Translate

Search This Blog

Search Tool




Aug 19, 2010

MarketWatch: Internet News Services: Outisde the Box: Is the Party Over For Google. August 19th., 2010

MarketWatch
INTERNET News Services
Outside the Box: Is the party over for Google?  
By Jeff Reeves


Are the best days behind Google, or is the future still bright for this search giant? 

MarketWatch Personal Finance Daily : Will the next crisis start in the bond market?. August 19th., 2010


MarketWatch

Personal Finance Daily
AUGUST 19, 2010

Thursday's Personal Finance stories

By MarketWatch




Don't miss these top stories:
Did you predict the financial crisis before it hit? Before the economy imploded a few years ago, MarketWatch Editor in Chief Dave Callaway writes, plenty of people were worried the boom would be followed by a bust, but few knew what to do with that knowledge.

So where will the next big crisis occur? No one really knows, but plenty of market experts and news stories lately are pointing to a bond bubble that's bound to burst.

Read Callaway's column for more on what you need to think about now -- especially if you've been fleeing to the seeming safety of bonds. The next question is, when?

-- Andrea Coombes , Personal Finance editor

Commentary: Big investors are pulling the exit chute

It's a common misperception that nobody saw the financial crisis coming save a few savvy traders. In fact, everybody saw it coming. It's just that no one knew when or how it would manifest itself. Same thing is happening right now with the bond bubble.
See story on big investors are pulling the exit chute.


CONSUMERS

Don't get taken by car-loan scams

When Edward Fox's wife lost her job and they saw their family income shrink considerably earlier this year, he looked for ways to cut expenses. He thought he found one when a company promised to help him cut his hefty car loan by as much as a third.
See Jennifer Waters's Consumer Confidential on don't get taken by car-loan scams.


Overdraft fees protect the bank, not you

I stopped in at my bank this week, and the woman in line ahead of me was a friend of mine. The teller was finishing up with her transaction when she reminded my friend that her account no longer had debit-card overdraft protection.
See Chuck Jaffe on overdraft fees protect the bank, not you.


HEALTH CARE

Tips to prevent kids' hearing loss

The portion of teenagers with hearing loss jumped nearly a third in the last 20 years. In this week's Health Minute, Kristen Gerencher discusses what parents should know about symptoms, prevention -- and portable music players.
 Watch video on tips to prevent kids' hearing loss.


Salmonella scare prompts egg recall

Health officials recall 380 million eggs. Video courtesy of Fox News.
 Watch video on salmonella scare prompts egg recall.


RETIREMENT

Seven lessons learned from my father's death

My father died on Aug. 1 at the age of 80. We laid him to rest on Aug. 6 at Veterans Memorial Cemetery in Rhode Island where I delivered, with a great deal of sadness, the eulogy at his grave site. In the days since his death, I have thought long and hard about the lessons I learned from my father -- and the opportunities missed.
See Robert Powell on seven lessons learned from my father's death.


INVESTING

Gold bugs see new highs ahead

Is gold gearing up for new highs? Rapturous radical bugs say yes.
See story on gold bugs see new highs ahead.


REAL ESTATE

Commentary: Why your best investment is a foreclosed home

The recession is "officially" over according to GDP figures. Stocks are up 50% from the March 2009 bottom. Gold and silver are up dramatically too. So what's the only remaining asset class that's still cheap?
See story on why your best investment is a foreclosed home.


Fixed-rate mortgages break record low

Rates on fixed-rate mortgages dropped this week, according to Freddie Mac's weekly survey of conforming mortgage rates. It's the ninth week in a row that fixed-rate mortgages have met or set a record low, according to Freddie Mac's deputy chief economist.
See story on fixed-rate mortgages break record low.


ECONOMY & POLITICS

Commentary: Low rates won't solve the unemployment problem

The Federal Reserve has a dual mandate: maintain stable prices and enable the economy to reach full employment. Officials are growing more worried that they can do little to achieve the latter half of their responsibilities.
See story on low rates won't solve the unemployment problem.


Jobless claims jump to nine-month high

First-time filings for state unemployment benefits rose unexpectedly last week to reclaim the highest level for this key economic benchmark since the middle of last November, the Labor Department reported.
See story on jobless claims jump to nine-month high.


CBO pegs budget deficit at more than $1.3 trillion for 2010

The federal budget deficit will surpass $1.3 trillion in 2010 and is expected to be the second largest shortfall in the past 65 years, the Congressional Budget Office estimated.
See story on CBO pegs budget deficit at more than $1.3 trillion for 2010.


Philly factories show weakness in August

The factory sector in the Philadelphia region showed unexpected weakness in August, the Federal Reserve Bank of Philadelphia said, falling into negative territory for the first time in a year.
See story on Philly factories show weakness in August.


Leading indicators show slowing U.S. economic growth

The U.S. economy looks set to grow at a slower pace than earlier this year, the Conference Board said on Thursday as it reported its leading economic index rose 0.1% in July.
See story on leading indicators show slowing U.S. economic growth.


