Style Outperformer:
Large-cap Value (+1.91%)
Sector Outperformers:
Steel (+3.16%), Insurance (+2.87%) and Banks (+2.94%)
Stocks Rising on Unusual Volume:
Tuesday, February 12, 2008
Bull Radar
Links of Interest
Market Snapshot Commentary
Market Performance Summary
Style Performance
Sector Performance
WSJ Data Center
Top 20 Biz Stories
IBD Breaking News
Movers & Shakers
Upgrades/Downgrades
In Play
NYSE Unusual Volume
NASDAQ Unusual Volume
Hot Spots
Option Dragon
NASDAQ 100 Heatmap
DJIA Quick Charts
Chart Toppers
Intraday Chart/Quote
Dow Jones Hedge Fund Indexes
Monday, February 11, 2008
Tuesday Watch
Late-Night Headlines
Bloomberg:
- Federal Reserve Bank of St. Louis President William Poole said that the US will probably avoid a recession and that the Fed’s interest-rate policy is appropriate for the slowing economy.
Wall Street Journal:
- Indian automobile maker Mahindra & Mahindra Ltd.’s light pickup trucks will be assembled in
CNBC.com:
- Venezuela Moves Bank Accounts After Exxon(XOM) Freeze.
- S&P 500 Earnings Leaderboard: Biggest Surprises Season to Date.
- Blackberry Outage Strikes Across North America.
NY Times:
- Hedge Funds Raise Stake in Times Co. To Near 10%.
- AT&T(T) Joins Starbucks(SBUX) to Provide Store Wi-fi.
BusinessWeek.com:
- GTx(GTXI): A Compelling Biotech. S&P says the company’s lead drug candidate, Acapodene, represents a “significant opportunity” in the treatment of prostate cancer.
CNNMoney.com:
- Earnings: Nowhere to go but up. Banks dragged down profit growth for the S&P 500 in the fourth quarter and will likely do so again in the first quarter. But earnings may improve by year’s end.
- Deferred earnings: Apple’s(AAPL) hidden revenue bonus.
IBD:
- IBD Reinvents Market Section To Help You Focus On Winners.
- Support grows for Sony’s(SNE) Blu-ray high-def DVDs.
- Lawyer gets two years in prison for class-action schemes.
Reuters:
- Six mortgage lenders will announce a plan tomorrow to help delinquent homeowners avoid foreclosure.
- Cisco CEO: Don’t freak out about weak market.
- Short interest in shares of Intel Corp.(INTC) rose 48% from mid-January to late January, the largest increase of any Nasdaq stock.
- Non-Hispanic whites will become a minority in the US by 2050, with immigrants and their children driving 82% of US population growth in coming years, a new study said.
Financial Times:
- Fed is right to intervene to ward off recession. As the US economy and markets weaken, perennial pessimists have moved to center stage, arguing for the inevitability of a serious recession.
TimesOnline:
- Microsoft(MSFT) Vows it will Continue Yahoo!(YHOO) Fight.
Late Buy/Sell Recommendations
Citigroup:
- Maintained Buy on (PBI), target $51.
- Reiterated Buy on (A), target $44.
Night Trading
Asian Indices are +.25% to +1.50% on average.
S&P 500 futures +.03%.
NASDAQ 100 futures unch.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Pre-market Stock Quote/Chart
Before the Bell CNBC Video(bottom right)
Global Commentary
WSJ Intl Markets Performance
Commodity Movers
Top 25 Stories
Top 20 Business Stories
Today in IBD
In Play
Bond Ticker
Economic Preview/Calendar
Daily Stock Events
Macro Calls
Upgrades/Downgrades
Rasmussen Business/Economy Polling
CNBC Guest Schedule
Earnings of Note
Company/EPS Estimate
- (IMB)/-1.57
- (MAS)/.28
- (SGP)/.25
- (WYN)/.45
- (MMC)/.31
- (OMC)/.95
- (GM)/-.64
- (Q)/.14
- (CCE)/.27
- (TAP)/.65
- (WYNN)/.68
- (CEPH)/.80
- (PNRA)/.55
- (
- (XTO)/.92
- (SNDA)/.45
- (XMSR)/-.63
- (AMAT)/.20
- (BWLD)/.32
Upcoming Splits
- (WGOV) 2-for-1
Economic Releases
10:00 am EST
- The Monthly Budget Surplus for January is estimated at $19.0 billion versus $38.2 billion in December.
