Style Outperformer:
Mid-cap Growth (+.52%)
Sector Outperformers:
Computer Services (+1.87%), HMOs (+1.69%) and Construction (+1.63%)
Stocks Rising on Unusual Volume:
DNR, SFY, IMCL, SNY, QCOM, NMR, SF, KB, AVAV, KCAP, UTHR, GIII, FWLT, AMAG, CSGP, ZEUS, AAWW, BJRI, LRCX, RSCR, JOYG, STLD, FSLR, ABMD, ENER, TBSI, SIG, MYL, CVH, IRF and SF
Stocks With Unusual Call Option Activity:
1) KR 2) CVH 3) AU 4) BQI 5) XLNX
Late-Night Headlines
Bloomberg:
- U.S. commodity regulators may require Wall Street banks to regularly disclose their energy futures positions connected to the unregulated swaps market, according to people familiar with the discussions. The Commodity Futures Trading Commission has used special authority to collect trade data from firms amid political pressure to ensure that oil markets are not being manipulated. Congress has targeted oil speculators, including those offsetting swap trades, as driving up prices, though no legislation has emerged to deal with the complex energy market.
- Crude oil fell to a five-month low in New York as the Saudi Arabian and Venezuelan oil ministers signaled OPEC will maintain production levels at a meeting in Vienna, and as Hurricane Ike may bypass U.S. oil regions. Brent crude oil for October settlement declined $3.10, or 3 percent, to settle at $100.34 a barrel on London's ICE Futures Europe, the lowest settlement price since April 1. Futures touched $99.04, the lowest intraday price since March 25. The contract has dropped nine straight days, the longest stretch since 1988. OPEC raised quotas at a meeting in Jakarta in November 1997, just before Asian economies faltered. A combination of increased supply and falling demand sent prices tumbling to $10 a barrel the following year. Ramirez called for stricter compliance with production quotas to counter a potential gain in stockpiles in the first quarter next year. ``History has shown that if inventories rise above normal levels, we will have a price collapse,'' he said. ``The last thing OPEC wants is to see economies crater around the world,'' said Chip Hodge, a managing director at MFC Global Investment Management in Boston, who oversees a $4.5 billion energy-company bond portfolio. ``They want to see strong demand growth.''
- Texas Instruments Inc.(TXN), the second- largest U.S. semiconductor maker, maintained its sales forecast, defying predictions that slowing demand for mobile phones would crimp orders further. The shares jumped as much as 7.4 percent in after-hours trading.
- FedEx Corp.(FDX), the largest air-parcel shipper, said it will report a profit of $1.23 a share for the quarter ended Aug. 31, beating its forecast as fuel costs fell. The stock rose as much as 8.5 percent after regular trading.
- The U.K. economy is contracting for the first time in at least a decade, the National Institute for Economic and Social Research said.
- Brazil's benchmark stock index fell the most in six months, led by energy and metal producers, after commodity prices slumped and Finance Minister Guido Mantega said the nation's currency needs to weaken further to bolster exports. The ``dominant investment thesis of the past year'' of buying commodities and short-selling financial companies is over, wrote UBS chief economist Larry Hatheway and global equity strategist Jeffrey Palma in a research report, cutting energy producers to ``underweight.'' ``The drop in the trade surplus, the increase in the current account deficit and the scarcity of capital in international markets has decreased the inflows of capital to Brazil,'' Mantega said late yesterday to celebrate the 200th anniversary of the finance ministry.
- Friedman Billings cut its 2009 global steel demand growth forecast 37% to 3.8%.
- Salesforce.com Inc.(CRM) and Fastenal Co. will replace Fannie Mae and Freddie Mac (FAST)in the Standard & Poor's 500 Index after shares of the biggest providers of U.S. mortgage financing fell below $1 apiece.
- The Australian dollar dropped below 80 U.S. cents for the first time since August 2007 as prices tumbled for commodities the nation exports. The New Zealand dollar also fell.
- House Minority Leader John Boehner said Representative Charles Rangel should step down as chairman of the House Ways and Means Committee until Congress can investigate his ``ethical lapses.'' Rangel, a New York Democrat, failed to disclose more than $75,000 in rental income from his vacation villa in the Dominican Republic to the Clerk of the House of Representatives and tax authorities, his lawyer said last week. The lawyer, Lanny Davis, said Rangel also discovered he received an interest-free loan from the resort developer two years after he bought his three- bedroom casita in 1988.
Wall Street Journal:
- Sen. John McCain's choice of Sarah Palin as his running mate has shaken up the presidential race, lifting enthusiasm among his once-subdued supporters and boosting the ticket's appeal with women, rural voters and Southerners.
- Retailers have a new tool to turn up the heat on their salespeople: computer programs that dictate which employees should work when, and for how long.
