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Wednesday, August 27 2008
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  • 11:53 PM Paul Kedrosky charts Microsoft (MSFT) and Google (GOOG) stock performance for 1 week, 1 month, YTD and 1 year and wonders, Has there been another period since the Google IPO when MSFT led GOOG in stock performance over so many periods? Comment!
  • 5:30 PM Cisco (CSCO) bought email/calendar software manufacturer PostPath today for $215 million. Cisco and Microsoft (MSFT) are increasingly on a software collision course. Comment!
  • 5:15 PM Seagate (STX) is moving from S&P to Nasdaq, effective Sept. 16. Comment!
  • 5:00 PM The Brazilian government is considering increasing its share in Petrobras (PBR), according to Sao Paolo newspaper Folha. Comment!
  • 4:47 PM Coldwater Creek (CWTR): Q2 EPS of $0.04 beats by $0.03. Revenue of $241M (-0.9%) vs. $245M. Shares -4.3%. [PR] Comment!
  • 4:46 PM Fannie Mae (FNM) is restructuring management. Peter Niculesco becomes Chief Business Officer; comptroller David Hisey has been named EVP and CFO. Comment!
  • 4:33 PM When it comes to internet security, Between the Lines asks, who's dumber - the good guys or the bad guys? Comment!
  • 4:13 PM Men's Wearhouse (MW): Q2 EPS of $0.72 beats by $0.02. Revenue of $545M vs. $556M. Sees Q3 EPS of $0.36-0.40 vs. $0.53. Shares -3.5%. [PR] Comment!
  • 4:07 PM TiVo (TIVO): Q2 EPS of $0.03 beats by $0.05. Revenue of $53.5M vs. $55.3M. Sees Q3 revenue of $49-51M vs. 57M. Shares -3%. [PR] Comment!
  • 4:05 PM Jo-Ann Stores (JAS): Q2 EPS of -$0.47 beats by $0.19. Revenue of $403M in-line. Shares: +3.5%. [PR] Comment!
  • 4:01 PM Crude +1.77% to $118.32. Gold +0.36% to $831. Comment!
  • 4:01 PM At the close: Dow +0.8% to 11,504. S&P +0.79% to 1,282. Nasdaq +0.87% to 2,382. Comment!
  • 4:00 PM Alcatel-Lucent's (ALU) up 5.5% over the past two days: Investors hope ALU will hire former manager Mike Quigley as CEO. "We would want someone with global experience, with a proven track record," one analyst says. "Quigley would be a very good choice." Comment!
  • 3:57 PM U.S. thrift banks lost $5.4B in Q2 - the second largest loss on record. Banks have been responsive: "Solid capital and sizable reserves for potential loan losses show once again that thrift managers are responding appropriately to the challenges they face." Comment!
  • 3:48 PM Moody's says delinquencies and losses on pools of loans backing residential mortgage-backed securities increased in H1. Home-equity line-of-credit pools - with failure rates of around 25% - look equally scary. Comment!
  • 3:32 PM IE 8's (MSFT) InPrivate feature allows users to hide personal information from websites they access. A serious threat to Google (GOOG) and others, which use that information for targeted advertising. Comment!
  • 3:26 PM Noting demand from non-aircraft capital goods rose a robust 2.6%, Nomura's David Resler says the data suggests "the credit crunch is not having a profoundly adverse impact on capital spending that most economists (myself included) assumed it would." Comment!
  • 3:19 PM Sector ETF weakness: Livestock– COW -3.3%. Agriculture– DBA -1.5%. Biotech– IBB -1%. Silver– SLV -0.6%. Comment!
  • 3:19 PM Sector ETF strength: Homebuilders– XHB +3.8%. Coal– KOL +3.4%. Solar– TAN +2.55% Clean Energy– PBW +2.4%. Steel– SLX +2.3%. Comment!
  • 3:17 PM Dow leaders: T +1.9%. AXP +1.7%. AA +1.7%. BAC +1.7%. BA +1.5%. Laggards: PFE -1.2%. GE -0.6%. Comment!
  • 3:15 PM With less than an hour to go, Nasdaq is leading the way, +1.05%. Dow +0.83%. S&P +0.81%. Crude +1.81% to $118.36. Gold +0.58% to $832.80. Comment!