Other Potential Market Movers
- The IBD/TIPP Economic Optimism Index, (LVS) investor conference, (DRI) analyst meeting, (ERTS) analyst meeting, UBS Global Healthcare Services Conference, Lehman Brothers Industrial Select Conference, BIO CEO & Investor Conference, Goldman Sachs Ag Conference, Citigroup Retail Conference and Merrill Insurance Investors Conference could also impact trading today.
Stocks Finish Near Session Highs, Led by Technology, Energy, Retail and Homebuilding Shares
Evening Review
Market Summary
Today’s Movers
Market Performance Summary
WSJ Data Center
Sector Performance
ETF Performance
Style Performance
Commodity Movers
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Commentary
After-hours Movers
After-hours Stock Quote
In Play
Stocks at Session Highs into Final Hour on Bargain-Hunting, Short-Covering
BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Gaming longs, Computer longs, Semi longs, Medical longs and Retail longs. I covered all of my (IWM)/(QQQQ) hedges, some of my (EEM) short and added to my (AMSC) long this morning, thus leaving the Portfolio 100% net long. The overall tone of the market is mildly positive as the advance/decline line is slightly higher, most sectors are rising and volume is about average. Investor anxiety is above average. Today’s overall market action is bullish. The VIX is falling .6% today, but remains high at 28.0. The ISE Sentiment Index is a below average 115.0 and the total put/call is an above-average .96. Growth stocks are substantially outperforming value stocks for the second day in a row, with many positing meaningful gains. As I said last week, after underperforming in January, I suspect a significant rotation back into “growth” stocks and away from “value” stocks is underway again. I still expect growth to outperform value for several more years. Today’s upside market reversal came despite more weakness in the (XLF) and Asian indices, which is a big positive. Moreover, despite financial sector weakness, the TED spread fell to .78 basis points today, the lowest since August of last year. While I am not currently long (MSFT), I suspect that the stock is near an important low, which could help boost the Nasdaq as its substantial drag on the index subsides. Nikkei futures indicate a flat open in Japan and DAX futures indicate a +77 open in Germany
Today's Headlines
Bloomberg:
- Barton Biggs, co-founder of hedge fund Traxis Partners LLC, said he’s “gradually increasing” his holdings of US equities because he doesn’t expect a recession and shares are “very, very cheap.”
- Investments in agricultural-commodity indexes soared to $1.5 billion in the week ended Feb. 5, almost double the previous weekly record, which helped drive up prices for the underlying commodities, UBS AG said.
- Cheap Natural Gas Seen Returning 20% as Oil Meets Slowdown.
- Crude oil is rising to a one-month high on increasing investment fund speculation after Valero Energy(VLO) shut its
- GM(GM) Tops Toyota Abroad Proving Drop to No. 2 Premature.
- Delta Air(DAL) may reach a merger agreement with Northwest Air(NWACQ) that would form the world’s largest carrier.
- Microsoft’s P/E Pushes Technology Valuation Hell.
- Bank of
- American International Group(AIG) fell the most in 20 years in NY trading after saying it overstated the value of contracts protecting fixed-income investors against losses. Goldman Sachs said it would be aggressive buyers of the shares on today’s weakness.
Wall Street Journal:
- Circuit City’s(CC) CEO Schoonover Concedes Shake-Up Last Year Disrupted The Electronics Retailer, But He Says It Will Pay Off.
- Cardinal Health(CAH) Could Be Regaining Its Strength.
- Marking a milestone for US law firms, Latham & Watkins LLP said its 2007 gross revenue was just over $2 billion, the highest figure ever reported for a US-based law firm.
NY Times:
- Oil Money Cultivates an Ivy League in Mideast.
Dow Jones:
- European Central Bank council member Michael Bonello said he doesn’t see signs of a “negative impact” on European economic growth from the
Trademork.com:
- Apple(AAPL) Trademark Filing Suggests Game Unit Plan.
