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578fe1fc634cd4c74128f2714ddd9fdf | https://www.cnbc.com/2009/10/16/kids-book-grownup-movie-box-office-hit.html | Kids Book + Grown-Up Movie = Box Office Hit? | Kids Book + Grown-Up Movie = Box Office Hit?
Where The Wild Things Arewherethewildthingsare.com
Hollywood loves a familiar brand — there's a reason why nearly every blockbuster is based on a comic book, TV series, or book, or old movie.
An established brand has built-in awareness, making it easier to market as a film movie. (Getting people to know a movie's title seems half the battle).
And as the studios make fewer big-budget films each year and watch their marketing costs, it's more important for each movie to have guaranteed, and ideally broad, appeal.
This weekend "Where the Wild Things Are" is a different twist on the familiar trope of turning a kids book into a film.
Directed by Indie film king Spike Jonze, the movie is dark, with a sophisticated score, clearly targeting adults. Warner Brothers' wide release is trying to score with two different audiences. The big question seems to be whether the film is *too* scary for the kids who are age-appropriate to read the illustrated book.
Another Hollywood Trend: Game-to-Movie Conversions, A Slideshow
Still, the strategy makes sense: the movie cost an estimated $80 million, so why not play on adults fondness for the book they read as kids, while also getting kids to ask their parents to take them. Plus adult movie tickets cost more. In Hollywood a so-called "four quadrant" film (young, old, male, female) is the ultimate home run. While adults are key at the box office, kids are key for home video sales — DVD sales of family films have held up far better than the rest of the DVD business.
Movies based on kids’ books for kids are old hat — see "Cloudy with a Chance of Meatballs" earlier this fall. It's adapting kids books into movies for an older audience that seems to be the new trend. Next month 20th Century Fox is releasing Wes Anderson's take on Roald Dahl's "Fantastic Mr. Fox." Voiced by George Clooney, Meryl Streep and Cate Blanchett, there's certainly adult appeal.
Then in March Disney is releasing Tim Burton's dark take on "Alice in Wonderland" — this isn't about her first trip down the looking glass, but ten years later when she returns to the odd, ghoulish world. The real star of this film is Jonny Depp, who should have no problem drawing adults to theaters.
The Holy Grail is a "Harry Potter," which has generated $1.7 billion at the US box office alone. The franchise started off as a more traditionally kid-friendly book adaptation. But a wide demographic turned out to the first film, and as the films continued to get darker and darker. Then again Harry Potter is quite a unique publishing phenomenon. We'll see if the studio behind the Potter franchise can weave the same kind of magic with "Wild Things" this weekend.
Questions? Comments? MediaMoney@cnbc.com
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3975e27228e2834b0121e5d363bba44d | https://www.cnbc.com/2009/10/16/lightning-round-blackstone-imax-eli-lilly-and-more.html | Vivus : VVUS is “very, very speculative,” Cramer said. He will recommend the stock only as a spec play.
Rubicon Minerals : Sell RBY, Cramer said. Freeport-McMoRan and Agnico-Eagle Mines are better stocks.
15 Rules for Playing Defense
Skyworks Solutions : Cramer is bullish on Skyworks.
Cerner : Cramer likes CERN as a play on Obamacare, as it handles computerized medical records. But the stock’s had a big run, so he recommended taking profits ahead of the quarter.
IMAX : Sell IMAX, Cramer said.
Blackstone : BX may be cheap, but Cramer’s unsure of the company’s holdings. “It’s too much of a black box,” he said. Don’t buy the stock.
Eli Lilly : Cramer likes LLY and its 5.8% dividend yield.
Neutral Tandem : Cramer said he wanted to do more research before making a call on TNDM.
3COM : 3COM is a buy, Cramer said. He called the stock “incredibly cheap” and predicted it would run to $7.
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60e25476625794455d1d006413bb2678 | https://www.cnbc.com/2009/10/16/lightning-round-ot-qwest-qualcomm-and-more.html | Sigma Designs : Don’t buy, Cramer said. Go with Cypress Semi , Qualcomm or ARM Holdings instead.
15 Rules for Playing Defense
Qwest Communications : Sell Q, Cramer said.
Aaon : Don’t buy, Cramer said. AAON is too levered to commercial real estate, “which I’m not a big fan of.”
Cramer's charitable trust owns Qualcomm.
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d131499274763ac94ad04a01b4935e69 | https://www.cnbc.com/2009/10/16/mad-mail-when-will-washington-wake-up-to-nat-gas.html | Jim: I cannot thank you enough for what you do. You are truly an inspiration and the only source of unbiased information and news in the market. What do you think it’s going to take to wake up Washington to natural gas as a bridge fuel and create much-needed jobs in this country? With elections coming, will you spend any time during the segments leading up to Election Day trying to knock some common sense into these elected officials? --Tom
Cramer says: “All I can do is to continue to have good guest on, to talk about how important natural gas is as a bridge fuel … This is about America, this about jobs … I’m never going to quit on this issue.”
Call Cramer: 1-800-743-CNBC
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Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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a36f698ea2e2ad5376628192d0f268ff | https://www.cnbc.com/2009/10/16/my-interview-with-treasury-secretary-tim-geithner.html | My Interview With Treasury Secretary Tim Geithner | My Interview With Treasury Secretary Tim Geithner
Editor's note, below is a transcript of Maria Bartiromo's interview with Treasury Secretary Timothy Geithner
MARIA BARTIROMO: Is there enough capital in the system now?
Treasury Secretary Timothy GeithnerAP
Secretary of the Treasury TIMOTHY GEITHNER: There's much more capital today than there was when we started, and you're seeing in cost of credit, availability of credit, really dramatic improvement in access to credit.
But parts of the system are still very damaged, access to credit for small business is still very constrained, and there are parts of the market where, as you've seen in mortgages, where the progress we've seen is really enormously reliant on the government. So we've made a lot of progress, but a lot of repair ahead. And we're going to have to stick with this to make sure that we have enough finances and that's strong enough to support a strong recovery.
BARTIROMO: You make a really good point as far as the government really supporting the system, and a lot of people say, well, what happens when the stimulus is gone? You look at what happened with the cash for clunkers deal. We went from horrible to great to horrible again. The first-time homebuyer credit. So what happens when the stimulus is gone?
Sec. GEITHNER: Well, recovery is going to work for Americans requires a recovery led by the private sector, requires recovery led by private demand that's going to be strong enough to be sustainable. And that means that you're going to have to still make sure there's enough support to reinforce that process of recovery. But when we have growth back in place, we also got to bring down those long-term deficits, make sure we go back to living within our means. And that's like the difficulty--that's the--that's the difficult balance to get right. But I think we're going to get that right. We're not going to make the mistake many countries made in the past of putting the brakes on too early and creating risk that we have a, you know, weaker recovery with even higher levels of unemployment going forward.
BARTIROMO: Now, you said that the capital situation is better than where we were, obviously...
Sec. GEITHNER: I'd say it's dramatically better.
BARTIROMO: Dramatically better. And yet you've called for the banks to raise capital levels, and yet people are saying that's creating a lending issue because banks want to raise capital levels, as the government says to, and yet you want them to lend. How do you raise capital and also lend?
Sec. GEITHNER: Right. I don't--you know, I don't think--that's a good thing to worry about, but that's not the risk we face today. And I think you can separate these two things out. And, again, if you look at what's happened to the cost of credit, how easy it is to borrow, there's been a really very dramatic improvement for the vast bulk of the US economy as a whole. And that's the best measure, really, ultimately, of whether there's enough capital in the system as a whole. Now, demand for credit has fallen dramatically because we've had an acute recession and because this is a recession caused by too much borrowing, in some sense. You would expect demand for credit to fall as we--as we get out of this and people save more, but generally the system today is in a much stronger position to provide the credit--the credit the economy needs.
BARTIROMO: You know, during the conference call this week of Goldman Sachs and JPMorgan , shareholders were criticizing them, that they had so much capital on the balance sheet, and they're saying, `Why won't you raise dividends? Why won't you pay back money to shareholders?' And I heard that they were saying because the government's telling us, or suggesting us not to. So what is the resolution on how much capital these banks need to hold, and also, are you stopping even the non-TARP banks from paying out dividends?
Sec. GEITHNER: The--let's talk about financial reform, because this is critical. To make sure we have a more stable system in the future so we don't ever put taxpayers in the position of--again of having to bail out these large institutions, we're going to have to have more conservative, better designed capital requirements on the financial system in the future. There is no credible argument against that. I'm not actually aware of any financial institution that seriously disputes that basic proposition. That's going to be good for the entire system, a necessary thing for us to do. But we want to get that right. We've got to negotiate a consensus internationally. And we want to make sure it's designed right so the capital requirements don't amplify future crises, don't make them more severe, as fear elevates in the crisis. So we're going to take the time to get that right. Our hope is we have a consensus on reforms at the end of next year, but they won't take it--effect that until some transition period above that.
Right now, as you said, the real risk is that people aren't willing to take enough risk. Because you know what happens after crises that are caused by bubbles is people are a little too cautious, too restrained. So part of the imperative policy now is to still make sure we're providing enough support for that process of repair to...(unintelligible). We want to make sure that we're reinforcing confidence.
BARTIROMO: But you don't want them--you want them to retain their earnings. You don't want them to pay out dividends right now?
Sec. GEITHNER: Well, on the broader question about capital, generally now, about repayment, again, let me just say the following: It's--private capital is more valuable than public capital. It's better to have more private capital come into the system so that banks can repay the public capital. That's good for the taxpayer, healthy for the system. And I'd say the financial markets now are open for capital, as they've been since early April, May, June, and it's, I think, you know, we'd like to see capital in the system where it's necessary, and private capital's more valuable for the system than public capital.
BARTIROMO: Are you encouraging more banks to pay back the TARP money, as The New York Times report said today?
Sec. GEITHNER: Well, again, we're going to try to get this balance right. We want to make sure that we get this money back in a time frame that makes sense, but we also want to make sure the system is strong enough, it can provide credit the recovery--businesses need for recovery. That's the--that's a difficult balance, but as I said--let me say it again--private capital is more valuable than public capital.
BARTIROMO: Let me ask you more about financial reform. Aside from the capital levels, how will the industry look, what kind of changes should we expect once this financial reform materializes?
Sec. GEITHNER: Two key things. One is much stronger protections for consumers and investors enforced more evenly across the system. That's really, really important thing. It's central to basic sense of fairness and confidence in the system. And the second is a more stable system, less vulnerable to crisis, less fragile, where the government has the ability to contain the damage without putting taxpayers at risk, without, you know, rewarding failure, saving people from their mistakes.
BARTIROMO: People are nervous about 2010. They're anxious about new tax policy. Are you going to allow the Bush tax cuts to expire if we remain in a flat situation, in terms of the economy, and unemployment remains high?
Sec. GEITHNER: Basic imperative now: overwhelming responsibility of people in government today is to make sure we have an economy that's growing, unemployment coming down, factories back to work. That is the critical imperative. That's why we cut taxes as part of recovery for 95 percent of working Americans and for businesses across the country, and it does not make sense to raise taxes in a recession. So getting growth on track, led by the private sector, is going to--is still our most important priority.
VIDEO4:2004:20CNBC Exclusive: Geithner on the Dollar's Status
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Questions? Comments? Write toinvestoragenda@cnbc.com
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5451c4dd0f9a2933bf72a3fa675ef39e | https://www.cnbc.com/2009/10/16/new-hightech-rubiks-cube-features-electronic-touch-screen.html | New High-Tech Rubik's Cube Features Electronic Touch Screen | New High-Tech Rubik's Cube Features Electronic Touch Screen
Just in time for the holidays and its upcoming 30th anniversary, a new high-tech, touch screen Rubik’s Cube hits stores shelves this weekend.
The six-sided, 54-square electronic puzzle features sensors that change color when swiped by players’ fingers.
It also contains a motion-detecting accelerometer and an internal speaker that makes a flipping sound as the LED lights change color.
This is the most advanced version of the iconic device, which will retail for under $150. It is the second electronic Rubik’s Cube produced by TechnoSource, a privately-held toy company based in Hong Kong.
TechnoSource has licensed the Rubik’s Cube brand for all electronic editions of the device. Hasbro is the U.S. distributor of the original Rubik’s Cube.
Video of Official World's Record Rubik's Cube Puzzle Solver
Three hundred and fifty million Rubik’s Cubes have been sold worldwide since the toy was introduced in 1980. Over the years, it has inspired international competitions, instructional books and countless viral videos. The new computer-like cube is sure to inspire even more.
VIDEO0:0000:00Demonstration of Rubik's TouchCube
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98e12de71ca040046e6b0cdc4da8fcc0 | https://www.cnbc.com/2009/10/16/poll-do-you-like-your-boss.html | Poll: Do You Like Your Boss? | Poll: Do You Like Your Boss?
It's National Boss Day. Ideally it's a time for employees to thank their supervisors and superiors for being kind and fair. More often than not these days the secular holiday is viewed with cynicism and disdain; another marketing ploy by greeting card companies to fuel their business.
Indeed, bosses aren't getting a lot of good press these days. The headlines are full of tales suggesting that executives are overpaid. And a book on toxic bossesis far more attention getting than tales of nice bosses.
Are bosses that bad? We'd like to know. Cast your vote and/or make your comment below...
More From CNBC.com...
Your Job, Your Life | A CNBC Special Report
BofA's Lewis Will Take No Salary or Bonuses in 20094 Tips For Winning Over EmployeesHow Today's Leaders See Tomorrow's ChallengesSlideshow: Best American CEOs of All TimeSlideshow: Highest Paid CEOsRead: Executive Careers Blog
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eca7a100c6c7a12f46574fe5f5488b98 | https://www.cnbc.com/2009/10/16/prepping-your-portfolio-for-next-weeks-earnings.html | Prepping Your Portfolio For Next Week's Earnings | Prepping Your Portfolio For Next Week's Earnings
The positive tone set by this week's earnings reports will likely shift toward mediocrity in the upcoming week, especially regarding firms that rely on consumer spending, said Charlie Smith, CIO of Fort Pitt Capital Group, and Alan Valdes, vice president of Kabrik Trading.
VIDEO0:0000:00The Friday Trade
Though Valdes said these consumer-based companies will likely post better results than one year ago, they'll probably follow Johnson & Johnson 's lead and show a decline in sales revenue.
"That's really concerning us," he said.
Smith said his firm is still heavily invested in telecom and cable, adding that he thinks Comcast will greatly benefit if the dealfor NBC Universal goes through.
More Market Intelligence:
Art Cashin: Warning Signs of Market Top FormingMy Google Share Price Target: Analyst
But even if the deal doesn't materialize, he said he would still buy into the company.
"Comcast is going to be generating a whole lot of cash the next year or so, and a lot of it's going to be coming back to the shareholder," Smith said.
Smith Also Likes:
Sandisk
Loews
______________________________ CNBC Data Pages:Track the Dow Technology Index HereComplete Earnings CoverageDow 30 Stocks—In Real Time
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______________________________ Disclosures:
Disclosure information was not available for Smith, Valdes or their firms.
______________________________
Disclaimer
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7805e62cfc591b641fe1f31e12474d8f | https://www.cnbc.com/2009/10/16/recession-will-be-fullblown-depression-strategist.html | Recession Will Be 'Full-Blown Depression': Strategist | Recession Will Be 'Full-Blown Depression': Strategist
This global recession will turn into a "full-blown depression," Nicu Harajchi, CEO of N1 Asset Management, said Friday, adding that global stimulus hasn't come down to Main Street.
Wall Street is making money, while consumers aren't, Harajchi told CNBC.
"We have seen the G20 coming out with cross border capital injections of $5 trillion this year… But a lot of this money hasn't really come down to Main Street," he said.
"When it comes down to corporate America, corporate Europe or even in Asia, in Japan, we are not seeing Main Street making any money," he said. "Consumers are losing their jobs. They are struggling with their mortgages, with their credit. And we are just seeing this continuing."
The $5 trillion injection is "monetary expansion," according to Harajchi. "At some point, which we believe to be 2010/11, some of the central banks are going to recall some of that money and that will turn from monetary expansion to monetary contraction."
He also said he doesn't see the corporates or the public "being able to pay back that debt."
"We see 2010 becoming a much more risky year than 2009," he said.
Harajchi said unemployment data are "a leading indicator" instead of a lagging indicator.
VIDEO8:3308:33Full-Blown Depression Looming?
Mike Lenhoff, chief strategist at Brewing Dolphin Securities, told CNBC that the recovery will depend on the improvement in cyclical sectors.
"The sooner companies generate their profits, and I think it is moving towards mainstream, it's not just the financials now," Lenhoff said. "If present trends continue, we're talking about jobs being created sometime in the second quarter of next year. That could do a lot for consumer confidence."
Weak Dollar is Everybody's Friend
It is no longer up to the U.S. but more to the rest of the world to decide about the dollar's status as the global reserve currency, Harajchi said.
China and the Gulf countries which have their oil pegged to the dollar "would like to see some other currencies, maybe the euro, playing a more dominant role," he said.
Lenhoff disagreed with Harajchi, saying he believes the dollar will continue to play a dominant role in global trade and global finance.
Central banks will continue to keep interest rates very low in order to avoid a depression, he said. The reason for the dollar's recent weakness "is really down to Fed policy," he added.
"The Federal Reserve has made it crystal clear that interest rates are staying where they are for an extended period of time. We're getting to see a more confident tone to global growth, to a recovery, and as a result of that, we're seeing the tolerance towards risk aversion drop and that in turn has washed back onto the dollar as investors go in search of risk assets," he said.
"This is something we're going to see for a while, until there is a change in Fed policy. That doesn't seem imminent and certainly it doesn't seem at all likely until sometime in the latter half of next year."
The dollar's depreciation will help boost the S&P 500 index over the coming quarters, Lenhoff told CNBC.
"A weak dollar is everybody's friend," he said.
"If the dollar serves the role of an additional stimulus in reflating the U.S, then I think that it's very good," he said.
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d39b3685fe2ca65376c6debd09ac175e | https://www.cnbc.com/2009/10/16/schork-oil-outlook-what-made-crude-jump.html | Schork Oil Outlook: What Made Crude Jump? | Schork Oil Outlook: What Made Crude Jump?
A headline from Platts summed up the NYMEX reaction beautifully…NYMEX crude jumps $2 on bullish EIA data. Refinery throughputs plummet on weak margins, seasonal maintenance.
We love it. That one simple headline succinctly sums the NYMEX paradox. Let’s dissect the diagram of this sentence, shall we?
Refinery throughputs plummet…
What does that mean to you? Let’s not overcomplicate this. To us here at , that means exactly what it says. Throughput, the amount of crude oil being put through the complex is plummeting.
…on weak margins…
The Carbon Challenge - A CNBC Special Report - See Complete Coverage
Okay, we get it. Refiners cannot make money on boiling oil. Therefore, they have stopped pushing oil into their tea pots… because they can’t make any money doing so.
…seasonal maintenance
Thus, even if refiners could pass on their exaggerated input costs to a vocationally challenged consumer, demand would be muted anyway.
Yet, somehow the EIA data is “bullish”. Why else would crude oil jump $2?
So who exactly was clamoring to own crude oil yesterday? The refiner, who cannot make any money with the crude oil already on hand, or Wall Street?; because, after all, crude oil is an inflation hedge and, oh yeah, those darn Chinese can’t get enough of 530 yuan oil? Right?
Read what other CNBC Contributors are saying...
_________________________
Stephen Schork is the Editor of, and has more than 17 years experience in physical commodity and derivatives trading, risk systems modeling and structured commodity finance.
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ebc145f2fa545e22cbf25daa12ae94b0 | https://www.cnbc.com/2009/10/16/start-trimming-back-on-equities-market-pro.html | Start Trimming Back on Equities: Market Pro | Start Trimming Back on Equities: Market Pro
Where do the markets go from here? Mike Williams, founder and managing partner at Genesis Asset Management, and Barry James, president of James Advantage Funds, shared their outlooks.
“The primary focus is investor psychology,” Williams told CNBC.
“We’ve got massive signs that the crowd simply doesn’t buy into the idea that we’re getting better—we’ll have ups and downs on the way and we’re going to have a couple of companies that miss here and there—but people are focusing on the misses rather than the positives,” Williams said.
James said risks are currently quite high and it’s time for investors to start trimming back on equity positions. (What would he keep? Scroll down for his picks.)
“We’ve just come off of a gusher in the market where we’ve had a huge run-up in a short amount of time,” he said.
“And history shows that they run about 6 months and you make 40 percent or more and then you tend to get a correction.”
More Market Intelligence:
These Large-Cap Techs Will Rule 2010: ManagerArt Cashin: Markets Face 'Long, Hard' Climb—No V-ShapeBlog: Here's When Money Will Pour out of Stocks
James said unlike in the past where the markets saw a “junk rally,” where stocks that were losing money and had fallen a lot being rally leaders, quality companies are beginning to reemerge.
CNBC Data Pages:
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“Companies with good earnings that are selling at reasonable valuations have been holding up well—and we see opportunities there,” he said.
“And precious metals where you have overseas sales and companies with high dividend yields. I think companies like those will do well in this environment even if we have a correction.”
Williams Likes:
S&P Technology
S&P Materials
S&P Industrials
James Likes:
SPDR Gold Trust
Cummins
CenturyTel
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______________________________ Disclosures:
No immediate information was available for James or Williams.
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6db820dd2a884aa3ecd6681d97bd0869 | https://www.cnbc.com/2009/10/16/stump-the-chump.html | Cramer found himself speechless – yes, a rarity – when two callers asked about companies this week that he didn’t know. But did some research and came back on Friday with the right call.
15 Rules for Playing Defense
The first was Hatteras Financial is a mortgage real estate investment trust that invests in mortgage-backed securities, and the company’s near 17% dividend yield is “a major red flag,” Cramer said. Wall Street doubts that Hatteras will be able to pay the dividend at its current level.
Regardless, here’s the bottom line on this stock: If you think the Federal Reserve will raise interest rates within the next two years – “it’s pretty much a given,” Cramer said – then Hatteras “will get pummeled.” The company’s mortgage-backed securities may be government guaranteed, but most of them don’t re-price for at least three years. That makes HTS too risky and, as a result, a sell.
Diodes , the second stock that stumped Cramer, is a buy. This low-cost semiconductor manufacturer has a history of outperforming the industry. The company upped its sales estimate for the quarter in early September thanks to strong demand for its chips, which go into LCD TVs, panels, set-top boxes, mobile phones and netbooks. While Cramer likes ON Semi more than Diodes, he still thinks the latter is a worthwhile stock to own.
Call Cramer: 1-800-743-CNBC
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28c498f4f6cb1c72c5d0338b36e2d896 | https://www.cnbc.com/2009/10/16/take-your-position-apple.html | Considering shares have climbed nearly 30% over the last 3 months, how should play Apple ahead of earnings?
The iPod and iPhone maker reports quarterly results on Monday after the bell and what a quarter it’s been.
Over the last 3 months, Apple CEO Steve Jobs made his first high-profile appearance, following a liver transplant in the spring. He unveiled new iPods, including a Nano with a built-in video camera, and announced a new version of iTunes.
The company also released a new version of the Mac computer operating system, Snow Leopard, and research groups IDC and Gartner reported Apple gained computer market share in the U.S. during the period.
Apple also announced it would start selling iPhones in China with wireless carrier China Unicom.
What should you expect?Morgan Keegan analyst Tavis McCourt tells Fast Money that he expects results will show Apple did well across the board. He believes that the new version of Snow Leopard jolted Mac sales more than expected, though iPods may fall short of expectations. However, overall, he expects Apple to handily beat the average Street view.
VIDEO0:0000:00Take Your Position: AAPL
What’s the trade?Although I like the stock and would be a buyer on dips, I don’t think I’d be buying aggressively into the numbers on Monday, counsels McCourt. I'm definitely a buyer of Apple, adds Steve Grasso. Once people buy an iPod then they get an iPhone and then a Mac. It's a virtuous cycle for this company. I'm also a buyer of Apple, says Joe Terranova. I think they report top line earnings that are great. Do not be afraid to own it. I think it goes higher.What do you think? We want to know!
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On Oct. 16th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (HGSI) Call Spread; Najarian Owns (XLF) Calls; Najarian Owns (YHOO) Call Spread; Najarian Owns (BAC); Najarian Owns (WFT) Calls; Grasso Owns (ASTM), (BAC), (C), (COST), (PRST), (V), (WMT), (FAZ), (XLF), (AAPL); Terranova Owns (SUN), (OIH), (HOC), (HES), (POT); Terranova Is Short (GRMN), (CCL)GE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBCFor Steve Grasso:Stuart Frankel And Its Partners Own (AIZ)Stuart Frankel And Its Partners Own (CUBA)Stuart Frankel And Its Partners Own (GERN)Stuart Frankel And Its Partners Own (MSFT)Stuart Frankel And Its Partners Own (NWS.A)Stuart Frankel And Its Partners Own (NXST)Stuart Frankel And Its Partners Own (NYX)Stuart Frankel And Its Partners Own (PDE)Stuart Frankel And Its Partners Own (PRST)Stuart Frankel And Its Partners Own (RDC)Stuart Frankel And Its Partners Own (ROK)Stuart Frankel And Its Partners Own (TLMStuart Frankel And Its Partners Own (XOM)Stuart Frankel And Its Partners Own (XRX)Stuart Frankel And Its Partners Own (SDS)For Joe TerranovaTerranova Works For (VRTS)Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Virtus Investment Partners Owns More Than 1% Of (XLY)Virtus Investment Partners Owns More Than 1% Of (CAL)Virtus Investment Partners Owns More Than 1% Of (CLB)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (XLI)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (XLB)Virtus Investment Partners Owns More Than 1% Of (DBA)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (UA)For Mike KhouwCantor Fitzgerald & Co. Is A Market Maker In (AAPL)Cantor Fitzgerald & Co. Is A Market Maker In (MSFT)Cantor Fitzgerald & Co. Is A Market Maker In (YHOO)CNBC.com with wires
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7d4176154ebd3b8d4cc5754693148002 | https://www.cnbc.com/2009/10/16/tell-me-this-isnt-a-top-in-gold.html | Tell Me This Isn't a Top in Gold | Tell Me This Isn't a Top in Gold
What's next? Neiman Marcus selling kruggerands? Tell me this isn't a top in gold: this week, the famed Harrod's department store in London announced that it would be...selling gold.
Check out Neiman's 2009 Holiday Catalog
Not gold jewelery. Gold bullion. In amounts from a gram...to a kilo...to a full-sized gold bar weighing 27.5 pounds, which will set you back roughly $450,000. You can buy gold coins, as well.
The gold can be stored using Harrods safe deposit services (starting at nearly $400 per year) or even brought home at the time of purchase.
Slideshow - The World's Biggest Gold Reserves
Harrods will BUY gold too. But read the fine print - it will only consider buying gold that it originally sold to customers.
Read here for more.
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The Dow 30 in Real TimeThe CNBC Stock Blog
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Questions? Comments? tradertalk@cnbc.com
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94dea551d45b5aa388570493fade587a | https://www.cnbc.com/2009/10/16/the-young-beautiful-forever-trade.html | If you think your face is destined to sag with age think again. A break though skin filler from Sanofi Aventis may be a game changer.The FDA has just approved Sanofi’s drug called Sculptra for cosmetic use. Widely used on patients who have become gaunt due to long-term illness, Sculptra can now be used by anyone who wants to turn back the hands of time and appear younger.
"Nothing works like Sculptra," says Brent Ragans of Sanofi-Aventis US. Sculptra has already won over some doctors and patients. One advantage is its longevity; it can last up to two years while rivals such as Botox last a year or less, adds Ragans. Another advantage is Sculptra’s ability to address broader depressions like sunken cheeks.
Doctors nationwide charge $800 to $1,200 per Sculptra, writes the New York Times which profiled the new treatment back in September. The paper also says “the drawbacks of Sculptra include the need for several treatments in some cases the need to massage the treated area for up to a week, and the risk of developing lumps beneath the skin.As for what all this means for Sanofi shares, well that remains to be seen.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On Oct. 16th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Najarian Owns (HGSI) Call Spread; Najarian Owns (XLF) Calls; Najarian Owns (YHOO) Call Spread; Najarian Owns (BAC); Najarian Owns (WFT) Calls; Grasso Owns (ASTM), (BAC), (C), (COST), (PRST), (V), (WMT), (FAZ), (XLF), (AAPL); Terranova Owns (SUN), (OIH), (HOC), (HES), (POT); Terranova Is Short (GRMN), (CCL)GE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBCFor Steve Grasso:Stuart Frankel And Its Partners Own (AIZ)Stuart Frankel And Its Partners Own (CUBA)Stuart Frankel And Its Partners Own (GERN)Stuart Frankel And Its Partners Own (MSFT)Stuart Frankel And Its Partners Own (NWS.A)Stuart Frankel And Its Partners Own (NXST)Stuart Frankel And Its Partners Own (NYX)Stuart Frankel And Its Partners Own (PDE)Stuart Frankel And Its Partners Own (PRST)Stuart Frankel And Its Partners Own (RDC)Stuart Frankel And Its Partners Own (ROK)Stuart Frankel And Its Partners Own (TLMStuart Frankel And Its Partners Own (XOM)Stuart Frankel And Its Partners Own (XRX)Stuart Frankel And Its Partners Own (SDS)For Joe TerranovaTerranova Works For (VRTS)Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Virtus Investment Partners Owns More Than 1% Of (XLY)Virtus Investment Partners Owns More Than 1% Of (CAL)Virtus Investment Partners Owns More Than 1% Of (CLB)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (XLI)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (XLB)Virtus Investment Partners Owns More Than 1% Of (DBA)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (UA)For Mike KhouwCantor Fitzgerald & Co. Is A Market Maker In (AAPL)Cantor Fitzgerald & Co. Is A Market Maker In (MSFT)Cantor Fitzgerald & Co. Is A Market Maker In (YHOO)CNBC.com with wires
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b55fa562b0cf9f17a590b63f56c84921 | https://www.cnbc.com/2009/10/16/tlc-network-says-it-is-suing-jon-gosselin.html | TLC Network Says It Is Suing Jon Gosselin | TLC Network Says It Is Suing Jon Gosselin
The TLC network says it's suing Jon Gosselin (GAHS'-lihn) for breaching his contract as star of the reality show "Jon & Kate Plus 8."
Jon & Kate GosselinAP
The lawsuit, filed Friday in Maryland, alleges that Gosselin hasn't met the obligations of his contract as an exclusive employee, has appeared on other programs for pay and made unauthorized disclosures about the show.
Gosselin has starred for two years in "Jon & Kate Plus 8," which has been consumed in recent months by marital turmoil as Gosselin and his wife, Kate, feuded, then filed for divorce. The couple are the parents of young twins and sextuplets.
Recently, TLC announced the show would be renamed "Kate Plus Eight," with a reduced presence by Jon Gosselin. A TLC spokeswoman, Laurie Goldberg, has said the show's longtime future remains in question.
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c69414b352cc1ad1d1448d6194db4f2d | https://www.cnbc.com/2009/10/16/tony-fratto-banking-on-healthy-banks.html | Tony Fratto: Banking On Healthy Banks | Tony Fratto: Banking On Healthy Banks
Was the point of the financial rescue that our banks should LOSE money?
With all of the hand-wringing this week about reported profits at JP Morgan and Goldman Sachs , it seems some people would be happier if our banks had reported losses instead of impressive gains.
It's a sign of the era of vengeance on Wall Street we're living in that such a return to health for these banks was met with winces instead of relief.
