MARKET UPDATE
Equities were down earlier but have recovered some of their profit taking losses as DJIA and S&P500 futures are now both in positive territory by about 0.1% to 0.2%. The FTSE, DAX, and CAC in Europe were all lower by about 0.1to 0.3%. Asia was up with Japan's NIKKEI up 0.6% and Hong Kong up 0.8%.
Treasuries are moderately higher with the 10-Year at 3.35% and the 30-Year at 4.20%. Commodities are trading up with NYMEX WTI Crude up close to $1.00 and over the $74.00 per barrel mark. Gold is trading up around 0.7% at $1063.00 on early indications.
ECONOMIC & MACRO EVENTS
These are today’s top economic data:
no major economic releases seen
Earnings Today: Altera (ALTR), J&J (JNJ), Intel (INTC)
ANALYST UPGRADES & DOWNGRADES
Upgrades
Citigroup (C) Started as Buy at Deutsche Bank.
Cypress Semiconductor (CY) Raised to Hold at Jefferies.
DryShips (DRYS) Raised to Buy at Lazard.
Lam Research (LRCX) Raised to Overweight at Barclays.
On Semiconductor (ONNN) Started as Buy at Deutsche Bank.
Pacific Sunwear (PSUN) Raised to Outperform at FBR Capital.
Posco (PKX) Raised to Conviction Buy List at Goldman Sachs.
Polo Ralph Lauren (RL) Started as Buy at UBS.
Downgrades
Carrizo Oil & Gas (CRZO) Cut to Neutral at SunTrust.
Coach (COH) Started as Neutral at UBS.
LDK Solar (LDK) Started as Underperform at BofA/Merrill Lynch.
Synaptics (SYNA) Cut to Underperform at Jefferies.
The J. M. Smucker Company (SJM) Started as Neutral at JPMorgan.
BULLISH EVENTS
Interactive Intelligence (ININ) rose sharply after guidance was well above estimates. The VoIP and communications software company is trading up over 10% on the news.
Vascular Solutions, Inc. (VASC) is trading up now that it and Zerusa Limited have announced FDA marketing approval for its next-generation Guardian II Hemostasis valve. Shares are indicated up 15% if the early indications hold.
DARA BioSciences, Inc. (NASDAQ: DARA) is a small cap biohealth player that is indicated up sharply, although this is a micro-cap stock. The company amended a material transfer pact with America Stem Cell, which is a hot topic in the biohealth space. Shares are indicated up over 10%.
Pier 1 Imports (NYSE: PIR) shares are trading higher after the still-troubled retailer increased expectations for its September same-store sales by noting a gain of 9.9%. It is also confident about inventory levels, which it expects to peak at the end of the quarter at $350 million. Shares are indicated higher by more than 10% on the news.
American International Group (AIG) has announced an agreement to sell its almost-98% share of Nan Shan Life Insurance to a consortium which is run by Primus Financial Holdings Limited and China Strategic Holdings Limited. The sale price is approximately $2.15 billion.
BEARISH EVENTS
Energy Conversion Devices (ENER) will be one to watch today. Apparently yesterday's near-15% gains were on takeover rumors, but you know what traders do if and when no further news or added rumors come out on big gainers..
Goldman Sachs Group Inc. (NYSE: GS) is getting hit ahead of earnings. It is not on news from the company, but revered analyst Meredith Whitney has come out and downgraded the stock after it ran about 30% from when she initiated a BUY rating on the stock. Her downgrade is to NEUTRAL and the stock is down some $3.00.
China Sunergy Co., Ltd. (Nasdaq: CSUN) has delivered a petition for an extension of the existing injunction related to the REC Wafer situation to the Norwegian court. It has also filed a legal writ regarding the legal status of REC Wafer Norway AS as a rightful party to any existing contract.
Johnson & Johnson (JNJ) beat earnings, but on the cuts and not on the top-line figures as we are seeing so much of. The consumer products and healthcare products giant posted $1.20 EPS vs. $1.13 estimates; revenues were $15.1 billion versus $15.2+ billion estimates.
Mentor Graphics (MENT) announced plans to acquire Valor for a combination of Mentor Graphics common shares and cash for an aggregate consideration listed as approximately $82 million. Mentor's market cap is $878 million.
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