MarketWatch.com - Pre-Market Indications

Monday, April 14, 2008

- Trader Talk with Bob Pisani - CNBC.com

On Friday, General Electric

General Electric Co
GE

32.05 UNCH 0%
NYSE




[GE 32.05 --- UNCH (0%) ] surprised, now it's Wachovia Bank's [WB 27.81 --- UNCH (0%) ] turn. They missed by a mile: a loss of $0.14 from continuing operations, consensus was a gain of $0.40. They are cutting their dividend 41 percent and seeking to raise $7 b in capital, so the poor earnings will be diluted even more.

Our David Faber reporting the sale will involve 3.5 b in common stock at $24 a share, and 3.5 b in convertible with a 7.5 percent coupon. Wachovia was trading in that range earlier, but is now higher at $25.70, still below the $27.81 it closed at on Friday.

To a certain extent, we have heard this before: an increase in the loan loss provisions ($2.1 b in new provisions), largely due to losses in residential real estate (again, California and Florida are the main culprits), along with more losses on mortgage backed securities and their derivatives. Credit quality continued to deteriorate by an measure, particularly non-performing assets, which increased 54 percent from the prior quarter, according to RBC Capital.

On the other hand, we thought we were facing the worst last quarter; that's obviously not the case, and this is part of the continuing adjustment of expectations. Now the increase in provisions for loan losses is a signal that banks are expecting more losses.

Small declines (1 to 2 percent) in other banks, like Bank of America

Bank of America Corp
BAC

36.94 UNCH 0%
NYSE




[BAC 36.94 --- UNCH (0%) ]and Citigroup [C 23.36 --- UNCH (0%) ].

Elsewhere:

1) Despite statements of support from the G7 over the weekend, the dollar is considerably weaker this morning. I will be speaking with French Finance Minister Christine Lagarde on our air shortly after the 9:30 AM open.

Despite the dollar weakness, commodities are weaker as well.

2) Blockbuster

Blockbuster Inc
BBI

3.13 UNCH 0%
NYSE




[BBI 3.13 --- UNCH (0%) ] making a bid for Circuit City [CC 3.9 --- UNCH (0%) ] for at least $6 a share, they claim in cash; Blockbuster down 12 percent, Circuit City up over 25 percent to $6.16 on heavy volume. They may also turn to Carl Icahn for an additional equity infusion, Blockbuster's CEO says.

3) While we're young: Delta

Delta Air Lines Inc
DAL

10.01 UNCH 0%
NYSE




[DAL 10.01 --- UNCH (0%) ] and Northwest [NWA 10.96 --- UNCH (0%) ] might unveil details of their (endless) merger discussions--and possibly a deal--by Tuesday, according to the Journal. Delta and Northwest both up about 5 percent on light volume.

4) Deutsche Bank

Deutsche Bank AG
DB

115.32 UNCH 0%
NYSE




[DB 115.32 --- UNCH (0%) ] may be seeking to sell $20 b of leveraged buyout debt, similar to what Citigroup was reported seeking to do last week.



Wachovia's Loss: Signal Of More To Come From Banks? - Trader Talk with Bob Pisani - CNBC.com

Pre Market Trading Indications

Following Friday's large declines, futures indicate a modestly lower open for the mkt following a number of negative headlines from the financial sector. Shares of Wachovia (WB) are indicated 8% lower pre-mkt after the co reported Q1 results this morning, earlier than expected, showing a loss of $0.14 vs. the $0.40 First Call consensus. It announced plans to raise capital through a public offering of common stock and perpetual convertible preferred stock, and also lowered its quarterly dividend to $0.375. Separately, WSJ reported that Deutsche Bank (DB) is seeking to sell as much as $20 bln of debt related to leveraged buyouts to a collection of investors that include private-equity firms, while Swiss media reported over the weekend that Credit Suisse (CS) could announce further write-downs of up to 5 bln Swiss francs ($4.99 bln) when it posts Q1 results later this month. But futures modestly bounced off their lows following better than expected Retail Sales data for March. Sales rose 0.2% (consensus 0.0%), while the reading from Feb was revised higher to -0.4% from -0.6%. Sales ex-autos came in at 0.1%, in line with expectations, while the prior month was revised to -0.1% from -0.2%. Dow futures are currently -26; Nasdaq futures are currently -3.4; S&P futures are currently -6.3.

Commodities, May crude oil is trading up 68 cents to $110.82...

In Europe, mkts fell after Wall Street's major averages each lost more than 2% on Friday on concerns over falling corporate earnings. FTSE is currently -0.9%; DAX is currently -0.9%; CAC is currently -0.3%.

In Asia, mkts closed sharply lower after Wall Street tumbled late last week on concerns over a slowdown in the U.S. economy and the outlook for corporate profits. Nikkei closed -3.1%; Hang Seng closed -3.5%; Shanghai Composite closed -5.6%...

Notable pre-market Calls include Downgrades: GE at Bear Stearns and Oppenheimer; Initiations: V (Outperform) at Keefe Bruyette... On the

Earnings calendar
: ELS, INFY and STLY are the only cos confirmed to report today after the close... On the

Economic calendar
, Feb Business Inventories (consensus 0.6%; prior 0.8%) are due out at 10:00ET.

