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    February 28, 2007

    Wall Street higher at midday

    Filed under: Home Depot, Toll Brothers, Administaff, Verizon, Sprint Nextel, Merck

    At midday on Wednesday the New York equities markets seemed to have risen above Tuesday’s declines, helped along by comments from Federal Reserve Chairman Ben Bernanke that Tuesday’s conditions in global equities markets had done nothing to change his assessment that the US economy could look forward to moderate growth this year. By mid-session, the Dow Jones Industrial Average had added 0.3 percent to 12,257.74, while the Nasdaq Composite was 0.2 percent higher to 2,413.64 and the S&P 500 was up 0.3 percent to 1,405.75.

    The telecommunications sector was higher after Sprint Nextel (NYSE: S) added 2.5 percent to $19.41 on its report that quarterly profits were up and that it expects to gain more subscribers. That news helped Verizon (NYSE: VZ), which gained 1.8 percent to $37.20.

    In the pharmaceuticals sector, Merck (NYSE: MRK) added 2.1 percent to $44.10 after it improved this years earnings forecast.

    Homebuilders were lower after new data that showed new home sales down at its steepest rate in 13 years. The S&P Homebuilders index dropped 1.5 percent, and Toll Brothers (NYSE: TOL) saw its shares fall 2.4 percent to $29.85. In a related sector, home improvement retailer Home Depot (NYSE: HD) said it would likely see slower sales due to the downturn in the housing market. That statement sent its shares 0.6 percent lower to $39.59.





    February 26, 2007

    Private equity buys TXU

    Filed under: Administaff, Eli Lilly, Merck, Dow Chemical, Lyondell Chemical, TXU

    At midday in New York on Monday, Wall Street had made no progress to speak of. Midway through the session both the Dow Jones Industrial Average and the S&P 500 were steady, at 12,647.40 and 1,452.10 respectively. Meanwhile, the Nasdaq Composite was 0.3 percent lower to 2,508.19.

    The chemicals sector was higher on bids rumors. Lyondell Chemical (NYSE: LYO) added 4.3 percent to $33.00 on rumors that Dow Chemical (NYSE: DOW; TYO: 4850) could receive a bid from private equity. Even though there have been no confirmations of such an offer in the works, Dow gained 5.2 percent to $45.72.

    The pharmaceuticals sector was also up. Eli Lilly (NYSE: LLY) added 0.5 percent to $54.50 after the Food and Drug Administration approved its Cymbalta antidepressant for use in treating generalized anxiety disorder. Meanwhile, Merck (NYSE: MRK) gained 4.1 percent to $44.70 after Citigroup (NYSE: C) raised its recommendation on the drug maker from “hold” to “buy” based on its hopes for Merck’s Januvia diabetes treatment.

    An announcement that private equity will purchase Texas utility TXU (NYSE: TXU) for $45 billion. The deal will set a new record for a leveraged buy-out. Kohlberg Kravis Roberts and Texas Pacific Group will pay $32 billion in cash and take on $12 billion in existing debt.





    February 24, 2007

    Selling your home

    Filed under: Accredited Home Lenders

    When it comes to selling your house, home, or selling your property in general, there are a lot of issues that can delay the sale, such as a property chain, poor market conditions in your local area, or even problems with the property you are looking to sell.

    However, none of these reasons mean that you can’t make a quick home sale, as while the UK property market remains strong, there are plenty of property investors and property buyers who are looking to make a fast sale with private individuals.

    So if you find yourself with a need - for whatever reason - to sell house for cash and do it fast, then look to a property buying company to make that sale quick and easy.





    February 22, 2007

    Supermarkets gain on merger news

    Filed under: DR Horton, Toll Brothers, Administaff, Hewlett-Packard, Abercrombie & Fitch, Whole Foods, JC Penney, Wild Oats Markets

    The New York equities markets were lower at midday on Thurdsay. The Dow Jones Industrial Average dropped 0.5 percent to 12,678.89, while the Nasdaq Composite fell 0.1 percent to 2,515.35 and the S&P 500 was 0.3 percent lower to 1,454.03.

    Retailers declined on bad news. Abercrombie & Fitch (NYSE: ANF) dropped 2.1 percent to $80.29 after it said that the rising cost of paying its employees would likely diminish results for the first half of the year. Meanwhile, JC Penney (NYSE: JCP) fell 3.6 percent to $83.21 on a less than positive guidance.

    Homebuilders were lower as well, after Toll Brothers (NYSE: TOL) said that profits were down sharply and that while it has seen an upturn in demand in some regions, it doesn’t expect the housing market to strengthen significantly through spring. The builder’s 67 percent decline in profits wasn’t as steep as some had expected, but the company’s stock still dropped 1.5 percent to $32.38. Elsewhere in the sector, DR Horton (NYSE: DRH) fell 2.1 percent to $27.50.

