Bull Radar

Style Outperformer:

• Mid-cap Growth (-.09%)

Sector Outperformers:

• 1) Gold +1.02% 2) Retail +.72% 3) Steel +.62%

Stocks Rising on Unusual Volume:

• WAG, CEVA, IVN, CYMI, ENDP, GPRE, NTAP and CXW
  

Stocks With Unusual Call Option Activity:

• 1) RRC 2) ALU 3) WAG 4) DF 5) QCOR
  

Stocks With Most Positive News Mentions:

• 1) AAPL 2) WAG 3) RIMM 4) BA 5) NOC

Tuesday Watch

Evening Headlines
Bloomberg:

• Berlusconi Yields Climb Amid Threat of Early Italian Election: Euro Credit. Investors are driving up Italy’s borrowing costs as Prime Minister Silvio Berlusconi struggles to retain enough support to prevent early elections in Europe’s most-indebted nation. The extra yield that investors demand to hold 10-year Italian debt rather than German bunds exceeded 163 basis points yesterday to hover at the highest level in a month. The premium is rising as the government prepares to sell as much as 9.5 billion euros ($12.8 billion) of bonds today and tomorrow.
• Yuan Legislation in U.S. Congress My Prompt Retaliation, Businesses Say. U.S. legislation pressing China to raise the value of its currency may boomerang by prompting retaliation against American businesses operating there, representatives of those companies said. “This step would make it harder for us to export to China, not easier,” Timothy Stratford, a partner in Beijing at Covington & Burling LLP and a former U.S. trade official, said at a briefing today in Washington. The House of Representatives is set to consider legislation this week that would let companies petition for higher duties on imports from China to compensate for the effect of a weak currency.
• Takefuji Said to File for Bankruptcy Today Amid Rising Interest Refunds. Takefuji Corp., a Japanese consumer lender, will file for bankruptcy protection today because of rising refunds to borrowers for overcharged interest, according to a person with direct knowledge of the matter.
• October is likely to be "peculiarly dangerous" for Chinese stocks, already Asia's biggest loser in 2010, as the supply of new shares soars in the month that's historically been the worst for the nation's equities, according to China International Capital Corp. The median return in October for China's benchmark during the period has been negative 4.5%, with declines 67% of the time, according to Hao Hong, a global strategist at CICC. This October "will also see a substantial amount of restricted stock starting to become tradable," Hong said. Shares worth $112 billion will become eligible for trading on the Shanghai market next month, he said.
• U.S. Gasoline Supplies Increase in Survey as Demand Falls: Energy Markets. U.S. gasoline inventories probably rose to the highest level in six months as demand slipped with the end of the summer driving season and economic growth slowed, a Bloomberg News survey showed. An increase in first-time claims for jobless benefits in mid-September points to reduced gasoline demand and lower pump prices. Consumption dropped 1.9 percent in the week ended Sept. 17, the smallest level since February. Regular gasoline, averaged nationwide, declined for a tenth straight day to $2.694 a gallon on Sept. 26, the AAA said on its website. “We’ve seen a recent major decline in gasoline demand,” said Peter Beutel, president of trading advisory company Cameron Hanover Inc. in New Canaan, Connecticut. “Normally demand drops at this time of year along with refinery utilization rates. We’ve yet to see refiners cut back.” Gasoline output has outpaced demand during the past three weeks, according to the department. Refineries produced 9.02 million barrels a day of gasoline compared with demand of 8.85 million. Supplies of the fuel in the week ended Sept. 17 were 15 percent higher than the five-year average for the period, the department said. U.S. fuel demand will drop 9 percent to average 18.93 million barrels a day this year, from a record 20.8 million in 2005, the Energy Department said on Sept. 8.
• California May Seek $5 Billion From Wall Street, Lockyer Says. California is lining up a short- term loan of more than $5 billion from a group of Wall Street banks to tide the state over with enough cash after a record- long budget impasse, Treasurer Bill Lockyer said. The state may borrow the money from Bank of America Merrill Lynch, JPMorgan Chase & Co., Goldman Sachs Group Inc. and RBC Capital Markets once a budget is enacted and would repay the funds with an estimated $10 billion of notes it will sell in October or November, Lockyer said today in New York.
• Mexican Mayor Becomes 11th City Chief Killed in 2010 as Drug Deaths Surge. An interim mayor of the Mexican town of Tancitaro in Michoacan state became the country’s 11th city chief killed this year, and may have been stoned to death. State officials were conducting an autopsy to confirm the cause of death after Gustavo Sanchez’s corpse was found on a road in the Michoacan city of Uruapan, said an official at the state attorney general’s office who can’t be identified because of the agency’s policies. He said there were signs the victim may have been killed with rocks.
• Commodity Volatility May Gain Amid Recovery Concerns, SocGen's Godin Says. Commodity prices, which have surged to the highest level since January, may see greater volatility as investors react to threats to the global economic recovery, according to Societe Generale SA. “We’re not completely out of the crisis,” Olivier Godin, the bank’s head of commodities derivatives in Asia, said in an interview from Hong Kong. “There might be some bumps along the way, and that’s going to affect our markets.”
• Chavez May Strengthen Grip on Venezuela Economy as Foes Gain Ground. Venezuelan President Hugo Chavez suffered his worst setback at the ballot box since taking office in 1999, losing his two-thirds majority in congress as support for his rule wanes before 2012 presidential election.
• Kim Jong Il's Son Appointed General Before North Korea Meeting. Kim Jong Il’s youngest son was named a general, signaling the start of a possible power transfer in North Korea to a man said to be in his late 20s who has never previously been mentioned in public.

