Dow Stock News

Home Depot reported a 27% decline in quarterly net income and cut its fiscal-year earnings guidance, as the housing market continued to plague the company's bottom line. - WSJ

Wal-Mart Stores Inc. (WMT), reported net income of $2.86 billion, or 70 cents a share, for the third quarter ended Oct. 31, up from $2.65 billion, or 63 cents, earned in the same period last year. Based in Bentonville, Ark., the Dow Jones Industrial Average component generated quarterly sales of $91.95 billion, up from the prior year's $84.47 billion. Earnings from continuing operations improved to 70 cents a share from 62 cents in the year-earlier third quarter. Analysts, on average, had been looking for earnings of 67 cents a share on revenue of $91.67 billion, according to estimates compiled by Thomson Financial. - MarketWatch

JPM - Smith Barney believes they have minimal risk to write downs and maintain $57 price target;

The Wall Street Journal writes that Wal-Mart (WMT) is changing its healthcare plan in a way that will help a greater number of workers.

THe New York Times writes that Saleforce.com want to become the new Microsoft (MSFT), trying to get thousands of programmers to write applications on top of its software.

   Ice Man Stocks

Regular Trades the Ice Man may consider:

NVR -500
ITMN - 17.10
RUS - 18

Depressed stocks the Ice Man may buy:

PBR - 90.40 Gap
SLB - 86 Gap
APOL - 66 Gap
USO - 69.60 Gap
PAAS - 29.80 Gap
FSLR - 167.25 Gap
DRYS - Breaking 80, 76 Gap
RGLD - 27 Gap
AU - 42.90 Gap
SA - 28.30 Gap
GIGM - 14.75
AAPL - 144.15 Gap

Dollar Man Ideas:

LEV - 2.40

   Media Commentators

Cramer's Comments:

Bullish: APA, WYE

   Ice Cold Commentators

Break Man Video Summary:

Break out buy (or short sell) watch list for short term gains November 13 includes:  WWAT, ABT, JNJ, NVTL, EEFT, AVNX, BBI, UTI, UEC.

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.

Swing Man Market Recap:

I just returned home late Monday evening so the update will be brief and to the point.  The much discussed negative divergences on the NDX and Nasdaq have led to massive selling in these indexes (and have weighed heavily on the entire market) over the past four trading sessions.  As you will see in the charts below, the major indexes are now approaching important support levels.  Specifically, you should watch the 1430 area on the SPX and the 668 area on the OEX over the next few days.  If these areas are breached to the downside, then the market is likely to retest the August lows.  Short term momentum is oversold and there are some slight positive divergences in place on the 60 minute charts.  Thus, the table is set for the market to make at these levels, but we must not assume anything.  Instead, let the market show us before we take action.

For several weeks now, we have been insistent on keeping positions to a minimum.  Due to the negative divergences and poor breadth, we have remained defensive across all sectors and have hoarded cash throughout this period.  Even the commodity areas are now experiencing selling.  On Friday, I pointed out the negative divergences that were forming on the Gold Indexes and the Iceman brought this to your attention.  Monday, Gold bullion tumbled $36.00 while the major gold indices lost over 7 percent.  Many commodity stocks were annihilated on heavy volume.  For awhile, the commodity area has been immune to the selling, but that sure changed today.  Thus, with risk levels elevated across most investment categories, our reasoning for remaining heavily positioned in cash.

Overall, the action in the market has been extremely weak of late and the next few days will be very telling.  Be aware of the critical support areas below and let´s see how things resolve over the coming days.

Good Trading.

   CNBC Fast Money Review

1. THE SELLING CONTINUES
  
The headline: S&P 500 Falls a 4th Day, Losing 1% as Technology, Commodity Shares Slide.
  
Dylan Ratigan explains that the market split down the middle Monday with 4 S&P sectors closing up and 5 closing down. Positive S&P sectors:
financials, healthcare, consumer staples, consumer discretionary. Negative S&P sectors: tech, energy, utilities, materials, industrials
  
Pete Najarian says the volatility index never waned during Monday´s trading. He feels very bearish because the market traded poorly at the end of the day´s session.
  
