Wall Street Addict

Employers' cost to hire and retain workers picked up slightly in the second quarter but not enough to fan inflation fears.
The Labor Department reported Tuesday that compensation costs -- including wage, salaries and benefits -- rose by 0.9 percent in the April-to-June quarter. That was up a bit from the first quarter's 0.8 percent rise.
The second quarter's increase matched economists' expectations. Economists look closely at labor costs for any signs that they might be generating inflation. A solid employment climate has made it easier for some workers to command higher wages and benefits.
Federal Reserve Chairman Ben Bernanke said the central bank's biggest concern is if inflation doesn't recede as policymakers anticipate. The Fed looks closely at the price of goods and services as well as various labor cost barometers as it tries to gauge inflation pressures.

Labels: Ben Bernanke, Employment, Inflation

Stocks surged in early trading Tuesday, lifting the Dow Jones industrials more than 100 points, as strong earnings from General Motors Corp. and Sun Microsystems Inc. helped Wall Street extend its recovery from last week's plunge.
Investors' inflationary fears were also alleviated after the Commerce Department reported that in June, year-over-year core personal consumption expenditures -- one the Federal Reserve's preferred gauges of inflation -- was up 1.9 percent. That rate is within the Fed's comfort zone.
The tame core PCE appeared to offset some disappointment that June personal spending rose 0.1 percent, weaker than expected and below May's 0.6 percent jump. High gasoline prices and the housing market slump dampened consumer spending to the slowest pace in nine months.
Investors remained optimistic after quarterly results from server and software maker Sun Microsystems and automaker GM, which both posted better-than-expected profits.
Merger and acquisition activity also helped lift the stock market, which rebounded Monday following a sharp plunge last week on worries that a deteriorating lending environment would dampen dealmaking and growth. Billionaire investor Nelson Peltz's Triarc Cos. said he is willing to offer $37 to $41 a share to buy Wendy's International Inc., while the Wall Street Journal reported that its parent company, Dow Jones & Co., and Rupert Murdoch's News Corp. are getting closer to a deal.
In early trading, the Dow Jones industrial average rose 104.53, or 0.78 percent, to 13,462.84, after gaining more than 100 points at the market's open.
Broader stock indicators also rose. The Standard & Poor's 500 index was up 10.23, or 0.69 percent, at 1,484.14, and the Nasdaq composite index was up 16.77, or 0.65 percent, at 2,600.05.
Bonds were little changed, and the 10-year Treasury note's yield was at 4.81 percent, the same as late Monday.
The stock market slipped only slightly after the Chicago purchasing manager's index indicated weaker-than-expected growth in July than in June. The report is considered a precursor to the Institute for Supply Management's national manufacturing index, which will be released Wednesday.
Published by AP

Labels: DJ, GM, NWS, SUNW, WEN

Individuals took a shopping break in June, boosting their spending at the slowest pace in nine months as high gasoline prices and fallout from the housing slump made people think twice about buying.
The Commerce Department reported Tuesday that consumer spending edged up by just 0.1 percent. That marked a pullback from May's brisk 0.6 percent rise and was the smallest increase since last September. Incomes, the fuel for future spending, rose by 0.4 percent in June for the second month in a row.
The spending and income figures aren't adjusted for inflation. The consumer spending figure matched economists' expectation, while income growth was just shy of analysts' forecasts for a 0.5 percent increase.
Consumer spending plays a major role in shaping overall economic activity. In the first three months of this year, it was consumers' brisk spending that prevented the economy from stalling. However, in the April-to-June quarter, consumers were much more subdued. They boosted spending at a pace of just 1.3 percent, the slowest since the final quarter of 2005, the government reported last week.

Labels: Commerce, Consumer Spending, Wall Street

Stocks surged in early trading Tuesday, as strong earnings from General Motors Corp. and Sun Microsystems Inc. helped Wall Street extend its recovery from last week's plunge. The Dow Jones industrial average shot up more than 100 points.
Investors' inflationary fears were also alleviated after the Commerce Department reported that year-over-year core personal consumption expenditures -- one the Federal Reserve's preferred gauges of inflation -- rose 1.9 percent. That rate is within the Fed's comfort zone.
The core PCE appeared to offset some disappointment that June personal spending rose 0.1 percent, weaker than expected and below May's 0.6 percent jump. U.S. consumers spent at the slowest pace in nine months due to high gasoline prices and the housing market slump.
In the first minutes of trading, the Dow Jones industrial average rose 102.74, or 0.77 percent, to 13,461.05.

