Posted By Optiondragon for myhappytrading.com
From Briefing.com
Periodicals Wrap-Up for Wednesday, August 13th
WALL STREET JOURNAL: The Wall Street Journal reported that Best Buy (BBY) will begin selling Apple’s (AAPL) iPhone next month. Beginning September 7, Best Buy will become the first U.S. retailer outside Apple and AT&T (T) to offer the device…The Wall Street Journal also reported that Yahoo! (YHOO) is in the final stages of clearing former Viacom (VIA) CEO Frank Biondi and former Nextel Partners CEO John Chapple to join its board, a person familiar with the matter said. Yahoo! is expected to announce the appointments by Friday, although the person said Yahoo! has yet to make a final decision…FINANCIAL TIMES: Fifth Third (FITB), a struggling bank, is trying to sell at least part of its payment processing business, and is looking for bidders for the division, the Financial Times reported. The unit has a strong, stable cash flow…According to a letter seen by the Financial Times, at least a year before U.S. investigations began, senior executives at UBS (UBS) knew some of their bankers had “acted in a way that meant they risked breaching” American securities laws…NEW YORK TIMES: The New York Times reported that the SUV market is beginning to look similar to the housing market. Automakers’ SUV inventories have risen sharply, and many SUV owners’ vehicles are worth less than their car loans. Meanwhile, sellers of SUVs are slashing the prices they are seeking by large amounts…
EIA Petroleum Status Report released on 8/13 at 10:30 AM
SUVs are causing problems for automakers, owners-NY Times
The SUV market is beginning to look similar to the housing market. Automakers’ SUV inventories have risen sharply, and many SUV owners’ vehicles are worth less than their car loans. Meanwhile, sellers of SUVs are slashing the prices they are seeking by large amounts.
Asian Markets Wrap-Up for Wednesday, August 13
Asian stocks declined as most markets there were down…JAPAN: The Nikkei 225 Stock Average fell 280.55, or 2.1%, to 13,023.05, while the broader Topix index dropped 24.94, or 2%, to 1,246.48. Before the markets opened, the government said Japan’s gross domestic product contracted an annualized 2.4% in the second quarter ending June 30, the first down quarter in a year. Orix (IX) sank 5.7% to Y13,700. Nomura (NMR) slid 4.4% to Y1,505. Sumitomo Trust & Banking Co. tumbled 5.7% to Y673. Hiroshima Bank slumped 7.7% to Y408. Dentsu (DNTUY) lost 4.6% to Y210,300…AUSTRALIA: The S&P/ASX 200 Index retreated 102.00, or 2.02%, to 4,951.60. The Commonwealth Bank of Australia was down 1% to A$44.05. Rio Tinto (RTP) fell 2.1% to A$111.60. Fortescue Metals Group sank 5.2% to A$7.17…AROUND ASIA: In Hong Kong, the Hang Seng Index fell 347.57, or 1.6%, to 21,293.32. ICBC dropped 5.4% to HK$5.25. China Construction Bank Corp. tumbled 6.1% to HK$6.20. Gome Electrical Appliances Holdings dropped 18 cents, or 5.2%, to HK$3.27. China Unicom (CHU) lost 66 cents, or 4.3%, to HK$14.80. China Petroleum & Chemical Corp. (SNP) slipped 16 cents, or 2%, to HK$7.90.
Some restaurant chains struggle as sales slide-WSJ
The Wall Street Journal’s “Running a Business” column focuses on the financial struggles of Uno Restaurant Holdings Corp., parent of Uno Chicago Grill, as a number national and regional of sit-down restaurant chains face a cash crunch as sales fall and costs escalate during difficult economic times. In Uno ’s case, same store sales fell 7.7% in the first quarter, and it has a $7.5M interest payment due Friday on its $141M in senior secured notes. It will defer payment and reportedly is in talks with bondholders for a waiver or amendment. They have 30 days to avoid being in default. “We are not in any imminent danger of filing for bankruptcy,” says Uno CFO Louie Psallidas.
