Jim Cramer Blog

Trish Regan hosted. Tech stocks are down today. Microsoft was down 2%. Fannie May down 8%. Treasury notes gain, dollar sinks on weak consumer sentiment. Intel was down 2%. Nasdaq down 6% over 3 days, the biggest loss since 2002. Google was down over 3%. Wachovia says they are looking at a $1.1B write-down. Paul Krugman, author of conscience of a liberal, reports on the current credit crunch. He estimates the tight credit situation shall last a long time. Marc Weinberger of W. Quillen Securities says the sooner credit companies and the financial sector as a whole shakes the growing debt dilemma, the more comfortable the consumers and investors will become. Next up was the weak dollar. Rick Santelli says despite the inflation in the U.S, the weakening of the dollar is a good thing. Paul Krugman adds that the trade deficit will fix itself when fundamentals are re-examined. Apple was down 2.5%. Next, the writers guild of America is on strike for day 5. Hollywood production has stopped "How I met your mother," and a rally of 4,000 is expected outside of FOX today. A holiday retail forecast was presented by MaragretBrennan oc CNBC. She says that major retailers like Wal-Mart pay meteorologists to inform them of weather changes, so they can change their shelf products accordingly. Consumer buy on impulse and weather has an impact on consuming. Bon-Ton, Aeropostale, Abercrombie % Fitch, American Eagle and Limited Brands are estimated to be prepared for the weather changes, as well as being the top picks for investors around the season change, according to analytics, also that major retailers like Wal-Mart and Meijers will not be as prepared to serve the consumers.

Labels: CNBC, MSFT, NDAQ, The Call, trish regan

Nasdaq Stock Market Inc., the nation's largest electronic exchange, said Wednesday its third-quarter profit surged from big gains on the sale of its 31 percent stake in the London Stock Exchange.
Profits rose more than twelvefold to $365 million, or $2.41 per share, from $30.2 million, or 22 cents per share, in the year-earlier period. Along with $431.4 million in pretax gains tied to the sale of the LSE stake, results included $35.2 million in gains on foreign currency option contracts as well as charges of about $26 million.
Excluding the items, earnings totaled $62.1 million, or 42 cents per share.
Net revenue, which excludes liquidity rebates, brokerage, clearance and exchange fees, rose 23 percent to $210 million from $171.2 million a year earlier. Including such expenses, revenue stood at $652 million, a 62 percent increase from $402.9 million a year earlier.
Analysts surveyed by Thomson Financial predicted, on average, that Nasdaq would post earnings of 39 cents a share on net revenue of $209.7 million.

Labels: Nasdaq Stock Market Inc., NDAQ

Technology
Technology stocks continued to shine with big moves this week out of Apple (AAPL), Google (GOOG) and Research In Motion (RIMM). Finerman said her favorite is Microsoft (MSFT) and she has a bullish options trade on the stock in her hedge fund. Najarian points out the strength in gadget makers with RIMM as an example. He also favors Nokia (NOK), Apple, Hewlett-Packard (HPQ) and Dell (DELL). Videogame makers Activision (ATVI), Electronic Arts (ERTS) and Nintendo (NTDOY) all had strong weeks as well. Macke: has not sold a single share of ATVI yet and advises other investors to get long all the videogame makers mentioned.
Blackstone (BX) traded up 15% as investors sense deal making is back. Najarian agrees that deals are getting done and is bullish on the exchange stocks. He bought Nasdaq (NDAQ) on Friday. Finerman agrees with NDAQ.
China
Despite the Chinese stock market being closed; the iShares FTSE/Xinhua China 25 Index (FXI) and the IShares MSCI Hong Kong Index Fund (EWH) closed the week in the green. China Finance Online (JRJC) was up 20% on the week and KongZhong (KONG) was up 15%.
Consumer Products
This week some interesting earnings reports are expected from Pepsi (PEP), Yum! Brands (YUM), Costco (COST) and GE (GE). Macke: likes Pepsi for a play on the weak dollar and China exposure, but less than enthused about Costco. Finerman favors Yum Brands for its china exposure and strong brands.
Luxury Stocks
CNBC's Margaret Brennan joined the crew to discuss luxury stocks. She said that companies such as Gucci (GUCG) and LVMH (LVMUY) are recession proof. She feels that brands like Tiffany (TIF) and Coach(COH) could have more problems if we see a drop in bonuses.
Options Activity
Najarian noticed unusual options activity in ValueClick (VCLK) with the $22 and $25 call options. Market rumors are swirling that ValueClick could be a takeover target. He also mentioned he took a position in ValueClick two weeks ago. Another stock that he saw with unusual options activity was McAfee (MFE).
Pops & Drops
Pops- Google (GOOG) traded up 5%.
Home Depot (HD) traded up 5%. Finerman is long HD.
TIVO (TIVO) exploded up 17%. Macke still prefers DISH over TIVO.
Vimpel-Communications (VIP) popped 7% after winning a shareholder lawsuit.
Drops- Walgreen (WAG) dropped 17% after missing Wall Street profit targets. Macke says get out.
USEC (USU) fell 15% after the U.S. Energy Department declined its $9.5 billion bid to restore uranium plants.
Sealy (ZZ) plunged 8% after profits fell for the mattress maker.
Quicker than the Ticker
Finerman: Centex (CTX) She was right and the stock went up 7% since her call.
Macke: Electronic Arts and Activision. Macke was a winner as both stocks went up significantly from his call.
Seymour iShares MSCI Brazil Index (EWZ): flying up 20% since his call.
Najarian: Manitowoc (MTW): soaring 21% since his recommendation.
Fast Fire
Past picks that didn't do so well.
Last Thursday, Macke made bullish comments on Yahoo! (YHOO) and Palm (PALM). Macke missed the mark as Palm fell 5% since his call…but maintains that Palm is a solid long term play.
Najarian said he liked Wynn Resorts (WYNN) better than Las Vegas Sands (LVS). Wynn fell 8% the next day.
Finerman told investors to sell Skechers (SKX). Since her advice, Skechers has soared 16%.