Labels: GM, SUNW

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Goldman Sachs Sep 230 Calls (NYSE:GS - News).
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Frontline Ltd. Aug 50 Puts (NYSE:FRO - News).
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Mastercard Inc. Aug 185 Calls (NYSE:MA - News).
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Chipotle Mexican Grill, Inc. Aug 80 Puts (NYSE:CMG - News).
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
TD Ameritrade Holding Corporation (NasdaqGS:AMTD - News).
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Utilities Select Sector SPDR (AMEX:XLU - News).
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Goodyear Tire & Rubber Co. (NYSE:GT - News).
PowerRatings are courtesy of TradingMarkets.com

Labels: AMTD, CMG, FRO, GS, GT, Hot Stock Options, MA, XLU

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Our research shows that stocks exhibiting this price behavior, while trading above their 200-day moving average, have on average, shown positive returns 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge. To learn more about our research into stocks exhibiting this type of behavior, go to TradingMarkets.com.
Gaps Down 5% or More: Radioshack (NYSE:RSH - News). RSH's PowerRating is 8.
Laps Down 5% or More: Elan (NYSE:ELN - News). ELN's PowerRating is 8.
5+ Consecutive Down Days: Harvest Natural Resources (NYSE:HNR - News). HNR's PowerRating is 9.
5+ Consecutive Lower Lows: Checkpoint Systems (NYSE:CKP - News). CKP's PowerRating is 9.
2-Period RSI Below 2: O2Micro International (NasdaqGS:OIIM - News). OIIM's PowerRating is 9.
Bearish
Our research shows that stocks exhibiting this price behavior, while trading below their 200-day moving average, have on average, shown negative returns 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
5+ Consecutive Up Days: Nomura (NYSE:NMR - News). NMR's PowerRating is 3.
Stocks Up 10% or More: Vertex Pharmaceuticals (NasdaqGS:VRTX - News). VRTX's PowerRating is 3.
Reminder: We are in no way recommending the purchase or sale of these stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions, price patterns and risk; our information is designed to contribute to your understanding.
PowerRatings (for Traders) are courtesy of TradingMarkets.com.

Labels: CKP, ELN, HNR, Hot Stocks, NMR, OIIM, RSH, VRTX

Stocks rose on Monday, as optimism about earnings and M&A activity in the industrial sector countered the worries about worsening credit conditions that led to a global equity sell-off last week.
Expectations for quarterly earnings growth by Standard & Poor's 500 companies were raised to 6.8 percent compared with the year-ago period from 6.0 percent one week earlier, according to Reuters Estimates.
Shares of industrial companies gained after Ingersoll-Rand Co. Ltd. (NYSE:IR - News) said it planned to sell its Bobcat machinery business and two other units to South Korea's Doosan Infracore.
Ingersoll-Rand shares rose 6.6 percent to $51.37, while the S&P industrials index (^GSPI - News) rose 1.4 percent.
But that deal aside, there was a lack of the typical flurry of takeover and buyout announcements seen on many Mondays this past year. Tightening lending standards are threatening to slow or halt the pace of corporate buyouts, including several by private equity firms, which have fueled a rally in stocks.
Source: Reuters

Labels: Earnings, IR, Wall Street

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Pozen Inc. Sep 22.5 Calls (NasdaqGM:POZN - News). POZN's PowerRating is 7.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Frontline Ltd. Aug 50 Puts (NYSE:FRO - News). FRO's PowerRating is 7.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Perini Corp. Aug 60 Calls (NYSE:PCR - News). PCR's PowerRating is 9.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Mastercard Inc. Aug 135 Puts (NYSE:MA - News). MA's PowerRating is 7.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Union Pacific Corp. (NYSE:UNP - News). UNP's PowerRating is 7.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Netgear Inc. (NasdaqGS:NTGR - News). NTGR's PowerRating is 7.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
DR Horton Inc. (NYSE:DHI - News). DHI's PowerRating is 6.
PowerRatings are courtesy of TradingMarkets.com

