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Aug 27, 2010

MarketWatch : Weekly Roundup : Top Stories of the Week.Agust 27th., 2010

 August
MarketWatch

Weekly Roundup
AUGUST 27, 2010

MarketWatch's top stories of the week

By MarketWatch



U.S. stocks soared Friday, making significant progress toward erasing the week's declines, as investors searching for a reason to be confident were reassured by Federal Reserve Chairman Ben Bernanke's vow to do whatever it takes to revive the shaky economy.



Benchmark U.S. indexes rallied broadly on Friday. The Standard & Poor's 500 (SPX) rose 1.7% to 1,065, with observers noting that the 1,040 level had provided support earlier in the session; its weekly loss was sliced to 0.7%. The Dow Jones Industrial Average (DJIA) vaulted 165 points, or 1.7%, to end the week at 10,151, down 0.6% over that span. The Nasdaq Composite (COMP) gained 1.7% in Friday action to trim the week's retreat to 1.2%.

Meanwhile, in the bond market, Treasury prices dropped Friday, pushing long-term yields to their steepest one-day rise since June, after Bernanke, at a central-banking summit in Jackson Hole, Wyo., said that the Fed had set no triggers for further monetary-policy easing and that he sees continued economic growth.

Bonds also came under pressure when the Commerce Department revised lower its estimate of U.S. economic growth for the second quarter -- but not to the degree that many economists had been bracing for.

Yields on 10-year notes (UST10Y) rose 17 basis points to 2.65%. On Wednesday, the benchmark's yields fell as low as 2.42%, their lowest level since January 2009.

As you get ready for next week's market action, please take a look at out our weekly previews for the Asian, European and U.S. markets:

 Asia's Week Ahead: Chinese manufacturing and more.

 Europe's Week Ahead: Carrefour and Vivendi ready to report.

 U.S. Week Ahead: Consumer snapshots.


-- Greg Morcroft , assistant managing editor

Intel cuts sales forecast

Intel (INTC) cut its sales forecast, citing a weaker-than-expected personal-computer market in what appears to be an affirmation of rising fears of a tech slowdown. See full story on Intel's warning.

H-P, Dell raise offers for 3Par

The bidding war for 3Par (PAR) intensified as the weekend neared. With both Hewlett-Packard (HPQ)and Dell raising their takeover offers, the latest bid valued the small data-storage company at $2 billion. Investors in 3Par cheered the news, driving the stock up nearly 22% to $31.71 -- more than 4% above the highest bid price, signaling a hope for more offers. Read all about the 3Par bidding war.

Fed 'will strongly resist' deflation: Bernanke



Federal Reserve Board Chairman Ben Bernanke said Friday that the central bank would not sit idly and let the U.S. economy sink into a period of deflation. "The Federal Open Market Committee will strongly resist deviations from price stability in the downward direction," Bernanke said in a speech opening the Fed's annual summer policy retreat. See related First Take analysis of the Bernanke speech. The Fed would be "vigilant and proactive" if inflation cools by a significant amount, he said, though he downplayed concern that the economy would fall back into recession. See full story on Bernanke's Jackson Hole speech

Money managers are optimistic -- but clients aren't

A majority of investment advisers say that a double-dip recession is unlikely and that the stock market will improve over the next six months -- but their clients are more worried, according to a survey of money managers released Wednesday by Schwab. Almost 60% of advisers said it's unlikely the U.S. economy will head back into recession in the next six months -- 28% said it's likely to happen -- and 63% said the S&P 500 will rise in that time, according to the July poll. Read about the divergence of managers' and clients' market views.

Commentary: Housing still at heart of our problems

How in the world can Americans feel secure when the value of their single biggest asset is dropping? Americans have already lost more than $6 trillion, on paper, on the value of their homes. Millions have lost something more tangible: the roof over their heads. Now, four years after the housing bubble began to explode, it looks like home owners may have to accept further losses before it's all over. Read MarketWatch First Take about impact of this week's record poor housing data.

Busy August fuels M&A-boom speculation

For investment banks, August is the sleepiest month, sending deal makers to the beach. But not this year. There have been $217.9 billion in mergers and acquisitions this month. That makes this the fourth-busiest August ever, not far behind the dot-com go-go years of 1999 and 2000 and the credit-boom year of 2006, when leveraged buyouts reigned. Last August, there was less than $130 billion worth of deals, according to Thomson Reuters. "I wish I could have gone on vacation," said Gene Ramirez, a managing director with the technology investment banking group at Morgan Joseph LLC. "I was supposed to." See the full story about M&A activity in August.

Foreclosures drop, but new delinquencies rise

The percentage of homes in the foreclosure process fell in the second quarter, the first drop since 2006 and the largest quarter-to-quarter drop since 2005, the Mortgage Bankers Association said Thursday. Still, the quarterly delinquency report showed that short-term delinquencies are on the rise -- a foreboding number that could signal more foreclosures in the future. Read more about the condition of U.S. residential real estate.

