Daily Markets - Safeway Misses, Cuts Guidance

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• Safeway Misses, Cuts Guidance
• Plexus Beats In Q3
• Must-Read Bloomberg Article On Why Long Term Investors In Commodity ETFs Lose Money
• Fifth Third Turns To Profit
• Earnings Preview: McDonald’s
• NY Times Beats Zacks Estimate
• Honda To Roll Out More Hybrids
• TJX’s Marshall Chain In Canada
• Bristol Myers Beats By A Penny
• Initial Jobless Claims Jump Back Up
• AMAT Restructures EES Business
• Embraer Reports Aircraft Deliveries
• Tractor Supply Beats
• Caterpillar Surpasses, Ups Guidance
• Nokia Q2 Earnings Meets
• Existing Home Sales Fall 5.1%
• After Goldman, Who’s Next In The SEC’s Scope?
• Gentiva Reports Preliminary Results
• Pepco Redeems $194M Senior Notes
• Total System Beats, Top Line Grows
• MarkWest Upgraded To Outperform
• Earnings Preview: Amazon
• AMB Reports In Line
• The Investor’s Scenario Surfer: Part One — Why Long-Term Timing Beats Rebalancing
• Markets In Everything: The Pedal Pub
• Ensco Tops Amid Macondo Crisis
• Cintas Tops Ests Amid Job Weakness
• Swiss Franc: Under Pressure
• Australian Dollar: The Downside Prevails
• Canadian Dollar: Under Pressure
• Japanese Yen: Caution
• British Pound: Under Pressure
• Euro: The Downside Prevails
• 3M Beats, Boosts Expectations
• Edwards Beats On Strong Valve Sales
• The Double-Dip Recession: Four Reasons To Put This Talk To Bed
• Affymetrix Posts Higher Loss
• UPS Beats, Raises Outlook
• Median Home Price Reaches 20-Month High
• Is It Time To Hang-Up On AT&T?

Safeway Misses, Cuts Guidance Posted: 22 Jul 2010 12:00 PM PDT Safeway Inc. (NYSE:SWY) reported second quarter fiscal 2010 earnings per share of 37 cents, missing the Zacks Consensus Estimate by a penny. The company had reported an adjusted EPS of 57 cents in the year-ago quarter. However, the second quarter of 2009 included a tax resolution benefit of 14 cents. The company reported sales of $9.5 billion, marginally exceeding the Zacks Consensus Estimate of $9.48 billion, though unchanged from the year-ago period. The effect of a higher Canadian exchange … [visit site to read more]

Plexus Beats In Q3 Posted: 22 Jul 2010 12:00 PM PDT Plexus Corp. (NASDAQ:PLXS) reported third quarter 2010 earnings of 59 cents per share, beating the Zacks Consensus Estimate of 57 cents per share.   Operating Performance   Earnings per share climbed 156.5% from last year’s 23 cents. Sequentially, earnings per share escalated 16%. Earnings per share came in line with management's guidance of 54 cents to 60 cents per share. Earnings per share excluded restructuring charges but included 6 cents per share in stock-based compensation … [visit site to read more]

Must-Read Bloomberg Article On Why Long Term Investors In Commodity ETFs Lose Money Posted: 22 Jul 2010 11:50 AM PDT Bloomberg published a critical report for anyone who has ever purchased a commodity ETF - especially the USO (USO) (Crude Oil) and UNG (UNG) (Natural Gas). The article defines contango, shares real (shocking) experiences, and explains why these funds are not ideal for long-term investing due to the roll-over effect of commodity futures. The article - a MUST read - is entitled: “ETFs Imperil Investors When Contango Conspires with Pre-Rolling.” I wanted to highlight a few of … [visit site to read more]

Fifth Third Turns To Profit Posted: 22 Jul 2010 11:45 AM PDT Fifth Third Bancorp (NASDAQ:FITB) has turned to profitability in the second quarter of 2010 after reporting losses in the last three quarters. The company reported a net income of $130 million or 16 cents per share, well ahead of the Zacks Consensus Estimate of 2 cents. Results also compare favorably with a loss of $72 million or 9 cents per share in the prior quarter. However, in the prior-year quarter, Fifth Third reported a net income of $856 million or $1.15 per share, as it benefited from an … [visit site to read more]

