MarketWatch.com - Pre-Market Indications

Wednesday, July 2, 2008

Trader Talk with Bob Pisani - CNBC.com

The market remains oversold and traders remain extremely bearish. Example: the Investors Intelligence survey of financial newsletter writers continues to drop, with Bulls down to 31.9 percent (vs. 33.7 last week) and the Bears at 44.7 bears (vs. 39.3 percent last week), the lowest readings since the market bottom in March.

The most important news this morning comes from Europe: Deutsche Bank

DEUTSCHE BK A G
DB

83.60 UNCH 0
NYSE




[DB 83.60 --- UNCH (0) ]is up 5 percent pre-open after staring they would make a profit in the second quarter and would not require more capital. Yesterday UBS also said it would not require more capital.

Also overseas, please note that the Nikkei is down 10 days in a row.

Elsewhere:

1) UnitedHealth Group

UNITEDHEALTH GROUP INC
UNH

25.63 UNCH 0
NYSE




[UNH 25.63 --- UNCH (0) ]again cut its earnings forecast, but they are up 5 percent as the stocks have already reflected the prior forecast cuts from them and other HMOs. The problem: the amounts they are charging are not in line with the costs they are incurring (margin squeeze).

2) Blockbuster

BLOCKBUSTER INC
BBI

2.51 UNCH 0
NYSE




[BBI 2.51 --- UNCH (0) ]has withdrawn its bid for Circuit City[CC 2.55 --- UNCH (0) ], citing market conditions. Circuit City said its "announced exploration of strategic alternatives to enhance shareholder value is an active and ongoing process."

3) I mentioned yesterday that the hot IPO of the week was over at the NASDAQ--Energy Recovery (ERII) makes energy recovery devices for water desalination plants. It priced 14 m shares at $8.50 a share, toward the high end of the $7 to $9 estimated range.

Upgrades/downgrades:

--Meredith Whitney at Oppenheimer reduced estimates for Merrill Lynch

MERRILL LYNCH & CO INC
MER

32.25 UNCH 0
NYSE




[MER 32.25 --- UNCH (0) ] (from a gain of $0.20 to a loss of $4.21!), saying they will likely do some form of capital raising in conjunction with the second quarter earnings release.

--Bernstein upgraded ExxonMobil

EXXON MOBIL CORP
XOM

88.35 UNCH 0
NYSE




[XOM 88.35 --- UNCH (0) ]to Outperform, saying that earnings revisions were coming.

--Finally, in the gee-thanks-for-that category: Merrill Lynch downgrades GM

GENERAL MTRS CORP
GM

11.75 UNCH 0
NYSE




[GM 11.75 --- UNCH (0) ], reduces the price target for $7 from $28 (read that again: to $7 from $28) and adds we believe there is potential downside in the stock below $7 and "bankruptcy is not impossible if the market continues to deteriorate and significant incremental capital is not raised." GM down 4 percent.


Markets Oversold, Traders Bearish - Trader Talk with Bob Pisani - CNBC.com



Opening View: Starbucks to Close 19 Percent of Stores Opened in Last 2 Years

After the close yesterday, Starbucks (SBUX: View sentiment for SBUXsentiment, chart, options) announced that it will close 600 company-operated stores in the next year – making up nearly 19% of all domestic stores opened in the last 2 years. About 12,000 workers are expected to be affected by the closings, which are slated to take place between later this month and the middle of 2009. The coffee king blamed the downsizing on the slowing U.S. economy, which has caused the company's traffic of late to drop significantly.

Elsewhere, UnitedHealth Group (UNH: View sentiment for UNHsentiment, chart, options) this morning lowered its 2008 profit outlook, citing slowing commercial business and higher-than-expected Medicare-related costs. The firm now expects 2008 adjusted profit of $2.95 to $3.05 per share on revenue of $81 billion, compared to previous projections for profit of $3.55 to $3.60 per share. Analysts, on average, had forecast annual profit of $3.52 per share on revenue of $81.02 billion.

Swiss bank UBS (UBS: View sentiment for UBSsentiment, chart, options) remains in the spotlight this morning, after a federal judge issued an order authorizing the Internal Revenue Service (IRS) to issue a "John Doe" summons to obtain information regarding possible tax fraud by unknown individuals. The bank will likely have to open its books on American clients who may be using Swiss bank accounts to evade federal income taxes, MarketWatch reported.

Finally, the U.S. District Court for the District of New Jersey backed AstraZeneca (AZN: View sentiment for AZNsentiment, chart, options) in a patent lawsuit regarding its antipsychotic medicine Seroquel, removing the threat of generic competition domestically. Drug maker Teva Pharmaceuticals (TEVA) and Sandoz, a unit of Novartis AG (NVS), had planned to make generic copies of the drug.



Opening View: Starbucks to Close 19 Percent of Stores Opened in Last 2 Years


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
Tuesday's Close Current Price Pct Chng Current NYSE Arca Vol
MBRK

$3.07

$1.56

( 49%)

958,204

ALDN

$13.28

$10.00

( 25%)

78,612

APOL

$46.30

$54.55

18%

28,440

BBI

$2.51

$2.90

15%

20,970

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
$266,859,898
IWM
$63,215,617
QQQQ
$25,293,116
YHOO
$14,846,721
NVT
$11,751,872
UNH
$10,333,053
BHP
$6,400,204
USO
$5,759,606
AAPL
$4,797,729
BP
$4,458,070
Stock
Share Volume
SPY
2,068,359
MBRK
958,204
IWM
912,879
YHOO
682,111
QQQQ
548,401
UNH
393,698
XLF
206,200
GM
191,835
NVT
150,955
NOK
131,108

MBRK:


ALDN:
APOL:
BBI:




NYSE Arca Morning Update


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)

Apollo Group, Inc.
$46.26 $54.36 17.51% 51,070

Yahoo! Inc.
$20.20 $22.08 9.31% 1,677,109

Allscripts Healthcare Solutions Inc
$12.16 $13.20 8.55% 26,850

Starbucks Corporation
$15.62 $16.30 4.35% 46,356

Fifth Third Bancorp
$10.61 $10.95 3.20% 4,450

Dell Inc.
$22.18 $22.80 2.80% 7,703

Dollar Tree, Inc.
$33.08 $34 2.78% 25,100

Shire Limited
$47.57 $48.79 2.56% 14,200

SanDisk Corporation
$17.62 $18.05 2.44% 23,390

JA Solar Holdings, Co., Ltd.
$15.79 $16.10 1.96% 7,434

As of 7/2/2008 8:27:23 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)

Aladdin Knowledge Systems Limited
$13.26 $9.99 24.66% 74,263

Lincare Holdings Inc.
$28.87 $27 6.48% 237,200

Ryanair Holdings plc
$29.10 $28.10 3.44% 5,600

ARM Holdings, plc
$5.21 $5.12 1.77% 300,000

Quest Resource Corporation
$10.86 $10.70 1.47% 17,900

Hydrogenics Corporation
$2.22 $2.20 0.90% 19,250

Sun Microsystems, Inc.
$10.74 $10.65 0.84% 6,600

CommVault Systems, Inc.
$16.61 $16.53 0.48% 3,237

Teva Pharmaceutical Industries Limited
$46.99 $46.79 0.43% 15,358

Capstone Turbine Corporation
$4 $3.99 0.25% 8,550

As of 7/2/2008 8:27:57 AM


Pre-Market Most Active Stocks - NASDAQ Premarket


Pre Market Movers - Futures Trading - Nasdaq - NYSE

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