DailyMarkets.com - Southwest Upped To Neutral

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• Southwest Upped To Neutral
• Analyst Interviews: Chemical Industry Stock Outlook
• Diamond Orders For Fourth Rig
• Marathon Oil To Take Over Paloma
• Mortgage Rates Fall To Record Lows This Week
• Why Canada’s Athabasca Basin Uranium Explorers May Soar On Foreign Investment?
• Nexen Halts Operations At Kakuna
• Nelnet Profit Falls, But Buys Back
• April Comps Slacken At McDonald’s
• Hot Option Plays: Tricky Times
• Heller: “EU Could Get Big…it’s Tough Out There”
• Stratasys Reports In-Line 1Q
• Windstream Reports Below Par
• Qualcomm Downgraded To Neutral
• Kohl’s Beats, Re-Affirms 2012 View
• Medicis Outshines In 1Q
• Guidance Overshadows Cisco’s Q3
• Sitoa Builds The Top-Line Moves Toward Cash Flow Breakeven
• General Dynamics Awarded JAB Deal
• Oil Steady Above $97
• Beacon Roofing Shines In 2Q
• Telus Beats By A Penny, Guides In-Line
• Glaxo Continues To Chase HGSI
• Earnings Scorecard: Clorox
• JPMorgan Launches Prepaid Card
• Momentum Stock: Discover Financial Services
• Cousins Properties Marginally Beats
• ATVI Beats, But Income Falls Y/Y
• Mixed Quarter From Teva
• MEMC Reports Loss, Guides Firm
• Headwinds Fail To Deter News Corp.
• Stocks Open Higher, Cisco Slumps On Profit Forecast
• Despite Weak Chinese Data, Dollar And Yen Sold-off In Favor Of Aussie
• Euro Steadies But Still Below $1.30

Southwest Upped To Neutral Posted: 10 May 2012 11:43 AM PDT We recently upgraded our long-term recommendation on Southwest Airlines Co. (NYSE:LUV) to Neutral from Underperform following better-than-expected first quarter earnings results and strong growth opportunities. The company reported lower year-over-year earnings in the first quarter but outpaced the Zacks Consensus Estimate. Despite surging fuel prices, the better-than-expected performance in the quarter was credited to robust revenue growth driven by fare hikes, cost-cutting measures, network … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Analyst Interviews: Chemical Industry Stock Outlook Posted: 10 May 2012 11:28 AM PDT Although March quarter results show continued signs of improvement in the U.S., a soft operating environment in Europe continues to weigh on the companies in the chemicals space. High input costs, weaknesses across some key end-markets (such as construction and electronics) and the European sovereign debt crisis remain the major impediments to growth. While the U.S. economy has still not reached a robust growth phase and Western Europe remains crippled with debt issues, the chemical industry … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Diamond Orders For Fourth Rig Posted: 10 May 2012 11:28 AM PDT Diamond Offshore Drilling Inc. (NYSE:DO) has awarded Hyundai Heavy Industries Co. Ltd. the construction contract for its fourth ultra-deepwater drillship – Ocean BlackLion − for a total cost of $655 million. This new unit will be equipped with dynamic-positioning, dual activity capability, a maximum hook-load capacity of 1,250 tons capable of working at a depth of up to 12,000 feet under water. However, the drillship is expected to operate at approximately 10,000 feet under water initially and … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Marathon Oil To Take Over Paloma Posted: 10 May 2012 11:28 AM PDT Marathon Oil Corporation (NYSE:MRO) has agreed to acquire a private energy firm – Paloma Partners II LCC – for $750 million in cash. Houston, Texas based Paloma possesses about 17,000 acres of land, mostly in Karnes and Live Oak counties in the Eagle Ford shale play. As of April 1, production from the acreage was about 7,000 barrels of oil equivalent per day. The deal, pending customary approvals and conditions, is expected to be closed in the third quarter of 2012. Located in South Texas, … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Mortgage Rates Fall To Record Lows This Week Posted: 10 May 2012 11:25 AM PDT Mortgage rates fell to fresh lows this week, according to data released today by mortgage-buyer Freddie Mac, with the 30-year rate falling to 3.83% (see chart above) and the 15-year rate dropping to 3.05%.  