Earnings Preview: McDonald’s Posted: 22 Jul 2010 11:45 AM PDT A leading fast food chain company, McDonald's Corp. (NYSE:MCD) is slated to release its second-quarter 2010 results on Friday, July 23. The current Zacks Consensus Estimate for the second quarter is $1.12 per share, representing an annualized growth of 15.4%.     With respect to earnings surprises, over the trailing four quarters, McDonald's has outperformed the Zacks Consensus Estimate for all the four quarters in a short range of positive 0.98% to 7.29%. The average earnings … [visit site to read more]

NY Times Beats Zacks Estimate Posted: 22 Jul 2010 11:30 AM PDT The New York Times Company (NYSE:NYT) recently posted better-than-expected second-quarter 2010 results that topped Zacks’ expectations. The quarterly earnings of 18 cents a share surpassed the Zacks Consensus Estimate of 14 cents, and rose more than twofold from 8 cents delivered in the prior-year quarter. On a reported basis, including one-time items, quarterly earnings came in at 21 cents, down 22.2% from 27 cents posted in the year-ago quarter. The New York Times witnessed positive momentum … [visit site to read more]

Honda To Roll Out More Hybrids Posted: 22 Jul 2010 11:30 AM PDT Honda Motor Co. (NYSE:HMC) has provided an update on its strategy to focus on its green-car business. Takanobu Ito, the chief executive officer and president of the company, revealed that Honda will launch plug-in hybrid and electric vehicles based on new technology, both in Japan and the U.S., in 2012.   The news follows close on the heels of Honda's announcement to consolidate its product line-up in Japan by discontinuing some models in the country. The automaker has already stopped … [visit site to read more]

TJX’s Marshall Chain In Canada Posted: 22 Jul 2010 11:15 AM PDT Canadians get yet another boulevard to great brands at discounted price as spring 2011 will unveil the Marshall chain collection with the planned roll out of 6 stores at the onset. Marshall is the subsidiary of The TJX Companies, Inc. (NYSE:TJX), the largest off-price apparel and home fashions retailer in both the United States and the world.   The company marks the fourth off-price retail division of TJX with other banners like Winners store, Home Sense and Stylesense. Although TJX did not … [visit site to read more]

Bristol Myers Beats By A Penny Posted: 22 Jul 2010 11:15 AM PDT Bristol Myers Squibb Company's (NYSE:BMY) second quarter 2010 earnings (excluding special items) of 54 cents per share surpassed the Zacks Consensus Estimate by a penny. The company had earned 48 cents per share in the year-ago quarter. On a reported basis, Bristol Myers' earnings in the reported quarter climbed 20% year-over-year to 53 cents per share. The rise was attributable to cost controls, lower taxes and strong sales of its lead product Plavix and therapies indicated for HIV and … [visit site to read more]

Initial Jobless Claims Jump Back Up Posted: 22 Jul 2010 11:05 AM PDT Initial Claims for Unemployment Insurance jumped to 464,000, an increase of 37,000. This pretty much confirms that what we suspected that week was true: last week's big drop was a fluke due to seasonal adjustment issues surrounding normal auto plant summer shut downs that didn't happen. It is for exactly these sorts of reasons why it makes sense to focus on the four-week moving average that smooths out some of the noise and volatility in the weekly numbers. The four-week average rose by … [visit site to read more]

AMAT Restructures EES Business Posted: 22 Jul 2010 11:05 AM PDT Applied Materials (NASDAQ:AMAT) recently announced that it plans to restructure its energy and environmental solutions (EES) business, which primarily consists of the solar product line, with a view to taking the unit to profitability by 2011. The world's biggest maker of chip equipment said that the restructuring would cost up to $425 million (charge to be taken in the third quarter) and eliminate 400 to 500 jobs. The company also said that it would discontinue its SunFab product line, which … [visit site to read more]

Embraer Reports Aircraft Deliveries Posted: 22 Jul 2010 10:50 AM PDT Empresa Brasileira de Aeronautica S.A. - Embraer (NYSE:ERJ) recently announced its aircraft deliveries for the second quarter of fiscal 2010. Embraer delivered a total of 69 aircraft, including 29 commercial jets, and 40 executive jets, representing an increase from 41 deliveries in the previous quarter and 54 deliveries in the second quarter of 2009. Embraer also recorded a decrease in the firm order backlog, from $16.0 billion in the previous quarter to $15.2 billion in the current quarter. … [visit site to read more]

