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IBM, CIEN, BIDU, VMW, ORCL, GS, DELL, EMC, WPRT, TSCO, NTAPJim Cramer said, "The S&P 500 needs to lose some weight." He examined the makeup of the venerable index to explain why the markets are under so much pressure to head lower. The market's biggest problem, the financials, which make up 15% of the S&P's bulging waistline. Cramer said in this regulatory environment, the banks will never catch a break, and that means 15% of the market is constantly under pressure. Also in the house of pain are the tech stocks, which account for nearly 18% of the S&P. Cramer said this group is also under pressure, as seen by Ciena (CIEN), which reported an abysmal quarter. With gasoline headed back to $4 a gallon, Cramer said the consumer discretionary stocks, which account for 10.5% of the S&P, are also dragging on the index. In the areas that matter, such as the industrials and energy, the S&P is under weighted, with just 11% and 13% respectively. Cramer said these porportions just aren't enough to lead the markets higher. Cramer said unfortunately there are only two ways to change the proportions of the S&P pie, and that's for the industrials and energy stocks to head higher, which they're struggling to do, or for the financials and tech to continue to head lower. The latter, said Cramer, will likely be the reality. Cramer spoke with David Demers, CEO of Westport Innovations (WPRT), whose stock is 73% since Cramer first got behind it in January 2010. The company just reported (14c) on lighter-than-expected revenues. Shares of Westport were hammered Wednesday, down 15%. Demers explained that it's been difficult for Westport to project its earnings on a quarter-by-quarter basis, especially given the expiration of a federal tax credit for natural gas trucks. He said the company is taking steps to help alleviate some of those forecasting issues, but in the long term all markets are looking good and Westport expects 30% growth this year. Cramer said that Westport remains a speculative stock in his book, but he's a believer in the company and feels the stocks will see a big pop the moment a natural gas act is passed in Congress. Next Cramer said, now might be the worst time to buy into the seasonally weak technology sector. But Cramer said that doesn't mean there aren't some bright spots that are worth buying on the way down. He said one theme he's heard over and over again on companies' conference calls is "big data," the need to store and analyze huge growing amounts of customer and business data. He said investors might want to look into the obvious players, like Oracle (ORCL) and IBM (IBM), but they should also consider EMC (EMC) -- a leader in scalable network attached storage solutions. EMC also owns 80% of VMware (VMW). Cramer said shares of EMC are getting crushed with the rest of tech, but with shares trading at just 15.6x earnings with a 13% growth rate, EMC is a buy given its best of breed nature. Those looking for a more speculative play might consider NetApp (NTAP), said Cramer. He also gave the nod to Dell (DELL), which is not a pure-play on big data but is making inroads in the space. LIGHTNING ROUND: (Bullish) BIDU; TSCO. (Bearish) GS. Reference Link :theflyonthewall.comNews For CIEN;WPRT;ORCL;IBM;EMC;VMW;NTAP;DELL;BIDU;TSCO;GS From The Last 14 DaysCheck below for free stories on CIEN;WPRT;ORCL;IBM;EMC;VMW;NTAP;DELL;BIDU;TSCO;GS the last two weeks. There are 197 items on the Fly with pertinent information.
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Ciena pullback provides attractive entry point, says CitigroupCitigroup believes the pullback in Ciena shares yesterday provides an attractive entry point and reiterates a Buy rating on the name despite lowering its price target to $30 from $34.50. :theflyonthewall.comBaidu meaningfully undervalued following recent pullback, says Piper JaffrayDell says working on 10-inch tablet productsIn a blog post, Dell says "You may have seen some speculation on when we will introduce a 10-inch tablet based on Android. You may have seen the recent CNET story on the topic. With this post, I'm here to confirm that Dell is indeed working on 10-inch tablet products ? an Android-based tablet for 'prosumers,' and a Windows 7-based tablet for enterprise customers, due out later this year." The Streak 10 Pro will be launched in China later this summer, and Dell will evaluate other regions and segments in 2H11. Reference Link :theflyonthewall.comCIEN, WPRT, DELL, EMC, GS, VMW, TSCO, ORCL, IBM, NTAP, BIDU
Ciena downgraded to Sector Perform from Outperform at Pacific Crest
Unisys or Quantum may make strategic sense for Dell, says AurigaAuriga commented on speculation that Dell (DELL) may be a potential suitor for Brocade (BRCD) and said a deal may make some sense but two companies that would be easier to integrate and manage would be Unisys (UIS) and Quantum (QTM). The analyst said both have strategic benefits and have accretion potential. :theflyonthewall.com