  • 2:29 PM Homebuilders look to be having a relief rally: KB Home (KBH) +10.18%, Centex (CTX) +9.15%, Lennar (LEN) +9.06%, Toll Bros. (TOL) +4.88%. Comment!
  • 2:06 PM Crude +0.62% to 116.99.  Gold +0.38% to 825.30. Comment!
  • 2:05 PM Markets are mostly quiet on light volume heading into the end of the week: Dow +0.87%, S&P +0.78%, Nasdaq +1.09%. Comment!
  • 1:57 PM "This is not some massive plot," Otto Rock says to those who chalk up silver's recent dive to manipulation. "This is people speculating - winning and losing." Permabull gold and silver bugs can't seem to accept that, he says. Comment!
  • 1:39 PM To save money, airlines are charging for everything from Wi-Fi (DAL) to pillows (JBLU). Still, Air Jazz's decision to do away with life vests is sure to rock some boats. Comment!
  • 1:21 PM Northrop Grumman (NOC) proves that winning contracts isn't all it's made out to be - if you follow up with cost-overruns and shoddy work. Shares are down 12% YTD. Comment!
  • 1:04 PM William Pesek: Asia is about to give U.S. a kick in the Fannie - "Those arguing the U.S. will hold its ground in these turbulent times ignore how dependent the U.S. is on Asia's money." Comment!
  • 12:46 PM T. Boone Pickens's The First Billion Is the Hardest - "a sassy mishmash of a book that begins as a memoir, segues into a management guide and closes with an energy plan for the U.S." - James Pressley Comment!
  • 12:28 PM Enthusiasm for wind power continues to grow. The unanswered question is how to transmit the energy with today's indadequate grid. Comment!
  • 12:11 PM Caroline Baum: Paulson's 'bazooka' turned out to be pea shooter - "The government backstop was supposed to reassure investors. Instead it turned out to be the equivalent of a "Beware of Dog" sign on Fannie's (FNM) and Freddie's (FRE) stock and a "tread softly" notice on their debt. Comment!
  • 12:11 PM Durable goods orders jumped a surprising 1.3 percent in July. U.S. Treasury debt prices fell as the report suggested resilience despite the deep housing correction and credit crunch. [Reuters] Comment!
  • 12:01 PM Markets at noon: Dow +0.44%, S&P +0.32%, Nasdaq +0.39%. Comment!
  • 11:52 AM As bank lending slows, social lending grows. Comment!
  • 11:29 AM ConocoPhillips (COP) will sell the remainder of its 600 company-owned gas stations to PetroSun West for $800M. COP would rather spend its time looking for new oil than on low-margin gas sales. Comment!
  • 11:09 AM Boeing (BA) enlists the help of the web, posting its union contract proposal for one and all. "I bet it's driving the union crazy," Jefferies' Howard Rubel says. Still, involving workers in the give-and-take of early talks could work against it. Comment!
  • 10:51 AM The FHA raises its upfront premiums to 1.75% of the total loan from 1.5%. With the FHA's growing role in a troubled mortgage market, it may well need the extra money. Comment!
  • 10:38 AM Oil +2.15% to 118.77. Gold +0.95% to 830. Comment!
  • 10:33 AM An hour after open, markets heading up: Dow +0.41%, S&P +0.49%, Nasdaq +0.62%. Comment!
  • 10:29 AM Gartner sees smartphone sales growing to $200B by 2012, good news for companies like Nokia (NOK) and Apple (AAPL). Demand is expected to pick up in H2 as companies release new products and consumers go holiday shopping. Comment!
  • 10:29 AM World energy demand could rise 1.6% a year through 2030, according to the Asia Development Bank. The spike will be driven by higher demand in emerging economies and supply security is likely to remain a concern. Comment!
  • 10:28 AM Robert W. Baird & Co downgraded the U.S. auto & truck parts suppliers sector to "market weight," saying U.S. light-vehicle sales will likely remain depressed for years, and sales in Europe and emerging markets are on course for a cyclical downturn. Comment!
  • 10:28 AM Federal Reserve Bank of Atlanta President Dennis Lockhart said today that the Fed's interest rate is consistent with slowing inflation, and signalled readiness to raise borrowing costs if such a move is needed. Comment!