Wall Street Journal:

• J.P. Morgan(JPM) Targets FDIC Funds for WaMu Claims. J.P. Morgan Chase & Co. is putting federal regulators on notice that it may go after the very funds it used to buy Washington Mutual Inc.'s banking assets—and then some. In a series of previously undisclosed letters sent to the Federal Deposit Insurance Corp., the nation's second-largest bank by assets warned it could seek billions in legal protection from the FDIC receivership that liquidated the Seattle-based thrift two years ago, people familiar with the situation said.
• Fed Weighs Different Approach If It Revives Bond Purchases. Federal Reserve officials are considering new tactics if they resume purchases of long-term U.S. Treasury securities to bolster a disappointingly slow recovery. Rather than announcing massive bond purchases with a finite end, as they did in 2009 to shock the U.S. financial system back to life, Fed officials are weighing a more open-ended, smaller-scale program that they could adjust as the recovery unfolds. The Fed hasn't yet decided to step up its bond purchases, let alone agree on an approach.
• Drones Target Terror Plot. CIA Strikes Intensify in Pakistan Amid Heightened Threats in Europe.
• Local Taxes Sway Races. A recent rise in state and local taxes is roiling voters in an already tumultuous year, complicating the debate over whether to extend Bush-era tax cuts and upending some campaigns. As Washington is consumed with the debate over whether to extend Bush-era tax cuts beyond the end of the year, voters in many parts of the country are focused on state tax increases already hitting them.
• ObamaCare's Hotel California. The state moves to impose price controls you can never leave. California, the novelist Wallace Stegner famously wrote, is like the rest of America, only more so—meaning that wherever the country is headed, the Golden State is probably there already. So the state's ObamaCare advance planning deserves closer scrutiny, given that it mirrors the regulatory and ideological model that the White House favors for everyone else.
• Pimco's Hodge: Global Deflation Now Bigger Risk Thank Inflation.

CNBC:

• The Hottest of the Hot Toys Starts to Emerge.

Business Insider:

• BlackBerry PlayBook, RIM's(RIMM) iPad Clone, Coming In Early 2011.
• GE(GE) Just Made Its Last Conventional Light Bulb in the US - Another 200 Employees Out of Work. Speaking of the de-industrialization of America, Tim Carney was on hand for the production of GE's last-ever incandescent lightbulb in the United States. The shutdown of a plant in Winchester, VA will result in the layoffs of 200 workers. It's yet another example of a company shifting manufacturing jobs overseas, but there's a twist, because GE is supporting the environmental regulations that are driving incandescent lightbulbs to the deadpool.

Zero Hedge:

• Bullard Confirms Quantitative Easing Over $1 Trillion Would Result in Outright Debt Monetization, While Geithner Said Would Never Be Allowed.

NY Times:

• Where Are All the Prosecutions From the Crisis? At a hearing before the Senate Judiciary Committee last week, Senator Ted Kaufman of Delaware summed up the frustration on Capitol Hill with the lack of any identifiable villains for the financial troubles of the last two years. “We have seen very little in the way of senior officer or boardroom-level prosecutions of the people on Wall Street who brought this country to the brink of financial ruin,” Mr. Kaufman said. “Why is that?”
• India's Spy Plan Said to Deter Business.

Politico:

• Five Most Competitive Senate Races.

