Bull Radar

Style Outperformer:

Large-cap Value (-.15%)

Sector Outperformers:

Steel (+1.27%), Energy (+1.16%) and Biotech (+.39%)

Stocks Rising on Unusual Volume:

ANL, LBY, WWE, SIE, EQIX, AMKR, STRA, FARO, ALXN, RBCN, VCLK, WABC, ASYS, BIDU, SDXC, CRVL, JRCC, CMCSA, TDSC, OCNF, NAVG, SPWR, FSLR, GTIV, COG, AWC, CCJ, TWC, EQIX, CN, BRKS, ITT and NVS

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
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NASDAQ 100 Heatmap
DJIA Quick Charts
Chart Toppers
Intraday Chart/Quote
Dow Jones Hedge Fund Indexes

Thursday Watch

Late-Night Headlines
Bloomberg:
- Japan’s economy grew 3.7% last quarter, twice the forecast, as exports to Asia and emerging markets helped companies weather the US slowdown.
- Yahoo Inc.(YHOO), which rejected a $44.6 billion bid from Microsoft(MSFT) two days ago, sent a letter to shareholders defending the decision. The offer “substantially undervalues” the company, said Yahoo, which projects the online advertising market to grow to $75 billion by 2010.
- Morgan Stanley(MS) recommended investors scrap bets on the yen rising and buy the Australian dollar, because too many speculators are betting on Japan’s currency strengthening. Futures traders increased their bets to the highest since February 2004 that the yen will strengthen, the CFTC showed recently.
- Baidu.com Inc.(BIDU), operator of China's most used Internet search site, reported profit and sales that topped analysts' estimates after new services helped win users from rival Yahoo! Inc.(YHOO) The shares rose 7.2% in extended trading.
- ValueClick(VCLK) announced fourth quarter revenue rose 14% from year ago levels, exceeding previously issued guidance. The share jumped 7.7% in after-hours trading.
- Equininx(EQIX) reported fourth quarter revenue rose 46% from year-ago levels and boosted 2008 guidance. The stock gained 7.1% in extended trading.
- US Secretary of State Condoleezza Rice said Russian threats toward Ukraine are “unacceptable” and President Vladimir Putin’s government should know it can no longer intimidate former Soviet republics.
- News Corp.(NWS/A), Yahoo(YHOO) in Talks Over Combination, WSJ says.
- Billionaire Nelson Peltz’s Trian hedge funds disclosed a stake in restaurant chain Cheesecake Factory(CAKE). Trian owns 3.46 million shares, or just under 5%, of the casual dining chain, according to regulatory filings made today.
- Wachovia Corp.(WB), the fourth-largest US bank by assets, said investors are exaggerating concern about the company’s home loan defaults as lower interest rates reduce pressure on borrowers. Mortgages still contribute “significant profits” at the Charlotte, North Carolina-based bank and will continue making money even if losses from bad loans quadruple from current levels, Chief Risk Officer Donald Truslow said in a conference call. Lower interest rates are curbing payment increases on adjustable-rate mortgages, which will reduce delinquencies and charge-offs, Truslow said.
- Wheat growers in Australia, the world’s sixth-largest exporter of the commodity, may plant their biggest crop ever to benefit from record prices and improved growing conditions.
- MBIA Completes $1 Billion Common Stock Offering. Shares rise 4.5% in after-hours trading.

MarketWatch.com:
- Soaring and volatile prices took their toll on demand for gold in the fourth quarter, particularly in the jewelry and retail-investment sectors, an industry report said Wednesday.

CNBC.com:
- Tech Stock Renaissance: What to Buy.
- Treasury’s Paulson Gives Timeframe on Rebate Checks. US Treasury Secretary Henry Paulson on Wednesday repeated his view that the US economy will avoid recession this year and grow at a slower pace, and that the Treasury will act quickly to distribute tax rebate payments.

NY Times:
- Genetically engineered agriculture is spreading worldwide, and its biggest growth in 2007 was in the developing world.

SmartMoney.com:
- Clothing Chain Aeropostale(ARO) Popular With Teens, Investors.
- Stocks to Help You Save the Planet and Make Money.
- In Surprise, Small-Cap Profits Beating Big Caps.

USA Today.com:
- Google(GOOG) Apps can be a small firm’s best friend. Google doggedly pursues Microsoft’s(MSFT) Office business.
- President Bush, flanked by Congressional leaders of both parties, signed a $168 million economic stimulus package Wednesday that he called “a booster shot for our economy.” The package, aimed at heading off a serious downturn in the economy, will send rebate checks ranging from $300 to $1,200 to 130 million Americans. It also provides tax breaks for businesses.