I'm not ignoring the fact that federal capital infusions last fall helped these banks survive the financial crisis, but it would be self-defeating and stupid if the result of that effort is to make U.S. financial firms uncompetitive.
Maria Bartiromo Interview's Treasury Secretary Tim Geithner
I'm also not ignoring the fact that banks are benefiting from extraordinary access to Federal Reserve funds and other ongoing financial rescue programs. Some banks have also benefited by capturing market share because of the absence of some of their competition - Bear Stearns and Lehman Brothers.
And no doubt it's a public relations incongruity to see banks reporting profits, provisioning for bonuses and the Dow hitting 10,000 as the unemployment rate creeps toward 10%.
But the sooner big banks return to health and profitability, the sooner the extraordinary federal programs go away, the sooner the taxpayers' investments get repaid -- at so far handsome profits, and the sooner Wall Street firms get back to the business of efficiently allocating capital that will fuel job growth in the future.
We need Wall Street to be better at how it performs this necessary role, we need it to be more humble, but make no mistake - the success of the U.S. economy is significantly dependent on Wall Street doing this job.
The uneasy relationship between our financial sector and the rest of the American economy isn't new. In fact it goes back to the very roots of building the nation. Hamilton and Jefferson fought this fight, and it has caught fire with regularity ever since.
But as Treasury Secretary Geithner said in his interview with Maria Bartiromo on CNBC yesterday, our economy depends on credit and for credit to be extended in ways that create jobs, grow businesses, and allow Americans to consume, we need healthy banks.
The most important communications challenge Wall Street firms have today is to effectively explain the important links between Wall Street and Main Street, and Main Street to the global economy.
______________________ Tony Fratto is a CNBC on-air contributor and most recently served as Deputy Assistant to the President and Deputy Press Secretary for the Bush Administration.
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ff48d670e5de1a5e51d1f4fdfd6c6249 | https://www.cnbc.com/2009/10/16/weak-dollar-an-economic-shock-absorber-strategist.html | Weak Dollar an Economic ‘Shock Absorber’: Strategist | Weak Dollar an Economic ‘Shock Absorber’: Strategist
Is a weak dollar necessarily negative for the economy? David Gilmore, partner at Foreign Exchange Analytics, shared his insights.
VIDEO0:0000:00Upside of a Down Dollar
The U.S. dollar recovered some of the week's losses on Friday, but had hit a 14-month low against the euro earlier this week.
Analysts attribute this to signs of global recovery driving investors to assets and currencies that promise higher returns than the low-yielding dollar.
“I’m not sure it solves problems, but it’s a shock absorber—it absorbs some of the strains on the economy,” Gilmore told CNBC.
CNBC Data Pages:
Dow 30 Stocks—In Real Time Oil, Gold, Natural Gas Prices Now Where's the US Dollar Today?
Gilmore said a weak dollar helps exports, earnings and multinational companies that translate their earnings overseas into dollars.
“We don’t have much inflation and a weak dollar is an import channel for inflation—it’s putting an upward pressure on commodity prices, so there’s a bit of a tax there,” he said. “But on balance, it’s what the doctor ordered.”
More Market Intelligence:
Byron Wien's 2009 Market Predictions: Was He Right?Prepping Your Portfolio For Next Week's EarningsArt Cashin: Rally Has Market Top Warning Signs
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General Electric*
GE's Investors Fret Over Firm's Real Estate Holdings
Wal-Mart
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What's Really Behind the Wal-Mart-Amazon Price War?
(*GE is the parent company of CNBC and CNBC.com.)
______________________________ Disclosures:
No immediate information was available for Gilmore or his firm.
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41adfee1095912cf26c5bccb7cfedf92 | https://www.cnbc.com/2009/10/16/whats-in-a-colormake-of-a-car-a-lot.html | What's in a Color/Make of a Car? A Lot | What's in a Color/Make of a Car? A Lot
2010 Ford TaurusSource: ford.com
For all the stories I do involving the auto industry, I'm always amazed at how many people will bring up how the auto makers pick the colors for future models and why some of those colors are popular in one part of the country, but not in another.
Hey, I get it. If purple looks weird on the streets of Miami, why wouldn't it look weird on the streets of Portland, Oregon.
So when Ford released its latest break down of the most popular colors and makes for different cities around the country, it contained a few eye-openers.
For example, the five most popular cities for the color brown are:
BostonMinneapolis Phoenix Chicago Pittsburgh
Meanwhile Red is tops in:
Cincinnati MinneapolisDetroit Kansas City Pittsburgh
Having once lived in the twin cities, and staying in touch with many friends in the cities, I brought up the fondness for brown and red cars. All of them laughed, and then a few admitted, "yeah, I've seen my fair share of red cars up here."
So what does it say about a city, or the people who live there, when they have a propensity to pick cars with a certain color? Why is Orlando the number #1 city for gold? Why do more people in San Francisco pick silver than in any other city? Some you can understand. For example, Phoenix is #1 for white, which is understandable given how hot it gets in the Valley of the Sun.
While Ford only gives a breakdown for 9 primary colors, It has me wondering what the demand is for other, more unique colors. Yes, I know Silver, Gray, and black will always be the main colors for car buyers. But don't kid yourself, there are still plenty of people who think lime green is the best color for a car.
Bookmark Alert: Track All the Dow Transports Here
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- Ford Motor
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Questions? Comments? BehindTheWheel@cnbc.com
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92aa7568c843463f89618ac76a4e8fa8 | https://www.cnbc.com/2009/10/16/why-traders-are-bullish-on-this-oil-refiner.html | Why Traders are Bullish on This Oil Refiner | Why Traders are Bullish on This Oil Refiner
Traders are making bullish bets on the Valero Energy options that expire at the end of today's session.
The oil refiner was up more than 7 percent on the session, closing at $20.15. Valero appears ready to make a run back up to the September highs just above $21 and continue its uptrend from July lows just above $15.
Options Tips from Jon NajarianRead The CNBC Stock BlogOptions Tips from Pete Najarian
Option traders were very active in the October 19 and 20 calls throughout the day, according to . More than 17,000 of the 19s traded and more than 30,000 of the 20s changed hands. The action at both strikes was well above open interest, indicating newly opened positions.
One of the biggest trades appeared to be one investor rolling up calls, selling profitable October 19 calls and putting some of that capital to work in the October 20s with the expectation of further increases today.
___________________________Options Trading School:
Options Terminology: GlossaryBasic Strategies — with ExamplesOptions Basics: The ABCs
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Valero Energy Competes With:
BP
Chevron
Exxon Mobil
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Chris McKhann is an analyst and writer for .
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7845bf5dba6b2f338d6e63f530afafb9 | https://www.cnbc.com/2009/10/17/cit-group-amends-debt-restructuring-offer.html | CIT Group Amends Debt Restructuring Offer | CIT Group Amends Debt Restructuring Offer
CIT Group, a major lender to small and midsize businesses that struggled under mounting losses and tight credit availability, amended its debt restructuring offer to enlist more bondholder support for the plan.
CIT Group inc.Photo by: Americasroof
The troubled New York-based lender had launched the debt restructuring effort Oct. 1 with the hope that it will trim at least $5.7 billion from its near-term debt. It is also asking bondholders to approve a prepackaged reorganization plan in case it is forced to file for Chapter 11 bankruptcy protection.
The company said in a statement late Friday that the debt exchange changes have the backing of its board and a steering committee of a bondholders.
CIT Group's losses have been mounting as its borrowing costs have outstripped its income amid the credit crunch. It has received $2.3 billion in federal bailout money.
Its customers range from Dunkin' Donuts franchisees to department store operator Dillards. It is also a short-term financier to about 2,000 vendors that supply merchandise to 300,000 stores, according to the National Retail Federation.
Some economists say the company's collapse could hurt a U.S. economy struggling to recover from recession.
CIT Group said the amended debt exchange terms include a mechanism to accelerate repayment of new notes and the shortening of maturities by six months for all new notes and junior credit facilities.
CIT had $54.09 billion in outstanding long-term borrowings as of June 30, including $13.85 billion due by June 30, 2010.
"Over the last two weeks, we have continued to work constructively with the steering committee and believe that these amendments will further build bondholder support for our restructuring plan," CIT Group Chairman and CEO Jeffrey Peek said in the statement.
He said the company "will reduce the uncertainty around or business" through either completing the debt exchange offers or an expedited in-court restructuring process.
On Tuesday, the company announced that Peek, 62, will resign at the end of the year. He has been with CIT Group since 2003.
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48b96bd776b913881f4f17603c9a6ffc | https://www.cnbc.com/2009/10/18/obama-said-not-to-be-demanding-public-health-option.html | Obama Said Not To Be Demanding Public Health Option | Obama Said Not To Be Demanding Public Health Option
President Barack Obama still believes a government-run health care option would best meet his reform goals but is not demanding that it be part of overhaul legislation, White House advisers said Sunday.
President Barack ObamaPhoto by: Pete Souza
The White House and lawmakers are trying to blend five House and Senate committee versions of health care legislation into a bill that will pass both houses, where near unanimous Republic opposition was expected.
House Democrats are insisting that there be a public option in competition with the private insurance industry to drive down the cost of coverage.
In the Senate, Republicans and some Democrats oppose the measure, meaning inclusion of the public option would foreclose winning the 60 votes needed to advance a bill.
Senior adviser Valerie Jarrett said Obama believes the public plan is still the "best possible choice," but she said he's not demanding it. David Axelrod, Obama's top adviser, said Senate opposition in both parties means "we have to work through these issues."
White House chief of staff Rahm Emanuel, who is deeply involved with congressional Democrats in trying to merge the various committee proposals, also appeared to set aside the public option.
"It's not the defining piece of health care. It's whether we achieve both cost control, coverage, as well as the choice," Emanuel said.
Labor groups say plans to finance health care reform by taxing insurance companies would end up costing middle-income Americans because the industry would simply pass along the taxes with higher premiums.
Emanuel, while not directly disputing that claim, insisted the Senate Finance Committee bill "hits the insurance companies and the high expansive and expensive plans."
Jarrett appeared on NBC's "Meet the Press" while Axelrod was on ABC's "This Week." Emanuel spoke on CNN's "State of the Union."
Meanwhile, Senator Chris Dodd (D-Conn.) voiced confidence Sunday that Senate leaders will include a government-run health insurance plan in the healthcare bill they bring to the full U.S. Senate for a vote -- and suggested it might even pass.
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a534d1ec596149bc99af533a3daad722 | https://www.cnbc.com/2009/10/18/ubs-registered-mail-warns-us-clients-on-tax-report.html | UBS Registered Mail Warns US Clients on Tax: Report | UBS Registered Mail Warns US Clients on Tax: Report
Swiss bank UBS AG warned U.S. customers by registered mail their account details may be given to U.S. tax authorities, a method that could itself breach secrecy laws, a Swiss paper said on Sunday.
UBS headquarters in Zurich, Switzerland.Steffen Schmidt
The use of registered mail and envelopes showing the sender was UBS could enable the U.S. authorities to trace customers wanted for tax evasion well before their details are handed over under a U.S.-Swiss double taxation agreement, Sonntag weekly paper said.
A spokesman for UBS declined to comment on the report.
Switzerland and the United States settled a row over evasion of U.S. taxes in August when Switzerland agreed to hand over details of 4,450 U.S. accounts at UBS.
But it could take into early 2010 before the first names are handed over under the agreed legal procedures.
Some 7,500 Americans voluntarily disclosed information about hidden overseas assets under a tax amnesty program that expired on Oct. 15, according to the top U.S. tax collector.
UBS had agreed in February to pay $780 million to settle a criminal investigation accusing it of helping American clients evade taxes.
At the same it agreed to release the names of about 250 clients in a first breach of Switzerland's banking secrecy.
Sonntag quoted lawyer Andreas Rued, who is representing some U.S. clients of the bank, as saying the use of registered mail and envelopes showing the name of the bank could constitute a contravention of Switzerland's banking secrecy laws.
He said he was considering whether to seek a criminal investigation against the bank. No one was immediately available at Rued's Zurich office.
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6d4812ed80afe343dbfdc8049fa3e13a | https://www.cnbc.com/2009/10/19/after-hours-action-apple.html | After hours, the traders poured over the latest earnings reports from Apple and Texas Instruments in an attempt to determine what they signaled for tech stocks going forward.
Considering Yahoo!, eBay, Amazon and many other technology firms are also scheduled to report later in the week, how should you game the space?
Tech Earnings This WeekMonday: Apple, Texas Instruments Tuesday: Yahoo!, Seagate Technology Wednesday: eBayThursday: Amazon, Netflix, AT&TFriday: Microsoft-------------
VIDEO0:0000:00Word on the Street
AFTER HOURS: APPLE
Shares of Apple leaped in extended trade sending shares above $200 for the first time since January 2008 after the tech titan reported profit and sales that blew past analysts’ forecasts.
The maker of the iPhone and iPod earned $1.82 a share in its fiscal fourth quarter, up from $1.26 a share in the same period last year.
Sales reached $9.87 billion in the most recent quarter, up from $7.895 last year.
This isn't just a one-quarter phenomenon, there's something bigger going on. There's a paradigm shift from a cell phone, a computer in your pocket. Apple's going to run away with that and ultimately, the numbers are going to be inching up as we go forward into 2010,” Gene Munster, senior research analyst at Piper Jaffray, tells CNBC.
What’s the trade?
I’m bullish Apple, says Pete Najarian. They have so much revenue potential going forward I can only think that more good things are down the road for this company. However, considering the stock’s recent run I don’t see how you can do anything but take some profits.
Mac sales were up something like 70%, adds Joe Terranova. That’s what matters to me. The Mac is a computer that’s purchased by consumers unlike Dell which is bought by businesses. I think it says consumers are okay.If you’re a long term investor the stock is likely going higher, says Guy Adami. I get the big picture story. However if you’re a trader and you want to take a shot, it might be a short .
That revenue beat is pretty good, muses Karen Finerman. And don’t forget they’re classic sandbaggers.
> For complete coverage of Apple earnings click here
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AFTER HOURS: TEXAS INSTRUMENTS
In extended trade Texas Instruments gained as much as 2% after the company beat earnings forecasts Monday and posted better-than-expected revenue.
The chipmaker earned 42 cents a share in its third quarter on sales of $2.88 billion, compared with 43 cents a share on sales of $3.39 billion in the same period last year.
"Our performance in the quarter exceeded our expectations and was led by a second consecutive quarter of 20-percent growth in Analog," said Rich Templeton, chairman, president and CEO, in a press release. "We are encouraged with the strong sequential increase in demand for our products over the past two quarters as our customers are winding down their inventory corrections and have begun to increase production levels in their factories."
"This revenue growth, combined with our early actions to pare costs so that we would not be dependent upon an uncertain rebound in the overall economy, has resulted in solid improvements in our profitability," he added.
What’s the trade?
That’s a good quarter, says Guy Adami, and I still like this stock. I can’t say initiate a long position at these levels but I do think they have a lot of good things going for them.
In the space, I’d look at Broadcom , adds Joe Terranova. The results from TXN as well as Intel set up well for Broadcom. It seems to suggest strength among consumers, muses Pete Najarian. That’s what I takeaway from these results.> For complete coverage of Texas Instruments earnings click here-------------
STOCKS HITS NEW '09 HIGHS
The S&P closed at a fresh 12-month highs on Monday as optimistic investors rode a wave of solid quarterly results.
Better-than-expected earnings from Gannett buoyed the sentiment of investors looking for confirmation the economy is stabilizing."It's all about earnings, and it's all about momentum," muses Bruce Bittles, chief investment strategist at Robert W. Baird. "Investor optimism is really rising rapidly now for the first time since the March lows, and I think a lot of money is bursting off the sidelines as a result."
What’s the trade?It just seems to me that the market only wants to go higher, says Karen Finerman. And I agree there’s money on the sidelines coming into this market chasing returns.
The money that’s on the sidelines didn’t want to see all this good news, adds Pete Najarian. They are definitely chasing.
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DOLLAR HITS NEW 14 MO. LOW
The dollar hovered near a 14-month low against the euro on Monday as investors bet the Federal Reserve will hold U.S. interest rates near zero well into next year.
The euro traded within half a cent of $1.50, a level not seen since August 2008. Analysts said investors would be on alert for any comments about excessive euro strength from a meeting of euro zone finance ministers later in the day.
Though the U.S. economy is expected to have exited recession in the third quarter, investors fear rising unemployment will keep the Fed from lifting interest rates quickly. That would diminish the dollar's appeal and encourage investors to buy higher-yielding, higher-risk currencies and assets instead.
"The trend clearly is for a weaker dollar due to a lack of interest rate support," said Marcus Hettinger, global currency strategist at Credit Suisse in Zurich.-------------
TOPPING THE TAPE: RETAIL ON THE RAMPAGEThe S&P retail index hit a new post-Lehman high on Monday with retailers rising despite record oil prices and new reports which suggested Christmas spending could be weak.
Meanwhile, off-price retailer TJX raised its forecast for third-quarter earnings on Monday above analysts' estimates, saying sales in October were coming in significantly above its expectations.
What’s the trade?
I like TJX, says Pete Najarian. I think there’s more upside. -------------
TOPPING THE TAPE: (CAT) STOCK FEVER
Adding to Monday’s positive tailwind, BofA-Merrill raised its price target for Caterpillar to $65 from $52 and increased its 2010 and 2011 earnings expectations, citing a faster recovery in machinery revenue next year. Caterpillar is set to report results on Tuesday.
What’s the trade?My sense is that CAT will probably beat, says Guy Adami. But I wouldn’t be piling into this name.-------------
OIL HITS NEW ’09 HIGH
U.S. crude oil futures see-sawed in choppy trading on Monday, reacting to technical resistance encountered around $79 a barrel even as economic optimism and the weak dollar continued to lend support.
What’s the oil trade?
Last week crude oil broke above resistance at around $76.50, says Katie Stockton on the Halftime Report. If that breakout is confirmed on a close it would suggest the path is clear of resistance and the next level would be mid $80’s. In other words $84 may be the next stop for oil.
Oil is working as is the overall commodities trade, adds Joe Terranova. I think in the fourth quarter we see those managers chasing performance in this space and it could send the entire sector, higher.
I’m watching Walter Energy, says Guy Adami. I think it’s a buy on pullbacks. And I’m bullish on Apache.
I know that Weatherford traded lower in an up-tape, but that’s because they have a great deal of nat gas exposure, adds Karen Finerman.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On October 19, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Finerman Owns (AAPL); Finerman's Firm And Finerman Own (RIG), (PDE); Finerman's Firm Owns (MSFT), (NOK), (TJX); Finerman's Firm Owns (BAC) Preferred, (BAC) Call Spread, (BAC); Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (BBT) Puts; Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm And Finerman Own (WMT); Finerman's Firm Owns (BKS) Puts; Finerman's Firm Is Short (USO), (IJR), (MDY), (SPY), (IWM), (UNG); Najarian Owns (GE) Calls; Najarian Owns (HGSI) Call Spread; Najarian Owns (POT) Call Spread; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (WFT) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), Is Short (YHOO) Calls; Najarian Owns (TEX) Call Spread; Terranova Owns (HES), (HOC), (SUN)GE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBCFor Joe TerranovaTerranova Works For (VRTS)Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Virtus Investment Partners Owns More Than 1% Of (XLY)Virtus Investment Partners Owns More Than 1% Of (CAL)Virtus Investment Partners Owns More Than 1% Of (CLB)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (XLI)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (XLB)Virtus Investment Partners Owns More Than 1% Of (DBA)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (UA)For Jeffrey BernsteinAccounts Over Which Bernstein And/Or Affiliates Exercise Investment Discretion Own More Than 1% Of (AMZN), (GOOG)Bernstein Is A Market Maker In (AMZN), (EBAY), (GOOG), (YHOO)For Whitney TilsonFunds Managed By Tilson Own Berkshire HathawayFunds Managd By Tilson Own (MSFT)Funds Managed By Tilson Own (PFE)CNBC.com with wires
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7b7023a44434e70d07c1d65925b933ec | https://www.cnbc.com/2009/10/19/amgens-party-pooper.html | Amgen's Party Pooper | Amgen's Party Pooper
In case you weren't aware, tomorrow is "World Osteoporosis Day" or WOD, for short, as the International Osteoporosis Foundation hilariously refers to it, but biotech Amgen won't be celebrating the occasion.
Amgen
Had the FDA today approved AMGN's twice-a-year injectable bone drug, Prolia, the champagne corks would have been popping. But instead, the FDA handed Amgen the dreaded CRL.
What's that, you ask? CRL replaced the old approvable letters. The terminology was a bit confusing. People would see the word approvable and think, "Oh, good!" But it wasn't.
Approvable was a euphemism for delay as in, "We might approve the drug sometime down the road, if/when you dot an i or cross a t and/or provide us some more information/data."
This morning Amgen announced that the FDA wants more details on how the company will monitor patients once Prolia is on the market. And the agency requested Amgen do another study to see if Prolia works at preventing osteoporosis.
It was the second CRL to be disclosed this morning. Novartis got one, too. NVS' is for a one-a-day inhaler to treat COPD, or what some more broadly refer to as smoker's cough.
Novartis would only say that the agency wants more info on the dosing. Sometimes companies fully disclose what's contained in a CRL, sometimes they reveal some or a little bit of information and other times nothing at all. I suspect that both companies got their respective CRLs last Friday or over the weekend since both press releases hit the wires bright and early.
Biopharma companies, it seems, have gotten so used to getting an approvable letter or CRL, that they all reach into the drawer and pull out the same press release template and just fill in the blanks. For example, Amgen says it "will work with the FDA to determine the appropriate next steps...." And Novartis says it "will continue to work closely with the FDA...." I guess Novartis must have a cozier relationship with regulators than Amgen. Kidding. Kidding!
P.S. Please tune in to CNBC's "Power Lunch" at noon ET for my exclusive interview with Pfizer Chairman and CEO Jeff Kindler after the company reports earnings Tuesday morning.
Questions? Comments? Pharma@cnbc.com and follow me on Twitter at mhuckman
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32e013069bf7ce09e9a0e63815daadb8 | https://www.cnbc.com/2009/10/19/analyst-upgrades-push-media-stocks-higher.html | Analyst Upgrades Push Media Stocks Higher | Analyst Upgrades Push Media Stocks Higher
It's been a major media Monday—Wall Street analysts have been upgrading media conglomerates left and right. The stocks have been benefiting, gaining more today than the major indices.
While the Dow finished Monday up about one percent, CBS is up more than 4 percent for the day, Time Warner is up about 3.5 percent, and Disney and Viacom are both up more than 1.5 percent. After the media sector has suffered from concerns about a weak ad market, viewers shift to the web, and the question of how to monetize digital distribution, now the business is looking up.
At Morgan Stanley, analyst Ben Swinburne reiterated his "attractive industry view" of the media sector, raising his projections for ad growth in 2010 from 2 percent to between 4 percent and five percent. While the pullback in auto ads has been a real drag on the sector, Swinburne says a resurgence in auto advertising and a strong political spending year will bolster results.
Swinburne also expects the consolidation trend in the media sector, plus more share repurchases to benefit valuations. His top picks are, in this order, Disney, CBS, and Time Warner.
Over at UBS, Michael Morris also predicts improving ad trends, and expects upcoming earnings to show proof of that progress. He says the announcements by smaller, pure-play media companies in the next few weeks -- including Media General on Wednesday and The New York Times on Thursday -- should give a good sense of the positive news to come from large cap media stocks as they begin reporting on November 3rd.
All in, Morris expects a negative 9 percent growth rate for the media universe in the third quarter, an improvement from the negative 12 percent growth rate in the second quarter.
Group of Securities
RBC Capital Markets David Bank upgraded Viacom to "Outperform," anticipating margin expansion in 2010. Bank is looking for video game Rock Band to be profitable and for some exchange rate benefits to materialize. He also points out that though Viacom is largely a cable stock -- just a small portion of its earnings are from its movie studio-- it trades at a discount to pure-play companies Discovery and Scripps.
Bank also updated his outlook on Discovery, increasing his price target for the stock. For Disney Bank has increased his Fiscal 2010 "core estimates" for the studio and consumer products division, but his EPS estimates are now two cents lower, accounting for the incorporation of the Marvel acquisition.
Questions? Comments? MediaMoney@cnbc.com
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68079b7195a770f72c1cf8e2d1ad83b4 | https://www.cnbc.com/2009/10/19/apple-earnings-are-simply-stunning.html | Apple Earnings Are Simply Stunning | Apple Earnings Are Simply Stunning
Apple needed a big report, and it posted it. Huge. The company reported $1.82 versus the $1.42 expected, on $9.87 billion in revenue.
Apple EarningsCNBC.com
One word: Wow.
And guidance was equally impressive, even for a sandbagger like Apple. The EPS range of $1.70 to $1.78 might have been below the Street's $1.91, but it was nearly as low as what some analysts were whispering.
And that's because the revenue range was *gasp, in line with the Street's $11.4 billion, offering $11.3 billion to $11.6 billion.
For Apple to even offer ballpark guidance like that borders on monumental.
Meantime, individual units were stellar. The 3.05 million Macs sold and 7.4 million iPhones are the most for each category in any quarter, and Apple is actually entering its seasonally strongest quarter now. And the iPod number was certainly no slouch, with Apple selling 10.2 million of them, which was much better than the 9.9 million expected.
Apple's gross margin came in at 36.6 percent. The Street was just shy of 36 percent.
You don't want to gush too much about a company, but with shares up 8 percent on the news, to a new, all-time high in an economy like this one, it's kind of difficult not to marvel. All of sudden, those $250 targets seem reasonable. Kind of like the way those $700 targets seemed reasonable as far as Google is concerned.
There will always be naysayers. But the proof is in the balance sheet. These numbers are simply stunning. Period.
Questions? Comments? TechCheck@cnbc.com
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cca1ff8fe0acd34379d8eb6bd5b22141 | https://www.cnbc.com/2009/10/19/apples-earnings-preview.html | Apple's Earnings Preview | Apple's Earnings Preview
How many iPhones have to be sold for a successful third quarter earnings season at Apple? We’ll find out this afternoon, when the company reports after markets close at 4pm ET.
Analysts point to the iPhone as a key part of today’s earning report. It has quickly eclipsed other Apple products, including the iPod, in terms of sales.
Gene Munster of Piper Jaffray will discuss his outlook for Apple on "The Closing Bell." He’s expecting iPhone sales will have reached 7.5 million units, and Mac computer sales of 2.8 million units. A Thomson Reuters survey forecasts $9.2 billion in total revenue for the third quarter, and EPS of $1.42.
While the outlook for Apple’s Q3 earnings report is optimistic, what about the stock? According to Fifth Third Asset Management’s Scott Billeadeau, every investor should have a place for Apple in their portfolio. He sees continued upside potential for the stock. More broadly, Scott dismisses concerns that the tech trade has become too crowded. He expects the sector to remain a market leader.
We’ll bring you the latest on Apple when earnings are released after markets close. CNBC Silicon Valley Bureau Chief Jim Goldman as those numbers break.
John Cook contributed to this article.
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d8906207115e6ffea94ea85ee1275ab7 | https://www.cnbc.com/2009/10/19/arrest-of-hedge-fund-chief-unsettles-the-industry.html | Arrest of Hedge Fund Chief Unsettles the Industry | Arrest of Hedge Fund Chief Unsettles the Industry
For years, whenever anyone asked Raj Rajaratnam about the success of his hedge fund, the Galleon Group, he chalked it up to being hungrier than everyone else.
Raj Rajaratnamcnbc.com
“It is pride, and I want to win,” Mr. Rajaratnam said in “The New Investment Superstars,” a book by Lois Peltz published in 2001. “After awhile, money is not the motivation. I want to win every time. Taking calculated risks gets my adrenaline pumping.”
Now prosecutors are claiming that Mr. Rajaratnam, 52, crossed the line into criminal activity.
At dawn on Friday, Mr. Rajaratnam was arrested at his expensive Manhattan home, charged with running the biggest insider trading scheme involving a hedge fund. He and five others are accused by the Justice Department and the Securities and Exchange Commission of relying on a vast network of company insiders and consultants to make more than $20 million in profit from 2006 to 2009.
Mr. Rajaratnam’s lawyer has said his client is innocent. He is free on $100 million bail and is expected to be in the office Monday to address Galleon employees.
In 2007, Mr. Rajaratnam’s name arose in connection with an inquiry into fund-raising for the Tamil Tigers, the Sri Lankan rebel group that was defeated in May after a quarter-century of violence.
News of Mr. Rajaratnam’s arrest has also shaken the secretive hedge fund world, in which intelligence on companies is often shared among Wall Street analysts, traders and other investors.
“The defendants operated in a cozy world of ‘you scratch my back, I’ll scratch your back,’ ” Preet Bharara, the United States attorney for the Southern District of New York, said on Friday. He added that the case should be a “wake-up call” for hedge fund managers who even think about insider trading.
VIDEO0:0000:00Hedge Funds in the Crosshairs
Hedge funds often use lobbyists, investigators and other connected people to dig for information about a company or industry.
Most of the information is obtained legally. But the government’s use of wiretapping and confidential witnesses in the Galleon case raises questions about when investors can act on nonpublic information. The case also signals a new zeal by authorities to clamp down on Wall Street crime after failing to detect the $68 billion Ponzi scheme by Bernard L. Madoff.
At the center of this purported insider trading ring is Mr. Rajaratnam, who rose from a technology analyst to become a hedge fund billionaire.
Mr. Rajaratnam always remained close to his homeland, Sri Lanka, which was riven by fighting between its government and the Tamil Tigers, formally known as the Liberation Tigers of Tamil Eelam. The hedge fund manager often reached into his wallet for causes related to the country. When the island was struck by a tsunami in 2004 — he had been there at the time, but was inland — he organized a charity to raise money to rebuild homes.
In 2004, he also helped raise $120,000 to buy dogs to detect land mines littered throughout Sri Lanka.
Yet his giving was not without controversy. In 2005 and 2006, the charity he created, Tsunami Relief, gave $1.5 million to the Tamil Rehabilitation Organization, a group officially dedicated to helping victims of the fighting. But prosecutors have since charged the Tamil charity with aiding the rebel group, and its nonprofit status has been suspended.
A criminal complaint filed in Brooklyn federal court in 2007 described an “Individual B” who donated $2 million to the terrorist group in 2000 and 2004. People briefed on the matter confirmed a report by The Wall Street Journal that Individual B was Mr. Rajaratnam, who was never charged. Several defendants in that case have pleaded guilty to raising money for the Tigers.
A lawyer for Mr. Rajaratnam, James Walden of Gibson, Dunn & Crutcher, said in a statement that his client was not a Tiger supporter and that the money had been spent on “rebuilding thousands of homes for Tamils, Sinhalese and Muslims without discrimination.”
Within the hedge fund industry, Mr. Rajaratnam was long known for his expansive contacts within the technology sector.
People close to the company describe the pressure within Galleon as intense, with Mr. Rajaratnam demanding long hours and highly detailed research reports.
A Rogues Gallery of Financial Crime
By the time he was arrested, Mr. Rajaratnam had cemented his position as a member of New York’s financial elite. Forbes estimated his net worth this year at $1.3 billion, earning him a spot on its list of richest people in the world. He donated more than $30,000 to Barack Obama, Hillary Rodham Clinton and the Democratic Party in 2008.
And he sat on multiple charity boards, including those of the Harlem Children’s Zone and the American India Foundation.