Forbes:
- Alternative Fuel Technology Expects to Drive Growth of the Environmental Testing Equipment Market.
- In Mexico, an energized economy raises hopes.
- Countrywide(CFC) plans to help more avoid foreclosure.
AFP:
- Venezuelan President Hugo Chavez said the country could seize dairy plants owned by Nestle SA, the world’s largest food company, and Italian milk producer Parmalat SpA. The government “has got to take a tougher line,” Chavez said. The country is facing an “economic conspiracy,” he said.
Les Echos:
- Gucci Group had “solid” 15-percent growth in the
globeandmail:
- SEI White Paper: Maturing Hedge Fund Industry Must Shift Gears to Grow Institutional Business.
- The Group of Seven(G-7) rich states on Saturday approved the sale of gold by the International Monetary Fund from April as part of a broad reform of its budget.
Bear Radar
Style Underperformer:
Small-cap Value (-.30%)
Sector Underperformers:
Insurance (-4.77%), HMOs (-1.88%) and Hospitals (-1.33%)
Stocks Falling on Unusual Volume:
Bull Radar
Style Outperformer:
Large-cap Growth (+.18%)
Sector Outperformers:
Alternative Energy (+2.0%), Semis (+1.82%) and Homebuilders (+1.4%)
Stocks Rising on Unusual Volume:
Links of Interest
Market Snapshot Commentary
Market Performance Summary
Style Performance
Sector Performance
WSJ Data Center
Top 20 Biz Stories
IBD Breaking News
Movers & Shakers
Upgrades/Downgrades
In Play
NYSE Unusual Volume
NASDAQ Unusual Volume
Hot Spots
Option Dragon
NASDAQ 100 Heatmap
DJIA Quick Charts
Chart Toppers
Intraday Chart/Quote
Dow Jones Hedge Fund Indexes
Sunday, February 10, 2008
Monday Watch
Weekend Headlines
Bloomberg:
- Yahoo!(YHOO), the Internet company that has failed to crack Google’s(GOOG) dominance of Web search, plans to reject a $44.6 billion takeover bid from Microsoft Corp.(MSFT). Yahoo wants at least $40, the Wall Street Journal reported.
- The average price of regular gasoline at the pump in the
- The euro posted its biggest weekly decline against the US dollar since June 2006 on speculation a slowing economy will force the European Central Bank to join the Federal Reserve in reducing interest rates.
- Illumina Inc.(ILMN), the maker of high-speed gene analysis equipment, said it sequenced the first complete genome of an African man, completing the task at record time and cost. The sequence was completed in less than four weeks at a cost of about $100,000. The Illumina announcement is the most recent step toward the goal of a $1,000 genome, the cost point at which analysts and doctors have said full-genome sequencing for individuals will become commonplace. “For right now, I think they have the advantage,” said Ross Muken, a Deutsche Bank AG analyst. “I look at them as the leader.”
- President Bush said Republican presidential front-runner John McCain is a “true conservative” and vowed to help him gain the support of skeptics if he wins the nomination.
- Venezuelan President Hugo Chavez Calls for Farm Seizures, Raises Prices Amid Shortages.
- Venezuelan President Hugo Chavez called Exxon Mobil Corp.'s attempt to freeze $12 billion in Venezuelan assets a case of U.S. ``economic sabotage'' and said such behavior could drive him to cut off oil supplies. A cutoff would drive oil to $200 a barrel, Chavez said today on his ``Alo, Presidente'' weekly talk show on state radio and television.
- Group of Seven officials indicated they’ll be forced into more interest-rate cuts and tax reductions to shore up the global economy. US Treasury Secretary Henry Paulson said in a statement after a meeting in Tokyo of finance ministers and central bankers from Group of Seven nations the global economy faces “downside risks” from the rout of capital markets that is “serious and persisting.” The group discussed rising oil prices, and called on OPEC to boost production, as well as the need to remain open to foreign investment, Paulson said.
- A newly discovered protein on the surface of cells in the intestine allows them to be infected by HIV, the virus that causes AIDS, and may be a target for experimental drugs in attacking the disease at its start.