Reuters:

• Jabil(JBL) Q4 Revenue Lags Street, Sees Q1 Revenue Below Market. Technology distributor Jabil Circuit Inc's (JBL) quarterly revenue missed Wall Street expectations, and the company forecast first-quarter 2011 sales below estimates, sending its shares down 2 percent in extended trade.
• Progress Energy(PGN) Trading Halt Sparks Questions. Shares of Progress Energy Inc were halted briefly on Monday on the New York Stock Exchange after trading triggered a circuit breaker, although more than 100 trades took place after the stock had moved enough to trigger a halt. Nearly 60 erroneous trades have been canceled, according to a Nasdaq representative.
• U.S. Set to Propose New Auto Fuel, Emissions Rules. The Obama administration this week will propose new fuel efficiency and emissions requirements for cars and light trucks for model years 2017 and beyond.
• U.S. Bank Regulators Delay 'Too Big Fail' Reform. U.S. banking regulators on Monday put off proposing how the government would use its new authority to dismantle large, collapsing financial companies, saying they need more time for industry and other regulators to weigh in.
• Paychex Q1 Profit Beats Street View. Payroll processor Paychex Inc (PAYX) reported a quarterly profit above market view, helped by an increase in revenue from its human resources services segment.

Financial Times:

• Mexico Hedges Against Fall in Oil Prices. Mexico is hedging its oil exports for 2011 at about $65 to $70 a barrel as it takes a cautious view on the global economic recovery, citing bankers, traders and brokers. Based on current market rates, Mexico is paying a premium between $5 and $6 a barrel for the put options, placing the program's cost at about $1 billion, citing bankers.

Telegraph:

• Americans! Don't Copy Europe! The policies his administration is pursuing amount to comprehensive Europeanisation: European carbon taxes, European foreign policy, European healthcare, European daycare, European disarmament, European industrial intervention and, inevitably, European unemployment rates.

Shanghai Securities News:

• Relevant Chinese government departments may jointly sign off on trials for a property tax. The trials may be announced publicly soon.
  

Evening Recommendations
Citigroup:

• Downgraded (HSP) to Sell, target $52.

Night Trading

• Asian equity indices are -.50% to +.25% on average.
• Asia Ex-Japan Investment Grade CDS Index 127.0 +1.0 basis point.
  
• Asia Pacific Sovereign CDS Index 113.0 -2.5 basis points.
  
• S&P 500 futures +.14%.
  
• NASDAQ 100 futures +.17%.

Morning Preview Links

Earnings of Note
Company/Estimate

• (WAG)/.44

Economic Releases
10:00 am EST

• Consumer Confidence for September is estimated to fall to 52.1 versus a reading of 53.5 in August.
  

Upcoming Splits

• None of note
  

Other Potential Market Movers

• The S&P/CaseShiller Home Price Index, weekly retail sales reports, Richmond Fed Manufacturing Index for September, ABC Consumer Confidence reading, Fed's Warsh speaking, Fed's Lockhart speaking, $35 Billion 5-Year Treasury Notes Auction, (BAM) Investor Day, BofA Merrill Power/Gas Conference, JMP Securities Healthcare Conference, DA Davidson Construction Conference and the (HPQ) analyst meeting could also impact trading today.
  

BOTTOM LINE: Asian indices are mostly lower, weighed down by technology and automaker shares in the region. I expect US stocks to open modestly higher and to weaken into the afternoon, finishing mixed. The Portfolio is 75% net long heading into the day.

Stocks Slightly Lower into Final Hour on Rising Sovereign Debt Angst, Profit-Taking, Real Estate Worries

Broad Market Tone:

• Advance/Decline Line: Slightly Lower
  
• Sector Performance: Mixed
  
• Volume: Below Average
  
• Market Leading Stocks: Outperforming
  

Equity Investor Angst:

• VIX 22.19 +2.21%
  
• ISE Sentiment Index 120.0 -16.67%
  
• Total Put/Call .82 unch.
  
• NYSE Arms .77 +48.14%
  

Credit Investor Angst:

• North American Investment Grade CDS Index 108.50 bps -1.03%
  
• European Financial Sector CDS Index 130.78 bps +1.57%
  
• Western Europe Sovereign Debt CDS Index 156.0 bps +.38%
  
• Emerging Market CDS Index 222.46 bps -3.57%
  
• 2-Year Swap Spread 18.0 -1 bp
  
• TED Spread 16.0 +2 bps
  

Economic Gauges:

• 3-Month T-Bill Yield .13% -2 bps
  
• Yield Curve 209.0 -7 bps
  
• China Import Iron Ore Spot $139.50/Metric Tonne unch.
  