SEC approves rule giving shareholders new power

Setting the stage for a new round of battles between corporate leaders and shareholders, the Securities and Exchange Commission approved controversial regulations giving institutional investors significantly more power in corporate-director elections and behind-the-scenes negotiations with top executives starting in 2011. Read more on MarketWatch about new SEC rules


Google raises stakes with disruptive calling service

Google's effort to expand the use of its Internet calling service by enabling easy access through email accounts is likely to increase its status as a competitive threat to an already-wary telecommunications industry. Read about Google's foray into Web phone calls.

Revenge of the 2008 Republican ticket?

Two years after losing the race for the presidency, John McCain got a taste of victory, while his running mate for the 2008 presidential election, Sarah Palin, backed a tea-party favorite in a surprising victory. The Arizonan McCain handily won the GOP nomination for a fifth term for the U.S. Senate. But the real surprise came when Palin's choice for a Senate seat in Alaska, Joe Miller, appeared to have unseated incumbent Lisa Murkowski, giving the upstart tea-party movement a measure of momentum going into the general election. Read more about Tuesday's primary-election results.

NYT : Breaking News Alert: Justice Department Approves United-Continental Merger. August 27th., 2010



Breaking News Alert
The New York Times
Fri, August 27, 2010
Justice Department Approves United-Continental Merger

The Justice Department late Friday said that it had approved
the planned $3 billion merger between United Airlines and
Continental Airlines, lifting the biggest regulatory hurdle
to the creation of the world's top airline.

United and Continental, which announced their plans in May,
expect to complete their merger within a few weeks, after
shareholders of both companies vote on whether to approve the
deal, but they will continue to operate as separate airlines
for another year.

Read More:
http://www.nytimes.com?emc=na

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CNBC EVENING BRIEF: US Auto Sales Seen Sluggish on Economic Concerns. August 27th.,, 2010



LATEST STORIES


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





LATEST VIDEO

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    A look at the week's top business news stories, which stocks the pros are recommending and what you should watch for next week, with CNBC's Brooke Sopelsa.
    » Watch Video











  • The Battle for 3Par
    Insight on whether HP and Dell are overpaying for the company, with Stephanie Link, TheStreet.com; Rick Munarriz, The Motley Fool and CNBC's Herb Greenberg.
    » Watch Video











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    A look at the role the New Orleans Saints played in the city's rejuvenation, with team owner, Rita Benson LeBlanc; Michael Hecht, New Orleans president and CNBC's Scott Cohn.
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  • Parsing Bernanke's Outlook
    Fed Chairman Ben Bernanke said on Friday the recovery has softened more than expected and the Fed is ready to take further steps if needed to spur the stumbling economy. The Strategy Session pros share their views.
    » Watch Video











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    Insight on the German economy and more, with Axel Weber, president of the Deutsche Bundesbank and CNBC's Steve Liesman.
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»click here to see the latest top video from CNBC.com

MarketWatch : Personal Finance Daily: Personal Finance Stories.Saving for retirement is no simple task. August 27th., 2010


MarketWatch

Personal Finance Daily
AUGUST 27, 2010

Friday's Personal Finance stories

By MarketWatch




Don't miss these top stories:
Too many retirement savers know too well the anxiety of watching their investments shrink precipitously, and for those facing the often limited investment choices of a 401(k) plan, there seems to be nowhere to run in trying financial times.

Now some companies are responding to the desire for safe investment options by offering FDIC-insured bank products in their 401(k) plans. Read Robert Powell's column today for more on what these companies are offering, and for his take on whether savers really need this kind of product.

The trouble is that, no matter how much you may want to keep things simple, no one product will protect you from all the possible problems you'll encounter -- stock market volatility, bond-market bubbles, inflation, deflation.

-- Andrea Coombes , Personal Finance editor

Do 401(k)s need safer investment options?

You have to give the financial-services industry credit. If nothing else, the industry is great at cooking up products that tap into investors' fears.
See Robert Powell on do 401(k)s need safer investment options?


What to watch for in target-date funds

Target-date funds may make investing for retirement look easy -- as easy as estimating when you'll retire -- but they're actually more complicated than that. Andrea Coombes has four tips in her Personal Finance Minute before you make such an investment in your 401(k).
 Watch video on what to watch for in target-date funds.


TAXES

A tax fight is brewing

A huge battle over your taxes will break out in Congress after Labor Day, and its outcome could profoundly influence the November elections -- and your own income, capital gains, dividends, estate and other taxes.
See Marshall Loeb on a tax fight is brewing.


The tax credit that punishes

The Making Work Pay tax credit is causing some nasty surprises for some taxpayers who ended up with a withholding shortfall due to the credit.
See TaxWatch on the tax credit that punishes.


REAL ESTATE

The dark side of loan-modification assistance

A reader writes: I am currently working temporarily for a loan-modification law firm. I use the words "law firm" loosely. It is more of a call center filled with cubicles and salesmen calling themselves case representatives and paralegals.
See Realty Q&A on the dark side of loan-modification assistance.