MarketWatch.com:
- Both Meg Whitman the former chief executive of eBay Inc. (EBAY) and Carly Fiorina, the former CEO of Hewlett-Packard Co.(HPQ) were on the top 20 list as possible vice-presidential candidates for McCain. So did the choice of the Alaska governor hurt the future political careers of these other Republican women? Probably not.
- False bankruptcy report shows risks of online news.
CNBC:
- Apple Inc.(AAPL) is “faring reasonably well” in the weak economic environment, CEO Steve Jobs said in an interview. He also addressed recent concerns about his health. “People have finally looked at the Mac and said this is a viable alternative to Windows,” Jobs said. In an off-camera interview, Jobs also blamed recent concerns about his health on unnamed hedge funds that may have been betting that Apple’s stock would fall.
- Former Federal Reserve Chairman Alan Greenspan welcomed the recent takeover of Fannie Mae and Freddie Mac, telling CNBC that the government needed "to remove the ambiguity" over whether US would back up the two mortgage giants.
- In recent weeks, Lehman Brothers(LEH) has received interest from private equity firms for a potential purchase of the troubled brokerage house, but top officials said the company wasn't for sale, people close to the matter say.
- Georgia clash makes investors in Russia nervous.
- A drop in mortgage rates that's accelerated since the government said it would take over Fannie Mae and Freddie Mac has raised hopes that more buyers might be drawn into the housing market and help reverse the worst slump in decades. The average rate on a 30-year fixed-rate mortgage fell to 5.88% on Tuesday, according to Bankrate.com.
BusinessWeek.com:
- The US Closes the Mobile Innovation Gap. After lagging in wireless for years, the US has caught up with Western Europe and is now trying to take the innovation lead.
Financial Times:
- The Bill Gross-managed Pimco Total Return fund reaped a $1.7bn payday following the US government takeover of home loan giants Fannie Mae (NYSE:FNM) and Freddie Mac.While shareholders in Fannie and Freddie suffered deep losses, the world's biggest bond fund saw its highest ever one-day rise against its benchmark index on Monday, benefiting from the bet made by Mr Gross on mortgage bonds issued by the agencies. Mr Gross had made a big shift out of US Treasuries and corporate bonds over the past year and into agency bonds, betting that the government would support Fannie and Freddie Mac. By May this year, more than 60 per cent of his $132bn fund was in mortgage debt.
Inquirer.net:
- Philippine Rice Inventory Up 41% in August.
Late Buy/Sell Recommendations
Citigroup:
- Reiterated Buy on (ERTS), target $64.
- Downgraded (GFIG) to Sell, target $7.
Oppenheimer:
- Rated (ENZN) Outperform, target $14.
Morgan Keegan:
- Rated (CERN) Outperform.
- Maintained Outperform on (CPSI).
Night Trading
Asian Indices are -2.0% to unch. on average.
S&P 500 futures +.33%.
NASDAQ 100 futures +.49%.
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
Upgrades/Downgrades
Rasmussen Business/Economy Polling
Earnings of Note
Company/EPS Estimate
- None of note
Economic Releases
10:35 am EST
- Bloomberg consensus estimates call for a weekly crude oil inventory drawdown of -3,500,000 barrels versus a -1,898,000 barrel decline the prior week. Gasoline supplies are estimated to fall by -4,500,000 barrels versus a -1,037,000 barrel decline the prior week. Distillate inventories are expected to fall by -2,100,000 barrels versus a -413,000 barrel decline the prior week. Finally, Refinery Utilization is estimated to fall by -8.7% versus a 1.4% rise the prior week.
Upcoming Splits
- None of note
Other Potential Market Movers
- The weekly MBA mortgage applications report, (ZLC) investor day, (PNR) investor day, (COV) analyst meeting, Lehman Financial Services Conference, Morgan Stanley Industrials Conference, Keybanc Basic Materials Conference, BB&T Conference, BMO Capital Back to School Conference, Cowen Clean Energy Conference, Deutsche Bank Tech Conference, Jeffries Tech Conference and Robert W. Baird Small-cap Healthcare Conference could also impact trading today.
Bloomberg:
- Russia's RTS Index fell the most in more than two years, led by oil producers after crude sank to a five-month low and Energy Minister Alexei Kudrin said oil companies shouldn't expect further tax relief. The dollar-denominated RTS posted the largest fluctuation among national markets included in global benchmarks, tumbling 7.5 percent to 1,395.11.
