excellent interview on chem trails explaining the particulate matter in the atmosphere we are inhaling.
Thursday, May 29, 2008
Trader Talk: Morgan Stanley Says Business Travel Suffering - Trader Talk with Bob Pisani - CNBC.com
Dollar stronger again; bond rout continues. Stock futures dropped a bit as GDP revision came in in-line, up 0.9 percent from 0.6 previously.
Morgan Stanley out with a long note on business travel this morning, not surprisingly with the title, "Business Travel Fundamentals Worsening." A summary:
1) room rate renegotiations, which first surfaced with financial business travelers, is now spreading to other sectors;
2) group cancellation rates are increasing.
3) rising airfares, already impacting leisure travel, will impact corporate travel this year.
They cut their ratings on Marriott [MAR 34.14 --- UNCH (0%) 
] , and reduce the price target to $40 from $47. Marriott closed at $34.14. They go further: "...we do not recommend putting new money into lodging with the exception of stocks with unique catalysts."
Elsewhere:
1) We have been getting retail earnings reports for the past week, with mixed results.
a) Men's Wearhouse [MW 23.62 --- UNCH (0%) ] reported earnings a bit below expectations, and guidance for the quarter and full year appears a bit below expectations as well. Down 6 percent pre-open.
b) Big Lots [BIG 28.53 --- UNCH (0%) ] and Costco [COST 73.24 --- UNCH (0%) ] beat expectations; Big Lots up 8 percent pre-open as they raise their full year guidance slightly. Costco reported good comp store sales growth--U.S. up 6 percent, international up 16 percent.
2) NYSE IPO: Safe Bulkers (SB), a marine drybulk shipping company, priced 10 million shares at $19, below the expected range of $20 to $22 a share.
3) German chip maker Infineon [IFX 9.96 --- UNCH (0%) ] down about 12 percent pre-open, after they lowered their outlook for their communications unit.
Bob Pisani's Trader Talk: Morgan Stanley Says Business Travel Suffering - Trader Talk with Bob Pisani - CNBC.com
Pre Market Trading Indications
Gapping up in reaction to strong earnings/guidance: NZ +10.6% (light volume), JAS +8.7%, BIG +7.6%, JOYG +4.7%, FRED +4.5%, ULBI +4.1% (light volume), HNZ +4.1%, GCO +3.7%, CWTR +2.7%, ESEA +2.1%, APSG +1.3%...
M&A news: KOSN +218.2% (to be acquired by BMY for $5.50/share)...
Other news: POWR +6.7% (awarded $30 mln of new business), IVAN +6.6% (to acquire oil sands assets from Talisman Energy), LCC +4.2% (US Airways, UAL CEOs to meet to discuss merger Thursday - WSJ), BUCY +2.9% (up in sympathy with JOYG), TRN +2.5% (Cramer makes positive comments on MadMoney), HIMX +2.4% (continued strength following yesterday's 15%+surge higher), OTTR +1.8% (Cramer makes positive comments on MadMoney), UAUA +1.8% (US Airways, UAL CEOs to meet to discuss merger Thursday - WSJ), OC +1.5% (Cramer makes positive comments on MadMoney)...
Analyst upgrades: EXPE +2.6% (upgraded to Buy at Stifel Nicolaus), MFA +1.7% (upgraded to Outperform at Keefe Bruyette), NSC +1.1% (upgraded to Buy at Merrill), HK +1.0% (initiated with a Buy at Stifel Nicolaus).
Gapping down in reaction to disappointing earnings/guidance: DCP -17.4%, IFX -13.1% (also downgraded to Sell at Oppenheimer), KMGB -11.8%, NM -8.8%, JST -8.8%, MW -6.9%, LONG -6.0%, AINV -4.7%, MRCY -1.6% (light volume)...
Select metals/mining stocks showing weakness with lower spot prices and strength in the dollar: SLV -3.9%, AU -3.4%, GLD -2.6%, AEM -2.5%, AUY -2.5%, GFI -2.2%, HMY -2.1%, BHP -1.9%, RTP -1.4%...
Select solar names showing modest weakness with Merrill downgrading ESLR and SPWR to Sell: ESLR -6.3% and SPWR -4.1% (downgraded to Sell at Merrill), JASO -3.7%, STP -3.5%, TSL -3.3%, FSLR -3.1%, SOL -3.0%, CSIQ -2.4%, YGE -2.4%...
