Jun 17, 2008

Tuesday, June 17, 2008

Pre Market - Trader Talk with Bob Pisani - CNBC.com

Goldman Sachs,

GOLDMAN SACHS GROUP INC

182.09 UNCH 0%

NYSE

Quote | Chart | News | Profile

[GS 182.09 --- UNCH (0%)

] as is their custom, beat by a wide margin, $4.58 vs. expectations of $3.42. While numbers were lower for many units compared to the second quarter of last year, there was a clear improvement from the last quarter. For example, Investment Banking was 2 percent lower than the second quarter of 2007, but 44 percent higher than the first quarter of 2008.

Trading and Principal Investments were 16 percent lower than the second quarter of 2007, but 9 percent higher than the first quarter of 2008. Asset Management and Security Services bucked the trend: 18 percent higher than the second quarter of 2007, and 5 percent higher than first quarter of 2008.

Goldman closed yesterday at $182.09, traded about $184 prior to its earnings release, and is now trading at $185.68.

Good report from Best Buy

BEST BUY CO INC

BBY

45.88 UNCH 0%

NYSE

Quote | Chart | News | Profile

[BBY 45.88 --- UNCH (0%)

]. They beat earnings expectations, and affirmed full year earnings of $3.25-$3.40 (expectations of $3.26). They had a very healthy comparable store gain of 3.7 percent, due to an increase in the average selling price because the mix had changed toward higher ticket items like flat-panel TVs, video gaming consoles, notebook computers, and GPs devices. Up 1 percent.

Potentially important report on Alzheimers. Wyeth

WYETH

WYE

43.08 UNCH 0%

NYSE

Quote | Chart | News | Profile

[WYE 43.08 --- UNCH (0%) ] and Elan[ELN 27.11 --- UNCH (0%) ] trading up about 5 percent as a study of an experimental Alzheimer's drug they are testing show it is effective with some patients.

Interesting commentary from the International Council of Shopping Centers. They put out regularly weekly data, of course, but they noted a special consumer tracking survey taken a few days ago. According to the survey, 19% of households reported spending most of the tax rebate already.

The ICSC also reported the latest results from their monthly consumer gasoline price impact survey which showed that discretionary spending on such items as clothing, shoes, jewelry, consumer electronics, restaurants, spa and beauty services, or other non essential purchases, were being pared by a record 69% of households, with 42% reporting a considerable reduction and 27% reporting a modest reduction in spending.

Goldman, Best Buy Beat And Where Tax Rebates Have Gone - Trader Talk with Bob Pisani - CNBC.com

Pre Market Trading Gap Indications

Gapping Down

In reaction to strong earnings/guidance: CSIQ +7.6%, SYUT +4.9% (light volume), CX +3.0%, CFX +2.4%, GS +2.0%, BBY +1.0%…

Select mining stocks showing strength: RTP +2.5% (Chinalco may be keen to raise its stake in Rio Tinto - Sky News Online), BHP +1.8%, MT +1.8%, LMC +1.7%…

Select financial stocks showing strength boosted by better than expected GS earnings results: UBS +4.0%, MER +2.5%, LEH +2.4%, C +2.2%, ING +2.1%, BAC +1.7%, HBC +1.0%…

Other news: EFUT +6.9% (signs contracts to provide logistics resource management solution to WuShang), ELN +4.0% (Elan and Wyeth announce top-line results from Ph. II clinical trial of bapineuzumab for Alzheimer’s), ALU +4.0% (Alcatel-Lucent and China Mobile signed a $1 bln framework agreement covering cooperation on mobile network upgrades and expansions in 2008), IFX +3.9% (shares up in Europe on Hynix deal, Samsung forecast - DJ), ERIC +2.4% (Sony Ericsson sees strong global demand for handsets - Reuters), WYE +2.4% (Elan and Wyeth announce top-line results from Ph. II clinical trial of bapineuzumab for Alzheimer’s), TEVA +2.3% (still checking), SQM +2.2% (Cramer makes positive comments on MadMoney), NMX +1.9% (reports May 2008 volume averaged 1.902 mln contracts per day), INSP +1.6% (Board renews authorization of stock repurchase program of up to $100 mln), URI +1.3% (commences modified Dutch Auction tender offer to purchase up to 27.16 mln of its shares at a price not less than $22 nor greater than $25 per share)…

Analyst upgrades: BCS +5.3% (upgraded overnight in Europe to Hold at Dresdner Kleinwort), JBLU +4.1% (upgraded to Equal Weight at Morgan Stanley), CME +3.5% (upgraded to Buy at Citigroup), RBS +3.2% (upgraded overnight in Europe to Add at Dresdner Kleinwort), DHT +2.7% (upgraded to Neutral at JPMorgan), HOV +1.9% (upgraded to Neutral at UBS).