Reuters:
- MBIA Inc.(MBI), the world’s biggest bond insurer, plans to tell a congressional panel tomorrow that regulators should limit the actions and statements of short sellers, citing a copy of written testimony. The prepared testimony said short sellers’ “unscrupulous and dangerous market manipulation” and their spreading of “half-truths and misleading information” should be curbed. Short sellers like Bill Ackman, founder of Pershing Square Capital Management, have worked hard to undermine market confidence in the bond insurers, wrote MBIA. MBIA said lawmakers should help restore confidence in the bond insurers, because their failure could have far-reaching effects on the US and global economies.
- Bookseller Borders Group(BGP) unveiled a new concept on Wednesday – a store where shoppers can mix and burn CDs, explore their genealogies and even publish their own novels.
- Morgan Stanley(MS) and Bear Stearns(BSC) issued the first commercial mortgage-backed securities deal of the year on Wednesday after agreeing to sweeten yields on a $1.2 billion issue.
- Hedge fund ups Countrywide(CFC) stake, attacks merger.

Financial Times:
- A Singapore sovereign wealth fund is expected to be the lead investor in a $6 billion fund that TPG, the private equity firm, is raising to invest in troubled financial firms.

TimesOnline:
- Google(GOOG) triggers handset battle over Gphone.

Business Standard:
- Air India, Jet Plan to Buy 60 Boeings.

Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (VCLK), target $30.
- Reiterated Buy on (CHKP), target $29.
- Reiterated Buy on (URBN), target $35.
- Reiterated Buy on (ANF), target $97.
- Maintained Buy on (DTV), target $30.
- Reiterated Buy on (ATI), target $100.
- Maintained Buy on (ERTS), target $69
- Reiterated Buy on (AGU), target $82
- Reiterated Buy on (HPQ), target $60.
- Reiterated Buy on (IGT), target $52.
- Upgraded (MDCO) to Buy, target $29.

Night Trading
Asian Indices are +.75% to +3.50% on average.
S&P 500 futures +.18%.
NASDAQ 100 futures +.38%.

Morning Preview
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Earnings of Note
Company/EPS Estimate
- (CMCSA)/.17
- (MAR)/.62
- (FCL)/.18
- (GT)/.45
- (CCU)/.43
- (CPKI)/.17
- (CMG)/.56
- (N)/-.01
- (BRCD)/.15
- (PCLN)/.84
- (APPB)/.27
- (CKFR)/.53
- (TASR)/.07
- (CKP)/.52
- (IR)/.99
- (PTEN)/.52

Upcoming Splits
- None of note

Economic Releases
8:30 am EST
- The Trade Deficit for December is estimated to shrink to -$61.5 billion versus -$63.1 billion in November.
- Initial Jobless Claims for this week are estimated to fall to 347K versus 356K the prior week.
- Continuing Claims are estimated to fall to 2759K versus 2785K prior.

Other Potential Market Movers
- The Fed’s Bernanke speaking, Fed’s Evans speaking, weekly EIA natural gas inventory data, (SE) analyst meeting, (PNX) investor day, CSFB Software Conference, BB&T Capital Markets Transport Services Conference and Deutsche Bank Small/Mid-cap Growth Conference could also impact trading today.

BOTTOM LINE: Asian indices are sharply higher, boosted by technology and financial stocks in the region. I expect US equities to open modestly higher and to maintain gains into the afternoon. The Portfolio is 100% net long heading into the day.

Stocks Finish at Session Highs, Boosted by Technology, Telecom, Energy Shares

Evening Review
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GuruFocus.com
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In Play

Stocks Surging into Final Hour on Less Economic Pessimism, Bargain-Hunting, Short-Covering