Tractor Supply Beats Posted: 22 Jul 2010 10:35 AM PDT Tractor Supply Co. (NASDAQ:TSCO), a leading retail farm and ranch store brand, recorded another quarter of growth. Earnings per share in the second quarter of fiscal 2010 came in at $2.05, which inched past the Zacks Consensus Estimate of $2.03 as well as the prior-year quarter earnings of $1.50. Results improved on the heels of good inventory and markdown management. Strong performance in consumable, usable and edible categories − for instance, pet food and animal feed − acted as a catalyst … [visit site to read more]

Caterpillar Surpasses, Ups Guidance Posted: 22 Jul 2010 10:35 AM PDT On a sequential basis, Caterpillar Inc.'s (NYSE:CAT) EPS more than doubled to $1.09 in the second quarter ended June 30, 2010 from 50 cents in the first quarter, marking one of the most stellar increases in the company's history. The company outstripped the Zacks Consensus estimate by 24 cents and was up 82% from 60 cents in the year-ago period. The outperformance was driven by improved demand across all regions, particularly in developing economies. Revenues in the quarter were $10.4 … [visit site to read more]

Nokia Q2 Earnings Meets Posted: 22 Jul 2010 10:20 AM PDT Nokia Corp. (NYSE:NOK), the largest mobile phone manufacturer of the world, reported second quarter 2010 financial results. Net revenue was approximately $12,806 million, up 1% year-over-year and above the Zacks Consensus Estimate of $12,633 million. This was primarily due to the increase in the Mobile Phones business, aided by an improving line-up of affordable models. Net income was approximately $517 million or 8 cents per share compared with a net income of $712.6 million or 20 cents per … [visit site to read more]

Existing Home Sales Fall 5.1% Posted: 22 Jul 2010 10:20 AM PDT Existing Home Sales fell 5.1% to an annual rate of 5.37 million in June from a rate of 5.66 million in May, although that was 9.8% above the 4.89 million annual rate a year ago. The rate was, however, well above the 5.09 million rate that was expected by the consensus of economists. However, existing home sales are recorded when the sale is closed. While to get the homebuyer tax credit of up to $8,000 the contract had to be signed by the end of April, people had until the end of June to close … [visit site to read more]

After Goldman, Who’s Next In The SEC’s Scope? Posted: 22 Jul 2010 10:15 AM PDT One would think the SEC's settlement with Goldman Sachs (NYSE:GS) was just the break we needed in the logjam to finally get some real truth and transparency into Wall Street business practices. Recall that the Goldman CDO Abacus represented a mere .2 of the total CDO market from 2006-2008. There must be many more fish in that tank just waiting to get caught by the SEC. American taxpayers deserve nothing less than a full and total accounting and adjudication of the travesty and … [visit site to read more]

Gentiva Reports Preliminary Results Posted: 22 Jul 2010 09:50 AM PDT On Tuesday, Gentiva Health Services Inc. (NASDAQ:GTIV) released its preliminary operating results for the second quarter of 2010. The final second quarter results are expected on July 29, 2010. Gentiva has reiterated its fiscal 2010 outlook for adjusted income from continuing operations and reduced the revenue guidance for fiscal 2010.   Second quarter of 2010   Gentiva anticipates total revenues to climb 4% to reach approximately $297 million, compared with $284.8 million over the year … [visit site to read more]

Pepco Redeems $194M Senior Notes Posted: 22 Jul 2010 09:30 AM PDT Pepco Holding Inc. (NYSE:POM) bought back $194M worth of senior notes, which were tendered on or before the expiration of the tender offer. The notes, which were tendered and bought back, comprised $128.9 million of 6.125% senior notes due in 2017 and $65.1 million of 7.45% senior notes due in 2032.   Pepco had fixed July 1, 2010, as an early tender date for the notes. The 6.125% notes and 7.45% notes, tendered before July 1, received $1,125 and $1,200 per $1000 in principal amount, … [visit site to read more]

