J.-based IT services provider late Thursday said fourth-quarter net income rose to $96.3 million, or 32 cents a share, from $69.5 million, or 23 cents a share, in the same period last year. On an adjusted basis, earnings were 36 cents a share, beating the mean estimate of analysts polled by Thomson Financial for 31 cents a share.
Fourth-quarter revenue increased 41% to $600 million from $424.4 million in last year's comparable period. The company provided guidance for first-quarter adjusted earnings of 36 cents a share and sales of at least $640 million.
The stock is up 3.50 to $31 premarket.
Fourth-quarter revenue increased 41% to $600 million from $424.4 million in last year's comparable period. The company provided guidance for first-quarter adjusted earnings of 36 cents a share and sales of at least $640 million.
The stock is up 3.50 to $31 premarket.
Guitar Hero Propels Earnings for Activision..
After yesterday's closing bell, Activision Inc. (ATVI). late Thursday reported third-quarter adjusted earnings rose to $284.9 million, or 90 cents a share, from $147.5 million, or 48 cents a share, in the same period last year. Revenue for the period ended Dec. 31 jumped 80% to $1.48 billion from $824.3 million in last year's comparable period.
For fiscal 2008, the Santa Monica, Calif.-based interactive entertainment software products company expects adjusted earnings of $1.07 a share on sales of $2.65 billion. For the fourth quarter, the company expects adjusted earnings of 4 cents a share on sales of $350 million.
Activision is the maker of the popular Guitar Hero video game. Obviously a big hit for Xmas.
For fiscal 2008, the Santa Monica, Calif.-based interactive entertainment software products company expects adjusted earnings of $1.07 a share on sales of $2.65 billion. For the fourth quarter, the company expects adjusted earnings of 4 cents a share on sales of $350 million.
Activision is the maker of the popular Guitar Hero video game. Obviously a big hit for Xmas.
Thursday, February 7, 2008
Daily Summary....
U.S. Markets
Dow +46.90 (+0.38%)
Nasdaq +14.28 (+0.63%)
S&P 500 +10.46 (+0.79%)
News That Moved the Market:
Stocks Finish Higher Despite Lousy Retail Sales. Markets were able to end the day with gains for the first time this week, but volatility was still prevalent in today's trading. Selling pressure was strong early in the session when chain stores released January's sales results. With a few exceptions, the results were grim. In all, sales grew 0.5% from last year, with notable weakness in luxury and department store sales. Wal-Mart (WMT, +2.1%) reported a 0.5% increase in sales, well below the 2.0% jump analysts had anticipated. Target (TGT, +6.1%) saw a 1.1% decrease in same-store sales, while Nordstrom (JWN, +3.7%) said sales fell 6.6% at stores open more than a year. Despite the negativity, traders bought retailers perhaps sensing a bottom or figuring that earnings will not be affected by the poor start to the year.
Senate Passes Stimulus Plan. The U.S. Senate passed a $151 billion economic stimulus plan similar to the one the House passed last week. The bill will likely now get to the President very quickly to sign.
Pending Home Sales Decline. Homebuilders finished higher, despite lower than expected pending home sales data. The National Association of Realtors announced December pending home sales fell 1.5%, more than the 1.0% decrease expected, but an improvement over November's figures.
Pepsi Jumps On 2008 Outlook. Pepsi (PEP, +5.5%) traded higher after the company put out a solid forecast for the year in the face of higher commodity prices and economic weakness. The company reported a 31% decrease in profits due to a large tax benefit from last year. Pepsi sees earnings increasing about 10% in 2008.
Tomorrow Notable Earnings:
Weyerhaeuser(WY) Before Open
Economic Events:
10:00 AM: Wholesale Inventories
Dow +46.90 (+0.38%)
Nasdaq +14.28 (+0.63%)
S&P 500 +10.46 (+0.79%)
News That Moved the Market:
Stocks Finish Higher Despite Lousy Retail Sales. Markets were able to end the day with gains for the first time this week, but volatility was still prevalent in today's trading. Selling pressure was strong early in the session when chain stores released January's sales results. With a few exceptions, the results were grim. In all, sales grew 0.5% from last year, with notable weakness in luxury and department store sales. Wal-Mart (WMT, +2.1%) reported a 0.5% increase in sales, well below the 2.0% jump analysts had anticipated. Target (TGT, +6.1%) saw a 1.1% decrease in same-store sales, while Nordstrom (JWN, +3.7%) said sales fell 6.6% at stores open more than a year. Despite the negativity, traders bought retailers perhaps sensing a bottom or figuring that earnings will not be affected by the poor start to the year.