Jeff Macke believes the market should have bounced on Monday but didn´t. He too feels bearish.
  
Guy Adami suggests the Dow
drops to 12,700.
  
Karen Finerman sees it differently. She explains the day´s trading could have been much worse. She finds that encouraging.
  
2.VIOXX ROCKS STOCKS
  
The headline: MRK, Big Pharma Keep Momentum After Last Week's $4.85B Vioxx Settlement
  
Guy Adami tells investors, if you want to be in drugs, buy JNJ.
  
Jeff Macke adds a nice defensive portfolio would be MRK, PG and CHD).
  
3. TECH STILL TUMBLING
  
The headline: As Wall Street Sours On The Tech Trade The NASDAQ Drops.
  
Pete Najarian recommends keeping an eye on BEAS. He doesn´t think IBM will bid for the company. No one other than Oracle (ORCL) will acquire BEAS, he says.
  
Guy Adami likes HPQ going into earnings.
  
4.ONE BAD TRADR MAY BOOST THE OTHER ONE
  
ETFC lost 60% of its value Monday. Could their pain be your
gain?
  
Karen Finerman explains E*Trade shed more than half of market value in large part because a Citi analyst warned of possible bankruptcy. (On Friday the online brokerage revealed it had seen a significant deterioration in the value of its holdings of securities backed by home mortgages, and will take a writedown in the fourth quarter.)
  
E*Trade´s troubles are fantastic for AMTD says Finerman and for a trade she recommends getting long AMTD. Finerman also likes SCHW.
  
5. WAL-MART, HOME DEPOT EARNINGS
  
Merrill Lynch economist David Rosenberg says the last time he's seen a drop in consumer confidence of this magnitude during this crucial Holiday shopping season, the economy was in a recession. So why were retail stocks higher, Monday?
  
Jeff Macke anticipates upcoming retail earnings will “stink’. Don´t catch a falling knife, he says. If you must buy retail stocks, Macke recommends sticking with best of breed. He likes COST and TGT on any dip.
  
Karen Finerman agrees. She explains that she´s long HD, but as a long term value play.
  
Guy Adami says there´s a trade setting up in CWTR and he´ll give it when it´s ready.
  
6. POPS AND DROPS
  
CSCO popped 2%: Adami thinks CSCO is a buy with a stop out below $29.
  
AMR, LCC & DAL all popped more than 5%: Adami recommends selling the rally.
  
SBUX popped 3%: Finerman says it was oversold and underowned.
  
FCX dropped 10%: Adami says This isn´t where you want to be.’
  
TSN dropped 3%: Macke thinks it´s okay to buy this stock.
FSLR dropped 14%: Najarian says it´s slightly overheated.
  
7. YOUR FIRST MOVE FOR TUESDAY
  
Macke likes PG as a defensive play.
  
Adami thinks CSCO is a buy on the recent dip.
  
Both Pete Najarian and Karen Finerman recommend buying AMTD on weakness at ETFC.

   News and Events Digest

Breaking News

Rockwood Holdings Inc. (ROK) said that funds affiliated with Kohlberg Kravis Roberts & Co. and DLJ Merchant Banking Partners III, as well as certain management stockholders, have agreed to sell 10 million shares of Rockwood. The shares will be sold at $34.00 per share and the company will not receive any proceeds from the offering, it said. Credit Suisse, Goldman, Sachs & Co., KKR Capital Markets and UBS Investment Bank are joint book running managers of the offering. - MarketWatch

China Mobile Ltd. is in talks with Apple Inc. about bringing the iPhone to China, but no agreement has been reached yet, the telecom's chief executive said Tuesday. - AP

Media Summary:

According to Reuters, News Corp (NWS) CEO Rupert Murcoch says the company is having a strong quarter.

Reuters writes that Yahoo! (YHOO) has entered partnerships to expand its mobile business across Asia.

Reuters writes that the head of OPEC stated that the cartel will make no supply decisions until December.

The Wall Street Journal writes that Bershire Hathaway (BRK) may benefit if bond insurers seek reinsurance to keep their credit ratings high.

The Wall Street Journal writes that the stock boom in China has pushed it financial infrastructure to its limits.