Total System Beats, Top Line Grows Posted: 22 Jul 2010 09:20 AM PDT On July 21, Total System Services Inc. (NYSE:TSS) reported a second quarter operating net income of $49.6 million or 25 cents per share as opposed to $52.3 million or 27 cents per share in the year-ago quarter, a decline of 5.2%. The earnings were well ahead of the Zacks Consensus Estimate of 23 cents per share. The higher cost of services and selling, general and administrative (SG&A) expenses led to the decline in earnings.   Total revenue for the reported quarter was $433.7 million, … [visit site to read more]

MarkWest Upgraded To Outperform Posted: 22 Jul 2010 09:20 AM PDT We have upgraded pipeline operator MarkWest Energy Partners LP (NYSE:MWE) to Outperform from Neutral, reflecting its promising future prospects.   Denver, Colorado-based MarkWest Energy is a master limited partnership (”MLP”) engaged in the gathering, processing and transmission of natural gas, transportation, fractionation and storage of natural gas liquids (NGLs), and the gathering and transportation of crude oil.   MarkWest owns a high-quality and diverse portfolio of midstream … [visit site to read more]

Earnings Preview: Amazon Posted: 22 Jul 2010 09:05 AM PDT Amazon.com (NASDAQ:AMZN) will report its second quarter results after the bell today. The Zacks Consensus estimate is currently at 56 cents per share, although analyst estimates vary between 65 cents and 91 cents. The wide variation is clearly related to revenue, which varies between $6.11 billion and $6.87 billion (Zacks Consensus $6.56 billion). We have identified the pros and cons that could impact results this quarter. Pros- Analysts are by and large bullish about growth in the e-commerce … [visit site to read more]

AMB Reports In Line Posted: 22 Jul 2010 09:05 AM PDT AMB Property Corp. (NYSE:AMB), a leading real estate investment trust (REIT), reported second quarter 2010 recurring fund from operations (FFO) of 30 cents per share compared with 37 cents in the year-earlier quarter. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and other non-cash expenses to net income. The second quarter 2010 FFO was in line with the Zacks Consensus Estimate.   During the quarter, AMB commenced leases … [visit site to read more]

The Investor’s Scenario Surfer: Part One — Why Long-Term Timing Beats Rebalancing Posted: 22 Jul 2010 09:03 AM PDT By Rob Bennett The Investor's Scenario Surfer is a portfolio allocation calculator that permits investors to compare the results of three rebalancing strategies (80 percent stocks, 50 percent stocks, and 20 percent stocks) with a Valuation-Informed Indexing strategy (changing your stock allocation in response to big valuation shifts) over the course of a randomly chosen 30-year return sequence consistent with those we have seen in the historical record. Valuation-Informed Indexing strategies … [visit site to read more]

Markets In Everything: The Pedal Pub Posted: 22 Jul 2010 08:50 AM PDT … [visit site to read more]

Ensco Tops Amid Macondo Crisis Posted: 22 Jul 2010 08:45 AM PDT The ongoing uncertainty driven by the Macondo disaster in the Gulf of Mexico (GoM) has hit offshore drillers hard. However, Ensco plc (NYSE:ESV) barely topped the Zacks Consensus Estimate on the back of its greater international exposure. On a year-over-year basis, Ensco's earnings were drastically lower due to a weak jackup contribution and higher operating expenses.   Ensco's earnings from continuing operations came in at 82 cents per share, compared with the Zacks Consensus … [visit site to read more]

Cintas Tops Ests Amid Job Weakness Posted: 22 Jul 2010 08:30 AM PDT Cintas Corporation (NASDAQ:CTAS) delivered adjusted earnings per share (EPS) of 35 cents in its fourth quarter ended May 31, 2010, down 8% from 38 cents in the year-ago period. However, the company beat the Zacks Consensus Estimate by 2 cents. The fourth-quarter EPS excluded an after-tax benefit of 1 cent due to change in estimate to last year's restructuring charge. The year-earlier quarter's EPS excluded one-time items amounting to 35 cents per share.   On a positive note, revenues went … [visit site to read more]

Swiss Franc: Under Pressure Posted: 22 Jul 2010 08:18 AM PDT Update on supports and resistances. … [visit site to read more]

Australian Dollar: The Downside Prevails Posted: 22 Jul 2010 08:18 AM PDT Update on supports and resistances. … [visit site to read more]

Canadian Dollar: Under Pressure Posted: 22 Jul 2010 08:18 AM PDT Update on supports and resistances. … [visit site to read more]