    In the computer sector, Hewlett Packard (NYSE: HPQ) dropped 1.7 percent to $40.42.

    In the supermarkets sector, Whole Foods (NASDAQ: WFMI) added 11.8 percent to $51.10 after it said last night that it will acquire Wild Oats Markets (NASDAQ: OATS) for $565 million. Wild Oats added 17.3 percent to $18.44 on the news.





    February 20, 2007

    Retail mixed on quarterly results

    Filed under: ExxonMobil, Wal-Mart, Home Depot, Administaff, Sirius Satellite Radio, JetBlue, XM Satellite Radio, Baker Hughes

    On Wall Street Tuesday the equities markets were a bit higher at midday, with the Dow Jones Industrial Average 0.1 percent higher to 12,778.87. The Nasdaq had added 0.4 percent so far on the session to 2,506.20, while the S&P 500 was up 0.2 percent to 1,458.13.

    Oil and related sectors were lower after weather reports sent crude oil prices down. ExxonMobil (NYSE: XOM) dropped 0.7 percent to $74.76. Meanwhile, oil services group Baker Hughes (NYSE: BHI) fell 3 percent to $63.77.

    In the airlines sector, JetBlue (NASDAQ: JBLU) was 5.1 percent lower to $12.86 on a broker downgrade after the air carrier said that weather disruptions to its schedule that left some passengers stranded on planes on the ground for several hours could cost it as much as $30 million.

    Retailers were mixed. Home Depot (NYSE: HD) dropped 0.1 percent to $41.40 after bigger losses earlier in the session. It reported that the weak US housing market had meant quarterly profits were down by 28 percent. Wal-Mart (NYSE: WMT), however, reported better than anticipated quarterly numbers and added 2.8 percent to $49.83.

    News that satellite radio providers Sirius (NAS: SIRI) and XM (NAS: XMSR) have proposed a merger sent both companies higher even though it is not clear that regulators will actually allow such a merger to take place. Sirius added 8.1 percent to $4, while XM was up 11.6 percent to $15.59.





    February 16, 2007

    Bids rumors help aluminium producers

    Filed under: Alcoa, DR Horton, Administaff, Microsoft, Alcan, Anheuser-Busch

    The New York equities markets were higher this week despite declines for the Dow Jones Industrial Average and the Nasdaq by afternoon on Friday. The Dow was up 1.3 percent for the week, to 112,748.26, while the Nasdaq had added the same percentage, to 2,490.13 despite dropping 0.2 percent on the session to mid-afternoon. Meanwhile, the S&P 500 was 1.1 percent higher for the week to 1,453.27.

    The numbers were helped in the latter half of the week by Federal Reserve chairman Ben Bernanke’s comments before the US Congress, where he said that the nation’s economy continues to grow although at a more modest rate than previously. Investor sentiment took a downturn on Friday, however, after new data showed that fewer new homes were built in January than had been anticipated.

    The Commerce Department figures on homebuilding sent the S&P Homebuilders index 0.6 percent lower, and DR Horton saw its shares drop 0.9 percent to $28.04.

    The Nasdaq was hurt by comments from Mircosoft chief executive Steve Ballmer that analysts’ estimates of revenues to be gained from its new Windows Vista operating system were “overly aggressive”. Microsoft dropped 2.4 percent to $28.77, having now lost a total of 6.8 percent since Vista was launched.

    Alcoa was 6.1 percent higher to $34.56 on the news that BHP Billiton and Rio Tinto were preparing separate bids for the aluminium producer. The news helped rival aluminium group Alcan add 5.3 percent to $54.53.

    Bids speculation also helped Anheuser-Busch, which gained 2 percent to $51.04 on a report that it is talking merger with Belgium’s InBev.





    February 14, 2007

    Bernanke’s comments help homebuilders, mortgage lenders

    Filed under: DR Horton, Administaff, Coca-Cola, Caterpillar, John Deere, Warner Music, New Century Financial

    Wall Street was up in afternoon trade on Wednesday after US Federal Reserve Chairman Ben Bernanke told Congress that the US economy continues to grow and inflation is beginning to recede. The Dow Jones Industrial Average added 0.7 percent to 12,742.02, while the Nasdaq Composite gained 1.4 percent to 2,492.98 and the S&P 500 was 0.8 percent higher to 1,456.36.

    Mr. Bernanke’s comments especially helped homebuilders and mortgage lenders. Among homebuilders, DR Horton added 1.4 percent to $28.25 after Mr. Bernanke said that he sees indications that the housing market is beginning to stabilize. Meanwhile, among mortgage lenders, New Century Financial gained 7.6 percent to $20.01.

    Manufacuturers of farm and building equipment were up after Deere issued a quarterly report showing that profits were better than expected. Deere added 9.8 percent to $112.74, while Caterpillar was 2.6 percent higher to $66.42.