Labels: DHI, FRO, Hot Stock Options, MA, NTGR, PCR, POZN, UNP

Here are 7 trading ideas for today. These lists come directly from the TradingMarkets Stock Indicators page and are based upon our latest quantitative research.
Bullish
Our research shows that stocks exhibiting this price behavior, while trading above their 200-day moving average, have on average, shown positive returns 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
Gaps Down 5% or More: Volcom (NasdaqGS:VLCM - News). VLCM's PowerRating is 8.
Laps Down 5% or More: Kyocera (NYSE:KYO - News). KYO's PowerRating is 7.
5+ Consecutive Down Days: Raser Technologies (NYSE:RZ - News). RZ's PowerRating is 10. 5+ Consecutive Lower Lows: Gulfport Energy (NasdaqGS:GPOR - News). GPOR's PowerRating is 9.
2-Period RSI Below 2: True Religion Apparel (NasdaqGM:TRLG - News). TRLG's PowerRating is 9.
Bearish
Our research shows that stocks exhibiting this price behavior, while trading below their 200-day moving average, have on average, shown negative returns 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge.
5+ Consecutive Up Days: ProShares UltraShort Mid Cap 400 (AMEX:MZZ - News). MZZ's PowerRating is 3.
5+ Consecutive Higher Highs: ProShares UltraShort Dow 30 (AMEX:DXD - News). DXD's PowerRating is 4.
Reminder: We are in no way recommending the purchase or sale of these stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions, price patterns and risk; our information is designed to contribute to your understanding.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: DXD, GPOR, Hot Stocks, KYO, MZZ, RZ, TRLG, VLCM

Stock index futures pointed to a weaker start for the market in choppy trading on Monday after heavy losses last week on fear that a credit crunch would slow or stop the pace of takeovers that have boosted stocks.
In the latest sign of problems in the home lending market, American Home Mortgage Investment Corp. (NYSE:AHM - News) said its banks were demanding that it put up more cash after the mortgage lender was forced to write down the value of its mortgage and security portfolios. The shares fell 25 percent before the opening bell.
U.S. equities suffered their worst week in nearly five years last week on concern that tightening lending standards could hurt corporate buy-outs and stock buybacks that have fueled a spring rally in equities.

Labels: AHM, HSBA.L

Asian markets bounced back and European stocks edged higher Monday as investors snapped up stocks after last week's global sell-off and reassessed the possible fallout from U.S. housing woes on international markets.
Japan's benchmark Nikkei 225 index inched up 0.03 percent to 17,289.30, after having plunged 2.4 percent Friday. Hong Kong's benchmark Hang Seng index rose 0.8 percent, Singapore's market climbed 1 percent and Australian stocks gained 0.4 percent.
Chinese stocks hit a new record, but Philippine shares slid 1.5 percent.
Asian and European markets sank Friday in reaction to a sharp decline on Wall Street Thursday amid worries that problems in the U.S. subprime mortgage market could drag on U.S. economic growth and cause investors to pull out of riskier assets.
Some of those concerns subsided Monday as investors bought stocks that appeared oversold, betting that worries over the broader impact of U.S. mortgage market ills may have been overdone, analysts said.

Labels: Asian Markets, China, Europe, Japan

Stock futures lifted in wobbly trading Monday, as Wall Street remained jittery about a possible credit crunch putting a crimp on U.S. growth.
Last week was the worst in five years for the Dow Jones industrial average and the Standard & Poor's 500 index. On Thursday and Friday, the Dow fell a total of 585 points, caving under growing worries about a shakier lending climate.
Some of Monday's major earnings reports brought good news. Health benefits provider Humana Inc. said its second-quarter profit more than doubled year-over-year, and HSBC Holdings PLC, Europe's largest bank by market value, said that while lending risks remain, its first-half earnings rose by 25 percent.
But market volatility is high and credit concerns are running deep, so it's unclear if any of the day's news will allay investors' fears of a major correction. Stock futures -- bets on how the stock market will perform during the normal trading session -- bobbed higher and lower ahead of the opening bell.
Investors were also disappointed to hear that China tightened its credit again to rein in the country's excess cash, by ordering banks to hike their reserves.
Dow futures expiring in September rose 17, or 0.13 percent, to 13,301. The Standard & Poor's 500 futures rose 0.70, or 0.05 percent, at 1,458.70, while the Nasdaq 100 futures rose 1.00, or 0.05 percent, to 1,964.50.