More Republicans ready to allow U.S. to default, Reuters reportsMore Republicans are ready to allow the U.S. government to default on its debt for a brief period of time, according to Reuters. Such a "technical default" would be manageable, and might be worthwhile if it forces the White House to accept spending cuts, more GOP leaders are saying. Reference Link :theflyonthewall.comFitch to cut U.S. sovereign rating if government defaults, Reuters reportsCredit rating agency Fitch warned that it would cut America's sovereign rating to "restricted default" if the government doesn't pay its debts due to a failure to increase its debt ceiling, according to Reuters. In such a case, it's "unlikely" that the U.S. would retain its AAA credit rating, added Fitch ,which doesn't expect the U.S. to default. Reference Link :theflyonthewall.comActive equity option families in first 10-minutesActive equity option families in first 10-minutes of trading according to Track Data are: AAPL CY BIDU BAC. :theflyonthewall.comStock futures improved slightly during the pre-market trading session, but not enough to allow the market to open in positive territory. The market is still digesting yesterday's comments from Fed Chairman Bernanke, who suggested that there will be no additional monetary stimulus programs following the conclusion of QE2. There has been little information to help guide investors so far this morning as the economic calendar has been quiet. Investors will be looking to the release of the DOE inventory data, due out at 10:30 am ET. :theflyonthewall.com
Ciena anticipating progress in 2H; "incredibly well-positioned for 2012"These comments are from the Q2 Ciena earnings conference call. :theflyonthewall.comMeredith Whitney says banks on organic growth basis nowMeredith Whitney: I don't see bank stocks going anywhereComments made on CNBC. :theflyonthewall.comWestport Innovations falls, support is at $22.12, then the pivot low at $21.29Ciena sees service providers spending on next generation trendsThese comments are from the Q2 Ciena Corporation Earnings Conference Call. :theflyonthewall.comCiena investments have affected margins, other metricsThese comments are from the Q2 Ciena Corporation Earnings Conference Call. :theflyonthewall.comCiena has been investing heavily in new platformsThese comments are from the Q2 Ciena earnings conference call. :theflyonthewall.comNetApp breaks its 50-day moving average, support below is at $49.07Ciena is testing its 200-day moving average, support below is at $20.25IBM management to meet with Deutsche BankMeeting to be held in Montreal on June 8 hosted by Deutsche Bank. :theflyonthewall.comWestport expects to continue revenue growth of approximately 30% yoy for CY11Emerging nations likely set to back Lagarde for IMF role, NY Times reportsMajor emerging nations appear ready to support the candidacy of French Finance Minister Christine Lagarde for the top position at the IMF, according to The New York Times. Reference Link :theflyonthewall.comCiena sees Q3 revenue $435M-$455M vs. consensus $456.42MBernanke says U.S. economic deceleration temporary, Washington Post reportsThe current soft patch in the U.S. economy has been caused by temporary factors, and growth will accelerate later in the year, Fed Chairman Ben Bernanke said late yesterday, according to The Washington Post. Bernanke suggested that changes in Fed policy wouldn't solve the problems currently affecting the U.S. economy, the newspaper added. Reference Link :theflyonthewall.comWall Street firms considering new round of layoffs, NY Post reportsBarclays (BCS), Goldman Sachs (GS), Bank of America (BAC), JPMorgan Chase (JPM) and Morgan Stanley (MS) are among the banks considering staff cuts, the New York Post reports. The job cuts, which could be in the thousands, are expected to be concentrated in equities trading and investment banking, the Post added. Reference Link :theflyonthewall.comCiena June puts more active than calls into release of Q2 results and outlook Microsoft leads notables supporting AT&T, T-Mobile merger, Seattle Times reportsAvaya plans to file for $1B IPO as early as this week, WSJ reportsAvaya is planning to file for a $1B IPO, people familiar with the matter tell the Wall Street Journal. The deal could value the maker of phones and telecommunications gear, at $5B or more. The IPO may come as early as this week. Avaya was taken private in 2007 by Silver Lake and TPG Capital. Reference Link :theflyonthewall.comFed may back three percentage point capital surcharge for banks, Bloomberg saysThe Federal Reserve reportedly supported a proposal at the Basel Committee on Banking Supervision that calls for a maximum capital surcharge of three percentage points on the largest banks, according to Bloomberg. Reference Link :theflyonthewall.comDodd-Frank delays raise concerns about derivatives market, WSJ reportsOn July 16, over 100 new derivatives requirements in the Dodd-Franks law take effect but delays by regulators has raised concerns of disruptions in the $583T derivatives market that could also results in a number of lawsuits, reports the Wall Street Journal. Reference Link :theflyonthewall.comGreece sells telecom company stake to Deutsche Telekom, NY Times reportsGreece sold a 10% stake in a state-owned telecom company to Deutsche Telekom (DTEGY) for $585M, according to The New York Times. The country, which has a total debt of EUR330B, has marketable assets of EUR300B and should be made to pay its debts, said Lorenzo Bini Smaghi, a member of the executive board of the European Central Bank. Reference Link :theflyonthewall.comCongressman Cantor "cautiously optimistic" on deficit deal, Politico reportsCongressman Eric Cantor, a Virginia Republican and the House Majority Leader, said he's "cautiously optimistic" that the GOP will be able to reach a deficit-cutting deal with the Obama administration, according to Politico. Reference Link :theflyonthewall.com
