Thursday Morning, June 13th

   Dow Stock News

General Motors Corp. (GM) is pursuing a two-tier wage system that would allow the company to pay new hires less than veterans as negotiations heat up between the UAW and Detroit's automakers, sources close to the bargaining said, The Detroit News reported in its Thursday editions. - MarketWatch

McDonald's Corp. (MCD) on Wednesday raised its annual dividend by 50 percent as part of a plan to return up to $17 billion to shareholders through 2009, sending its shares up more than 2 percent. - Reuters

3M Co. (MMM) has agreed to buy Abzil Industria e Comercio Ltda., a Brazilian orthodontic products company. Financial terms weren't disclosed. 3M, a St. Paul, Minn. technology company, expects the deal to close in the fourth quarter. - MarketWatch

The Wall Street Journal reports that Sun (JAVA) would install Microsoft (MSFT) Windowns on some of its servers.

The FT writes that the Nintendo Wii has passed the Microsoft (MSFT) Xbox as the leading game console in total sales.

 MRK Merck Banc of America Sec Upgraded from Neutral to Buy $56 to $57
 GM General Motors Citigroup Initiated at Buy $41
 MCD McDonald's UBS Price Target Raised Buy $59 to $60
 INTC Intel UBS Price Target Raised Buy $30 to $32

   Ice Man Stocks

Breakouts the Ice Man may consider trading:

JKHY - 27
TEVA - 44.50
JEC - 70

UA - 65
CHDX - 21
ARUN - 18.15
CCRT - 22.10
CSE - 18.30
ALV - 58.35
MTH - 17.40
WMS - 30

WX - 25 Gap

Breakdown Shorts:

SHLD - Breaking 128 = 117.27 Gap

   Media Commentators

Cramer's Comments:

Bullish: CSCO, GOOG, FCX, AMZN, EBAY, PG, KBR, FWLT, CETV

Zanger Report:

INdices might be in a treading range until the Fed meeting.

SPX - todays Doji bar might lead to lower prices ahead

WYNN and LVS seem to be leading the market right now.

FWLT - up from my buy point at one point 6.

MA - Nice move up today but did not move through the trendline and buypoint.  137-139 buypoint with volume.

FXI is creating a bull flag like pattern and should be making new highs soon. 153.50 is buy point

OIH touched the buy point today but did not go through it.  Probably will get going soon

RIG - higher prices could be coming soon.  Buy point is 109 with volume.

RIMM - rising channell suggests that owning the stock here and now should pay off over time

DRYS - take some profits in here.  Needs some rest for a few days or a few weeks.

GRMN - continues to rest.  SHould move higher.  I own it.

   Ice Cold Commentators

Break Man Video Summary:

Break out buy (or short sell) watch list for short term gains September 13 includes: SYK, ERES, EMC, EPL, ERS, FACE, GRRF, GNA, IGLD, IRIS.

Several candidates for break out or short sell  plays for at least short term gains by buying the break out (or selling the break down) on good volume and closing at least some on the  first day.

   CNBC Fast Money Review

1. $80 OIL

  The headline: Oil Touches Record Intraday High Of $80.18 After Supplies Fall More Than Expected.
  Najarian: commodities such as oil were the main drivers of Wednesday´s market.
  Finerman: likes Conoco as a beneficiary of $80 oil.
  Adami: recommends APA as a trade on crude.

  2. THE BROTHERS BREAK OUT

  The headline: LEH, One Of Worst-Performing Financials This Year, Jumps 3%.
  Najarian: believes the brokers have hit a bottom. He feels LEH earnings will be a big “tell" for the financial community.
  Finerman: says she thinks Lehman´s balance sheet is a big unknown.
  Macke: feels the heart of the problem is that the brokers´ themselves don´t know how badly they´re involved in the subprime slime.

  3. BIOTECH UPDATE

  The headline: AMGN Continues Run Today On Positive Anemia Drug News.
  Najarian: says he doesn´t like AMGN. He feels it´s time to get out of this stock.

  4. BIG CHANGES AT BEAR STEARNS

  Mysteriously this week, a British born billionaire named Joseph Lewis took a 7% stake in Bear Stearns. What's behind this purchase and are big changes afoot at the Wall Street bank hurt most by the collapse in the mortgage market?
  Charlie Gasparino: says many Wall Street investors are speculating that Bear Stearns CEO Jimmy Kane prodded Lewis to buy this stake; but according to Gasparino that´s not accurate.Gasparino believes Joseph Lewis bought the shares through his broker because Lewis thinks it´s a good deal. In other words, Gasparino thinks it´s a takeover play.
  Najarian: thinks a takeover play makes sense.
  Karen Finerman: recommends looking at the Jan ´08 “out of the money" options.
  Gasaprino: tells Karen he wouldn´t risk a penny on BSC!
  On a related note, Dylan asks Gasaprino about Lehman earnings?
  They´re going to be bad, speculates Gasparino. However he adds there´s a belief on The Street that GS earnings will be strong.

