- Initial Jobless Claims fell to 330K last week versus estimates of 330K and 340K the prior week.
- Continuing Claims fell to 2664K versus estimates of 2651K and 2686K prior.
- Business Inventories for February rose .5% versus estimates of a .5% increase and a .9% gain in January.
Thursday, April 14, 2005
Morning Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on BSX and Underperform on UIS.
Smith Barney:
- Sees modest EPS upside at TYC, EMR, ROK and CBE.
- Reiterated Buy on NMG/A and JCP.
- Reiterated Buy on LPX, target $33.
- Reiterated Buy on LRCX, target $38.
- Said to Buy Semi Equipment stocks aggressively on pullback.
- Reiterated Buy on ROP, target $79.
- Reiterated Sell on GM, target $24.
- Reiterated Buy on BIIB, target $42.
Merrill Lynch:
- Raised RHI to Buy, target $32.
- Raised GDW to Buy, target $73.
- Raised CFC to Buy, target $43.
- Cut DRL to Sell.
Lehman Brothers:
- Raised STJ to Overweight, target $43.
- Rated SAFC, CB, ALL Overweight and MMC, AOC Underweight.
Oppenheimer:
- Raised BXG to Buy, target $17.
- Rated VLI Buy.
- Rated EPD Buy.
- Rated MMP Buy.
JP Morgan:
- Reiterated Overweight on SBL, NVTL, PTEN.
- Cut BBY to Underweight.
CSFB:
- Raised QCOM to Outperform, target $45.
Bear Stearns:
- Rated KERX Outperform, target $18.
UBS:
- Cut CHIR to Reduce, target $32.
- Cut NWAC to Reduce.
Prudential:
- Raised AMD to Overweight, target $25.
- Rated VFC Overweight.
CIBC:
- Rated OSTK Sector Underperform.
- Rated BIVN Sector Outperform, target $12.
- Raised MNT to Sector Outperform, target $43.
- Reiterated Outperform on BSX and Underperform on UIS.
Smith Barney:
- Sees modest EPS upside at TYC, EMR, ROK and CBE.
- Reiterated Buy on NMG/A and JCP.
- Reiterated Buy on LPX, target $33.
- Reiterated Buy on LRCX, target $38.
- Said to Buy Semi Equipment stocks aggressively on pullback.
- Reiterated Buy on ROP, target $79.
- Reiterated Sell on GM, target $24.
- Reiterated Buy on BIIB, target $42.
Merrill Lynch:
- Raised RHI to Buy, target $32.
- Raised GDW to Buy, target $73.
- Raised CFC to Buy, target $43.
- Cut DRL to Sell.
Lehman Brothers:
- Raised STJ to Overweight, target $43.
- Rated SAFC, CB, ALL Overweight and MMC, AOC Underweight.
Oppenheimer:
- Raised BXG to Buy, target $17.
- Rated VLI Buy.
- Rated EPD Buy.
- Rated MMP Buy.
JP Morgan:
- Reiterated Overweight on SBL, NVTL, PTEN.
- Cut BBY to Underweight.
CSFB:
- Raised QCOM to Outperform, target $45.
Bear Stearns:
- Rated KERX Outperform, target $18.
UBS:
- Cut CHIR to Reduce, target $32.
- Cut NWAC to Reduce.
Prudential:
- Raised AMD to Overweight, target $25.
- Rated VFC Overweight.
CIBC:
- Rated OSTK Sector Underperform.
- Rated BIVN Sector Outperform, target $12.
- Raised MNT to Sector Outperform, target $43.
Thursday Watch
Late-Night Headlines
Bloomberg:
- The US dollar is rising against the yen and euro after the International Monetary Fund said the US economy will outpace the euro-zone and Japan this year and next.
Wall Street Journal:
- General Motors was asked to provide the SEC with documents related to transactions with Delphi Corp.
Financial Times:
- Newspaper editors should "grasp" the "fast-developing reality" of the effect of growing Internet use on the print industry, citing News Corp. Chairman Rupert Murdoch.
China Daily:
- China aims to triple trade with Arab states in the next five years.
Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on GE and DHR.
Night Trading
Asian Indices are -1.25% to -.25% on average.
S&P 500 indicated +.01%.