    Coca-Cola dropped 0.8 percent to $47.81 after it reported that profits are down. Even though profits declined, operating profits and quarterly revenue were better than had been anticipated.

    Warner Music dropped 7.1 percent to $18.01 after UK rival EMI warned on profits, citing poor sales in the United States. Standard & Poor’s droped its rating outlook on the media company from “stable” to “negative”.





    February 12, 2007

    Apple up on broker upgrade

    Filed under: Home Depot, DR Horton, Administaff, Apple Computers, Countrywide Financial, Bristol-Myers Squibb, New Century Financial

    Declines in the oil sector and among mortgage lenders and homebuilders sent Wall Street lower by midday on Monday. The Dow Jones Industrial Average was about even at 12,575.78, but the Nasdaq Composite dropped 0.3 percent to 2,451.61 and the S&P 500 fell 0.2 percent to 1,435.80.

    The pharmaceuticals sector was mixed as Bristol-Myers Squibb declined on failing merger talks but Onyx Pharmaceuticals was up a phenomenal 82.9 percent to $22.42 on good news from trials on a new liver cancer treatment. Bristol-Myers dropped 4 percent to $27.37.

    ExxonMobil was 0.7 percent lower to $74.73.

    Among homebuilders DR Horton fell 1.7 percent, to $27.56, as the sector was unsettled by further declines in among mortgage lenders. Last week’s warnings on lending were still a concern, with Countrywide down 3.6 percent to $27.56 and New Century Financial 4.5 percent lower to $17.91.

    Among retailers, Home Depot added 1.2 percent to $41.48 on the news that it is thinking about either spinning off, floating, or selling HD Supply, its wholesale distribution business.

    Apple Computer added 1.4 percent to $84.44 on an upgrade from “hold” to “buy” from Citigroup. The broker cited new product launches and said that lower prices on memory chips would help margins.





    February 8, 2007

    US retail sector mixed

    Filed under: Administaff, Walt Disney, Wells Fargo, Costco Wholesale, Gap, Lehman Brothers, JP Morgan, Warner Music, New Century Financial, American Home Mortgage Investments, Accredited Home Lenders

    The New York equities markets saw declines on Thursday after two leading mortgage lenders said that more people were defaulting on home loans. At noon, the Dow Jones Industrial Average had dropped 0.4 percent to 12,612.47. The Nasdaq Composite was also 0.4 percent lower, to 2,481.90, while the S&P 500 fell 0.3 percent to 1,445.26.

    The retail sector was mixed. Gap added 2.9 percent to $19.81 after it said that its sales are up. On the other hand, Costco dropped 0.3 percent to $56.34 after steeper declines earlier after underlying sales were reported to be up only 2 percent in January, below expected levels.

    In the media sector, Walt Disney dropped 1 percent to $35.10 on profit-taking after Wednesday’s report that its net income more than doubled in the quarter. Meanwhile, Warner Music fell 4.7 percent to $20.50 after it reported that its fiscal first quarter profits were down 74 percent.

    Declines in the financial sector followed reports from HSBC and New Century Financial, two large subprime mortgage lenders, that defaults are on the rise. New Century fell to $21.64. Other subprime lenders that saw declines were American Home Mortgage Investments, which dropped 6.9 percent to $33.50 and Accredited Home Lenders, down 7.6 percent to $26.81. Elsewhere in the banking sector, JP Morgan and Wells Fargo each were 1 percent lower, to $50.71 and $35.55 respectively, while Lehman Brothers dropped 1.7 percent to $84.14.





    February 7, 2007

    Cisco Systems adds 3.3 percent on quarterly results

    Filed under: Administaff, Cisco Systems, Broadcom, News Corporation, Cigna, Whirlpool

    Wall Street was mixed at mid-afternoon on Wednesday. The Dow Jones Industrial Average dropped 0.2 percent to 12,645.48, while the S&P 500 was even at 1,447.93 after gains early in the day reversed. The Nasdaq Composite was 0.6 percent higher to 2,486.12 on fiscal second quarter results from Cisco Systems, released after the close on Tuesday.

    Cisco added 3.3 percent to $28.18 after it exceeded profits expectations and projected that sales will be strong this year. Its fiscal second quarter net income was at $1.9 billion and it said that it believes that third quarter revenues will be up by around 20 percent. In related sectors, chipmaker Broadcom was 5.3 percent higher to $33.69.

    In the media sector, News Corp. added 1.6 percent to $24.53 even though profits were down in its fiscal second quarter. Revenue was up 18 percent, however, and successes with Borat and X-Men for its film division helped sales.

    Health insurer Cigna added 2 percent to $139.93 after releasing a fourth-quarter report that showed profits up 10 percent and net income at $232 million, besting estimates by analysts.

    Whirlpool dropped 3 percent to $92.02 on net profits that were down 13 percent for the year, with fourth-quarter profits below what had been anticipated.





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