GULF OIL SPILL

Gulf of Mexico seafood is safe, officials say

Federal officials overseeing the environmental impact of the BP PLC (BP) oil spill Thursday stood by early indications about the safety of seafood taken from the Gulf of Mexico, but acknowledged that more research is pending.
See story on Gulf of Mexico seafood is safe, officials say.


Gulf oil plume the size of Manhattan: study

Stephanie Ilgenfritz has details of a just-released survey indicating that the Deepwater Horizon spill produced drifting plume of hydrocarbons the size of Manhattan.
 Watch video on Gulf oil plume the size of Manhattan: study.


BP starting 'bottom kill' procedure after Sept. 6

U.S. officials now expect BP to begin the so-called bottom kill of its Macondo well in the Gulf of Mexico early next month, as the oil major conducts a series of tests in preparation for permanently plugging the source of the worst crude leak in U.S. history.
See story on BP starting 'bottom kill' procedure after Sept. 6.

CNBC : EVENING BRIEF: Jobs Outlook Isn't Just Bad, It May Be Getting Worse. August 19th., 2010




LATEST STORIES


»click here to see the latest top stories from CNBC.com



LATEST VIDEO

Reuters : Economic & Financial News: August 19th., 2010

      Economic & Financial News

NYT: Afternoon Business News| NYT Business Update


BUSINESS:

Shrinking 'Quant' Funds Struggle to Revive Boom

 
By JULIE CRESWELL
The quantitative investment managers with high-flying computer models have lost favor since the big downturn.

Intel to Acquire McAfee for $7.68 Billion

 
By ASHLEE VANCE
With the $7.68 billion acquisition, Intel becomes a major player in the security software and services market.

Geithner Struggles to Escape a Past He Never Had

 
By JACKIE CALMES
The Treasury secretary from Goldman Sachs? Nope, that was the last guy.

China to Invest Billions in Electric and Hybrid Cars

 
By DAVID BARBOZA
The plan aims to put millions of electric and hybrid energy vehicles on the road over the next few years in the world's biggest auto market.
DealBook

First Niagara to Buy NewAlliance for $1.5 Billion

 
By DEALBOOK
The First Niagara Financial Group said has agreed to buy NewAlliance Bancshares of Connecticut for about $1.5 billion in stock and cash in a deal that will expand its operations into New England.

RTTNews: Evening Market Wrap: Stocks Close Sharply Lower On Disappointing Economic Data - U.S. Commentary . August 19th., 2010

Evening Market Wrap Thu Aug 19 17:01 2010 

Commentary

Aug 19, 2010 Stocks Close Sharply Lower On Disappointing Economic Data - U.S. Commentary Stocks saw substantial weakness on Thursday, as a series of disappointing economic reports renewed recent concerns about the economic outlook. The major averages moved sharply lower in morning trading and remained stuck firmly in negative territory throughout the remainder of the session. Full Article

Economic News

Aug 19, 2010 Jobless Claims Unexpectedly Rise To Nine-Month High First time claims for unemployment benefits showed another unexpected increase in the week ended August 14th, according to a report released by the Labor Department on Thursday, with the data likely to add to recent concerns about the outlook for the labor market. The report showed that initial jobless claims rose to 500,000 from the previous week's revised figure of 488,000. Economists had been expecting jobless claims to slip to 475,000. Full Article
Aug 19, 2010 Philly Fed Index Unexpectedly Indicates Contraction In August Manufacturing activity in the Philadelphia area has unexpectedly deteriorated in the month of August, the Federal Reserve Bank of Philadelphia revealed in a report on Thursday, with the index of regional activity unexpectedly falling into negative territory. The Philly Fed said its diffusion index of current activity fell to a negative 7.7 in August from a positive 5.1 in July, with a negative reading indicating a contraction in manufacturing activity. Full Article
Aug 19, 2010 Leading Indicators Index Shows Modest Increase In July After reporting a decrease in leading economic indicators for June, the Conference Board released a report Thursday morning showing a modest increase in its leading indicators index for July. However, the index increased by less than economists had expected. The report showed that the leading indicators index edged up by 0.1 percent in July following a revised 0.3 percent decrease in June. Economists had expected the index to increase by 0.2 percent. Full Article

Earnings News

Aug 19, 2010 Staples Profit Boosted By Cost Cuts Office products company Staples Inc. (SPLS) Thursday posted a higher profit for the second quarter, aided by lower expenses. While adjusted per share earnings came in line with Street view, revenues fell short of consensus. Further, the company revised its earnings forecast for the full year. Full Article
Aug 19, 2010 Intel To Buy Security Software Firm McAfee For $7.68 Bln - Update Technology giant Intel Corp. (INTC) Thursday said it entered into a definitive agreement to acquire security technology company McAfee, Inc. (MFE) for $48 per share in cash, totaling approximately $7.68 billion. MFE shares increased around 58% in pre-market activity on the NYSE. Full Article
Aug 19, 2010 Ross Stores Q2 Profit Rises, Boosts 2010 Outlook Off-price retail chain Ross Stores, Inc. (ROST) reported Thursday a 25% year-over-year increase in profit for the second quarter, boosted by higher margins, sales growth and lower inventories. Sales were up 4% at established stores. Earnings per share for the quarter rose 30% and came in line with analysts' expectations, while quarterly revenues also increased 8%, but missed consensus estimate by a whisker. Full Article