The 30-year (15-year) rates are the lowest since at least 1971 (1991) when Freddie Mac’s records start. … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Why Canada’s Athabasca Basin Uranium Explorers May Soar On Foreign Investment? Posted: 10 May 2012 11:08 AM PDT Canadian producers can now compete with Kazakhstan, Australia and Russia to sell uranium to China. Canada produces about 20% of the world's uranium and exports over 80% of annual production. The fast growing nuclear industry has never been open to China and will create a boom in the Athabasca Basin for uranium explorers. This deal will allow Cameco, the largest publicly traded uranium company to deliver 52 million pounds of uranium to China by 2025. The contract is worth about $2.5 … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Nexen Halts Operations At Kakuna Posted: 10 May 2012 11:07 AM PDT Calgary-based oil and gas producer Nexen Inc. (NYSE:NXY) has abandoned drilling operations in the Kakuna sub-salt exploration well situated on Green Canyon block 504 in the deepwater Gulf of Mexico. The company failed to excavate commercial hydrocarbons from the Kakuna well. The Kakuna well was drilled by Ensco Plc.'s (NYSE:ESV) Ensco 8502 semi-submersible to a depth of 30,300 feet. The operations cost about $120 million or $80 million after tax to Nexen. The prospect was among the first to be … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Nelnet Profit Falls, But Buys Back Posted: 10 May 2012 10:48 AM PDT Student lender Nelnet Inc. (NYSE:NNI) reported first-quarter 2012 earnings per share of $1.11, slightly missing the prior-year quarter's earnings of $1.12 per share. While the company experienced a growth in its top line, a rise in expenses marred that benefit. However, it is encouraging to note that the company has announced a new share buyback authorization for repurchase of up to 5 million shares over the next three years. On a GAAP basis, Nelnet's first-quarter net income stood at $43.1 … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

April Comps Slacken At McDonald’s Posted: 10 May 2012 10:48 AM PDT McDonald's Corp. (MCD )  witnessed a 3.3% upside in global comparable sales (comps) for the month of April that lagged the year-ago level of 6% as well as the company's expectation of 4%. The fast-food restaurant operator witnessed a relatively downward movement across all three geographical segments namely the United States, the U.K. and APMEA on a yearly basis. While the United States and Europe gave a similar performance, the Asia/Pacific, Middle East and Africa (APMEA) region was … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Hot Option Plays: Tricky Times Posted: 10 May 2012 10:43 AM PDT Cusick’s Corner 05-10-2012 The breaking of mid-term support earlier in the week was viewed negatively but as the week has progressed, we have seen that the Bears, while grasping at the horns, have not been able to wrestle the Bulls down (ok, enough with the pathetic analogies). So with the Dollar flat, UUP, Equities in the green, SPY, and Bonds down, TLT, I am expecting a potentially tight-ranged, choppy market into the After Hours. At some point soon the market and traders might want to see a … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Heller: “EU Could Get Big…it’s Tough Out There” Posted: 10 May 2012 10:40 AM PDT 05/10/12 OnPoint Executions’ Bobby Heller talks about fundamentals and technicals affecting global equity markets. Euro zone concerns following the elections are also factored into the … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Stratasys Reports In-Line 1Q Posted: 10 May 2012 10:33 AM PDT Stratasys Inc. (NASDAQ:SSYS) reported earnings per share of 26 cents in the first quarter of 2012, beating the Zacks Consensus Estimate. Revenue Stratasys reported total revenue of $45.0 million in the first quarter of 2012, up 30.0% from $34.6 million in the year-ago quarter. The company saw substantial revenue growth, with revenues from the consumable segment expanding 30%. The company also witnessed 61.0% year-over-year sales growth from the Fortus 3D production system. The company recorded a … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Windstream