-
- Microsoft Corp.(MSFT) shares haven’t been as cheap since 1986, the year Bill Gates took what would become the world’s largest software maker public. Nokia(NOK) is trading at its least expensive level since surpassing Motorola(MOT) as the biggest producer of mobile phones in 1998. Computer and software-related companies in the MSCI World Index were valued at 20.8 times profit on Feb. 6, the lowest ever and down from 91.1 at the start of the decade. Institutional investors turned sellers of technology shares in December and dumped more on a net basis last month than in any 20-day period since August 2002, two months before the Morgan Stanley Tech Index bottomed in October of 2002. The Morgan Stanley Tech Index is currently up 114.2% from that low.
Wall Street Journal:
- Hillary Rodham Clinton named a new campaign manager and suffered losses to Obama in Louisiana, Nebraska, Washington state and Maine over the weekend.
- Motorola(MOT) and Nortel Networks are in talks to combine their wireless-infrastructure units in a joint ventures.
NY Times:
- Walt Disney(DIS) and other theme-park operators are developing rides rooted in technology to attract younger audiences.
- In an attempt to increase book sales, HarperCollins Publishers will begin offering free electronic editions of some of its books on its Web site, including a novel by Paulo Coelho and a cookbook by the Food Network start Robert Irvine.
- After rising steadily in the 1980s and ‘90s, worldwide paper consumption per capita has plateaued in recent years.
- Eons, a tiny two-year-old company based in Boston, is one of several contestants aiming to become the pre-eminent Web destination for boomers.
CNBC.com:
- Bush Says to Sign Stimulus Plan on Wednesday.
- Homeowners May Be Big Winners In Stimulus Plan.
- Tobias’ Wife Unlikely to Face Murder Charges.
MarketWatch.com:
- New tax perks, legal changes to consider as you do your 2007 taxes.
IBD:
- Domain Name Game Still Going Strong; Tad Less Secretive.
TheStreet.com:
- Apple(AAPL) Ready to Shine Again.
Investment Dealer’s Digest:
- Still Room for Small Hedge Funds.
- San Francisco Bay Area pollution regulators are proposing charging local businesses an annual fee based on the volume of greenhouse gases they emit.
Platts:
-
- Business travelers can’t seem to pack light on gadgets.
- Social-networking sites going global.
- Consumers wonder how much, when on tax rebate.
CNNMoney.com:
- 5 Stocks We Love.
SmartMoney.com:
- The Selloff That Wasn’t. Cisco’s(CSCO) weak forecast should’ve clobbered tech stocks this week. It didn’t.
Reuters:
- Mullah Omar and other Taliban leaders are directing insurgency operations in Afghanistan from the Pakistani city of Quetta, while al Qaeda leader Osama bin Laden is operating from Pakistan’s tribal areas, a senior US administration official said.
- Auto economist sees limited drop in 2008 sales.
- US machine tool demand rose 8% in 2007, two trade groups said in a joint report on Sunday. “Exceptionally strong December results have driven 2007 manufacturing technology to a level 8% above 2006,” AMT President Byrd said.
Financial Times:
- Research by the Global Wind Energy Council showed that, although Europe remains the world’s biggest generator of wind energy, its position is being eroded as growth speeds up in the US and China.
- The US is unlikely to suffer a recession this year, according to the CEO of BASF, who has accused the financial industry of “panicking” about the economic effect of the credit crunch.
- China’s $200 billion sovereign wealth fund is preparing to grant mandates of as much as $30 billion to international fund managers and is expected to receive another injection of capital for its offshore investments from the country’s $1.530 billion in foreign exchange fees.
- Hedge funds put up shutters to weather storm.
- One of Moore Capital’s best traders is spinning out his hedge fund to create a new $2.5 billion London-based asset manager in what is likely to be one of the year’s biggest hedge fund launches.
TimesOnline:
- Yahoo!(YHOO) set to revive merger talks with AOL after rejecting hostile takeover.
International Herald Tribune:
- A rocky road ahead for commodities.