Stocks on Wall Street traded lower at mid-day but are close to breaking through to positive territory. The market began the week after a wide sell off on Friday following a poor jobs report. The hangover lasted into the open, helped in part by a report over the weekend suggesting the "too big to fail" banks should be required to have more capital... MARKET NEWS: Apple (AAPL) kicked off its Worldwide Developers Conference, with investors waiting for possible new product announcements and more information about the company?s iCloud strategy? Stocks in the Financial Sector were particularly weak, possibly dragged down by comments from Federal Reserve Governor Daniel Tarullo on Friday that the Fed is developing a process for banks with more than $50B in assets that increases capital requirements in accordance with the institution?s importance to the financial system. Wells Fargo (WFC) also saw Rochdale Securities downgrade its stock. Goldman Sachs (GS) announced it will sell its Litton Loan Servicing business to Ocwen Financial (OCN) for $264M... MAJOR MOVERS: Among the notable gainers were Harley-Davidson (HOG), as UBS named the stock a short term buy, and BancorpSouth (BXS), breaking with the trend in its sector. Noteworthy losers included Exelixis (EXEL), after data from a clinical trial of its experimental cancer drug, Cabozantinib, showed six patients died of treatment-related adverse events, and Gen-Probe (GPRO), after the Wall Street Journal reported that Novartis (NVS) may be final remaining bidder for the company... INDICES: The Dow was down 3.29, or 0.03%, to 12,147.97; the Nasdaq was down 5.03, or 0.18%, to 2,727.75; and the S&P 500 was down 3.40, or 0.26% to 1,296.76. :theflyonthewall.comHouse conservatives set out conditions for debt limit hike, The Hill reportsMore than 100 House conservative lawmakers signed a letter saying that next year's deficit would have to be cut in half before they'd vote to increase the government's debt limit, according to The Hill. The conservatives also demanded that Congress pass a law limiting total federal spending to 18% of GDP, as well as a constitutional amendment that would strictly limit spending and require supermajority votes of Congress in order to raise taxes, the publication said. Reference Link :theflyonthewall.comFutures continue to trade lowerStock futures remain lower, as Friday's downward trend is continuing. The market appears to have a hangover from last week's economic data, including the poor monthly jobs report. Some analysts believe that the economy has hit a normal soft patch in the midst of a recovery, but others contend that it is entering a double dip recession. Only time will tell, but given the poor jobs market, a struggling housing sector and QE2 winding down this month, the market has a number of hurdles to overcome. :theflyonthewall.comGoldman to fight Senate housing market charges, WSJ reportsGoldman Sachs Group (GS) plans to accuse a Senate subcommittee of overstating the firm's bets against the housing market in 2007, reports the Wall Street Journal. Reference Link :theflyonthewall.comHedge funds bailing out of bank stocks, NY Times reportsHedge funds have been selling their positions in bank stocks, according to the New York Times, which sees the selling as a sign that the "smart money" is leaving the sector. The newspaper cites John Paulson and David Tepper as two hedge fund managers that have been selling bank shares in recent months, and it quotes Barclays analyst Jason Goldberg as saying that "people are skeptical" about buying the sector's shares. Reference Link :theflyonthewall.comFed governor: Too big to fail banks should carry more capital, NY Times reportsChina bubble may be turning into anti-China bubble, Globe and Mail saysThe Globe and Mail notes that where previous rising valuations for Chinese companies -- any company with China or Sino in its name -- were unfounded, the trend has reversed, and now there are questions as to whether the plummeting valuations are unfounded, or "put another way, has a China bubble given way to an anti-China bubble?" Reference Link :theflyonthewall.comBMC CEO expects more M&A activity, but doesn't expect to acquired, WSJ reportsBMC Software's (BMC) CEO Robert Beauchamp says that tech sector mergers and acquisitions will likely continue, but does not see his own company being