Mr. Rajaratnam built his fortune from the ground up: born in Sri Lanka, he was sent away for schooling, including at the Wharton School at the University of Pennsylvania. He became a technology analyst at the investment bank Needham & Company, rising through the ranks to become president. In 1992, he began a hedge fund for Needham clients, many of whom were technology executives themselves.
Mr. Rajaratnam left the firm in 1997, but took the fund and called it Galleon, after the Spanish empire’s ships used to ferry gold and spices from the New World.
Several of Galleon’s employees had an engineering background, like him. Many outside analysts envied the extensive research reports their counterparts at Galleon produced, culled from regulatory filings, checkups on supply chains and sources within the companies they covered. At its peak, the firm managed $7 billion in assets, but that figure has since fallen to about $3.7 billion.
The firm made no secret that its investors included technology executives. Among them was Anil Kumar, a McKinsey director who did consulting work for Advanced Micro Devices and was charged in the scheme. Another defendant, Rajiv Goel, is an Intel executive who is accused of leaking information about the chip maker’s earnings and an investment in Clearwire.
Prosecutors also say that a Galleon executive on the board of PeopleSupport, an outsourcing company, regularly tipped off Mr. Rajaratnam about merger negotiations with a subsidiary of Essar Group of India. Regulatory filings by PeopleSupport last year identified the director as Krish Panu, a former technology executive. He was not charged on Friday.
Galleon has previously been accused of wrongdoing by regulators. In 2005, it paid more than $2 million to settle an S.E.C. lawsuit claiming it had conducted an illegal form of short-selling.
Ashlee Vance contributed reporting.
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dbeb4c3e70e7a366ce9092aca1558b59 | https://www.cnbc.com/2009/10/19/bernanke-urges-us-to-start-cutting-record-budget-deficit.html | Bernanke Urges US to Start Cutting Record Budget Deficit | Bernanke Urges US to Start Cutting Record Budget Deficit
Federal Reserve Chairman Ben Bernanke on Monday called for the United States to whittle down its record-high budget deficits and for countries like China to get their consumers to spend more, moves that would help combat skewed global trade and investment flows that contributed to the financial crisis.
US Federal Reserve Board Chairman Ben S. BernankeAP
Bernanke's remarks to a Fed conference in Santa Barbara, Calif., comes just days after the federal government on Friday reported a $1.42 trillion deficit for 2009 budget year that ended Sept. 30. The previous year's deficit was $459 billion.
The Fed chief's comments were aimed at reducing global imbalances, and echo pledges made by leaders of the Group of 20 nations at their summit in Pittsburgh last month.
"As the global economy recovers and trade volumes rebound, however, global imbalances my reassert themselves," Bernanke warned. For the United States' part, "the most effective way" to boost national savings in this country "is by establishing a sustainable fiscal trajectory, anchored by a clear commitment to substantially reduce federal deficits over time," Bernanke said. He didn't suggest ways to do so.
And, for trade surplus countries like China and most Asian economies, they need to get their consumers to spend more and rely less on export-led growth, Bernanke said.
"In large part, such action should focus on boosting consuption," Bernanke said.
» Slideshow: The Biggest Holders of US Government Debt
The bulk of Bernanke's remarks largely offered a scholarly assessment of Asia and how it fared during the global financial crisis, the focus of the Fed's conference. The Fed chief didn't discuss the state of the U.S. economy or the future course of interest rates.
Bernanke and his colleagues last month held a key bank lending rate at an all-time low near zero and pledged to hold it there for an "extended period." Many economists believe that means through the rest of this year and into next year.
Deciding when to boost interest rates and reel in the unprecendented amount of money plowed into the U.S. economy will be one of the biggest challenges facing the Fed in the coming months. Remove the supports too soon and the recovery could be derailed. Leave the supports in place for too long risks unleashing inflation.
In terms of the world economy, "Asia appears to be leading the global recovery," Bernanke said. "Recent data from the region suggest that a strong rebound is, in fact, under way."
Many economists predict the U.S. economy — the epicenter of the financial crisis —started growing again in the third quarter at a pace of at least 3 percent, and is still expanding in the current quarter. Economic activity contracted in the second quarter at an annualized rate of 0.7 percent, marking a record four straight quarters of decline.
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b43c886c3f05c3ffe5c49bb803804188 | https://www.cnbc.com/2009/10/19/california-official-no-plan-to-ban-bigscreen-tvs.html | California Official: No Plan to Ban Big-Screen TVs | California Official: No Plan to Ban Big-Screen TVs
Despite widespread reports in the media, California is not planning to ban the sale of large-screen TVs, an Energy Commission spokesman said.
The reports—in several California-based news outlets in the past week—stirred outrage among California residents, who saw this as another attempt by state government to regulate their personal lives. California's move, an attempt to cut down on energy use, was also being studied by several other states, including Massachusetts.
In reality, California is planning to impose tougher power-consumption standards on TVs with screen sizes of 58 inches or less, according to Adam Gottlieb, a spokesperson for the Energy Commission.
"Screens greater than 58 inches are not being considered at this time," he added.
In a public hearing last Tuesday, both the CEC and the Consumer Electronics Association (CEA) that represents the consumer electronics industry presented their cases before the commission.
The CEC cites both cost savings in electric bills to the state's residents and reduced power consumption, which continually prove a challenge to the state's troubled power grid.
While the savings per consumer per television come to a modest $18 to $30 annually, the proposed rulings are expected to reduce power consumption statewide by 6,515 gigawatt hours while avoiding the construction of a $615 million natural gas power plant. According to the CEC, 6,515 gigawatt hours is sufficient to power 864,000 single-family homes for a year. The savings in power would also result in a reduction of 3.5 million metric tons of CO2 emissions.
The CEC's proposed ruling take effect in two tiers. The first tier will come into effect on January 1, 2011, while the second tier will take effect January 1, 2013.
Arguing that the proposed regulations are unnecessary, arbitrary and an impediment to innovation, the CEA contends that the voluntary Energy Star program has already been successful in reducing the power consumption of consumer electronic goods while offering the flexibility necessary for innovative product development.
"None of us knows the future or the impact of new display technologies in a highly innovative industry. If similar regulations had been in place ten years ago, LCD and plasma technology would have never made it to market," said Jennifer Bemisderfer, a spokesperson for the CEA.
"As it is, these regulations stand to delay the availability of innovations like 3D-TV and Internet-enabled TV in California."
The CEC however, maintains that the rulings are realistic, being less stringent than the upcoming Energy Star 4.0 and 5.0 requirements while coming into effect later.
The New York Times reported yesterday that an internal audit by the Energy Department concluded that manufacturer compliance with its Energy Star program has not been properly enforced.
In light of this development, Bemisderfer said that the CEA is "not aware of any problems with the Energy Star program for consumer electronics," adding that "what we have is a very well functioning program with marketplace verification systems already in place."
A study was also commissioned by the CEA and conducted by the economic consulting firm, Resolution Economics LLC. The study found that the proposed rulings could result in the loss of $50 million in state tax revenue and 4,600 retail jobs in California due to consumers resorting to out-of-state or online stores to purchase non-compliant televisions.
In response Gottlieb countered that online stores that sell merchandise to California residents will have to comply with California law. Gottlieb claimed that energy efficient models that offer equal or better performance will be widely available and cost manufacturers little or no more to produce, citing a list of compliant models that number over 1,000.
"The claims in the report are simply baseless," said Gottlieb. "The report, commissioned by the CEA, assumes that televisions that do not comply with the proposed efficiency standards will simply go away leaving shelves bare."
The CEC could vote on the proposed ruling as soon as November 4, 2009.
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e8e89d8cfc2ff347afc8094a0b168dce | https://www.cnbc.com/2009/10/19/citigroup-could-lose-20-billion-mexican-unit-report.html | Citigroup Could Lose $20 Billion Mexican Unit: Report | Citigroup Could Lose $20 Billion Mexican Unit: Report
Citigroup could be forced to sell its Mexican subsidiary Banamex as Mexico’s Supreme Court is set to investigate claims that the U.S. government's involvement is illegal, according to a report in the Financial Times.
The U.S. government bailout of Citi has placed the unit in breach of national law, which bars foreign governments from owning stakes in domestic banks, the report said.
The loss of Banamex would be a severe blow for Citi, as the unit accounts for roughly 15 percent of global profit and could be worth some $20 billion, the paper wrote.
If Citi is found to be in breech of the law, it could have similar implications for the likes of AIG, Bank of America and Bank of New York Mellon, according to the FT. European banks such as Royal Bank of Scotland also operate in Mexico’s banking sector and have government investment.
Banamex, or Banco Nacional de Mexico, is the country's second-largest bank and a symbol of national identity as it spent much of its history in state control.
The Mexican finance ministry has previously passed a ruling stating that Banamex’s status was acceptable because the U.S. aid was circumstantial and transitory, the FT said. But opposition senators now say they want the Supreme Court to decide whether that ruling is constitutional.
If the decision goes against the ministry, it could ultimately end in legislation forcing Citi to sell a stake of Banamex or all of it, the FT said, citing experts.
“The Mexican ministry of finance has concluded that we are in compliance with Mexican law ... In addition, our goal is to repay Tarp as soon as possible, and that will put the entire issue to rest,” a Citi spokesperson told the Financial Times.
Slideshow: World's Safest Banks
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1a3a2a55a429e33efb63a7de7c4a2655 | https://www.cnbc.com/2009/10/19/dole-foods-ripe-for-ipo.html | Dole Foods will reenter the public market this week, Cramer said Monday, and the stock “should probably trade at a premium to the other produce companies.”
Cramer's 12 Stocks to Play the Recovery
Dole, trading under the ticker symbol DOLE, is expected on Wednesday to price 35.7 million shares between $13 and $15. He urged investors to “buy as much as you can get your hands on at that level.” If Dole were to trade inline with its peers, such as Chiquita and Fresh Del Monte , the stock would be worth $20.37, or about 46% higher than the midpoint of that range. But he thinks DOLE is a better company than those two.
VIDEO0:0000:00Know Your IPO
Dole Foods is either number one or two by market share in most of the categories in which it competes. Two-thirds of its packaged-food products are still on the shelf nine years after launch, while competitors find success only 20% of the time – after just one year. Also, seventy percent of Dole’s sales are from fruit, and Cramer predicts that as the world gets wealthier that business will continue to grow. A fun factoid to back it up: The developed Western world eats twice the fruit per capita than most developing countries.
Management at Dole was smart about its balance sheet, too, paying down debt to $1.6 billion from $2.3 billion. Also, the IPO’s proceeds will go to clearing up still more debt, and the next bond maturity isn’t until 2013.
Speaking of management, Chairman David Murdoch plans to retain 59% of the company’s ownership even after the offering. And he’s not selling a single share either. The fact that a profit-hungry private-equity firm isn’t behind this deal is a key selling point for Cramer.
So how do you play it? Make sure you get in on the actual offering. There’s no point in paying up for the stock, or worse, chasing it in the aftermarket.
“I know my IPOs,” Cramer said, “so you’d better pay attention when I tell you to try to get some Dole Foods.”
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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80d6175b557f1494aaed826d2b3dbb6a | https://www.cnbc.com/2009/10/19/earnings-preview-apple-texas-instruments.html | Earnings Preview: Apple & Texas Instruments | Earnings Preview: Apple & Texas Instruments
We're bracing for some key technology earnings after the close today, with quarterly results from Apple and Texas Instruments.
Apple's fiscal fourth quarter report will see much of the attention focused on the iPhone and its outlook for the holiday season. Analyst polled by Thomson Reuters expect Apple to report earnings of $1.42 a share and revenues of $9.2B. It's going to be a numbers game and Gene Munster, Senior Research Analyst at Piper Jaffray expects the iPhone shipments during the quarter to hit 7.5 million. His forecast is for Mac shipments to hit 2.8 million.
Other important gauges for Munster:
Guidance (he notes that Apple typically guides down relative to where the Street is)Steve Jobs increased presence at workTablet PC in 2010
For Texas Instruments , analysts surveyed by FactSet Research expect earnings of 39 cents a share on revenue of $3.4B. Scott Billeadeau, Managing Director at Fifth Third Asset Management is watching to see if the chip giant is benefiting from an economic rebound. As a stock play, Billeadeau says the stock has some ways to go, with expectations proving to be too low. He thinks TXN will be a "later-cycle play".
With technology as the main leadership sector right now, we'll be watching to see if this latest set of earnings will give the sector an additional boost. Tune in to Closing Bell at 3:40pm ET as we preview tech earnings with Munster and Billeadeau. We'll also be breaking down the earnings from Apple and Texas Instruments live at 4:30pm ET.
Gene Munster and Piper Jaffrey do not own any stock in Apple. Scott Billeadeau doesn't own any shares in Texas Instruments but Fifth Third Asset Management owns TXN in its funds.
Liza Tan contributed to this article.
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a183ff2c8c29e05da8984ab56f3b1240 | https://www.cnbc.com/2009/10/19/erste-group-launches-campaign-on-cnbc.html | Erste Group launches campaign on CNBC | Erste Group launches campaign on CNBC
CNBC, the leading business and financial news channel, has teamed up with Austrian based retail bank, Erste Group Bank AG, to launch a three-week campaign around CNBC’s Eastern European programming, called Emerging Europe. Erste Group is one of the largest financial services providers in Central and Eastern Europe. The campaign will run across Europe, the Middle East and Africa from 26 October.
Erste Group’s campaign around Emerging Europe includes spot ads and sponsored hotboards, featuring market updates from the Eastern European region. In addition, Erste Group will sponsor a series of 30-second vignettes, which will include interview highlights from Emerging Europe.
Emerging Europe is a week-long focus, starting 2 November. CNBC’s Steve Sedgwick will report live from Austria, Hungary, Poland and Slovakia and will interview leading CEOs, central bank governors, finance ministers and prime ministers from the region on a range of issues including how the CEE countries have been affected by the current economic climate. Reports will also focus on the 20th anniversary of the fall of the Berlin Wall, how the region has evolved since then and the outlook for these economies.
Paul Maraviglia, Vice President Sales EMEA at CNBC said, "We are delighted that Erste Group has chosen to run a campaign around Emerging Europe. This is a perfect example of how we’re able to closely align a client with engaging content aimed for senior business leaders.”
Philip List, Head of Group Marketing at Erste Group, commented, “We are very pleased to be working with CNBC on this campaign. It allows us to spotlight the economic growth potential of our home market and why we haven’t changed our positive view on this region.”
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7740e14f004b1567540bada2e69a1b67 | https://www.cnbc.com/2009/10/19/foreclosed-exhomeowners-turn-to-shelters.html | Foreclosed Ex-Homeowners Turn to Shelters | Foreclosed Ex-Homeowners Turn to Shelters
The first night after she surrendered her house to foreclosure, Sheri West endured the darkness in her Hyundai sedan. She parked in her old driveway, with her flower-print dresses and hats piled in boxes on the back seat, and three cherished houseplants on the floor. She used her backyard as a restroom.
Foreclosure SignCNBC.com
The second night, she stayed with a friend, and so it continued for more than a year: Ms. West — mother of three grown children, grandmother to six and great-grandmother to one — passed months on the couches of friends and relatives, and in the front seat of her car.
But this fall, she exhausted all options. She had once owned and overseen a group home for homeless people. Now, she succumbed to that status herself, checking in to a shelter.
“No one could have told me that in a million years: I’d wake up in a homeless shelter,” she said. “I had a house for homeless people. Now, I’m homeless.”
Growing numbers of Americans who have lost houses to foreclosure are landing in homeless shelters, according to social service groups and a recent report by a coalition of housing advocates.
Only three years ago, foreclosure was rarely a factor in how people became homeless. But among the homeless people that social service agencies have helped over the last year, an average of 10 percent lost homes to foreclosure, according to “Foreclosure to Homelessness 2009,” a survey produced by the National Coalition for the Homeless and six other advocacy groups.
In the Midwest, foreclosure played a role for 15 percent of newly homeless people, according to the survey, reflecting soaring rates of unemployment — Ohio’s reached 10.8 percent in August — and aggressive lending to people with damaged credit.
At a shelter for women and children run by the West Side Catholic Center in Cleveland, where Ms. West now lives, foreclosure accounted for zero arrivals in 2007, the center’s executive director, Gerald Skoch, said. Last year, two cases emerged. This year, the number has already reached four.
Similar increases have been reported at shelters in California, Michigan and Florida, where a combination of joblessness and the real estate bust have generated unusually severe rates of foreclosure.
Most people who become homeless because of foreclosure had been low-income renters whose landlords stopped making their mortgage payments, leaving them scrambling for new housing with little notice and scant savings, according to the survey and interviews with shelters.
But in recent months, there has been a visible increase in the number of former homeowners showing up in shelters. Like Ms. West, most have landed there after months trying to stave off that fate.
“These families never needed help before,” said Larry Haynes, executive director of Mercy House in Santa Ana, Calif. “They haven’t a clue about where to go, and they have all sorts of humiliation issues. They don’t even know what to say, what to ask for.”
Many start off camping out in cars, particularly in warmer places.
“We’ve seen a rise in people sleeping in their cars,” said Rick Cole, city manager in Ventura, Calif., which recently allowed car-camping in designated areas. “Some are foreclosed former homeowners, and some couldn’t afford their rent. People will give up their house before they give up their car.”
Those with means try to rent homes or apartments, though tainted credit often makes that impossible. Growing numbers are landing in motels that rent by the week, cramming whole families into single rooms and using hot plates as kitchens. But as unemployment expands, many are losing the wherewithal to remain.
Many take refuge with families and friends, occupying extra bedrooms, basements and attics. But such hospitality rarely lasts.
So, as lean times endure and paychecks disappear, homeless shelters are absorbing those who have run out of alternatives.
More from CNBC.com:
Slideshow: America's Most Impressive Golf HomesSpecial Report: Investor's Guide to Real EstateVideo: Take Profit on Asian Property InvestmentsSlideshow: Highest State Foreclosure Rates
For Ms. West, whose youthful appearance belies her age, in her mid-50s, the nights spent on couches in other people’s homes were uncomfortably familiar. She grew up an only child in a housing project in Neptune, N.J., where her mother slept in the lone bedroom, and she occupied a pullout sofa in the living room.
“I’ve always had this dream of doing better,” she said. “I always wanted to own my own house.”
She realized that dream shortly after arriving in Cleveland with her husband and two children in the early 1990s. At first, they rented. But one fall afternoon, Ms. West found herself on a block lined with leafy trees in Mount Pleasant, a neighborhood east of the Cuyahoga River that was a magnet for middle-class black families like hers. Red brick homes with wooden porches sat on ample lots. Public schools were a few blocks away.
When she saw an ad in the Sunday paper offering a house on that very block, she bought it for $45,000; for the $9,000 down payment she used the savings her mother had left her when she died. She and her husband assumed the mortgage from the previous owner, with affordable payments of less than $400 a month.
Ms. West then had a job as a maintenance worker at an apartment complex for about $9 an hour. Her husband earned about $10 an hour as a truck driver. As the years passed, they added shrubbery to the front yard and photos of children’s birthday parties to the walls.
“I thought that was going to be my house,” she said.
She tapped her inheritance to buy another house on nearby Union Street, paying $15,000 in cash for a light-blue, vinyl-sided A-frame. She turned the house into a home for five homeless people. She did their laundry, reminded them to take their medications and cooked meals, while collecting payments of up to $750 a person each month from the agencies that placed them.
Over the years, Ms. West and her husband spent more than they earned. They used credit cards to finance restaurant meals. They bought a new S.U.V.
At the group home, Ms. West’s compensation slipped as the state limited benefit payments. Yet every month brought the same thicket of bills — water, electricity, gas, plus food for the people under her charge.
In 2001, Ms. West and her husband took out a $67,000 mortgage on the Union Street house — which had increased considerably in value — to refinance high-interest debts, assuming payments of nearly $700 a month.
Two years later, her husband left her.
“It just took the life out me,” she said. “I was in a very bad state, a very depressed situation. Things just kind of went downhill. I just didn’t care anymore.”
By 2005, she was broke. She sold the brick house to her cousin, disbanded the group home and moved in. She paid what bills she could through temporary jobs as a signature collector for petition drives. But as many months passed without work, the bills piled up past due.
By the next year, terse letters were coming from the mortgage company — notices of delinquency, then threats of foreclosure. Much of the neighborhood was in a similar state. Broken windows sat unrepaired at a two-story apartment block across the street, where tattered curtains flapped in the breeze. The city boarded up abandoned homes to deter vagrants, drug addicts and prostitutes.
Ms. West wrote to her mortgage company, seeking lower payments. But with tainted credit and no full-time job, she was not a candidate for a deal. Fliers beckoned with relief as companies offered to negotiate with her lender for lower payments. But when she called, the companies demanded upfront payments as high as $500.
“I told them, ‘if I had that money, I wouldn’t be going into foreclosure,’ ” she said.
In the spring of 2008, Ms. West accepted an offer from the mortgage company: move out, hand over the keys and collect $2,500. She sold what furniture she could and put the rest on the street — tables, beds, a couch.
“I’ve always had this dream of doing better,” she said. “I always wanted to own my own house.”
She realized that dream shortly after arriving in Cleveland with her husband and two children in the early 1990s. At first, they rented. But one fall afternoon, Ms. West found herself on a block lined with leafy trees in Mount Pleasant, a neighborhood east of the Cuyahoga River that was a magnet for middle-class black families like hers. Red brick homes with wooden porches sat on ample lots. Public schools were a few blocks away.
When she saw an ad in the Sunday paper offering a house on that very block, she bought it for $45,000; for the $9,000 down payment she used the savings her mother had left her when she died. She and her husband assumed the mortgage from the previous owner, with affordable payments of less than $400 a month.
Ms. West then had a job as a maintenance worker at an apartment complex for about $9 an hour. Her husband earned about $10 an hour as a truck driver. As the years passed, they added shrubbery to the front yard and photos of children’s birthday parties to the walls.
“I thought that was going to be my house,” she said.
She tapped her inheritance to buy another house on nearby Union Street, paying $15,000 in cash for a light-blue, vinyl-sided A-frame. She turned the house into a home for five homeless people. She did their laundry, reminded them to take their medications and cooked meals, while collecting payments of up to $750 a person each month from the agencies that placed them.
Over the years, Ms. West and her husband spent more than they earned. They used credit cards to finance restaurant meals. They bought a new S.U.V.
At the group home, Ms. West’s compensation slipped as the state limited benefit payments. Yet every month brought the same thicket of bills — water, electricity, gas, plus food for the people under her charge.
In 2001, Ms. West and her husband took out a $67,000 mortgage on the Union Street house — which had increased considerably in value — to refinance high-interest debts, assuming payments of nearly $700 a month.
Two years later, her husband left her.
“It just took the life out me,” she said. “I was in a very bad state, a very depressed situation. Things just kind of went downhill. I just didn’t care anymore.”
By 2005, she was broke. She sold the brick house to her cousin, disbanded the group home and moved in. She paid what bills she could through temporary jobs as a signature collector for petition drives. But as many months passed without work, the bills piled up past due.
By the next year, terse letters were coming from the mortgage company — notices of delinquency, then threats of foreclosure. Much of the neighborhood was in a similar state. Broken windows sat unrepaired at a two-story apartment block across the street, where tattered curtains flapped in the breeze. The city boarded up abandoned homes to deter vagrants, drug addicts and prostitutes.
Ms. West wrote to her mortgage company, seeking lower payments. But with tainted credit and no full-time job, she was not a candidate for a deal. Fliers beckoned with relief as companies offered to negotiate with her lender for lower payments. But when she called, the companies demanded upfront payments as high as $500.
“I told them, ‘if I had that money, I wouldn’t be going into foreclosure,’ ” she said.
In the spring of 2008, Ms. West accepted an offer from the mortgage company: move out, hand over the keys and collect $2,500. She sold what furniture she could and put the rest on the street — tables, beds, a couch.
Home with foreclosure sign
So Ms. West, a stylish woman with a penchant for shiny lipstick and glittering jewelry, wound up camping in her car. She listened to the radio to drown out the voices of prostitutes trawling the street. She meditated. (“Just blank out everything in your mind,” she said. “Just go to a place that’s peaceful, like a beach.”) She prayed.
“It was scary,” she said. “Here I am, alone, and I don’t have nowhere to go.”
The next day, she moved in with a friend, remaining there for about three months. For several more months, she stayed with the cousin who had bought her old brick house and was living there with her husband and seven children. Toys lay scattered across the floor. The walls vibrated with music, television and the sounds of children. She lay awake on the couch, a vagabond in the one place that had once felt so solid.
“I was losing my mind,” she said.
She was grateful to be inside — particularly during the Cleveland winter — yet never comfortable or stable enough to plan beyond the next day.
“You know in the back of your mind that people don’t really want you there,” she said.
Sometimes, she lived out of her car, spending days at the public library, where she washed up in the restroom and used a computer to scan meager job listings.
Finally, a woman she met on the street took her in and helped her formulate a recovery plan. She signed up for food stamps. She enrolled at a community college in a three-month, state-financed training program that would give her a certificate for an entry-level job in biotechnology, putting her in position to earn as much as $16 an hour.
In September, she got a bed at the homeless shelter, reluctantly accepting that she needed her own space to re-establish her life.
“I never wanted to go to the shelter because of the stigma,” she said. “I’m a very independent person. I felt like I got myself into this situation, and I’ve got to get myself out. But I knew I couldn’t just keep going back and forth and staying with these people and not moving forward with my life.”
She sleeps in a twin bed with a flower-print duvet, in a small room painted lavender. Her plants line the windowsill. She keeps to herself, reading motivational books, as she prepares to start classes next month.
She is working again, taking care of senior citizens in their homes part time, and saving money.
By December, she will exhaust the shelter’s 90-day limit, so she is hurrying to line up a house to rent while arranging a subsidy through the West Side Catholic Center.
She is still shaken by the past and anxious about the future, but she is again looking ahead.
“I do want to eventually own a house again,” she said. “That’s the American dream. That’s what everybody wants.”
_____________________________________Calculators and Advice from Bankrate.com:
Compare Mortgage Rates NationwideStruggling to Save Your Home? Get Help Here
_____________________________________
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b66062387ac7727f49bb5f7a9578d558 | https://www.cnbc.com/2009/10/19/jordans-retro-rookie-jersey-finally-hits.html | Jordan's Retro Rookie Jersey Finally Hits | Jordan's Retro Rookie Jersey Finally Hits
Retro jerseys aren’t as hot as they were six years ago, but there’s at least one jersey that figures to bring us back to the old days.
Michael Jordan BoxSource: Mitchell & Ness
Next Monday, retro jersey specialist Mitchell & Ness will release a limited edition of Michael Jordan’s rookie Bulls jersey. The launch date, Oct. 26, is the 25th anniversary of Jordan’s first NBA game.
The $375 collection features an authentic reproduction of Jordan’s 1984 Bulls white home jersey.
It comes in a black wooden box. The jersey is limited to 1,264 pieces, representing one jersey for the games he played in his 15-year NBA career.
Each jersey is individually numbered and comes with a silver plated recap of the particular game that corresponds to that jersey’s number.
To honor Jordan, and perhaps to sell out the jerseys in a single day, the NBA Store in Manhattan will stay open an hour later, from 7:30-8:30 p.m., coinciding with the tip-off time of Jordan’s first game. NBA TV is also airing Jordan’s first game on the 26th.
Aside from the NBA store, the jersey is available at NBAStore.com, the Chicago Bulls team store and the Mitchell & Ness flagship store in Philadelphia. Mitchell & Ness was purchased in November 2007 by Adidas, which is the official apparel supplier of the NBA.
One of Jordan’s real rookie jerseys (an away red) sold for $66,000 in a Grey Flannel Auction in September.
Questions? Comments? SportsBiz@cnbc.com
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fc9c67bc06a5302f4fc514a2671a5e2e | https://www.cnbc.com/2009/10/19/lightning-round-ot-cme-group-allos-therapeutics-and-more.html | ATP Oil & Gas : Cramer is bullish on ATPG.
Cramer's 12 Stocks to Play the Recovery
CME Group : CME is a buy, Cramer said.
Allos Therapeutics : Cramer called Allos “too speculative” and recommended that investors stay away from the stock.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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06c5209c5dd32c32204e743ffdaf8f1e | https://www.cnbc.com/2009/10/19/look-for-a-tech-sector-rebound-gartner-research.html | Look for a Tech Sector Rebound: Gartner Research | Look for a Tech Sector Rebound: Gartner Research
The technology sector will start to rebound in the fourth quarter, said Peter Sondergaard, head of research at Gartner.
VIDEO0:0000:00Tech in 2010
(See the accompanying video for the complete interview.)
Although IT spending dropped 5.2 percent in 2009, he said, the market is expected to rise 3.3 percent to $3.3 trillion in 2010.
“This will go down as the worst year for IT, but we’re already seeing the recovery,” he said.
Although the sector's worst performer, hardware has seen a drop of nearly 17 percent this year, tech's best performers will be software and service, said Sondergaard.
“What you’re going to see is technology providers, for example, such as Salesforce.com , in the software space, EMC with virtualization environments, and also providers in the services space such as Accentureand really the large bellwether organizations such as HP and IBM start to gradually recover at the end of the first quarter next year,” he said.
Consumer spending on PCs in China and Korea has prompted investments in PCs for home usage. And the smart phone market is also expected to lead some level of recovery next year, he said.
Meanwhile, vertical industries such as health care, utilities and the public sector are prompting economic growth as well.
“Government sort of becomes the emerging market of 2010,” he said.
More Technology News on CNBC.com:
Kindle Holds Lead as e-Reader Field Gets CrowdedFake Security Software in Millions of PCs: SymantecTech Check with Jim Goldman
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865b0f4a36058aee0db76574204f1454 | https://www.cnbc.com/2009/10/19/mad-mail-time-for-holiday-plays.html | Booyah Jim!: I have wanted to own some Cisco Systems as part of my mobile Internet tsunami portfolio, so would this be a good time to sell Starent Networks and let it roll over into CSCO? --Scott in Indiana
Cramer says: “Absolutely … I think your move is a great one.”
Cramer's 12 Stocks to Play the Recovery
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Dear Jim: Do you still like Coinstar versus Netflix? I heard an interview on Oct. 7 by NFLX CEO Reed Hastings. Hastings said streaming would exceed DVD within two years. Also, I heard Walgreen, which now carries Coinstar/Redbox kiosks will start carrying new DVD kiosks next year. I watch Mad Money every night and think you are the best analyst of the market I have ever seen! --Jeffrey in Florida
Cramer says: “I like Coinstar still, and Netflix is a good company. Remember, it was a split-the-difference [situation]. Reed Hastings is an excellent CEO.”
VIDEO0:0000:00Mad Mail
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Hello Jim Cramer: My confidence comes from watching your show. Could you start, maybe once a week, talking about your suggestions for "holiday" plays? What do we do to take advantage of what many expect may well be a surprisingly good holiday season? With the all hallows night coming, Turkey Day next month and then Christmas, I hope you can find time to mention holiday plays in your upcoming shows. It would give us Mad Money homegamers a jump on the crowd. --Carl
Cramer says: “One of the things I’ve been saying endlessly is that retail is on fire, and it’s going to be a good holiday season. People are starting to now come around to my view. It makes it more difficult when they come around to my view because then the stock’s are going to be bid up. I still like retail, but I’m not chasing it here because I’ve been liking it the whole way.”
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Hey Jim: A big sunny booyah from Southern California. You are a guiding light for so many budding investors like me. I would like to ask you about Xerox. Do you still believe XRX has what it takes to be a winner? --Jha
Cramer says: “I’ve never thought that Xerox has what it takes to be a winner, and I would be a seller of Xerox.”