Spiegel:
-
Nikkei:
- Hino Motors Ltd., 50% owned by Toyota Motors, increased production capacity at a US plant that makes parts for its parent’s large vehicles. Hino raised its workforce 20% and added a new line to produce suspension parts for
Weekend Recommendations
Barron's:
- Made positive comments on (ISCA), (K), (GIS), (HJZ), (KFT) and (SPWR).
Citigroup:
- Maintained Buy on (CF), raised estimates and target to $146.
- Reiterated Buy on (MER), target $75.
Night Trading
Asian indices are -1.75% to -.50% on avg.
S&P 500 futures -.47%.
NASDAQ 100 futures -.61%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Pre-market Stock Quote/Chart
Before the Bell CNBC Video(bottom right)
Global Commentary
WSJ Intl Markets Performance
Commodity Movers
Top 25 Stories
Top 20 Business Stories
Today in IBD
In Play
Bond Ticker
Economic Preview/Calendar
Daily Stock Events
Macro Calls
Upgrades/Downgrades
Rasmussen Business/Economy Polling
CNBC Guest Schedule
Earnings of Note
Company/Estimate
- (LTR)/1.13
- (CSL)/.53
- (HAS)/.81
- (CNA)/1.02
- (GGP)/.25
- (CUZ)/.02
- (NUAN)/.02
- (PAY)/.36
- (OSG)/.59
- (LNCR)/.67
Upcoming Splits
- (WGOV) 2-for-1
Economic Data
- None of note
Other Potential Market Movers
- The (COT) analyst meeting, (MSFT) financial analyst briefing, (LVS) investor conference, Goldman Sachs Small/Mid-cap Financial Services Symposium, BIO CEO & Investor Conference, Lehman Brothers Industrial Select Conference, UBS Global Healthcare Services Conference, Citigroup Retail Conference and GSMA Mobile World Congress could also impact trading today.
Weekly Outlook
Click here for The Week Ahead by Reuters.
Click here for Stocks in focus Monday by MarketWatch.
There are a number of economic reports of note and many significant corporate earnings reports scheduled for release this week.
Economic reports for the week include:
Mon. – None of note
Tues. – Monthly Budget Statement, weekly retail sales
Wed. – Weekly MBA Mortgage Applications report, weekly EIA energy inventory report, Advance Retail Sales, Business Inventories
Thur. – Trade Balance, Initial Jobless Claims
Fri. – Import Price Index, Empire Manufacturing, Net Long-term TIC Flows, Industrial Production,
Some of the more noteworthy companies that release quarterly earnings this week are:
Mon. – Loews Corp.(LTR), Hasbro Inc.(HAS), CNA Financial(CNA), Cousins Properties(CUZ), Nuance Communications(NUAN), VeriFone(PAY), Lincare Holdings(LNCR)
Tues. – Wyndham Worldwide(WYN), Schering-Plough(SGP), General Motors(GM), Qwest Communications(Q), Wynn Resorts(WYNN), Panera Bread(PNRA), Blue Nile(NILE), Buffalo Wild Wings(BWLD), XM Satellite Radio(XMSR), Marsh & McLennan(MMC), Omnicom Group(OMC), Blackstone Group(BX), Molson coors(TAP), XTO Energy(XTO), Cephalon(CEPH), Masco Corp.(MAS), Applied Materials(AMAT)
Wed. – Dean Foods(DF), MGIC Investments(MTG), Coca-Cola(KO), Grubb & Ellis(GBE), PF Chang’s(PFCB), First Solar(FSLR), Agilent(A), Advance Auto Parts(AAP), Nvidia Corp.(NVDA), Vulcan Materials(VMC), Ingram Micro(IM), Bidu.com(BIDU), Network Appliance(NTAP), Jones Apparel(JNY), Titanium Metals(TIE), Mohawk Industries(MHK), Deere & Co.(DE), Wellcare(WCG), Genzyme(GENZ)
Thur. – Foundation Coal(FCL), Mack-
Fri. – Abercrombie(ANF), Barnes Group(B), Campbell Soup(CPB), Hormel Foods(HRL), JM Smucker(SJM), Radian Group(RDN)
Other events that have market-moving potential this week include:
Mon. – (COT) analyst meeting, (MSFT) financial analyst briefing, (LVS) investor conference, Goldman Sachs Small/Mid-cap Financial Services Symposium, BIO CEO & Investor Conference, Lehman Brothers Industrial Select Conference, UBS Global Healthcare Services Conference, Citigroup Retail Conference, GSMA Mobile World Congress
Tue. – (DRI) analyst meeting, (ERTS) analyst meeting, UBS Global Healthcare Services Conference, Lehman Brothers Industrial Select Conference, BIO CEO & Investor Conference, Goldman Sachs Ag Conference, Citigroup Retail Conference, Merrill Lynch Insurance Investors Conference