ECONOMY & POLITICS

U.S. economic growth slows to 1.6% in second quarter

U.S. economic growth slowed to 1.6% in the second quarter, the Commerce Department said Friday, two-thirds the rate that the agency had initially projected for the April-through-June period as imports surged.
See story on U.S. economic growth slows to 1.6% in second quarter.


What we learned about the economy this week

As the $8,000 tax credit for home buyers expired, new-home sales plunged more than 12% to a series low in July -- even as 30-year fixed-rate mortgages are at record lows.
See story on what we learned about the economy this week.


A busy August for deals fuels M&A speculation

For investment banks, August is the sleepiest month, sending dealmakers to the beach. But not this year.
See story on a busy August for deals fuels M&A speculation.


Consumer confidence rises in August

Consumer confidence rose slightly in August but still remains weak, according to a report released Friday.
See story on consumer confidence rises in August.


Bernanke talks tough on deflation

Federal Reserve Board Chairman Ben Bernanke said Friday that the central bank would not sit idly and let the U.S. economy sink into a period of deflation.
See story on Bernanke talks tough on deflation.


Commentary: Double dip and other labels don't matter

The buzz is building on Main Street, Wall Street and Pennsylvania Avenue that the U.S. economy could be heading back into a recession.
See story on double dip and other labels don't matter.


INVESTING

Commentary: Contrarian takes on Dow below 10K

From a sentiment perspective, the Dow's dropping below the 10,000 level appears to be the straw that broke the camel's back.
See story on contrarian takes on Dow below 10K.


Commentary: If every collectable coin pitch came with a nickel, you'd be rich

People have visions of finding treasure or cashing in on a rarity when they hear about secret stashes of valuables. But the hordes of collectible coins that have been advertised on television and radio recently are not your chance to cash in, they're the Stupid Investment of the Week.
See Stupid Investment of the Week on coins that are chump change.


CAREERS

3Par employees, investors benefit from buyout war

The aggressive bidding war that has emerged for 3Par Inc. may drain the bank accounts of Hewlett-Packard Co. and Dell Inc., but employees and investors of the small data storage company may be laughing all the way to the bank.
See story on 3Par employees, investors benefit from buyout war.


PERSONAL TECH

Commentary: Low hopes for Microsoft's Phone 7

Can Microsoft Corp.'s Phone 7 leapfrog Android? The simple answer to that question is no, but we are about to perhaps witness what has been threatened for at least 20 years, Microsoft actually throwing its financial weight around to crush the competition.
See story on low hopes for Microsoft's Phone 7.

NFA : Emergency Enforcement Actions: NFA takes emergency enforcement action against Spirit Investments, Inc. and its principal, Scott A. Bottolfson. August 27th., 2010



For Immediate Release
For More Information Contact:
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org
Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org

NFA takes emergency enforcement action against Spirit Investments, Inc. and its principal, Scott A. Bottolfson
August 27, Chicago - National Futures Association (NFA) announced today that it has taken a Member Responsibility Action (MRA) and Associate Responsibility Action (ARA) against Spirit Investments, Inc. (Spirit) and its principal, Scott A. Bottolfson. Spirit is a Commodity Pool Operator NFA Member located in Encinitas, California.
NFA issued the MRA/ARA to protect customers of Bottolfson, Spirit, Kingship Fund (a pool operated by Spirit) and Increase Investments, Inc. (Increase), a Nevada entity owned by Bottolfson. Increase has no CFTC registration or NFA membership status. NFA received information that Bottolfson and Increase had obtained as much as $6 million from investors which Bottolfson and Increase represented to investors would be used to trade futures. This contradicted Bottolfson's representation to NFA that Increase only traded physicals and real estate. Based on this contradictory information, NFA commenced an investigation of Bottolfson and the entities controlled by him.
The MRA/ARA alleged that Bottolfson provided false and misleading information to NFA throughout its investigation; that most, if not all, of the millions of dollars that Bottolfson and Increase collected from investors is reportedly unaccounted for; that Bottolfson has refused to cooperate with NFA by providing NFA with documents and information requested by NFA which would enable NFA to ascertain how many individuals invested with Bottolfson, how much they invested, and what has happened to their investments; and that Bottolfson likely misappropriated or otherwise mishandled investors' funds.
The MRA/ARA prohibits Spirit and Bottolfson from soliciting or accepting any funds from customers or investors, commodity pools, other investment vehicles, or placing any trades on behalf of customers, commodity pools, or investors. Additionally, Spirit and Bottolfson are prohibited from disbursing or transferring any funds of customers, investors, commodity pools over which they exercise control, or participants in any such commodity pools, without prior approval from NFA.
The MRA/ARA will remain in effect until such time Spirit and Bottolfson demonstrate that they are in complete compliance with all NFA Requirements. Spirit and Bottolfson may request a prompt hearing before NFA's Hearing Committee.
The complete text of the MRA/ARA is available on NFA's website (www.nfa.futures.org).
The following Compliance staff members are responsible for this case: Michael Braden (312-781-1576) and Vilia Sutkus-Kiela (312-781-1346).
NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.