Cramer's charitable trust owns Cisco Systems.
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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125e3030033a1b2da6680c9ea0c1c75e | https://www.cnbc.com/2009/10/19/madoffs-long-island-beach-home-sells-for-941-million.html | Madoff's Long Island Beach Home Sells for $9.41 Million | Madoff's Long Island Beach Home Sells for $9.41 Million
Federal marshals say Bernard Madoff's Long Island beach house has sold for $9.41 million.
The U.S. Marshals Service put the 3,000-square-foot house on the market Sept. 1 to help repay victims of Madoff's massive fraud. The four-bedroom house is set amid the dunes in Montauk, N.Y., a beach community east of the Hamptons.
The home sold on Sept. 18. The Corcoran Group -- the broker that sold the home -- said at the time that the property sold for above the $8.75 million asking price.
Bernie MadoffCNBC.com
The 71-year-old Madoff was sentenced in June to 150 years in prison for orchestrating a massive Ponzi scheme.
Madoff's Manhattan penthouse and waterfront mansion in Palm Beach, Fla., remain on the market for $9.9 million and $8.5 million respectively.
Slideshow: Portraits of "Villains"
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e07522156eb0913431b940c8a4a87138 | https://www.cnbc.com/2009/10/19/making-those-best-directional-bets.html | Making Those Best Directional Bets | Making Those Best Directional Bets
Yankees shmankees - Is there anything better than a good ol' fashion earnings preview with derivatives? From my standpoint, the answer would be a solid no.
But just incase you missed part of last week's show, I do want to update the faithful.
Let's begin with Dan's brilliant trade on Apple, which was part of our "Make The Call" segment, where the traders bring you their best directional bets.
Dan, who has made fabulous calls in the past on Apple, just nailed it with his strategy ahead of earnings. He suggested buying the November 190/200 call spread, paying $7.80 for the Nov 190-strike call and collecting $4.20 for selling the Nov 200-strike call, net-net paying a total of $3.60 to win a possible $6.40. That risk-reward scenario didn't sit well with Dan, so to further reduce his costs, he sold the Nov 175-strike put and collected an additional $3.40. Now, if Apple stock falls below $175, he'd be forced to buy the stock on expiration. But with the money he collected from selling that put, Dan effectively bought that 190/200 call spread for a total of $0.20 cents, allowing him to make a potential $9.80 if Apple blows through that short-strike.
CNBC's Jim Goldman: Apple Earnings Are Simply Stunning
How'd it turn out?
Well, an earnings blowout later and Apple shares are trading just north of $200 bucks, making Dan's trade a unqualified success. Between Stacey's call on Google, which went to $550, just as she predicted, and Dan's call on Apple, Options Action can only be considered must-watch viewing for both options and equity traders. We will have an update later on Dan's next move later on.
Now on to the others.
Stacey, still basking in the glow of her Google 520/550 call spread, was a little less bullish this week. She suggested collaring up some gains on Amazon, which could face some tough competition from Wal-Mart. In conjunction with a long position, Stacey recommended selling the Amazon Nov-105-strike call for $2.10 and using that money to buy the Nov 85-strike put for $2.05, net-net collecting a nickel to buy protection that kicks in at $85.05. Above $105.05 her profits are capped, but with the stock trading at $94 bucks, Stacey's trade does allow for a considerable amount of upside.
Not to be outdone, Mike also offered up a defensive move on Microsoft. Against a long position, he too looked to collar up gains. Specifically, he looked to sell the Microsoft Nov 28-strike call for $0.25 to offset the purchase of Nov 25-strike put, which was trading for $0.35. Mike paid $0.10 to put this trade on, but he was able to buy protection that was closer to where Microsoft was trading, proving that just because we're risking less to spend more, doesn't mean we'll always have a free lunch.
Questions, comments send them to us at: optionsaction@cnbc.com
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428181da94cdef1147a1181cbf11b46a | https://www.cnbc.com/2009/10/19/more-time-w-tim-seymour-of-course.html | Wish you could spend more time with Tim? You can! All this week the Ambassador is making more of his expert advice on overseas action available for you - only on the web!
#1 Emerging Market Trader Toolbox: ADRs
VIDEO0:0000:00Emerging Market Trader Toolbox: ADRs
Tim Seymour breaks down ADRs – or, American Depository Receipts – the best way to get a slice of an emerging market company right here at home.
Below you'll find some of the other Trading The Globe extras that Tim Seymour has planned for you!
-----------#2 Emerging Market Trader Toolbox: ETFs
Not ready to go stock-picking in markets far, far away? Tim Seymour explains how ETFs use diversification to give you lower risk exposure to emerging markets.
* coming on Tuesday
-----------#3 Emerging Market Trader Toolbox: Currencies
No investing strategy is complete without exposure to the biggest, most liquid market in the world: currencies. Tim Seymour’s got a lesson on how to add them to your emerging market playbook.
* coming on Wednesday-----------
#4 Emerging Market Trader Toolbox: The Emerging Middle ClassIt’s not just about commodities anymore. Tim Seymour reveals the best way to trade the consumer in emerging markets, home to the world’s fastest growing middle class.
* coming on Thursday
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your message to .
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6276acef4f8df29301b0f28de155a6b5 | https://www.cnbc.com/2009/10/19/my-5-hot-tech-picks-fund-manager.html | My 5 Hot Tech Picks: Fund Manager | My 5 Hot Tech Picks: Fund Manager
The technology sector has soared since the March lows, so does it have more room to run? Jeff Donlon, senior analyst with the 5-star Manning & Napier Pro Blend Max Fund said there are some names that may be poised to continue rising despite the industry’s already impressive climb.
VIDEO0:0000:00Hot Tech Stocks
“There are a lot of reasons to like the technology sector,” Donlon told CNBC. “[They have] very strong balance sheets, great job at cost cutting, very attractive on a free cash flow yield basis, beneficiary of the weak dollar, and inventory levels are still very lean.” (Read below for his full stock picks.)
CNBC Data Pages:
Track the DJ Technology Index HereDow 30 Stocks—In Real Time Where's the US Dollar Today?
Going forward, Donlon said tech investors will have to be more discretionary in terms of stocks they’re involved in.
“We look for companies with long-term secular growth drivers that are gaining market shares in their industries, are building sustainable competitive advantages and barriers to entries within their businesses, as well as well-positioned to take advantage of stronger relative growth overseas in terms of emerging markets.”
More Market Intelligence:
Expect Apple to 'Handily Beat' Estimates: Tech Analyst'Melt-Up' Coming for Stock Markets: Strategist3 Traditional ‘Best in Class’ Stocks: Chief Investor
Donlon Likes:
EMC
Autodesk
Crown Castle
American Tower
SBA Comm. ______________________________CNBC Slideshows:Biggest Tech Blunders in the Last 25 Years
______________________________
Disclosure:
Donlon’s firm owns shares of EMC, ADSK, CCI, AMT and SBAC.
______________________________
Disclaimer
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3473677637d33d90049956d560e68268 | https://www.cnbc.com/2009/10/19/nets-create-another-buzz-worthy-promotion-will-it-sell.html | Nets Create Another Buzz Worthy Promotion: Will It Sell? | Nets Create Another Buzz Worthy Promotion: Will It Sell?
The New Jersey Nets are without a doubt one of the most creative teams and judging from their last invention, reversible jerseys that have the opposing players names and numbers, they sure know how to create some buzz.
NetsAP
The latest is the “Your Ticket to a Player” promotion. For $25,000 –- yes, you heard me right –- you get four courtside seats and a one-hour appearance at the location of your choice by a Nets player.
"The basketball side regularly asks us, ‘What can we do to help?’” said Brett Yormark, president and CEO of Nets Sports & Entertainment. “So we came up with this unique ticket plan to sell more courtside tickets and the players jumped on board. Our players are the most accessible in sports and we appreciate all that they do for us. We are seamless between the basketball and business sides of the organization, and that's very important."
Ponying up $25,000 won’t automatically get you Devin Harris, however. Yormark says the players will be based on availability and only 20 packages are being offered.
We’ll have to see how they sell, but for the price tag in this economy, I’m betting it’s Devin Harris or bust on all the packages. Not unless some fifth grader wants to bring in 7-footer Yi Jianlian for height appeal.
Questions? Comments? SportsBiz@cnbc.com
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b8c1ae40e43dbc659b81477f63d99dc4 | https://www.cnbc.com/2009/10/19/new-intel-study-reveals-mobile-etiquette-rules.html | New Intel Study Reveals Mobile Etiquette Rules | New Intel Study Reveals Mobile Etiquette Rules
Ahead of the holiday season Intel is laying down the law about what kind of tech usage is acceptable and what isn't. The chip giant commissioned a "Holiday Mobile Etiquette," hiring Harris Interactive to conduct a carefully weighted poll of 2,625 adults to better understand how people use technology, so it can better create and adapt its products to serve the fast-changing consumer.
AP
It seems like a lot of these answers point to a huge future for netbooks, which of course Intel wants to be integral to. Read on for a couple nuggets that might inform retail trends this holiday season, and some ideas to help avoid mobile faux pas.
Eighty percent of the survey said that there are unspoken rules about mobile technology-- but what are they? More than half those polled said they would be offended if someone attempted to secretly use an Internet-enabled device, like a cell phone, at the table. (I can't imagine there are many holiday parties where there isn't someone secretly texting).
Another surprising stat: 69 percent say that violating unspoken mobile etiquette -- like texting in the company of others -- is unacceptable. See my recent blog on how Social Networking is the new Cigarette-- if you ask me, people are addicted.
But here's the most shocking number that reveals just how inescapable technology is: a full 85% of the study say it's perfectly appropriate to use "Internet-enabled devices, including laptops, netbooks, and cell phones, in the BATHROOM." Only 25 percent of people think it's weird-- or just plain gross -- really?
This follows the finding that the majority of people agree that mobile devices including laptops and netbooks, are part of our daily lives and "society needs to adapt to the fact that people use them all the time." (Sure, I agree, but I'd hope netbooks wouldn't be used on the toilet!)Part of this theory, 55 percent of respondents agree that business demands that people always be connected, even if it means picking up your cell phone during a meal.
The good news: more than half of adults online would send an e-card instead of a handwritten note, and 88% of people would not be offended by an electronic expression of gratitude instead of a note delivered by the postal service.
Still, be careful this holiday season: 87% of people say it's inappropriate to use a mobile device at a religious venue -- yes, even for texting. And those online gift "wish lists"; a third of adults online would be offended if they got one, even if it was from a close friend or family member.
Questions? Comments? MediaMoney@cnbc.com
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9a98071e37ce2d13a5ade5e88a50f4de | https://www.cnbc.com/2009/10/19/pfizer-sizes-up-closes-68b-wyeth-deal.html | Pfizer Sizes Up: Closes $68B Wyeth Deal | Pfizer Sizes Up: Closes $68B Wyeth Deal
The world’s largest pharmaceutical giant just got even bigger. Friday was a very exciting day for Pfizer as the company closed its $68 billion deal with Wyeth, the biggest acquisition year-to-date.
VIDEO0:0000:00Pfizer CEO on Merger With Wyeth
This is Pfizer’s third mega-deal in the past ten years after Warner in 2000 and Pharmacia in 2003.
Pfizer Chief Executive Jeff Kindler joined Maria Bartiromo for an exclusive interview.
It’s an important day for patients and other customers around the world.
Kindler said, “Pfizer is in a strong position to provide medical and health care solutions to patients, from everything from neonatal vitamins to infant formula to vaccines, all the way to Alzheimer's treatments.” Pfizer expects to deliver strong, stable and consistent earnings and top-buying growth into the future.
So why another deal?
Kindler said, “This deal is about transforming our company into a more diversified business, and to providing real focus and accountability across those businesses.” Pfizer has been planning this deal for nine months now.
Research & Development
As for R&D, Kindler said, “We're going to be announcing our decisions around our R&D centers around the world in about 30 to 60 days from today, which is dramatically faster than we've done in prior deals, because we've learned in integration, speed and decisiveness is very important.”
Dividend Cut
Some were disappointed that Pfizer had to cut the dividend in order to finance the Wyeth deal. Will the company up its dividend anytime soon? No comment now, but Pfizer will have more to say about dividends in December.
Kindler said, “A lot of opportunities to deploy capital on behalf of the company, whether it be dividends, buybacks, investing in the business and in growth opportunities. We'll be deploying our capital with great regard for the future of our company, as well as the importance of providing a good return for our shareholders.”
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The Dow 30 in Real TimeThe CNBC Stock Blog
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Questions? Comments? Write toinvestoragenda@cnbc.com
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d8a4d99a994489a25306a366a89d0213 | https://www.cnbc.com/2009/10/19/shape-of-the-housing-recovery.html | Shape of the Housing Recovery | Shape of the Housing Recovery
There have been many signs of optimism on the housing front in recent weeks, with the Case-Shiller Home Price Index showing an unprecedented reversal from negative to positive growth in the summer months.
We'll also be getting a string of data on the home front this week, with housing starts and existing home sales for September due tomorrow and Friday respectively.
On Friday, "Closing Bell Access" got up close with Robert Shiller is Professor of Economics at Yale University and Chief Economist and Co-founder of MacroMarkets LLC. Shiller is also the other half behind the Case-Shiller U.S. Home Price Indices. (Watch video for full interview).
Maria Bartiromo asked if this uptick was a result of the first time home buyer credit. Shiller replied that he wasn't sure, given that "we're seeing other signs around the same time." Those signs include the record turnaround in the stock market and a major reversal of confidence.
VIDEO0:0000:00Housing: Another Bubble Ahead?
And while many commentators may be concerned of another housing bubble forming. Shiller had this to say, "I look at the data and think it might be happening because it's such a sudden turnaround. But my instincts say no."
Shiller also said that when you look across the country, in cities like Las Vegas or Phoenix, that were the most overheated, these parts have yet to see a rebound.
Finally on the important question on mortgage rates and how much longer they can remain this low. Shiller ended by saying that "the Fed is still buying up mortgage… and they said they'll extend that into next year, but when that stops, if it does stop, that's when we might see a major change in the market."
Liza Tan contributed to this article.
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The Dow 30 in Real TimeThe CNBC Stock Blog
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Questions? Comments? Write toinvestoragenda@cnbc.com
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aaf7cb5027c33de04c62880b3253a91c | https://www.cnbc.com/2009/10/19/should-you-sell-home-without-an-agent.html | Should You Sell Home Without an Agent? | Should You Sell Home Without an Agent?
In today's tough housing market, some sellers are looking to cut costs by selling their property without using a real estate agent.
AP
Sellers who skip the listing agent and offer their home as a "for sale by owner" -- or FSBO (pronounced FIZZ-bo) -- have the potential to save thousands of dollars in agent's fees, says Piper Nichole, author of "The For Sale By Owner Handbook."
But FSBO sellers should be prepared to do a lot of legwork to manage the sales process, with no guarantee of a final sale, she says.
Here are five questions experts say homeowners should ask themselves before selling a home on their own.
1. Do I know the value of my home in today's market?A common mistake FSBO sellers make is to price their home too high, Nichole says. As a result, the property languishes on the market.
"When a home sits for a long while, buyers start to wonder what is wrong with it," she says. "The best option is to come out of the gate priced right."
To market a home competitively, sellers should research the final sales price of similar properties in their community.
Updated sales information is available to agents through proprietary reports, but individual owners can also dig up sales data from public sources, says Amy Bohutinsky, vice president of communications for Zillow.com, a Seattle-based online real estate service that provides data on homes.
Online real estate sites may offer sales trend information for local neighborhoods, sales prices for comparable homes in the community, known as "comps," and the average length of time homes have remained on the market, Bohutinsky says.
"It takes a lot of work to look at this data and figure how to price your home, but it's important in order to come up with the right value," she says.
It may even be worthwhile to purchase an appraisal from a certified licensed appraiser, says Dale Siegel, a mortgage broker and author of "The New Rules for Mortgages."
Buyers eventually have to pay for their own appraisals. But homeowners who buy an appraisal before putting their home on the market can eliminate the risk of a pricing surprise when a buyer applies for a home loan, Siegel says.
_____________________________________Need Help Investing? More Stories from Bankrate.com:
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Even if sellers think they've arrived at fair home values, potential buyers may still try to negotiate prices downward.
According to Bohutinsky, a report from Zillow determined that 23 percent of real estate listings nationwide had a price cut in August 2009. And nationally, homeowners are selling for less than 3 percent of their listing price on average, Zillow says.
"If you want to sell quickly, the strategy is to sell about 5 percent below the most recent comps in your area," Bohutinsky says.
2. Am I ready to work with a buyer's agent?In a typical real estate transaction, the listing agent represents the seller. But the buyer may choose an agent to represent his or her interests, too.
When a real estate deal is made, the seller usually pays both agents involved a commission based on the sale price of the house. That commission is negotiable, but it has traditionally been about 6 percent of the purchase price, says Nichole. The buyer's agent and seller's agent generally split the commission in half.
As a FSBO seller, you may decide not to use a listing agent, but you can't control whether or not a potential buyer wants to use a buyer's agent.
Next: Can you handle sales and marketing responsibilities?
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970525bd6aa088bc39fa7349edc4c962 | https://www.cnbc.com/2009/10/19/site-hot-links-fear-and-greed.html | Site Hot Links? Fear and Greed | Site Hot Links? Fear and Greed
Today it was all about fear and greed and fear.
VIDEO0:0000:00What's Clicking on CNBC.com
The hot story was worries about the fallout from the Galleon Group arrests, courtesy of the New York Times. (Story here)
Then Dennis and I chatted about Cramer's 12 Stocks for Playing the Recovery. If you haven't guessed, that was the greed part.
And we finished up back at fear with 20 Stocks with Potential to Drop.
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bab36e5b00c87463aa2b889d19bf4442 | https://www.cnbc.com/2009/10/19/site-lets-investors-see-and-copy-experts-trades.html | Site Lets Investors See and Copy Experts’ Trades | Site Lets Investors See and Copy Experts’ Trades
The trouble with mutual funds is that investors can feel as though they have put their money in a black box. The 90 million Americans with money in funds know little about fees, what securities their money is invested in and who is in charge.
Daniel Carroll, who started investing when he was 15, thinks he has a way to let average investors learn about investing while experts manage the money. In 2008, he started KaChing, a Web site where 400,000 amateur and professional investors manage virtual portfolios. Others have logged on to see what the investors on the site are doing and make the same trades in their own real portfolios.
kaChing
On Monday, KaChing is to add a new twist. Customers can set up brokerage accounts that automatically mirror the trades of a money manager, some of them professionals.
“The idea of an asset manager showing all his research, his holdings — it’s unheard-of,” said Mr. Carroll, now 27 and the vice president for business development at KaChing. “In the financial industry, the idea is that information is currency; they protect it with their lives.”
Individuals are desperate for advice and transparency from people who help them manage their money, and mutual funds do not provide enough, said Andy Rachleff, KaChing’s chief executive and a longtime venture capitalist who co-founded Benchmark Capital.
Dow 10,000: Then and Now
“The mutual fund industry is a $10 trillion industry that has seen no innovation for 25 years. The Internet has had no impact,” Mr. Rachleff said.
KaChing has attracted a roster of prominent early investors from Silicon Valley who have financed the company with $3 million. They include Marc Andreessen, co-founder of Netscape; Kevin Compton of Kleiner Perkins Caufield & Byers; and Jeffrey Jordan, chief executive of OpenTable, the online reservation service.
The angel investors have also been investing their own money through KaChing during the pilot period. “The concept is great — the ability to tap into not just the wisdom of the crowd, but to be able to identify and invest with the particular geniuses in the crowd that stand out,” said Mr. Andreessen, who has invested $100,000 using the site.
Customers will be able to open a brokerage account with Interactive Brokers and link their account with their choice of investors on KaChing. KaChing charges customers a single management fee of 0.25 percent to 3 percent, set by each investor. KaChing keeps a quarter of the fee, and the investors get the rest.
Each time the investors make a trade, KaChing will automatically make the same trades for the customer. Customers can log on whenever they want to check their portfolio’s performance. They can send the investor private messages and receive alerts if the investor does something unusual. With the click of a mouse, customers can stop mirroring an investor.
KaChing rates investors on the site by giving them a score the company calls Investing IQ. The formula is modeled after one used by managers of Ivy League endowments, Mr. Rachleff said, and considers risk-adjusted returns, whether investors stick to their strategies and the quality of the research they provide to explain their ideas.
So-called genius investors are those with high scores that have at least a yearlong record on KaChing. The genius investors sign regulatory documents that they will not break the law, including “front-running” stocks, which is the illegal practice of buying or selling a security for their own account with the advance knowledge of pending orders.
KaChing monitors trades in the personal brokerage accounts of each of its model investors and their families. The site is also a registered investment adviser with the Securities and Exchange Commission.
Only a dozen people have qualified as genius investors so far. They include a retired lawyer in Omaha, a student at Chapman University and the founder of a Bay Area investment firm.
For investors, KaChing is a way to make some money on the side or expand their existing business. Andrew F. Mathieson, founder of the investment firm Fairview Capital in Greenbrae, Calif., said he hoped to use KaChing to cater to people who did not meet the firm’s million-dollar minimum.
“Most investment products are sold rather than bought,” he said. “Our vision of this is it’s a product that will be bought by investors on the basis of the information we’re putting on the site.”
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eb649df754341ced01a869f81c3793ad | https://www.cnbc.com/2009/10/19/sp-500-earnings-leaderboard-biggest-surprises-season-to-date.html | S&P 500 Earnings Leaderboard: Biggest Surprises Season to Date | S&P 500 Earnings Leaderboard: Biggest Surprises Season to Date
As of this past Friday, just over 10% of the S&P 500 companies had reported earnings. This week we will see roughly 30% more of the S&P report.
Here's how things stand so far:
Companies Exceeding Estimates: 79%Companies Matching Estimates: 11%Companies Falling Below Estimates: 10%
Compared to the start of last earnings season, the breakdown has shifted with a significantly larger increase in companies beating vs. missing estimates. At the same point last quarter, ~20% of the companies reporting had missed EPS estimates and just over 70% had beaten estimates. The trend is extending from Q1, when only 60% had beaten estimates at this stage of the season.
Monsanto has had the biggest percent surprise to the upside followed by Jabil Circuit and National Semiconductor . In absolute dollars, financials sit atop the leaderboard. After Citigroup's surprise of over $1.3 billion, JP Morgan Chase and Goldman Sachs follow with ~$1.2 billion and ~$500 million surprises.
On the downside, Harley Davidson leads the losers, reporting a -48% miss. In absolute dollars, Bank of America leads with its $433 million negative surprise.
Many companies have improved their earnings by cutting costs. Investors are looking for topline growth as a sign that the economy has indeed turned the corner. Continue on to the next page to see the biggest revenue surprises to date as well.
In percentage and dollar terms, Financials lead in biggest revenue surprises. JP Morgan's 13% or $3.4 billion surprise is the biggest to date.
On the downside, Lennar has the biggest percentage surprise, while CNBC parent, General Electric leads in dollar terms missing estimates by $1.7 B.
Data Source:Thomson Reuters
Send comments to bythenumbers@cnbc.com
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0b974fa9a2bb8a072ae2c0cb864614f7 | https://www.cnbc.com/2009/10/19/tech-stocks-two-ways-to-play-them.html | Tech Stocks: Two Ways to Play Them | Tech Stocks: Two Ways to Play Them
This post is part of a regular series written by ETF Trends editor Tom Lydon, special for CNBC.com.
Since the market’s low on March 9, it’s become increasingly apparent that technology is a standout sector. Now the markets are getting confirmation of the sector’s strength through a slew of earnings reports that are dusting analysts’ expectations:
AP
- Technology-sector bellwether Intel reported better-than-expected quarterly profits
- Google announced a 27 percent increase in third-quarter profits, beating expectations; Google attributed the gains to more demand for e-commerce and online advertising
- IBM reported a 14 percent earnings increase year-over-year, beating expectations
On Monday, Apple and Texas Instruments will report earnings, while Microsoft is up on Friday. Cisco will announce its third-quarter results in the first week of November.
Technology has held investor interest for a multitude of reasons: Consumers need and love new technology and they insist on name brands, regardless of economic conditions; the Nasdaq 100 is outperforming other indexes year-to-date, up 43.5 percent; global semiconductor sales jumped 5 percent from July to August; and the falling price of laptops and the popularity of netbooks have generated new revenue for the tech sector.
Choosing a tech sector winner can be a daunting challenge. This is why exchange-traded funds (ETFs) are the ideal vehicle for getting total exposure and capitalizing on the momentum these companies share:
- Technology Select Sector SPDR: Apple, 7.8 percent; Cisco, 6.4 percent; Google, 4.8 percent; Intel, 4.8 percent; IBM, 8 percent; Microsoft, 9.7 percent
- iShares Dow Jones U.S. Technology: Apple, 9 percent; Cisco, 7.5 percent; Google, 6.5 percent; Intel, 6 percent; IBM, 8.8 percent; Microsoft, 11.3 percent
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_____________________________Disclosures:
Tom Lydon’s clients own shares of XLK.
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Tom Lydon is the editor of and author of iMoney: Profitable ETF Strategies for Every Investor.
Disclaimer
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1e0faf1ed18614e12065844307edce04 | https://www.cnbc.com/2009/10/19/trading-the-globe-interoil.html | With shares up 74% over the last 3 months, should InterOil be on your radar?If you haven’t heard of this company, it may be because InterOil is headquartered down under. According to the firm’s website InterOil is an integrated oil and gas company in Papua New Guinea. InterOil's exploration asset portfolio is one of the largest held by a single company and comprises approximately 9 million acres, with four discovery's.What else should you know about the company? Watch the video and find out from Phil Mulacek, InterOil CEO.
VIDEO0:0000:00Trading the Globe
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On October 19, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Finerman Owns (AAPL); Finerman's Firm And Finerman Own (RIG), (PDE); Finerman's Firm Owns (MSFT), (NOK), (TJX); Finerman's Firm Owns (BAC) Preferred, (BAC) Call Spread, (BAC); Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (BBT) Puts; Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm And Finerman Own (WMT); Finerman's Firm Owns (BKS) Puts; Finerman's Firm Is Short (USO), (IJR), (MDY), (SPY), (IWM), (UNG); Najarian Owns (GE) Calls; Najarian Owns (HGSI) Call Spread; Najarian Owns (POT) Call Spread; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (WFT) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), Is Short (YHOO) Calls; Najarian Owns (TEX) Call Spread; Terranova Owns (HES), (HOC), (SUN)GE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBCFor Joe TerranovaTerranova Works For (VRTS)Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Virtus Investment Partners Owns More Than 1% Of (XLY)Virtus Investment Partners Owns More Than 1% Of (CAL)Virtus Investment Partners Owns More Than 1% Of (CLB)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (XLI)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (XLB)Virtus Investment Partners Owns More Than 1% Of (DBA)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (UA)For Jeffrey BernsteinAccounts Over Which Bernstein And/Or Affiliates Exercise Investment Discretion Own More Than 1% Of (AMZN), (GOOG)Bernstein Is A Market Maker In (AMZN), (EBAY), (GOOG), (YHOO)For Whitney TilsonFunds Managed By Tilson Own Berkshire HathawayFunds Managd By Tilson Own (MSFT)Funds Managed By Tilson Own (PFE)CNBC.com with wires
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1165a58e81bc6d17629e05f4f1a84e90 | https://www.cnbc.com/2009/10/19/verizon-ups-the-ante-to-compete-with-cable.html | Verizon Ups the Ante To Compete With Cable | Verizon Ups the Ante To Compete With Cable
Verizon is being very savvy about marketing to cash-strapped consumers as we head into the holiday shopping season. Consumers who sign up for Verizon's new fiber network—FIOS—get a $150 pre-paid Visa card.
The telecom company is slashing prices and bundling more services to better compete with cable giants Comcast and Time Warner . Cable companies, satellite TV (DTV, DISH ) and more recently Verizon and AT&T, with its U-Verse service, have been trying to snare customers with a "triple play," offering discounts if consumers sign up for four services —home phone, broadband and video.
Verizon
Now Verizon is upping the ante with a "quadruple play," making its cell phone service part of the package.
Verizon is smart to put its mobile service front and center, as it has the largest wireless business in the U.S. The cable companies simply don't have a wireless service option in their arsenal, so this is a wise way for Verizon to differentiate itself. And Verizon needs to grow the number of its subscribers who have bundles, as they reduce customer turnover as much as half.
The telco needs to build on its stronghold in cell phone service right now—there's pressure to compensate for declining land-line usage. Verizon's land line revenue dropped 5.4 percent to $11.2 billion in the most recent quarter compared to a year ago.
Across the board consumers are dumping land line usage to rely only on their cell phones, or they're signing up for the digital land lines they can get through Time Warner and Comcast's "triple play" bundles.
Can deep discounting to price-sensitive consumers move the needle and help Verizon's FIOS and AT&T's U-Verse get a foothold in the pitched battle with cable giants Comcast and Time Warner? Verizon recently started running ads for "Droid" an upcoming Motorola phone that uses Google's Android operating system.
Now hooking new wireless users isn't just about their cell phone bill, it's about snagging all of their broadband and television spending. That ups the ante for the success of a new phone service-- every new customer is that much more important, and that much more valuable.
We'll be watching earnings from the telcos and cable companies as they roll out over the next few weeks, and we'll be listening carefully to hear what the CEOs say in post-earnings calls about the competitive landscape. First up are AT&T earnings on Thursday, followed by Verizon's report on Monday.
Questions? Comments? MediaMoney@cnbc.com
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983beda82c553efba43903168a83150c | https://www.cnbc.com/2009/10/19/video-game-sales-rebound-in-september-but-barely.html | Video Game Sales Rebound in September, but Barely | Video Game Sales Rebound in September, but Barely
The good news: After six consecutive months of negative numbers, the video game industry finally had a month that topped 2008’s sales figures. The bad news: It only did so by the skin of its teeth.
Sales of video game software were up 5 percent in September, compared to a year ago — the first improvement on the 2008 numbers since March. Wall Street analysts had expected double-digit increases.
Even with big titles such as “Halo 3: ODST” and “The Beatles: Rock Band” leading the way, sales jumped only to $649 million, according to the NPD Group — a mere $31 million improvement.
Michael Pachter, managing director of equity research at Wedbush Securities, had forecast sales of $750 million in September.
More disheartening was the fact that price cuts by all three manufacturers had less of a positive effect than expected. Hardware sales were down 6 percent from the 2008 numbers.
Slideshow: Top 10 Video Games of 2010
One winner was Sony's PS3. The decision to lower the price by $100 made the system significantly more attractive to buyers. For the first time since its 2006 launch, the PS3 topped the hardware sales charts.
Sony sold nearly 482,000 units in September, a 134 percent increase over August and more than double the number sold a year ago. (September had more selling days than August, making the month-over-month increase slightly larger than normal.) The victory wasn’t as pronounced as many were expecting, though, as price cuts by Microsoft and Nintendo spurred sales of the Xbox 360 and Wii as well.
Wii sales came in at just shy of 463,000 units — a 67 percent increase over the previous month, but a 30 percent drop from September 2008. Microsoft sold 353,000 Xbox 360s, a 64 percent increase over August and just slightly above the 2008 comparables.
Overall, the Nintendo DS led hardware sales, as it has for the past six months, selling over 524,000 units.