Corporate News

Aug 19, 2010 McDonald's Makes History With Hong Kong Bond Offering Fast-food chain McDonald's Corp. (MCD) said Thursday that it will issue $29.4 million of yuan-denominated bonds in Hong Kong, becoming the first non-financial foreign company to make such an offering in the city's debt capital market. The Oak Brook, Illinois-based company sold 200 million yuan of 3% notes to institutional investors in Hong Kong, saying it was another sign of the company's confidence in its long-term growth opportunities in China. The notes have a maturity date of September 2013. The company will use the proceeds to help fund its expansion in China, including the opening of new restaurants. Full Article

Forex Top Story

Aug 19, 2010 Dollar Mixed As Jobless Claims Hit 500,000 The dollar swerved back and forth versus other majors on Thursday, gaining versus the euro despite another dismal reading on the US jobs market. First time claims for unemployment benefits showed another unexpected increase in the week ended August 14th, according to a report released by the Labor Department on Thursday. Full Article

Political News

Aug 19, 2010 Canadian Senate Committee Rules Out Ban On Offshore Drilling A Canadian Senate Committee says there is no need for a moratorium on off-shore drilling in Canadian waters. The bipartisan committee on Energy, Environment and Natural Resources arrived at the conclusion after probing the state of off-shore drilling in Canada. Full Article

WSJ: This Week's Most Popular: Is a Crash Coming? Ten Reasons to Be Cautious

Could Wall Street be about to crash again?

This week's bone-rattlers may be making you wonder.

I don't make predictions. That's a sucker's game. And I'm certainly not doing so now.

But way too many people are way too complacent this summer. Here are 10 reasons to watch out.

1. The market is already expensive. Stocks are about 20 times cyclically-adjusted earnings, according to data compiled by Yale University economics professor Robert Shiller. That's well above average, which, historically, has been about 16. This ratio has been a powerful predictor of long-term returns. Valuation is by far the most important issue for investors. If you're getting paid well to take risks, they may make sense. But what if you're not?

The Big Interview with David Rosenberg

2. The Fed is getting nervous. This week it warned that the economy had weakened, and it unveiled its latest weapon in the war against deflation: using the proceeds from the sale of mortgages to buy Treasury bonds. That should drive down long-term interest rates. Great news for mortgage borrowers. But hardly something one wants to hear when the Dow Jones Industrial Average is already north of 10000.

3. Too many people are too bullish. Active money managers are expecting the market to go higher, according to the latest survey by the National Association of Active Investment Managers. So are financial advisers, reports the weekly survey by Investors Intelligence. And that's reason to be cautious. The time to buy is when everyone else is gloomy. The reverse may also be true.
roi0812 Associated Press
Crowds panic on Wall Street on Oct. 24, 1929.

4. Deflation is already here. Consumer prices have fallen for three months in a row. And, most ominously, it's affecting wages too. The Bureau of Labor Statistics reports that, last quarter, workers earned 0.7% less in real terms per hour than they did a year ago. No wonder the Fed is worried. In deflation, wages, company revenues, and the value of your home and your investments may shrink in dollar terms. But your debts stay the same size. That makes deflation a vicious trap, especially if people owe way too much money.
5. People still owe way too much money. Households, corporations, states, local governments and, of course, Uncle Sam. It's the debt, stupid. According to the Federal Reserve, total U.S. debt—even excluding the financial sector—is basically twice what it was 10 years ago: $35 trillion compared to $18 trillion. Households have barely made a dent in their debt burden; it's fallen a mere 3% from last year's all-time peak, leaving it twice the level of a decade ago.
6. The jobs picture is much worse than they're telling you. Forget the "official" unemployment rate of 9.5%. Alternative measures? Try this: Just 61% of the adult population, age 20 or over, has any kind of job right now. That's the lowest since the early 1980s—when many women stayed at home through choice, driving the numbers down. Among men today, it's 66.9%. Back in the '50s, incidentally, that figure was around 85%, though allowances should be made for the higher number of elderly people alive today. And many of those still working right now can only find part-time work, so just 59% of men age 20 or over currently have a full-time job. This is bullish?