Japanese Yen: Caution Posted: 22 Jul 2010 08:18 AM PDT Update on supports and resistances. … [visit site to read more]

British Pound: Under Pressure Posted: 22 Jul 2010 08:18 AM PDT Update on supports and resistances. … [visit site to read more]

Euro: The Downside Prevails Posted: 22 Jul 2010 08:18 AM PDT Update on supports and resistances. … [visit site to read more]

3M Beats, Boosts Expectations Posted: 22 Jul 2010 08:15 AM PDT 3M Co. (NYSE:MMM) released its earnings results for second quarter of 2010 before the opening bell today, reporting earnings per share of $1.54, beating the Zacks Consensus Estimate of $1.48. With a 28.3% increase in its earnings, the company's sales improved in all its business and geographic regions. The company continues to deliver sustainable increases in sales, earnings and free cash flow. Revenue Total revenue for the quarter increased by 17.7% year over year to $6.7 billion. The … [visit site to read more]

Edwards Beats On Strong Valve Sales Posted: 22 Jul 2010 08:15 AM PDT Edwards Lifesciences Corporation (NYSE:EW) has reported earnings per share (EPS) of 48 cents in second quarter fiscal 2010 beating both the Zacks Consensus Estimate of 44 cents and the year-ago quarter's earnings of 41 cents. However, after adjusting for certain items, the company's EPS came in at 46 cents compared with 40 cents in the second quarter of 2009. Edwards reported revenues of $365.2 million, up 8.9% from the year-ago period. However, the growth rate would be 14.8% excluding the … [visit site to read more]

The Double-Dip Recession: Four Reasons To Put This Talk To Bed Posted: 22 Jul 2010 08:06 AM PDT Thursday, July 22, 2010: Issue #1307 The dreaded double-dip recession chatter is getting louder by the minute. And it's clearly scaring the dickens out of most Americans. How else do you interpret the five-fold increase in the number of Google searches for "double-dip recession" since May? My advice? Get some earplugs. Seriously. I'll concede that the wounds from the Great Recession might still be raw. And given the impact of the crash on investment portfolios, many retirement plans … [visit site to read more]

Affymetrix Posts Higher Loss Posted: 22 Jul 2010 08:05 AM PDT Genetic product maker Affymetrix Inc. (NASDAQ:AFFX) announced second-quarter 2010 earnings after the closing bell on July 21, 2010, with an adjusted net loss per share of 10 cents exceeding the Zacks Consensus Estimate of a loss of 7 cents. The adjusted loss excludes a $17 million (or 2 cents a share) one-time gain on repurchase of convertible notes.   The California-based company posted a net loss of $5.5 million (or 8 cents a share) as against a net income of $7.3 million (or 11 cents a … [visit site to read more]

UPS Beats, Raises Outlook Posted: 22 Jul 2010 08:05 AM PDT On July 22, United Parcel Services (NYSE:UPS), the world’s largest package delivery company, declared its adjusted second-quarter 2010 earnings of 84 cents per share, which surpassed the Zacks Consensus Estimate of 77 cents. Earnings per share shot up 71.4% year over year from 49 cents in the year-ago quarter. Earnings were driven by higher package volume as well as strong revenue growth. On a reported basis, earnings saw a whopping increase of 90.9% year over year in the second quarter. In the … [visit site to read more]

Median Home Price Reaches 20-Month High Posted: 22 Jul 2010 08:00 AM PDT One bright spot from today’s housing report from the National Association of Realtors is that the median home price in June reached a 20-month high of $183,700, the highest median home price since October of 2008 (see chart above).   Also, existing-home sales in June were 9.8% above last year, which marks the 13th consecutive month of year-to-year sales gains, following at least 30 consecutive months of year-to-year declines.  … [visit site to read more]

Is It Time To Hang-Up On AT&T? Posted: 22 Jul 2010 07:45 AM PDT AT&T (NYSE:T) and its shareholders have it pretty rough these days. With shares down about 12% since January, the future does not look bright. The company did enjoy acquisition-fueled growth over much of the past decade. But revenue fell last year and it expects only flat sales of $123 billion for 2010. Added to its list of woes, AT&T won't be able to count on its exclusive contract with Apple (NASDAQ:AAPL) for much longer. Since its debut in 2007, consumers who buy the iPhone have had to … [visit site to read more]

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