China looks to a market rebound by the end of the year-WSJ
It’s not likely to happen this month, but some market strategists looking at China believe the worst will be over by the end of the year leading to a rebound, according to the Wall Street Journal’s “Heard in Asia”. “Going forward, the markets will remain sensitive to changes in macroeconomic data,” says Jing Ulrich, chairman for China equities at J.P. Morgan Chase. “But with many large-cap blue-chip stocks now trading at attractive valuations and the possibility of targeted, pro-growth policies from the government in the second half of the year, investors may start to see value re-emerging.”
Credit markets will settle down when housing prices stabilize-WSJ
Reminder to investors pumped by the recent stock market rally: The credit markets will not calm down until housing prices stabilize. And it won’t be happening anytime soon, according to the Wall Street Journal’s “Heard on the Street”. That point was driven home again when J.P. Morgan Chase (JPM) said they may have $1.5B in mortgage-related losses in the third quarter. Also, two well-known analysts downgraded Goldman Sachs Group (GS).
U.S. equity futures are lower
U.S. equity futures are now lower after Deere & Co. (DE) reported their quarterly earnings which missed Wall Street’s estimates for earnings even thought they reported better than expected revenue. Their shares are now down more than -9.0% in pre-market trading. The earnings miss affected the futures as they dropped after the report. Oil continues to trade slightly higher in front of the DOE report due out later today. The advanced retail sales figure for July was released and came in down -0.1% versus an expected decrease of -0.4%. Taking food and energy out of the equation, and it becomes an increase of 0.4% versus an expected increase 0.4%. The report had a slightly negative effect on the futures.
Russia trying to encircle Georgian Capital, Georgian press reports-DJ
Deere-DE reports Q3 EPS $1.32 vs. consensus of $1.36
Reports Q3 revenue $7.74B vs. consensus of $7.23B.
Deere-DE: Bearish Pennant in Progress
There is a bearish pennant now in progress that has downside potential to the $50 area over time. The pattern would no longer be valid on a breakout back above $66. Support levels to watch as potential downside objectives are at $62.82, $61.70, $59.28, $58.25, $57.36, $56.50, $53.95, $52.74, $51.77, $50.70. Resistance is at $63.94, $66.28.
Nvidia-NVDA: Believe company’s recovery will take time@KBRO
After Nvidia reported lower than expected Q2 revenue, Kaufman Bros. thinks the company will recover slowly, given its below seasonal guidance. However, the firm does not expect the stock to drop significantly, and they maintained their Hold rating.
Internet: See great buying opportunities for GOOG, AMZN, and PCLN@BOFA
BofA said GOOG, AMZN, and PCLN are the best positioned to take share in secular growth opportunities.
Apple-AAPL on pace to beat Sept. Qtr iPhone unit estimate of 4.1M@PIPR
Following checks, Piper raised its September quarter iPhone unit sales estimate to 4.47M from 4.1M. Shares are Buy rated.
Auxilium Pharmaceuticals-AUXL initiated with a Buy, target $49@CSTI
Collins Stewart is positive on AUXL’s Xiaflex opportunity.
Nvidia-NVDA: Company still has solid long-term outlook@OPCO
After Nvidia said it would only have slight revenue growth and margin improvement over the next couple of quarters, Oppenheimer believes the company will recover over the long-term, and they would be buyers of the shares. The firm thinks the stock has a compelling risk/reward ratio.
Canadian Solar-CSIQ reports Q2 EPS 78c vs. consensus of 47c
Reports Q2 revenue $212.6M vs. consensus of $206.8M.
Canadian Solar-CSIQ sees Q3 revenue $245M-$255M vs. consensus of $247.63M
Canadian Solar-CSIQ raises FY08 revenue view to $850M-$970M
Consensus is for revenue of $908.93M.
Cleveland Cliffs-CLF initiated with an Outperform, target $130@FBRC
Friedman Billings believes shares of CLF are attractive as a stand-alone company or even if it successfully acquires ANR.