Labels: AAPL, ATVI, CNBC, DELL, Fast Money, Fast Money Recap, FXI, GOOG, HPQ, MSFT, NDAQ, RIMM

Equities rose on the day, with all three major market averages solidly in the green. The Dow closed up 100 points, helped by the end of a strike at General Motors (NYSE: GM - News). The Nasdaq, meanwhile, finished up 16 points, while the S&P tacked on 8 points. Oil initially fell after weekly inventories levels unexpectedly rose, but rallied to close up 77 cents to $80.30 a barrel. The price of gold slipped on the day.

In economic news, the Commerce Department reported that demand for durable goods nose-dived in August, with weakness across most categories. Orders fell -4.9% for the month, worse than the -3.5% drop economists were expecting. It was the biggest decline since January, and comes on the heels of a large 6.1% gain in July. Crude oil inventories, meanwhile, unexpectedly rose last week by 1.8 million barrels to 320.6 million barrels. Analysts were expecting inventories to drop by -2 billion barrels.
Topping the headlines today, the United Auto Workers (UAW) and General Motors agreed to a tentative contract early this morning, ending a 2-day strike. As part of the contract, the two sides confirmed that GM would fund a newly created trust that the UAW will run to administer retiree healthcare benefits. For its part, GM will continue to offer some job guarantees. The UAW hopes to strike similar deals with Ford (NYSE: F - News) and Chrysler. Shares of GM spiked 9.4%.
Shares of defense contractors, including Lockheed Martin (NYSE: LM - News), General Dynamics (NYSE: GD - News), and Raytheon (NYSE: RTN - News), hit or flirted with all-times Wednesday. Defense Secretary Robert Gates was meeting with Congress today to request an additional $45 billion to cover military costs in Iraq and Afghanistan. If approved, Gates' request will raise initial 2008 budget-year war projections by nearly a third to $190 billion.
Shares of Vonage (NYSE: VG - News) fell below a $1 after a jury found that it infringed on six patents held by Sprint Nextel (NYSE: S - News). The VoIP company was ordered to pay Sprint $69.5 million in damages. Vonage said it will seek to try to have the Sprint judgment overturned. Earlier this year, Vonage lost a patent infringement case to Verizon (NYSE: VZ - News) for $58 million plus royalties. Today, a court upheld two of the three patent infringement charges in a separate verdict.
In M&A news, Nasdaq (Nasdaq: NDAQ - News) and Borse Dubai raised their bid for Swedish exchange OMX to $4.9 billion, a 15% increase over their previous offer. The exchanges also made agreements with several large shareholders that combined control nearly 19% of OMX to now secure half of OMX's shares. The moves were made in response to The Qatar Investment Authority increasing its stake in OMX, which could indicate it may try to block the deal. Elsewhere, Bear Stearns (NYSE: BSC - News) shares rose 7.7% on rumors that the investment bank is close to selling a minority stake in itself. Among the potential suitors named include a Chinese bank, HSBC Holdings, and Warren Buffett, among others.

By the BullMarket.com Staff

Labels: BSC, F, GD, GM, LM, NDAQ, RTN, S, VG, VZ

Stocks traded lower on the day following mixed earnings reports, ending the overall market's potent two-day Fed-induced rally. At the close, the Dow dropped -49 points, while the Nasdaq lost -12 points and the S&P slumped -10 points. Crude oil continued its northward movement, ending the day at yet another record, jumping $1.39 to finish at $83.32 a barrel. The price of Gold also continues to impress, adding $10.40 to end the session at $739.90 a troy ounce.
Two Wall Street investment banks reported their earnings today. Goldman Sachs (NYSE: GS - News) reported a blowout third quarter, recording net income of $2.85 billion, or $6.13 a share, up considerably from $1.59 billion, or $3.26 a share, in the same period a year ago. Revenues rose an astonishing 63% to $12.3 billion. Goldman said the strong earnings were a result of betting correctly on falling mortgages, in addition to a $900 million gain related to the disposition of Horizon Wind Energy. The street was looking for a profit of $4.35 a share on revenue of $9.57 billion. Shares have been on a tear in recent weeks, but finished the day lower by -1.0%. Subscribers can read our analysis of Goldman Sachs in today's issue.
Fellow rival Bear Stearns (NYSE: BSC - News), meanwhile, reported a -61% decline in third-quarter net income on a drop in fixed-income trading and $200 million in hedge fund losses. For the quarter, net income totaled $171.3 million, or $1.16 a share, down sharply from $437.6 million, or $3.02 a share, last year. Total revenue fell -37% to $1.64 billion. During the quarter, the company took a $700 million writedown related to the diminishing value of its mortgage and leveraged loan portfolios.
Transportation and logistical giant FedEx (NYSE: FDX - News) reported mixed news on the day. The company posted net income of $494 million, or $1.58 a share, up 4% from 2006 levels due to strong international growth. Revenues came in 8% higher to $9.2 billion, and were above analyst estimates of $9.07 billion. The overall positive quarter was dampened when the company forecasted that its current quarter will only see earnings of $1.60-$1.75 a share and that full-year earnings would be $6.70-7.10 a share, down from its previous guidance of $7.00-$7.40 a share. The company cited "uncertain economic clarity" for the lower earnings. Investors sent the shares down -2.9% on the news. Subscribers can read our analysis of FedEx in today's issue.
Electronics retailer Circuit City (NYSE: CC - News) saw its shares get clobbered -18.2% after the retailing chain posted a wider-than-expected loss for its most-recent quarter. For the second quarter, the company lost -$62.8 million, or -38 cents a share, compared to a profit of $10 million, or 6 cents a share, in the year-ago period. Sales fell to $2.6 billion from $2.8 billion last year. Same-store sales in the period fell -7.9%. The company cited a decrease in sales in addition to lower margins on TVs for its loss. The company additionally warned of further losses ahead.
In M&A news, Nasdaq Stock Market (Nasdaq: NDAQ - News) reached a deal with the Borse Dubai wherein Nasdaq will get control of Nordic markets operator OMX while giving the Dubai exchange a 20% stake in the Nasdaq. Under the terms of the proposed deal, Nasdaq will sell its 20% stake in the London Stock Exchange to Borse Dubai as well. Already, government officials announced that the deal will be heavily scrutinized. Nasdaq shares gained 1.4% on the news.
By the BullMarket.com Staff