  • 10:28 AM IAC plans to compete against Disney (DIS) in the business of virtual worlds aimed at kids. In September, IAC will launch its own virtual world called ZwinkyCuties.com, a spinoff of the Zwinky.com site which is aimed at teens and has 16M registered users. Comment!
  • 10:27 AM Data released by comScore (SCOR) shows Microsoft (MSFT) was the top display advertiser in June with 5.5B display ad views. The jump in display ads was due in large part to its promotional campaign for Windows Live Search. Comment!
  • 10:27 AM CIBC (CM), Canada's fifth-biggest lender, reports a lower FQ3 profit on structured credit losses. It earned C$0.11 per share vs. C$2.31 per share last year. Comment!
  • 10:27 AM Saudi Arabia may face pressure from OPEC members to reduce supplies to prevent a further fall in crude prices. OPEC is producing about 1M barrels per day more than its official supply target mostly because of extra Saudi Arabian production. Comment!
  • 10:21 AM ETF weakness: Livestock– COW -1.1%, Biotech– IBB -1.0%, Retailers– RTH -0.7%, Regional Banks– RKH -0.7%, Commercial Banks– KBE -0.6% Comment!
  • 10:20 AM ETF strength: Homebuilders– XHB +3.3%, Gasoline– UGA +3.0%, Coal– KOL +2.9%, Gold Miners– GDX +2.3%, Heating Oil– UHN +2.3% Comment!
  • 10:18 AM Dow laggards: JPM -1.5%, PFE -1.1%, MCD -0.9%, HD -0.6%, MMM -0.6% Comment!
  • 10:16 AM Dow leaders: AA +1.2%, BA +0.9%, T +0.7%, XOM +0.5% Comment!
  • 10:15 AM Gartner (IT) reports 304.7M mobile devices were sold in Q2 (+12% Y/Y). Gartner expects handset sales to grow 11% in 2008, for a total of 1.28B units, with revenue growth of 9%. Major players: Nokia (NOK), Motorola (MOT), and Samsung. Comment!
  • 10:15 AM July durable goods orders rose an unexpected 1.3% on strong transportation equipment demand vs. a consensus 0.2%. Excluding transportation, orders rose 0.2%. Comment!
  • 9:25 AM Cell Genesys (CEGE) stops its late-stage trial for prostate cancer therapy after 20 more deaths were reported in the group taking the drug versus the control group. Shares -75% pre-market. Comment!
  • 9:15 AM Google (GOOG) gains U.S. search share - again. Comment!
  • 9:05 AM Dollar Tree Stores (DLTR): Q2 EPS of $0.42 beats by $0.01. Revenue of $1.09B in-line. Shares -5%. [PR] Comment!
  • 9:00 AM With a half-hour to the open, futures indicate we're going higher. Dow +0.21%. S&P +0.24%. Nasdaq +0.15%. Crude +1.68% to $118.19. Gold +0.69% to $833.70. Comment!
  • 8:54 AM Morgan Stanley sees global infrastructure spending growth of just 3% this year - and flat in 2009. GE (GE) Caterpillar (CAT) and Emerson Electric (EMR) say they aren't seeing cancellations - yet. Comment!
  • 8:52 AM Solarfun Power Holdings (SOLF): Q2 EPS of $1.62 beats by $0.13. Revenue of $1.35B (+192.2%) vs. $1.25B. Shares -10% pre-market. [PR] Comment!
  • 8:50 AM Charming Shoppes (CHRS): Q2 EPS of $0.02 beats by $0.03. Revenue of $649M (-6.6%) vs. $628M. Shares -4.1% pre-market. [PR] Comment!
  • 8:48 AM Talbots (TLB): Q2 EPS of -$0.34 in-line. Revenue of $528M (-7.7%) vs. $532M. Shares -5.0% pre-market. [PR] Comment!
  • 8:47 AM Dillard's (DDS): Q2 EPS of -$0.58 misses by $0.04. Revenue of $1.61B (-2.5%) vs. $1.62B. Shares -2.6% pre-market. [PR] Comment!
  • 8:44 AM Brown Shoe Company (BWS): Q2 EPS of $0.05 misses by $0.01. Revenue of $569M (-1.3%) vs. $589M. [PR] Comment!