Among software, Microsoft’s “Halo 3: ODST” led sales, as expected. The game, which explored a new part of the “Halo” universe and did not feature its usual cast of characters, sold more than 1.5 million copies. That makes it the sixth best-selling launch in the industry’s history.
Sales of “ODST” were nearly triple that of the second best-selling title — Electronic Arts’ “Madden,” which sold over 536,000 copies on the Xbox 360 and PlayStation 3.
In the closely watched battle of the bands, it was a split decision. “The Beatles: Rock Band” topped Activision’s “Guitar Hero” in dollar sales (earning more than $460 million), but was able to do this only due to its retail price premium, which was 130 percent above that of its competition.
The competition was good for the beleaguered music genre, though.
“The sales of Rock Band and Guitar Hero led the music/dance genre to a 72 percent dollar sales increase over September 2008,” says NPD analyst Anita Frazier.
Year to date, the industry is still $1.5 billion — 13 percent — behind last year’s pace.
Despite this month’s slight increase, pessimism still overshadows the industry. Sentiment for October sales is gloomy and the hopes of the industry managing to break even this year are evaporating quickly.
While the holiday sales period is still looming, there’s only one real title that analysts feel has true blockbuster potential: Activision’s “Modern Warfare 2,” expected in November.
The game could potentially be one of the biggest sellers in the industry’s history — but few, if any, believe it will be enough to turn around what’s shaping up to be a very disappointing year.
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d21388bc44c6b56f8e7a8ca228788bc7 | https://www.cnbc.com/2009/10/19/web-extra-your-first-move-for-tuesday-october-20th.html | Here's our Fast Money Final Trade. Our gang gives you tomorrow's best trades, right now!
Joe Terranova suggests longSteel Dynamics -- after several quarters of losses “they returned to profitability.”
Guy Adami recommends longQualcomm for valuations.
Karen Finerman says Barnes & Noble is a short. (Click here to find out why.)Pete Najarian thinks Yahoo! is a buy.
VIDEO0:0000:00Fast Money Web Extra
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OPTIONS ACTION: POTASHPete Najarian has spotted unusual options activity in the Potash Nov calls.
He says the action in November calls suggests Potash stock could make a sharp move higher. It’s worth noting that BofA -Merrill analyst Jason Fairclough suggested Monday BHP could afford making an all-cash bid for Potash.BofA-Merrill said at a 30 percent premium could add to BHP earnings by 13 percent within a year or two of closing an acquisition.
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your message to .Trader disclosure: On October 19, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (C), (BTU), (GS), (INTC), (MSFT), (NUE); Finerman Owns (AAPL); Finerman's Firm And Finerman Own (RIG), (PDE); Finerman's Firm Owns (MSFT), (NOK), (TJX); Finerman's Firm Owns (BAC) Preferred, (BAC) Call Spread, (BAC); Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (BBT) Puts; Finerman's Firm And Finerman Own (WFC) Preferred; Finerman's Firm And Finerman Own (WMT); Finerman's Firm Owns (BKS) Puts; Finerman's Firm Is Short (USO), (IJR), (MDY), (SPY), (IWM), (UNG); Najarian Owns (GE) Calls; Najarian Owns (HGSI) Call Spread; Najarian Owns (POT) Call Spread; Najarian Owns (RIMM) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (WFT) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), Is Short (YHOO) Calls; Najarian Owns (TEX) Call Spread; Terranova Owns (HES), (HOC), (SUN)GE Is The Parent Company Of CNBCNBC Universal Is The Parent Company Of CNBCFor Joe TerranovaTerranova Works For (VRTS)Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Virtus Investment Partners Owns More Than 1% Of (XLY)Virtus Investment Partners Owns More Than 1% Of (CAL)Virtus Investment Partners Owns More Than 1% Of (CLB)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (XLI)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (XLB)Virtus Investment Partners Owns More Than 1% Of (DBA)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (UA)For Jeffrey BernsteinAccounts Over Which Bernstein And/Or Affiliates Exercise Investment Discretion Own More Than 1% Of (AMZN), (GOOG)Bernstein Is A Market Maker In (AMZN), (EBAY), (GOOG), (YHOO)For Whitney TilsonFunds Managed By Tilson Own Berkshire HathawayFunds Managd By Tilson Own (MSFT)Funds Managed By Tilson Own (PFE)
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9c4ac33f187eabc4b43303ee9ed944ed | https://www.cnbc.com/2009/10/19/what-bubble-commodities-rally-is-still-far-from-over.html | What Bubble? Commodities Rally Is Still Far From Over | What Bubble? Commodities Rally Is Still Far From Over
While the massive stock market rally could falter at any time, a weak dollar and strong global demand could mean no end in sight for the rampant run-up in commodities prices.
Oil, gold and other metals have posted strong rallies as monetary policy has undermined the US dollar and made commodities cheap to buy.
While stocks, too, have benefited from the weak currency, many experts believe the market may take a break soon from its rise of more than 50 percent.
With bonds facing an uncertain future in the meantime, the commodities rally is likely to continue even though in normal times it might generate fears of a bubble.
"We don't think there's a bubble," says Andrew Neale, portfolio manager at Fogel Neale Partners in New York. "The asset values are inflated, but until there's some sign of the dollar strengthening, which we don't see right now ... we see continued strength in the commodities."
Investors have a buffet of offerings from which to choose.
Neale likes everything from platinum and palladium to natural resources and energy-exploration stocks. Gold continues to push to new highs as experts predict it could reach $1,200 and beyond.
Oil, meanwhile, looks like it could break out of its trading range and set up a variety of investment opportunities. Neale says crude could reach $90 a barrel, while others are looking for a move at least to $80 over the winter.
"We still think there's plenty of room for movement on the upside," Neale says.
While the dollar weakness—precipitated by near-zero interest rates at the Federal Reserve—gets much of the attribution for commodity strength, there are other factors in the equation.
Strong global demand, particularly for metals used in construction and manufacturing, also is pushing the trade and could provide underpinnings that will extend beyond once the Fed starts changing course and tightening the money supply.
"We've seen incredible returns in emerging markets in the last six months to a year," says Adam Gould, senior portfolio manager at Direxion Funds in Milwaukee. "If that continues that definitely spurs demand for commodities."
Direxion manages leveraged index funds on both the bear and bull sides of the market. Gould, though, thinks the bears are winning right now.
"People are buying commodities, anticipating higher demand moving forward," he says. "There have been huge returns in equity markets, and people are looking for other ways to get returns than just investing in stocks."
Noted investor Jim Rogers has been a strong bull on commodities and said in a recent interview with Reuters that agricultural goods and precious metals are among his top picks. He also predicted that if there's a bubble right now it's in Treasurys, not in stocks.
That assessment is shared by those who believe that government debt will catch up to the bond market and blow a hole through Treasury prices.
There's also some fear that the falling dollar is bound to cause problems for stocks, which have been rising primarily on the weak greenback and its resulting discounting of asset prices. Experts think the drop in value could go too far and hurt companies trying to generate top-line revenue gains.
"Eventually the falling dollar means the bond market has to fall," says Lee Markowitz, partner at Continental Capital Advisors in New York. "The US is borrowing so much money, we're going to have to compensate foreigners for taking the currency risk. Either way it poses a risk for equities."
In fact, Markowitz says the dollar could be in a bubble, despite how far it's fallen.
Should both the Treasury and stock markets weaken at the same time, that will mean only more momentum for commodities.
"There's no question there's a growing belief that the dollar's decline is blessed by Washington," says Peter Cardillo, chief economist at Avalon Partners in New York. "If we continue to have a gradual decline, that's probably not going to induce commodity prices to unreasonable levels."
How far the dollar could decline is hard to gauge, but the dollar index has fallen 5 percent since its most recent peak on Aug. 17. Analysts at BoA Merrill Lynch Global Research say there has been support at 76 on the index, which is just above the current level.
"Technically we'll see some sort of bounce," Cardillo says. "From time to time you'll see some statements out of Washington (about the dollar), European central banks will make a lot of noise, Asians will make a lot of noise. That sort of backs off the speculators for a while."
Slideshow: The 10 Hottest Commodities of 2009
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85e171e11e4f325569760f38828c7c93 | https://www.cnbc.com/2009/10/19/what-can-traders-hang-their-hats-on-now.html | What Can Traders Hang Their Hats on Now? | What Can Traders Hang Their Hats on Now?
Earnings season peaks this week: now what can traders hang their hat on? The close on Friday, a big earnings day, was less than stellar. Volume was poor, and two stocks were down for every one that advanced.
This, despite earnings generally above expectations (BofA was an exception) and economic news also generally better (again the Michigan Consumer Confidence was an exception).
Today, traders are noting that we are now on the crest of the wave of earnings. Big techs are finished after today with Apple, big financials are through this Wednesday after Morgan Stanley ... now what?
Bulls say selling on any disappointing trading or poor reports in the last six months has been a big mistake.
Elsewhere:
1) Low priced stock alert: Fannie Mae and Freddie Mac downgraded by Keefe Bruyette to underperform with a price target of ZERO, noting that both will need to be recapitalized, and that it is likely that the recapitalization will bake both common and preferred equity in the companies WORTHLESS.
2) Diversified manufacturer Eaton up 5 percent pre open, reported earnings of $1.21, significantly better than consensus of $0.92, revenues also higher, raised guidance $1.15-$1.25 vs. $1.06 consensus.
Since the March bottom, diversified manufacturers like Eaton and rivals Johnson Control , Parker Hannifin , and ITT have all outperformed the S&P 500.
3) Hasbro trades up 1.5 percent after its Q3 earnings beat estimates ($0.99 vs. $0.93 est.) on improved margins and the strength of its Transformers and G.I. Joe-related toys. Revenues fell 2 percent, a bit short of estimates on a 4 percent decline in U.S. sales and from negative currency impact from its international sales.
CEO Brian Goldner hinted at improving sales trends in the fourth quarter: "We believe we can grow revenues in 2009 if our consumer retail takeaway continues to improve in line with recent fourth quarter trends."
4) Gannett is up 1 percent after topping earnings estimates ($0.44 vs. $0.41 est.), benefiting from heavy cost cutting. Revenues fell a slightly better-than-expected 18 percent. Still disconcerting for the media company: advertising revenues plunged 28 percent as national ads sales fell 25 percent and classified ad revenues fell 37 percent in the quarter.
5) BB&T is down 4 percent pre-open. Although earnings beat estimates by a penny, net income fell 58 percent as the regional bank's credit loss provisions nearly doubled as it assumed the assets and deposits of failed bank Colonial BancGroup. It also noted that nonperforming assets (loans at risk of going bad) rose to 2.48 percent from 2.19 percent in the prior quarter.
5) The CME Group is reportedly in discussions to acquire the Chicago Board Options Exchange, the largest options exchange in the U.S. Crain's Chicago Business reports that a deal would be valued at up to $5 billion, with each CBOE seatholder receiving around $4 million, approximately 50 percent more than the going rate for its seats now.
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The Dow 30 in Real TimeThe CNBC Stock Blog
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Questions? Comments? tradertalk@cnbc.com
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078930c2e829ec66d7464e92b3970c18 | https://www.cnbc.com/2009/10/20/are-your-vices-foiling-your-finances.html | Are Your Vices Foiling Your Finances? | Are Your Vices Foiling Your Finances?
Most of us are well aware of the costs of the seven deadly sins. We may even know the downside of ignoring the five basic food groups.
AP
But we probably have never stopped to do the math on our three favorite vices: alcohol, cigarettes and coffee.
Talk about a buzz kill, right? These are the personal indulgences we hold near and dear. They provide the moments of sheer visceral pleasure that get us through the heavy slogging of daily life.
Not only are we willing to pay the oh-so-affordable retail price for these self-rewards, we actually bundle them into our cost of living without a second thought, as if they were necessities like groceries, toothpaste or gas for the road.
Granted, each is addictive and has physiological side effects we'd rather not dwell on, ranging from hypertension to lung cancer, sleep disorders to emphysema, halitosis to heart attacks. Hey, everything can kill you if you look at it hard enough.
But when we consider the daily tab from starting each morning with a Starbucks double-tall latte, inhaling a pack of cigarettes throughout the day and capping the old 8-to-5 with a couple of drinks at the local watering hole, it can sometimes feel like we're working to support our crutches.
No one is suggesting that you heartlessly kick your three amigos to the curb and get thee to the nearest yoga class (which can also be pricey!). But if sizable expenses are beginning to appear on your radar, perhaps a larger house or college for the twins, you may be surprised at how much you can save by sacrificing one or more of your favorite vices.
To aid in calculating the cost of our three most popular vices, Bankrate obtained retail pricing in Seattle, Austin, Texas, and Orlando, Fla., at Applebee's (domestic bottle beer and call liquor), 7-Eleven (cigarettes) and Starbucks (double-tall latte), then averaged each unit price. On cigarettes and coffee, we rounded up to the nearest dollar to account for tax. On alcohol, we factored in a 20 percent tip on the average cost, then rounded up to the nearest dollar to account for tax.
_____________________________________More From Bankrate.com:
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Light up a cigarette and grab your beverage of choice because here comes a real eye-opener.
Alcohol: Sobering savingsAlcohol, long reviled as "demon rum," has been enjoying a new respectability lately thanks to medical studies that show that a little tippling can be good for the heart.
"Ethanol in and of itself makes platelets, the clotting factors in blood, less sticky, so you decrease the possibility they will clog arteries," says Dr. Ruth Kava, director of nutrition for the American Council on Science and Health.
Dr. Kava says the operative word is moderation.
"I don't see a health reason to quit if you are drinking one to two drinks a day for a man or one drink a day for a woman," she says. "You're doing something there that could actually reduce your health care costs down the line, as long as you don't go overboard."
Next: Smokes and joe...
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ca9460e6be85c44267d5859a73516658 | https://www.cnbc.com/2009/10/20/art-hopes-for-colorful-returns.html | Art Hopes for Colorful Returns | Art Hopes for Colorful Returns
It's hard to find a picture perfect investment especially when the landscape is clouded by a global financial crisis, but hanging in the group of assets waiting for a lift in 2009 is art in Australia.
Caterina TosoAP
The dash for cash prompted a downturn in shares, property and art but while Australian equities have bounced and reclaimed year highs and some parts of the real estate market, at least in Sydney, are hot again - investors are still yet to get creative, leaving art prices and sales languishing.
Perhaps part of it can be explained by the scars investors are still carrying from holding less liquid assets when the credit crunch hit.
Here is a snapshot of how much canvas turnover has declined: back in 2007, art sales in Australia topped $175 million, then dwindled to $111 million in 2008, and now in 2009, unless there is a pre-Christmas rush, may not even reach $100 million, with the number for the year sitting at just $68 million so far.
Prices too have been hammered at auctions, with the magic million dollar mark proving elusive this year. Dealers say one reason is because super quality works have been hard to come by, with owners reluctant to sell in tough times.
But auctions have still attracted headline as for instance Arthur Streeton, George Russell Drysdale, Sidney Nolan pieces have been sold.
It wasn't until September that the hammer fell on a million dollar bid. Auction house Deutscher Menzies sold Brett Whiteley's The Sunrise, Japanese: Good Morning! for $1,320,000. Estimates pre-auction were for between $1,100,000 to $1,400,000 and were considered conservative, indicating prices are still well off the highs.
The Sunrise, Japanese was in fact part of a group of paintings sold by millionaire Tasmanian mathematician and art collector David Walsh. It last fetched $764,500 (including buyer's premium) in September 2004. Some estimate that major artworks are still being discounted by roughly 30 percent.
The Magic Million
In the past, Australian buyers haven't shied away from forking out funds for serious art investments. In 2008, seven works by Australian artists sold for over $1 million and in the heady boom days in 2007, the comparable figure was 22 works.
Brett Whiteley's The Olgas for Ernest Giles sold back then for $3,480,000, which is still the highest price tag achieved for local art. But with an improving economy and equity markets, auction houses are becoming confident that art markets have seen the worst. In fact art dealers say there has been a noticeable improvement in interest and activity since September.
VIDEO9:0209:02Is Art the Picture Perfect Investment?
Stronger turnover is particularly evident at the lower to middle end of the art market. Independent Art Auctioneers which deals with artworks priced in the $500 to $30,000 says it's not the best time to sell and only do so if you have to, but on the flip side it's a good buyers market.
And perhaps history is a good guide, because traditionally after a stock market crash an art boom has followed. At this end of the market, activity is recovering but prices are yet to touch the heights and are about 20 percent off their peak, which offers attractive upside according to industry insiders.
Tips for Investing in Art:
Time Your Entry. Buying art is no different to other investments - your return depends on the entry price. Earlier this year prices were down some 30 percent on major art pieces, and although the art world is no longer as depressed, prices are still relatively cheaper than they've been for a couple of years.Know What You're Buying. A key principle in choosing art is that it's recognized by the art houses. For reliable returns stick to the names known to auctioneers such as Sotheby's, Deutscher Menzies and Christie's - artists on their catalogues have a proven track record, so there is clarity around price and you know there are ready buyers.Look at the Middle Art Market. Recognized art in the $500 to $30,000 category is still down 20 percent, leaving potential for returns down the track. It's also a lower entry price and won't leave you too leveraged to the art market.Enjoy Your Investment. Chose a piece you like. You'll have to look at the investment for years while its value appreciates, but chances are if you like it, so will others and it should be easier to sell down the track.
Slideshow: Most Expensive Rare U.S. Coins
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fe582aa61ddb3e96b345ea784592f29a | https://www.cnbc.com/2009/10/20/barnes-noble-opens-up-its-nook.html | Barnes & Noble Opens Up Its 'Nook' | Barnes & Noble Opens Up Its 'Nook'
Barnes & Noble has finally unveiled the details of its much-anticipated e-book. It's called the "Nook,"and like Amazon's Kindle, it costs $259.
With this entry competition in the e-book market, of which the Kindle has 60 percent market share, will really heat up. And this holiday season, as Sony goes after a bigger piece of the market with a lower $199 price tag on its e-reader, we can count on this to be the hot gadget gift. The company is taking pre-orders now, it'll ship at the end of November.
The "Nook" comes with a new look and capabilities that distinguish it from the Kindle. It has two screens, a color touch screen like Apple's iTouch and iPhone that allows users to navigate between choices, and a then a black and white e-Ink screen, similar to the Kindle's. The device downloads new publications and books through free 3-G wireless, saying that it enables "in store browsing" of complete books.
CNBC's Book Blog - Bullish On Books
This is also the first eBook that's based on Google's Android software, which Forrester Research analyst Sara Epps described as "a big deal and very cool". (Other eBook devices run on Linux). Barnes & Noble is offering more than a million titles, including more than 500,000 free eBooks through Google, which Amazon doesn't currently offer..
Barnes & Noble is promoting the fact that this is the first e-Book that enables users to lend book to friends. The technology called "LendMe" lets users pick a book they want to share, and then send it not just to other "Nook" devices, but also to iPhone, iPod touch, Blackberry, PC and Macs that have Barnes & Noble eReader software. (It makes sense: in that it allows fans of the device and software to spread the world, while getting new users to download the software). The company is really trying to make the reading experience seamless between the Nook and other devices, offering free e-Reader software to download to iPhones and laptops.
Twitter has been abuzz with jokes about the name of the device since it leaked out yesterday afternoon. "Nookie," "Not a Book," the list goes on... Despite the jokes Barnes & Noble has a real advantage in its network of stores; starting tomorrow it'll roll out storefront displays in its highest-volume stores, and consumers will get to check out the device at customer service centers in every store.
Let this holiday's eBook horse race begin! We'll be watching.
Questions? Comments? MediaMoney@cnbc.com
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db72a5f49fd27f389ee7e2ffe5a3b1f0 | https://www.cnbc.com/2009/10/20/caterpillar-eaton-parker-hannifin-analysts-outlook-now.html | Caterpillar, Eaton, Parker Hannifin: Analyst's Outlook Now | Caterpillar, Eaton, Parker Hannifin: Analyst's Outlook Now
Caterpillar, the world’s largest maker of construction and mining equipment, posted better-than-expected earnings on Tuesday and raised its full-year forecast.
VIDEO0:0000:00Caterpillar Earnings Analysis
Eli Lustgarten, analyst at Longbow Research, shared his analysis of the company.
"It’s better than expected, but it’s not a blowout number by any means,” Lustgarten told CNBC.
The Dow component reported a third-quarter net profit of $404 million, or 64 cents a share, compared with $868 million, or $1.39 a share, a year earlier. Revenue fell 44 percent to $7.29 billion.
CNBC Data Pages:
Dow 30 Stocks—In Real Time Where's the US Dollar Today?Complete Earnings Coverage
Lustgarten said Caterpillar’s stock has gotten ahead of itself and he has a "neutral" rating on the firm.
"We’re much more bullish on Eaton or Parker Hannifin ," he said.
“You have to get topline growth, you have to get some real improvement in profitability. Machinery is still losing money so we’ve got to turn around the operating fundamental of the company...Caterpillar’s doing a great job in this environment when demand is down over 50 percent this year…But we’re not going back to prior-level business for a couple of years.”
More Market Intelligence:
This 'V-Shaped' Recovery is Unsustainable: Chief Investor3 'Out of Favor' Stock Picks: StrategistCramer's 12 Stocks to Play the Recovery
Lustgarten expects Caterpillar's business to pick up 9 to 12 months after the economy starts to get better.
"Don’t expect the business to really pick up until the second half of 2010 and into 2011.”
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______________________________ Disclosures:
Lustgarten does not own shares of Caterpillar.
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Disclaimer
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9b886d593276852ba25952d6566c0c70 | https://www.cnbc.com/2009/10/20/cnbc-prime-time-programming-for-the-weekend-of-october-31st-november-1st-all-times-are-et.html | CNBC PRIME TIME PROGRAMMING FOR THE WEEKEND OF OCTOBER 31ST & NOVEMBER 1ST (ALL TIMES ARE ET) | CNBC PRIME TIME PROGRAMMING FOR THE WEEKEND OF OCTOBER 31ST & NOVEMBER 1ST (ALL TIMES ARE ET)
Saturday, October 31st
7PM Biography on CNBC #5 - Home Depot
8PM American Greed #20
9PM The Suze Orman Show
10PM Big Mac: Inside The McDonalds's Empire
11PM American Greed #20
12AM The Suze Orman Show
1AM The New Age of Walmart
Sunday, November 1st
7PM dLife Diabetes TV
7:30PM The Wall Street Journal Report
8PM Scam of the Century: Bernie Madoff's Crime & Punishment
9PM Game On! The Unauthorized History of Video Games
10PM Porn: Business of Pleasure
11PM Biography on CNBC #4 - Ben & Jerry's
12AM American Greed #21About CNBC:CNBC is the recognized world leader in business news, providing real-time financial market coverage and business information to more than 340 million homes worldwide, including more than 95 million households in the United States and Canada. The network's Business Day programming (weekdays from 5:00 a.m.-7:00 p.m. ET) is produced at CNBC's headquarters in Englewood Cliffs, N.J., and also includes reports from CNBC news bureaus worldwide. Additionally, CNBC viewers can manage their individual investment portfolios and gain additional in-depth information from on-air reports by accessing http://www.cnbc.com.Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://nbcumv.com/cnbc/.
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5ce06530ddae2f9e2041371d661c3d23 | https://www.cnbc.com/2009/10/20/consumers-are-optimistic-but-will-they-spend-money.html | Consumers Are Optimistic, But Will They Spend Money? | Consumers Are Optimistic, But Will They Spend Money?
The National Retail Federationreleased a new report today that finds that consumers are still cautious, and now retailers and advertisers are trying to figure out how to make the most of a tough holiday season.
The NRF's "Consumer Intentions and Actions 2009" survey found consumers saying they'll spend 3.2 percent less this holiday season than last year.
Consumers are planning to spend an average of $682.84 on holiday-related shopping, compared to $705.01 this year.
The economy is front and center in consumers minds — 65 percent say the economy will affect their holiday plans. The NRF's Ellen Davis tells me consumers are getting creative: they're making gifts, they're giving joint gifts, and they're re-using last year's decorations. (I wonder if that means that *re-gifting* will be at a high this year?) She says that while there's been a lot of buzz that higher-end consumers are returning to high-end retailers like Tiffany and Coach, that the majority of Americans won't feel confident about shopping again until jobless numbers start to rebound. That means that mid-level retailers like Macy's are going to be doing some major promotions to attract shoppers.
Slideshow - The Ultimate Christmas Fantasy Shopping List
Advertising and marketing giant Omnicom Media Group gave us an exclusive look at a new survey on consumer optimism that it's releasing later this week. The key finding is an "optimism anomaly" —optimism is on the rise, but it's not translating to loosened purse strings, counter to historic patterns. Of the survey respondents, 67 percent say they've changed to a "cash only" rule and 91 percent say they don't see changing their current habits in the next three months. Yet this comes as 34 percent say that they think their personal financial situation will improve in three months, up from 28 percent in May.
Another point that jumps out — consumers perspectives vary depending on where they get their financial news. People who rely mostly on cable or broadcast business news are most likely to report that their personal financial situation is "moderate" or "strong." If you get your financial news from local TV news, you're most likely to say your financial situation is "weak." And readers of financial newspapers like the Wall Street Journal are *least* likely to describe their financial situation as "strong." Of course it's a chicken and egg question, whether the news source influences the outlook or the outlook influences what kind of news people watch, but all these groups are more cautious.
Questions? Comments? MediaMoney@cnbc.com
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f900466289849263b7d0e176ea1431db | https://www.cnbc.com/2009/10/20/consumers-buried-paul-beatles-rock-band-a-sales-dud.html | Consumers Buried Paul: 'Beatles Rock Band' a Sales Dud | Consumers Buried Paul: 'Beatles Rock Band' a Sales Dud
The 2009 version of Beatlemania appears to have nothing on the 60s.
Despite an extensive marketing campaign, positive reviews and some of the most widespread media attention ever given to a video game, “The Beatles: Rock Band” had a relatively lackluster first month on store shelves.
Source: Harmonix
The game did beat its chief competition —Activision’s “Guitar Hero 5” — by nearly a 2:1 margin in September. And, as developer Harmonix and Electronic Arts were quick to point out, that victory was achieved despite Activision offering a free copy of the upcoming “Guitar Hero: Van Halen” to buyers of “GH5.”
That’s fine on the surface, but analysts were expecting the appeal of the Fab Four to move more than 1 million copies of the game last month. Instead, it sold just 583,000, according to numbers from the NPD Group.
Microsoft’s Xbox led the pack, with 254,000 copies sold for the system. The Nintendo Wii moved 208,600 copies. And Sony (SNE) saw nearly 121,000 copies sold for the PS3.
MTV Games, which owns Harmonix, says it was anything but disappointed with the September sales—and that the game is selling on track with its internal expectations.
The less than stellar performance of “The Beatles: Rock Band” is tied, in part, to the ongoing woes of the music/dance genre. While September showed a 72 percent dollar sales increase over the 2008 numbers, the category as a whole is still down markedly year-over-year.
“This was a genre that had done very well,” says Billy Pidgeon of Game Changer Research. “I think Activision and Harmonix and various karaoke games have been slamming new content into the stores so fast that it has caused some consumer fatigue.”
Slideshow: 10 Curious Game-to-Movie Conversions
Some players, meanwhile, say the game itself was too similar to previous “Rock Band” titles.
Dr. Whit Anderson bought an early copy of the game, but one month later is planning to trade it in at Gamestop to supplement the cost of a newer title. “[It] felt like an expansion to me, not a full release,” he says. “[It was] cool, but not quite enough to be a stand alone game ($60) purchase.”
The crossover potential of The Beatles with today’s core gamers, who are more likely to be listening to Blink 182 and Jay-Z, isn’t exactly ideal. The group might be timeless, but they’re still a Baby Boomer band at their core.
Source: Harmonix
There is an upside to that, though. The mainstream appeal could give “The Beatles: Rock Band” a long tail at retail. With the holiday season about to arrive, shoppers could view it as a good gift item — especially for older gamers.
And, as console prices continue to drop over the coming years, the typical buyer will be more mainstream than hardcore. That could bode well for the game.
The financial performance of “The Beatles: Rock Band” doesn’t end at the retail register, either. Like other “Rock Band” games, players can purchase downloadable content to expand the game experience. So far, they seem eager to do so.
The game itself shipped with 45 songs. A 46th — “All You Need is Love” — was downloadable via Xbox Live for $2. Harmonix reports that over 100,000 people downloaded the song in September.
On Wednesday, the company released the “Abbey Road” album as downloadable content for players, letting them play songs from the album that were not included with the original game, including “Maxwell's Silver Hammer” and “She Came in Through the Bathroom Window.” Individual songs again cost $2 and the complete album will cost $17 on the PS3 and Xbox 360.
That doesn’t mute the disappointment in the initial numbers, given the hype for the game. Pidgeon, however, notes that regardless of its initial sales, “The Beatles: Rock Band” succeeded on other, less tangible levels.
“I’d say it’s a bit of a disappointment, but I’m not that surprised,” he says. “I think this was more a vanity deal that gave publicity to [MTV’s games unit] and to the Beatles reissues on CD.”
According to EMI, notes sales of those digitally remastered CDs in North America, Japan and the U.K. topped 2.25 million copies in the first five days – meaning maybe Beatlemania is still alive — but it’s not a phenomenon that translates well to more modern forms of entertainment.
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d3c01189e03d86a53fb22ee93bc2a18b | https://www.cnbc.com/2009/10/20/cramer-on-caterpillars-next-move.html | Expect Caterpillar to start hiring again soon, Cramer said during Tuesday’s Stop Trading!.
CAT reported a blowout quarter this morning, delivering 64 cents a share when analysts expected just 6 cents a share. While the recession forced the company to slim down in order to survive, Cramer predicted that a weak dollar would spark an increase in international orders. Caterpillar would need to boost its workforce to meet them.
Cramer's 12 Stocks to Play the Recovery
“When I go over their quarter,” Cramer said, “I think they’re short staffed.”
CAT CEO Jim Owens has talked about the potential in Iraq, something a lot of investors see as well. A lot of Mad Money investors are looking for ways to trade the country’s currency, the dinar.
The problem? Cramer doesn’t know of any vehicle through which to do so. In fact, there are few opportunities to invest there: the Babylon Fund, broker Auerbach Grayson and Northern Gulf Partners plans to open a related mutual fund – none of which Cramer recommended, just to be clear. He called on the companies that run exchange-traded funds to create an ETF for Iraq.
“The one that sets it up first,” Cramer said, “is going to get a lot of dollars in it.”
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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3347f683b57f41d6a440ade9eeeaf88c | https://www.cnbc.com/2009/10/20/cramers-new-price-target-for-apple.html | “The company cannot meet demand.”
Apple spoke those magic words during its earnings call on Monday night. And the company wasn’t talking about just its revolutionary iPhone. The consuming public can’t seem to get enough iMacs and MacBooks either. Even during the worst recession since the Great Depression, Apple’s products are flying off the shelves.
Cramer's 12 Stocks to Play the Recovery
That’s why Cramer thinks the stock is headed to $300 a share, a big jump from his previous $264 price target.
VIDEO0:0000:00Apple Picking Season
Look, Apple controls just 3% of the world cell-phone market and 4% of percent of personal computers, yet Steve Jobs continues to push his firm past those industries’ biggest players: Dell , Microsoft , Nokia and Motorola . And the company’s still converting nonbelievers on the regular. The end result? A quarterly beat that was 50% higher than Wall Street’s expectations.