(Today's bonus question: If a laid-off contractor with two kids, a mortgage and a car loan is working three night shifts a week at his local gas station, how many iPads can he buy for Christmas?)
7. Housing remains a disaster. Foreclosures rose again last month. Banks took over another 93,000 homes in July, says foreclosure specialist RealtyTrac. That's a rise of 9% from June and just shy of May's record. We're heading for 1 million foreclosures this year, RealtyTrac says. And naturally the ripple effects hurt all those homeowners not in foreclosure, by driving down prices. See deflation (No. 4) above.
8. Labor Day is approaching. Ouch. It always seems to be in September-October when the wheels come off Wall Street. Think 2008. Think 1987. Think 1929. Statistically, there actually is a "September effect." The market, on average, has done worse in that month than any other. No one really knows why. Some have even blamed the psychological effect of shortening days. But it becomes self-reinforcing: People fear it, so they sell.
9. We're looking at gridlock in Washington. Election season has already begun. And the Democrats are expected to lose seats in both houses in November. (Betting at InTrade, a bookmaker in Dublin, Ireland, gives the GOP a 62% chance of taking control of the House.) As our political dialogue seems to have collapsed beyond all possible hope of repair, let's not hope for any "bipartisan" agreements on anything of substance. Do you think this is a good thing? As Davis Rosenberg at investment firm Gluskin Sheff pointed out this week, gridlock is only a good thing for investors "when nothing needs fixing." Today, he notes, we need strong leadership. Not gonna happen.
10. All sorts of other indicators are flashing amber. The Institute for Supply Management's manufacturing index, while still positive, weakened again in July. So did ISM's new-orders indicator. The trade deficit has widened, and second-quarter GDP growth was much lower than first thought. ECRI's Weekly Leading Index has been flashing warning lights for weeks (though the most recent signals have looked somewhat better). Europe's industrial production in June turned out considerably worse than expected. Even China's steamroller economy is slowing down. Tech bellwether Cisco Systems has signaled caution ahead. Individually, each of these might mean little. Collectively, they make me wonder. In this environment, I might be happy to buy shares if they were cheap. But not so much if they're expensive. See No. 1 above.
Write to Brett Arends at brett.arends@wsj.com

Fox Breaking News: Bears Retake Gains . August 19th., 2010


Trader 104 [276]
Bears Retake ReignsWall Street's double-dip jitters resurfaced as the Dow tumbled nearly 150 points in the aftermath of disappointing economic data.
THE MOST POWERFUL NAME IN BUSINESS NEWS

Net Neutrality Debate Heats Up

WATCH Former FCC Chairman Michael Powell on the government's role in regulating the Internet.

ShoreBank Situation Critical

ShoreBank officials say there’s a '50-50' chance efforts to rescue the institution will fail. | WATCH

The Deflation Debate

EMac A look at how the Federal Reserve should react if the economy faces rampant deflation.

Profit in Private Label

How one entrepreneur generates most of her sales from private label, and how you can do the same.
 



Market Snapshot
Index Last Change %Change  
DJIA 10,271.21 -144.33 1.39% Hilighted
Nasdaq 2,178.95 -36.75 1.66%  
S&P 500 1,075.57 -18.59 1.70%  
FOX 50 779.15 -12.85 1.62%  
DIJA Chart
 

GATA : THE GATA DISPATCH: Peter Brimelow: Gold Gearing up? / Hinde Capital report: Silver velocity -- the coming bullet: August 19th., 2010

Peter Brimelow: Gold gearing up?

By Peter Brimelow
MarketWatch.com
Thursday, August 19, 2010
http://www.marketwatch.com/story/rapturous-gold-bugs-see-new-highs-ahead...
NEW YORK -- Is gold gearing up for new highs? Rapturous radical bugs say yes.
Wednesday may prove to have been a very important day in gold. Gold broke early in the day, but then metal reversed, closing higher than Tuesday's high. For technicians, this amounts to an outside reversal.
The Wednesday close put gold back to the level of June 30 and some $73 higher than the July 27 low.
Back then, almost the only cheerful group was what I have call the "radical gold bugs" mustered around Bill Murphy's banner at LeMetropole Cafe.