Wed. – CSFB Software Conference
Thur. – (SE) analyst meeting, (PNX) investor day
Fri. – (KMT) analyst meeting
Friday, February 08, 2008
Weekly Scoreboard*
Indices
S&P 500 1,331.29 -4.6%
DJIA 12,182.13 -4.4%
NASDAQ 2,304.85 -4.5%
Russell 2000 698.90 -4.3%
Wilshire 5000 13,424.80 -4.4%
Russell 1000 Growth 549.32 -3.83%
Russell 1000 Value 733.21 -5.2%
Morgan Stanley Consumer 681.70 -2.26%
Morgan Stanley Cyclical 930.3 -5.5%
Morgan Stanley Technology 531.62 -5.2%
Transports 4,711.67 -2.0%
Utilities 494.39 -3.1%
MSCI Emerging Markets 132.93 -3.9%
Sentiment/Internals
NYSE Cumulative A/D Line 59,290 -1.2%
Bloomberg New Highs-Lows Index -443
Bloomberg Crude Oil % Bulls 6.0 -70.0%
CFTC Oil Large Speculative Longs 205,649 -2.9%
Total Put/Call 1.13 +37.8%
NYSE Arms 1.2 +71.4%
Volatility(VIX) 28.0 +16.6%
ISE Sentiment 94.0 -24.8%
AAII % Bulls 34.1 +13.4%
AAII % Bears 47.2 -3.4%
Futures Spot Prices
Crude Oil 91.7 +3.3%
Reformulated Gasoline 235.40 +3.3%
Natural Gas 8.26 +7.1%
Heating Oil 255.35 +4.1%
Gold 926.50 +1.7%
Base Metals 237.04 +.9%
Copper 351.6 +7.2%
Economy
10-year US Treasury Yield 3.64% +6 basis points
4-Wk MA of Jobless Claims 335,000 +2.6%
Average 30-year Mortgage Rate 5.67% -1 basis point
Weekly Mortgage Applications 1,086,600 +3.0%
Weekly Retail Sales +.5%
Nationwide Gas $2.97/gallon -.02/gallon.
US Heating Demand Next 7 Days 5% below normal
ECRI Weekly Leading Economic Index 133.5 +1.8%
US Dollar Index 76.65 +1.6%
CRB Index 375.67 +3.1%
Best Performing Style
Large-cap Growth -3.8%
Worst Performing Style
Large-cap Value -5.2%
Leading Sectors
Airlines -.26%
Medical Equipment -1.2%
Oil Service -1.4%
Restaurants -1.7%
Steel -1.9%
Lagging Sectors
REITs -7.3%
Construction -7.7%
I-Banks -8.1%
Banks -8.4%
Homebuilders -10.7%
Stocks Mostly Lower into Final Hour on Jump in Energy Prices
BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Internet longs, Computer longs, Medical longs, Software longs and Retail longs. I have not traded today, thus leaving the Portfolio 75% net long. The overall tone of the market is mildly negative as the advance/decline line is slightly lower, sector performance is mixed and volume is above average. Investor anxiety is high again. Today’s overall market action is neutral. The VIX is rising 2.7% today to a high 28.40. The ISE Sentiment Index is a low 88.0 and the total put/call hit a high 1.27 this morning. Growth stocks are substantially outperforming value stocks today, with many positing meaningful gains. I suspect another significant rotation is underway. As well, many market leading stocks are firm to higher. This is much healthier, in my opinion, than seeing the most heavily-shorted and beaten up stocks lead the broad market. OPEC’s talk of production cuts, with oil near record highs, and abandoning the US dollar is mind-bogglingly short-sighted, in my opinion, and just raises the odds for an oil price crash in the future. This is likely one of the main reasons energy-related stocks aren’t displaying more upside with oil back above $90/bbl. Moreover, oil at current prices makes it harder for the Fed to maintain its aggressive stance, thus increasing the odds of a more meaningful global slowdown. The 10-year yield is falling 11 basis points today. I expect better economic data over the coming weeks and diminishing bond insurer uncertainty to provide upside catalysts from current levels. (GOOG) is rising for the third day out of the last four. I still think the shares anywhere near current prices are providing investors with an excellent entry point as growth remains very healthy and the p/e multiple begins expanding again. Nikkei futures indicate a -42 open in Japan and DAX futures indicate a +7 open in Germany
Today's Headlines
Bloomberg:
- Bear Stearns(BSC), the US firm that posted its first-ever loss last quarter on mortgage writedowns, is betting more than $1 billion that subprime home loans and bonds will continue to decline.