Gapping Up

In reaction to disappointing earnings/guidance: INFN -29.3%, LZB -10.3%, ADBE -2.3%, TGAL -2.3% …

M&A news: CDNS -3.8% (proposes to acquire Mentor Graphics for $16.00 per share in cash)…

Other news: CCH -5.8% (Bloomberg.com reports four brokerages including Merrill Lynch and Marfin Securities SA cut their price estimates for bottler after the co lowered its annual sales volume and profit forecasts), MHO -4.6% (still checking), ROH -4.6% (announces set of actions to restore profitability; will impact approx 925 positions expecting to result in estimated $0.35/share charge for Q2), LMNX -4.1% (announces public offering of common stock of 3.5 mln shares)…

Analyst downgrades: CCC -5.7% (downgraded to Sell at Morgan Joseph), ACAD -2.3% (downgraded to Market Perform at FBR, downgraded to Hold at Jefferies and downgraded to Sell At BofA), CNK -1.5% (downgraded to Equal Weight at Morgan Stanley), STRA -1.4% (downgraded to Hold from Buy at Stifel Nicolaus).

Opening View: Goldman Sachs, Adobe Systems, and Best Buy Report Earnings

In earnings news, Adobe Systems (ADBE: sentiment, chart, options) said that second-quarter profit rose to $214.9 million, or 40 cents per share, from $152.5 million, or 25 cents per share, last year. Excluding items, earnings arrived at 50 cents per share, above analyst expectations for 46 cents. Revenue rose to $886.9 million, also topping expectations for $880.1 million. For the third quarter, ADBE said it expects earnings of 45 cent to 47 cents per share on a non-GAAP basis, well above current expectations for 39 cents per share. The company also noted that third-quarter operating margins would arrive at about 38.5% on a non-GAAP basis.

In financials, Goldman Sachs (GS: sentiment, chart, options) reported a second-quarter profit of $2.09 billion, or $4.58 per share, blowing past the Street's estimate for a profit of $3.42 per share. Revenue for the quarter came in at $9.42 billion, well ahead of the consensus view of $8.74 billion. "Given the difficult market conditions, we are particularly pleased to be able to report strong results for the second quarter," said Lloyd Blankfein, the company's chairman and CEO. "We continue to benefit from our strong client franchise, a broad and diverse set of businesses and the deep commitment and experience of our people."

Best Buy (BBY: sentiment, chart, options) reported first-quarter earnings of $179 million, or 43 cents per share, up from last year's 39 cents per share. Revenue rose 13% to $8.99 billion from $7.93 billion last year. The company also affirmed its fiscal 2009 earnings outlook of $3.25 to $3.40 per share, with revenue of $43 billion to $44 billion.

In other news, Kraft Foods (KFT: sentiment, chart, options) announced that it plans to spin off outstanding shares of Cable Holdco. The split is related to the merger of Cable Holdco and Ralcorp Mailman, a subsidiary of Ralcorp Holdings. As part of the deal, Kraft shareholders will have the option to exchange some or all of their Kraft common stock in exchange for Cable Holdco common stock, which will then be exchanged for shares of Ralcorp common stock after the pending merger. The terms of the exchange will be announced at a later date.

Finally, PepsiCo (PEP: sentiment, chart, options) reiterated its fiscal 2008 earnings outlook of at least $3.72 per share and said it expects disruptions during the next few weeks at its Quaker manufacturing facility in Cedar Rapids, Iowa, due to flooding. "While the situation assessment is ongoing, PepsiCo expects disruptions to normal service over the next few weeks, including product allocation to the retail trade of some Quaker foods and snacks items."

Opening View: Goldman Sachs, Adobe Systems, and Best Buy Report Earnings

NYSE Arca Morning Update

Stock	Monday's Close	Current Price	Pct Chng	Current NYSE Arca Vol
INFN	$13.79	$9.85	( 29%)	54,696

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	$297,840,171
GS	$73,511,402
QQQQ	$41,874,737
ELN	$24,342,639
IWM	$24,302,258
USO	$16,782,011
WYE	$12,647,524
XLF	$10,253,186
AAPL	$7,651,613
BBY	$6,336,251

Stock	Share Volume
SPY	2,172,862
QQQQ	855,102
ELN	843,307
XLF	429,300
GS	396,121
IWM	327,172
WYE	280,094
USO	155,796
BBY	136,424
NOK	108,850

INFN:

UPDATE - Infinera cuts 2008 revenue growth outlook: shares fallat Reuters(Mon 6:04pm)
Outlook roundup: Infinera, General ElectricAP(Mon 5:32pm)

NYSE Arca Morning Update

Pre Market trading; Gaps

Gapping up:

GOLD +5.6%, BCS +5.3%, SYUT +4.9%, UBS +4.0%, ELN +4.0%, ALU +4.0%, TGAL +3.7%, CME +3.2%, CX +3.0%, ERIC +2.4%, TEVA +2.3%, SQM +2.2%, BHP +1.8%, INSP +1.6%...

Gapping down:

INFN -25.6%, LZB -13.3%, GPRO -9.8%, MHO -4.6%, ADBE -2.3%, SOL -1.6%