Thursday, July 31, 2008

Pre Market Trader Talk with Bob Pisani - CNBC.com

Futures dropped 10 points as jobless claims were higher than anticipated (448,000, the highest since Apr '03), while second quarter GDP, at 1.9 percent,was a bit below the expectations of 2.3 percentage growth. GDP is particularly disappointing given that the tax rebate did give the economy a one-time shot in the arm. Dollar dropped, oil rallied.

Two oil stories:

1) ExxonMobil


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[ Loading... () ]had a record quarter for revenue, but earnings were below expectations, $2.22 vs. $2.52 expected. Production volumes were a bit light, possibly due to a strike in Nigeria and other issues. Remember total revenues for Exxon are very much tilted toward the downstream side, but profit margins are much higher on the upstream side.

2) Marathon

MARATHON OIL CORP
MRO

45.13 UNCH 0
NYSE




[MRO 45.13 --- UNCH (0) ]is up 7 percent pre-open after announcing it is evaluating separating the company into two parts, one focused on Exploration and Production, the other on Refining and Marketing. But look, this is mostly a refining company: 86 percent of 2007 revenues were from refining and marketing; only 14 percent from E&P. Their stock has suffered as refining margins have dropped on the high oil prices.

Elsewhere:

1) Bristol Myers

BRISTOL-MYERS SQUIBB CO
BMY

21.51 UNCH 0
NYSE




[BMY 21.51 --- UNCH (0) ]making an offer to buy the rest of ImClone for $60 a share, which would give it control of the cancer drug Erbitux. They currently own 17 percent. This is another attempt to take over a biotech company, following on the heels of the Roche-Genentch deal.

2) Motorola

MOTOROLA INC
MOT

7.68 UNCH 0
NYSE




[MOT 7.68 --- UNCH (0) ]had a smaller than expected loss, guidance was breakeven to $0.02, vs. estimate of $0.01. The handset business looks more stable, but is still losing money. Up 13 percent pre-open.

3) Visa

VISA INC.
V

78.45 UNCH 0
NYSE




[V 78.45 --- UNCH (0) ]came in above expectations. Yes, the economy is slowing, and the volume growth is not quite as great as it was, but the company is still growing, as Buckingham noted: "growth of payments volume, transactions, and revenues are likely to slow, but even at mid teens growth rates, are still very high relative to GDP."

4) As for Disney,

WALT DISNEY CO (THE)
DIS

31.67 UNCH 0
NYSE




[DIS 31.67 --- UNCH (0) ] they beat slightly, and while everyone thought their theme parks would be slow, they surprised here: park revenues were up 5 percent; Morgan Stanley attributed the relatively strong performance to international attendance and positive foreign exchange. Park bookings were flat, and while that may be disappointing to some, flat is no disaster in this economy. On top of that, the cable networks were strong, particularly ESPN, and even ABC did fairly well. A slowdown in advertising remains a concern.



GDP, Jobless Claims Just Plain Disappointing - Trader Talk with Bob Pisani - CNBC.com



Pre Market Trading Gap News

Gapping Down

In reaction to disappointing earnings/guidance: BARE -22.0% (also downgraded to Neutral at Piper), AKAM -20.6% (also downgraded to Market Perform at FBR), HOLX -17.9% (also downgraded to Hold at Jefferies), NHWK -17.0%, SSYS -14.4%, ARCI -13.5% (light volume), BT -10.8%, CNX -10.7% (light volume), THQI -9.7% (also downgraded to Hold at Lazard, downgraded to Hold from Buy at Sterne Agee and downgraded to Perform at Oppenheimer), NEWP -9.0% (also downgraded to Hold at Brean Murray), GGP -8.4% (also downgraded to Sell at Citigroup), OII -8.3%, HRS -7.1%, LVS -5.9%, PH -5.1%, MA -5.1%, FLDR -4.9%, HMN -4.6%, DIS -3.7%, TSS -3.5% (also downgraded to Equal Weight at First Analysis), SNY -2.9%, RDS.A -2.4%, XOM -2.1%, MO -2.1%, AVB -2.0% (also downgraded to Underperform from Neutral at Merrill), V -1.8% (also upgraded to Buy from Add at Calyon), UNM -1.4%, SFI -1.1%…