acquired, saying "We're doing extremely well as a company," reported The Wall Street Journal. Reference Link :theflyonthewall.comStocks on Wall Street traded lower at mid-day after May's unemployment rate was reported to be 9.1%, a number higher than expectations and an uptick from the previous month... As the mid-point of the session passed, the market continued to improve but remains down as it has from the start... May's jobs reports showed non-farm payrolls rose by 54,000 versus the expected 165,000 gain, while private payrolls increased by 83,000 versus the expected increase of 173,000... The ISM non-manufacturing report read 54.6, which was generally in-line with expectations... MARKET NEWS: Wal-Mart (WMT) announced a new $15B share buyback program at it annual shareholders meeting, replacing the share repurchase program it had begun last year. Shares traded higher as of noon, unlike most of the Dow's components... Orexigen Therapeutics (OREX) said that it will halt development of its Contrave diet pill after U.S. regulators required a more thorough study on heart risks associated with the treatment than the company planned. Analysts commented on the potential ramifications for Vivus (VVUS) and Arena Pharmaceuticals (ARNA), two other companies developing obesity drugs... MAJOR MOVERS: Among the notable gainers were Dryships (DRYS), whose shares were upgraded to buy at Goldman Sachs (GS), and GT Solar (SOLR), after the company announced its receipt of a $460M order from China, its largest single contract to date. Noteworthy losers included Newell Rubbermaid (NWL), after cutting its full-year profit forecast, though shares were defended by Deutsche Bank and Citigroup, and Monster Worldwide (MWW), whose shares may have reacted to the poor jobs numbers... INDICES: The Dow was down 64.48, or 0.53%, to 12,184.07; the Nasdaq was down 19.85, or 0.72%, to 2,753.46; and the S&P 500 was down 7.03, or 0.54% to 1,305.91. :theflyonthewall.comReview makes Greece eligible for more bailout funding, Business Insider saysZynga may select Goldman Sachs to lead IPO, Bloomberg reportsGoldman Sachs (GS) may be selected to lead Zynga's expected IPO and to provide a credit line of over $1B to help make acquisitions, Bloomberg reports, citing a person with knowledge of the matter. Goldman could make a decision by today. Reference Link :theflyonthewall.comGoldman Sachs close to sale of Litton Loan to Ocwen Financial, Bloomberg says Goldman Sachs (GS) may soon announce that it's selling Litton Loan Servicing LP to Ocwen Financial Corp. (OCN), reports Bloomberg. Reference Link :theflyonthewall.comMorgan Stanley, Goldman, Credit Suisse to underwrite Groupon IPO, NY Times saysMorgan Stanley (MS) and Goldman Sachs (GS) have been listed as lead underwriters for the IPO of Internet coupon company Groupon, according to The New York Times, which cited Groupon's regulatory filing. Credit Suisse (CS) was also listed as an underwriter of the deal. Reference Link :theflyonthewall.comGroupon files for IPO, Reuters reportsInternet coupon company Groupon plans to raise up to $750M through an IPO, according to Reuters, which cited a regulatory filing. The company said the $750M figure was preliminary and subject to change, the news service added. Reference Link :theflyonthewall.comJim Cramer said, "There was a hidden bull market in Thursday's action." He said while the averages might not show it, the industrial stocks are flying under the market's radar. Consider mining equipment maker Joy Global (JOYG), who delivered stunning earnings that sent shares up $4 a share. Cramer said this one stock led all of the industrials higher, including names like Caterpillar (CAT) and John Deere (DE). Cramer said the world needs more electricity, and that means more coal. He said it also needs more copper. And both of those commodities need more of the equipment made by Joy Global. Cramer also noted that the consumer staples, companies like Abbott Labs (ABT), Kraft (KFT) and Kimberly-Clark (KMB) were all lower today, as expected, as investors move money back into the industrials. The long-term outlook also remains good for gold, said Cramer, whict is why he continues to push hard on the precious metal to make it part of every investor's portfolio. The bull market in social media also roars on says Cramer, as Internet coupon king Groupon announced that it will be coming public soon. EXECUTIVE DECISION: Cramer once again spoke with Michael Sutherlin, president and CEO of Joy Global. Sutherlin reiterated that the mining equipment business is a long-cycle business, and not one that is affected by short-term economic slowdowns. Global mining operations are running near capacity, and companies are aggressively adding capacity to meet the needs to tomorrow. Cramer said Joy Global remains a great long-term play and should be a part of investors' portfolios. SELL BLOCK: Cramer said it's time to steer clear of the oil tanker stocks. Cramer said, the recent Commodity Futures Trading Commission investigation into the 2008 manipulation of oil prices is the least of these stocks' worries. Right