  5. BROKEN BABY BOOMERS

  Pete Najarian brings you a trade so good it will leave you weak in the knees. Najarian explains that 78 million Baby Boomers are nearing retirement age and consequently the market for orthopedic devices promises to see explosive growth. He adds demand for knee replacement will soar 673% by 2030 while demand for new hips will jump by 174%. Najarian believes with the soaring demand for implants, it´s the device makers who will see a windfall.
  Najarian: the trades are ZMH, SYK, JNJ and SNN.
  Adami: likes ZMH best.
  Finerman:  prefers JNJ.
  Macke: thinks ELY is a buy because Boomers are more agile in their golden years.

  6. POPS AND DROPS

  IGT popped 3%: Adami likes this stock.
  RMBS popped 6%: Najarian says options volume suggests to him that RMBS could be a takeover target.
  SIRI and XMSR popped 3%: Macke thinks the stocks could move much higher.
  JOSB popped 4%: Finerman says the consumer is not dead!
  OWW popped 6%: Macke doesn´t like this stock.
  MAT popped 4% and HAS popped 2%: Macke likes MAT.
  SNDK dropped 5%: Najarian expects the stock to go higher.7.

  7. YOUR FIRST MOVE FOR THURSDAY

  Macke: recommends DOG as a bet against The Dow.
  Adami: likes ZMH.
  Finerman: prefers JNJ.
  Najarian: says STJ is a buy.

   News and Events Digest

Breaking News

Apollo Investment Corp. (AINV) said Thursday that it's priced a public offering of 13 million shares at $20 a share. The group said it expects to raise gross proceeds of $260 million from the offer, which is due to close Sept. 18. The proceeds will be used to repay money owed under its senior credit facility and to make investments in portfolio companies. - MarketWatch

Shares of Alcatel-Lucent sank nearly 13% on Thursday after the world's largest maker of telecommunications equipment slashed its sales and profit forecast for the year, citing weak wireless spending in North America. - MarketWatch

EnCana Corp. (ECA) said it has reached an agreement to sell all of the Canadian energy company's remaining interests in Brazil for about $165 million in cash, before closing adjustments. Terms call for a pair of Mumbai, India-based companies, Videocon Industries Ltd. and a Bharat Petroleum Corp. subsidiary, to buy out EnCana Brasil Petroleo Limitada. With this deal, EnCana said it's exiting the Brazilian oil market. "This sale reflects the continuation of our focus on North American unconventional natural-gas and integrated oilsands resources," said Randy Eresman, president and chief executive of EnCana. The company said the deal's expected to generate an estimated after-tax gain of about $75 million. - MarketWatch

low-cost airline Ryanair Holdings PLC (RYAAY) Thursday said that it is prepared to invest $840 million in developing routes and services from Milan's Malpensa airport, as it seeks to expand in Italy, intensifying competition with struggling flag-carrier Alitalia SpA (AZA.MI). - MarketWatch

Isis Pharmaceuticals Inc. (ISIS) said Thursday that it is collaborating with Johnson & Johnson's (JNJ) Ortho-McNeil Inc. to research and develop treatments for metabolic diseases, including Type 2 diabetes. Carlsbad, Calif.-based Isis will give Ortho-McNeil rights to two diabetes development candidates, while Ortho-McNeil will help fund a joint effort to find new treatments for diabetes and obesity. According to terms of the collaboration, Isis will receive a $45 million upfront licensing fee from Ortho-McNeil and could get more than $230 million in milestone payments and royalties on sales. - MarketWatch

Titanium Metals Corp. said Wednesday agreed to a 10-year contract worth more than $700 million to supply titanium products to United Technologies Corp. and its units. - AP

Dick's Sporting Goods Inc. (DKS) on Thursday said its board approved a two-for-one stock split in the form of a stock dividend. The Pittsburgh-based sporting goods retailer said the split will be effected by issuing record holders one additional share of common stock for every share of common stock held, and one additional share of class B common stock for every share of class B common stock held on the record date of Sept. 28. The additional shares are expected to be distributed on or about Oct. 19. - MarketWatch

Media Summary:

According to Reuters, Sprint (S) will launch a wireless shopping network to enhance its revenue.