Labels: BSC, CC, FDX, GS, NDAQ

Stocks continued to be volatile to start off the week, but not as volatile as the past several weeks have been. Investors weighed and assessed the decision by the Federal Reserve on Friday when it lowered the discount rate by 50 basis points. For most of the session, all three major market averages were lower, but the bulls orchestrated a rally towards the close. At the close, the Dow gained 42 points, with the Nasdaq picking up a modest 4 points. The S&P 500, meanwhile, ended the session fractionally lower. Over in the energy markets, natural gas was the biggest loser as Hurricane Dean appears that it will not head into the energy rich northern Gulf of Mexico. Natural gas lost -98 cents to finish at $6.03.
Jumbo loan company Thornburg Mortgage (NYSE: TMA - News) saw its shares decline -10.2% after it announced it sold $20.5 billion worth of mortgage-backed securities at a discount in order to pay down debt it could not refinance. It foresees itself losing $930 million on the transaction, but said it will go ahead and pay its dividend. The company stated it will not give any guidance on further dividends. Rating agency Fitch Ratings downgraded its issuer default rating to "CCC" citing concerns of Thornburg's ability to generate and maintain adequate liquidity given the current market environment.
On the earnings front, the nation's second-largest home improvement retailer, Lowes (NYSE: LOW - News), reported that its second-quarter profit rose 9% to $1.02 billion, or 67 cents a share, up from $975 million, or 60 cents a share, in the same period a year ago. Analysts were expecting earnings to come in at 61 cents a share. Sales rose 5.8% to $14.2 billion. Same-store sales declined -2.6% for the company. For the year, the retailer sees earnings of $1.97-2.01 a share, down slightly from its prior forecast of EPS of $1.99-2.03. Despite the lowered full-year earnings estimates, the stock rose 6.1% on the heels of market share gains as well as a company belief that sales trends were improving.
In other corporate news, Nasdaq Stock Market (Nasdaq: NDAQ - News) said it is looking to sell its 31% stake in the London Stock Exchange (LSE). It attempted to buy the exchange last year, but the LSE's shareholders rejected the offer in February. Nasdaq said it would use the proceeds to retire some of its debt and also repurchase its stock. Shares declined -0.7%.
On the international front, the world's third-largest bank HSBC Holdings (NYSE: HBC - News) is in talks to buy the majority of Korea Exchange Bank, South Korea's sixth-largest bank. HSBC is currently in advanced discussions with Lone Star Funds, which owns a 51% stake worth $4.5 billion in the foreign bank.
By the BullMarket.com Staff

Labels: HBC, LOW, Lowe's Companies Inc., NDAQ, Thornburg Mortgage Inc., TMA

Nasdaq Stock Market Inc. agreed to buy Nordic exchange operator OMX AB for $3.7 billion. Nasdaq recently failed in a high-profile bid to acquire the London Stock Exchange, and the deal with Stockholm-based OMX gives it a second chance at launching an expansion overseas. "Nasdaq has been able to snatch victory from the jaws of defeat," said Octavio Marenzi, chief executive of consulting firm Celent. "London Stock Exchange, on the other hand, is looking increasingly isolated in a market that is rapidly consolidating." Nasdaq's news -- along with Dow-component Coca-Cola's purchase of bottled-water maker Glaceau -- cheered up investors ahead of the three-day Memorial Day weekend.
Published by CNN Money

Labels: Hot Stocks, KO, NDAQ

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Google June 510 Calls (NasdaqGS:GOOG - News). GOOG's PowerRating is 5.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
InterContinental Exchange June 130 Puts (NYSE:ICE - News). ICE's PowerRating is 6.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Apple Inc. July 120 Calls (NasdaqGS:AAPL - News). AAPL's PowerRating is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Oil Services HOLDR July 150 Puts (AMEX:OIH - News). OIH's PowerRating is 6.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Nasdaq Stock Market (NasdaqGS:NDAQ - News). NDAQ's PowerRating is 3.
Micron Technology (NYSE:MU - News). MU's PowerRating is 4.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
None today
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Lexmark International (NYSE:LXK - News). LXK's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: AAPL, GOOG, ICE, LXK, MU, NDAQ, OIH, stock options

Nasdaq Stock Market Inc. (NasdaqGS:NDAQ - News) is in talks to buy the Philadelphia Stock Exchange to gain a stake in the fast-growing options business, according a report on the Wall Street Journal Web site on Tuesday.
The report, citing unnamed sources, said the top U.S. electronic stock exchange had discussed a link up with the regional exchange for months, but a deal is not expected to be reached any time soon and may take weeks to put together.