I quoted Murphy saying: "As long as the physical market holds up, it is only a matter of time before gold and silver go back up and make new highs." Murphy's prediction seems to be happening.
On Wednesday night, Richard Russell commented:
"Strange, the clearest pattern I see in any item is in gold. ... Below, gold is a picture-perfect head-and-shoulders bottoming formation. Over the last few days gold has broken out to the upside. The breakout is capable of taking gold to the previous record highs."
What is particularly interesting is that, for once, the gold shares agree.
Two weeks ago the Chartist Martin Pring stipulated in his weekly Infomovie Report that although recent gold action "hints at a possible rally ... until SPDR Gold Trust ETF (GLD) and the Market Vectors Gold Miners ETF (GDX) can take out previous minor highs at $120 and $52 I am remaining cautious."
But on Wednesday both instruments achieved these levels. This is an important matter for Pring, who has traditionally laid great weight on the forecasting capabilities of gold shares.
Gold bugs are also taking heart from other factors. They have learned to rely on a powerful upswing in physical demand for gold starting in late August and running through the end of the year.
This is because of the wedding season in India, by far the world's largest gold importer. The research department of Canada's CIBC has recently pointed out that gold has risen in September in 16 of the last 20 years. Holding for the whole of the last four months of the year has provided double the returns of September alone.
LeMetropole Cafe, which pays close attention to regional gold markets, has indeed been reporting signs of stronger buying out of India, Turkey, and even Iran. This is expected to more than offset weaker bids from the Far East -- Vietnam, China, and Japan.
This evening's weekly update from the Aden Report is on board for the ride:
"With each passing day, gold is reinforcing that a renewed rise is under way. This is incredibly bullish because it's saying that the six week 8% decline from June 18 to July 26 is all we are going to get. ...
"If gold, basis December, now stays above $1,213, the D decline will be over and the rise could then easily test the June highs. But if gold closes at a new record high above $1,258.30, it will show super strength due to several reasons. A mild D decline, followed by a record 'A' rise high, at a time when a second phase of the bull market is under way, essentially means an explosive rise could be at hand. Gold shares are backing this up as the HUI gold share index closed at a seven week high today."

MarketWatch: Special Financial Services News:Financial Stocks: Financial sector drops after jobs disappoint/Mortgages: Fixed-rate mortgages break record low: Freddie Mac. August 19th., 2010


MarketWatch
Special financial Services News

Financial Stocks: Financial sector drops after jobs disappoint

By MarketWatch


Financial stocks traded lower Thursday after a closely watched weekly jobs number came in weaker than expected and gave fresh ammunition to the bear camp. See full story

Mortgages: Fixed-rate mortgages break record low: Freddie Mac


By Amy Hoak MarketWatch


Rates on fixed-rate mortgages dropped this week, according to Freddie Mac's weekly survey of conforming mortgage rates. It's the ninth week in a row that fixed-rate mortgages have met or set a record low, according to Freddie Mac's deputy chief economist. See full story


FORBES: Financial: : Doctor Doom : The Fed Warms Up The Helicopter: April 19th., 2010



Doctor Doom

The Fed Warms Up The Helicopter

Prajakta Bhide and Christian Menegatti, 08.19.10, 06:00 AM EDT

With the interest rate parked at zero and inflation below target and falling, the Federal Reserve concocts a new plan.




With one key sentence, the statement from the August Federal Open Market Committee (FOMC) meeting indicated changes afoot.
Prior to the Aug. 10 meeting, the emergence of a string of unimpressive economic data, including a dismal jobs report, put significant pressure on the Fed to show some cognizance of the stalling recovery. As anticipated, the Fed maintained its pledge to keep the federal funds target low for an extended period. More notable, however, is the committee's announcement that it plans to reinvest the principal payments on the Fed's mortgage-backed securities (MBS) and agency debt in Treasurys, thereby implicitly capping the Fed's securities holdings at current levels and ending the passive tightening from the runoff of its portfolio.

We have been seeing the Fed laying verbal groundwork for further monetary stimulus, which we consider warranted, and the latest announcement appears to be another signal of a forthcoming gradual policy shift. On its own, though, the latest move is likely to have limited implications for the broader economy. (For details on the expected impact of the intended purchases on Treasury yields, see this RGE Strategy Flash.)
We are not the only ones who have been saying the Fed needs to credibly commit to providing additional monetary stimulus to boost demand and alleviate deflation risks. One of the Fed's own, St. Louis Fed President James Bullard, in late July published a report highlighting research that indicates that “the U.S. is closer to a Japanese-style outcome today than at any time in recent history.” Just as we have, Bullard warns that keeping the nominal interest rate parked at zero is not enough to spark inflation and lubricate the economic gears. With inflation well below the Fed’s implicit target and falling, he says, there is a risk of policy becoming passive--ceasing to react to inflation dynamics and therefore losing its effect on inflation expectations. This could get the economy mired in an extended period of low inflation and nominal rates, a la Japan.
As a solution, Bullard calls for a policy shift to quantitative easing through the purchase of Treasury securities, modeled after the U.K., instead of the recent MBS program. Because "monetizing the debt" is widely believed to fuel inflation expectations, whereas the effects of purchasing MBS and agency debt are less certain, Bullard says buying longer-dated government debt is a more reliable tactic. The Fed's latest move marks the first step in that direction and likely reflects the preference many FOMC members have expressed for an expeditious return to the Fed’s traditional Treasurys-only portfolio.
Now we're speculating on how effective these and other alternative ways to provide additional policy stimulus could be--more on this in a forthcoming RGE Analysis.

MarketWatch : SPECIAL FINANCIAL SERVICES NEWS:Treasurys down after jobless claims/Israel Stocks: Israel stocks steady; Mizrahi Bank upgraded


MarketWatch
  FINANCIAL SERVICES)

Bond Report: Treasurys down after jobless claims  
By Deborah Levine MarketWatch


Treasury prices pare earlier gains after the U.S. Labor Department says the number of Americans filing for first-time jobless benefits in the latest week rose to 500,000. 