Labels: HBC, HUM, RSH, Stock Futures, VZ

Summary: Patent and price battles have seen content-delivery-network [CDN] giant Akamai (NasdaqGS: AKAM - News) and upstart competitor Limelight (NasdaqGM: LLNW - News) lose ground, while $667 million small-cap rival Internap (NasdaqGM: INAP - News) forecasts 30% earnings growth for 2007, 50% higher gross margins and company-wide higher profits. Internap only recently entered the CDN business with its VitalStream acquisition, and CDN accounts for just 10% of Internap's $192.3 million in revenues. But it foresees explosive CDN growth as net users increasingly seek smooth delivery of rich online content. Internap's edge is its proprietary software that has guaranteed 100% reliable internet-routing services and data center hosting (90% of Internap's business), and now guarantees 100% uninterrupted content delivery. The reliability guaranty premium keeps Internap out of CDN price wars while gaining it market share. Akamai shares fell about 25% last week over forecasts of market-share loss and shrinking orders; Limelight is down about the same this month. Barron's says Internap's Tuesday earnings report will forecast higher growth, lifting its $13.42 shares back towards January's $20 price.
Published by SeekingAlpha

Labels: AKAM, INAP, LLNW

Summary: GPS giant Garmin's (NasdaqGS: GRMN - News) shares ($80) have rallied more than 150% since last February. Escalating car-GPS sales in the U.S. and Europe boosted revenue 73% to $1.77 billion in 2006, while EPS climbed a robust 64% to $2.35. Analysts expect EPS of $2.89/share in 2007, and $3.28 in 2008. Dougherty & Co. analyst Jeff Evanson notes that marine and aviation markets have yet-to-be tapped by GPS devices. He says Dutch rival TomTom is struggling to find footing in the U.S., where Garmin controls 50% of the market. He also notes that Garmin just recently began selling units through Wal-Mart (NYSE: WMT - News). Bearish analysts like Bank of America's Ron Tadross say share prices already reflect the company's growth prospects. He cedes that sales of portable navigation devices will continue to grow at a 110% annual clip, but worries about market share being usurped by other GPS players, and pre-installed car systems. Barron's is unimpressed by the opposition: Sony (NYSE: SNE - News) introduced an unimpressive unit last year, while Garmin continues to roll out cheaper mass-market units, and still caters the demand for innovation at the high-end. Despite record demand, the percentage of drivers who own GPS systems remains low. Evanson says shares could hit $93 over the coming year.
Published by SeekingAlpha

Labels: Barron's, GRMN, SNE, WMT

Summary: Subprime-leery investors avoid financial/lending stocks lately, especially US-centric ones like Raymond James Financial (NYSE: RJF - News). But RJF has no subprime exposure, has recorded 20% higher net income and a 41% revenue increase in Q2 from rising deposits—not loans. Bank revenue should contribute $0.19/share in 2008 profits, up from a previously forecast $0.12/share, where $0.35/share is expected for 2009. Though RJFs $31 shares trade at a relatively expensive 13.5 P/E or 2.4 book value, that's offset by $3/share in cash and equity. That's roughly 11% of total assets vs. big brokers like Merrill Lynch (NYSE: MER - News) and UBS (NYSE: UBS - News) with just 3%. RJF should actually benefit from Wachovia's (NYSE: WB - News) buyout of rival A.G. Edwards (NYSE: AGE - News) as former AGE brokers go looking for better pay packages, taking their commissions with them. Operational streamlining has led RJFs 4,640 financial advisors to generate 40% more revenues/assets per advisor since 2004. Analysts have largely missed the $3.7 billion cap company's potential as the largest independent brokerage house. CEO Thomas James says RJFs not for sale, but bulls say the stock could reach $37-$38, or even $40 if the buyout price is right.
Published by SeekingAlpha