Labels: Nasdaq Stock Market Inc., NDAQ, Philadelphia Stock Exchange

Advanced Medical Optics Inc. (NYSE:EYE - News), the Santa Ana, Calif., producer of ophthalmic surgical devices and eye-care products, reported a fourth-quarter loss compared with a year-earlier profit, primarily because of "recall-related sales declines, product returns and costs, and the tax effect of these issues." The loss was $7.6 million, or 13 cents a share, compared with net income of $2.3 million, or 3 cents, in the year-earlier period. A survey of analysts by Thomson Financial produced a consensus estimate of a loss of 5 cents a share.
Alliance Data Systems Corp. (NYSE:ADS - News) was downgraded to neutral from overweight at J.P. Morgan.
Amvescap (NYSE:AVZ - News), the Anglo-American owner of the AIM and Invesco lines of mutual funds, swung to a fourth-quarter profit of $163.5 million, or 20 cents a share, with revenue up 20% to $879 million. The company was affected by a $76 million restructuring charge in the year-ago quarter. Assets under management at Dec. 31 rose 20% to $463 billion, though it saw $4.5 billion in net outflows during the quarter.
Comstock Resources Inc. (NYSE:CRK - News) reported net earnings of $8.41 million, or 19 cents a share, compared with $41.3 million, or 96 cents a share, in the same period last year, as expenses rose sharply. The Texas-based energy company said oil and gas sales rose 35% to $126.8 million from $93.4 million.
Delphi Corp. (Other OTC:DPHIQ.PK - News) said its third-quarter loss more than doubled to $2 billion, or $3.51 a share, from $788 million, or $1.40 a share, in the year-earlier period. Delphi, which is in Chapter 11 reorganization, said the 2006 third quarter included $1 billion related to U.S. employee attrition payments. Troy, Mich.-based Delphi said revenue in the three months ended Sept. 30 fell to $6 billion from $6.3 billion in the year-ago period. Quarterly revenue from sources other than automaker General Motors Corp. stayed "essentially flat" at $3.4 billion compared with the previous year's $3.3 billion, Delphi said.
En Pointe Technologies Inc. (NasdaqCM:ENPT - News) said it swung to first-quarter profit of $272,000, or 4 cents a share, as the cost of sales fell. In the same period last year, the provider of business-to-business information technology products posted a net loss of $997,000, or 14 cents a share.
Expeditors International of Washington (NasdaqGS:EXPD - News) said its fourth-quarter net income fell to $62.6 million, or 28 cents a share, from $74.3 million, or 34 cents a share, a year ago. The year-ago period included a tax benefit of $21.7 million, or 10 cents a share. A Thomson Financial survey of analysts, on average, predicted earnings of 31 cents a share for the quarter. Analysts estimates usually exclude items. The Seattle logistics company's revenue rose 13% to $1.24 billion from $1.10 billion a year ago.
Ford Motor (NYSE:F - News) was downgraded to sell from neutral at Merrill Lynch. The firm cited valuation concerns following a run-up of almost 30% from the stock's mid-December low.
Genta Inc. (NasdaqGM:GNTA - News) said its fourth-quarter loss widened to $17.3 million, or 11 cents a share, from $10.2 million, or 9 cents, a year earlier. The Berkeley Heights, N.J. biopharmaceutical company said Tuesday revenue rose to $117,000 from $97,000. Total costs increased to $18.8 million from $10.8 million. Results for the latest period included costs of $5.28 million for the settlement in principle of class action lawsuit and the write-off of a $1.27 million prepaid royalty payment.
Hansen Natural (NasdaqCM:HANS - News) was downgraded to neutral at Goldman Sachs.
Hub Group Inc. (NasdaqGS:HUBG - News) said fourth-quarter net income rose, as operating margin gained, to $13.5 million, or 34 cents a share, from $10.1 million, or 25 cents a share, during the same period in the prior year. Analysts had expected per-share income of 32 cents.
Interactive Intelligence (NasdaqGM:ININ - News) shares tumbled after the Indianapolis-based software developer reported fourth-quarter net earnings of $1.56 million, or 8 cents a share, down from $1.77 million, or 10 cents a share, in the year-ago period. Revenue rose to $23.9 million from $17.5 million. Analysts polled by Thomson Financial were forecasting a per-share profit of 9 cents on revenue of $22 million.
IRobot Corp. (NasdaqGM:IRBT - News) said it swung to a net loss in the fourth quarter of $1.78 million, or 8 cents a share, as operating expenses rose. During the same period in the prior year, net income was $15,000, or breakeven on a per share basis.
Knot (NasdaqGM:KNOT - News) shares lost ground after the New York-based media company and wedding services provider reported a fourth-quarter net profit of $14.6 million, or 45 cents a share, up from $1.48 million, or 6 cents a share, last year. The results for the fourth quarter of 2006 included a non-cash income tax benefit and a gain from the settlement of a legal action. Revenue rose to $21.7 million from $12.8 million. Analysts polled by Thomson Financial were expecting a per-share profit of 11 cents on revenue of $21.8 million.
Liquidity Services Inc. (NasdaqGM:LQDT - News) filed with the Securities and Exchange Commission for a proposed secondary offering of roughly 5.6 million common shares. The Washington, D.C.-based online asset auction services provider plans to issue and sell 100,000 shares in the offering, while certain stockholders offer the remainder.
