Market Snapshot
Detailed Market Summary
Quick Summary
Economic Commentary
Movers & Shakers
Today in IBD
NYSE OrderTrac
I-Watch Sector Overview
NYSE Unusual Volume
NASDAQ Unusual Volume
Hot Spots
NASDAQ 100 Heatmap
DJIA Quick Charts
Chart Toppers
Option Dragon
Intraday Chart/Quote
Tuesday, February 13, 2007
Monday, February 12, 2007
Tuesday Watch
Late-Night Headlines
Bloomberg:
- 3M(MMM) will buy back up to $7 billion of its shares over the next two years.
- Japan’s producer prices rose at the slowest pace in more than a year in January as oil costs fell, easing pressure on companies to pass expenses on to consumers.
- Goldman Sachs(GS) and Kelso & Co. plan to sell up to $300 million of shares in CVR Energy, a Kansas oil refiner.
- Scientists, aiming to spur the search for new therapies for diabetes, finished a map of differences in human genes related to the most common form of the disease.
- Copper futures in Shanghai fell as global inventories of the metal remain near their highest since June 2004, fueling concern that supplies are still outpacing demand.
- A Palestinian unity government formed by the Hamas and Fatah organizations must recognize Israel and commit itself to non-violence, said UN Secretary-General Ban Ki-moon.
Wall Street Journal:
- Liberty Media Corp. is close to buying the Atlanta Braves baseball team from Time Warner(TWX).
Financial Times:
- Investors such as KBC Alpha Asset Management are shunning China-focused hedge funds over concerns they may be engaged in unlicensed trading in the country. KBC and Tokyo-based Sparx Asset Management have decided not to invest in several top-performing “Greater China” funds based on their in-house analysis and external legal advice.
London-based Times:
- BHP Billiton Ltd.(BHP) and Rio Tinto Plc(RTP) have each drawn up plans for a $40 billion takeover of Alcoa Inc.(AA), the world’s largest aluminum producer.
Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (QCOM), target $55.
- Upgraded (SPH) to Buy, raised target to $45.50.
Night Trading
Asian Indices are -.25% to +.25% on average.
S&P 500 indicated +.06%.
NASDAQ 100 indicated +.07%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Conference Calendar
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/EPS Estimate
- (ACS)/.79
- (MDRX)/.13
- (ALTR)/.24
- (AMAT)/.28
- (CEN)/.33
- (CCE)/.16
- (EXPD)/.31
- (IVGN)/.74
- (KBH)/-1.01
- (MRD)/.58
- (MMC)/.36
- (MET)/1.18
- (NDAQ)/.25
- (NVDA)/.41
- (OMC)/1.61
- (WYN)/.41
- (XTO)/1.12
Upcoming Splits
- None of note
Economic Releases
8:30 am EST
- The Trade Deficit for December is estimated to widen to -$59.7 billion versus -$58.2 billion in November.
Bloomberg:
- 3M(MMM) will buy back up to $7 billion of its shares over the next two years.
- Japan’s producer prices rose at the slowest pace in more than a year in January as oil costs fell, easing pressure on companies to pass expenses on to consumers.
- Goldman Sachs(GS) and Kelso & Co. plan to sell up to $300 million of shares in CVR Energy, a Kansas oil refiner.
- Scientists, aiming to spur the search for new therapies for diabetes, finished a map of differences in human genes related to the most common form of the disease.
- Copper futures in Shanghai fell as global inventories of the metal remain near their highest since June 2004, fueling concern that supplies are still outpacing demand.
- A Palestinian unity government formed by the Hamas and Fatah organizations must recognize Israel and commit itself to non-violence, said UN Secretary-General Ban Ki-moon.
Wall Street Journal:
- Liberty Media Corp. is close to buying the Atlanta Braves baseball team from Time Warner(TWX).
Financial Times:
- Investors such as KBC Alpha Asset Management are shunning China-focused hedge funds over concerns they may be engaged in unlicensed trading in the country. KBC and Tokyo-based Sparx Asset Management have decided not to invest in several top-performing “Greater China” funds based on their in-house analysis and external legal advice.