Senate Passes Stimulus Plan. The U.S. Senate passed a $151 billion economic stimulus plan similar to the one the House passed last week. The bill will likely now get to the President very quickly to sign.
Pending Home Sales Decline. Homebuilders finished higher, despite lower than expected pending home sales data. The National Association of Realtors announced December pending home sales fell 1.5%, more than the 1.0% decrease expected, but an improvement over November's figures.
Pepsi Jumps On 2008 Outlook. Pepsi (PEP, +5.5%) traded higher after the company put out a solid forecast for the year in the face of higher commodity prices and economic weakness. The company reported a 31% decrease in profits due to a large tax benefit from last year. Pepsi sees earnings increasing about 10% in 2008.
Tomorrow Notable Earnings:
Weyerhaeuser(WY) Before Open
Economic Events:
10:00 AM: Wholesale Inventories
Circuit City to Open Smaller Stores...
Circuit City's turnaround plans. Circuit City (CC) will open 50-60 smaller stores in 2008 called "City" with high-level staff that will mimic Apple Stores; says it doesn't think selling itself is in its best interest; and more than doubled its credit line to $1.3B.
Apple Cuts Component Orders....
A researcher says Apple (AAPL) has reduced supplier orders for its iPhones, iPods and MacBooks for the second time in two months, amid weak Q4 sell-through.
Suppliers Broadcom (BRCM) and Marvell (MRVL) could feel the effects.
Suppliers Broadcom (BRCM) and Marvell (MRVL) could feel the effects.
Midday Update....
Dow + 12
S&P +5
Nasdaq +5
After selling off on the open the market has strengthened. There is a noticeable change in Market Breadth this Morning.
On the NYSE:
Advancing Issues 1733
Declining Issues 1283
Advancing Volume 444 Million shares
Declining Volume 305 Million shares
Today is setting up an important inflection point. We are severely oversold and need to hold up here. How we close is critical.
S&P +5
Nasdaq +5
After selling off on the open the market has strengthened. There is a noticeable change in Market Breadth this Morning.
On the NYSE:
Advancing Issues 1733
Declining Issues 1283
Advancing Volume 444 Million shares
Declining Volume 305 Million shares
Today is setting up an important inflection point. We are severely oversold and need to hold up here. How we close is critical.
Yahoo Steps Up Talks With Google...
Sources say Yahoo's (YHOO) talks with Google (GOOG) have intensified as the company looks at alternatives to Microsoft's (MSFT) $44.6B offer.
Breakdown Alert: Chipotle (CMG)
Chipotle (CMG) down 4.87 to $103.73
Chipotle has clearly broken down thru support it had at $110. Pull up a daily chart and you'll see what I mean. Next support levels: $98 and then $88.
I just ate there yesterday...same long line as always...so I would say this is purely market-related tied to recession fears..
Chipotle has clearly broken down thru support it had at $110. Pull up a daily chart and you'll see what I mean. Next support levels: $98 and then $88.
I just ate there yesterday...same long line as always...so I would say this is purely market-related tied to recession fears..
Notable Mover: Emcore Corp.
Emcore (EMKR) up 1.47 to $13.50
Emcore is an interesting looking stock. The stock has been steadily climbing since June of last year. Though volatility has certainly picked up, this looks like it may be a solid new name to keep an eye on....which we will do.
Emcore Corporation's (EMKR) principal activity is a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets.
Emcore is an interesting looking stock. The stock has been steadily climbing since June of last year. Though volatility has certainly picked up, this looks like it may be a solid new name to keep an eye on....which we will do.
Emcore Corporation's (EMKR) principal activity is a leading provider of compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets.
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