Macerich Co. (NYSE:MAC - News) said its fourth-quarter net income jumped to $147.9 million, or $1.98 a share, from $23.6 million, or 39 cents a share. Revenue for the quarter rose 14% to $233.8 million and funds from operations increased to $1.36 a share from $1.32 a share. The company said it benefited from strong occupancy levels and good tenant sales gains. It added it continued to improve its portfolio through the sale of three non-core assets and the acquisition of another East Coast mall.
MoSys Inc. (NasdaqGM:MOSY - News) said it swung to net income in the fourth-quarter of $567,000, or 2 cents a share, as royalty revenue increased. During the same period in the prior year, the net loss was $1.08 million, or 4 cents a share. Analysts had expected per-share earnings of 4 cents for the recent quarter.
Nasdaq Stock Market (NasdaqGS:NDAQ - News) said its fourth-quarter earnings rose to $63 million, or 43 cents a share, from $17.1 million, or 15 cents a share, a year earlier, as revenue rose 72%. The latest results included a post-tax gain of $29.4 million, or 19 cents a share, on foreign currency options contracts purchased to hedge the foreign exchange exposure on the failed bid for the London Stock Exchange. The quarter also included pretax charges of $4.6 million for restructuring and integration of INET. The New York electronic equities market said Tuesday that revenue grew to $447.3 million from $259.5 million. Analysts polled by Thomson Financial, on average, expected earnings of 24 cents a share on revenue of $424.8 million.
Omnicom Group (NYSE:OMC - News) reported fourth-quarter net income of $277.2 million, or $1.62 a share, up from $252.6 million, or $1.41 a share, earned in the final three months of 2005. The New York-based advertising giant's quarterly revenue reached nearly $3.22 billion from the prior year's $2.94 billion, up more than 9%. Domestic revenue rose 7%, Omnicom said. Analysts were looking for earnings of $1.62 a share on revenue of nearly $3.21 billion, according to estimates compiled by Thomson First Call. Omnicom's operating profit improved to $474.2 million from $426.1 million.
Osiris Therapeutics (NasdaqGM:OSIR - News) shares fell after the Baltimore-based company announced six-month interim results in its evaluation of Chondrogen for the regeneration of meniscus in the knee. The company said Chondrogen met its primary endpoint; however the Phase I/II trial did not demonstrate that Chondrogen resulted in a statistically significant increase in the volume of meniscus as compared to placebo. Osiris added that an improvement in baseline cartilage and joint condition was noted in patients treated with the stem cell drug that was not seen in patients that received placebo.
Radyne Corp. (NasdaqGS:RADN - News) reported fourth-quarter earnings $3.6 million, or 19 cents a share, down from $4.3 million, or 24 cents a share, as revenue dropped and expenses rose.
R&G Financial Corp. (NYSE:RGF - News) shares fell after the New York Stock Exchange said it late Monday that it will suspend trading of the San Juan, P.R.-based financial holding company's shares due to its failure to file its 2005 10-K by an April 3 deadline. The NYSE will suspend trading of R&G shares on Feb. 22. R&G, which is completing restatements for 2002 through 2004, announced separately that it now expects the restatements to reduce stockholders' equity by $185 million to $200 million after-tax, up from the $168 million to $183 million it had previously estimated.
Shaw Group Inc. (NYSE:SGR - News) said Ernst & Young LLP has notified the company of its decision to resign as Shaw's independent registered public accounting firm. Ernst & Young said it will resign effective upon the filing of Shaw's report for the quarter ending Feb. 28.
Ultra Clean Holdings Inc. (NasdaqGS:UCTT - News) reported fourth-quarter net earnings of $4.65 million, or 22 cents a share, compared with $683,000, or 4 cents a share, in the same period last year, on higher sales from the acquisition of Sieger Engineering Inc.
WNS Holdings Ltd. (NYSE:WNS - News) said its fiscal third-quarter net profit rose 21% to $7.1 million, or 17 cents a share, from $5.9 million, or 17 cents a share a year ago after an increase in the number of shares in circulation. Revenue at the firm more than doubled to $102 million from $49.8 million. Analysts polled by Thomson Financial were expecting earnings of 17 cents a share. The firm said it has increased client contracts more quickly than previously expected and has exceeded internal expectations for revenue growth. Growth in profit lagged revenue growth due to $2.4 million of deferred revenue recognized in the year-ago quarter, WNS said. For 2007 the firm increased its revenue guidance to slightly above $213 million from slightly above $208 million. It also reaffirmed its guidance for 2007 net income in the range of $30.5 million to $32.5 million.
Yum Brands Inc. (NYSE:YUM - News) posted a 2.7% increase in fourth-quarter profit as higher margins and international growth offset flat sales in the U.S. as well as the impact of an e. coli outbreak at its Taco Bell unit that sickened dozens last fall.

