Market News

[weatherweenie]

Earnings Preview for the week of July 16th-20th: : Of the hundreds of companies reporting earnings the week of July 16th-20th some of the bigger names include: Monday: ETN, MAT, MERX, GWW, ADTN, INVX, NVLS, STLY, and UFPI... Tuesday: KO, JNJ, MER, STT, WFC, DTLK, INTC, PHHM, CHIP, YHOO... Wednesday: ABT, MO, AMFI, BLK, JPM, KLIC, PFE, LUV, STJ, UTX, DOX, CTAS, CBST, EBAY, ISIL, JNPR, LOGI, MOGN, MGI, NE, NVEC, TER, and WM... Thursday: ALDN, AVCT, BAC, BBT, CAL, DJ, FCS, FHN, F, FCX, HON, IGT, IONA, OXPS, SPWR, WYE, AMD, BRCM, GOOG, MSFT, and SNDK... Friday: BSX, C, JRC, KCI, SLB, and WB

 

[weatherweenie]

Briefing.com
08:00 am : S&P futures vs fair value: -4.2. Nasdaq futures vs fair value: -7.0. Early futures indications are trading below fair value, pointing to a lower open for equities. Following a week in which the Dow and S&P 500 rallied to record highs, it's not surprising to see the market take a bit of a breather this morning, especially heading into such a busy week of potentially market-moving data.
Per usual for a Monday, investors are sifting through some more supportive M&A activity (speculation). Verizon (VZ) is up nearly 8% in pre-market action amid reports that Vodafone (VOD) is mulling a $160 bln takeover while fellow Dow component Alcoa (AA) is up nearly 2% amid reports that shareholders are pressing AA to sell or break itself up.
Investors, however, are waiting for a deluge of corporate earnings, key inflation data, and a two-day testimony before Congress from Fed Chairman Bernanke this week to help justify whether the market's sizable gains of late are sustainable.

 

[weatherweenie]

Briefing.com
1:30 pm : Sellers continue to show their resolve, leaving no stone unturned to question the sustainability of recent market gains. As evidenced by the latest flight-to-quality bid in bonds, and the benchmark ABX subprime mortgage "BBB-" 07-1 index tumbling to a fresh record low, renewed fears surrounding possible spillover of the subprime fallout is taking an added toll on sentiment.
The yield on the 10-year note (+12/32) is now at 5.04%, down six basis points from Friday; but the rate-sensitive Financial sector (+0.1%) is not benefiting whatsoever since underlying hedge-fund risk is sparking the safe-haven buying across the Treasury complex. DJ30 +49.14 NASDAQ -5.69 SP500 -2.00 NASDAQ Dec/Adv/Vol 1823/1127/1.00 bln NYSE Dec/Adv/Vol 1907/1257/682 mln

 

[weatherweenie]

Briefing.com
08:00 am : S&P futures vs fair value: +0.4. Nasdaq futures vs fair value: +2.0. Futures indications are well off their morning lows and now suggest a slightly higher start for stocks. Investors are embracing news that Basell has agreed to buy Lyondell Chemical (LYO) for $12.1 bln in cash while the bulk of this morning's earnings reports (e.g. JNJ, KO, MER, KEY, STT) are also checking in better than expected.
The modestly positive disposition, though, is certainly subject to change at the bottom of the hour given the Fed's repeatedly hawkish stance and the fact that investors will get the latest read on inflation at the wholesale level at 8:30 ET. Economists are expecting just a 0.1% jump in total PPI and another 0.2% increase in the core component, which would likely leave a tame 1.7% year/year rate. The 10-year note is currently down 3 ticks to yield 5.05 %.

 

[weatherweenie]

Johnson & Johnson beats by $0.05; reaffirms Y07 guidance (JNJ) 63.80 : Reports Q2 (Jun) earnings of $1.05 per share, $0.05 better than the Reuters Estimates consensus of $1.00; revenues rose 13.2% year/year to $15.13 bln vs the $15.06 bln consensus. Co reaffirms guidance for FY07, sees EPS of $4.02-4.07, excluding the impact of in-process research and development charges or other special items, vs. $4.04 consensus.

 

[weatherweenie]

08:33 am : S&P futures vs fair value: +1.1. Nasdaq futures vs fair value: +3.5. Total PPI unexpectedly fell 0.2% (consensus 0.1%) in June, the first decline since January. The more closely-watched core rate, though, rose 0.3% (consensus 0.2%), lifting the year/year rate to 1.8% from 1.6%. Nonetheless, the futures market so far has improved slightly following evidence of a welcome drop in food and energy prices even though bonds have weakened a bit on the slight rise in the core rate. The 10-year note is now down 5 ticks to yield 5.06%.

 

[weatherweenie]

Merrill Lynch & Co. (NYSE:MER - News), which has been closely tied to the subprime mortgage meltdown, posted earnings and revenue that exceeded estimates. Its shares rose more than 1 percent. but then trimmed gains after the brokerage's chief financial officer said in a conference call the market for subprime collateralized debt has yet to stabilize.

 

[weatherweenie]

Earnings results from Yahoo and Intel are due after the close of trading today.

 

[weatherweenie]

Briefing.com
2:00 pm : Buyers have shown some resolve within the last 30 minutes, pushing the indices to fresh afternoon highs. The Dow is back above the 14,000 mark for the first time in nearly three hours as investors rally around Kansas City Fed President Hoenig saying housing should strengthen later this year, business investment may strengthen slightly, and that he could make a case for rate hikes or cuts.
Also sparking an even more pronounced wave of buying interest on the growth-oriented Nasdaq have been upbeat commentary out of the SEMICON West conference, especially from KLA-Tencor (KLAC 61.08 +4.38) which has spiked 5% since the last update. The PHLX Semiconductor Sector Index is now up 2.8%; 16 of its 19 components are trading higher. DJ30 +55.44 NASDAQ +17.20 SOX +2.8% SP500 +3.21 NASDAQ Dec/Adv/Vol 1341/1639/1.30 bln NYSE Dec/Adv/Vol 1583/1591/848 mln

 

[weatherweenie]

INTC dropping after their report.