NASDAQ 100 indicated +.03%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Analyst Actions
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/EPS Estimate
SCH/.12
CREE/.25
DRL/.81
DJ/.10
ETN/1.23
EMMS/-.02
FDC/.50
FITB/.73
GTK/.33
JBHT/.51
LSTR/.27
PEP/.50
PGR/1.89
RMBS/.05
LUV/.05
SUNW/.00
UNH/1.13
Splits
None of note
Economic Releases
8:30 EST
- Initial Jobless Claims for last week are estimated to fall to 330K versus 334K the prior week.
- Continuing Claims are estimated to fall to 2651K versus 2688K prior.
- Business Inventories for February are estimated to rise .5% versus a .9% increase in January.
Bloomberg:
- The US dollar is rising against the yen and euro after the International Monetary Fund said the US economy will outpace the euro-zone and Japan this year and next.
Wall Street Journal:
- General Motors was asked to provide the SEC with documents related to transactions with Delphi Corp.
Financial Times:
- Newspaper editors should "grasp" the "fast-developing reality" of the effect of growing Internet use on the print industry, citing News Corp. Chairman Rupert Murdoch.
China Daily:
- China aims to triple trade with Arab states in the next five years.
Late Buy/Sell Recommendations
Goldman Sachs:
- Reiterated Outperform on GE and DHR.
Night Trading
Asian Indices are -1.25% to -.25% on average.
S&P 500 indicated +.01%.
NASDAQ 100 indicated +.03%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Analyst Actions
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/EPS Estimate
SCH/.12
CREE/.25
DRL/.81
DJ/.10
ETN/1.23
EMMS/-.02
FDC/.50
FITB/.73
GTK/.33
JBHT/.51
LSTR/.27
PEP/.50
PGR/1.89
RMBS/.05
LUV/.05
SUNW/.00
UNH/1.13
Splits
None of note
Economic Releases
8:30 EST
- Initial Jobless Claims for last week are estimated to fall to 330K versus 334K the prior week.
- Continuing Claims are estimated to fall to 2651K versus 2688K prior.
- Business Inventories for February are estimated to rise .5% versus a .9% increase in January.
BOTTOM LINE: Asian indices are lower as exporters in the region decline on fears over slowing demand. I expect US equities to open modestly higher on a bounce from today's sell-off, however stocks may weaken later in the day on continuing worries over slowing growth. The Portfolio is 25% net long heading into tomorrow.
Wednesday, April 13, 2005
Wednesday Close
Indices
S&P 500 1,173.79 -1.18%
DJIA 10,403.93 -.99%
NASDAQ 1,974.37 -1.55%
Russell 2000 602.54 -1.71%
DJ Wilshire 5000 11,553.90 -1.21%
S&P Barra Growth 566.94 -1.04%
S&P Barra Value 602.49 -1.31%
Morgan Stanley Consumer 585.52 -.17%
Morgan Stanley Cyclical 729.50 -1.86%
Morgan Stanley Technology 444.88 -1.74%
Transports 3,548.34 -2.68%
Utilities 367.26 -.70%
Put/Call .94 -20.34%
NYSE Arms 1.65 +71.79%
Volatility(VIX) 13.31 +17.79%
ISE Sentiment 175.00 +11.46%
US Dollar 84.40 -.05%
CRB 300.83 -.59%
Futures Spot Prices
Crude Oil 50.34 +.24%
Unleaded Gasoline 148.15 -.19%
Natural Gas 6.98 +.04%
Heating Oil 144.80 +.42%
Gold 430.90 -.02%
Base Metals 125.38 -3.26%
Copper 145.30 -.45%
10-year US Treasury Yield 4.36% +.19%
Leading Sectors
Drugs +1.37%
Hospitals +.22%
Tobacco +.18%
Lagging Sectors
Energy -2.46%
Semis -2.71%
Steel -3.38%
After-hours Movers
AMD +3.2% after missing 1Q estimates and saying it will spin off its memory-chip unit in an IPO that’s worth as much as $600M.
LRCX +3.5% after beating 3Q estimates.
MNT +10.4% after a government panel recommend that US regulators approve Mentor’s silicone breast implants for sale, after the group yesterday voted to reject Inamed’s similar device.
IFIN -3.13% after missing 1Q estimates.
PLAY -4.4% on AAPL report.
SYNA -4.59% on AAPL report.
IMDC -5.05% on MNT news.
MOGN -6.83% after missing 1Q estimates.