Reports Below Par Posted: 10 May 2012 10:33 AM PDT Windstream Corporation (NYSE:WIN) has reported first quarter 2012 adjusted earnings per share of 13 cents, missing the Zacks Consensus Estimate of 16 cents. Adjusted earnings for the quarter shot up 116.7% from the year-ago earnings of 6 cents. Adjusted earnings exclude $14 million in merger and integration expenses and a gain of approximately $1 million related to the early debt retirement. Including these costs, the company reported earnings per share of 11 cents, up 83% year-over-year. Pro … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Qualcomm Downgraded To Neutral Posted: 10 May 2012 10:33 AM PDT We downgrade our recommendation on Qualcomm Inc. (NASDAQ:QCOM) to Neutral based on two reasons: (1) high-level of current valuation and (2) 28 nanometer chipset supply shortage problem, which the company will face for the rest of fiscal 2012. Although we believe the chipset supply problem with the Taiwanese vendor is a temporary phenomenon, further delay to resolve this issue may significantly affect Qualcomm's revenue in fiscal 2013. Meanwhile, the stock price has soared over 36% in the last year … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Kohl’s Beats, Re-Affirms 2012 View Posted: 10 May 2012 10:13 AM PDT Kohl's Corporation (NYSE:KSS) has started the year 2012 with operating earnings of 63 cents in first quarter, beating the Zacks Consensus Estimate by 3 cents driven by top-line growth. The earnings, however, missed the prior-year quarter's earnings by 6 cents due to lower pricing. Sales and Margins Net sales climbed up 1.9% to $4.243 billion in the quarter. However, the results slightly missed the Zacks Consensus Sales Estimate of $4.256 billion. Kohl's same-store sales for the quarter … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Medicis Outshines In 1Q Posted: 10 May 2012 10:13 AM PDT Medicis Pharmaceutical Corp.'s (NYSE:MRX) first quarter 2012 earnings per share (EPS) climbed 9.1% from the prior-year quarter to 60 cents. Earnings were well above management's guidance range of 37 cents to 43 cents per share, and also surpassed the Zacks Consensus Estimate of 42 cents. Higher revenues and a lower share count helped boost earnings. Quarterly revenues went up 22.3% to $201.7 million, above the company's guidance range of $177 million to $188 million and the Zacks Consensus … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Guidance Overshadows Cisco’s Q3 Posted: 10 May 2012 10:13 AM PDT Cisco Systems' (NASDAQ:CSCO) third quarter 2012 earnings (excluding one-time items and including stock based compensation) beat the Zacks Consensus estimate by 5 cents, or 12.7%. Revenue was more or less in line with the consensus. Revenue Revenue of $11.59 billion was flat sequentially, up 6.6% year over year and better than management's expectations of a 5-7% year-over-year increase. Products, which generated 79% of revenue, came in flat sequentially and up 5.0% year over year. Services … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Sitoa Builds The Top-Line Moves Toward Cash Flow Breakeven Posted: 10 May 2012 10:13 AM PDT Sitoa Builds the Top-Line Moves Toward Cash Flow Breakeven Ken Nagy, CFA On May 9, 2012, Sitoa Global Inc. (STOA), an e-commerce facilitator that develops, integrates and hosts B2C (business-to-consumer) social e-commerce sites, reported financial results for its first quarter ended March 31, 2012. Sitoa reported mixed results with year over year first quarter revenues lifting off to $812,530 from $0 in revenues for the first quarter 2011. The jump in revenues was a result of providing … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