Israel Stocks: Israel stocks steady; Mizrahi Bank upgraded

By MarketWatch


Israeli stocks are steady, with weakness in Israel Chemicals offset by strength in banks, Bezeq and Teva Pharmaceutical. 

RTTNews: Dailuy Market Analysis: Corporate News May Prove Supportive To Markets

Daily Market Analysis Thu Aug 19 09:26 2010 

Aug 19, 2010 Corporate News May Prove Supportive To Markets - RTTNews Daily Market Analysi The major U.S. index futures are pointing to a higher opening on Thursday. Sentiment seems to be largely unaffected by a report released earlier in the day, which showed that jobless claims increased unexpectedly. That said, more economic data is on the deck and these data could sway the markets. Deal news and the announcement from General Motors about it proposed initial public offering could provide some encouragement to traders. Full Article

RTTnews: Daily Stocks to Watch: BSD Medical wins FDA endorsement for tissue-removal device . August 19th., 2010

Daily Stocks to Watch Thu Aug 19 09:02 2010 

Stocks To Watch

Aug 19, 2010 BSD Medical wins FDA endorsement for tissue-removal device BSD Medical Corp (BSDM) said it received FDA approval to market its soft tissue ablation device that targets the oncology market and an European approval is on the cards. The device, called the MicroThermX Microwave Ablation System or MTX-180, delivers targeted microwave energy to destroy soft tissue that connects, supports or surrounds non-skeletal structures in the body, such as ligaments, tendons and fat. BSD Medical estimates the soft tissue ablation world market potential to exceed $2 billion and believes that the MicroThermX System provides significant advantages over currently available radiofrequency energy that is utilized most frequently in the interventional oncology ablation market. Published studies have demonstrated that the use of microwave energy has numerous advantages over RF energy for the delivery of ablation therapy, and for these reasons, interventional oncology key opinion leaders regard microwave as the future of soft tissue ablation therapy, the compan Full Article
Aug 19, 2010 RADA Electronic turns to profit in Q2 – Stocks to Watch Israel based defense electronics contractor RADA Electronic Industries Ltd. (RADA) turned a profit in the second quarter, as revenues improved 125% and expenses decreased 24%. (An updated version follows) Full Article
Aug 19, 2010 Introducing RTT Growth & Value StocksThe Growth & Value Stocks service is designed with a disciplined approach of extensive fundamental analysis to cater swing traders and investors. The service identifies growth stocks that are generally overlooked and value stocks that are usually undervalued by the market. The growth and value stocks we select have significantly outperformed the broader market indices. Full Article

RTTNews: Morning Market Briefing: Weak Jobs Data May Lead To Lower Open On Wall Street - U.S. Commentary . August 19th., 2010

Morning Market Briefing Thu Aug 19 09:01 2010 

Commentary

Aug 19, 2010 Weak Jobs Data May Lead To Lower Open On Wall Street - U.S. Commentary Stocks are likely to come under pressure in early trading on Thursday, moving back to the downside after closing higher each of the two previous sessions. The major index futures are currently indicating a moderately lower open, with the Dow futures down by 28 points. Full Article

Economic News

Aug 19, 2010 Taiwan Maintains Double-Digit Growth In Q2 Taiwanese economy maintained double-digit growth in the second quarter on the back of strong exports, but the pace of expansion moderated slightly from the first three months of the year. Full Article
Aug 19, 2010 Weekly Jobless Claims Rise To 500,000 First time claims for unemployment benefits showed another unexpected increase in the week ended August 14th, according to a report released by the Labor Department on Thursday, with the data likely to add to recent concerns about the outlook for the labor market. Full Article
Aug 19, 2010 N.Z. Producer Prices Climb On Higher Dairy, Meat Prices New Zealand producer prices climbed in the April to June period led by higher dairy, meat and fuel prices, a report showed on Thursday. A separate report showed that New Zealand's capital goods prices also rose in the June quarter. Full Article
Aug 19, 2010 U.K. Public Sector Borrowing Falls Sharply The level of new U.K. public sector borrowing in July fell more than expected, figures showed on Thursday. Full Article
Aug 19, 2010 U.K. Retail Sales Growth Unexpectedly Accelerates British retail sales growth accelerated unexpectedly in July with strong performance in non-food sectors. Sales logged the largest rise since February. Full Article