Evening Review
Detailed Market Summary
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
Futures Recap
S&P 500 Gallery View
Timely Economic Charts
PM Market Call
Real-time/After-hours Stock Quote
In Play
Afternoon Recommendations
Goldman Sachs:
- Rated ARO Outperform, target $41.
Afternoon/Evening Headlines
Bloomberg:
- Verdant Power LLC, a closely held developer of hydroelectric plants, won approval from US energy regulators to install six 16-foot power-generating turbines at the bottom of New York City’s East River.
- Apple Computer said second-quarter earnings soared more than six-fold as the devices propelled sales and helped win new customers for more profitable Macintosh computers.
Handelsblatt:
- DaimlerChrysler AG expects its US commercial-vehicle business to grow sales by 20% over the next 18 months.
Xinhua:
- China called Japan’s decision to grant Japanese companies energy drilling rights in the East China Sea “a provocation.”
S&P 500 1,173.79 -1.18%
DJIA 10,403.93 -.99%
NASDAQ 1,974.37 -1.55%
Russell 2000 602.54 -1.71%
DJ Wilshire 5000 11,553.90 -1.21%
S&P Barra Growth 566.94 -1.04%
S&P Barra Value 602.49 -1.31%
Morgan Stanley Consumer 585.52 -.17%
Morgan Stanley Cyclical 729.50 -1.86%
Morgan Stanley Technology 444.88 -1.74%
Transports 3,548.34 -2.68%
Utilities 367.26 -.70%
Put/Call .94 -20.34%
NYSE Arms 1.65 +71.79%
Volatility(VIX) 13.31 +17.79%
ISE Sentiment 175.00 +11.46%
US Dollar 84.40 -.05%
CRB 300.83 -.59%
Futures Spot Prices
Crude Oil 50.34 +.24%
Unleaded Gasoline 148.15 -.19%
Natural Gas 6.98 +.04%
Heating Oil 144.80 +.42%
Gold 430.90 -.02%
Base Metals 125.38 -3.26%
Copper 145.30 -.45%
10-year US Treasury Yield 4.36% +.19%
Leading Sectors
Drugs +1.37%
Hospitals +.22%
Tobacco +.18%
Lagging Sectors
Energy -2.46%
Semis -2.71%
Steel -3.38%
After-hours Movers
AMD +3.2% after missing 1Q estimates and saying it will spin off its memory-chip unit in an IPO that’s worth as much as $600M.
LRCX +3.5% after beating 3Q estimates.
MNT +10.4% after a government panel recommend that US regulators approve Mentor’s silicone breast implants for sale, after the group yesterday voted to reject Inamed’s similar device.
IFIN -3.13% after missing 1Q estimates.
PLAY -4.4% on AAPL report.
SYNA -4.59% on AAPL report.
IMDC -5.05% on MNT news.
MOGN -6.83% after missing 1Q estimates.
Evening Review
Detailed Market Summary
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
Futures Recap
S&P 500 Gallery View
Timely Economic Charts
PM Market Call
Real-time/After-hours Stock Quote
In Play
Afternoon Recommendations
Goldman Sachs:
- Rated ARO Outperform, target $41.
Afternoon/Evening Headlines
Bloomberg:
- Verdant Power LLC, a closely held developer of hydroelectric plants, won approval from US energy regulators to install six 16-foot power-generating turbines at the bottom of New York City’s East River.
- Apple Computer said second-quarter earnings soared more than six-fold as the devices propelled sales and helped win new customers for more profitable Macintosh computers.
Handelsblatt:
- DaimlerChrysler AG expects its US commercial-vehicle business to grow sales by 20% over the next 18 months.
Xinhua:
- China called Japan’s decision to grant Japanese companies energy drilling rights in the East China Sea “a provocation.”
BOTTOM LINE: US stocks finished sharply lower today as long-term interest rates bounced and worries over slowing economic growth and earnings shortfalls rose. The Portfolio finished lower on losses in my Financial, Homebuilding and Tech longs. I added a few new shorts from various sectors in the afternoon, thus leaving the Portfolio 25% net long. One of my new shorts is GMR and I am using a $49.50 stop-loss on this position. The tone of the market weakened meaningfully into the afternoon as the advance/decline finished sharply lower, almost every sector fell and volume was modest. Measures of investor anxiety remained mixed into the afternoon. Overall, today’s market action was negative, considering the fall in energy prices, recent losses and the market’s inability to follow-through on yesterday’s advance.
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