NYT : Afternoon Business News | Afternoon Business Update. August 27th., 2010




BUSINESS:

Your Money

In Defense of Home Ownership

 
By RON LIEBER
Many home purchases could still end in grief financially, particularly in hard-hit areas where prices could fall further. But most probably won't.

Wall Street Looks to End Week on Up Note

 
By CHRISTINE HAUSER
Shares rose after the latest revision in the second-quarter growth came in slightly better than expected and on remarks from the Federal Reserve chairman.

Boeing Delays Delivery of Dreamliner

 
By BETTINA WASSENER and NICOLA CLARK
Boeing now expects delivery of the first 787 Dreamliner in the middle of the first quarter 2011, owing to a delay in engine availability.
Media Decoder Blog

USA Today Will Reorganize and Shed Jobs

 
By JEREMY W. PETERS
USA Today, embarking on the most extensive reorganization in its 28-year history, announced plans on Friday to shed 9 percent of its workforce and shift its emphasis to digital media operations.

Drought in Russia Ripples Beyond the Wheat Fields

 
By ANDREW E. KRAMER
The drought "has been a watershed event for the industry," one analyst said. Russia may need to import grain for the first time since 2004.

RTTNews: Evening Market Wrap : Stocks Rally As Bernanke Reassures Investors - U.S. Commentary . August 27th., 2010

Evening Market Wrap Fri Aug 27 17:01 2010 

Commentary

Aug 27, 2010 Stocks Rally As Bernanke Reassures Investors - U.S. Commentary Stocks rallied to close out the week on Friday, as Federal Reserve Chairman Ben Bernanke reassured investors that the Fed would take action if economic conditions worsen further. The markets also benefited from a downward revision to second quarter GDP growth that was not quite as severe as some had feared. Full Article

Economic News

Aug 27, 2010 Downward Revision To Q2 GDP Growth Not As Severe As Feared Economic activity in the second quarter expanded by far less than previously estimated, according to a report released by the Commerce Department on Friday, although the downward revision to the pace of gross domestic product growth was not quite as severe as economists had expected. Full Article
Aug 27, 2010 Bernanke: Fed Stands Ready To Support Recovery The Federal Reserve stands ready to provide further stimulus if the economic situation deteriorates rapidly, the nation's top central banker said Friday. Soon after government data showed that the US economy grew at a slower pace in the second quarter than initially estimated, Federal Reserve Chairman Ben Bernanke acknowledged that economic activity has been "somewhat less vigorous" than policymakers were expecting. Full Article

Earnings News

Aug 27, 2010 Tiffany Profit Rises On Margin Improvement, Lifts Full-year Earnings View Jewelry retailer Tiffany & Co. (TIF) reported Friday a rise in profit for the second quarter, helped by sales growth and improved margins. Citing better-than-expected results and continuing margin improvement, the company lifted its full-year earnings outlook. Full Article

Forex Top Story

Aug 27, 2010 Dollar Rises Versus Yen After Bernanke Comments The dollar fought back against the yen and was mixed against other majors on Friday, after the head of the Federal Reserve said the central bank stands ready to support the economy with "unconventional measures" if needed. In a highly anticipated speech to central bankers and economists in Wyoming, Fed Chair Ben Bernanke acknowledged that the economy had slowed somewhat. Full Article

Political News

Aug 27, 2010 Muslim Americans Give Obama Highest Approval RatingsPresident Barack Obama has strong support among Muslim Americans, according to the results of a Gallup poll released on Friday, while his approval rating among Mormons is the lowest of any major religious group in the U.S. The poll showed Obama with a 78 percent approval rating among Muslim Americans in the January to July 2010 period, although that is down from 83 percent in the July to December 2009 period. Full Article

U.S. Markets At Close Snapshot:: August 27th., 2010


                         

                     INDEX                   LAST        CHANGE         % CHANGE
                                               
                     DOW                   10,151.10     +165.29                 1.66%
                                                 
                     S&P 500               1,065.08      +  17.86                  1.71%


                     NASDAQ             2,153.81       + 35.12                  1.65%   

AUGUST 27, 2010

MarketWatch : Special Financial Services Microsoft co-founder sues Apple, Google , Others. August, 27., 2010

MarketWatch
:financial Services
 
Microsoft co-founder sues Apple, Google, others
 
By John Letzing MarketWatch


Microsoft Corp. co-founder Paul Allen has filed a lawsuit alleging that Apple Inc., Google Inc., Facebook Inc., AOL Inc., Yahoo Inc. and others have infringed on intellectual property owned by Allen's Interval Licensing LLC. 


 
By Alistair Barr MarketWatch


Rumors that Toronto-based insurer Manulife Financial offered to acquire Lincoln National for $32 a share fueled a rally in the stock, according to brokerage firm Interactive Brokers. 