Cramer was so bullish on Apple that he predicted next fiscal year’s earnings would reach $13 a share, up from his earlier $12 call. As for the price target, he assumed money managers would be willing to pay one time the growth rate for a high-quality growth stock like this. The equation then would look like this: the growth rate, 30%, times $13 a share equals $390. Why $300, though?
“Because you would never believe me,” Cramer said, “so I lopped off 90 bucks to be more realistic.”
Call Cramer: 1-800-743-CNBC
Questions for Cramer?
Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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5d0d716bc5c915c3ce4b4a36ef6bf7be | https://www.cnbc.com/2009/10/20/earnings-scorecard.html | Earnings Scorecard | Earnings Scorecard
The earnings parade continues for the third quarter. Add Apple , Caterpillar and DuPont to the list of companies that have beat the analysts' estimates in the third quarter.
Today’s big name: Yahoo! is due out after the bell. We’ll have to wait and see if it can continue the earnings momentum for the technology sector.
Analyst forecasts aren’t counting on a strong third quarter from Yahoo. A Thomson Reuters survey predicts net revenue of $1.12 billion, down from $1.33 billion in the same period a year ago. Analysts say much of that loss is due to the recession and its effect on online advertising. But not all Yahoo-watchers are in the same camp.
“Yahoo’s share of Internet usage minutes has been stable and…[it] stands to gain from trends indicating that internet ad budgets in both search and display will experience cyclical recovery in the seasonally strong Q4”, writes GVA Research Principal David Garrity. He also points to Yahoo’s exposure to Asia through Yahoo Japan and China’s Alibaba.com as positives for the Internet search company.
So is that view correct, or is a more bearish outlook in order? We’ll have answers when Yahoo releases earnings. Mr. Garrity, along with CNBC Silicon Valley Bureau Chief Jim Goldman, will share their thoughts with Maria during the 4pm ET hour of The Closing Bell.
Looking at the rest of the week, with nearly half of the Dow components and more than a quarter of the S&P 500 reporting, how does the earnings scorecard look?
Here's an earnings cheat sheet from Robert Keiser, Senior Director at Standard and Poor's:
84% of S&P 500 companies are beating/meeting consensus expectations, 16% have missed Hardly surprising considering that Q3 earnings expectations have dropped to $15 per share at the end of Q3 from $20 at the start of Q1
So why are analysts so off the mark when it comes to earnings predictions? Are the estimates on the low on purpose… so companies can beat it?
Chris McHugh, Senior Portfolio Manager of the Turner Mid-Cap Growth Fund said earnings revisions were impacted greatly by the credit crisis last year, with many revisions to the downside. He cited Apple, a company that continues to outperform, regardless of expectations.
We'll dig deeper into the earnings picture and where you should be putting your money with Keiser & McHugh at 3pm ET on the Closing Bell.
John Cook and Liza Tan contributed to this article.
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The Dow 30 in Real TimeThe CNBC Stock Blog
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991144de29295b255847c6e5e07d945e | https://www.cnbc.com/2009/10/20/economic-batting-order-ppi-rarely-follows-cpi.html | Economic Batting Order: PPI Rarely Follows CPI | Economic Batting Order: PPI Rarely Follows CPI
PPI after CPI? This morning, the Producer Price Index (PPI) will be reported at 8:30 am EST while its counterpart, the Consumer Price Index (CPI) came out last Thursday. Typically, PPI precedes CPI (in fact, many economists use PPI in their models to forecast CPI), but not this time.
This will be only the second time it has happened in the past 14 months, the 7th time since the start of 2007, and the 14th time in the past 5 years. The last time it happened was in August of this year (July data).
So why the anomaly this month? According to the US Bureau of Labor Statistics (BLS), it is driven by the differences in methodology for the indices. The CPI data is collected directly by BLS economists from retail establishments throughout the month. The PPI data is collected through a survey of 30,000 establishments with a response cut off of the Tuesday of the week that has the 13th of the month in it with exceptions for holidays and semiannual survey panel resets (this month would have been Tues Oct. 13). Due to Columbus Day falling out on Monday Oct 12 this month, the processing for PPI was delayed. The BLS never releases the CPI and PPI on the same day.
Comments? Send them to bythenumbers@cnbc.com
bythenumbers.cnbc.com
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299d938ddb14e324bdfe015381a741d0 | https://www.cnbc.com/2009/10/20/exnews-corp-executive-said-to-be-a-deal-adviser.html | Ex-News Corp. Executive Said to Be a Deal Adviser | Ex-News Corp. Executive Said to Be a Deal Adviser
Peter A. Chernin, the former president of the News Corporation and one of the most prominent media executives not tethered to a major conglomerate, is advising Comcast in its bid to acquire a majority stake in NBC Universal, according to executives briefed on the matter who spoke anonymously because Mr. Chernin’s role in the deal was meant to be private.
Mr. Chernin, these people said, has been acting as a paid consultant for the last several months as Comcast , the nation’s largest cable company, has been in negotiations with General Electric to acquire NBC Universal.
Peter Chernin, former president of News CorporationAP
Mr. Chernin has not been a part of meetings with G.E. and its bankers about deal terms, but has been an active participant in internal meetings at Comcast, these people say. “It’s been very internal,” said one executive who has been in these meetings. “He’s helping the company understand what the prospects are for these content businesses.”
Executives involved in the negotiations said that Mr. Chernin was not expected to take on a management role if a deal was reached. Representatives for Comcast and NBC Universal declined comment.
Still, news of the involvement of Mr. Chernin is likely to put more pressure on Jeffrey Zucker, the chief executive of NBC Universal, who is fighting fires on several fronts. Mr. Zucker, the executives said, learned of Mr. Chernin’s involvement in the last couple of weeks.
For several weeks, executives involved in the talks have said Mr. Zucker would keep his job in the event of a merger, and would most likely report to Stephen B. Burke, the chief operating officer of Comcast, who would oversee the new venture.
On Monday a person close to Comcast said Mr. Zucker has been assured that he would stay on after a merger was completed.
After a period of dormant deal activity in the media world, the talks have also been a boon to bankers — who would reap millions in fees even if a deal was not consummated. Comcast has hired UBS and Morgan Stanley, while G.E. is being advised by J. P. Morgan and Goldman Sachs.
In a sense, Comcast’s move represents the return of an idea that had lately gone out of fashion: that it made economic sense to marry distribution and content. The broad outline of the deal being discussed would give Comcast 51 percent of NBC Universal. Comcast would contribute its own programming assets, which include several sports networks, and cash, perhaps $6 billion to $7 billion, to the new venture. G.E. would contribute about $12 billion of debt, and would own 49 percent of the company.
G.E. owns 80 percent of NBC Universal; Vivendi, the French conglomerate, owns the other 20 percent. G.E. is in negotiations with Vivendi to buy its 20 percent stake, a remnant of a 2004 deal between Vivendi and G.E.
In February, Mr. Chernin announced that he would leave the News Corporation, the media giant controlled by Rupert Murdoch, after 20 years. Mr. Chernin, who most closely oversaw the company’s Los Angeles-based film and television businesses, left the company with a generous exit package, which included movie and television production deals with 20th Century Fox.
Mr. Chernin’s new production company has already sold two comedies to CBS, according to The Hollywood Reporter, and is also working on several films with Fox.
Executives said that Mr. Chernin has had a long personal relationship with Mr. Burke of Comcast, a former top executive at the Walt Disney Company. These people say that the talks are proceeding, and that an announcement could be made in early November.
Comcast failed in a hostile takeover bid for Disney in 2004, and has long held ambitions of joining its cable business, the largest in the country with about 24 million subscribers, with large-scale film and television production, and big cable networks.
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dc5a4fdc2b18e014bb1c1796d93a5ce5 | https://www.cnbc.com/2009/10/20/former-big-bear-turns-baby-bull.html | It seems even the most bearish market mavens can’t fight the bullish momentum in this stock market. Wait until you find out who’s now a buyer of stocks.
Richard Bernstein, the former Merrill Lynch chief investment strategist, and one of the biggest bears we know is changing his tune. People like me have underestimated the rebound, Bernstein says. What’s made him a believer?
You might remember the last time Bernstein was on Fast Money he told the traders – at the foundation of the stock market and the recovery is jobs. The market can’t sustain itself unless people are brining home the bacon.
And although the unemployment rate continues to rise Bernstein is more focused on initial jobless claims which he and many others consider a leading indicator. And that number has started to decline.
In fact, when they were reported last week new jobless claims dropped to the lowest level since January. And that trend combined with low inflation likely means Americans will regain their appetite for spending.
Another way of saying that is – the economy is slowly getting better. “if you believe in the recovery this is the prime time to be a value investor.”
What’s the trade?
Bernstein says the best value are in junky names. “The companies that you’d hate to own tend to perform the best. In almost every industry go for lower quality companies."
Huh?
"In 1991 - a time period that was similar to now - 'C' and 'D' rated stocks by S&P went up 90% that year and continued to outperform for 4 years after that," he says.
Why?
"As the economy continues to improve investors shift from focussing on the balance sheet to focussing on the income statement and cash flow. And the junkiest companies have the greatest operating leverage so their cash flow just explodes," he says.
Although Bernstein doesn't reveal names he does says "consumer cyclical stocks probably have strong upside potential."History shows that as long as initial jobless claims trend downward the performance of consumer discretionary stocks trend up," he concludes.
VIDEO0:0000:00Word on the Street
You can find out interview with Richard Bernstein at the end of the Word on the Street video.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On Oct. 20th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (BAC) Preferred, (BAC) Call Spreads, (BAC); Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (BKS) Puts, Is Short (BKS); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (TGT); Finerman's Firm Owns (UNH) Calls; Finerman's Firm And Finerman Own (WFC) Preferred; Finerrman's Firm And Finerman Own (WMT); Finerman's Firm Is Short (UNG), (IJR), (MDY), (SPY), (IWM), (USO); Finerman Owns (AAPL); Najarian Owns (BX) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (LAZ), Is Short (LAZ) Call, Owns (LAZ) Puts; Najarian Owns (MGM) Calls; Najarian Owns (STX) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), Is Short (YHOO) Calls; Najarian Owns (TEX) Call Spread; Finerman's Firm And Finerman Own (FLS); Finerman's Firm Owns (DRI); Seygem Asset Managemnet Is Short (PBR); Seygem Asset Management Is Short (EWZ); Seymour Owns (CHL), (EWZ), (AAPL), (BAC), (CAT), (MGM)
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ea4c1f0e1bbfd36ff8d1e19e3decdcab | https://www.cnbc.com/2009/10/20/future-of-energy-w-peabody-ceo.html | Peabody Energy said Tuesday its third-quarter profits plunged 71 percent as cooler weather and cheap natural gas curtailed coal-fired power generation. But the performance soundly topped expectations and the company offered a rosier production outlook.
Specifically, CEO Greg Boyce said demand for coal to generate electricity and make steel in China and India is expected to grow by 7 percent to 8 percent annually in the next five years, leaving the world "chronically" short of the fuel.
He also outlined his company's plans to double exports from Australia to handle Asian demand and to develop its joint venture in Mongolia to produce coal for the Chinese.
What else does Boyce have to say about the future of energy? Check out our interview. Watch the video below!
VIDEO0:0000:00Coal-Hard Cash
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On Oct. 20th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (BAC) Preferred, (BAC) Call Spreads, (BAC); Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (BKS) Puts, Is Short (BKS); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (TGT); Finerman's Firm Owns (UNH) Calls; Finerman's Firm And Finerman Own (WFC) Preferred; Finerrman's Firm And Finerman Own (WMT); Finerman's Firm Is Short (UNG), (IJR), (MDY), (SPY), (IWM), (USO); Finerman Owns (AAPL); Najarian Owns (BX) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (LAZ), Is Short (LAZ) Call, Owns (LAZ) Puts; Najarian Owns (MGM) Calls; Najarian Owns (STX) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), Is Short (YHOO) Calls; Najarian Owns (TEX) Call Spread; Finerman's Firm And Finerman Own (FLS); Finerman's Firm Owns (DRI); Seygem Asset Managemnet Is Short (PBR); Seygem Asset Management Is Short (EWZ); Seymour Owns (CHL), (EWZ), (AAPL), (BAC), (CAT), (MGM)
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f2eeb877027cc2c18614f36d0e53fdeb | https://www.cnbc.com/2009/10/20/honda-pins-on-electric-hopes-as-f1-dreams-get-dashed.html | Honda Pins on Electric Hopes, as F1 Dreams Get Dashed | Honda Pins on Electric Hopes, as F1 Dreams Get Dashed
Nearly two years ago to this date, at the 2007 Tokyo Motor Show, Honda showcased their environmental F1 car concept. Going green was its aim.
This year, Honda might be going a different shade of green.At the hugely reduced 2009 Tokyo Motor Show, conspicuously missing from its display is their F1 car.
Instead, Honda Motor will have to watch from afar, perhaps with pursed lips, wondering if they made a mistake as Brawn GP celebrates their double victories.
In its maiden season, with one race weekend to spare, Brawn GP has swept the driver's title as well as the constructor's crown.
Margaux Matrix, a media analysis company that analyzes broadcast and advertizing rates in 18 countries, says Honda missed out on at least $225 million of brand exposure on television.
Brawn GP rose from the ashes of Honda in March this year, when the Japanese automaker announced it was pulling out of the sport.
It felt that no tourniquet could stem the bleeding of 20 billion yen ($220 million) a year to support its involvement in the sport.
So Honda got out of F1 and decided to concentrate on its bread and butter issues of manufacturing mass consumer cars and chasing that hybrid Holy Grail.
Jenson Button may not win any talent contest when he burst into song on the team radio singing "We are the champions" after the race. But he knows he has closure on a turbulent year, and when many had doubted his talent over the years.
Honda, in the meantime, will just probably have to hum to themselves a ditty not as fast nor furious. They will instead try to excite the world with their state-of-the-art environmentally-friendly range of electric vehicles.
Honda Eyes Electric Car Launch in Major MarketsMore Asia Pacific Headlines
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7e78d84c47d8cd024e9fc10b1da6e424 | https://www.cnbc.com/2009/10/20/housing-market-recovery-looks-slow-in-the-making.html | Housing Market Recovery Looks Slow in the Making | Housing Market Recovery Looks Slow in the Making
Applications for home building permits, a key gauge of future construction, fell in September by the largest amount in five months—a discouraging sign for the housing industry. A rebound in housing is needed to support a broader economic recovery.
Representatives for the industry told a congressional panel Tuesday that the $8,000 tax credit for first-time buyers needs to be extended and expanded to ensure the housing sector will emerge from the recession.
But the Obama administration, facing soaring budget deficits, has not decided whether to support any extension. And some private economists played down the impact of such a move, arguing that most interested buyers already had taken advantage of the tax break.
Meanwhile, the Labor Department said wholesale prices fell 0.6 percent last month on a drop in energy costs. Outside food and energy, core inflation edged down 0.1 percent. In the 12 months ending in September, core wholesale prices rose a modest 1.8 percent.
The Commerce Department said construction of homes and apartments rose 0.5 percent last month to a seasonally adjusted annual rate of 590,000 units. That was a weaker showing than the 610,000 economists had expected.
The applications for building permits fell 1.2 percent, the second setback in the past three months and the biggest decline since a 2.5 percent drop in April. It likely means construction will weaken a bit in coming months, partly because builders had accelerated projects to complete them before the tax credit expires Nov. 30.
The industry also faces other challenges, including record levels of home foreclosures and unemployment that is currently at a 26-year high of 9.8 percent and not expected to peak until next summer, said Sal Guatieri, an economist at BMO Capital Markets.
But Patrick Newport, a housing economist at Global Insight, said a slow recovery likely will continue because inventories of new homes have fallen so far that builders have an incentive to ramp up sales with or without a tax credit.
Realty Check Blog: HUD Hints on Home Buyer Tax Credit
"We see a very slow recovery for housing that will gradually gain strength over the next two to three years before construction gets back to more normal levels," Newport said.
Housing has been struggling to recover this year following the worst collapse in decades, which helped pull the overall economy into the longest recession since the 1930s. Real estate agents and homebuilders are lobbying Congress to extend the tax credit, arguing government support remains critical.
At a hearing Tuesday before the Senate Banking Committee, Sen. Johnny Isakson, R-Ga., who spent his career as a real estate agent before being elected to Congress, said "this market is going to die a sudden death" without an extension.
Isakson and committee chairman Christopher Dodd, D-Conn., want to extend the credit until June 30 and to drop the requirement that the credit be available only to first-time buyers at an estimated cost of $16.7 billion.
The lawmakers have suggested that their measure be attached to an extension of federal assistance to the millions in danger of exhausting unemployment insurance benefits.
Housing Secretary Shaun Donovan testified that supporting the housing market "can be very expensive, especially at a time of significant budget deficits."
The administration will make a recommendation on whether to extend the credit in the coming weeks, after studying data on tax filings from the Internal Revenue Service.
Slideshow: Highest End Real Estate
The drop in wholesale prices was another sign the recession had kept a lid on inflation. Last week, the government said consumer prices edged up a modest 0.2 percent in September.
But the cost for a barrel of crude jumped $10 this month, hitting $75 for the first time in a year last week and then passing $80 early Tuesday. The value of the dollar plunged in October and because crude is bought and sold in the U.S. currency, international investors who can essentially buy more crude for less have rushed in to snap up oil contracts.
If oil prices continue to rise, gasoline and other energy products, which make up 17.8 percent of the government's Producer Price Index, will become more expensive for consumers in coming months. But analysts said the lingering impact of the recession, along with rising unemployment, will keep a lid on overall inflation.
The 0.5 percent rise in overall housing construction in September followed a 1 percent drop in August that was revised down from an initial estimate of a 1.5 percent gain.
Construction of single-family homes rose 3.9 percent last month to an annual rate of 501,000 units, reversing a 4.7 percent drop in August. Multifamily construction, a much smaller and more volatile segment, posted a 15.2 percent drop following a 20.7 percent rise in August.
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913fc1a8f4dbad687ab6f7484fc1a57b | https://www.cnbc.com/2009/10/20/hud-hints-on-home-buyer-tax-credit.html | HUD Hints on Home Buyer Tax Credit | HUD Hints on Home Buyer Tax Credit
I have to say I was a bit surprised at the crafting of HUD Secretary Shaun Donovan's statement before the Senate Banking Committee today, specifically with regards to the first time home buyer tax credit. Donovan followed testimony from Sen. Johnny Isakson (R-GA), who is pushing for not only and extension of the credit through the first half of 2010, but an expansion to all home buyers with joint annual income up to $300,000.
Slideshow: 10 Most Affordable Metro Areas
Isakson told fellow Senators that without such an expansion, "We will have a dramatic and awful situation in the US from which recovery will be more difficult than what we've experienced already."
Slideshow - America's Most Impressive Golf Homes
Going into the hearing, we already knew that the Obama Administration had yet to take a stand publicly on an extension of the credit, which turns into a pumpkin Nov. 30th. A few weeks ago, during a conference call on the government's loan modification program, I asked a "Senior Administration Official" about the credit, and he responded, "There are a lot of ideas out there for what to do with the extension of the home buyer credit, and other credits, and those issues are not yet finalized from our perspective internally." At the time I called that a "punt." Your safest play.
No punting today.
HUD Secretary Donovan, in his opening statement, said:
I am also aware of the strong support in Congress for doing more to support the housing market, including extending the First Time Home Buyer Tax Credit beyond 2009. At the same time, I am mindful that these proposals can be very expensive, especially at a time of significant budget deficits. I can assure you the Administration will work with Congress to fashion appropriate and effective home buyer incentives, mindful of both their benefits to stimulating new demand and their costs to the American taxpayer.
I don't know about you, but that sounded more like a "No" to me than a "Yes." When pushed, by the never-timid and always blunt Sen. Jim Bunning (R-KY) on why the Administration needed more time to study the costs, Sec. Donovan continued to say they would have an answer one way or another in a few weeks.
I think it's one thing to answer a question by saying we're considering our options and weighing the costs, and another thing entirely to cite budget deficits and the expense to taxpayers, twice, in a prepared statement. Just my ruminations.
Questions? Comments? RealtyCheck@cnbc.com
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e5003b2e92ac5b18949282dd1332292d | https://www.cnbc.com/2009/10/20/improving-global-economy-shows-up-in-earnings.html | Improving Global Economy Shows Up in Earnings | Improving Global Economy Shows Up in Earnings
Topline beats take back seat to positive 2010 commentary. Six big names beat earnings estimates: Apple, Coke, Pfizer, United Technologies and Caterpillar all beat on the bottom line.
But something's different this time: a higher percentage are beating on the topline as well. Apple did. Even Dupont, Pfizer and UTX did.
What is different this time is that the big multinationals have reaped the benefits of an improving overseas market, along with the weaker dollar.
The improving global economy is showing up in several of today's comments.
Caterpillar's Jim Owens:
1) "the third quarter marked the low point for Caterpillar sales and revenues" 2) "we are seeing encouraging signs that indicate a recovery may be underway" 3) 2010: "we've already started planning for an upturn"
Elsewhere:
1) futures dropped at 8:30 AM ET as September Housing Starts and Permits were below expectations. 2) Caterpillar up 6 percent pre-open, came in at $0.64, way above the $0.06 expected. Sales were not a blowout: $7.3 billion vs. $7.49 billion consensus.
The bull consensus seems to be playing out: Q2-Q3 may indeed be the trough for production, and with inventories lean even a small improvement in orders will help the top and bottom line.
2010 preliminary guidance of an increase of 10 to 25 percent for sales is also a positive surprise.
3) UTX at $1.14 beat by $0.02, and while revenues were a tad better than consensus cost cutting was the major factor in the beat. CEO Louis Chenevert said orders had "stabilized."
4) DuPont beat consensus by two cents and talked about improving demand across key markets. Here's an interesting stat: profit is up 11 percent, but top line dropped 18.3 percent. They narrowed their earnings outlook for the year...it now expects earnings of $1.95 to $2.05 per share versus previous estimate of $1.70 - $2.10.
5) Strong earnings from Texas Instruments, as well as earlier strong report from Intel and Apple should keep the semiconductors going. The SMH (Semiconductor HOLDR, the main ETF-type instrument professionals use to trade semis) has been strong all year, bottomed earlier than the S&P 500, and has had a stronger recovery in the past year.
6) Coca-Cola topped Street estimates by a penny. The soft drink maker says higher sales volume and cost cuts helped pop Q3 profits. Sales by volume rose 2%.
7) Pfizer also beat the Street. The drug maker came in at $0.51 for Q3 excluding items vs. estimate of $0.48. Aggressive cost-cutting helped offset the negative foreign exchange and competition from cheaper generics.
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8119201ffbf0544b6f274622aec6610d | https://www.cnbc.com/2009/10/20/investment-strategist-prep-for-job-growth-in-early-2010.html | Investment Strategist: Prep for Job Growth in Early 2010 | Investment Strategist: Prep for Job Growth in Early 2010
Stocks opened mixed after several earnings reports beat expectations but economic numbers missed their targets. Dan Genter, president, CEO and CIO of RNC Genter Capital Management, and Alan Gayle, senior investment strategist at RidgeWorth Capital Management, shared their market outlooks. (See Genter's stock and sector picks, below.)
VIDEO0:0000:00Market Strategists Share Insight
“Earnings reports are coming out better than expected, but we also think that the investing climate is continuing to climb a wall of worry,” Gayle told CNBC.
“Last quarter, our wall of worry started at the bottom of the income statement, with bottomline earnings that was 'less worse' than expected. Now that attention is gravitating up the income statement. We’re looking for numbers that are less worse on the revenue side and so far they’re turning out okay.”
CNBC Data Pages:
Dow 30 Stocks—In Real Time Oil, Gold, Natural Gas Prices Now Where's the US Dollar Today?
Gayle said the economy is currently in the recovery portion and the layoffs and cost cuts will begin to stabilize.
“We think there is going to be a transition from that recovery period to a slow expansion period,” he said. “So I’m looking for some job additions as we go through the first part of 2010.”
More Market Intelligence:
'Melt-Up' Coming for Stock Markets: StrategistMy 5 Hot Tech Picks: Fund ManagerBuy Firms That Are 'Deeply Out of Favor': Strategist
In the meantime, Genter said earnings are not only doing well, but there are also increases in revenue on the topline as well.
"Right now, these companies are running so lean that all they need is moderate growth and they’re going to have significant margin expansion,” he said.
Genter said he continues to favor the technology and health care sectors. He likes Johnson & Johnson and Teva .
______________________________CNBC Slideshows:
The S&P 500's Leanest Companies
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Morgan Stanley Unit Sold for $1.5 Billion to Invesco
Caterpillar
Caterpillar Trounces Estimates, Boosts OutlookCAT, Eaton, Parker Hannifin: Analyst's Stock View
Pfizer
Pfizer Profit Beats Expectations on Cost Cutting
______________________________ Disclosures:
No immediate information was available for Gayle or Genter.
______________________________
Disclaimer
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b24b710a067751ab7e149318ff688661 | https://www.cnbc.com/2009/10/20/investors-lap-up-apples-47-percent-profit-jump.html | Investors Lap up Apple's 47 Percent Profit Jump | Investors Lap up Apple's 47 Percent Profit Jump
A flag showing the Apple Computer logo flies outside the Apple shop in Regent Street, LondonKirsty Wigglesworth
Wall Street knew Apple results for the most recent quarter would blow past the company's conservative guidance, but investors clearly weren't prepared for the 47 percent jump in profit that Apple delivered.
Shares leaped 5.4 percent Tuesday on news that Apple sold more iPhone and Mac computers than ever.
Apple's financial report, released after the markets closed Monday, "reinforces my view that Apple is hands down the best technology company on the planet," said Broadpoint AmTech analyst Brian Marshall.
Apple unveiled a faster iPhone in June and cut the price of the previous generation of the phone to $99. Those moves boosted iPhone sales from July through September to 7.4 million devices, half a million more than in the same period of 2008, despite shortages of the newest iPhones that persisted through the quarter.
VIDEO0:0000:00Apple Earnings Reaction
Apple weathered the economic meltdown better than other computer companies, giving it a running start when PC sales grew in the quarter. Apple had also updated its Mac operating system and refreshed its MacBook Pro line. Apple sold 3.1 million Macs, a 19 percent rise from the same period a year ago.
As Apple's iPhone, which has iPod features built in, has grown in popularity, Apple's regular iPod music player business has suffered. The company sold 10.2 million iPods in the quarter, 8 percent fewer than last year, even though Apple unveiled a new iPod Nano with a video camera in September.
But even with the number of iPods dropping, iPod revenue rose in the quarter. That means people are trading up, Marshall said — buying a Nano to replace a Shuffle, or an iPod Touch to replace a Nano. Revenue for the iPod Touch, which is like an iPhone without the phone, doubled from a year ago.
Apple is rumored to be working on a tablet-style computer that's a cross between a laptop and an iPhone or iPod Touch, but the company is notoriously secretive about new products. On a conference call, Apple executives boasted vaguely about the company's "amazing" future offerings and dropped a tantalizing indication of something new for holiday shopping.
Apple typically spends more on air freight in the current quarter in order to make sure stores are stocked with iPods and other gadgets for the holidays, but this year, the increase is more than usual.
"I'm sorry I can't be specific on the product, but it's, it's, it's an abnormal sequential increase," Apple's chief operating officer, Tim Cook, said in response to a question from an analyst.
Apple, based in Cupertino, Calif., said it earned $1.7 billion, or $1.82 per share, in its fiscal fourth quarter, which ended Sept. 26. Revenue jumped 25 percent to $9.9 billion.
Slideshow: 25 Years of Tech Blunders
For all of fiscal 2009, Apple said its profit rose 18 percent to $5.7 billion, or $5.36 per share. Revenue climbed 13 percent to $36.5 billion.
For the current quarter, Apple said it expects to earn $1.70 to $1.78 per share, well below the $1.91 that analysts were expecting, though the company traditionally gives extremely conservative guidance. Apple predicted revenue of $11.3 billion to $11.6 billion, while analysts are looking for $11.4 billion, according to a Thomson Reuters poll.
Wall Street shrugged off the profit guidance and sent the company's shares surging in extended trading Monday, past the all-time high of $202.96, reached Dec. 27, 2007. In Tuesday morning trading the shares were up $10.20 at $200.06.
Investors are anticipating even more growth for the iPhone. Apple is set to officially begin selling iPhones in China on Oct. 30 and plans to launch in South Korea during this quarter as well.
But Apple could hit snags in those countries in the first few months. The company struggled to supply enough of the newest iPhone 3GS to store shelves around the world over the summer. Cook said most of the shortages had eased, but he added that he wishes more iPhones were ready for the China launch.
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080298dcf11803b0f9657f6344f8d596 | https://www.cnbc.com/2009/10/20/lightning-round-microsoft-apple-google-and-more.html | American Superconductor : AMSC works as a speculation play, Cramer said.
Aqua America : Cramer can’t get behind WTR, saying the stock has been “a disappointment for years.”
Cramer's 12 Stocks to Play the Recovery
Microsoft : MSFT is “just OK,” Cramer said. He thinks Apple and Google are better stocks.
China Unicom : Cramer is bullish on CHU.
Human Genome Sciences : The money’s been made in HGSI, Cramer said. Take profits.
Call Cramer: 1-800-743-CNBC
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Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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0600b790022a241fb4c9bb05463798d6 | https://www.cnbc.com/2009/10/20/new-york-times-moves-to-trim-100-in-newsroom.html | New York Times Moves to Trim 100 in Newsroom | New York Times Moves to Trim 100 in Newsroom
The New York Times plans to eliminate 100 newsroom jobs — about 8 percent of the total — by year’s end, offering buyouts to union and nonunion employees, and resorting to layoffs if it cannot get enough people to leave voluntarily, the paper announced on Monday.
The program mirrors one carried out in the spring of 2008, when the paper erased 100 positions in its newsroom, though other jobs were created, so the net reduction was smaller. That round of cuts included some layoffs of journalists — about 15 to 20, though The Times would not disclose the actual figure — which was the first time in memory such a layoff had happened.
The New York Times building.AP
Times executives said this year that they did not anticipate — but would not rule out — the news staff shrinking in 2009, except through attrition. In fact, when employees took a 5 percent pay cut for most of this year, it was meant to forestall any staff reductions. But hopes for a year-end turnaround in the newspaper business have faded.
Third-quarter results reported in the last few days by the Gannett Company and the McClatchy Company indicate that the industry’s steep drop in advertising barely slowed in the third quarter. The New York Times Company will report its results for the quarter on Thursday. The ad slump has caused newspapers to consider charging readers for online content, a topic of heated debate within The Times this year.
“I won’t pretend that these staff cuts will not add to the burdens of journalists whose responsibilities have grown faster than their compensation,” Bill Keller, the executive editor of The Times, wrote in a note to his staff. He added, “Like you, I yearn for the day when we can do our jobs without looking over our shoulders for economic thunderstorms.”
The paper has made much deeper reductions in other departments than it has in the newsroom, but the advertising drop pummeling the industry has forced cuts in the news operation as well. Besides the staff pay cut, the newsroom has eliminated some sections of the paper and lowered its budgets for freelancers.
In addition to the newsroom cuts, The Times said Monday that it would offer buyouts to Newspaper Guild-represented employees in other departments, including advertising. But the paper says it is not seeking to eliminate a specific number of jobs among those workers.
The Times’s news department peaked at more than 1,330 employees before the last round of cuts. The current number of workers is about 1,250; no other American newspaper has more than about 750.