Earnings News

Aug 19, 2010 Williams-Sonoma Q2 profit shoots up; boosts Q3, FY10 EPS above StreetThursday, Williams-Sonoma Inc. (WSM) said its second-quarter advanced significantly, as revenue grew 15.4% to surpass the Street view. Same-store sales climbed 13.6% from the past year. Looking ahead, the company lifted its third-quarter and full-year earnings outlook ranges above the current estimate of analysts. Full Article
Aug 19, 2010 Staples Q2 profit up 40%; lowers FY10 earnings ViewThursday, Staples Inc. (SPLS) said its second-quarter profit rose 40.4%, although revenue were almost flat from last year, helped by cost curtailments. Looking ahead, the company provided earnings and sales guidance for the third quarter, and lowered the top end of its full-year earnings per share guidance. Full Article
Aug 19, 2010 Sears Holdings Q2 loss narrowsThursday, Sears Holdings Corp. (SHLD) posted a much smaller loss for the second quarter, reflecting better margins at the company's Kmart stores. Revenue for the period dipped nearly 1% from last year. Full Article
Aug 19, 2010 Applied Materials turns to profit in Q3, beats estimate; guides Q4 earnings above StreetWednesday, Applied Materials Inc. (AMAT) said it returned to profit in the third quarter, reflecting strong performance by its semiconductor, display and crystalline silicon solar businesses. Both adjusted earnings and sales came in well above the Street view. Looking ahead, the company guided fourth-quarter earnings above the current estimate of analysts. Full Article
Aug 19, 2010 NetApp Q1 profit rises sharply, beats Street, guides Q2Wednesday, NetApp Inc. (NTAP) reported a sharp rise in first-quarter, reflecting more than a 50% growth in product revenues. Both earnings and revenue for the quarter came in above the Street view. Further, for the second quarter, the company guided earnings and revenue in line with the current estimate of analysts. Full Article
Aug 19, 2010 Limited Brands Q2 profit jumps; lifts FY10 EPS viewWednesday, Limited Brands, Inc. (LTD) reported a 140% jump in profit for the second quarter, helped by strong contribution from Victoria's Secret and Bath and Body Works brands, as well as one-time gains. Adjusted earnings came in above the Street view. Looking ahead, the company also boosted its earnings outlook for the full year, and provided guidance for the third quarter. Full Article
Aug 19, 2010 Brocade posts profit in Q3, meets Street; sees Q4 EPS below estimateWednesday, Brocade (BRCD) posted a profit for the third quarter, compared to loss last year, reflecting a 3.03% growth in product revenue, tax benefits, as well as lower expenses. Adjusted earnings came in line with the Street view, while revenue fell short of expectations. Looking ahead, the company guided fourth-quarter earnings below the Street view, and also provided guidance for the full year. Full Article
Aug 19, 2010 PetSmart Q2 profit up 24%; raises FY10 EPS above consensusWednesday, PetSmart Inc. (PETM) reported a 24.1% rise in profit for the second quarter, reflecting a 6.2% growth in sales. Comparable store sales grew 4.6% from the past year. Earnings surpassed the Street view, while revenues came in line. Further, the company provided earnings outlook for the third quarter, and boosted its full-year EPS view to a range above the current estimate of analysts. Full Article
Aug 19, 2010 GameStop Q2 profit rises 4.2%, yet misses estimate; lowers Q3 EPS view below estimateThursday, GameStop Corp. (GME) reported a 4.2% rise in profit in the second quarter, as total sales grew 3.4%. However, both earnings and revenue narrowly missed the Street view. The firm noted that same store sales for the period improved 0.9% and video game software sales increased 5.3% from last year. Looking ahead, the company trimmed its earnings outlook to a range below the consensus estimate of analysts, while reiterating its guidance for the full year. Full Article
Aug 19, 2010 Dollar Tree Q2 profit up 37%, beats Street; guides Q3, FY10Thursday, Dollar Tree, Inc. (DLTR) reported a 37% rise in second-quarter profit, as sales grew 12.7% on increases in both traffic and average ticket. The results were boosted also by a 200 basis point improvement in operating margin to 9.3%, reflecting a 60 basis point increase in gross margin and lower operating costs. Both earnings and revenue came in above the Street view. Comparable store sales for the period went up 6.7% year-over-year. Looking ahead, the company provided earnings and revenue guidance for the third quarter, while guiding full-year earnings below the current estimate of analysts. Full Article
Aug 19, 2010 Dick's Sporting Goods Q2 profit up 32%, beats Street; guides Q3 EPS below estimateWednesday, Dick's Sporting Goods Inc. (DKS) reported a 32.3% rise in profit for the second quarter, as sales grew 8.8% from last year, helped by contribution from new stores as well as same-store sales growth of 5.7%. Earnings for the quarter came in above the Street view. Operating margin expanded 152 basis points to 7.18%, helped by the absence of year-ago merger and integration costs, as well as a 187 basis point improvement in gross margin. Looking ahead, the company guided third-quarter earnings below the Street view, while raising outlook for the full year. Full Article
Aug 19, 2010 Ross Stores Q2 profit up 25%, meets Street; boosts FY10 EPS viewThursday, Ross Stores Inc. (ROST) said its second quarter profit jumped 25%, as sales grew 8% from last year. Earnings came in line with Street view, while revenue fell short narrowly. Comparable store sales improved 4% year-over-year. The company also noted that operating margin for the period expanded about 140 basis points to 11.1%. Looking ahead, Ross Stores provided outlook for the third quarter and lifted fiscal 2010 earnings guidance. Full Article
Aug 19, 2010 Yingli Green Energy turns to profit in Q2, beats StreetThursday, Yingli Green Energy Holding Co. Ltd. (YGE) posted a profit for the second quarter, compared to loss last year, as revenue grew 81% on improved demand. The company also slightly lifted its 2010 profit margin guidance. Earnings came in above the Street view. Full Article