The Wall Street Journal writes that credit agency Fitch downgraded the credit ratings of $37 billion in CDOs.

The head of agency Publicis warned that internet ad revenue cannot support the valuations of companies like Facebook.

Barron's writes that the head of Echostar (DISH) says that the country is probably in a recession.

Bloomberg writes that Vodafone's (VOD) first half numbers beat analyst estimates.

M&A Activity:

Regeneration Technologies Inc. (RTIX) has agreed to merge with Tutogen Medical Inc. (TTG) in a tax-free, stock-for-stock exchange deal worth about $263 million in total equity value. Under the agreement, shareholders of Tutogen, an Alachua, Fla., medical products company, will receive 1.22 shares of newly issued Regeneration common stock for each share of Tutogen common stock they own. Upon closing, shareholders of Regeneration, also an Alachua, Fla., medical products company, will own about 55% of the combined company. The combined company will be headquartered in Alachua, Fla., with current Regeneration Chairman and Chief Executive Brian Hutchison serving as chief executive. Regeneration expects the merger to close in the first quarter of 2008. - MarketWatch

IPO Central:

News:

Private-equity group KKR & Co. re-filed its initial public offering prospectus with the Securities and Exchange Commission, with the buyout group still looking to raise as much as $1.5 billion. The prospectus is subject to completion on Nov. 13. Its units would be listed on the New York Stock Exchange under the 'KKR' symbol. - MarketWatch

Monro Muffler Brake Inc. (MNRO) said Tuesday that its board has added $30 million to the company's share-repurchase program, bringing the total authorization to $60 million. The Rochester, N.Y.-based auto-repair chain said it had about 20.1 million common shares outstanding as of Oct. 27. Shares of Monro Muffler Brake closed Monday at $21.39. - MarketWatch

Pricing:

Navios Maritime Partners L.P. (NM) on Tuesday said it priced 10 million common units at $20 each, the middle of the $19-$21 price range, in a bid to raise $200 million in its initial public offering. The unit of Navios Maritime Holdings (NM) represents a 54.1% limited interest in a shipping partnership. Based in Piraeus, Greece, Navios Maritime Partners LP is an international owner and operator of drybulk carriers newly formed by Navios Maritime Holdings. - MarketWatch

Filing:

IStar Financial Inc. (SFI) said Tuesday it filed a $575 million initial public offering for IStar Acquisition Corp., a blank check company formed for the purpose of acquiring one or more operating businesses. IStar Acquisition Corp. plans to "focus initially on operating businesses in the alternative asset management industry," the company said. - MarketWatch

Stock Split Announcement:

DryShips Inc. (Ticker: DRYS) announced that its board of directors approved a 3 for 1 stock split.

Economic Data:

10:00 Pending Home Sales
2:00 Treasury Budget

   Upgrades and Downgrades by Sector:

Airlines - Passenger
 TAM TAM S.A. Bear Stearns Upgraded from Peer Perform to Outperform
 GOL Gol Intelligent Airlines Calyon Securities Price Target Raised Add $26 to $29

Broadcasting
 DTV DIRECTV Kaufman Bros Price Target Raised Hold $26 to $28

Brokerage Services
 ITG Investment Tech Keefe Bruyette Upgraded from Mkt Perform to Outperform
 ETFC E*TRADE UBS Cut Price Target Neutral $14 to $4

Business Services
 JOBS 51job Citigroup Upgraded from Hold to Buy
 TTEK Tetra Tech BMO Capital Markets Initiated at Underperform $20

Computer Software
 ADSK Goldman Sachs Upgraded to Buy $52
 SPSS SPSS Inc First Analysis Sec Upgraded from Equal-Weight to Overweight
 YHOO Yahoo! CIBC Wrld Mkts Upgraded from Sector Perform to Sector Outperform
 VMW Smith Barney says to Buy and maintains price target $134
 CVLT Commvault Systems KeyBanc Capital Mkts Initiated at Buy $19
 COGN Cognos Broadpoint Capital Downgraded from Buy to Neutral
 WZEN Webzen BWS Financial Cut Price Target Buy $7.50 to $6