  • 8:16 AM MBA Mortgage Applications rose 0.5% to 421.6, the first increase in three weeks. The 30-yr. fixed mortgage rate fell to 6.44% from 6.47%. Comment!
  • 8:12 AM ABC's weekly Consumer Comfort Index shows American consumer confidence fell to a near-record low. The index was down to -50 in the week to Aug. 24, dangerously close to the all-time low of -51, reached in May. Comment!
  • 8:11 AM TiVo (TIVO) makes a deal with Entertainment Weekly, a Time Warner (TWX) magazine, that will allow TiVo users to automatically record shows recommended by magazine staff. TiVo is trying to expand its market share in a field it once pioneered. Comment!
  • 8:07 AM Eli Lilly (LLY) and Amylin (AMLN) are in talks with the FDA and may have to add tougher warnings to the prescription instructions after four more patients died from pancreatitis while taking the diabetes drug Byetta. Comment!
  • 8:05 AM The NY AG's office is probing the relationship between Fidelity Investments and Goldman Sachs (GS) as part of the investigation into Fidelity's sale of auction-rate securities [ARS]. Most of the ARS sold by Fidelity were underwritten by Goldman. Comment!
  • 8:01 AM The FDIC may turn to a Treasury loan to help replenish funds depleted by failing banks. Nine banks have failed this year, and 117 are now on the FDIC's "problem" list, compared to 90 banks in Q1. Comment!
  • 7:45 AM Presidential candidates McCain and Obama have been quick to bemoan the subprime and credit-market crises. But slow to offer any viable solutions. Comment!
  • 7:30 AM Economists expect orders for durable goods were unchanged from last month, after an 0.8% gain in June. With domestic demand expected to slow sharply... investment spending will be weak," BofA economist Peter Kretzmer says. Release: 8:30. Comment!
  • 7:15 AM "As the economic picture in Europe darkens, the U.S. dollar is proving to be the main beneficiary." [WSJ] Comment!
  • 7:09 AM European markets are trading down: London -0.2%. Paris -1.1%. Frankfurt -1.1%. Comment!
  • 7:04 AM Asian markets closed mostly down. Nikkei -0.2% to 12,753. Hang Seng +1.9% to 21,465. Shanghai -0.3% to 2,342. BSE -1.3% to 14,297. Comment!
  • 7:03 AM U.S. futures: Dow -0.25%. S&P -0.35%. Nasdaq -0.34%. Crude +1.06% to $117.50. Gold +1.36% to $839.30. Comment!
  • 6:57 AM Wall Street firms such as Citigroup and Goldman are beginning to warm up to the possibility Fannie (FNM) and Freddie (FRE) may avert a shareholder-ravaging bailout. Comment!
  • 6:30 AM Pimco is looking to raise $5B for a fund to buy distressed senior and super-senior mortgage-backed debt on the cheap. "There's a handful of firms out there" that can take advantage of "the fire sales going on in mortgage-backed securities." Comment!
  • 6:15 AM Lehman (LEH) asks private-equity firms KKR, Hellman & Friedman and Bain to remain in the bidding for its asset management unit - though it's yet to decide if it will sell. Comment!
  • 6:00 AM Earnings previews for companies reporting early this morning: DLTR Comment!
  • 5:49 AM Cnooc (CEO): Oil and gas sales gain 63.9% to ¥54.46B. Net profit of ¥27.54B was up 89.3%. Cnooc is number-three to PetroChina (PTR) and Sinopec (SNP). Comment!
  • 5:36 AM As Fannie's (FNM) and Freddie's (FRE) costs to borrow soar, so do the yields on the mortgage bonds they're buying. Ironically, business is booming. Comment!
  • 5:28 AM PetroChina (PTR): H1 profit falls 35% to ¥53.6B ($7.8B) on receding margins and advancing taxes - in line with estimates. PTR and ExxonMobil (XOM) duel for title of the world's biggest company, with XOM being the current champ. Comment!
  • 5:14 AM BT Group (BT) considers selling its 31% stake in its $2.2B JV with India software firm Tech Mahindra. A sale would be one of the biggest ever in the India outsourcing sector. Comment!