London-based Times:
- BHP Billiton Ltd.(BHP) and Rio Tinto Plc(RTP) have each drawn up plans for a $40 billion takeover of Alcoa Inc.(AA), the world’s largest aluminum producer.
Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (QCOM), target $55.
- Upgraded (SPH) to Buy, raised target to $45.50.
Night Trading
Asian Indices are -.25% to +.25% on average.
S&P 500 indicated +.06%.
NASDAQ 100 indicated +.07%.
Morning Preview
US AM Market Call
NASDAQ 100 Pre-Market Indicator/Heat Map
Pre-market Commentary
Before the Bell CNBC Video(bottom right)
Global Commentary
Asian Indices
European Indices
Top 20 Business Stories
In Play
Bond Ticker
Conference Calendar
Daily Stock Events
Macro Calls
Rasmussen Consumer/Investor Daily Indices
CNBC Guest Schedule
Earnings of Note
Company/EPS Estimate
- (ACS)/.79
- (MDRX)/.13
- (ALTR)/.24
- (AMAT)/.28
- (CEN)/.33
- (CCE)/.16
- (EXPD)/.31
- (IVGN)/.74
- (KBH)/-1.01
- (MRD)/.58
- (MMC)/.36
- (MET)/1.18
- (NDAQ)/.25
- (NVDA)/.41
- (OMC)/1.61
- (WYN)/.41
- (XTO)/1.12
Upcoming Splits
- None of note
Economic Releases
8:30 am EST
- The Trade Deficit for December is estimated to widen to -$59.7 billion versus -$58.2 billion in November.
BOTTOM LINE: Asian indices are mostly higher, boosted by financial shares in the region. I expect US equities to open modestly higher and to weaken into the afternoon, finishing modestly mixed. The Portfolio is 75% net long heading into the day.
Stocks Finish Modestly Lower on Profit-taking
Indices
S&P 500 1,433.37 -.33%
DJIA 12,552.55 -.22%
NASDAQ 2,450.38 -.38%
Russell 2000 805.79 -.16%
Wilshire 5000 14,447.69 -.36%
Russell 1000 Growth 564.78 -.40%
Russell 1000 Value 826.74 -.35%
Morgan Stanley Consumer 704.22 -.14%
Morgan Stanley Cyclical 937.36 -.09%
Morgan Stanley Technology 570.57 -.40%
Transports 4,937.93 -.40%
Utilities 473.12 -.09%
MSCI Emerging Markets 113.99 -1.09%
Sentiment/Internals
Total Put/Call 1.16 +24.73%
NYSE Arms 1.11 -7.09%
Volatility(VIX) 11.61 +4.59%
ISE Sentiment 126.0 +13.5%
Futures Spot Prices
Crude Oil 57.64 -3.76%
Reformulated Gasoline 154.65 -4.23%
Natural Gas 7.27 -7.19%
Heating Oil 164.10 -4.88%
Gold 666.30 -.89%
Base Metals 218.58 +.12%
Copper 248.10 -1.57%
Economy
10-year US Treasury Yield 4.80% +2 basis points
US Dollar 85.13 +.29%
CRB Index 299.69 -1.80%
Leading Sectors
Airlines +1.09%
HMOs +.67%
Computer Hardware +.42%
Lagging Sectors
Oil Service -1.38%
Gaming -1.41%
REITs -1.89%
Evening Review
Detailed Market Summary
Market Gauges
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Economic Calendar
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play
Afternoon Recommendations
RBC Capital Markets:
- Upgraded (CCI) to Sector Outperform, raised target to $40.
Afternoon/Evening Headlines
Bloomberg:
- Crude oil plunged below $58/bbl. in NY after Saudi Arabia told Asian refiners to expect more shipments next month and the nation’s oil minister said OPEC has no need to further rein in production.
- Latin American shares fell for a fourth session, led by Mexican cement-maker Cemex SAB, after Citigroup analysts said “euphoria” had driven prices to high.
- Gold prices in NY fell after the US dollar strengthened, reducing the metal’s appeal as an inflation hedge.