Construction
 CBI CB&I BMO Capital Markets Initiated at Outperform $65
 GVA Granite Constr BMO Capital Markets Initiated at Outperform $49
 URS URS BMO Capital Markets Initiated at Outperform $75
 FAST Fastenal Robert W. Baird Downgraded from Outperform to Neutral $55 to $44

Electronics
 ERI Emrise Roth Capital Cut Price Target Buy $1.70 to $1.60

Finance Companies
 GHL Greenhill Banc of America Sec Initiated at Buy $90

Foods
 UL Goldman Sachs Upgraded to Neutral
 TSN Tyson Foods Deutsche Securities Upgraded from Hold to Buy $20 to $18

Gaming Operations
 STN Station Casinos KeyBanc Capital Mkts Coverage Dropped

Gold and Silver Mining
 AUY Yamana Gold UBS Upgraded from Neutral to Buy

Healthcare Equipment
 STJ Lehman Brothers Upgraded to Overweight
 SNN Smith & Nephew Bear Stearns Upgraded from Peer Perform to Outperform

Industrial Equipment
 MSM MSC Industrial Robert W. Baird Downgraded from Outperform to Neutral $58 to $50

Insurance
 AGP Amerigroup Stifel Nicolaus Downgraded from Buy to Hold

Insurance - Europe
 Goldman Sachs Downgraded the European Insurance Sector to Underweight

Internet Travel Agent
 OWW TWPT likes the stock here
 OWW Orbitz Stifel Nicolaus Cut Price Target Buy $16 to $11

Manufacturing
 DSTI DayStar Technologies Broadpoint Capital Initiated at Buy $6
 HOKU HOKU Scientific Broadpoint Capital Initiated at Buy $10

Media Services
 AIXD Access Integrated Roth Capital Cut Price Target Buy $12 to $11

Mfg-Fitness Equipmt
 CYBI Cybex Stifel Nicolaus Initiated at Buy $6.75

Mfg-Industrial Goods
 KOP Koppers Holdings KeyBanc Capital Mkts Downgraded from Aggressive Buy to Buy $50

Mining - Steel & Iron
 PKX Posco HSBC Securities Upgraded from Neutral to Overweight
 GNA Gerdau AmeriSteel Banc of America Sec Initiated at Buy $15

Oil and Gas
 MDR McDermott Calyon Securities Upgraded from Add to Buy $66
 PXD Pioneer Natural Credit Suisse Upgraded from Neutral to Outperform $48 to $57
 REP Repsol SA Credit Suisse Upgraded from Underperform to Neutral
 SLB Schlumberger Calyon Securities Upgraded from Neutral to Add $102
 WFT Weatherford Calyon Securities Upgraded from Add to Buy $76
 LNG Cheniere Energy Banc of America Sec Initiated at Buy $50

Recreational Vehicles
 PTEK PokerTek Roth Capital Price Target Raised Hold $8.50 to $10

Restaurants
 BIDZ Bidz.com Roth Capital Price Target Raised Buy $18 to $19

Retail Trade
 SE Spectra Energy Banc of America Sec Initiated at Buy $29

Semiconductors
 BRKS Brooks Automation Bear Stearns Upgraded from Peer Perform to Outperform
 VRGY Verigy Merriman Curhan Ford Initiated at Buy

Solar Energy
 FSLR First Solar Broadpoint Capital Initiated at Buy $225

Technology
 BLOG BladeLogic Pacific Growth Equities Initiated at Buy

Telecommunications
 TNB Thomas & Betts Stifel Nicolaus Price Target Raised Buy $75.50 to $77.50
 UCNN UCN Roth Capital Price Target Raised Buy $5 to $5.50
 KPN Royal KPN Credit Suisse Downgraded from Outperform to Neutral
 ADCT ADC Telecom Friedman Billings Cut Price Target Outperform $24 to $22
 DITC Ditech Roth Capital Coverage Dropped

Utilities
 EQT Equitable Res Banc of America Sec Initiated at Buy $63
 NWN NW Natural Gas Banc of America Sec Initiated at Buy $56
 SRE Sempra Energy Banc of America Sec Initiated at Buy $72