ImClone-IMCL announces commencement of Phase III IMC-1121B study
ImClone Systems Incorporated announced that the first patient has been treated in a global Phase 3 clinical trial of IMC-1121B, its anti-vascular endothelial growth factor receptor-2 IgG1 monoclonal antibody, in women with metastatic breast cancer.
Intermune-ITMN initiated with a Neutral, target $21@BARD
Baird recommends waiting for positive pirfenidone data expected in January 2009 before becoming more positive on shares.
Optimer Pharm-OPTR initiated with a Neutral, target $11@BARD
Baird recommends waiting for Ph III trial results for OPT-890 in CDI expected in Q4 before becoming more constructive on shares.
SAC Capital Partners lowers stake in Invitrogen-IVGN to 5.3% from 6.9%
Nvidia-NVDA reports Q2 EPS 13c vs. consensus of 12c
Reports Q2 revenue $892.7M vs. consensus of $908.38M.
Nvidia-NVDA increases stock repurchase program by $1B
NVIDIA announced an increase of $1B to its stock repurchase program under which it may now purchase up to $2.7B of its common stock. Through July 27, 2008, NVIDIA has repurchased 68M shares under the stock repurchase program for a total cost of $1.16B.
MercadoLibre-MELI reports Q2 EPS of 10c vs. consensus of 9c
Reports Q2 revenue of $34.5M vs. consensus of $32.24M.
LDK Solar-LDK signs 5-year wafer supply agreement with XL Telecom & Energy
LDK Solar Co., Ltd announced that it has signed a five-year contract to supply multicrystalline solar wafers to India-based XL Telecom & Energy Limited. Under the terms of the agreement, LDK Solar will deliver approximately 300 MW of multicrystalline silicon solar wafers to XL Telecom & Energy Limited over a five-year period, commencing in the first quarter of 2009 and extending through 2013. XL Telecom & Energy Limited will make a down payment representing a portion of the contract value to LDK Solar.
Albermarle-ALB to raise price for Ethanox 330 by 50%
Albemarle Corporation will increase the price of its ETHANOX 330 polymer antioxidant by up to 50 percent worldwide effective on all orders shipped after September 15, 2008, or as contracts and sales agreements allow.
Capital One-COF initiated with an Underperform@FPKI
(Important note on how to use this upgrade/downgrade list with analyst comments and news….you must parse out the factual data (Factual data is the most important) from the opinionated data and always take all analyst comments with a grain of salt. Do not follow blindly with their recommendations. Remember that technicals are the most powerful force in short term direction for stock prices due to the law of supply and demand.)
Fast Money position recap- First moves: Guy likes RTN, Karen likes long PDE, Pete likes CSCO long, Jeff suggests shorting RTH and long WMT.
Macke Owns (WMT), (COST), (MSFT), (UUP), Macke Is Short (TM); Adami Owns (AGU), (C), (BTU), (GS), (INTC), (NUE), (MSFT); Pete Najarian Owns (AAPL), (NVDA), (TSO), (AMLN), (HD); Pete Najarian Owns (CSCO) Calls; Finerman Owns (GS); Finerman’s Firm Owns (GLNG), (JCP), (MSFT), (SUN), (TSO), (VLO); Finerman’s Firm Is Short (WB), (XLF), (BBT), (COF), (IYR), (MDY), (SPY), (IWM), (IJR); Finerman’s Firm Is Short British Pound; Finerman’s Firm And Finerman Own (PDE); Finerman’s Firm And Finerman Own (C) Leaps.
Not a surprising pullback yesterday. Led by the financials, the market is will look to them further today for direction and will also move on oil inventory reports this morning at 10:30 am ET. Looking to short financials, rails but will look for longs if the market stabilizes and starts running. Pick plays with a high probability of success, have focus and patience, run technicals through supply and demand. Great Luck and Happytrading! Come visit us at myhappytrading.com, our new website is amazing!
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