Labels: AGE, Barron's, MER, RJF, UBS, WB

Here are 7 stocks for traders for Monday from TradingMarkets.com:
Archer-Daniels Midland (NYSE:ADM - News) reports earnings on Monday before the bell; watch for $0.59 EPS. ADM's PowerRating is 5.
Cameco (NYSE:CCJ - News) looks to report $0.42 EPS on Monday morning before the bell. CCJ's PowerRating is 6.
Humana (NYSE:HUM - News) is expected to announce $1.39 EPS on Monday morning. HUM's PowerRating is 6.
Monster Worldwide (NasdaqGS:MNST - News) is looking to report $0.34 EPS when the company announces earnings on Monday morning. MNST's PowerRating is 7.
RadioShack (NYSE:RSH - News) should report $0.24 EPS early Monday. RSH's PowerRating is 7.
CF Industries (NYSE:CF - News) and Titanium Metals (NYSE:TIE - News) both report after the bell on Monday. Watch for heightened price and volume. CF's PowerRating is 9 and TIE's PowerRating is 5.
PowerRatings (for Traders) are courtesy of TradingMarkets.com

Labels: ADM, CCJ, CF, Hot Stocks, HUM, MNST, RSH, TIE

A branch of the Bancroft family will vote against News Corp's (Other OTC:NWSAF.PK - News) $5 billion bid for Dow Jones & Co Inc (NYSE:DJ - News), putting pressure on Rupert Murdoch to raise his offer, The Wall Street Journal reported on its Web site on Friday.
Shares of Dow Jones, which publishes The Wall Street Journal, were down 1.06 percent at $53.15 in afternoon trading on the New York Stock Exchange.
The newspaper also reported that the Denver branch of the family, which holds 9.1 percent of Dow Jones's voting stock and supports the News Corp deal, wants Murdoch to raise his $60-per-share bid.
The Denver trust has argued that shareholders who own super-voting Class B shares should get a 10 percent to 20 percent premium.
News Corp has no intention of raising its bid, the newspaper reported.

Labels: DJ, NWSAF.PK, Rupert Murdoch, Wall Street Journal

Here are 7 options to watch for today. This list comes directly from the TradingMarkets Options Indicators page. The list is created using OptionVue options analysis software.
Most Underpriced Calls: These are the most under priced calls of all stocks in our database. While the Equities Explosion List finds groups of calls for individual equities that are under priced, this list finds the most under priced individual calls. Thus, the options listed here will tend to be more severely under priced.
Pozen Inc. Sep 22.5 Calls (NasdaqGM:POZN - News). POZN's PowerRating is 7.
Most Underpriced Puts: These are the most under priced puts of all stocks in our database. While the Equities Explosion List finds groups of puts for individual equities that are under priced, this list finds the most under priced individual puts. Thus, the options listed here will tend to be more severely under priced.
Frontline Ltd. Aug 50 Puts (NYSE:FRO - News). FRO's PowerRating is 7.
Most Overpriced Calls: These are the most overpriced calls of all stocks in our database. While the Equities Implosion List finds groups of calls for individual equities that are overpriced, this list finds the most overpriced individual calls. Thus, the options listed here will tend to be more severely overpriced.
Baidu.com Aug 210 Calls (NasdaqGS:BIDU - News). BIDU's PowerRating is 6.
Most Overpriced Puts: These are the most overpriced puts of all stocks in our database. While the Equities Implosion List finds groups of puts for individual equities that are overpriced, this list finds the most overpriced individual puts. Thus, the options listed here will tend to be more severely overpriced.
Southern Copper Aug 110 Puts (NYSE:PCU - News). PCU's PowerRating is 5.
Stocks with Abnormal Call Volume: These are stocks which showed unusual call option volume not easily explained by arbitrage operations. The appearance of a stock on the Call Volume Alerts list suggests a possible takeover, extraordinarily good earnings report, or other news which may favorably affect the stock.
Deckers Outdoor Corp. (NasdaqGS:DECK - News). DECK's PowerRating is 7.
Stocks with Abnormal Put Volume: These are stocks which showed unusual put option volume not easily explained by arbitrage operations. The appearance of a stock on the Put Volume Alerts list suggests an extraordinarily negative earnings report, or other news which may negatively affect the stock.
Dow Chemical Co. (NYSE:DOW - News). DOW's PowerRating is 6.
Abnormal Put/Call $ Volume: These stocks have the highest dollar put volume in relation to their call volume. These high ratios are indicative of extreme bearish sentiment in the underlying stock.
Whole Foods Market Inc. (NasdaqGS:WFMI - News). WFMI's PowerRating is 5.
PowerRatings are courtesy of TradingMarkets.com

Labels: BIDU, DECK, DOW, FRO, Hot Stock Options, PCU, POZN, WFMI