• Citi US Economic Surprise Index -7.10 +1.6 points.
  
• 10-Year TIPS Spread 1.78% -6 bps
  

Overseas Futures:

• Nikkei Futures: Indicating -33 open in Japan
• DAX Futures: Indicating +29 open in Germany

Portfolio:

• Slightly Higher: On gains in my Tech, Ag and Retail long positions
  
• Disclosed Trades: None
  
• Market Exposure: 75% Net Long

BOTTOM LINE: Today's overall market action is mildly bullish as the S&P 500 trades just slightly lower despite recent sharp equity gains, rising real estate sector pessimism, sovereign debt worries and more weak economic data. On the positive side, Airline, Gaming, Telecom, Networking, Steel and Oil Tanker shares are especially strong, rising 1.0%+. Select large-cap growth stock leaders continue to trade much better than the broad market. The S&P GSCI Ag Spot Index is rising another +.67%. On the negative side, Education, REIT, Biotech and Disk Drive shares are under pressure, falling more than 1.0%. (IYR) has been a bit heavy throughout the day again. Lumber is falling -1.41%. The Euro Financial Sector CDS Index is up again today and is very near a technical breakout, which is a major negative. The Portugal sovereign cds is rising +3.10% to 414.14 bps and is close to a new record high. The Ireland sovereign cds is continuing its recent parabolic move higher, rising another +2.01% to a record of 475.87 bps and the Greece sovereign cds is gaining +2.16% to 836.92 bps. Furthermore, key credit default swap indices continue to move higher, even as equities trend higher, which is also a large negative. I suspect equity investors will continue to ignore these moves until they start to negatively impact the euro currency. Oil continues to trade poorly given recent equity and euro strength. The 10-year yield is down another -9 bps to 2.51% and is close to its 52-week low at 2.41%. The Shanghai Composite closed slightly above its 50-day moving average last night, but remains a global laggard. Consumer confidence for September, which is released tomorrow, should exceed estimates. I expect US stocks to trade mixed-to-higher into the close from current levels on short-covering, technical buying, growth stock optimism and buyout speculation.

Today's Headlines

Bloomberg:

• Anglo Irish Senior Bonds Fall for Sixth Day on Bets Investors Face Losses. Anglo Irish Bank Corp. government- guaranteed senior bonds fell for a sixth day as investors wagered they’ll be forced to share the cost of bailing out the nationalized lender with taxpayers. Anglo Irish’s floating-rate notes due 2013 fell to 83.1 cents on the euro from 95.8 a week ago and its 2014 securities dropped to 81.4 cents from 99.2 cents on Sept. 17, according to so-called fair value prices on Bloomberg. “It’s all about whether Ireland can afford the bailout of Anglo Irish,” said Tom Jenkins, a banking analyst at Jeffries International Ltd. in London. “There are also the other banks that need cash and all the wider political and economic issues the country has.” Moody’s Investors Service downgraded Anglo Irish’s covered bond ratings today to A2, five levels above junk, from Aa2, citing concern that the bank won’t be able to ensure timely payments on the notes. The New York-based firm also cut the bank’s senior unguaranteed rating by three levels to Baa3 from A3 and its subordinated grade six levels to Caa1 from Ba1.
• Smallest Commodity Moves Since 1996 Signal Precious-Metal Gain.
• New York City to Replace Automatic Teacher Tenure With Performance System. New York City Mayor Michael Bloomberg plans to overhaul how tenure is awarded in city schools and institute a system that grants job security based on performance. Beginning this year, teachers will be rated on a four-tier system, with those rated “effective” and “highly effective” eligible for tenure after three years, the mayor’s office announced in a statement today. “This will transform the tenure system from one in which tenure is taken for granted, to one in which it must be earned through effective performance in the classroom,” according to the statement.
• Southwest(LUV) Agrees to Buy AirTran(AAI) for $1.4 Billion, Enter Atlanta. Southwest Airlines Co., the largest U.S. low-fare carrier, agreed to buy AirTran Holdings Inc. for about $1.4 billion in cash and stock, giving it access to Atlanta, the world’s busiest airport. The offer values Orlando, Florida-based AirTran at $7.69 a share, 69 percent more than its closing price on Sept. 24, Southwest said today in a statement.
• Treasuries Rise on Speculation Federal Reserve to Increase Debt Purchases. Treasuries gained, with longer-term debt leading advances, as traders speculated the Federal Reserve will increase purchases of U.S. debt to boost the economy. Bonds also rose as Anglo Irish Bank Corp.’s senior debt was cut to the lowest investment grade rating by Moody’s Investors Service, encouraging demand for safety.
• Sovereign-Rating Cuts Will Persist in Era of Budget Woes, S&P's Beers Says. The era of sovereign-rating downgrades is likely to continue because of budget deficits and demographic pressures on public finances, Standard & Poor’s analyst David Beers said. “We’re now in an era which I and my team think is going to persist for quite some time to come -- because of the coming demographic public-finance pressures which are looming before us as well -- where we do expect there will be continued falls in sovereign ratings,” Beer, S&P’s Global Head of Sovereign Ratings, said at an event in London today. “We’re not in normal times now,” Beers said. “It’s perfectly respectable for governments to decide to make fiscal decisions even if it means that there’s cost in terms of its credit rating,” though “when you get to Greece and other countries where solvency is truly in question, then your fiscal choices are” more limited. Beer’s said that the growth potential in the euro region may keep deteriorating, which has exposed the budget weaknesses in some member economies. “There’s no doubt, certainly in the euro zone, and I think more broadly in the OECD countries, or many of them, that there has been and will continue to be a shift downwards in terms of trend growth,” he said. “Growth will be more sluggish and that of course has highlighted very significant fiscal imbalances, particularly with respect to the euro-zone peripheral countries.”