now there are simply too many ships for the demand. He said the day rates for tankers are awful, and with so many tanker companies having weak balance sheets, many might not survive. "Sells" in Cramer's book are: Teekay Tankers (TNK), Crude Carriers (CRU), Frontline (FRO). Of the oil tanker stocks, Cramer said only Nordic American Tankers (NAT) remains on his buy list. This best of breed company yields 5%, said Cramer, and that dividend is safe. Cramer also sat down with Andrew Miller, president and CEO of Polycom (PLCM), a video conferencing stock that's up 119% over the past year and has doubled over the past five months. Miller said that video conferencing has become one of the fastest growing segments of technology. Polycom now has deals with Hewlett-Packard (HPQ), IBM (IBM) and Microsoft (MSFT) and offers a different range of products versus what rival Cisco (CSCO) is offering. NO HUDDLE OFFENSE: The shorts have it all wrong when it comes to the apparel makers. Take Phillips-Van Heusen (PVH). They assumed rising cotton costs and lower demand would cripple earnings this quarter. But in reality, sales abroad were terrific and even sales domestically were good, he said. Cramer said the shorts also attacked Polo-Ralph Lauren (RL), but shares only stayed lower for a day before rebounding handsomely. Today, these companies are well run and have great international growth to boot. "They deserve our praise and investment, not our scorn and avoidance," Cramer concluded. LIGHTNING ROUND: (Bullish) QCOM; GG; IBM; ENB; LULU. (Bearish) VALE. Reference Link :theflyonthewall.comThe market opened quietly but dropped following reports that Goldman Sachs (GS) would be served a subpoena as the result of a Senate recommendation. The market spent the rest of the session climbing briefly upward, then falling each time reports of a failure to reach a Greek bailout agreement surfaced. In the end, the markets were mixed, with the Nasdaq showing gains and both the Dow and S&P indexes closing lower... Moody's warned that if there is no progress on increasing the debt limit in coming weeks, it expects to place the U.S. government's rating under review for possible downgrade... Economic reports dominated the early day: initial jobless claims, continuing jobless claims, non-farm productivity, unit labor costs, and April factory orders were all reported. Natural gas inventories built by 83 billion cubic feet versus the expected build of 94 billion cubic feet, sending the price of the commodity to a one-month high. Department of Energy inventories were also reported: Crude inventories built by 2.88M barrels versus the expected draw down of 1.60M barrels; gasoline inventories built 2.55M barrels versus a consensus of a 900,000 build; and distillates drew down 976,000 barrels versus expectations of a 250,000 draw... MARKET NEWS: The Financial sector was prominent in the headlines, with Goldman Sachs receiving a subpoena from the Manhattan District Attorney?s office for information on the bank?s role in misleading buyers of mortgage-linked securities. Also, Moody's placed the ratings of Bank of America (BAC), Citigroup (C), and Wells Fargo (WFC) on review for possible downgrade... Many retailers reported their May same store sales results; notable winners included Saks (SKS) and Costco (COST); notable losers included Gap (GPS) and J.C. Penney (JCP)... Numerous for-profit education stocks were among the day's biggest gainers after the U.S. Department of Education moved to relax "gainful employment" rules... MAJOR MOVERS: Among the notable gainers were Education Management (EDMC), which gained 4.46, or 21.97%, on the day and ITT Educational Services (ESI), which gained 14.94, or 21.12%. Both were positively impacted by the DOE announcement. Noteworthy losers included Vera Bradley (VRA), which lost 6.49, or 13.62%, and The Fresh Market (TFM), which lost 4.64, or 11.71%, after both companies reported earnings and provided guidance... INDICES: The Dow ended down 41.59, or 0.34%, to 12,248.55; the Nasdaq moved up 4.12, or 0.15%, to 2,773.31; and the S&P 500 closed down 1.61, or 0.12% to 1,312.94. :theflyonthewall.comGoldman Sachs volatility increases as shares trends to ten-month lows Goldman Sachs June 130 and 135 weekly puts are active on total put volume of 17K contracts (13K calls) following a subpoena from New York prosecutor, Bloomberg says. June put option implied volatility is at 34, July is at 31, September is at 29; compared to its 26-week average of 26 according to Track Data, suggesting larger price movement. :theflyonthewall.comGoldman Sachs said to get subpoena from New York prosecutor, Bloomberg reportsStocks open little changed following yesterday's sell-offStock futures were slightly higher throughout the pre-market trading session. There was little reaction to the string of economic reports that were released this morning, in contrast to yesterday when investors began to sell equities almost immediately after data was released. Investors will receive additional reports throughout the morning, including factory orders at 10:00 am, natural gas