- Copper fell to a 7 1/2-month low in London, leading declines in industrial metals, after a gain in stockpiles signaled weaker demand. Copper stockpiles monitored by the London Metal Exchange rose 1,300 metric tons, or 0.7 percent, to 202,125 tons, the highest since March 2007. Inventories have jumped 65 percent this quarter. Copper, aluminum and zinc may drop further because of slowing global economic growth, Anil Agarwal, the billionaire who controls Vedanta Resources Plc, said today. ``Further stock builds could see copper plumb new depths,'' said John Reade, head of metals strategy at UBS AG in London. ``We are seeing no signs of strong demand from bargain hunters,'' he wrote today in a report.
- Posco(PKX), Asia's largest maker of stainless steel, plans to extend an output cut this month on weak demand following similar reductions in July and August. Chinese makers said last month demand in China, the world's largest producer, will remain weak in September amid concerns that economic growth is faltering. The slowdown may deter stainless producers from buying more nickel, used to make the rust-resistant metal, and hurt prices that have dropped 28 percent this year. The South Korean government is considering measures, including lower taxes, to boost the domestic property market, which is struggling with the highest number of unsold homes in more than 10 years.
- Crude oil fell to a five-month low, leading commodities lower, after Saudi Arabia's oil minister said supplies are sufficient to meet demand. The oil market is ``well-balanced'' and inventories are ``healthy,'' Saudi Oil Minister Ali Al-Naimi said today in Vienna, suggesting the Organization of Petroleum Exporting Countries will maintain output. Oil is down 29 percent from a record in July. ``When you see oil lose close to a third of its value in a pretty short time, it shows you that commodities aren't worth what people once thought,'' said Ron Goodis, a futures trading director at Equidex Brokerage Group in Closter, New Jersey. ``Many markets are coming back to reality.'' ``Commodity charts speak for themselves -- not much hope for the bulls,'' said Ralph Preston, an analyst at Heritage West Futures Inc. in San Diego. ``Look for pension funds and endowments to sell on any bounces.''
- U.K. manufacturing production declined in July to the lowest level in 1 1/2 years as oil rose to a record, dragging on economic growth. Factory output fell 0.2 percent from June, the Office for National Statistics said today in London, declining for a fifth month.
- McDonald's Corp.(MCD), the world's largest restaurant company, reported August sales that rose more than some analysts estimated as consumers battered by higher gasoline and grocery bills bought $1 sodas in the U.S. and snack-sized chicken wraps in France.
- Lehman Brothers Holdings Inc.(LEH) fell as much as 43 percent in New York trading after talks about a capital infusion from Korea Development Bank ended. The Wall Street firm is continuing to negotiate with other potential investors, a person briefed on the matter said.
- Apple Inc.(AAPL) Chief Executive Officer Steve Jobs introduced thinner iPod media players that can hold twice as many songs, showing off new designs to entice consumers during the holiday shopping season.
Wall Street Journal:
- Momentum is building in Congress to increase funding for public transportation as transit agencies struggle to accommodate increased demand from Americans seeking to escape high gas prices.
- The next U.S. president should put more emphasis on countering biological threats as part of a rethinking of national security strategy, according to early assessments from the leaders of a commission investigating the threat from weapons of mass destruction.
NY Post:
- Frustrated by the market chatter about its health, battered hedge-fund firm Atticus has decided to give the market the silent treatment. The $14 billion fund - which last week quelled rumors that it was liquidating - plans to "suspend indefinitely the reporting of mid-month performance estimates," it said in a Sept. 4 letter to investors.
- Hedge funds - the daredevils of Wall Street - are backing away from risk, fearful of getting beaten up by the market's persistent turbulence. JPMorgan Chase's Highbridge Capital and Phil Falcone's Harbinger Capital are among a growing number of big-name hedge funds that are hunkering down, moving into cash and reducing the use of borrowed money, or "leverage," to inflate returns, sources said. "A lot of smart hedge funds are sitting on cash right now, and that's the position we've taken," said an employee at Highbridge, the $28 billion hedge fund shop in which JPMorgan holds a big stake. The flight to safety reduces the chances of any surprise blowups in the coming months. But it also kills the likelihood that any new stars will be born; fund managers' nerves are too frayed to make the kind of big, directional bets that could reap big rewards. In some cases, hedge funds - especially the poor performers - are being pressured by their lenders, known as prime brokers, to reduce their risk. Goldman Sachs, for example, is "tightening up their risk management and forcing funds to deleverage," said a person familiar with the situation. The flight to safety, whether voluntary or forced, started at the end of July, when one of the few sure-fire bets of 2008 - that oil prices will go higher and financial stocks will fall - suddenly failed.
Reuters:
- North Korean leader Kim Jong Il may have had a stroke, citing a
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Le Figaro:
- European Union Economic and Monetary Affairs Commissioner Joaquin Almunia said the European Commission will cut growth forecasts for the region. “Growth figures will be revised downwards and those for inflation upwards,” Almunia said.
Kommersant:
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- Accelerating August inflation is a “lesson” for
O Globo:
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