BOTTOM LINE: The Portfolio is higher into the final hour on gains in my Semi longs, Software longs, Computer longs, Medical longs and Biotech longs. I have not traded today, thus leaving the Portfolio 100% net long. The overall tone of the market is very positive as the advance/decline line is substantially higher, almost every sector is rising and volume is about average. Investor anxiety is above average. Today’s overall market action is very bullish. The VIX is falling 5% today, but remains high at 25.0. The ISE Sentiment Index hit a very depressed 48.0 and the total put/call hit an above-average 1.06 today. Growth stocks are substantially outperforming value stocks, with many posting huge gains relative to the broad market. Today’s overall market action is even more impressive considering there really isn’t any meaningfully positive news to account for the strong move in the major averages and financials began the day under duress. I suspect the large short/sell every rally crowd is beginning to get a bit worried by this action. The 10-year TIPS spread, a good gauge of inflation expectations, is falling 8 basis points today to 2.26%, which is down from 2.48% in late November. Inflation expectations remain muted and stable, despite the recent rebound in commodity prices. Fed fund futures now imply a 68.0% chance, down from 80.0% yesterday, for a 50 basis point rate cut at the upcoming meeting and a 32% chance for a 75 basis point cut, which is up from 20% yesterday. The US dollar is breaking out of its recent trading range versus the yen, which is also a positive. One of my longs I recently added to, (AMSC), is surging 8% today on strength in other alternative energy stocks and conference call comments. The company said its expects revenues to exceed $150M in FY08 and that it sees a huge growth opportunity in China’s power grid and it expects a lot more business in China in the future. This stock is volatile and high risk, but should be a huge winner long-term. Nikkei futures indicate an +270 open in Japan and DAX futures indicate a +70 open in Germany. I expect US stocks to trade mixed-to-higher into the close from current levels on bargain-hunting, less economic pessimsim and short-covering.

Today's Headlines

Bloomberg:
- First Solar(FSLR), the largest US maker of solar power-modules, said fourth-quarter profit rose almost eightfold on surging demand for its thin-film technology. First Solar shares are soaring 27% on the report.
- Students in the US are Becoming Better Prepared for College. Almost 30% more US public high school seniors passed at least one advanced placement exam in 2007, showing they’re better prepared for college than five years ago, the College Board said. About 15.2% of seniors scored 3 or better on a 5-point scale in at least one advanced placement exam, up from 11.7% in 2002, according to a report released today. The improved scores reflect growing efforts to prepare high school students for college and reduce the need for remedial courses. More than 3,600 of the world’s colleges and universities accept AP credit. The 3 score makes them “qualified” to receive college credit, though some colleges require a 4 to offer credit.
- Bethune of Global Insight Says US Economy Will Improve in Second Half. (video)
- The portion of newsletter writers who were bullish on stocks slid to 36.7% in the five days ended February 8 from 41.6%, the largest decline in almost five years, the NY-based Investors Intelligence said today.
- NY Attorney General Andrew Cuomo will sue UnitedHealth Group(UNH) and subpoena 16 other insurers to investigate reimbursement practices.
- Iraq Lawmakers, Sidelining Disputes, Pass Budget, Other Bills.
- Yen Falls as Gain in US Retail Sales Signals Continued Growth.
- OPEC may add 840,000 barrels a day to its oil production capacity this year, boosting the group’s available spare volumes, the International Energy Agency said.

Wall Street Journal:
- Norfolk, CSX Boost Spending to Improve Rail Lines.
- Iran Avoids Sanctions, Strengthens Ties With Neighbors.
- Hershey(HSY), Mars Offer Caffeinated Candy to Boost Sales.
- Big Clinton Fund-Raisers May Run Their Own Ads. Rich Backers Huddle With Lawyers to Help Cash-Strapped Effort.

CNBC:
- Turnaround specialist Wilbur Ross said Wednesday he does not expect Warren Buffett’s offer to reinsure $800 billion of municipal bond debt to succeed. “If it went through, it would be the best deal since the Dutch bought Manhattan Island from the Indians,” Ross said.

BusinessWeek:
- Rupert Murdoch’s New Startup Incubator. The SlingShot Labs venture is designed to spawn Internet startups for News Corp. and also likely to help MySpace compete with Facebook.

TechCrunch:
- Yahoo(YHOO) And News Corp.(NWS/A) Continue Marathon Discussions; Possible Bid To Counter Microsoft(MSFT).

Washington Post:
- Lawmakers and the American public should support US-Iraqi talks on establishing a “status of forces” agreement, Secretary of State Condoleezza Rice and Defense Secretary Robert Gates wrote. The agreement would include helping Iraqis fight al-Qaeda, developing security forces and stopping the flow of weapons from Iran, Rice and Gates wrote. The accord wouldn’t authorize permanent US bases there.

Financial Times:
- Google(GOOG) homes in on revenue from phones. Google on Wednesday said it had seen 50 times more searches on Apple’s(AAPL) iPhone than any other mobile handset, adding weight to the group’s confidence at being able to generate significant revenues from the mobile internet.

Actualidad Economica:
- Banco Santander SA, Spain’s biggest bank, would like a “significant position” in the US, CEO Alfredo Saenz said.

Asharq al-Awsat:
- Arab states approved a law giving them the power to cancel permits for Arab news channels that are deemed to broadcast offensive material. The law, which was adopted by all Arab states except Qatar, calls on Arab satellite channels to respect Arab tradition, leaders, religion and culture and has the power to ban channels, suspend their licenses and reject renewing their licenses.