Select mortgage/financials pulling back: MBI -4.9%, FNM -4.8%, LEH -4.6%, FRE -4.0%, MER -3.8%, WB -3.4%, BAC -3.2%, WM -3.0%, C -2.3%, WFC -1.9%, GS -1.9%, MS -1.8%, JPM -1.6%…


Other news: UN -9.0% (falls in Europe on lower 2Q volumes - DJ), GM -6.1% (still checking), TM -2.9% (Toyota Motor group cos Denso, Aisin Seiki and Toyota Industries were trounced after cutting their outlooks, casting a cloud over the mkt), CHKE -2.2% (cuts quarterly dividend to $0.50 a share from $0.75; ends strategic alternative process), ASML -1.5% (still checking)…


Analyst comments: LYG -4.4% (downgraded to Hold at Deutsche Bank), KEY -2.2% (downgraded to Neutral at Baird), AVP -1.4% (downgraded to Hold at Deutsche Bank), GRMN -1.3% (downgraded to Hold at Wedbush), EXR -1.1% (downgraded to Hold at Deutsche Bank).

Gapping Up

In reaction to strong earnings/guidance: PDGI +16.3% (also upgraded to Buy at Jefferies), MOT +13.3%, DXPE +13.0%, TTEK +12.6% (also awarded 2 energy projects for approx. $28 mln and awarded $64 mln BRAC design-build project contract), LKQX +12.3%, ARRS +12.0%, ANDE +10.5%, OIIM +9.4%, CGV +8.9%, GOLD +8.8%, TYC +8.2% (light volume), AMCC +7.9%, SHPGY +7.9%, MTZ +7.8% (also upgraded to Outperform at FBR), SYMC +6.7%, MRO +6.4% (also announces it is evaluating separation of businesses; decision expected during 4Q08), FSLR +6.3%, TRN +6.3%, WYN +5.8%, ITRI +5.0%, AZN +4.7%, SBUX +4.4%, FLS +4.4%, MUR +3.7%, GMR +3.6% (light volume), IP +3.6%, ESRX +3.6%, SWN +3.5%, FTE +3.5% (light volume), CVC +3.5%, ULBI +3.2%, OI +3.0%, TRCA +2.7%, WLL +2.5% (upgraded to Outperform at RBC), CIR +2.0%, NLY +1.3%, GG +1.3%…


M&A news: IMCL +40.8% (Bristol-Myers Offers To Acquire Imclone For $60/Share)…


Select metals/mining stocks trading higher with strength in commodities and dollar weakness: LMC +3.1%, BHP +2.3%, AU +2.0%, RTP +1.9%, BBL +1.7%, GFI +1.5%…


Select solar stocks showing strength boosted by FSLR results: SOLF +6.8% (signs 30MW sales contract with Martifer Solar), SOLR +5.2% (still checking), CSUN +4.7%, YGE +4.7%, SOL +4.3%, JASO +3.9%, CSIQ +3.6%, ESLR +3.5%, SPWR +2.6%, STP +2.4% (the co and PV Crystalox Solar PLC, a specialist multicrystalline solar wafer manufacturer, announce they have signed an initial five-year silicon wafer supply agreement)…


Other news: CADX +52.6% (announces FDA concurrence with clinical development plan for Acetavance), GVHR +7.2% (to engage in strategic discussions), AMLN +5.5% (still checking), QGEN +5.1% (still checking), MTL +5.0% (Russia widens coal probe to Evraz, Raspadskaya - WSJ), AMD +4.7% (still checking), PCLN +2.5% (will replace KEM in the S&P MidCap 400), RIMM +1.9% and RHT +1.0% (Cramer makes positive comments on MadMoney)…


Analyst comments: SGP +6.0% (upgraded to Buy at Merrill), GTE +2.6% (upgraded to Overweight at Weisel), DELL +2.1% (upgraded to Outperform from Neutral at Cowen).



Opening View: Walt Disney, Motorola Take the Earnings Reins

Checking in on blue chips, Walt Disney (DIS: View sentiment for DISsentiment, chart, options) stepped into the earnings spotlight after the close yesterday. The company reported third-quarter earnings of $1.28 billion, up 9% from a year ago. Excluding items, DIS earned a profit of 62 cents per share. Revenue for the quarter jumped 2% higher to $9.24 billion. Analysts, on average, were predicting third-quarter earnings (excluding items) of 61 cents per share on $9.14 billion in sales. While the cartoon king attributed its rising profits to revenue growth at ESPN and strong results from its theme park in France, it also warned that the advertising market was slowing down in the current quarter.