 
By Alistair Barr MarketWatch


The head of hedge-fund firm SAC Capital Advisors, Steve Cohen, holfd a strategy session earlier this week at his home to discuss how the Republican Party can win the midterm elections. 



The Washington Post : Afternoon Edition : Most viwed Articles on Washington Post . Com. August 27., 2010

 Most Viewed Articles on washingtonpost.com

1) The last refuge of a liberal

The only hope for liberals is to play the race card.

2) It's still King's moment

Glenn Beck cannot diminish Martin Luther King Jr. and his dream.

3) Google continues the assault on the price of a phone call

What's a phone call worth these days? A Verizon phone booth in a Metro station suggests one answer: 50 cents. Another comes from Verizon's cheapest landline service option, which charges 10.2 cents a call. If you use a cellphone or subscribe to a voice-over-Internet-Protocol calling plan, the num...

4) Iowa foes of same-sex marriage seek to oust judges who legalized it

Opponents of same-sex marriage are seeking retribution against three justices on the Iowa Supreme Court, which legalized same-sex unions in the state last year.

5) In a city ambivalent about fashion, Web site recruits style mavens to connect with the masses

Style for Hire is a new online agency aiming to give the masses access to master mythmakers. Washington is the launching pad, the company's test market.

6) Uneven Katrina recovery efforts often offered the most help to the most affluent

IN NEW ORLEANS The massive government effort to repair the damage from Hurricane Katrina is fostering a stark divide as the state governments in Louisiana and Mississippi structured the rebuilding programs in ways that often offered the most help to the most affluent residents.

7) Among Democrats, economic pressures are changing tax-cut dynamics

With the economy rapidly weakening, some senior Democrats are having second thoughts about raising taxes on the nation's wealthiest families and are pressing party leaders to consider extending the full array of Bush administration tax cuts, at least through next year.

8) Time to go beyond a stimulus

There is no political center that can anchor consensus and enable sustained implementation of policy.

9) Immigration policies sparking tensions within ICE

As it poises for further immigration initiatives, U.S. Immigration and Customs Enforcement is struggling with festering internal divisions between political appointees and career officials over how to enforce laws and handle detainees facing deportation.

10) World Series tix could get NY governor in trouble

ALBANY, N.Y. -- Gov. David Paterson could face a criminal charge for what a special counsel called inaccurate and misleading testimony on tickets he secured last year from the New York Yankees for the opening game of the World Series.

MarketWatch: Special Financial Services : Bond Report. August 27th., 2010

MarketWatch
FINANCIAL SERVICES
 
Bond Report: Treasurys off after GDP data with Bernanke on deck
 
By Deborah Levine MarketWatch


Treasury extend their pullback,sending yields higher, as revised Commerce Department data show 1.6% U.S. economic growth for the second quarter, down from a 2.4% forecast previously but not as bad a performance as many economists had been bracing for. 

RTTNews: Saily Market Analysis. Benign Downward Revision To GDP May Help Stocks Stage Comeback. August 27th., 2010

Daily Market Analysis Fri Aug 27 09:26 2010 

Aug 27, 2010 Benign Downward Revision To GDP May Help Stocks Stage Comeback - RTTNews Daily Market Analysis The major U.S. index futures are pointing to a higher opening on Friday, with sentiment improving following the release of the preliminary second quarter GDP report, which showed a smaller than expected downward revision to growth. Given the uncertainty surrounding the economic recovery, the consumer sentiment report to be released shortly after the markets open and a speech by Federal Reserve Chairman Ben Bernanke due later in the day could also help in determining market direction. Full Article

RTTNEWS : Morning Market Briefing: Stocks Poised For Solid Gains After Revised GDP Data - U.S. Commentary . August , 27th., 2010

Morning Market Briefing Fri Aug 27 09:01 2010  

Commentary

Aug 27, 2010 Stocks Poised For Solid Gains After Revised GDP Data - U.S. Commentary Stocks are likely to see notable strength in early trading on Friday, as the markets are digesting a smaller than expected downward revision to second quarter GDP growth. The major index futures are all in positive territory, with the Dow futures up by 62 points. Full Article

Economic News

Aug 27, 2010 Dollar Pauses For Bernanke Speech, GDP FiguresThe major currencies stood practically still Friday morning as all eyes turned to Jackson Hole, Wyoming, in search of clarity on the Federal Reserve's strategy to keep the fragile economic recovery going. Full Article
Aug 27, 2010 South Korea Current Account Surplus RisesSouth Korea's current account surplus rose to a 16-month high in July due to higher shipments, the country's central bank said on Friday. Full Article
Aug 27, 2010 Japan Core CPI Falls 1.1% On Year In JulyConsumer prices in Japan were down 1.1 percent on year in July, the Ministry of Internal Affairs and Communications said on Friday, falling for the 17th consecutive month as deflationary pressures persist. Full Article
Aug 27, 2010 GDP Increases By Downwardly Revised 1.6% In Q2 Economic activity in the second quarter expanded by far less than previously estimated, according to a report released by the Commerce Department on Friday, although the downward revision to the pace of gross domestic product growth was not quite as severe as economists had expected. Full Article
Aug 27, 2010 UK Q2 GDP Growth Fastest Since 2001 The U.K. economy grew at its fastest pace since 2001 in the second quarter. Better-than-estimated growth was boosted by the construction activity. Full Article