inventories at 10:30 am and DOE energy inventories at 11:00 am ET. :theflyonthewall.comEMC CEO sees storage area growing faster than IT as a wholeThis information is from the Sanford C. Bernstein & Co. Strategic Decisions Conference. :theflyonthewall.comEMC: Not interested in big acquisition will continue "string of pearls" strategyBoehner wants debt limit deal in one month, Politico reportsHouse Speaker John Boehner, an Ohio Republican, said that he wants Congress to increase the government's debt limit within one month, according to Politico. However, Boehner is still demanding that major spending cuts be enacted before the debt limit is raised, the publication reported. Reference Link :theflyonthewall.comE.U.. may provide incentives to facilitate Greek bond extension, Bloomberg saysEuropean officials may provide bondholders with incentives to roll over maturing Greek bonds,according to Bloomberg, which cited two unnamed sources. Investors may receive preferred status, higher coupon payments or collateral if they buy bonds to replace Greek debt maturing between 2012-2014, the news service reported. Reference Link :theflyonthewall.comChinese manufacturing PMI fell in May, China Daily says The Purchasing Managers Index of China's manufacturing sector dropped to 52 in May from 52.9 in April and 53.4 in March, according to China Daily, which cited the China Federation of Logistics and Purchasing. Reference Link :theflyonthewall.comBaidu, BitAuto enter co-operative agreement on auto-related informationBitAuto Holdings (BITA) announced that it has signed an agreement with Baidu (BIDU) to be the exclusive supplier of auto-related content for Aladdin, Baidu's Open Data Platform. Pursuant to the year-long Agreement, effective from June 1, Bitauto will provide selected auto-related content, including auto listings, pictures, reviews, and dealer information to enhance Aladdin-enabled search results, which include real-time, dynamic and interactive content alongside static search results. When Baidu users search for auto-related information, Baidu will exclusively display relevant content provided by Bitauto in the Aladdin-enabled section of the search results page. In connection with direct and indirect expenses related to this Agreement, Bitauto has revised its previously announced earnings outlook for non-GAAP diluted earnings per ADS for Q2 of 2011. :theflyonthewall.comNYSE Technologies to aunch "Capital Markets Community Platform"Webcast launches the "Capital Markets Community Platform", developed in partnership with cloud computing experts VMware (VMW) and EMC (EMC), on June 1 at 10:30 am. Webcast Link :theflyonthewall.comCIT Group and Dell launch preferred financing programs in Brazil and MexicoCIT Group (CIT) and Dell (DELL) announced the launch of two preferred partnership financing programs in Brazil and Mexico. The programs will provide financing to large enterprise customers looking to acquire Dell solutions. :theflyonthewall.comNetApp trades lower, next support is at $53.54, its 10-day moving averageFutures fall following jobs dataStock futures moved lower following the release of employment data earlier. The Challenger Job Cuts report showed that the pace of jobs cuts fell 4.3% compared with the same period a year ago. However, the ADP Employment Change report indicated that 38K private sector jobs were added versus the expected gain of 175K jobs. :theflyonthewall.comAruba, Electronic Arts, and Oracle added to Think Fast List at ThinkEquityTalks on Greece bailout set to conclude by tomorrow, Reuters reportsGreece is slated to complete talks by tomorrow with a group of negotiators from the E.U., IMF, and ECB on a new bailout package and fiscal deal, according to Reuters, which cited a Greek newspaper. The negotiators are discussing a short-term aid package of EUR12B for Greece, as well as a longer term package that's supposed to keep the country solvent up to 2014, the news service added. Reference Link :theflyonthewall.comColumbia Select Large Cap Growth Fd offers supercharged returns, Barron's saysThere are funds out there that investors can use to super-charge their rewards by loading up on risk. And when S&P screened the mutual fund universe for funds with those characteristics, it identified a handful, including the Columbia Select Large Cap Growth Fund (ELGAX) and the Morgan Stanley Focus Growth Fund (AMOAX). In Q1, Columbia Select gained 9%, 50% better than the S&P 500 returned. On a one-year basis, the Columbia Select is higher by 37%, vs. 23% for the S&P. The Columbia Select fund typically has 25 to 30 stocks in its portfolio. Top holdings in the fund are: Amazon.com (AMZN) - the largest holding at 4.7% of the portfolio, Bidu (BIDU), Netflix (NFLX), Cognizent Tech (CTSH), Saleforce.com (CRM). Other key holdings in the fund include: Priceline (PCLN), Franklin Resources (BEN) and Chipotle Mexican Grill (CMG). Thomas Galvin, senior portfolio manager of the Columbia Select Large Cap Growth fund, says "While I'm optimistic about our 25 or 30 names, I would not be as optimistic about the S&P 500." Reference Link :theflyonthewall.comObama to name former Edison International CEO Commerce Secretary, Reuters saysCommVault to host conference callConference call to discuss Global OEM Agreement with NetApp will be held on June 1 at 8:30 am. Webcast Link :theflyonthewall.comGoldman Sachs shares rebound from 10-day MA, resistance is at 142.54Futures higher in early tradingU.S. equity futures are pointing to a sharply higher open following the holiday weekend. Stocks are on track for large gains on hopes that a new aid package for Greece will help the ailing country. Germany reported that its unemployment rate is continuing to drop, signaling that its economy is continuing to recover. Investors in the U.S. will receive data today on consumer confidence, housing prices, manufacturing and purchasing. :theflyonthewall.comFacebook closing in on 700M users, Business Insider reportsFacebook is about to reach 700M users globally, Business Insider reports, citing Socialbakers, a blog that tracks Facebook statistics. Brazil, India and Indonesia contributed mots to the growth in the last month, the blog also notes. Reference Link :theflyonthewall.comApple devices replace Blackberries, laptops in Washington, Washington Post saysThe federal government is allowing more of its workers to use Apple's (AAPL) iPhones and iPads instead of RIM's (RIMM) Blackberries and laptops, according to The Washington Post. Google's (GOOG) Gmail is also becoming more popular among government agencies, the newspaper added. Reference Link :theflyonthewall.com
Japan placed on review for possible downgrade by Moody'sMoody's placed the Government of Japan's Aa2 local and foreign currency bond ratings on review for possible downgrade, citing concerns about economic growth prospects and the government's ability to achieve a credible deficit reduction target. :theflyonthewall.comKansas City Fed's Hoenig sees need to lift rates, reports WSJ, citing CNNThe President of the Federal Reserve Bank of Kansas City, Thomas Hoenig, said a bump up in interest rates is now necessary to avoid economic problems, the Wall Street Journal says, citing a CNN interview. Reference Link :theflyonthewall.comMarket set to end week lower, but poised to finish week on winning streakMarket opens relatively quietlyStock futures traded quietly throughout the pre-market trading session. The lackluster action led to a relatively flat open for the broader market. Investors will be awaiting the release of the consumer confidence report at 9:55 am ET and the pending home sales report, which is due out at 10:00 am ET. :theflyonthewall.comFutures quiet in early tradingStock futures are trading near fair value ahead of several economic reports. The personal income and spending reports are expected to show increases of 0.4% and 0.5% respectively. The University of Michigan Consumer Confidence reading is expected to come in at 72.4 and the pending home sales report is expected to show a decline of 1.0%. The first reports are due out at 8:30 am ET. :theflyonthewall.comGoldman Sachs restructures $1.42B of hotel debt, WSJ reportsGoldman Sachs' (GS) Whitehall Real Estate Funds restructured $1.42B of debt coming due on one of its key hotel portfolios, as the Abu Dhabi Investment Authority will put $475M into the portfolio for a preferred equity stake, reports the Wall Street Journal. Reference Link :theflyonthewall.comTractor Supply near-term estimates are on track, says Deutsche BankDeutsche Bank believes Tractor Supply's Q2 is on track from an earnings and sales perspective after the company participated in the firm's retail conference. Deutsche maintains a Buy rating on the stock with a $70 price target. :theflyonthewall.comJapan outlook revised to Negative from Stable by FitchFitch revised Japan's Outlook to Negative from Stable citing negative pressure from rising government indebtedness. :theflyonthewall.comWorldwide notebook shipments to grow less than 10% in 2011, Digitimes reportsGrowth projections for the global shipment of notebooks have fallen from 12%-15% to 10%, with the popularity of tablet PCs the principal culprit behind the decline, according to estimates from industry sources in Taiwan and reported in Digitimes. Reference Link :theflyonthewall.comSenior Democrat seeks probe into speculators effect on gas price, Politico says Intel says tablets to have limited impact on notebooks, Business Insider reportsThere will be at most 100M computer tablets sold in 2013, and one-third of them will cannabilize notebook sales, Intel (INTC) CFO Stacy Smith said today, according to Business Insider. Tablet sales have largely been limited to wealthy individuals, as most consumers and corporations haven't bought them, Smith said. Reference Link :theflyonthewall.comGartner: Worldwide server shipments grew 9%, revenue up 17% in 1Q11In the first quarter of 2011, worldwide server shipments grew 8.5 percent year-on-year, while revenue increased 17.3 percent, according to Gartner, Inc."The first quarter continued a quarterly trend of year-on-year growth in both shipments and vendor revenue," said Jeffrey Hewitt, research vice president at