MARKET UPDATE
Equities are taking a pretty good breather this morning. Early on we
have DJIA futures down 55 points and S&P futures are down almost 7
points. Overseas markets were all lower as well. European markets were
down 1.4% on average. In Asia, the NIKKEI was down 1.4%, the Hang Seng
was down 1.8% and Shanghai's late indications were down 0.3%.
Commodities are not offering any great support either. Oil is soft as well with indications down $0.75 around the $78.80 per barrel of NYMEX WTI Crude. Gold is soft as well with a 0.4% drop at $around $1035.00 per ounce.
ECONOMIC & MACRO EVENTS
These are today’s top economic data:
8:30 AM EST Durable Orders (Sept.)
10:00 AM EST New Home Sales (Sept.)
10:30 AM EST DOE Weekly Crude Oil Inventories
Major earnings reports are due from AFL AKAM BMRN BWA CRA CERN CCE CVLT
EFII RE GD GT HBI HLIT HES INSP ITRI XXIA JNY LAZ LVLT NANX NWL OC PAS
PLXS Q RYL SAP SEE SJW SLAB SPW TCK TER TZOO UIS URI VALE WCAA WLP
>ANALYST UPGRADES & DOWNGRADES
Target Corp. (TGT) upgraded to Buy from Sell at Citigroup.
Texas Instruments (TXN) Raised to Buy at Goldman Sachs.
Waters Corp. (WAT) Raised to Buy at Deutsche Bank.
Apollo Group (APOL) Cut to Neutral at BofA/Merrill.
BP plc (BP) Cut to Hold at Citigroup; Raised to Neutral at Goldman Sachs.
ValueClick (VCLK) Cut to Neutral at Merriman Curhan Ford.
BULLISH EVENTS
Plantronics (PLT) is indicated higher. The company
posted Q2 results of $0.40 EPS and $167.4 million vs. First Call
consensus of $0.31 EPS and $155.12 million; and it raised guidance
above the mid-points.
Biogen Idec (BIIB) announced along with Elan that
TYSABRI, its controversial MS Drug, significantly reduced the rate of
hospitalization when the results were compared with the placebo in
patients with moderate-to-severe Crohn's disease. This was also during
the induction and in the maintenance treatment periods.
THQ Inc. (THQI) has extended one of its key license
pacts, or at least one of its formerly-popular relationships. It and
World Wrestling Entertainment extended their renewal notice deadline
for the wrestling and fighting video game license.
Harris Corp. (NYSE: HRS) said its Q1 profits fell by
12% but managed to beat estimates. Its communications products and
government communications orders beat expectations and it raised its
fiscal-2010 estimates. Shares are indicated up 4%.
DreamWorks Animation SKG (NYSE: DWA) had what appeared
to be a very bad quarter on the surface as its profit dropped 48%. Its
DVD sales of "Monsters vs. Aliens" in 3-D was the only release in 2009.
But the results beat estimates and shares were up about 2% on early
indications. One issue that may be helping here is that some feel it
is a natural takeover target after the Marvel deal.
BEARISH EVENTS
Apollo Group Inc. (NASDAQ: APOL) is getting hammered.
The online education posted solid earnings and enrollment growth. BUt
two issues came up... the first is the sustainability of enrollments.
The second more important issue, far more important, is an SEC inquiry
into revenue recognition practice. Shares are down big.
ArcelorMittal (NYSE: MT) reported third quarter income
of $1.59 billion vs. $1.78 billion estimates. The steel maker also sees
Q4 income of $2.0 to 2.4 billion. The company said it has seen the
first signs of recovery in the third quarter and it expects to see
further gradual improvement through 2010. But shares are down as the
company further noted that the operating environment remains
challenging.
Advanced Micro Devices (AMD) is taking a hit this
morning. Former-CEO Hector Ruiz has been implicated as a CEO who may
have given insider information to the Galleon Funds in the recent
scandal that is still spreading out. <
E*Trade Financial (NASDAQ: ETFC) may not be as bearish
as when the news first came out on earnings. The online brokerage firm
posted a wider third-quarter loss due to charges over a debt exchange.
Credit trends are continuing to improve and it added to Tier-1 capital.
Shares were down about 3% last night but look flat this morning.
Visa (V) did beat earnings, but some of its credit
metrics showed that it was not immune to a global recession despite
growth. The company also announced a $1 billion stock buyback
program.
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