Earnings News

Aug 27, 2010 Tiffany Q2 profit climbs 19%, beats Street; boosts FY10 EPS viewFriday, Tiffany & Co. (TIF) reported a 19% rise in second-quarter net profit, reflecting improved margins as well as a 9.2% growth in revenue. Adjusted earnings came in above the Street view, while revenue fell short of estimates. The company also noted that comparable store sales improved 5% year-over-year. Looking ahead, the company lifted its earnings outlook range for fiscal 2010, with the current estimate of analysts near the low end of the range. Full Article
Aug 27, 2010 J. Crew Q2 profit surges, tops Street; cuts FY10 view below consensus, guides Q3 EPS below StreetThursday, J. Crew Group, Inc. (JCG) reported a sharp rise in its second-quarter profit, reflecting improved margin and a 11% growth in same-store sales. Both earnings and revenue, which grew 14%, came in above the Street view. However, the firm cut its fiscal 2010 earnings outlook to a range below the current estimate of analysts and also guided third-quarter earnings to fall short of the consensus view. Full Article
Aug 27, 2010 Novell Q3 profit declines 6%, misses StreetThursday, Novell Inc. (NOVL) reported a 6% slide in third-quarter profit, as revenue shrank 8% amid customer uncertainty surrounding the possible sale of the company. Both adjusted earnings and revenues came in slightly below the Street view. Full Article
Aug 27, 2010 OmniVision Technologies turns to profit in Q1, beats Street; guides Q2 EPS above consensusThursday, OmniVision Technologies Inc. (OVTI) said it returned to profit in the first quarter, as revenue grew 83% from last year. Adjusted earnings came in above the Street view, while revenue fell short of expectations. The company also noted that gross margin expanded 450 basis points to 26.9% on improvement in product mix resulting from a substantial increase in 5-megapixel sensor revenues. Looking ahead, the company guided second-quarter earnings above the current estimate of analysts. Full Article
Aug 27, 2010 Frontline Q2 profit almost treblesFriday, Frontline Ltd. (FRO) reported almost a three-fold jump in its second-quarter profit, as revenues grew 26.5% from last year. The company noted that the latest quarter also benefited from gains relating to lease terminations. Full Article

Corporate News

Aug 27, 2010 HealthSpring to buy Bravo Health for $545 mlnFriday, HealthSpring Inc. (HS) said it agreed to buy privately held Bravo Health Inc. for $545 million. The company expects the deal to be accretive to its 2011 earnings by $0.45 - $0.55 per share. HealthSpring plans to take a charge of $0.20 per share for costs associated with the purchase. Full Article
Aug 27, 2010 Dell says 3Par accepts its new bid matching HP's sweetened bidFriday, Dell, Inc. (DELL) said 3PAR Inc. (PAR) accepted its new $1.8 billion offer that equals Hewlett-Packard Co.'s (HPQ) sweetened bid. Thursday, Hewlett-Packard Co. (HPQ) raised its bid for 3PAR to $27-per-share just hours after rival Dell said the target firm accepted its earlier renewed $1.6 billion offer. The bid price represents a 4% premium to 3PAR's Thursday closing stock price of $26.03. Full Article
Aug 27, 2010 ING Group to sell Canadian industrial properties for C$2 blnFriday, ING Group NV (ING) said it agreed to hive off its 50% stake in Canadian real estate investment fund ING Summit Industrial Fund LP to a joint venture between KingSett Capital and Alberta Investment Management Corp. ING Industrial Fund, an ING-managed property fund that owns the remaining 50%, has agreed to simultaneously sell its stake in Summit to the JV. The total transaction value is about C$2 billion, including assumed debt. The company expects the deal to close in the fourth quarter of 2010, and not to have a material impact on ING Group's results. Full Article

Todays WS Events

Aug 27, 2010 Tiffany Q2 10 Earnings Conference Call At 8:30 AM ET Tiffany & Co. (TIF) will host a conference call at 8:30 AM ET, August 27, 2010, to discuss its Q2 10 earnings results. To access the live webcast, log on at http://investor.tiffany.com/eventdetail.cfm?EventID=84727
Aug 27, 2010 Frontline Q2 10 Earnings Conference Call At 9:00 AM ET Frontline Ltd. (FRO) will host a conference call at 9:00 AM ET on August 27, 2010, to discuss Q2 10 earnings results. To access the live webcast log on to www.frontline.bm To listen to the call, dial 1866 239 0750 (US) or +44 207 138 0824 (Outside US); Conference ID is 5411190. For a replay call, dial 1866 932 5017 (US) or +44 (0) 207 111 1244 (Outside US).