Reuters writes that supply worries are keeping the price of crude high.

Reuters writes that a federal court stayed part of a ban on import of certain handsets containing Qualcomm (QCOM) chips.

Reuters writes that Alcatel-Lucent (ALU) has cut its full year revenue targets.

The Wall Street Journal writes that the head of the UAW said the setting up a health fund run by the union with money from the Big Three is something that he would consider.

The Wall Street Journal reports that Carlox Ghosn defended his decision to run both Renault and Nissan.

The Wall Street Journal found that private equity firms make most of their money from management fees that they charge their investors.

The Wall Street Journal writes that a fall in imports of Chinese goods could hurt some corporate profits.

The New York Times writes that European car makers are betting that US consumers will accept diesels as an alternative to Japanese hybrids.

Barron's writes that the CFO of Syntax-Brillian (BRLC) resigned and shares fell.

Economic Data:

8:30 Initial Claims

2:00 Treasury Budget

   Upgrades and Downgrades by Sector:

Beverages
 PAS PepsiAmericas HSBC Securities Downgraded from Neutral to Underweight

Biotech
 ILMN Illumina Caris & Company Price Target Raised Buy $55 to $60
 GTXI GTX First Albany Initiated at Buy $26
 BIIB Biogen Idec UBS Downgraded from Neutral to Sell

Computer Hardware
 GTW Gateway Citigroup Upgraded from Sell to Hold
 BRCD Brocade RBC Capital Mkts Price Target Raised Sector Perform $8 to $9

Computer Software
 EDS EDS Stifel Nicolaus Cut Price Target Buy $30 to $28

Electronics - TV's
 BRLC Syntax-Brillian Collins Stewart Downgraded from Buy to Market Perform
 BRLC Syntax-Brillian Brean Murray Cut Price Target Buy $15 to $8

Finance Companies
 PRU Prudential Credit Suisse Upgraded from Neutral to Outperform

Foods
 UL Unilever PLC Lehman Brothers Upgraded from Underweight to Equal-weight

Healthcare Equipment
 CTEC Cholestech Roth Capital Coverage Dropped

Healthcare Facilities
 PDX Pediatrix Medical RBC Capital Mkts Price Target Raised Top Pick $64 to $73
 LHCG LHC Group Wachovia Initiated at Outperform

Hotels and Motels
 MAR Marriott Stifel Nicolaus Initiated at Buy $53

Major Pharmaceutical
 ACL Jeffries Price Target Raised $160

Manufacturing - Tires
 GT Goodyear Tire Citigroup Initiated at Buy $35

Motor Vehicles
 AXL American Axle Citigroup Initiated at Hold $24
 BWA Borg Warner Citigroup Initiated at Buy $97
 F Ford Motor Citigroup Initiated at Hold $8
 LEA Lear Citigroup Initiated at Buy $39
 MGA Magna Citigroup Initiated at Buy $103
 SMP Standard Motor BB&T Capital Mkts Initiated at Buy $13
 TEN Tenneco Citigroup Initiated at Sell

Oil and Gas
 KWK Quicksilver Resrcs Fortis Bank Price Target Raised Buy $55 to $58
 FTI FMC Tech JP Morgan Initiated at Overweight
 HERO Hercules Offshore Calyon Securities Initiated at Add $31

Paper and Packaging
 MWV MeadWestvaco Credit Suisse Upgraded from Neutral to Outperform
 BKI Buckeye Tech Citigroup Downgraded from Buy to Hold

Regional Banks
 ACBA American Community Bancshares Stifel Nicolaus Downgraded from Buy to Hold

REITs
 TMA Thornburg Mortg Piper Jaffray Upgraded from Underperform to Market Perform
 TMA Thornburg Mortg Deutsche Securities Upgraded from Sell to Hold $10 to $12.50

Retail Trade
 EBAY Smith Barney says Valuation Attractive

Semiconductors
 IFX Infineon Lehman Brothers Upgraded from Equal-weight to Overweight
 NVDA DBAB Price Target Raised $43
 ATHR Atheros Communications Banc of America Sec Initiated at Buy $38
 BRCM Broadcom Banc of America Sec Initiated at Buy $42
 SLAB Silicon Labs Jefferies & Co Initiated at Buy $49
 STM STMicroelectronics Lehman Brothers Downgraded from Overweight to Underweight
 AMD Advanced Micro UBS Cut Price Target Neutral $16.50 to $15

Transportation
 RAIL Freightcar America Jefferies & Co Cut Price Target Hold $47 to $37
 MCX MC Shipping Cantor Fitzgerald Coverage Dropped