Pre Market Trading Indications

Following yesterday's afternoon sell-off, futures indicate a modestly lower open for the mkt as the technology sector is under pressure this morning. Yesterday after the close, Advanced Micro (AMD) announced it expects Q1 revs to be ~$1.50 bln vs. the $1.62 bln First Call consensus, citing lower than expected sales across all business segments. Then overnight, Novellus (NVLS) issued mixed Q1 guidance, expecting EPS of $0.15-0.17 vs. the $0.23 FC consensus, with revs of $315-325 mln vs. the $318.48 mln FC consensus. But the in line rev guidance was also at the low end of the previous guidance range. Shares of NVLS are indicated 5% lower pre-mkt. Finally, Dutch digital navigation device maker TomTom lowered its 2008 rev outlook after cutting prices for its personal navigation devices during Q1. Shares of peer Garmin (GRMN) are indicated 5% lower pre-mkt following the TomTom news and a downgrade of its own shares to Hold from Buy at Soleil. Dow futures are currently -44; Nasdaq futures are currently -11.0; S&P futures are currently -5.2.


Gapping down in reaction to weak earnings/guidance: CBBO -7.4%, SCUR -7.1%, NVLS -4.6%, LDK -2.5% (also announces proposed offering of us$300 million senior convertible notes), AMD -2.2%, AUO -2.1%, AA -1.9%, MNTG -1.4%...

Select financial names showing weakness: BCS -3.8%, LYG -3.4%, CIT -3.3%, STD -1.8%, HBC -1.1%, DB -1.0%...

Other news: GRO -46.1% (announces resignation of COO and retracts prior guidance), FMD -31.8% (makes statement on TERI's petition for reorganization under Chapter 11; says is analyzing the implications of this filing), REXX -8.1% (files S-1 relating to 8 mln share offering by co selling 4 mln shares of common stock and the selling stockholders are selling 4 mln shares of common stock), MWE -5.6% (announces public offering of 5 mln common units at $32.44/unit), ASML -5.6% (down in sympathy with AMD), WM -5.3% (finalizing capital injection plan and downgraded to Underperform at Keefe Bruyette), SIRF -5.0% (discloses CFO resignation), ENDP -3.0% (announced that it has notified the FDA of the withdrawal of the sNDA without prejudice for FROVA), DEPO -2.0% (settles patent litigation against IVAX and as stated that it intends to return the rights to Chronogesic licensed from DURECT), RTP -1.7% and BHP -1.5% (Rio Tinto can go it alone, CEO says - Globe and Mail)...

Analyst downgrades: IFX -6.5% (downgraded to Neutral at Credit Suisse), GRMN -5.1% (downgraded to Hold at Soleil), MI -4.2% (downgraded to Sell at tier 1 firm), JBL -4.0% (Hearing downgraded to Neutral from Buy at tier 1 firm), FLS -3.9% (downgraded to Neutral at Baird), AZN -2.9% (downgraded to Neutral at tier 1 firm), NITE -2.4% (hearing downgraded to Neutral at tier 1 firm), CNK -2.2% (downgraded to Neutral at JPMorgan), WFC -1.8% (hearing downgraded to Neutral at tier 1 firm), WIBC -1.4% (initiated with Sell at Stern Agee), AAPL -1.2% (downgraded to Underperform at Morgan Keegan).

Gapping up in reaction to strong earnings/guidance: NTRI +16.5%, NUAN +3.1%, VRSN +2.0% (also Brian Robins named acting CEO), CHTT +1.8%, CHINA +1.4%...

Other news: RGEN +22.7% (announces settlement with Bristol-Myers Squibb in Orencia lawsuit), AGEN +22.3% (announces that the Russian Ministry of Public Health has issued a registration certificate for the use of Oncophage in the treatment of kidney cancer patients at intermediate risk for disease recurrence), VRNM +4.9% (announces commencement of start-up phase at its demonstration-scale cellulosic ethanol plant), ANSV +4.1% (announces that a pivotal Phase 3 clinical trial evaluating Adlea is underway), ATAC +3.5% (will replace MESA in the S&P SmallCap 600 after the close on 4/9), ISIS +3.0% (Bristol-Myers Squibb selects ISIS drug targeting PCSK9 as development candidate for prevention and treatment of cardiovascular disease), TIN +3.0% (Cramer makes positive comments on MadMoney), PXD +2.8% (raises long-term production growth target to 14+% and increases net resource potential by 1.1 bln barrels oil equivalent), FMX +2.2% (Cramer makes positive comments on MadMoney), INSU +1.9% (completes review of strategic options; determines to execute business plan and hire new CEO), ELN +1.9% (still checking), CRXL +1.8% (announces a non-exclusive STAR research license agreement with Celltrion for the production of recombinant proteins), ITG +1.5% (says March 2008 US trading volume was 4.6 billion shares), UN +1.1% (still checking)...

Analyst upgrades: FNM +2.8% (upgraded to Overweight at Lehman), PSUN +2.7% (upgraded to Outperform at Wachovia), FRE +2.6% (upgraded to Overweight at Lehman), IVAC +2.1% (upgraded to Buy at Brean Murray), NYX +1.6% (upgraded to Buy at tier 1 firm), AXP +1.6% (upgraded to Buy at tier 1 firm), NVS +1.3% (upgraded to Neutral at HSBC).