Wall Street Journal:

• Banks Keep Failing, No End in Sight. Since WaMu Fell, 279 Lenders Have Collapsed; Lost Jobs, Curtailed Lending and the Big Get Bigger. The largest number of bank failures in nearly 20 years has eliminated jobs, accelerated a drought in lending and left the industry's survivors with more power to squeeze customers.
• The Wall Street Journal 2010 Technology Innovation Awards. Among the winners: computer screens that can bend, adjustable eyeglasses, a low-cost genetic test, an online marketplace for receivables and a new way to battle malware.

CNBC:

• ATMs That Sell Gold Bars Are Coming Soon to America. A German firm that installs and manages gold vending machines aims to introduce them into the United States this year as it expands rapidly to take advantage of demand for bullion in times of economic uncertainty.
• Health Costs of US Employers at 5-Year High: Study. U.S. employers can expect to pay nearly 9 percent more for health care costs for their workers in 2011, the highest level in five years, according to a forecast released Monday. And employees will have to pay more than 12 percent more out of their pockets, according to the report from consulting group Hewitt Associates. The Hewitt report blames higher medical claim costs, an aging population and U.S. healthcare reform.

Business Insider:

• Think Apple(AAPL) Stock is Overhyped and Expensive? This Argues It's Still Cheap.

Zero Hedge:

• Some Additional Observations on High Frequency Trading Stock Manipulation.
• Insider Selling to Buying Surpasses 1,400-1.
  

New York Times:

• U.S. Wants to Make It Easier to Wiretap the Internet. Federal law enforcement and national security officials are preparing to seek sweeping new regulations for the Internet, arguing that their ability to wiretap criminal and terrorism suspects is “going dark” as people increasingly communicate online instead of by telephone. Essentially, officials want Congress to require all services that enable communications — including encrypted e-mail transmitters like BlackBerry, social networking Web sites like Facebook and software that allows direct “peer to peer” messaging like Skype — to be technically capable of complying if served with a wiretap order. The mandate would include being able to intercept and unscramble encrypted messages.

Seeking Alpha:

• The Great Australian Housing Bubble. There is currently a widespread debate in Australia and abroad over whether Australia is experiencing an unsustainable housing bubble, or asset inflation based upon sound fundamentals.
• Chicago. Dallas Feds Point to Slowdown.
  

Real Clear Politics:

• Manchin Calls for Partial Repeal of Health Reform. In Democratic Gov. Joe Manchin's quest to strike a bipartisan chord as he campaigns to fill the late Democratic Sen. Robert Byrd's seat, he's joining the GOP's call to repeal pieces of health care reform.

The Hill:

• Mortgages Out of Reach for One-Third of Americans, Study Finds. Legislative efforts to improve the housing market come as nearly one-third of mortgage applicants are unlikely to qualify for a loan, according to analysis by the real estate website Zillow Mortgage Marketplace. After examining over 25,000 loan quotes and purchase requests, Zillow found that prospective borrowers with a 620 credit score could not qualify for a home loan -- even for those willing to make substantial down payments of 15 percent to 25 percent of the home's selling price. Nearly one-third of Americans, or 29.3 percent, have a credit score at or below 620, according to myFICO.com. Uncertainty in the loan market is primary reason for why banks will no longer loan to these people.
  

