PRE-MARKET UPDATE
DJIA futures are up over 40 points and S&P futures are up 6 points. Europe is up as the UK's FTSE is up 0ver 1%, Germany's DAX is up over 1%, and France's CAC is up over 1.5%. Asian stocks were a disappointment after yesterday's US performance as Japan's NIKKEI 225 was down 0.2% and Hong Kong's Hang Seng was down 0.8%.
Bonds are trading slightly higher in price this morning. The 10-Year Treasury yield is 3.54% and the 30-Year yield is 4.315%. Commodities are up as well with oil up over $1.00 and NYMEX WTI Crude over $71.00 again.
ECONOMIC & MACRO EVENTS
These are today’s top economic data:
7:45 AM EST Challenger Jobs Data (June)
8:15 AM EST ADP Employment Data (June)
10:00 AM EST Construction Spending (May)
10:00 ISM Manufacturing (JUNE)
10:00 AM EST Pending Home sales
Earnings: Constellation Brands (STZ), General Mills (GIS).
Investors will want to pay attention to the LogMeIn IPO today, which priced 6.666 million shares at $16.00 per share. This IPO is said to have commended a better pricing except that the week it is coming public has limited participation.
ANALYST UPGRADES & DOWNGRADES
Upgrades
American Water Works (AWK) Started as Buy at Brean Murray.
IAC/Interactive (IACI) Started as Outperform at Oppenheimer.
Marvel Entertainment (MVL) Raised to Overweight at JPMorgan.
Novo Nordisk (NVO) Raised to Buy at Goldman Sachs.
Werner Enterprises (WERN) Raised to Overweight at JPMorgan.
Downgrades
CardioNet (BEAT) Cut to Hold at Citigroup.
Checkpoint Software (CHKP) Cut to Neutral at JPMorgan.
BULLISH EVENTS
Viacom (VIA) is reportedly in talks for its Paramount Pictures unit to considering outsourcing some of its back-office operations to cut down on costs. Preliminary talks are said to have been with Fox, NBC, and Sony. This is one of those stories that could ultimately be a negative despite the cost cutting efforts.
Akeena Solar, Inc. (AKNS) announced a small pact this morning. Its Andalay solar panel system was installed at Silver Mountain Vineyards, an organic winery and vineyard in Northern California. This is 264 panels and measures 64 kilowatts.
AMAG Pharmaceuticals, Inc. (AMAG) was indicated up 4% after the drug and compound player announced that its iron drug Faraheme was approved for anemia treatments. Shares are very close to 52-week highs.
ISTA Pharmaceuticals Inc. (ISTA) was indicated higher by 18% last night and early this morning. This may be on follow-through news from last Friday's FDA panel indication or an analyst action.
Acorda Therapeutics (ACOR) announced a collaboration agreement with Biogen Idec and Elan to develop and commercialize its MS therapy called Fampridine-SR in markets outside the United States.
BEARISH EVENTS
AstraZeneca (AZN) ADR's could be under pressure. A patent group is claiming that AstraZeneca's key patent for its Crestor heart and cholesterol medication may be invalid. AZN is defending itself.
Biogen Idec (BIIB) did confirm that it was halting an MS study with UCB. But the company also gained rights to Acorda's MS drug and entered into a collaboration pact with the company. Acorda will receive $110 million and the total pact could be worth some $500 million. Its market cap is about $1.07 billion.
Myriad Genetics Inc. (MYGN) is getting spanked and spanked hard. The company warned of lower quarterly and fiscal 2009 revenues from its molecular diagnostics operation. Shares closed at $35.65 yesterday and the 52-week range is $22.42 to $47.08. Shares are indicated down under $30.00 in early trade indications.
American International Group Inc. (AIG) is under pressure. This morning is the effective date of a 1 for 20 reverse split. Shares closed at $1.16 yesterday, but the "20-factor" is not even close. We have indications down over 30% around in early trading.
Sealy Corporation (NYSE: ZZ) has already been a down and out mattress maker from the recession. Last night the company posted a loss after items for the quarter and shares are indicated lower. This one is already under $2.00, and the 52-week range is $0.43 to $8.41.
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