- Negotiators produced a draft accord early today aimed at ending North Korea’s nuclear-bomb program, the chief US negotiator, Christopher Hill, said in Beijing.
- Onyx Pharmaceuticals Inc.’s(ONXX) shares doubled after the company said its only drug, Nexavar, helped patients with liver cancer stay alive longer.
- Caremark RX(CMX) shareholders should vote against CVS Corp.’s(CVS) offer to buy the company for $23.1 billion, investor advisory firm Institutional Shareholder Services said.
Handelsblatt:
- Over a third of German companies plan to increase spending this year, compared with less than 7% which may cut investment, citing a survey by polling company Psephos.
S&P 500 1,433.37 -.33%
DJIA 12,552.55 -.22%
NASDAQ 2,450.38 -.38%
Russell 2000 805.79 -.16%
Wilshire 5000 14,447.69 -.36%
Russell 1000 Growth 564.78 -.40%
Russell 1000 Value 826.74 -.35%
Morgan Stanley Consumer 704.22 -.14%
Morgan Stanley Cyclical 937.36 -.09%
Morgan Stanley Technology 570.57 -.40%
Transports 4,937.93 -.40%
Utilities 473.12 -.09%
MSCI Emerging Markets 113.99 -1.09%
Sentiment/Internals
Total Put/Call 1.16 +24.73%
NYSE Arms 1.11 -7.09%
Volatility(VIX) 11.61 +4.59%
ISE Sentiment 126.0 +13.5%
Futures Spot Prices
Crude Oil 57.64 -3.76%
Reformulated Gasoline 154.65 -4.23%
Natural Gas 7.27 -7.19%
Heating Oil 164.10 -4.88%
Gold 666.30 -.89%
Base Metals 218.58 +.12%
Copper 248.10 -1.57%
Economy
10-year US Treasury Yield 4.80% +2 basis points
US Dollar 85.13 +.29%
CRB Index 299.69 -1.80%
Leading Sectors
Airlines +1.09%
HMOs +.67%
Computer Hardware +.42%
Lagging Sectors
Oil Service -1.38%
Gaming -1.41%
REITs -1.89%
Evening Review
Detailed Market Summary
Market Gauges
Daily ETF Performance
Style Performance
Market Wrap CNBC Video(bottom right)
S&P 500 Gallery View
Economic Calendar
Timely Economic Charts
GuruFocus.com
PM Market Call
After-hours Movers
Real-time/After-hours Stock Quote
In Play
Afternoon Recommendations
RBC Capital Markets:
- Upgraded (CCI) to Sector Outperform, raised target to $40.
Afternoon/Evening Headlines
Bloomberg:
- Crude oil plunged below $58/bbl. in NY after Saudi Arabia told Asian refiners to expect more shipments next month and the nation’s oil minister said OPEC has no need to further rein in production.
- Latin American shares fell for a fourth session, led by Mexican cement-maker Cemex SAB, after Citigroup analysts said “euphoria” had driven prices to high.
- Gold prices in NY fell after the US dollar strengthened, reducing the metal’s appeal as an inflation hedge.
- Negotiators produced a draft accord early today aimed at ending North Korea’s nuclear-bomb program, the chief US negotiator, Christopher Hill, said in Beijing.
- Onyx Pharmaceuticals Inc.’s(ONXX) shares doubled after the company said its only drug, Nexavar, helped patients with liver cancer stay alive longer.
- Caremark RX(CMX) shareholders should vote against CVS Corp.’s(CVS) offer to buy the company for $23.1 billion, investor advisory firm Institutional Shareholder Services said.
Handelsblatt:
- Over a third of German companies plan to increase spending this year, compared with less than 7% which may cut investment, citing a survey by polling company Psephos.