  • 5:11 AM Merrill (MER) investor Temasek says it's fully confident in CEO Thain, and plans to boost its stake (now 9.4%). Downturns offer opportunities "to invest in good quality assets at prices that are attractive from a long-term perspective," it says. Comment!
  • 5:06 AM Matthew Lynn: How not to deliver the U.K. (ETF: EWU) from the throes of recession. Comment!
  • 5:02 AM In Italy: A surprise rebound in consumer confidence. Comment!
  • 4:59 AM In some areas of Germany: Negative inflation. Still, finance minister Peer Steinbrueck says the country's not in recession - and doesn't need money-burning stimulus programs. Comment!
  • 4:57 AM Spain's economic growth slows to an anemic 0.1% from 0.3% last quarter. Comment!
  • 4:56 AM AU Optronics (AUO) will invest $12.7B to build four Taiwan LCD plants to meet the growing demand for flat-screen TVs. Shares gained 2.3% in Taiwan. Comment!
  • 4:43 AM The dollar's down in overnight trading after yesterday's FOMC minutes, which implied an increasing Fed vigilance against inflation and potentially higher interest rates. Yen +0.66%. Euro +0.44%. Pound +0.3%. Comment!
  • 4:37 AM A flop of an art auction in Australia (Sotheby's (BID)). Comment!
  • 4:28 AM Toyota (TM), Honda (HMC) and Nissan (NSANY) boost global production (+9%, +18%, +27%) to meet demand for fuel-efficient cars from emerging markets. Shares fell 2.65%, 2.2% and 4.7% respectively (more). Comment!
  • 4:24 AM Crude's up 0.4% to $116.76. Meteorologists think Tropical Storm Gustav will enter the Gulf of Mexico, home to more than 1/5 of U.S. oil production. Expect Gustav-centered volatility for the next few days. Comment!
  • 4:17 AM The FDA will expedite its review of Glivec, Novartis's (NVS) cancer treatment, for use after surgery to remove stomach and intestinal tumors. It's already used to treat leukemia and gastrointestinal tumors, with $3B in yearly sales. -0.7% in Zurich. Comment!
  • 4:10 AM Shares of Cnooc (CEO), China's number-one offshore oil driller, gain 4.1% in Hong Kong ahead of today's earnings report. Comment!
  • 3:58 AM China Mobile (CHL) posts record profits of ¥30.8B ($4.5B) - 51% higher than a year ago and better than the ¥28.3B analysts expected. Sales rose 16% to ¥103.4B. CHL says it's shopping for "quality telecommunications assets as investment opportunities." +3.9% in Hong Kong. Comment!
  • 3:31 AM Prices of imports soar 9.3% in Germany - the biggest jump in eight years. "Even though the worst may be over in terms of oil price increases, it's certainly too early for the ECB to sit back and relax," economist Kenneth Broux says. Comment!
  • 3:29 AM Yet another Japanese homebuilder - Sokhen Homes - files for bankruptcy. Comment!
  • 3:27 AM Europe markets open to the downside. London -0.4%. Paris -0.4%. Frankfurt -0.3%. Comment!
  • 3:23 AM Nissan (NSANY) drops 4.7% in Tokyo after Morgan Stanley cut its price target. Comment!
  • 3:19 AM Three new board members at Royal Bank of Scotland (RBS). They hope to help RBS reverse course after £5.9B in writedowns and a H1 loss. Shares open flat in London. Comment!
  • 3:08 AM Even cost-cutting can be costly. Siemens's (SI) planned 16,750 layoffs will cost it a hefty €800M ($1.2B). Comment!
  • 3:05 AM Asia is mixed and changes are modest. Nikkei -0.2%. Hang Seng +0.8%. Shanghai -0.1%. BSE -0.4%. Comment!
  • 12:10 AM Notable earnings after Wednesday's close: CWTR, GA, MW, TIVO Comment!
  • 12:05 AM Notable earnings before Wednesday's open: CEO, CHL, CHRS, DLTR, SOLF, TLB Comment!
  • 12:00 AM Wednesday's economic calendar:
    7:00 MBA Mortgage Applications
    8:30 Durable Goods Orders
    8:35 Fed's Lockhart speaks on inflation
    10:35 EIA Petroleum Status Report Comment!