Zecco Morning Report (OCT 8 2009)
<Section>MARKET UPDATE </Section>
<ArticleDate>2009-10-08 </ArticleDate>
<market_commentary>
Equities are much after Alcoa (AA) kicked off earnings season last night with a bang. DJIA futures are up about 75 points and S&P futures are up about 9 points. Late morning trading in Europe has the FTSE up 0.6%, the CAC in France up 1.1% and the DAX in Germany up 1.2%. In Asia, Hong Kong rose 1.2% and Japan rose 0.35%.
Treasury prices are lower with the 10-year yielding 3.195% and the 30-year is yielding 4.01%. Asian central banks are intervening to protect the US Dollar.
Commodities are higher this morning along with equities: NYMEX WTI Crude is up $0.65 per barrel at $70.22 and gold is up 1.1% at $1,054.00 per ounce.
</market_commentary>
<Section>ECONOMIC & MACRO EVENTS</Section>
<ArticleDate>2009-10-08 </ArticleDate>
<EconomicMacro>
These are today’s top economic data:
8:30 AM EST Weekly Jobless Claims
10:00 AM EST Wholesale Inventories (AUG)
10:30 AM EST Weekly Natural Gas Inventories
Earnings Today: CalAmp (CAMP), International Speedway (ISCA), <arriott (MAR), Nu Horizons (NUHC), Pepsico (PEP).
</EconomicMacro>
<UpgradesDowngradesSection>ANALYST UPGRADES & DOWNGRADES
<Upgrades>
Adobe (ADBE) Raised to Outperform at RW Baird.
Clorox (CLX) Raised to Buy at Deutsche Bank.
Goldman Sachs (GS) Started as Buy at Deutsche Bank.
Morgan Stanley (MS) Started as Buy at Deutsche Bank.
Monster Worldwide (MWW) Raised to Overweight at JPMorgan.
Rackspace (RAX) Raised to Buy at Goldman Sachs.
</Upgrades>
<Downgrades>
BB&T (BBT) Started as Sell at UBS.
Broadcom (BRCM) Cut to Neutral at RW Baird.
Fifth Third Bancorp (FITB) Started as Sell at UBS.
L-3 Communications (LLL) Cut to Conviction Sell List from Neutral at Goldman Sachs.
PNC Financial (PNC) Started as Sell at UBS.
Prosperity Bancshares (PRSP) Cut to Underweight at Morgan Stanley.
SunTrust (STI) Started as Sell at UBS.
Wells Fargo (WFC) Started as Sell at UBS.
</Downgrades>
</UpgradesDowngradesSection>
<Section>BULLISH EVENTS </Section>
<CompanyName> ALCOA </CompanyName>
<Exchange>NYSE </Exchange>
<Symbol>AA </Symbol>
<Sentiment>Bull</Sentiment>
<Rank>1</Rank>
<ArticleDate>2009-10-08 </ArticleDate>
<Summary> Alcoa Inc. (NYSE: AA) rose after earnings. The aliminum giant led metals higher after the company posted a surprise profit as most analysts were expecting a quarterly loss to be the end result. </Summary>
<CompanyName>PepsiCo </CompanyName>
<Exchange>NYSE </Exchange>
<Symbol>PEP </Symbol>
<Sentiment> Bull</Sentiment>
<Rank>2</Rank>
<ArticleDate>2009-10-08 </ArticleDate>
<Summary> PepsiCo (NYSE: PEP) just posted earnings at $1.09 EPS on $11.08 billion in revenues. Thomson Reuters had estimates at $1.03 EPS and $11.26 billion in revenues. The net earnings of $1.72 billion compares to $1.58 billion a year ago. </Summary>
<CompanyName>ScanSource </CompanyName>
<Exchange>NASDAQ </Exchange>
<Symbol>SCSC </Symbol>
<Sentiment> Bull</Sentiment>
<Rank>3</Rank>
<ArticleDate>2009-10-08 </ArticleDate>
<Summary> ScanSource Inc. (SCSC) has raised its first-quarter sales guidance to a range of $480 million to $488 million for the quarter ended September 30. Thomson Reuters has estimates at $450 million, but this is down from $539.8 million a year ago.
</Summary>
<CompanyName> Zumiez </CompanyName>
<Exchange>NASDAQ </Exchange>
<Symbol> ZUMZ </Symbol>
<Sentiment> Bull</Sentiment>
<Rank>4</Rank>
<ArticleDate>2009-10-08 </ArticleDate>
<Summary> Zumiez (ZUMZ) has traded very little, but the retailer posted a drop of less than 1% in September same store sales </Summary>
<CompanyName> Hot Topic </CompanyName>
<Exchange>NASDAQ </Exchange>
<Symbol>HOTT </Symbol>
<Sentiment> Bull</Sentiment>
<Rank>5</Rank>
<ArticleDate>2009-10-08 </ArticleDate>
<Summary> Hot Topic (HOTT) brought in same store sales for September at -4.0%, but this was better than what was expected. As many traders have been using this is a teen-bogey, shares rose 7% on the news. </Summary>
<Section>BEARISH EVENTS</Section>
<CompanyName> Finisar </CompanyName>
<Exchange>NASDAQ </Exchange>
<Symbol>FNSRD </Symbol>
<Sentiment> Bear</Sentiment>
<Rank>1</Rank>
<ArticleDate>2009-10-08 </ArticleDate>
<Summary> Finisar (NASDAQ: FNSRD) used to trade as FNSR, but this stock tanked after the close. This is what happened after a $75 million capital raise was announced via the sale of convertible notes. </Summary>
<CompanyName> Savient Pharmaceuticals, Inc. </CompanyName>
<Exchange>NASDAQ </Exchange>
<Symbol>SVNT </Symbol>
<Sentiment> Bear</Sentiment>
<Rank>2</Rank>
<ArticleDate>2009-10-08 </ArticleDate>
<Summary> Savient Pharmaceuticals, Inc. (SVNT) is down on reports that it would sell some 4 million shares of common stock. Based on the close, that generate $60 million in stock being sold versus a market cap of $928 million. The drop is somewhere around 7% on the news. </Summary>
<CompanyName> RINO International Corporation </CompanyName>
<Exchange>NASDAQ </Exchange>
<Symbol>RINO </Symbol>
<Sentiment>Bear</Sentiment>
<Rank>3</Rank>
<ArticleDate>2009-10-08 </ArticleDate>
<Summary> RINO International Corporation (RINO) traded down by some 4% after word that it filed a mnized securities shelf to allow the firm to raise capital via the sale of multiple classes of securities. </Summary>
<CompanyName>Live Nation </CompanyName>
<Exchange>NYSE </Exchange>
<Symbol>LYV </Symbol>
<Sentiment> Bear</Sentiment>
<Rank>4</Rank>
<ArticleDate>2009-10-08 </ArticleDate>
<Summary> The U.K. merger regulator has decided that a proposed merger between Live Nation (LYV) and Ticketmaster (TKTM) would prevent new competitors from being able to open for ticket retailing activities. It also fears that this could lead to higher ticket prices. </Summary>
<CompanyName> IBM </CompanyName>
<Exchange>NYSE </Exchange>
<Symbol>IBM </Symbol>
<Sentiment> Bear</Sentiment>
<Rank>5</Rank>
<ArticleDate>2009-10-08 </ArticleDate>
<Summary>IBM (IBM) is facing a DOJ inquiry over antitrust behavior. The reports are that IBM mainframes did not allow non-IBM compliant software to properly function on the mainframes, which IBM has effectively said is not the case. </Summary>
Subscribe to this feed |