- Copper is rising another 2.4%, heading for its biggest weekly gain since May 2006, as inventories fell to the lowest level in more than three months.
- Oil is rising $3.41/bbl. to $91.44/bbl. after OPEC said it may cut oil production despite the fact that record prices for the commodity are greatly contributing to the global economic slowdown and that it may abandon the US dollar for the euro in pricing oil.
- Amazon.com(AMZN) posted its biggest two-day gain since November after saying it plans to buy back as much as $1 billion of stock in the next two years.
- Google Inc.(GOOG) hasn’t received formal objections from EU regulators about its proposed $3.1 billion purchase of DoubleClick(DCLK), indicating the EU is close to approving the deal.
- McDonald’s(MCD), the world’s largest restaurant company said comparable-store sales at US outlets rose 1.9%, more than the 1.5% increase it had previously forecast.
- OPEC may cut crude production when it meets next month to keep the price near record levels.
Wall Street Journal:
- Internet Logjams Spur Cable Boom. Seven years after a telecom boom and bust created a glut of fiber optical cable and destroyed $2 trillion in stock-market wealth, another building binge is on.
- Retailers in the US are turning to the Internet to sell to shoppers abroad in hopes of easing the pain of an economic slowdown at home.
- Toyota Motor(TM) is offering 7-year loans on new cars to help dealers boost sales.
- Now that the excitement of Super Tuesday has passed, we should remember the kinds of policies and principles at stake, Exhibit A: three pieces of legislation pending in Congress that would dramatically increase the liability of private companies for alleged acts of employment discrimination.
NY Times:
- Seattle Becomes New Destination for Venture Capital.
CNBC:
- An agreement for a bailout of bond insurers Ambac Financial(ABK) and FGIC Corp. might be reached as early as next week.
Social Science Research Network:
- Do Hedge Funds Profit from Mutual-Fund Distress?
CNNMoney.com:
- Unusual Perks: Goldman Sachs’(GS) Health Insurance Covers Sex Changes.
Dagens Naeringsliv:
-
Xinhua:
- Chinese mobile phone users are expected to send a record 17 billion text messages during the Lunar New Year holiday, citing government forecasts.
Bear Radar
Style Underperformer:
Large-cap Value (-1.61%)
Sector Underperformers:
Banks (-3.42%), Airlines (-2.85%) and HMOs (-2.78%)
Stocks Falling on Unusual Volume:
Wholesale Inventories Rise
- Wholesale Inventories for December rose 1.1% versus estimates of a .3% gain and an upwardly revised .8% increase in November.