Nearly all metropolitan papers have been cutting their news operations for years, and some have fewer than half as many people in their newsrooms as they did a few years ago. The Los Angeles Times has dropped to about 600 news employees, from more than 1,200; The Washington Post to about 700, from more than 900; and The Boston Globe, which is owned by the Times Company, to close to 300, from well over 500.
The Times will mail buyout packages to the entire newsroom staff on Thursday. The employees have 45 days to decide whether to apply for the buyout. Under the Newspaper Guild contract that covers most newsroom employees, buyouts generally offer three weeks’ salary for each year of service; nonunion employees are offered two weeks for each year.
In a question-and-answer session with Jill Abramson and John Geddes, the managing editors of The Times, several newsroom employees asked about the possibility of using another pay cut, furloughs, part-time work or other measures to avoid layoffs, but Mr. Geddes said such steps could not address the paper’s financial problems in the long term.
He said there was no plan for distributing the cuts among news departments or job descriptions — termination decisions, he said, could be largely dictated by who applies for buyouts.
CNBC Slideshow: Colleges That Bring the Highest Paycheck
The announcement and staff meeting came before the close of market trading. Shares in the Times Company rose 5 percent during the trading day and fell slightly after hours.
Also on Monday, Gannett reported third-quarter net income of $73.8 million, down from $158.1 million a year earlier. The company’s newspaper ad revenue fell 28.4 percent in the quarter, an improvement from the 33.1 percent decline over the first half of the year. That was similar to the 28.1 percent drop that McClatchy reported last week.
Industrywide, ad revenue fell 28.6 percent in the first half of this year, and analysts and industry executives recently predicted that the pace of decline would slow to 25 percent or less in the third quarter. The reports from Gannett and McClatchy, two of the largest publishers, suggest that such estimates were a little too optimistic.
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bc06a2122d930778d688ce7f8e94da04 | https://www.cnbc.com/2009/10/20/oct-20-63-sp-stocks-hit-new-52week-highs.html | Oct. 20: 63 S&P Stocks Hit New 52-Week Highs | Oct. 20: 63 S&P Stocks Hit New 52-Week Highs
Stocks in the S&P Trading at New 52-Week Highs
In today's trading session, a total of 63 stocks in the S&P 500 hit new 52-week highs. Here is a look at those companies.
Send comments to:bythenumbers@cnbc.com
bythenumbers.cnbc.com
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76652e047c8046492bc02236a9f7ba05 | https://www.cnbc.com/2009/10/20/on-wall-street-thin-line-splits-insider-trading-and-research.html | On Wall Street, Thin Line Splits Insider Trading and Research | On Wall Street, Thin Line Splits Insider Trading and Research
The most precious commodity on Wall Street is information, and savvy players will do almost anything for it.
Raj Rajaratnamcnbc.com
Some investment funds canvass doctors to scout out blockbuster drugs. Others pay meteorologists to forecast weather that will affect the price of oil and wheat. And still others hire corporate executives to provide an inside view of companies and industries.
But now some of Wall Street’s biggest hedge funds are watching nervously as prosecutors say that Raj Rajaratnam, a billionaire fund manager, went too far in this relentless quest for a trading edge.
On Friday, federal prosecutors charged Mr. Rajaratnam and five other people with insider trading — using information that they received illegally in an effort to make riskless profits on stocks. Prosecutors have said they are still investigating the case, and some defense lawyers who are not representing people already facing charges said Monday that they could not comment on the record because they may be retained soon.
Insider trading, however, can be difficult to prove, said Leslie R. Caldwell, the co-chief of the white-collar crime division at the law firm Morgan, Lewis & Bockius. The line between buying legitimate research, trading rumors and gossip, and illegally paying for market-moving information can be complicated.
“There are some obvious insider trading cases where people obviously have a duty, they’re obviously misappropriating information,” said Ms. Caldwell, the former chief of the task force that prosecuted the Enron cases. “In terms of money managers and other people, where the duty becomes a little less clear, the relationships become a little less clear, the motivations become a little less clear, it can become more and more challenging.”
Indeed, the case against Mr. Rajaratnam and his co-defendants appears to be far more complicated than a simple exchange of cash for information.
A close reading of the two criminal complaints filed so far, and an associated civil complaint filed by the Securities and Exchange Commission, suggests a web in which hedge fund managers, analysts, corporate executives, and consultants and other people outside Wall Street traded tips — sometimes for money, sometimes for other tips, and sometimes for little more than the promise of unspecified future favors.
Not every trade that the complaint outlines was profitable. In fact, Mr. Rajaratnam’s hedge fund, the Galleon Group, lost millions of dollars buying shares of Advanced Micro Devices , the computer chip maker, after learning that the government of Abu Dhabi planned to invest in AMD, according to the complaint. The investment did occur, but AMD stock plunged between August 2008, when Galleon began buying, and October 2008, when the deal was announced.
At other times, Mr. Rajaratnam received information from an unnamed witness who is cooperating with the government investigation. But the complaint does not state whether Mr. Rajaratnam knew the ultimate sources of the information he received from the witness. Nor does it allege that Mr. Rajaratnam paid the witness for the information.
Still, the existence of a cooperating witness — along with the fact that prosecutors wiretapped some of Mr. Rajaratnam’s conversations — gives them a great advantage in the case, said David S. Ruder, a law professor at Northwestern University and a former chairman of the SEC The conversations may help show that Mr. Rajaratnam knew the information was valuable and that he should not be trading on it, Mr. Ruder said.
Slideshow: Rouges: Gallery of Financial Crime
“It gets you around the mens rea, or state of mind question,” he said. “If you know it’s coming from an insider, or if you have strong reason to believe it’s coming from an insider, you’re in trouble.”
The SEC has tried to combat insider trading for decades, relying mainly on tips and reports of suspicious trading in a single stock. Two years ago, the commission began to install sophisticated data-mining software that examines trading records, looking for patterns of trades across stocks that appear suspiciously profitable.
Unlike the inquiries conducted by stock markets like the New York Stock Exchange, which focus on individual stocks, the SEC’s program aims to identify traders who pop up repeatedly, making surprisingly successful trades in many companies.
The SEC has identified some insider trading cases through this project, but the investigation of Mr. Rajaratnam was not one of them.
Federal securities laws put limits on the race for information. Corporate executives are not allowed to give investors market-moving tips about their companies. Companies must disclose critical news, like quarterly earnings, to everyone at the same time. Investors who try to lock in guaranteed profits by, say, paying to see a news release an hour before a company posts it are engaging in illegal insider trading.
Those are the laws that prosecutors said on Friday were broken by Mr. Rajaratnam and five other investors and corporate executives.
Michael J. de la Merced contributed reporting.
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8e6b7fb409ad28da2e6ea7fa9b94f422 | https://www.cnbc.com/2009/10/20/options-trading-everybodys-doing-it.html | More and more retail investors are entering the market, and optionsXpress’ most recent quarter seems to prove it.
Cramer's 12 Stocks to Play the Recovery
OXPS is up 5.3% since Cramer’s Sept. 8 call, no doubt helped by today’s upside surprise. The company netted 6,600 new accounts, saw September daily average revenue trades climb 6% from August and booked 2% more in commissions per trade than the previous quarter.
VIDEO0:0000:00A Solid Option?
Almost all of optionsXpress’ 343,900 customers are believed to be actively trading options, Cramer said, with options comprising 59% of the company’s retail trades, up from 57% last quarter. OXPS is in such a sweet spot that he called it the best way to play options short of actually buying them.
Don’t believe Cramer? Then check out his interview with optionsXpress CEO David Fisher.
Call Cramer: 1-800-743-CNBC
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Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com
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fdf34b5a5b48e5755e8c44549a532e48 | https://www.cnbc.com/2009/10/20/pfizer-fills-its-pipe.html | Pfizer Fills Its Pipe | Pfizer Fills Its Pipe
One of the things we learned in Pfizer'searnings press releaseand on the conference call today is that since the start of 2008 the company has eliminated 11,200 positions. And now that the world's biggest pharmaceutical firm has gotten even bigger by swallowing Wyeth, it's going to let go even more people to help wring out about $4 billion in annual expenses by 2012.
You can get details on that in the exclusive interview with Chairman and CEO Jeff Kindler.
It's a cruel reality of big deals like this one.
Saving money, so that more of it falls to the bottom line, is part of the motivation for doing mergers in the first place. There's never a good time to get a pink slip but, of course, it stings even more in the current economy and job market.
The cost cuts are a big deal and a major cause of concern for those inside the company and the drug industry. But Wall Street and investors are primarily concerned about two things: 1. The dividend (again, you can get more on that in the Kindler interview) and 2. What's next. By that I mean what potential new drugs the new Pfizer has in its development pipeline. After that interview with Kindler, I had the rare opportunity (I've only been inside the company's global HQ in Manhattan twice, including today) to sit down and chat with a couple of PFE execs for a bit. One of them was the company's head of PharmaTherapeutics R & D, Martin Mackay. (By the way, it isn't pronounced McKay. It's muh-kai.)
Anyway, he said that over the next few weeks Pfizer will be making a slew of go/no-go decisions on a bunch of drugs that are no further along than mid-stage clinical development. With the help of expert Pfizer retirees who got confidential sneak peeks at Wyeth's stuff over the past several months, Mackay and his team will begin to cull the pipeline. He predicted the number will be in the double-digit percentage range, but wouldn't get more specific than that. "We've got a full pipeline," Mackay said, "(but) we will be judged by our (FDA) submissions over the 2010-2012 time period." In particular, Mackay said 2011 will be the "heaviest" year for turning in applications for FDA drug approval in his 30 or so years in the business. Some of them will be for completely new drugs, some will be for new uses on existing drugs.
The one that gets the most attention is Bap, for short. That was Wyeth's Alzheimer's Disease treatment, which is in late-stage tests right now. Mid-stage clinical trial results were mixed. "I think it's got a fighting chance," Mackay told me. The phase three data should be out sometime next year. Elan and Johnson & Johnson also have a stake in the product.
And just in case you thought something looks a little different about that old Pfizer logo, you're right. I got a tip on this from someone I follow on Twitter, but the Pfizer oval used to be flat or horizontal and now it tilts just ever-so-slightly up to the right. It's supposed to convey the feeling of "moving forward" or something. I'm sure those who are getting laid off are going to have a field day guessing and gossiping about how much that corporate nip/tuck cost.
Questions? Comments? Pharma@cnbc.com and follow me on Twitter at mhuckman
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045151f14e578cb2999c0d618bd6f9ec | https://www.cnbc.com/2009/10/20/poll-are-whisper-numbers-setting-earnings-expectations-too-high.html | Poll: Are Whisper Numbers Setting Earnings Expectations Too High? | Poll: Are Whisper Numbers Setting Earnings Expectations Too High?
Last year, the market was scrambling to lower its earnings expectations. Now, the pendulum has swung the other way.
After several big names beat not only analysts' consensus estimates but Wall Street's whisper numbers — the unofficial numbers buzzing around the market — it set expectations for earnings and the recovery pretty high.
But last week, Goldman Sachs got burned by the whisper numbersafter JPMorgan’s stellar beat. Goldman delivered a strong report by most accounts, handily beating analysts’ expectation. But because it fell short of the whisper numbers, which some said went as high as $6 a share, nearly two bucks above consensus, traders punished the stock — as well as other financials.
Today, tremendous beats by Apple and Caterpillar boosted those stocks but weren’t able to help the market keep its rally going.
Has Wall Street gotten a little ahead of itself on earnings expectations? Are the whisper numbers setting the bar too high?
Take our poll and cast your vote. Plus, offer your comments below.
Earnings News:
Apple Crushes Forecasts; Shares JumpCaterpillar Trounces Estimates, Boosts OutlookJPMorgan Blows Past ExpectationsGoldman Beats Expectations But Shares SinkComplete Earnings CoverageSlideshow: Biggest Dividend S&P 500 Yields
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482406b983b86ba57d3e31f80a2d5968 | https://www.cnbc.com/2009/10/20/pops-drops-unitedhealth-state-street.html | Following are the day’s biggest winners and losers. Find out why shares of UnitedHealth and BlackRock popped while Lockheed Martin and State Street dropped.
POPS (stocks that jumped higher)UnitedHealth (UNH) popped 4%. The health care name beat on third quarter profits largely due to cost controls and reaffirmed its full year outlook. - In the face of reform that's pretty good, says Karen Finerman.
BlackRock (BLK) popped 2%. Helped by strong flows into bond funds and alternative investments, the money manager powered to a better-than-forecast 46% rise in third-quarter profits. - I like the stock but wouldn't chase it at these levels, says Karen Finerman.
DROPS (stocks that slid lower)
Lockheed Martin (LMT) dropped 6%. The defense contractor forecast 2010 earnings and revenue below Wall Street estimates. - Not good, says Pete Najarian.
VIDEO0:0000:00Stock Pops & Drops
State Street (STT) dropped 8%. California's attorney general sued the firm on Tuesday for committing an "unconscionable fraud" against the state's largest pension funds and is seeking to recover more than $200 million in alleged illegal overcharges and penalties. - I don't see how that can be anything but negative for this stock, muses Tim Seymour.
Boston Scientific (BSX) dropped 16%. The company cut its profit outlook and its chief executive warned of dire consequences from a proposed health reform tax.
Jefferies (JEF) dropped 4%. After the firm reported higher-than-expected quarterly earnings on Tuesday, investors took profits.
Sherwin-Williams (SHW) dropped 6%. Although the firm posted a quarterly profit that beat Wall Street estimates shares fell on the paint maker's disappointing outlook.
Boeing (BA) dropped 3%. Morgan Stanley downgraded the aerospace company to underweight from equalweight citing concerns about the timeline of the 787.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your e-mail to .Trader disclosure: On Oct. 20th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (BAC) Preferred, (BAC) Call Spreads, (BAC); Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (BKS) Puts, Is Short (BKS); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (TGT); Finerman's Firm Owns (UNH) Calls; Finerman's Firm And Finerman Own (WFC) Preferred; Finerrman's Firm And Finerman Own (WMT); Finerman's Firm Is Short (UNG), (IJR), (MDY), (SPY), (IWM), (USO); Finerman Owns (AAPL); Najarian Owns (BX) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (LAZ), Is Short (LAZ) Call, Owns (LAZ) Puts; Najarian Owns (MGM) Calls; Najarian Owns (STX) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), Is Short (YHOO) Calls; Najarian Owns (TEX) Call Spread; Finerman's Firm And Finerman Own (FLS); Finerman's Firm Owns (DRI); Seygem Asset Managemnet Is Short (PBR); Seygem Asset Management Is Short (EWZ); Seymour Owns (CHL), (EWZ), (AAPL), (BAC), (CAT), (MGM)
GE Is The Parent Company Of CNBCFor Chris MutascioStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (BBT) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (BOH) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (CMA) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (COBZ)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (COBZ) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (CVBF)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (CVBF) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (CYN) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or Provided In Past 12 Months Non-Investment Banking, Securities Related Services To (CYN)(CYN) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel, Nicolaus & Co. Or Affiliate Has In Past 12 Months Received CompensationFor Non-Investment Banking, Securities Related Services From (CYN)Stifel, Nicolaus & Co. Is A Market Maker In (FITB)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (FITB) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (GBCI)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (GBCI) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (KEY) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or Provided In Past 12 Months Non-Investmet Banking, Securities Related Services To (PNC)(PNC) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel, Nicolaus & Co. Or Affiliate Has Received Compensation For NonInvestment Banking, Securities Related Services From (PNC) In Past 12 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (RF) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (STI) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (UMPQ)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (UMPQ) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (USB) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (WABC)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WABC) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Has Received Investment BankingCompensation From (WFC) In Past 12 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WFC) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or In Past 12 Months ProvidedInvestment Banking Services To (WFC)(WFC) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel Nicolaus Maintains A Business Relationship With (WFC)Stifel, Nicolaus & Co. Is A Market Maker In (WFSL)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WFSL) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (ZION)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (ZION) In Next 3 Months
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26a738ee10bb00c84d1a8f1dc0d7a3fa | https://www.cnbc.com/2009/10/20/spend-more-time-w-tim-part-2.html | Wish you could spend more time with Tim? You can! All this week the Ambassador is making more of his expert advice on overseas action available for you - only on the web!
#2 Emerging Market Trader Toolbox: ETFs
Not ready to go stock-picking in markets far, far away? Tim Seymour explains how ETFs use diversification to give you lower risk exposure to emerging markets.
VIDEO0:0000:00Emerging Market Trader Toolbox: ETFs
Turn the page to check out other Trading The Globe extras compliments of Tim Seymour !
#1 Emerging Market Trader Toolbox: ADRs
VIDEO0:0000:00Emerging Market Trader Toolbox: ADRs
Tim Seymour breaks down ADRs – or, American Depository Receipts – the best way to get a slice of an emerging market company right here at home.
Below you'll find some of the other Trading The Globe extras that Tim Seymour has planned for you!-----------#3 Emerging Market Trader Toolbox: Currencies
No investing strategy is complete without exposure to the biggest, most liquid market in the world: currencies. Tim Seymour’s got a lesson on how to add them to your emerging market playbook.
* coming on Wednesday-----------
#4 Emerging Market Trader Toolbox: The Emerging Middle ClassIt’s not just about commodities anymore. Tim Seymour reveals the best way to trade the consumer in emerging markets, home to the world’s fastest growing middle class.
* coming on Thursday
______________________________________________________Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! If you'd prefer to make a comment but not have it published on our website send your message to .Trader disclosure: On Oct. 20th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (BAC) Preferred, (BAC) Call Spreads, (BAC); Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (BKS) Puts, Is Short (BKS); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (TGT); Finerman's Firm Owns (UNH) Calls; Finerman's Firm And Finerman Own (WFC) Preferred; Finerrman's Firm And Finerman Own (WMT); Finerman's Firm Is Short (UNG), (IJR), (MDY), (SPY), (IWM), (USO); Finerman Owns (AAPL); Najarian Owns (BX) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (LAZ), Is Short (LAZ) Call, Owns (LAZ) Puts; Najarian Owns (MGM) Calls; Najarian Owns (STX) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), Is Short (YHOO) Calls; Najarian Owns (TEX) Call Spread; Finerman's Firm And Finerman Own (FLS); Finerman's Firm Owns (DRI); Seygem Asset Managemnet Is Short (PBR); Seygem Asset Management Is Short (EWZ); Seymour Owns (CHL), (EWZ), (AAPL), (BAC), (CAT), (MGM)
GE Is The Parent Company Of CNBCFor Chris MutascioStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (BBT) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (BOH) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (CMA) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (COBZ)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (COBZ) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (CVBF)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (CVBF) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (CYN) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or Provided In Past 12 Months Non-Investment Banking, Securities Related Services To (CYN)(CYN) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel, Nicolaus & Co. Or Affiliate Has In Past 12 Months Received CompensationFor Non-Investment Banking, Securities Related Services From (CYN)Stifel, Nicolaus & Co. Is A Market Maker In (FITB)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (FITB) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (GBCI)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (GBCI) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (KEY) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or Provided In Past 12 Months Non-Investmet Banking, Securities Related Services To (PNC)(PNC) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel, Nicolaus & Co. Or Affiliate Has Received Compensation For NonInvestment Banking, Securities Related Services From (PNC) In Past 12 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (RF) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (STI) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (UMPQ)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (UMPQ) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (USB) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (WABC)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WABC) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Has Received Investment BankingCompensation From (WFC) In Past 12 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WFC) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or In Past 12 Months ProvidedInvestment Banking Services To (WFC)(WFC) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel Nicolaus Maintains A Business Relationship With (WFC)Stifel, Nicolaus & Co. Is A Market Maker In (WFSL)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WFSL) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (ZION)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (ZION) In Next 3 Months
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79f872aad27e66cf38550a7974665d4c | https://www.cnbc.com/2009/10/20/still-want-to-take-a-bite.html | Still Want To Take A Bite? | Still Want To Take A Bite?
I know marketcap is a relatively meaningless stat, but Apple's is truly an astounding figure. With today's surge, the company is worth roughly $178 billion. That's more than Google ($175 billion) and General Electric ($165 billion), the parent company of this fine network.
In fact, only Microsoft is worth more in the tech space.
More interesting, Apple's market cap is now greater than Dell's and Hewlett-Packard's combined ($145 billion), even though those two companies comprise 40% of the market share for personal computers, compared to Apple's paltry 4%.
Apple commands 15% of the market for smart phones, and 4% for all cell phones, but its total value is still twice that of Research in Motion's and Nokia's combined ($88 billion).
So basically, in the most simple terms, Apple is worth just slightly less than one RIMM ($38 billion), one Dell ($30 billion) and a Hewlett-Packard ($115 billion).
And yet to some, the company still looks downright cheap.
"If you look at earnings and valuation, you're talking $280," said Piper Jaffray's Gene Munster, who noted that Apple's quarter was slightly constrained by the fact that it couldn't build enough iPhones, a trend that could bode well for the holiday season.
"As good as the quarter was, it's gonna get even better," said Munster.
Stocks Mentioned Here
Questions, comments send them to us at: optionsaction@cnbc.com
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8dca3480f42b99ceb6fa91327869709a | https://www.cnbc.com/2009/10/20/street-fight-book-wars.html | Shares of Barnes & Noble traded lower on Tuesday, after word hit the Street that the company may soon launch an all out assault at rival Amazon .At the heart of their arsenal is a new e-reader, which B&N calls the "Nook" and plans to sell for $259. Unlike the Kindle, B&N says their gadget will comes in colors and have a touchscreen display. Meanwhile, a Reuters reports adds that B&N will be discounting titles heavily in their electronic format and that the Nook will also be able to use books from the Google Books Project.What's the trade?
I’m short Barnes & Noble, reminds Karen Finerman. They’re a brick and mortar and as the publishing business evolves I'm reminded of the evolution in the music business. As it turned out, brick and mortar was not the place to be.
> Click here for more on Finerman's trade
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On Oct. 20th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (BAC) Preferred, (BAC) Call Spreads, (BAC); Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (BKS) Puts, Is Short (BKS); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (TGT); Finerman's Firm Owns (UNH) Calls; Finerman's Firm And Finerman Own (WFC) Preferred; Finerrman's Firm And Finerman Own (WMT); Finerman's Firm Is Short (UNG), (IJR), (MDY), (SPY), (IWM), (USO); Finerman Owns (AAPL); Najarian Owns (BX) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (LAZ), Is Short (LAZ) Call, Owns (LAZ) Puts; Najarian Owns (MGM) Calls; Najarian Owns (STX) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), Is Short (YHOO) Calls; Najarian Owns (TEX) Call Spread; Finerman's Firm And Finerman Own (FLS); Finerman's Firm Owns (DRI); Seygem Asset Managemnet Is Short (PBR); Seygem Asset Management Is Short (EWZ); Seymour Owns (CHL), (EWZ), (AAPL), (BAC), (CAT), (MGM)
GE Is The Parent Company Of CNBCFor Chris MutascioStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (BBT) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (BOH) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (CMA) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (COBZ)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (COBZ) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (CVBF)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (CVBF) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (CYN) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or Provided In Past 12 Months Non-Investment Banking, Securities Related Services To (CYN)(CYN) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel, Nicolaus & Co. Or Affiliate Has In Past 12 Months Received CompensationFor Non-Investment Banking, Securities Related Services From (CYN)Stifel, Nicolaus & Co. Is A Market Maker In (FITB)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (FITB) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (GBCI)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (GBCI) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (KEY) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or Provided In Past 12 Months Non-Investmet Banking, Securities Related Services To (PNC)(PNC) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel, Nicolaus & Co. Or Affiliate Has Received Compensation For NonInvestment Banking, Securities Related Services From (PNC) In Past 12 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (RF) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (STI) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (UMPQ)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (UMPQ) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (USB) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (WABC)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WABC) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Has Received Investment BankingCompensation From (WFC) In Past 12 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WFC) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or In Past 12 Months ProvidedInvestment Banking Services To (WFC)(WFC) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel Nicolaus Maintains A Business Relationship With (WFC)Stifel, Nicolaus & Co. Is A Market Maker In (WFSL)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WFSL) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (ZION)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (ZION) In Next 3 Months
CNBC.com with wires
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1f97dd0c5af864ed493287f3ee67b379 | https://www.cnbc.com/2009/10/20/take-your-position-wells-fargo-morgan-stanley.html | Investors are keeping a close eye on the financials with both Morgan Stanley and Wells Fargo scheduled to reports earnings on Wednesday.
Analysts believe Morgan Stanley likely broke a string of three straight losses in the third quarter, while Wells is expected to follow its big bank peers in reporting more loan losses, but how much more is the big question.
What should you know?
Wells FargoWells is considered one of the stronger, more conservatively managed large banks. But investors are still worried about credit quality in the loan portfolio it acquired as part of its purchase of Wachovia last fall.
JPMorgan, Citigroup and BofA rattled investors last week when their results showed that loan losses remain high, which means consumers and businesses are still having trouble paying off their debts.
The losses at JPMorgan and Citigroup, however, were offset by robust trading activity. Though Wells Fargo has a smaller trading operation than some of its big-bank counterparts, the bank has had much success in growing its mortgage banking business.
Income generated from mortgage banking more than doubled in the second quarter from the prior-year period.
VIDEO0:0000:00Take Your Position: Bank Earnings
What’s the trade?Our price target on Wells Fargo is $33, says Stifel Nicolaus analyst Chris Mutascio. I’m holding Wells Fargo preferred, reveals Karen Finerman.UBS came out with a sell and a $20 price target, reminds Guy Adami. I wouldn’t short this stock but I’m curious to see how it trades.
---------------
Morgan StanleyAhead of earnings Morgan Stanley inked a deal with Invesco to sell its retail asset management business, including Van Kampen Investments, for $1.5 billion. The deal allows Morgan to begin aggressively restructuring an area of its business that had been losing money.Meanwhile, analysts remain concerned about the bank's continued losses on real estate principal investments and the accounting ramifications of improvements in its debt prices.
In recent years banks recorded big gains on the declining market value of debt they issued, because they could buy back the debt cheaply. But as banks' prospects have improved in the last few quarters, the value of their debt has jumped, forcing them to reverse earlier gains, weighing on earnings.
Morgan Stanley "will take some pain in terms of writing up their own debt yet again," said Steve Stelmach, an analyst with FBR Capital Markets
What’s the trade?Clearly the stock has had a nice run, says Guy Adami.. I’d take a wait and see approach to this stock.
I like Morgan but the stock hit a 52-week high, adds Pete Najarian. It makes me wonder just how strong business has to be to take shares even higher.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .CNBC.com with wires
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aa2f3e2485440c81a555feba2eb8f4e3 | https://www.cnbc.com/2009/10/20/trading-the-globe-brazil.html | Brazil's stock market suffered its worst one-day plunge in three months after the government imposed a tax on foreign investments in local stocks and bonds.
Finance Minister Guido Mantega said on Monday the government would charge a 2 percent financial transactions tax on foreign investments in Brazilian stocks and fixed-income securities in a bid to prevent the country's currency from strengthening further. The tax took effect on Tuesday.
On the news, Petrobras and Vale , the two most-widely traded stocks in Brazil, slumped as investors dumped liquid shares. Meanwhile, Brazil's currency, the real (BRBY), tumbled 2.3 percent to 1.752 per dollar as traders fretted about the effects of the tax on short-term dollar inflows.What must you know?
These events remind us that the rules of the game sometimes change in emerging markets, explains Tim Seymour. I still think Brazil is a great long-term story but it reminds why this is an emerging market. For long-term investors Brazil is still attractive. Personally, I think events have presented a buying opportunity in stocks such as Vale and Petrobras. However I wouldn’t necessarily jump in immediately.
______________________________________________________Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment but not have it published on our website send those e-mails to .Trader disclosure: On Oct. 20th, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Finerman's Firm Owns (BAC) Preferred, (BAC) Call Spreads, (BAC); Finerman Owns (BAC) Preferred, (BAC); Finerman's Firm Owns (BKS) Puts, Is Short (BKS); Finerman's Firm Owns (MSFT); Finerman's Firm Owns (TGT); Finerman's Firm Owns (UNH) Calls; Finerman's Firm And Finerman Own (WFC) Preferred; Finerrman's Firm And Finerman Own (WMT); Finerman's Firm Is Short (UNG), (IJR), (MDY), (SPY), (IWM), (USO); Finerman Owns (AAPL); Najarian Owns (BX) Call Spread; Najarian Owns (GE) Calls; Najarian Owns (LAZ), Is Short (LAZ) Call, Owns (LAZ) Puts; Najarian Owns (MGM) Calls; Najarian Owns (STX) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), Is Short (YHOO) Calls; Najarian Owns (TEX) Call Spread; Finerman's Firm And Finerman Own (FLS); Finerman's Firm Owns (DRI); Seygem Asset Managemnet Is Short (PBR); Seygem Asset Management Is Short (EWZ); Seymour Owns (CHL), (EWZ), (AAPL), (BAC), (CAT), (MGM)
GE Is The Parent Company Of CNBCFor Chris MutascioStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (BBT) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (BOH) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (CMA) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (COBZ)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (COBZ) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (CVBF)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (CVBF) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (CYN) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or Provided In Past 12 Months Non-Investment Banking, Securities Related Services To (CYN)(CYN) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel, Nicolaus & Co. Or Affiliate Has In Past 12 Months Received CompensationFor Non-Investment Banking, Securities Related Services From (CYN)Stifel, Nicolaus & Co. Is A Market Maker In (FITB)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (FITB) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (GBCI)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (GBCI) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (KEY) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or Provided In Past 12 Months Non-Investmet Banking, Securities Related Services To (PNC)(PNC) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel, Nicolaus & Co. Or Affiliate Has Received Compensation For NonInvestment Banking, Securities Related Services From (PNC) In Past 12 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (RF) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (STI) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (UMPQ)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (UMPQ) In Next 3 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (USB) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (WABC)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WABC) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Has Received Investment BankingCompensation From (WFC) In Past 12 MonthsStifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WFC) In Next 3 MonthsStifel, Nicolaus & Co. Or Affiliate Provides Or In Past 12 Months ProvidedInvestment Banking Services To (WFC)(WFC) Is Or In Past 12 Months Was A Client Of Stifel, Nicolaus & Co. Or AffiliateStifel Nicolaus Maintains A Business Relationship With (WFC)Stifel, Nicolaus & Co. Is A Market Maker In (WFSL)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment BankingCompensation From (WFSL) In Next 3 MonthsStifel, Nicolaus & Co. Is A Market Maker In (ZION)Stifel, Nicolaus & Co. Expects To Receive/Seek Investment Banking Compensation From (ZION) In Next 3 MonthsCNBC.com with wires
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75b10e7364350f4012783c5a43377c9a | https://www.cnbc.com/2009/10/20/tv-obituaries-theyre-trying-it-in-michigan.html | There Must Be A Pony In Here Somewhere | There Must Be A Pony In Here Somewhere
Times are tough in Michigan and businesses there are leaving no stone unturned.
In Memory Of
When three of four daily newspapers in the Saginaw area started publishing just three days a week, people complained. What about the obits?
One CBS affiliate stepped in to fill the void: They’re running obituaries on TV, Advertising Age reports.
For $100, the station, WNEM, will run the name and photo of the deceased on air, and publish a full-length obit on ObitMichigan.com, a joint venture between local funeral services and WNEM.
It’s too soon to tell how significant a revenue stream it will be but since the station started the program in September, it’s received 700 obituaries.
It could be “one of our top billers within two years,” Jeff Guilbert, general sales manager of at WNEM, told Ad Age.
The station’s owner, Meredith Corp., is planning to roll out the obit program to other stations and is even in talks with other station groups.