BOTTOM LINE: The Portfolio finished slightly lower today on losses in my Semi longs and Telecom longs. I did not trade in the final hour, thus leaving the Portfolio 75% net long. The tone of the market was modestly negative today as the advance/decline line finished slightly lower, most sectors declined and volume was about average. Measures of investor anxiety were mostly higher into the close. Today's overall market action was mildly bearish. However, breadth wasn't too bad and ten sectors I follow actually rose. Meaningful losses were mainly confined to the REIT, I-banking, Energy and Gaming sectors. Oil is down $2.08/bbl. and failed to mount any sort of rally throughout the day. I continue to believe that almost all investors, both market bulls and bears, believe oil will remain high indefinitely. I still suspect a fall in oil below $50/bbl. will be a seminal event with respect to investor psychology this year. The U.S. budget surplus widened again in January on a 13% year-over-year surge in revenues as a result of the "bulletproof US economy." The U.S. Dollar Index is very close to another technical breakout to the upside. A breakout in the dollar would be another negative for commodities.
Stocks Modestly Lower into Final Hour on Profit-taking
BOTTOM LINE: The Portfolio is slightly lower into the final hour on losses in my Semi longs and Telecom longs. I added to my Google(GOOG) long and took some profits in another long today, thus leaving the Portfolio 75% net long. The tone of the market is negative as the advance/decline line is lower, most sectors are declining and volume is above-average. Theflyonthewall.com is pointing to a post on AppleInsider, suggesting that Apple (AAPL) could see as much as $250-$300 for each subscriber it helps lure to Cingular's network. This would meaningfully boost margins and result in a substantial round of upward earnings estimate revisions for the stock. I remain long the stock. I expect US stocks to trade mixed into the close from current levels as falling energy prices offsets profit-taking.
Today's Headlines
Bloomberg:
- Crude oil fell $2/bbl. to below $58/bbl. in NY after Saudi Arabia told Asian refiners to expect more shipments next month and the nation’s oil minister said OPEC has no need to further rein in production.
- The price of prime London homes rose at the fastest pace in at least 31 years last month as wealthy European, Indian and Middle Eastern buyers competed for houses and apartments in Belgravia and Knightsbridge.
- Envoys in Beijing trying to prevent a collapse in talks on ending North Korea’s nuclear arms program may come to an agreement on the secluded state’s demand for energy assistance that has stymied the negotiations.
- Home Depot(HD) may sell its wholesale unit after investors said the company should get rid of the division because of its low profits.
- Tenaris SA, the world’s largest maker of seamless steel in oil and gas pipes, agreed to buy Hydril(HYDL) for as much as $2.2 billion to gain valves, meters and related equipment used in deepwater drilling and nature reserves.
- Four Seasons Hotels Inc.(FS) agreed to be taken private by Microsoft(MSFT) Chairman Bill Gates, Saudi Prince Alwaleed Bin Talal and the company’s CEO for $3.8 billion including debt.
- The French oil-exploration company Etablissements Maurel & Prom said it made a “significant” discovery in Colombia.
- Gold is falling $7/oz. as the US Dollar Index nears a technical breakout and oil prices fall, leading to diminished inflation worries by speculators.
- The world’s largest funds investing in hedge funds attracted more than twice as much new capital last year as in 2005 while the assets they control rose to $820 billion, a survey found. Funds of hedge funds returned 10% on average last year, substantially underperforming the S&P 500’s 15.8% gain and less than the average gain of 13% for hedge funds, according to Hedge Fund Research.
Wall Street Journal:
- Blackstone Group LP(BLK) leveraged buyout firm may today buy Pinnacle Foods Corp., maker of Duncan Hines cake mixes and Mrs. Paul’s frozen fish, for about $1.2 billion plus an assumption of $900 million in debt.
- Continental Western European countries’ economies may be held back by a culture that attempts to protect workers and the community from market forces over innovation, Nobel prizewinner Edmund Phelps said. Employment in France, Germany and Italy has lagged behind the US, Britain, Ireland and Canada, and productivity is growing more slowly than in the US.
- Tribune Co.(TRB) is considering forgoing outside offers and doing its own restructuring.
- US productivity gains are likely to continue for the indefinite future, citing the annual Economic Report of the President.
- Google(GOOG) has signed an agreement to bring full-length episodes of old television shows such as “I Spy” and “Gumby” to its YouTube video-sharing site.