DJ Intel Shares Fall 4.7% After Hours On Margin Concerns

 

[weatherweenie]

Tomorrow before the open look for the following companies are scheduled to report: AOS, ABT, MO, AMFI, ASD, APH, BLK, CIT, CMA, GCI, HST, JCI, JPM, KLIC, LUFK, MI, NTRS, ORB, PFE, PJC, RLI, SLGN, LUV, STJ, and UTX.

 

[weatherweenie]

Whole Foods Chairman and CEO "sincerely apologize(s) to all Whole Foods Market stakeholders for my error in judgment" (WFMI) 39.97 +0.13 : Co releases the following statement from Co-founder, Chairman and CEO, John Mackey: "I sincerely apologize to all Whole Foods Market stakeholders for my error in judgment in anonymously participating on online financial message boards. I am very sorry and I ask our stakeholders to please forgive me."

 

[Bullitt]

How about that Bear Sterns report after market close today where they indicated that anyone who invested in their subprime hedge fund has lost every bit of their money. Well, actually the NAV per share in one hedge fund was something like 9 Cents. Minutes after this was disclosed, attornies began reviewing the matter for a possible lawsuit.

Here we have the so called 'Smart Money' investing in hedge funds and when things don't work out for them they cry that things aren't fair. If they can't sue Bear, they'll probably try to go after the short sellers that took their money. How about the past 5 years that subprime hedge funds have outperformed the general market? I hope a frivolous lawsuit never comes of this matter and if it does, it's squashed before it can go to civil hearings.

Bottom line, any investments have risk. Handle it.

 

[tsptalk]

Here we have the so called 'Smart Money' investing in hedge funds and when things don't work out for them they cry that things aren't fair. If they can't sue Bear, they'll probably try to go after the short sellers that took their money.

I remember reading in one of Jim Cramer's books about this very thing. There seems to be some pleasure in hitting another hedge fund when it's down to take them out.

 

[mlk_man]

Yahoo Disappoints Again

http://money.cnn.com/2007/07/17/news/companies/yahoo_earnings/index.htm

 

[weatherweenie]

08:00 am : S&P futures vs fair value: -6.8. Nasdaq futures vs fair value: -12.8. Early indications are pointing to a sharply lower open for equities as a slew of negative developments weigh on sentiment. Concerns about potential spillover of the subprime fallout have resurfaced following reports that Bear Stearns (BSC) said there is "no value left" in its two failed hedge funds. Earnings reports have also been disappointing. Intel's (INTC) Q2 margins fell short of forecasts, Yahoo! (YHOO) cut its full-year outlook, and Pfizer (PFE) missed expectations as Q2 profits plunged 48%. With inflation still pegged as the Fed's "predominant" concern, investors are also exhibiting a cautious stance ahead of today's influential CPI report (8:30 ET), given its ability to move the market and influence Fed policy, as well as the start of Bernanke's two day semi-annual testimony before Congress.

 

[weatherweenie]

U.S. consumer prices rose by a slightly bigger-than-expected 0.2% in June on higher food costs and they were up by the same amount after stripping out volatile food and energy prices, the Labor Department reported on Wednesday.
Meanwhile, groundbreaking on new homes rose unexpectedly in June after the rate of housing starts for May was revised lower.
Last month's gain in the Consumer Price Index was slightly larger than the 0.1% advance Wall Street economists were expecting to see after a fall-off in energy prices. But the increase in the more closely watched core prices index was directly in line with expectations.

http://www.cnbc.com/id/19824849

 

[weatherweenie]

Briefing.com
08:35 am : S&P futures vs fair value: -8.0. Nasdaq futures vs fair value: -14.5. Total CPI rose 0.2% (consensus 0.1%) in June, the smallest rise since January. The more closely-watched core rate rose 0.2%, matching economists' forecasts and leaving the year/year rate at 2.2%. That's closer to the Fed's "comfort zone" and will at worst keep policy makers on hold with any tightening efforts for the time being.
Housing starts unexpectedly rose 2.3% last month to 1.467 mln (consensus 1.45 mln) but building permits fell 7.5% to 1.41 mln (consensus 1.49 mln). The response in both stocks and bonds has been relatively muted. Futures trade still indicates a dismal open for the cash market while the yield on the 10-year note (+3/32) remains at 5.03%.

 

[weatherweenie]

Federal Reserve Chairman Ben Bernanke told Congress Wednesday that even though the economy is likely to log more subdued growth this year due to the painful housing slump, the threat of an inflation flare-up still remains policymakers' biggest concern.

http://biz.yahoo.com/ap/070718/bernanke_economy.html?.v=6

 

[weatherweenie]

10:30 am : Stocks are retracing session lows as Bernanke's prepared remarks do nothing to calm investors' nerves in the face of an already dismal day of news items. At the top of the hour, the Fed Chairman did say growth will pickup up next year and that inflation is likely to recede. However, with subprime back in the spotlight and acting as a huge overhang, Bernanke saying conditions in the subprime mortgage sector have "deteriorated significantly," and that delinquencies and foreclosures are likely to get worse before they get better, has pushed Financials (-1.3%) to fresh session lows.
He also said that "sizable increases in food and energy prices have boosted overall inflation and eroded real incomes in recent months -- both unwelcome developments."