Other news: ACEL -55.9% (preliminary results from ONCONASE Phase IIIb clinical trial; did not meet statistical significance for the primary endpoint), RBS -17.0% (Ping An says it did not submit bid for RBS insurance unit, leaves 5 candidates - Bloomberg), FTE -8.2% (approaches banks for 10 bln euros loan for unspecified acquisition - Reuters), ARD -4.8% (announces public offering of 2,175,000 shares of common stock), TTM -4.7% (approved raising about 72 bln rupees, or about $1.7 bln, through three separate rights issues - WSJ), CYTK -4.1% (announces that an abstract summarizing data from its Phase I/II clinical trial evaluating its drug candidate SB-743921 is planned to be presented at the 10th International Conference on Malignant Lymphoma), ALU -3.9% (still checking), ADM -2.3% (prices equity units offering of up to $2.0 bln and will issue 35.0 mln equity units with a stated amount of $50 per unit), WR -2.1% (announces public offering of its common stock of 6 mln shares), NOK -1.3% (cut its forecast for profit and sales from communications chips because of fewer-than-anticipated orders and a delayed Nokia)...
Analyst downgrades: CHS -4.4% (downgraded to Sell from Hold at Citigroup), JEF -4.4% (downgraded to Sell at Merrill), SNDA -4.2% (downgraded to Hold at Citigroup), NFLX -2.4% (downgraded to Market Weight at Weisel), SGMO -1.9% (initiated with a Sell at Brean Murray), JNPR -1.8% (downgraded to Neutral at UBS), MIL -1.2% (downgraded to Neutral at Merrill).
Gapping up: JAS +8.7%, DBRN +7.1%, LCC +4.9%, CWTR +2.7%, TRN +2.2%, OTTR +1.8%, OC +1.5%, YHOO +1.3%, UAUA +1.1%... Gapping down: ACEL -60.6%, RBS -14.6%, MW -6.9%, AINV -6.4%, ESLR -6.0%, SHLD -4.9%, JST -3.4%, DCP -3.3%, STP -3.1%, WR -2.1%, RTP -1.9%, BHP -1.6%.
NYSE Arca Morning Update
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 | Wednesday's Close | Current Price | Pct Chng | Current NYSE Arca Vol |
|---|---|---|---|---|
RBS | $5.47 | $4.56 | ( 17%) | 178,261 |
10 Most Active stocks on NYSE Arca as of 08:30:00 ET
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NYSE Arca Morning Update
Opening View
U.S. stock futures are trading mildly lower heading into the open, indicative of a potentially negative start to the regular session. In overseas trading, Asian markets took a cue from Wall Street, reversing yesterday's losses, while European markets were lifted by mining issue Rio Tinto. In focus this morning are a retail earnings trifecta – featuring Sears Holdings, Big Lots, and Costco Wholesale – and General Motors' plans to cut costs.
Taking the earnings spotlight this morning was Sears Holdings (SHLD: 
sentiment, chart, options) . The retailer reported a first-quarter net loss of $56 million, or 43 cents per share, compared to net income of $223 million, or $1.45 per share, a year earlier. Excluding items, earnings docked at a loss of 53 cents per share; analysts, on average, were calling for a profit of 21 cents per share. Meanwhile, revenue fizzled 5.7% to $11.07 billion in the latest quarter, with comparable-store sales dropping 8.6%.
Big Lots (BIG: sentiment, chart, options) also stepped into the earnings confessional, reporting first-quarter net income spiked 20% higher to $34.5 million, or 42 cents per share, exceeding the Street's per-share estimate of 36 cents. The company also upped its fiscal-year guidance to $1.80 to $1.90 per share; analysts, on average, expect fiscal-year earnings of $1.79 per share.
Rounding out the big retail trifecta, Costco Wholesale (COST: sentiment, chart, options) reported third-quarter net income jumped 32%, with total sales rising 13% and same-store sales jumping 8%. More specifically, quarterly earnings came in at $295.1 million, or 67 cents per share, while revenue reached $16.26 billion. The Street forecast earnings of 65 cents per share on revenue of $16.32 billion.
In other news, The Wall Street Journal reported that General Motors (GM: sentiment, chart, options) plans to cut more costs in the wake of shrinking truck sales. GM's Chief Executive Rick Wagoner is allegedly slated to disclose details regarding the planned cuts at the company's annual meeting June 3.
Opening View: Sears Holdings, Big Lots, and Costco Take Earnings Spotlight
Pre-Market Most Active Stocks - NASDAQ Premarket
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Pre-Market Most Active Stocks - NASDAQ Premarket
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