Gapping up in reaction to strong earnings/guidance
: ANTP +32.5%, ETN +5.8%, GWW +4.4%, ALO +1.0%, FII +1.0%...

M&A news
: CC +55.1% (BBI proposes to acquire Circuit City for at least $6.00/share in cash), CLAY +22.4% (to be acquired by Greenfield Partners for $6.00/share in cash)...

Other news
: AGIX +41.7% (announces "encouraging interim results" from Phase 3 clinical trial of AGI-1067 in type 2 diabetes), AAI +26.6% (updates financial information in response to Friday's market activity; also upgraded to Add at Calyon), INGN +12.1% (announces that ADVEXIN Ph. III clinical trial data in patients with recurrent head and neck cancer confirm earlier Ph. II results of ADVEXIN efficacy), NTRI +7.5% (will replace FRNT in the S&P SmallCap 600 after the close on 4/15), NWA +5.8% and DAL +5.4% (aims to unveil NWA merger pact), TSL +2.6% (discontinues development of polysilicon production facility), AMR +2.0% (rebounding modestly; announced plan to be back to a full, normal schedule on Sunday), PTEC +1.9% (says profit to grow 'immediately'; purchase will boost profit, to raise forecast April 22- Bloomberg), CETV +1.5% (Cramer makes positive comments on MadMoney), VLO +1.3% (mentioned positively in Barron's), PRGO +1.2% (announces approval for over-the-counter children's Cetirizine oral solution), REP +1.1% (CNPC interested in Repsol assets - South Morning China Post)...

Analyst upgrades
: PETM +1.5% (upgraded to Buy at BofA), EV +1.2% (upgraded to Neutral at JPMorgan).

NYSE Arca Morning Update

NYSE Arca Morning Update for Monday, Apr 14, 2008 :


Stocks trading on NYSE Arca at a price more than 15% away from the previous trade day's consolidated close price. (As of 08:30:00 ET)

Stock
Friday's Close Current Price Pct Chng Current NYSE Arca Vol
CC

$3.92

$6.03

54%

685,967

INGN

$3.23

$4.64

44%

700

AAI

$4.18

$5.27

26%

27,730

BBI

$3.14

$2.67

( 15%)

69,318

10 Most Active stocks on NYSE Arca as of 08:30:00 ET

Based on Dollar Volume: Based on Share Volume:
Stock
Dollar Volume
SPY
$190,208,452
WB
$87,437,552
QQQQ
$13,430,356
GE
$5,286,564
SAP
$5,131,032
AAPL
$4,689,998
CC
$4,145,757
GLD
$2,934,748
QID
$2,339,903
TSL
$2,303,067
Stock
Share Volume
WB
3,529,013
SPY
1,432,684
CC
685,967
QQQQ
305,192
GE
164,391
SAP
100,200
XLF
86,530
BBI
69,318
TSL
59,378
QID
47,821


NYSE Arca Morning Update

Pre Markets Trading, Gaps

Gapping up:

CC +53.8%, AAI +29.5%, ANTP +25.2%, NTRI +6.7%, TSL +3.2%, PTEC +1.9%, CETV +1.5%, DAL +1.4%, CNQ +1.2%...

Gapping down:

WB -10.8%, CYMI -4.9%, SMG -4.7%, C -2.2%, CS -2.0%, WFC -1.6%, BAC -1.2%.

Pre-Market Most Active Stocks - NASDAQ Premarket


NASDAQ - Pre-Market Ten Most Advanced

Active Share Volume Declined

Symbol

Company Name

Market
Close
Last Sale (Pre-Market) % Change
(Pre-Market)
Share
Volume

(Pre-Market)

NutriSystem Inc
$18.21 $19.50 7.08% 11,021

Capstone Turbine Corporation
$2.71 $2.80 3.32% 9,050

ASML Holding N.V.
$23.98 $24.08 0.42% 31,000

Sirius Satellite Radio Inc.
$2.48 $2.49 0.40% 16,342

eBay Inc.
$30.87 $30.94 0.23% 12,250

As of 4/14/2008 8:14:29 AM

NASDAQ - Pre-Market Ten Most Declined

Active Share Volume Advanced

Symbol

Company Name

Market
Close
Last Sale (Pre-Market) % Change
(Pre-Market)
Share
Volume

(Pre-Market)

Cymer, Inc.
$25.63 $23.99 6.40% 18,473

E*TRADE Financial Corporation
$3.75 $3.62 3.47% 16,470

Applied Materials, Inc.
$19.11 $18.76 1.83% 12,160

Atmel Corporation
$3.31 $3.25 1.81% 15,000

Qiagen N.V.
$20.93 $20.57 1.72% 5,700

Research in Motion Limited
$115.85 $114.75 0.95% 10,694

Apple Inc.
$147.14 $145.80 0.91% 44,827

PowerShares QQQ Trust, Series 1
$44.28 $43.99 0.65% 502,878

Yahoo! Inc.
$28.34 $28.25 0.32% 4,163

Acergy S.A.
$24.20 $24.13 0.29% 4,310

As of 4/14/2008 8:14:44 AM



Pre-Market Most Active Stocks - NASDAQ Premarket

Pre Market Movers - Futures Trading - Nasdaq - NYSE

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