Labels: ADS, AVZ, CRK, ENPT, EXPD, EYE, F, GNTA, HANS, HUBG, ININ, IRBT, KNOT, LQDT, Mac, MOSY, NDAQ, OMC, OSIR, YUM

Labels: Nasdaq Earnings, Nasdaq Stock Market Inc., NDAQ

The stock market traded cautiously today, ultimately declining on a lack of economic news and few high-profile merger announcements or other news to encourage buying. Quite the opposite occurred, with two potential deals collapsing over the weekend. Investors were also wary ahead of Congressional testimony from Federal Reserve Chairman Ben Bernanke on Wednesday, at which time he'll discuss the state of the economy. Oil prices retreated sharply, closing under $58 a barrel, while the 10-year Treasury note also fell, with the yield rising two basis points to 4.80%.
The most prominent deal to collapse was the second failed attempt by the NASDAQ Stock Market (Nasdaq: NDAQ - News) to acquire the London Stock Exchange. The LSE's shareholders overwhelmingly rejected NASDAQ's $5.3 billion merger offer on Saturday, agreeing with management that the offer undervalued the European exchange. NASDAQ's shares declined -6% in today's trading. Also falling apart were merger talks between French-based pharmaceutical Sanofi-Aventis (NYSE: SNY - News) and Bristol Myers-Squibb (NYSE: BMY - News), according to published reports in London over the weekend. That news sent the former slightly higher but the latter down -3%. Elsewhere, Canada-based aluminum producer Novelis (NYSE: NVL - News) added 13% after it agreed to be acquired by Indian metals producer Hindalco Industries for $3.6 billion. Four Seasons Hotels (NYSE: FS - News) slid -3% on news it would go private in a management-led buyout.
In business news, biotech Onyx Pharmaceuticals (Nasdaq: ONXX - News) skyrocketed after it reported a successful trial that extends the uses of its principal product. The California company's market value nearly doubled, gaining 97%, after it announced that its cancer treatment Nexavar "significantly" improved the survival rates of patients with advanced liver cancer. The Phase III trial was stopped early so that all patients in the trial could have access to the drug. Nexavar, jointly marketed with Bayer (NYSE: BAY - News), is presently only approved for the treatment of kidney cancer. Analysts speculated that Bayer might move to acquire Onyx based on the trial results.
Partly rebounding from recent selling was Apple (Nasdaq: AAPL - News). The stock's 2% climb today was fueled in part by an upgrade by Citigroup, which raised its rating on Apple to "buy" from "hold." Citigroup cited the expectation for significant new product releases from Apple as the basis for its recommendation. Citigroup's change is in contrast to that of Goldman Sachs, which removed Apple from its "Americas Conviction Buy List" last Thursday due to "negative speculation" in advance of Apple's launch of the iPhone.
Elsewhere, new Home Depot (NYSE: HD - News) CEO Frank Blake reversed a key strategic direction pursued by the company's former boss Robert Nardelli. The home repair retailer said it would examine strategic alternatives for its wholesale supply business. Under Nardelli, Home Depot expanded into the lower-margin wholesale business as part of a diversification plan. Large shareholders had long criticized the move as a distraction from Home Depot's core retail business. The stock finished up 1%.
By the BullMarket.com Staff

Labels: AAPL, BAY, BMY, FS, HD, NDAQ, NVL, ONXX, SNY

Here are 7 stocks for traders for Tuesday from TradingMarkets.com:
Priceline.com (NasdaqGS:PCLN - News) beat earnings on Monday after the close, with $0.58 EPS over an expected $0.40 EPS. PCLN's PowerRating is 5.
Anadigics (NasdaqGM:ANAD - News) beat earnings Monday afternoon, announcing $0.06 EPS over an expected $0.00 EPS. ANAD's PowerRating is 5.
Advanced Medical Optics (NYSE:EYE - News) reports quarterly earnings Tuesday morning, with analysts looking for -$0.05 EPS. EYE's PowerRating is 4.
Ceridian (NYSE:CEN - News) is expected to report $0.33 EPS on Tuesday before the bell. CEN's PowerRating is 5.
Expeditors International (NasdaqGS:EXPD - News) announces earnings on Tuesday before the market opens; watch for $0.31 EPS. EXPD's PowerRating is 4.
When KB Home (NYSE:KBH - News) reports quarterly earnings on Tuesday morning, look for $1.86 EPS. KBH's PowerRating is 7.
Analysts are watching for NASDAQ (NasdaqGS:NDAQ - News) to report $0.24 EPS tomorrow morning before the market opens. NDAQ's PowerRating is 5.
PowerRatings are courtesy of PowerRatings.net
Check out http://www.stockhustler.com