Bull Radar
Style Outperformer:
Mid-cap Growth (+.78%)
Sector Outperformers:
Construction (+3.35%), Restaurants (+1.77%) and Software (+1.56%)
Stocks Rising on Unusual Volume:
Links of Interest
Market Snapshot Commentary
Market Performance Summary
Style Performance
Sector Performance
WSJ Data Center
Top 20 Biz Stories
IBD Breaking News
Movers & Shakers
Upgrades/Downgrades
In Play
NYSE Unusual Volume
NASDAQ Unusual Volume
Hot Spots
Option Dragon
NASDAQ 100 Heatmap
DJIA Quick Charts
Chart Toppers
Intraday Chart/Quote
Dow Jones Hedge Fund Indexes
Thursday, February 07, 2008
Friday Watch
Late-Night Headlines
Bloomberg:
- The euro headed for the biggest weekly decline in 1 ½ years against the dollar after European Central Bank President Trichet signaled he’s open to cutting interest rates as economic growth slows.
- The rebound in the dollar foreseen by UBS AG, BNP Paribas SA and Deutsche Bank AG is gaining momentum.
- Freddie Mac’s(FRE) losses from mortgage defaults may hit bottom by the end of the year as the housing recovery, CEO Richard Syron said today.
- The US Senate approved a $151 billion economic stimulus measure that will send tax rebates to more than 100 million US households.
- US economic growth is poised to return to its long-term trend in the second half of the year following aggressive interest –rate cuts, said Federal Reserve Bank of Dallas President Richard Fisher.
- OPEC may cut crude production when it meets next month to keep the price above $80 a barrel, oil ministry officials from four of the group’s nations said.
- Cognizant Technology(CTSH) said quarterly revenue rose 41% from year ago levels. The shares surged 13% in extended trading.
- Intermec(IN) reported revenues rose 16% over year ago levels. The shares rose 7.4% in after-hours trading.
- BMC Software(BMC) reported revenues exceeded the high end of guidance, rising 11% from year ago levels. The stock gained 4% in extended trading.
- CF Industries(CF) said net sales rose 62% from year ago levels. The shares jumped 7% in after-hours trading.
- MBIA Inc.(MBI) raised $1 billion by selling shares at $12.15 each in an effort to protect its AAA insurance rating. The stock fell 8.4% in extended trading.
MarketWatch.com:
- Hedge funds had their worst month since the dot-com bust. Fed rate cuts may have made things worse as heavily shorted stocks rallied.
IBD:
- Handhelds Become Instant Hit For Maker Of Ultrasound Devices.
- HR Software Online Rising.
Gizmodo:
- Google(GOOG) Phone Prototype to Be Shown Next Week at Mobile World Congress.
- Corporate cafeterias go the green, healthy route.
- It’s not just Clinton, Obama and McCain stressing over the presidential election. Wall Street is, too.
Reuters:
- Three former El Paso(EP) natural gas traders were convicted on Thursday of reporting false deals to manipulate gas prices from 2000-2002.
Financial Times:
- China Investment Corporation, the Chinese sovereign wealth fund, is close to an agreement with JC Flowers, the US pirate equity group, to put about $4 billion into a new fund to invest in ailing financial institutions.
- US and Italian police arrested more than 70 Mafia suspects in NY and Sicily on Thursday, decapitating the second largest crime family in the US and thwarting plans by a new generation of organized crime bosses to re-establish a transatlantic axis.
Late Buy/Sell Recommendations
Citigroup:
- Maintained Buy on (WW), target $62.
- Reiterated Buy on (ARW), raised target to $50..
- Reiterated Buy on (EXPE), target $38.
- Maintained Buy on (MDTH), target $40.
- Maintained Buy on (COV), target $52.
- Maintained Buy on (IP), target $40.
- Reiterated Buy on (CF), target $139.
Night Trading
Asian Indices are -.50% to +.75% on average.
S&P 500 futures -.03%.
NASDAQ 100 futures -.07%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
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Earnings of Note
Company/EPS Estimate
- (ALU)/.14
- (BEC)/1.03
- (CVH)/1.18
- (FNM)/-1.29
- (SKYW)/.64
- (WY)/.34
Upcoming Splits
- None of note
Economic Releases
10:00 am EST
- Wholesale Inventories for December are estimated to rise .3% versus a .6% gain in November.
Other Potential Market Movers
- The Fed’s Lockhart speaking, Fed’s Pianalto speaking, Fed’s Yellen speaking, (GLW) investor meeting, (STJ) analyst meeting and CSFB Energy Conference could also impact trading today.
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