Fortune:
- Chicago may sell Midway International Airport for as much as $3 billion, citing the city’s CFO.
Vedomosti:
- Wal-Mart Stores(WMT) is considering some of Russia’s largest retail chains as partners to expand in the region.
Folha de S. Paulo:
- Brazil, the world’s biggest producer of ethanol from sugarcane juice, may develop technology to make the biofuel from the tropical plant’s cellulose as early as 2009. Waste from the processing of cane juice into sugar and ethanol contains enough cellulose to boost output of the biofuel by 50%, citing researcher Carlos Rossell of the Univ. of Campinas. Rossell said Brazil can start commercial production of ethanol from sugarcane cellulose in two to five years.
- Crude oil fell $2/bbl. to below $58/bbl. in NY after Saudi Arabia told Asian refiners to expect more shipments next month and the nation’s oil minister said OPEC has no need to further rein in production.
- The price of prime London homes rose at the fastest pace in at least 31 years last month as wealthy European, Indian and Middle Eastern buyers competed for houses and apartments in Belgravia and Knightsbridge.
- Envoys in Beijing trying to prevent a collapse in talks on ending North Korea’s nuclear arms program may come to an agreement on the secluded state’s demand for energy assistance that has stymied the negotiations.
- Home Depot(HD) may sell its wholesale unit after investors said the company should get rid of the division because of its low profits.
- Tenaris SA, the world’s largest maker of seamless steel in oil and gas pipes, agreed to buy Hydril(HYDL) for as much as $2.2 billion to gain valves, meters and related equipment used in deepwater drilling and nature reserves.
- Four Seasons Hotels Inc.(FS) agreed to be taken private by Microsoft(MSFT) Chairman Bill Gates, Saudi Prince Alwaleed Bin Talal and the company’s CEO for $3.8 billion including debt.
- The French oil-exploration company Etablissements Maurel & Prom said it made a “significant” discovery in Colombia.
- Gold is falling $7/oz. as the US Dollar Index nears a technical breakout and oil prices fall, leading to diminished inflation worries by speculators.
- The world’s largest funds investing in hedge funds attracted more than twice as much new capital last year as in 2005 while the assets they control rose to $820 billion, a survey found. Funds of hedge funds returned 10% on average last year, substantially underperforming the S&P 500’s 15.8% gain and less than the average gain of 13% for hedge funds, according to Hedge Fund Research.
Wall Street Journal:
- Blackstone Group LP(BLK) leveraged buyout firm may today buy Pinnacle Foods Corp., maker of Duncan Hines cake mixes and Mrs. Paul’s frozen fish, for about $1.2 billion plus an assumption of $900 million in debt.
- Continental Western European countries’ economies may be held back by a culture that attempts to protect workers and the community from market forces over innovation, Nobel prizewinner Edmund Phelps said. Employment in France, Germany and Italy has lagged behind the US, Britain, Ireland and Canada, and productivity is growing more slowly than in the US.
- Tribune Co.(TRB) is considering forgoing outside offers and doing its own restructuring.
- US productivity gains are likely to continue for the indefinite future, citing the annual Economic Report of the President.
- Google(GOOG) has signed an agreement to bring full-length episodes of old television shows such as “I Spy” and “Gumby” to its YouTube video-sharing site.
Fortune:
- Chicago may sell Midway International Airport for as much as $3 billion, citing the city’s CFO.
Vedomosti:
- Wal-Mart Stores(WMT) is considering some of Russia’s largest retail chains as partners to expand in the region.
Folha de S. Paulo:
- Brazil, the world’s biggest producer of ethanol from sugarcane juice, may develop technology to make the biofuel from the tropical plant’s cellulose as early as 2009. Waste from the processing of cane juice into sugar and ethanol contains enough cellulose to boost output of the biofuel by 50%, citing researcher Carlos Rossell of the Univ. of Campinas. Rossell said Brazil can start commercial production of ethanol from sugarcane cellulose in two to five years.
Subscribe to:
Comments (Atom)