Labels: ANAD, CEN, EXPD, EYE, KBH, NDAQ, PCLN

On a down day for the markets, shares of various exchanges declined after the bid by the Nasdaq Stock Market to buy the London Stock Exchange fell through.
Nasdaq shares were the hardest hit, falling $2.18, or 5.7 percent, to close at $35.10, after earlier slumping as low as $34.02. Shares of NYSE Group Inc., parent of the New York Stock Exchange, closed down $3.65, or 4 percent, to $88.42.
After word broke over the weekend that Nasdaq's hostile takeover attempt of the LSE, there was some speculation that NYSE Group might take a stab at the British exchange, either through an acquisition or, more likely, an alliance similar to the pact recently reached with the Tokyo Stock Exchange.
Also declining were shares of Nymex Holdings Inc., parent of the New York Mercantile Exchange. Nymex gave up $1.85 to $125.15 on the NYSE.
Shares of Cbot Holdings Inc., which operates the Chicago Board of Trade, the main U.S. bond market, fell $2.93, to $168.32 on the Big Board. And shares of Chicago Mercantile Exchange Holdings Inc., which is due to combine with the Chicago Board of Trade this year, fell $9.25, to $564 on the NYSE.
Also down on the day were shares of the InterContinental Exchange Inc., the electronic futures market that bought the New York Board of Trade last year. ICE shares fell $5.79, or 3.9 percent, to $143.57 on the NYSE.
Shares of the electronic options exchange International Securities Exchange Holdings Inc. gave up $1.37, or 3 percent, to $44.53 on the NYSE.
Published by AP

Labels: BOT, CME, ICE, ISE, NDAQ, NMX, NYX

Administaff (NYSE:ASF - News) said its fourth-quarter net income increased 22% to $13.4 million, or 47 cents a share, from $10.9 million, or 39 cents a share, a year earlier. The provider of human resources services said Monday revenue rose 15% to $352.6 million from $305.6 million. The company's average number of worksite employees paid per month advanced 11% and revenue per worksite employee per month rose 4.1%. Analysts surveyed by Thomson Financial, on average, expected the Houston company to earn 44 cents a share on revenue of $357.6 million for the final quarter of 2006. Administaff's board authorized the repurchase of up to 1 million more shares, bringing the total authorization to 9.5 million shares.
Arch Chemicals (NYSE:ARJ - News) reported a fourth-quarter loss of $28.3 million, or $1.18 per share, up from a year-ago profit of $3.6 million, or 15 cents a share. The latest results include a number of items, most notably an impairment charge of $23.5 million related to the write-down of goodwill associated with the company's industrial coatings business. Sales rose in the latest three months to $315.9 million from $278.3 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for loss of 9 cents a share in the December period. Looking ahead, the Norwalk, Conn.-based Arch said it expects earnings from continuing operations of $1.90 to $2 per share for fiscal 2007 with sales growth of 3% to 5%. For the first quarter, the company anticipates earnings from continuing operations of 10 to 15 cents a share. Wall Street's current consensus estimates are for earnings of $1.95 a share for 2007 and 30 cents a share for the March period.
Boston Scientific (NYSE:BSX - News) was downgraded by Bear Stearns to peer perform from outperform, as uncertainties about the drug-eluting stents market and competitive headwinds make sales growth and cost reductions difficult. Analyst Rick Wise said the fundamentals for the company's peers look better, and therefore he upgraded St. Jude Medical to outperform from peer perform, citing the company's strong product pipeline, its recent sales force investment and cost reduction opportunities.
Boyd Gaming Corp. (NYSE:BYD - News) was downgraded to market perform from outperform at Wachovia Securities.
Bristol-Myers Squibb (NYSE:BMY - News) and Sanofi-Aventis (NYSE:SNY - News) have reportedly scuttled merger talks, according to U.K. newspaper The Times (of London).
Calamos Asset Management Inc. (NasdaqGS:CLMS - News) said total assets under management as of Jan. 31 fell to $44.5 billion from $44.7 billion the previous month. The company said its mutual-fund assets fell to $33.1 billion from $33.3 billion, while separate-accounts held steady at $11.4 billion.
China BAK Battery Inc. (NasdaqGM:CBAK - News) reported fiscal first-quarter net earnings of $3.58 million, or 7 cents a share, up from $3.19 million, or 7 cents a share, in the year-ago period. Revenue in the three months ended Dec. 31 rose to $43.1 million from $26.1 million.
Chindex International (NasdaqCM:CHDX - News) shares fell after the provider of healthcare products and medical services in China reported a fiscal third-quarter net profit of $679,000, or 9 cents a share. In the same quarter last year, the company posted a net loss of $463,000, or 7 cents a share. Revenue rose to $30.3 million from $22.6 million.
Forward Air Corp. (NasdaqGS:FWRD - News) was downgraded to hold from buy at A.G. Edwards.
Eddie Bauer Holdings Inc. (NasdaqGM:EBHI - News) said its President and Chief Executive Fabian Mansson has resigned. The apparel retailer said Howard Gross, a member of the board, has been named interim CEO.
Embarq (NYSE:EQ - News) was downgraded to sell from neutral at Goldman Sachs.
Holly Corp. (NYSE:HOC - News) said fourth-quarter earnings rose to $47.7 million, or 84 cents a share, from $39.9 million, or 65 cents a share, a year earlier. Excluding discontinued operations, earnings would have increased to 86 cents a share from 63 cents a share. Analysts surveyed by Thomson Financial had been expecting earnings of 83 cents a share, on average. Revenue grew 15% to $938.1 million from last year's $812.4 million, with refined product volumes increasing 10%.
MedCath Corp. (NasdaqGM:MDTH - News) was downgraded to market perform from outperform at Wachovia Securities. "While we expect MedCath to grow faster than the rest of the hospital industry, we believe the market is already discounting that superior growth," Analyst William Bonello said in a research note. "Also, the threat of Medicare cuts to hospitals could keep a lid on multiples as the year progresses."
Micrus Endovascular (NasdaqGM:MEND - News) shares dropped after the San Jose, Calif.-based medical device maker reported a fiscal third-quarter net loss of $1 million, or 7 cents a share, compared with a net loss of $1.65 million, or 12 cents a share, in the year-ago period. Revenue rose to $15.5 million from $8.09 million.
Mercury General (NYSE:MCY - News) said fourth-quarter earnings rose 8.5% to $50.1 million, or 91 cents a share, from $46.2 million, or 84 cents, a year earlier. Analysts polled by Thomson Financial expected, on average, fourth-quarter earnings of $1.17 a share. The Los Angeles-based life insurance company said net realized investment gains increased to $1.34 million, or 2 cents a share, from $457,000, or a cent a share, in the year-ago period. Net premiums written rose to $740.7 million from $728 million, while net premiums earned rose to $753.9 million from $732.9 million.
Nam Tai Electronics Inc. (NYSE:NTE - News) posted a fourth-quarter loss of $2.3 million, or 5 cents a share, down from a year-ago profit of $12.7 million, or 29 cents a share. On a non-GAAP (generally accepted accounting principles) basis, excluding items, the company earned $12.3 million, or 28 cents a share, in the latest quarter. Sales fell 7.1% in the latest three months to $229.6 million from $247.2 million in the same period a year earlier. The average estimate of analysts polled by Thomson Financial was for a profit of 28 cents a share in the December period. The stock closed Friday at $14.26, down 14 cents.
The Nasdaq Stock Market (NasdaqGS:NDAQ - News) said it failed to secure sufficient support for its planned takeover of the London Stock Exchange.
Nuance Communications (NasdaqGS:NUAN - News) was downgraded to hold from buy at Needham & Co., which cited valuation concerns.
Rainmaker Systems (NasdaqGM:RMKR - News) said it plans to release its fourth-quarter results after the closing bell.
Shares of Sonic Automotive (NYSE:SAH - News) slumped after Bear Stearns downgraded the automotive retailer to peer perform from outperform, due primarily to valuation. Analyst Michael Geoghegan said that with the stock price closing in on his $33 price target, and with the valuation discount relative to its peers narrowing, he urged investors to "take profits."
Published By Michael Baron of MarketWatch