Politico:

• Politics Trumps First Amendment Rights. Judging by the flurry of recent speeches, press releases and op-ed articles criticizing right-of-center organizations and donors, the left appears to have taken a chapter out of the Nixon playbook. These efforts look like an orchestrated campaign to intimidate and silence opposition to President Barack Obama’s agenda. Any other day, these same people would be the first to trumpet the virtues of free speech.
• Poll: Rocky Road Seen Ahead for Obama. A significant majority of voters are considering voting against President Barack Obama in the 2012 election, expressing sour views of his new health care law and deep skepticism about his ability to create jobs and grow the sluggish economy, according to the latest POLITICO / George Washington University Battleground Poll. Only 38 percent of respondents said Obama deserves to be reelected, even though a majority of voters hold a favorable view of him on a personal level. Forty-four percent said they will vote to oust him, and 13 percent said they will consider voting for someone else.
  

USA Today:

• Michigan Bill Would Ban Welfare Debit Card Use at ATMs in Casinos.

Reuters:

• Canada Set to End Stimulus Despite Shaky Recovery. Canada's government resisted pressure on Monday to extend its stimulus spending program despite a slowing economy, saying it is now focused on reducing its budget deficit and has spent most of the money it had earmarked anyway.
• Moody's Warns About Greek Banks Deposit Outflows.
  

Financial Times:

• Brazil Warns of 'Currency War'. Guido Mantega, Brazil’s finance minister, said on Monday the world was in an “international currency war”, in a further sign that Brazil is preparing measures to prevent further appreciation of its currency, the real. Mr Mantega, who has made increasingly aggressive comments recently about the need to control Brazil’s currency, said governments around the world were trying to weaken their currencies to promote competitiveness.
• Japan May Demand Compensation From China. Japan may demand compensation from Beijing for the repair of coast guard vessels damaged in a collision with a Chinese fishing boat that sparked the worst Sino-Japanese diplomatic dispute in years. Tokyo on Monday said it was considering making a formal compensation claim after a weekend of testy exchanges that highlighted continuing tensions between the neighbours even after Japan released the captain of the Chinese fishing boat.

MailOnline:

• Tycoon Who Took Over Segway Firm Dies in Freak Accident After Riding One of the Machines Off a Cliff and Into a River.

Handelsblatt:

• The European Central Bank considered activating the euro-region's rescue fund to assist Ireland in refinancing debt, citing government officials. Various euro-area countries had already been told to raise money on Ireland's behalf if the need arose. The spread investors demand to hold 10-year Irish bonds instead of German debt of the same maturity widened to a record 411 basis points last week.

ABC:

• Two Spanish city administrations are considering a court appeal against the central government's move to block some town halls from issuing debt in 2011, citing legal documents. Madrid and Valencia have prepared legal reports suggesting the move by Finance Minister Elena Salgado is unconstitutional.

AFP:

• OECD Urges Portugal to Act to Secure Market Confidence. The Portuguese government needs to act fast to shore up its public finances, maybe with tax increases, to ensure vital support from investors, the OECD stressed on Monday. "The immediate challenge is to foster investor confidence by rapidly consolidating the public finances," the Organisation for Economic Cooperation and Development said in a report on Portugal. Action should be taken "swiftly," with the government being prepared "to raise taxes, focusing on those that are the least distorting to growth, such as consumption and property taxes." The report also suggested extending a freeze on government salaries, adopted this year, up to 2013. Portugal is struggling with a huge public debt, raising fears for its solvency elsewhere in Europe and driving up the government's cost of borrowing on the sovereign debt market.

Bear Radar

Style Underperformer:

• Small-Cap Growth (-.58%)

Sector Underperformers:

• 1) Education -3.21% 2) Disk Drives -2.12% 3) REITs -1.42%

Stocks Falling on Unusual Volume:

• MTB, ALNY, SI, ISLN, CSGS, CALM, INFN, HOLX, CISG, SCVL, GYMB, DNDN, AMMD, JBHT, HSFT, VRSK, VCLK, ISRG, WYNN, STRA, RDWR, CRESY, KNM, CHU and TNC
  

Stocks With Unusual Put Option Activity:

• 1) AMR 2) LDK 3) RTP 4) AIG 5) TOL
  

Stocks With Most Negative News Mentions:

• 1) CHK 2) HS 3) TASR 4) GS 5) ZLC