General Dynamics Awarded JAB Deal Posted: 10 May 2012 10:13 AM PDT General Dynamics Corporation's (NYSE:GD) subsidiary General Dynamics Land Systems has entered into an agreement, worth $26 million, with the U.S. Army Contracting Command to manufacture two Joint Assault Bridge ("JAB") prototypes. Joint Assault Bridge is a multi-service fully tracked armored engineering system. It is a portable bridge that enables military vehicles to cross gorges in combat. This system offers sufficient protection along with mobility and pace.  At the end of the first … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Oil Steady Above $97 Posted: 10 May 2012 10:00 AM PDT 05/10/12 Front month crudse prices were steady above $97 a barrel following a rise in global … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Beacon Roofing Shines In 2Q Posted: 10 May 2012 09:58 AM PDT Beacon Roofing Supply, Inc. (NASDAQ:BECN) reported second-quarter 2012 earnings of 7 cents per share, easily beating the Zacks Consensus Estimate of a loss of 8 cents. Results improved compared to a loss of 13 cents in the year-ago quarter. Increase in sales and gross margin contributed to the growth. However, the positives were partially offset by higher operating expenses and income tax provision as compared to 2011. Operational Update Total revenues increased 33.4% year over year to $395.2 … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Telus Beats By A Penny, Guides In-Line Posted: 10 May 2012 09:57 AM PDT The second largest Canadian telecommunications company, Telus Corporation (NYSE:TU) reported first quarter 2012 adjusted earnings per ADS of $1.04 (C$1.04 per share) that beat the Zacks Consensus Estimate by a penny. Adjusted earnings increased 7.2% from C$0.97 per share in the year-ago quarter. Adjusted earnings per share excluded an income tax benefit of 3 Canadian cents. Total revenue grew 4% year over year to C$2.63 billion ($2.62 billion), but fell shy of the Zacks Consensus Estimate of $2.68 … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Glaxo Continues To Chase HGSI Posted: 10 May 2012 09:57 AM PDT GlaxoSmithKline (NYSE:GSK) recently announced its intention to commence a tender offer to acquire the outstanding shares of Human Genome Sciences, Inc. (NASDAQ:HGSI) for a cash payment of $13 per share. Glaxo decided that it will not take part in the strategic review being conducted by Human Genome.  We note that the tender offer will remain open for 20 business days after its commencement. According to Glaxo, its offer provides Human Genome shareholders with the option to make their own decision … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Earnings Scorecard: Clorox Posted: 10 May 2012 09:57 AM PDT The Clorox Company (NYSE:CLX), one of the world’s leading manufacturers of consumer products, posted its third-quarter 2012 results on Wednesday, 2nd May. Therefore, the analysts had just over a week to ponder over the results. In the subsequent paragraphs, we will cover the recent earnings announcement, analysts' estimate revisions as well as the Zacks Rank and long-term recommendation on the stock. Earnings Review Clorox posted third-quarter 2012 earnings per share of $1.05 compared with $1.03 … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

JPMorgan Launches Prepaid Card Posted: 10 May 2012 09:38 AM PDT To become a part of the rapidly growing prepaid card business and recoup fee revenue losses (to an extent) due to various financial regulations, JPMorgan Chase & Co. (NYSE:JPM) announced the launch of reloadable card – Chase Liquid. Presently, this prepaid card will be available in about 200 branches of the company on a trial basis and would be launched across its footprint by mid-2012. Customers applying for JPMorgan's prepaid card will be required to pay $4.95 as the monthly fee and … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Momentum Stock: Discover Financial Services Posted: 10 May 2012 09:18 AM PDT Discover Financial Services (DFS) Back in early March, DFS was featured as a momentum stock due to its stellar performance and relatively inexpensive valuation.  An improving economic climate here in the states and increasing transactional volume globally were primary motivators.  Recent developments indicate that those trends may be fading or at least not as apparent as they were in March.  In early May, Five Star Equities noted that credit card spending fell by $5 billion in … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Cousins Properties Marginally Beats Posted: 10 May 2012 09:18 AM PDT Cousins Properties Inc. (NYSE:CUZ), a real estate investment trust (REIT), reported first quarter 2012 FFO (fund from operations) of $13.5 million or 13 cents per share, compared with $8.1 million or 8 cents in the year-earlier quarter. Funds from operations, a widely used metric to gauge the performance of REITs, are obtained after adding depreciation, amortization and other non-cash expenses to net income. The reported FFO for first quarter 2012 marginally beat the Zacks Consensus Estimate by a … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