Labels: ARJ, ASF, BMY, BSX, BYD, CBAK, CHDX, CLMS, EBHI, EQ, FWRD, HOC, MCY, MDTH, MEND, NDAQ, NTE, NUAN, RMKR, SNY

Wall Street extended its losses Monday as investors awaited a stream of key economic data this week and were left disappointed by the collapse of several closely-watched acquisition deals.
The markets, which pulled back last week amid concern about inflation's impact on interest rates, traded cautiously with Federal Reserve Chairman Ben Bernanke set to speak before Congress on Wednesday. Government data due on Friday will shed new light on wholesale inflation and the state of the housing market.
Unlike recent Monday mornings, there was a dearth of acquisition announcements to give the market a lift. Instead, investors had to deal with news that the Nasdaq Stock Market Inc. failed in its bid to buy the London Stock Exchange and that French drugmaker Sanofi-Aventis called off talks for a possible deal with Bristol-Myers Squibb Co.
Onyx Pharmaceuticals Inc. and Bayer AG advanced after the companies released data from a clinical trial that shows an experimental drug is effective in fighting liver cancer. Apple Inc. moved higher after being upgraded in anticipation of big product launches set this year.
Wall Street fell last week on concerns about higher oil prices and the possibility inflation could lead to higher interest rates. With fourth-quarter earnings reports nearly over, investors have traded hesitantly as they wait for some kind of catalyst to give them direction
In midmorning trading, the Dow Jones industrial average fell 13.62, or 0.11 percent, to 12,567.21.
Broader stock indicators declined. The Standard & Poor's 500 index was down 2.93, or 0.20 percent, at 1,435.13 and the Nasdaq composite index retreated 8.62, or 0.35 percent, to 2,451.20.
Bonds edged lower ahead of economic data due out this week, with the yield on the benchmark 10-year Treasury note rising to 4.79 percent from 4.78 percent late Friday. The dollar was mixed against other major currencies, while gold prices dropped.
Oil, which advanced last week as cold weather was seen increasing heating demand, was down on the New York Mercantile Exchange. A barrel of light sweet crude fell $1.21 to $58.68.
Nasdaq, the world's largest electronic equities exchange, edged lower after LSE shareholders did not approve its bid to acquire the British bourse. Shares fell $1.82, or 4.9 percent, to $35.38. Bristol Myers tumbled $1.41, or 4.9 percent, to $27.11 after a report that Sanofi-Aventis called off deal talks amid a disagreement over price.
But aluminum producer Novelis Inc. rose $5.31, or 13.7 percent, to $43.85 after it agreed to be bought by India's Hindalco Industries Ltd.
Apple, which recently unveiled plans to roll out its long-anticipated iPhone, rose $1.06 to $84.33 after it was upgraded by a Citigroup analyst. Meanwhile, good news about a potential treatment for liver cancer sent Bayer up 17 cents to $58 and Onyx up $6.42, or 52.3 percent, to $18.68.
The Russell 2000 index of smaller companies was down 2.06, or 0.26 percent, at 805.05.
Overseas, Japan's markets were closed. In afternoon trading, Britain's FTSE 100 was down 0.31 percent, Germany's DAX index fell 0.54 percent