Gartner. "All regions showed growth in both shipments and vendor revenue, with the exception of Japan.? Reference Link :theflyonthewall.comJanney Capital's retail analysts to hold a conference callRetail Analysts Strasser and Tennant preview May comps on an Analyst/Industry conference call. Relevant covered companies, AEO, ANF, ANN, ARO, BBY, BEBE, BJ, BKE, CHS, COST, GPS, HD, HOTT, HGG, LL, LOW, ODP, OMX, PETM, PSUN, RSH, SPLS, SYX, TGT, TLB, TSCO, URBN and WMT, may be discussed on the Analyst/Industry conference call to be held on May 31 at 10 am hosted by Janney. :theflyonthewall.comOn The Fly: Analyst Upgrade Summary Today's noteworthy upgrades include: American Eagle (AEO) upgraded to Outperform from Market Perform at FBR Capital...Aeropostale (ARO) upgraded to Market Perform from Underperform at FBR Capital....Oracle (ORCL) upgraded to Buy from Hold at ThinkEquity...Comerica (CMA) upgraded to Outperform from Perform at Oppenheimer...Cognizant (CTSH) upgraded to Overweight from Equal Weight at Barclays...Host Hotels (HST) upgraded to Conviction Buy from Neutral at Goldman...Brookdale Senior Living (BKD) upgraded to Buy from Neutral at Goldman...Immucor (IMMR) upgraded to Outperform from Sector Perform at RBC Capital. :theflyonthewall.comNetApp price target raised to $57 from $55 at SusquehannaSusquehanna raised its price target on NetApp following Q4 results citing a pick-up in deal size, the Eugenio acquisition, and healthy storage business. Shares are Positive rated. :theflyonthewall.comFed gave some banks crisis gains on secret loans in 2008, Bloomberg reportsIn 2008, Credit Suisse Group AG (CS), Goldman Sachs Group (GS) and Royal Bank of Scotland Group (RBS) borrowed at least $30B each from a Fed emergency lending program, and the details weren?t revealed, reports Bloomberg. The initiative, called single-tranche open- market operations, or ST OMO, made 28-day loans from March-December 2008. Units of 20 banks bid at auctions for the funds and paid interest rates as low as 0.01% in December 2008 when the Fed?s main lending facility charged 0.5%. Reference Link :theflyonthewall.comFutures remain quiet following dataStock futures remain quiet following the release of several economic reports. Initial jobless claims came in at 424K versus the expected 404K while there were 3.69M continuing claims versus the expected 3.7M. Personal consumption rose 2.2% versus the expected increase of 2.8% while GDP rose 1.8% versus the expected increase of 2.8%. :theflyonthewall.comSchool of Business & Economics SUNY Plattsburgh to host a conferenceGlobal Supply Chain Management Conference is being held in Plattsburgh, New York on May 24-26. :theflyonthewall.comNetApp rises after earnings, resistance is at $54.47, most recent pivot highNetApp results should please Street, says ThinkEquityThinkEquity believes that NetApp's Q4 results should help lessen investors' concerns about the company's core business growth and margins. The firm thinks the company can accelerate its operating margin growth during FY12 and it reiterates a Buy rating. :theflyonthewall.comNetApp upgraded to Outperform from Market Perform at BMO CapitalBMO Capital upgraded NetApp citing the solid Q4 report and guidance, storage growth, and Engenio opportunities. Price target raised to $65 from $61. :theflyonthewall.comFutures quiet in early tradingStock futures are slightly below fair value in early trading. Overseas markets rose following indications that Greece may get a second bailout. Investors in the U.S. will examine several domestic economic data points today, as reports on personal consumption, jobless claims and natural gas inventories are slated to be released. :theflyonthewall.comOracle upgraded to Buy from Hold at ThinkEquityThinkEquity upgraded Oracle citing the recent pullback in shares, business strategy, and leverage. Price target raised to $40 from $34. :theflyonthewall.comRising consumer interest in tablets affected Q1 PC sales, Digitimes reportsOn the Fly: Periodicals Wrap-UpWALL STREET JOURNAL: Home Inns & Hotels Management (HMIN) is close to buying a 59% stake from Morgan Stanley (MS) in Shanghai Motel Management Co. in a deal that values the company at about $500M, the Wall Street Journal reports...REUTERS: Influential hedge fund manager David Einhorn has called for Microsoft (MSFT) CEO Steve Ballmer to step down, saying the world's largest software company's leader is stuck in the past, Reuters reports...Russia's TNK-BP, half owned by BP (BP), is ready to spend $1B to acquire a stake in oil and gas fields in Brazil as part of its foreign expansion, according to the daily Kommersant, Reuters reports... BLOOMBERG BUSINESSWEEK: Apollo Global Management LLC (APO) and Broadway Partners offered to buy the U.S. real estate holdings of Charter Hall Office REIT for more than $1.68B, Bloomberg Businessweek reports...FINANCIAL TIMES: The Federal Reserve Bank of New York is investigating allegations of misconduct by the mortgage servicing arm of Goldman Sachs (GS), the Financial Times reports. :theflyonthewall.com
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