ATVI Beats, But Income Falls Y/Y Posted: 10 May 2012 08:58 AM PDT Activision Blizzard Inc. (NASDAQ:ATVI) reported fiscal first quarter 2012 non-GAAP earnings (including stock based compensation but excluding one time items) of 5 cents, which handily surpassed the Zacks Consensus Estimate of 1 cent and managements' guidance of 3 cents. However, on a year-over-year basis, the reported earnings declined 58.3% (12 cents) due to lower revenues and higher sales and marketing expenses. Revenues Though non-GAAP revenues (excluding revenues from deferral and related cost … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Mixed Quarter From Teva Posted: 10 May 2012 08:58 AM PDT Teva Pharmaceutical Industries' (NASDAQ:TEVA) first quarter earnings of $1.47 per American Depositary Share (ADS) were 3 cents above the Zacks Consensus Estimate and 41% above the year-ago earnings. First quarter revenues increased 25% to $5.1 billion, missing the Zacks Consensus Estimate of $5.6 billion. The company said that it is working on streamlining some of its commercial arrangements in the U.S., which are expected to benefit the company in the near and mid-term. The company is … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

MEMC Reports Loss, Guides Firm Posted: 10 May 2012 08:38 AM PDT MEMC Electronic Materials Inc. (NYSE:WFR) reported first-quarter 2012 adjusted net loss per share of 26 cents, which missed the Zacks Consensus Estimate of 15 cents loss per share. The ongoing weakness in semiconductor and solar chip demand is taking a toll on the quarter's results. Shares plunged 3.08% after hours. The adjusted figure excludes the impact of direct sales and lease-back from the Solar Energy segment as well as some tax benefits. Revenues On a GAAP basis, MEMC reported … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Headwinds Fail To Deter News Corp. Posted: 10 May 2012 08:18 AM PDT Amidst rumors of business divestment, hullabaloo on the leadership of Rupert Murdoch, and the phone hacking scandal that resulted in the closure of 'The News of the World', News Corporation (NWSA) posted better than-expected third-quarter 2012 financial results, beating the Zacks' expectations on both lines. However, the company came in full support for Rupert Murdoch, rebutted the speculation that it will offload its publishing business, which includes the issues of The Australian and … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Stocks Open Higher, Cisco Slumps On Profit Forecast Posted: 10 May 2012 08:04 AM PDT 05/10/12 The Dow snapped six consecutive session of losses, as initial jobless claims declined and cautious prevailed over Europe’s debt crisis. Cisco shares tumbled over … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Despite Weak Chinese Data, Dollar And Yen Sold-off In Favor Of Aussie Posted: 10 May 2012 07:32 AM PDT Fundamental Headlines - Bernanke Gets 75% Approval from Investors in Global Poll – Bloomberg - Hollande Bond Buyers Bet on Market-Friendly Government – Bloomberg - Jobless Claims Fall, Trade Gap Widens – Reuters - Bernanke: Banking is Stronger, but Lending Still Tight – WSJ - Pressure on the Euro – WSJ European Session Summary With little negative news out of Europe, market participants happily dumped their holdings of the Japanese Yen and the US Dollar in favor of higher yielding … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Euro Steadies But Still Below $1.30 Posted: 10 May 2012 02:00 AM PDT 05/10/12 The euro currency has steadied Thursday afternoon but still remains near multi-month lows against the dollar as political uncertainty in Greece kept investors on … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

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