Stocks To Watch

Aug 27, 2010 Nothing plastic…Environmental concerns may put this bio-plastics maker in a sweet spot. A recent multi-million dollar contract win into the European market, could be the propelling force to draw out this company from the shadows to the spotlight and to snap the stock out of its long stupor. Plastics are widely used because of their lightweight and low cost, but the disposal of plastics, especially the ones used for packaging, has become a major environmental issue, posing a serious challenge to waste management. Full Article

FOX BUSINESS: Breaking News: Economy Growth Slows . August 27th., 2010

FOX BUSINESS:

economy 276
Economy Growth Slows Gross domestic product expanded at a 1.6% annual rate instead of the 2.4% pace previously estimated.




THE MOST POWERFUL NAME IN BUSINESS NEWS

Futures Make Gains After Data

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The Washington Post: Ezra Kleinz Wonknook:Obama against environmentalists; Katrina recovery uneven; Dems pushing broader tax cuts. August 27th., 2010



 Friday, August 27, 2010
Wonkbook: Bernanke expected to announce policy; risky bets still allowed; SEC empowers shareholders Dylan Matthews is writing Wonkbook while Ezra is on vacation.
A new lawsuit finds the Obama administration arguing on behalf of utility companies against environmentalists trying to crack down on greenhouse gas emissions. Meanwhile, five years out from Katrina, New Orleans' white and upper class residents received more in recovery assistance than their black or working class neighbors. And some Congressional Democrats are pushing for the administration to extend the Bush tax cuts in their entirety for another year.
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The Obama administration is siding with utilities against environmental activists on a lawsuit before the Supreme Court, reports Steven Mufson: "The case dates to 2004, when eight state governments, the city of New York and three land trusts sued the Tennessee Valley Authority and five other utilities burning fossil fuels to generate electricity. The plaintiffs said the utilities' greenhouse emissions posed a 'public nuisance' because they contributed to climate change. They asked the court to order the utilities to reduce emissions 'by a specified percentage each year for at least a decade.' Although they lost in district court, a two-judge panel of the 2nd Circuit ruled in their favor on Sept. 21, 2009." The Hurricane Katrina recovery effort favored the wealth and white, reports Michael Fletcher: "This month, a federal judge ruled that the program's formula for calculating grants discriminates against black homeowners, who tend to live in neighborhoods with lower home values...Advocates say the more than $3 billion distributed by the state's housing recovery program went disproportionately to more-affluent residents. The plan paid up to $150,000 to homeowners whose properties were damaged by the unprecedented storm surge spawned by Katrina, but nothing to those whose homes suffered wind damage."
More and more Congressional Democrats are backing a year's extension of the full Bush tax cuts, reports Lori Montgomery: "Democrats said it has gained momentum since economist Mark Zandi, a key adviser to House Speaker Nancy Pelosi (D-Calif.), adopted that view during a presentation at a Democratic issues conference in California in mid-August...Some progressives are pushing back. In an op-ed this week in the Financial Times, John Podesta of the Center for American Progress and Robert Greenstein of the Center on Budget and Policy Priorities, argued that extending the high-income tax breaks even temporarily would send a bad signal to investors worried about rising U.S. debt."
Basement pop interlude: Tennis play "Marathon" live.
Still to come: A growing number of Republicans back higher taxes; Obama's environmental advisors largely stayed out of its offshore drilling policy decision-making; New Orleans' schools are improving five years after Katrina; and a member of al-Qaeda tries out for American Idol.
Economy/ FinReg

Benjamin Sarlin talks to right-leaning politicians and economists who are backing new taxes: "President Maya MacGuineas, a former adviser to John McCain, has called for a major energy tax to reduce the deficit... Domenici said that the tax cuts, which he helped put in place, are indeed a significant contributor to the deficit. 'There is no question that there is a big impact on the debt from the extension of the whole package,' he said."
The federal regulator overseeing Fannie and Freddie has a new theory of the two's collapse, reports Zachary Goldfarb: "Thursday's report from the Federal Housing Finance Agency said that Fannie and Freddie's portfolios weren't the major driver behind the companies' losses. Rather, it was the role the companies played as a guarantor of mortgages that led to most of their losses, the FHFA said. Geithner has also pointed to the weight of souring guaranteed loans as a source for the companies' troubles."
Foreclosures and delinquencies dropped a bit in the second quarter: http://bit.ly/dkLw27
The US trade deficit is hurting growth, reports Howard Schneider: "The rise in the trade deficit, including an abrupt 16 percent spike in June, is a chief reason economists are downgrading estimates for recent U.S. economic growth. Statistics to be released Friday are expected to show that the economy grew more slowly from April to June than initially thought, with a group of analysts polled by Bloomberg cutting their growth estimates to an annualized rate of 1.4 percent, down from 2.4 percent as reported by the government late last month."
Credit card reform is limiting card companies' marketing to college students: http://bit.ly/ddyKGI
Paul Krugman thinks this is not much of a "recovery": "The important question is whether growth is fast enough to bring down sky-high unemployment. We need about 2.5 percent growth just to keep unemployment from rising, and much faster growth to bring it significantly down. Yet growth is currently running somewhere between 1 and 2 percent, with a good chance that it will slow even further in the months ahead. Will the economy actually enter a double dip, with G.D.P. shrinking? Who cares? If unemployment rises for the rest of this year, which seems likely, it won’t matter whether the G.D.P. numbers are slightly positive or slightly negative."
David Brooks praises Germany's long-term economic planning: http://nyti.ms/cs4brw
Mohamed A. El-Erian argues that fiscal stimulus is not enough to put the US economy back on track: "With the recovery's visible loss in momentum, more people are coming to appreciate the importance of structural issues. Indeed, some elements of the package are visible. Yet, to my dismay, the prospects for a sufficiently bold policy reaction are doubtful. Post-financial crisis, it is no longer just about the 'unusually uncertain' economic outlook and related challenges for a policy approach that remains too reactive and ad hoc. The politics of structural change are now a material impediment."
Domestic security interlude: A Canadian al-Qaeda suspect's American Idol tryout tape.
Energy