Corporate News

Aug 19, 2010 Exxon abandons plans to buy Ghana oilfield assetsWednesday, Exxon Mobil Corp. (XOM) said it gave up plans to buy $4 billion worth assets in Jubilee oilfield in Ghana from Kosmos Energy LLC. The deal was strongly opposed by Ghana’s government, which later expressed its interest in obtaining the stake through Ghana National Petroleum Corp. Full Article
Aug 19, 2010 MasterCard to buy DataCash for US$520 mlnThursday, MasterCard Inc. (MA) said it agreed to buy DataCash Group plc for about GBP 333 million or US$520 million, in a 360 pence per share cash deal. The company expects the purchase to be dilutive to its fourth-quarter earnings by $0.05 per share, breakeven in 2011, and turn accretive in 2012. MasterCard also said it seeks to close the deal by October end. Full Article

Todays WS Events

Aug 19, 2010 Intel Webinar At 10:00 AM ET, On McAfee Acquisition Intel Corp. (INTC) and McAfee (MFE) will jointly host a conference call at 10:00 AM, ET, on August 19, 2010, to discuss Intel's acquisition of McAfee. To access the live webcast, log on at http://intelstudios.edgesuite.net/100819_intel/index.htm
Aug 19, 2010 Hewlett-Packard Q3 10 Earnings Conference Call At 6:00 PM ET Hewlett-Packard Company (HPQ) will host a conference call at 6:00 PM ET August 19, 2010, to discuss its Q3 10 earnings performance. To participate in the webcast, log on to www.hp.com/investor/2010Q3webcast
Aug 19, 2010 Staples Q2 10 Earnings Conference Call At 8:00 AM ET Staples Inc. (SPLS) will host a conference call at 8:00 AM ET, August 19, 2010, to discuss its Q2 10 earnings results. To access the live webcast, log on at http://investor.staples.com
Aug 19, 2010 Mastercard Conference Call At 9:00 AM ET On DataCash Group Plc Acquisition MasterCard Incorporated. (MA) will host a conference call at 9:00 AM ET, on August 19, 2010, to discuss the acquisition of DataCash Group plc. To access the live webcast, log on at www.mastercard.com To hear the live call, dial 866-831-6224 (US) or 617-213-8853 (International) with passcode 39132639. A replay of the call can be heard by 888-286-8010 (US) and 617-801-6888 (International) and using passcode 32246546.
Aug 19, 2010 Caterpillar 2010 Analyst Meeting At 2:00 PM ET Caterpillar Inc. (CAT) CEO, Doug Oberhelman, will host its annual meeting with financial analysts and institutional shareholders. The event is scheduled to begin at 2:00 PM ET, August 19, 2010. To listen to the webcast, log on to www.cat.com/ir-event-calendar
Aug 19, 2010 Dell Q2 11 Earnings Conference Call At 4:45 PM ET Dell Inc. (DELL) will host a conference call at 4:45 PM ET, August 19, 2010, to discuss its Q2 11 earnings result. To access the webcast, log on at www.visualwebcaster.com/event.asp?id=70525
Aug 19, 2010 Gap Q2 10 Earnings Conference Call At 5:00 PM ET Gap Inc. (GPS) will host a conference call at 5:00 PM ET, August 19, 2010, to discuss its Q2 10 earnings resutls. To access the live webcast, log on at www.gapinc.com To listen to the call, dial 1-800-374-0168 or 706-634-0994 (International).

Stocks To Watch

Aug 19, 2010 BSD Medical wins FDA endorsement for tissue-removal device BSD Medical Corp (BSDM) said it received FDA approval to market its soft tissue ablation device that targets the oncology market and an European approval is on the cards. The device, called the MicroThermX Microwave Ablation System or MTX-180, delivers targeted microwave energy to destroy soft tissue that connects, supports or surrounds non-skeletal structures in the body, such as ligaments, tendons and fat. BSD Medical estimates the soft tissue ablation world market potential to exceed $2 billion and believes that the MicroThermX System provides significant advantages over currently available radiofrequency energy that is utilized most frequently in the interventional oncology ablation market. Published studies have demonstrated that the use of microwave energy has numerous advantages over RF energy for the delivery of ablation therapy, and for these reasons, interventional oncology key opinion leaders regard microwave as the future of soft tissue ablation therapy, the compan Full Article