Meanwhile, Motorola (MOT: View sentiment for MOTsentiment, chart, options) said it swung to a second-quarter gain of $4 million, or breakeven per share, from a loss of $28 million, or a penny per share, last year. The latest period included charges of 2 cents per share. Sales fell to $8.1 billion from $8.7 billion a year prior. The Street was looking for a loss of 4 cents per share on revenue of $7.7 billion. For the third quarter, the company expects to break even or earn up to 2 cents per share. For the full year, MOT expects an operating profit of 6 cents to 8 cents per share. Analysts, on average, were expecting earnings of a penny per share for both the third quarter and the full year.

Rounding out the earnings trifecta, Starbucks (SBUX: View sentiment for SBUXsentiment, chart, options) reported a second-quarter net loss of $6.7 million, or a penny per share, down from a profit of $158.3 million, or 21 cents, in the year-ago period. Meanwhile, revenue for the quarter rose 9.1% to $2.57 billion. Wall Street was expecting earnings of 18 cents per share on $2.6 billion in sales. The java giant slashed its 2008 profit guidance to the "mid-seventy-cent" per-share range; analysts are expecting a full-year profit of 81 cents per share. However, the firm kept its 2009 profit guidance of 90 cents to $1 per share.



Opening View: Walt Disney, Motorola Take the Earnings Reins


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
CADX

$6.41

$11.01

72%

6,850

IMCL

$46.40

$65.52

41%

1,408,788

BARE

$16.74

$12.47

( 25%)

16,950

PDGI

$18.04

$21.74

21%

5,470

AKAM

$31.25

$25.35

( 19%)

573,512

HOLX

$22.85

$19.00

( 17%)

164,256

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
$153,807,914
IMCL
$90,998,620
MA
$27,542,541
V
$22,606,217
XOM
$14,519,953
AKAM
$14,393,643
QQQQ
$12,541,624
GLD
$10,467,778
FSLR
$9,538,832
BP
$8,790,285
Stock
Share Volume
IMCL
1,408,788
SPY
1,194,034
MOT
600,791
AKAM
573,512
V
287,666
QQQQ
274,104
XOM
175,223
MRO
164,909
HOLX
164,256
BP
141,476


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)

Cadence Pharmaceuticals, Inc.
$6.42 $11.50 79.13% 47,695

ImClone Systems Incorporated
$46.44 $65.27 40.55% 5,082,356

PharmaNet Development Group, Inc.
$18.05 $22.50 24.65% 21,470

GFI Group Inc.
$9.07 $10.45 15.21% 4,900

DXP Enterprises, Inc.
$45.88 $51 11.16% 3,000

Randgold Resources Limited
$46.92 $50.63 7.91% 41,684

Arris Group Inc
$8.47 $9.13 7.79% 3,500

Shire Limited
$46.33 $49.58 7.01% 286,925

LKQ Corporation
$17.81 $19 6.68% 6,990

Symantec Corporation
$19.69 $20.98 6.55% 953,604

As of 7/31/2008 9:21:02 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)

Bare Escentuals, Inc.
$16.93 $12.25 27.64% 326,555

Akamai Technologies, Inc.
$31.25 $25 20.00% 1,544,858

Stratasys, Inc.
$19.27 $16.38 15.02% 11,900

Hologic, Inc.
$22.85 $19.50 14.66% 2,694,844

THQ Inc.
$16.05 $14 12.77% 79,000

Sohu.com Inc.
$76.94 $74.23 3.52% 7,794

China Finance Online Co. Limited
$17.55 $17 3.13% 3,000

James River Coal Company
$44.09 $42.75 3.04% 4,525

Dendreon Corporation
$5.69 $5.52 2.99% 6,850

Psychiatric Solutions, Inc.
$35.79 $34.90 2.49% 12,075

As of 7/31/2008 9:21:50 AM



Pre-Market Most Active Stocks - NASDAQ Premarket



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