Obama's top environmental advisors were not part of the final decision to expand offshore drilling, report Juliet Eilperin and Mary Pat Flaherty: "Speaking before the presidential oil spill commission, Jane Lubchenco, the National Oceanic and Atmospheric Administration's administrator, and Nancy Sutley, chair of the Council on Environmental Quality, said that while they did offer comments about the proposal, the key decisions were made by the president and Interior Secretary Ken Salazar, who oversees U.S. oil and gas policy under federal law."
A new report says recent safety standards are adequate for ensuring the safety of offshore drilling: http://bit.ly/cMBbYm
Community colleges are ramping up training for green jobs, reports Elizabeth Olson: "Some community colleges already are offering two-year degrees in environmental management and certificates for managers who want to add green qualifications -- which means learning more about the environmental aspects of a particular field -- to their résumés. These colleges are offering some courses and training on campus as well as online. Lane Community College, in Eugene, Ore., for example, is offering two-year programs -- for associate degrees in applied sciences -- in energy management, renewable energy or water conservation."
The tourism industry in Florida is trying to secure oil spill compensation: http://bit.ly/bsI8T4
The DOD is opposing wind turbine programs, reports Leora Broydo Vestel: "Moving turbine blades can be indistinguishable from airplanes on many radar systems, and they can even cause blackout zones in which planes disappear from radar entirely. Clusters of wind turbines, which can reach as high as 400 feet, look very similar to storm activity on weather radar, making it harder for air traffic controllers to give accurate weather information to pilots...Because of its concerns, the Defense Department has emerged as a formidable opponent of wind projects in direct conflict with another branch of the federal government, the Energy Department, which is spending billions of dollars on wind projects as part of President Obama’s broader effort to promote renewable energy."
Investigators grilled BP executives on the company's safety record: http://nyti.ms/cNEtFa
Geek culture mashup interlude: Neo from The Matrix as Scott Pilgrim.
Domestic Policy

A half decade after Katrina, things are looking up for New Orleans schools, writes Sarah Laskow: "In 2005 Orleans Parish was the second-worst-performing school district in the state, and in some schools 30 percent of seniors dropped out over the course of the year...In New Orleans today, students and educators have unprecedented leeway to mold educational experiences. Students can apply to and, if accepted, choose to attend any of the city’s 46 charter schools or 23 'traditional' schools. The vast majority of schools have open-enrollment policies that allow any student to attend, regardless of past academic success. (Schools with more applicants than spots hold lotteries.)"
Immigration reform advocates expect Scott Brown and Lindsey Graham to back future efforts: http://politi.co/aFrktz
Concern over its effect on business is deterring states from copying Arizona's immigration law, reports Elise Foley: "Florida legislators are using concerns about tourism to push back against an anti-immigration bill proposed for the next legislative session. The bill, proposed by defeated Republican gubernatorial hopeful Bill McCollum and some state representatives, promised to be 'tougher' than the Arizona law...In Utah, where Republican Rep. Stephen Sandstrom introduced legislation like Arizona’s, opposing lawmakers have argued the bill would cost Utah millions of dollars in detention costs, increased enforcement measures and potential lawsuits."
Harold Pollack makes the case for expediting health care reform implementation: http://bit.ly/adkypw
As a cost-cutting measure, states are attempting to have employees pay more for health care, reports Jeannette Neumann: "The states' moves to get workers to pay more for health coverage also comes amid a growing awareness of the gap in benefit contributions between public and private employees. A handful of states have made changes this year, including Kentucky, Connecticut and Texas, and they join a growing number of governments that have cut health benefits in recent years without major challenges. But in Michigan, the trend has met firm resistance."
Bush HHS secretary Michael Leavitt argues health care reform has weakened Medicare's finances: http://bit.ly/amA0pC