And, for anyone wondering — why not just do it online? Remember: Older people tend to be the ones who most frequently check obits and not all of them have computers.
Questions? Comments? Write to ponyblog@cnbc.com.
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f7d97eb2ca864f7d77f521f1d4a91c5f | https://www.cnbc.com/2009/10/20/us-scientist-accused-of-trying-to-sell-secrets.html | US Scientist Accused of Trying to Sell Secrets | US Scientist Accused of Trying to Sell Secrets
Prosecutors say a scientist who worked on the cutting edge of moon exploration has been caught trying to sell classified secrets to an FBI agent posing as an Israeli intelligence agent.
Stewart David Nozette, who is credited with helping discover evidence of water on the moon and has been a leader in recent lunar exploration work, was arrested Monday and charged in a criminal complaint with attempting to communicate, deliver and transmit classified information, the Justice Department said.
Nozette, 52, of Chevy Chase, Md., was expected to make his initial appearance in federal court in Washington on Tuesday. Law enforcement officials said Nozette did not immediately have a lawyer.
Nozette worked in various jobs for the Energy Department and NASA. In 1989 and 1990, he worked for the White House's National Space Council.
Space Shuttle EndeavourAP
He developed the Clementine bi-static radar experiment that is credited with discovering water on the south pole of the moon. He also worked at the Energy Department's Lawrence Livermore National Laboratory, where he designed highly advanced technology, from approximately 1990 to 1999.
At Energy, Nozette held a special security clearance equivalent to the Defense Department's top secret and "critical nuclear weapon design information" clearances. DOE clearances apply to access to information specifically relating to atomic or nuclear-related materials.
Nozette also held top offices at the Alliance for Competitive Technology, a nonprofit corporation that he organized. Between January 2000 and February 2006, Nozette, through his company, had several agreements to develop advanced technology for the U.S. government.
To build a case against Nozette, FBI agents posed as officers of the Israeli intelligence service Mossad, and the criminal complaint suggests why they thought their suspect would take the bait.
From 1998 to 2008, the complaint alleges, Nozette was a technical adviser for a consultant company that was wholly owned by the Israeli government. Nozette was paid about $225,000 over that period, the court papers say.
Then, in January of this year, Nozette allegedly traveled to another foreign country with two computer thumb drives and apparently did not return with them. Prosecutors also quote an unnamed colleague of Nozette who said the scientist said that if the U.S. government ever tried to put him in jail for an unrelated criminal offense, he would go to Israel or another foreign country and "tell them everything" he knows.
The complaint does not allege that the government of Israel or anyone acting on its behalf violated U.S. law. In Jerusalem, Israeli government officials had no immediate comment.
The affidavit by FBI agent Leslie Martell said that on Sept. 3, Nozette received a telephone call from an individual purporting to be an Israeli intelligence officer, but who was actually an undercover FBI agent.
Nozette agreed to meet with the agent later that day at a hotel in Washington and in the subsequent meeting the two discussed Nozette's willingness to work for Israeli intelligence, the affidavit said.
Nozette allegedly informed the agent that he had, in the past, held top security clearances and had access to U.S. satellite information, the affidavit said.
The scientist also allegedly said he would be willing to answer questions about this information in exchange for money. The agent explained that the Israeli intelligence agency, Mossad, would arrange for a communication system so Nozette could pass on information in a post office box.
Nozette agreed to provide regular, continuing information and asked for an Israeli passport, the affidavit alleged.
According to the court papers, Nozette and the undercover agent met soon afterward in the same hotel, where the scientist allegedly said that while he no longer had legal access to any classified information at a U.S. government facility, he could, nonetheless, recall classified information by memory.
Nozette allegedly told the agent, "Well, I should tell you my first need is that they should figure out how to pay me ... they don't expect me to do this for free."
About a week later, FBI agents left a letter in the designated post office box, asking Nozette to answer a list of questions about U.S. satellite information. The agents provided a $2,000 cash payment.
Nozette was later captured on videotape leaving a manila envelope in the post office box. The next day, agents retrieved the sealed envelope and found, among other things, a one-page document containing answers to the questions and an encrypted computer thumb drive.
One answer contained information classified as secret, which concerned capabilities of a prototype overhead surveillance system. Nozette allegedly offered to reveal additional classified information that directly concerned nuclear weaponry, military spacecraft or satellites, and other major weapons systems.
Agents then asked for more information, and again he allegedly provided it, in exchange for a cash payment of $9,000.
Over the course of his career, Nozette performed some of his research at the U.S. Naval Research Laboratory in Washington, the Defense Advanced Research Projects Agency in Arlington, Va., and the National Aeronautics and Space Administration Goddard Space Flight Center in Greenbelt, Md.
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2989e9ced1eec7ca529377ddbd55eb21 | https://www.cnbc.com/2009/10/20/wall-st-giants-reluctant-to-donate-to-democrats.html | Wall St. Giants Reluctant to Donate to Democrats | Wall St. Giants Reluctant to Donate to Democrats
The Wall Street giants that received a financial lifeline from Washington may have no compunction about paying big bonuses to their dealmakers and traders. But their willingness to deliver “thank you” gifts to President Obama and the Democrats is another question altogether.
Mr. Obama will fly to New York on Tuesday for a lavish Democratic Party fund-raising dinner at the Mandarin Oriental Hotel for about 200 big donors. Each donor is paying the legal maximum of $30,400 and is allowed to take a date. Four of the seven “co-chairs” listed on the invitation work in finance, and Democratic Party organizers say they expect that about a third of the attendees will come from the industry.
But from the financial giants like Goldman Sachs , JPMorgan Chase and Citigroup that received federal bailout money — and whose bankers raised millions of dollars for Mr. Obama’s election — only a half-dozen or fewer are expected to attend (estimated total contribution: $91,200).
President Barack ObamaPhoto by: Pete Souza
Part of the reason, several Democratic fund-raisers and executives said, is a fear of getting caught in the public rage over the perception that Wall Street titans profiting from their government bailout may use their winnings to give back to Washington in return. And the timing of the event, as the industry lobbies against proposals for tighter regulations to address the underlying causes of last year’s meltdown on Wall Street, has only added to the worry over public appearances.
“There are sensitivities there,” said Scott Talbot, a lobbyist for the industry’s Financial Services Roundtable. Political contributions “can make a donor a target,” Mr. Talbot said. Many involved, though, say the low attendance from those Wall Street giants also reflected a broader disenchantment with Mr. Obama over the angry language emanating from the White House over the million-dollar bonuses and anti-regulatory lobbying.
“There is some failure in the finance industry to appreciate the level of public antagonism toward whatever Wall Street symbolizes,” said Orin Kramer, a partner in an investment firm who is a Democratic fund-raiser and one of the event’s chairmen. “But in order to save the capitalist system, the administration has to be responsive to the public mood, and that is a nuance which can get lost on Wall Street.”
Dr. Daniel E. Fass, another chairman of the event who lives surrounded by financiers in Greenwich, Conn., said: “The investment community feels very put-upon. They feel there is no reason why they shouldn’t earn $1 million to $200 million a year, and they don’t want to be held responsible for the global financial meltdown.” Dr. Fass added, “How much that will be reflected in their support for the president remains to be seen.”
Mr. Obama remains a potent fund-raising draw. Plunging into the 2010 midterm campaigns last week, he raised more than $3 million in one night in San Francisco, speaking at a similar $30,400-a-couple dinner and a larger rally with tickets at $1,000 and under.
In addition to the big-ticket dinner on Tuesday, Mr. Obama will also address a more small-d democratic event at New York’s Hammerstein Ballroom, where roughly 2,500 donors paying $1,000 or less will also make cellphone calls to promote his health care overhaul. Over the next five days he will appear at fund-raisers for Bill Owens, a candidate for a House seat in New York; Gov. Jon Corzine of New Jersey (himself a former Goldman Sachs banker); Gov. Deval Patrick of Massachusetts; and Senator Christopher J. Dodd of Connecticut.
Democratic fund-raisers say the economic slump has dampened fund-raising across every industry. Wall Street has lost Bear Stearns, Merrill Lynch and Lehman Brothers to consolidation in last year’s credit crunch. Some former Obama fund-raisers on Wall Street have ascended to jobs in the administration, like Michael Froman, a former top Citigroup executive who is now an adviser on economics and national security.
Current Democratic fund-raisers say their 2008 take from Wall Street may also have benefited from the personal connections of the party’s chief fund-raiser that year, Philip D. Murphy, a former top executive at Goldman Sachs. (He is now ambassador to Germany). And as in recent years, Democrats are raising far more from Wall Street executives than Republicans, according to campaign finance data sorted by the Center for Responsive Politics.
The Democrats, including House and Senate party committees and the party itself, raised about $5.4 million in the first eight months of the year, while the Republicans took in just $2.7 million.
So far in the current election cycle, though, Wall Street accounts for less than half as much of the Democratic Party’s fund-raising as it did in 2008: 3 percent, or about $1.5 million out of a total $53.6 million in the eight-month period, compared with about 6 percent, or $15.3 million out of $260.1 million during the last election. (Republicans relied more heavily on their party to support their presidential candidate in 2008, and the party’s Wall Street fund-raising has fallen even further.)
Fund-raisers say smaller but lucrative businesses like hedge funds and private equity firms now account for more of Wall Street’s political contributions than the big banks that received bailout money, with the possible exception of the famously generous executives of Goldman Sachs.
Employees associated with the financial firms that received bailout money from the federal government contributed almost $70,000 to the Democratic Party in the first half of this year. Most of that, $60,800, came from one couple who each contributed the legal limit. At the time of the donation, the husband, John M. Noel, had recently retired as head of a unit of the insurance giant AIG called AIG Travel Guard.
Mr. Obama, though, still has the loyalty of other powerful friends on Wall Street. Among the other chairmen of the Tuesday dinner in New York is Robert Wolf, head of the American investment banking division of the Swiss giant UBS Group. Mr. Wolf raised more than $500,000 for Mr. Obama’s campaign and sits on a White House panel of outside economic advisers.
Mr. Wolf does not have to worry about the same appearance problems as Wall Street rivals, however. His firm was bailed out by the government of Switzerland, not the United States.
Griff Palmer contributed research from New York.
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54184d15b168c218f7370a81c6236b75 | https://www.cnbc.com/2009/10/20/what-now-for-dow-look-to-china-for-clues.html | Charting Asia | Charting Asia
Who follows and who leads in markets? The answer is surprisingly different to the answer most people assume is correct.
Intermarket technical analysis is a useful strategy tool for asset allocation. Its also a useful tool for working out what may happen in the future. Its too easy to look at markets in isolation, or to use outdated assumptions about market relationships. This is lazy thinking and in a changing market environment it can cost a fortune.
We publish hundreds of charts each year in our financial newsletter publications and in columns for international and Chinese financial media. The chart below is the probably the single most important chart you will see in 2009. You will need to put aside lazy thinking and assumptions to fully understand it.
Dow 10K: Celebrating 10 Years of 0% Returns
This is not a technical chart. It’s a simple combination of 3 indexes, each displayed as a single line. Unlike many comparative charts the indexes have not been rescaled to a single starting point so we can see relative performance in percentage terms. This is not the significant feature of this information.
The charts have been time adjusted so it is easier to compare the behavioural characteristics of the three markets.
We use the Dow Index and the Australian ASX S&P 200 index (XJO) as representative of markets outside the US. The DOW and XJO charts have been time shifted to the left so the absolute market lows of March 2009, match the time of the absolute market low in the Shanghai Index in October 2008. This type of time shifted display clearly shows which market is a leader and which markets are followers.
This chart display confirms that 2009 has seen the most profound change in market dynamics in more than half a century. Put simply, China leads and the DOW follows.
The blue line shows the performance of the DOW index.
The black line shows the performance of the Australian ASX S&P 200 index.
The red line show the performance of the Shanghai Index.
The DOW is now at 10,000 but how important is this in terms of global market behaviour?
The DOW is following the behavioural leadership of the China market.
The 10,000 equivalent for the Shanghai Index is 3,000. The Shanghai market reached this level and briefly powered above it before developing a trend correction.
The Shanghai Index remains in trend correction mode and is using price and time corrections. The price trend correction is the sudden index fall of between 15% to 20% from 3480 to 2750. The time correction for the trend is the extended sideways movement over the past 10 weeks.
The important relationship is not the comparative percentage returns, but the comparative behaviour. We need to watch carefully because there is a high probability our markets and the US market will follow this China market leadership behaviour with a lag of several months.
This suggests a trend price correction in the order of 10% to 15% followed by a period of sideways trading as the market applies a further trend correction using time.
Analysing and understanding China market behaviour is absolutely critical to any market strategy. China leads, the DOW follows the behaviour and other markets tag along further behind. Watching China gives investors a glimpse of the potential future. It is absolutely essential to developing any long term portfolio investment or planning.
If you would like Daryl to chart a specific stock, commodity or currency, please write to us at ChartingAsia@cnbc.com. We welcome all questions, comments and requests.
CNBC assumes no responsibility for any losses, damages or liability whatsoever suffered or incurred by any person, resulting from or attributable to the use of the information published on this site. User is using this information at his/her sole risk.
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d188c71c30ca3ea3b0a8e7df1fd52dbe | https://www.cnbc.com/2009/10/20/whatever-happened-to-the-sarah-palin-xbox.html | Whatever Happened to The Sarah Palin XBox? | Whatever Happened to The Sarah Palin XBox?
Xbox autographed by Sarah PalinSource: ebay.com
It finally listed. It didn't sell.
In a shocking development, no bids came through for the $1.1 million Microsoft Xbox autographed by Sarah Palin.
As readers may recall, Canadian David Morrill has been trying for months to sell the Xbox signed by the "rogue" Alaskan days before she announced her surprise resignation as Governor.
After repeated de-listings by Ebay, Morrill succeeded in putting up the Xbox for an auctionwhich ended last week.
It didn't sell. But this story isn't over. "The item does provoke a very intense response from the public," Morrill tells me. "The reaction on blogs and message boards has been very heated and I have an inbox filled with hate mail, or people telling me how much they laughed."
Morrill says when he first listed the Xbox in August, "I wasn't intending to get much attention at all, and I was just hoping to have a valuable souvenir if Palin ever ran in 2012. Since you work for CNBC, you are very familiar with the idea of a hedge." Not sure how you list an Xbox for $1.1 million and not expect attention!
Slideshow: Top 10 Video Games for 2010
But is Morrill a Palin supporter? Hardly. "I love Obama, and he needs to be president for two terms," he says. "If he fails to stay president, he most likely will fail to Palin--what a horrible future!--and the value of my item will go up. This way if Obama wins, we all win, if Palin wins, I still win. I intend to keep listing it up to, and beyond, 2012, or until eBay finds another reason to take it down."
Morrill says that despite the hate mail, it's been an amazing experience. "I live on a farm in northern Alberta, I don't get thrills like this very often." But he says the experience taught him a lot about Ebay . "Every time (the Xbox) grabbed large scale attention, Ebay would come up with another reason to take it down--Conan O'Brien even made a joke about it!" he says. "The worst was telling me that PayPal couldn't process that large of a transaction. As anyone with a computer can tell you, PayPal handles transactions through eBay much larger than my own. They even threatened to take it down a fourth time if I didn't erase the record of what they had required me to do in order to list it."
Call him a rogue seller.
Questions? Comments? Funny Stories? Email
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91973698601c8e0ddab8e929949bcb6f | https://www.cnbc.com/2009/10/20/wyeth-acquisition-will-boost-pfizer-in-long-term-ceo.html | Wyeth Acquisition Will Boost Pfizer in Long Term: CEO | Wyeth Acquisition Will Boost Pfizer in Long Term: CEO
Pfizer's acquisition of Wyeth will add to the pharmaceutical giant's diversity, which over time will help boost the company's stock, CEO Jeff Kindler told CNBC Tuesday.
VIDEO0:0000:00Pfizer CEO on Company's Pipeline
"Ultimately, the way we increase the stock is by improving shareholder value in the long run," Kindler said. "Our prospects are very strong."
Pfizer plans to cut about $4 billion in annual expenses after the acquisition is complete, and it will eliminate 15 percent of the companies' combined employees, he said.
Kindler added that management will discuss the future of the company's dividend in December, after cutting it in half to 64 cents earlier this year.
"We'll consider the importance of the dividend to our shareholders, which we understand very much," he said, "as well as all considerations about the best use of our capital for our shareholders."
On Tuesday, Pfizer reported third-quarter earnings that beat Wall Street's profit expectations as cost-cutting outweighed a decline in sales.
Also on CNBC.com:
Pfizer Profit Beats Expectations on Cost CuttingPharma's Market with Mike Huckman
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16fae5227bd9290f57a8c40685c9b466 | https://www.cnbc.com/2009/10/21/after-hours-action-ebay.html | In after hours trade, shares of Ebay slipped as much as 7% even though the company slightly beat its forecast. Why did investors turn on this stock?Profit came in at the low end of analysts' estimates, which disappointed investors, and guidance was weak. Investors were hoping to see better traffic and positive sales.
The results dashed investor hopes of a substantial turnaround at its main marketplaces division during the crucial holiday season.
"The size of the negative reaction is a bit surprising, says Bernstein analyst Jeff Lindsay. (Investors don’t like the) guidance which is a little bit less than consensus. (But) EBay has a long history of providing very conservative guidance and then beating it, but people were hoping for evidence of much more recovery.
What’s the trade?
VIDEO0:0000:00After Hours Action: eBay
If you’re long Ebay I’d pull rip cord, counsels Guy Adami. I think you can buy it cheaper, around $20.75.Part of the stock’s sell off has to do with Ebay’s run-up ahead of earnings, adds Jim Goldman. It just wasn’t justified.
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Trader disclosure: On October 21st, 2009, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Seymour Owns (DIG), (MSFT), (AAPL), (BAC), (EWZ), (INTC); Najarian Owns (DE) Call Spread; Najarian Owns (STX) Call Spread; Najarian Owns (XLF) Call Spread; Najarian Owns (YHOO), (YHOO) Puts; Terranova Owns December Crude Oil FuturesFor Joe TerranovaTerranova Works For (VRTS)Terranova Is Chief Market Strategist Of Virtus Investment Partners, Ltd.Virtus Investment Partners Owns More Than 1% Of (XLY)Virtus Investment Partners Owns More Than 1% Of (CAL)Virtus Investment Partners Owns More Than 1% Of (CLB)Virtus Investment Partners Owns More Than 1% Of (DLR)Virtus Investment Partners Owns More Than 1% Of (EXR)Virtus Investment Partners Owns More Than 1% Of (XLI)Virtus Investment Partners Owns More Than 1% Of (IGE)Virtus Investment Partners Owns More Than 1% Of (XLB)Virtus Investment Partners Owns More Than 1% Of (DBA)Virtus Investment Partners Owns More Than 1% Of (DBV)Virtus Investment Partners Owns More Than 1% Of (UA)For Peter SchiffSchiff Owns Yen & Foreign CurrenciesSchiff Owns GoldFor Moshe Orenbuch(AXP), (COF), (DFS), (MA), (JPM), (C), (BAC) Is Or In Past 12 Months Was A Client Of Credit SuisseCredit Suisse Provided Investment Banking Services To (AXP), (COF), (DFS), (MA), (JPM), (C), (BAC) In Past 12 MonthsCredit Suisse Provided Non-Investment Banking Services To (AXP), (COF), (DFS), (JPM), (C), (BAC) In Past 12 MonthsCredit Suisse Has Managed Or Co-Managed A Public Offering Of Securities For (AXP), (COF), (DFS), (JPM), (C), (BAC) In Past 12 MonthsCredit Suisse Expects To Receive/Seek Investment Banking Compensation From (AXP), (COF), (DFS), (V), (MA), (JPM), (C), (BAC) In Next 3 MonthsCredit Suisse Has Received Non-Investment Banking Compensation From (AXP), (COF), (DFS), (JPM), (C), (BAC) In Past 12 MonthsCredit Suisse Is A Market Maker In (MA)Credit Suisse Owned 1% Or More Of (V) As Of End Of Last Month
For Jim CramerCramer's Charitable Trust Owns (V)Cramer's Charitable Trust Owns (WFC)Cramer's Charitable Trust Owns (PPG)Cramer's Charitable Trust Owns (CVX)CNBC.com with wires
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1635fe0e478fa7e69d9cba4be588e21e | https://www.cnbc.com/2009/10/21/altria-reports-2009-thirdquarter-results-altrias-2009-reported-diluted-earnings-per-share-unchanged-at-042-in-the-third-quarter-and-up-35-to-119-for-the-first-nine-months-versus-the-prioryear-periods.html | Altria Reports 2009 Third-Quarter Results Altria's 2009 reported diluted earnings per share unchanged at $0.42 in the third quarter and up 3.5% to $1.19 for the first nine months, versus the prior-year periods | Altria Reports 2009 Third-Quarter Results Altria's 2009 reported diluted earnings per share unchanged at $0.42 in the third quarter and up 3.5% to $1.19 for the first nine months, versus the prior-year periods
RICHMOND, Va., Oct 21, 2009 (BUSINESS WIRE) -- --Altria's 2009 adjusted diluted earnings per share up 4.3% to $0.48 in the third quarter and up 7.0% to $1.37 for the first nine months, versus the prior-year periods --Marlboro delivers year-over-year and sequential retail share growth in the third quarter of 2009 --Smokeless products' premium retail share stabilizes in the third quarter of 2009 versus the second quarter of 2009 --Altria narrows full-year 2009 guidance for reported diluted earnings per share from continuing operations to a range of $1.53 to $1.56 versus prior forecast of $1.51 to $1.56 --Altria narrows full-year 2009 guidance for adjusted diluted earnings per share from continuing operations to a range of $1.74 to $1.77 versus prior forecast of $1.72 to $1.77 Altria Group, Inc. (Altria) (NYSE: MO) today announced 2009 third-quarter reported diluted earnings per share (EPS) of $0.42, which was unchanged versus the third quarter of 2008. Reported results reflect higher operating companies income (OCI) from financial services and cigars, as well as the OCI contribution from the UST LLC (UST) acquisition, lower income taxes, higher earnings from Altria's equity investment in SABMiller plc (SABMiller), and lower general corporate expenses, offset by higher interest expense, higher corporate exit costs, and lower OCI from cigarettes versus the prior-year period. Altria's adjusted 2009 third-quarter diluted EPS increased 4.3% to $0.48 versus $0.46 in the third quarter of 2008 as shown in Table 1 below.
For the first nine months of 2009, Altria's reported diluted EPS from continuing operations increased 3.5% to $1.19 versus $1.15 in the prior-year period.
Altria's adjusted diluted EPS from continuing operations for the first nine months of 2009 increased 7.0% to $1.37 versus $1.28 in the prior-year period as shown in Table 1 below.
"Altria reported solid adjusted earnings per share growth in the third quarter," said Michael E. Szymanczyk, Chairman and Chief Executive Officer of Altria. "The premium brands of Altria's tobacco operating companies, Marlboro, Copenhagen, Skoal and Black & Mild, continue to display great strength in a challenging operating environment. Altria remains focused on returning cash to shareholders in the form of dividends, as evidenced by our recent 6.3% dividend increase, reflecting the underlying financial strength of our businesses." Table 1 - Altria's Adjusted Results Excluding Special Items Third Quarter Nine Months Ended September 30 2009 2008 Change 2009 2008 Change Reported diluted EPS from $ 0.42 $ 0.42 - % $ 1.19 $ 1.15 3.5 % continuing operations Exit, integration and 0.06 0.01 0.14 0.10 implementation costs Gain on sale of corporate - - - (0.12 ) headquarters building Loss on early extinguishment - - - 0.12 of debt UST acquisition-related costs* - - 0.06 - SABMiller special items 0.01 0.03 (0.01 ) 0.03 Tax items (0.01 ) - (0.01 ) - Adjusted diluted EPS from $ 0.48 $ 0.46 4.3 % $ 1.37 $ 1.28 7.0 % continuing operations * Excludes exit and integration costs Dividend Increase On August 27, 2009, Altria announced that its Board of Directors had voted to increase the company's regular quarterly dividend by 6.3% to $0.34 per common share versus the previous rate of $0.32 per common share. The new annualized dividend rate is $1.36 per common share. Future dividend payments remain subject to the discretion of Altria's Board of Directors.
Cost Management Altria and its companies achieved $76 million in cost savings in the third quarter of 2009 and $241 million in savings through the first nine months of 2009. Altria expects to achieve approximately $619 million in additional cost savings by 2011 for total anticipated cost reductions of $1.5 billion versus 2006, as shown in Table 2 below.
As part of its corporate expense and selling, general & administrative (SG&A) cost reduction initiatives, Altria incurred pre-tax charges of $54 million in the third quarter of 2009, consisting primarily of employee separation costs.
On July 29, 2009, Philip Morris USA (PM USA) ceased production of cigarettes in its Cabarrus County, North Carolina plant. The Cabarrus facility closure is part of PM USA's Manufacturing Optimization Program, which is expected to deliver ongoing cost savings of $188 million by 2011. Altria incurred pre-tax charges of $96 million in the third quarter and $180 million in the first nine months of 2009 for exit and implementation costs related primarily to this initiative.
Altria expects to incur pre-tax charges of approximately $90 million in the fourth quarter of 2009 and $40 million in 2010 related to this initiative.
Table 2 - Altria and its Operating Companies Cost Reduction Initiatives ($ in Millions) Cost Savings Achieved Additional Total Cost Cost Savings Savings Expected by Expected 2007 Q3 2009 2011 through Q2 2009 Corporate expense and $ 805 $ 76 $ 431 $ 1,312 SG&A Manufacturing optimization - - 188 188 program Totals $ 805 $ 76 $ 619 $ 1,500 Note: Altria expects to generate an estimated $300 million in UST integration cost savings by 2011. UST integration costs savings are included in the Corporate Expense and SG&A line item beginning in 2009.
UST Integration Update The UST integration is substantially complete and within budget. Altria incurred pre-tax charges of $363 million in acquisition-related charges as well as restructuring and integration costs in the first nine months of 2009, which include pre-tax charges of $37 million in the third quarter. Altria expects to incur additional integration and restructuring charges of approximately $76 million in the fourth quarter of 2009 and $40 million in 2010. Altria now expects the UST acquisition to be accretive to its adjusted diluted earnings per share in 2010.
2009 Full-Year Earnings Per Share Guidance Altria narrows its 2009 full-year guidance for reported diluted earnings per share from continuing operations to a range of $1.53 to $1.56. Altria previously forecasted that its 2009 full-year guidance for reported diluted earnings per share from continuing operations would be in the range of $1.51 to $1.56. This revised forecast includes estimated net charges of $0.21 per share related to exit, integration and implementation costs, UST acquisition-related costs, SABMiller special items, and tax items.
Altria narrows its 2009 full-year guidance for adjusted diluted earnings per share from continuing operations to a range of $1.74 to $1.77, representing a growth rate of 5% to 7% from an adjusted base of $1.65 per share in 2008. Altria previously forecasted that its 2009 full-year guidance for adjusted diluted earnings per share from continuing operations would be in the range of $1.72 to $1.77, representing a growth rate of 4% to 7%.
The factors described in the Forward-Looking and Cautionary Statements section of this release represent continuing risks to these projections. A reconciliation of Altria's full-year forecasted reported and adjusted diluted earnings per share from continuing operations is shown in Table 3 below.
Table 3 - Altria's Full-Year Earnings Per Share Forecast Excluding Special Items Full Year 2009 2008 Change Reported diluted EPS from continuing operations $1.53 to $1.56 $ 1.48 3% to 5% Exit, integration and implementation costs 0.17 0.15 Gain on sale of corporate headquarters building - (0.12 ) Loss on early extinguishment of debt - 0.12 Tax items (0.01 ) (0.03 ) UST acquisition-related costs* 0.06 0.02 SABMiller special items (0.01 ) 0.03 Adjusted diluted EPS from continuing operations $1.74 to $1.77 $ 1.65 5% to 7% * Excludes exit and integration costs Conference Call A conference call with the investment community and news media will be webcast on October 21, 2009 at 9:00 a.m. Eastern Time. Access to the webcast is available at www.altria.com.
ALTRIA GROUP, INC.
Altria's management reviews OCI, which is defined as operating income before corporate expenses and amortization of intangibles, to evaluate segment performance and allocate resources. Altria's management also reviews OCI, operating margins and EPS on an adjusted basis, which excludes certain income and expense items that management believes are not part of underlying operations because such items can obscure underlying business trends. Management believes it is appropriate to disclose these measures to help investors analyze underlying business performance and trends. Such adjusted measures are regularly provided to management for use in the evaluation of segment performance and allocation of resources. For a reconciliation of OCI to operating income, see the Consolidated Statements of Earnings contained in this release.
Reconciliations of adjusted measures to corresponding GAAP measures are also provided in the release. All references in this news release are to continuing operations, unless otherwise noted.
As a result of the spin-off of Philip Morris International Inc. (PMI) in the first quarter of 2008, our reported results reflect PMI as a discontinued operation for the nine months ended September 30, 2008. Revenues and OCI for PMI are therefore excluded from Altria's continuing results.
Altria's reporting segments are Cigarettes, manufactured by PM USA; Smokeless Products, manufactured by U.S. Smokeless Tobacco Company LLC (USSTC) and PM USA; Cigars, manufactured by John Middleton Co. (Middleton); Wine, produced and distributed by Ste. Michelle Wine Estates (Ste. Michelle); and Financial Services, provided by Philip Morris Capital Corporation (PMCC).
Altria's Business Results For the third quarter of 2009, Altria's net revenues increased 20.3% to $6.3 billion, reflecting higher pricing related primarily to the federal excise tax (FET) increase on tobacco products, and the acquisition of UST. Operating income increased 4.9% to $1.4 billion, due primarily to higher OCI from financial services and cigars, as well as the OCI contribution from the UST acquisition, and lower general corporate expenses. These increases were partially offset by a reduction of a Kraft Foods Inc. (Kraft) receivable that arose in connection with potential tax liabilities for which Kraft was responsible under a tax sharing agreement entered into in connection with the Kraft spin-off transaction, higher corporate exit costs, and lower OCI from cigarettes. Net earnings attributable to Altria increased 1.7% to $0.9 billion, due primarily to higher operating income, higher earnings from Altria's equity investment in SABMiller, and lower income taxes. The income tax rate in the third quarter of 2009 was lower than the prior-year period, due primarily to lower state taxes and the reversal of tax reserves related to Kraft that are no longer required. These increases were partially offset by higher interest expense related to the debt issued in connection with the UST acquisition.
For the first nine months of 2009, Altria's net revenues increased 19.3% to $17.5 billion, reflecting higher pricing related primarily to the FET increase on tobacco products, and the acquisition of UST. Operating income increased 9.7% to $4.3 billion, due primarily to higher OCI from cigarettes, financial services and cigars, as well as the OCI contribution from the UST acquisition, lower corporate exit costs, and lower general corporate expenses. These increases in operating income were partially offset by the gain in 2008 on the sale of the corporate headquarters building, UST acquisition-related transaction costs, and a reduction of a Kraft receivable. Earnings from continuing operations increased 2.9% to $2.5 billion, due primarily to higher operating income, a loss in 2008 on the early extinguishment of debt in connection with the PMI spin-off, higher earnings from Altria's equity investment in SABMiller, and lower income taxes, partially offset by higher interest expense related to the debt issued in connection with the UST acquisition. Net earnings attributable to Altria, which includes PMI as a discontinued operation in 2008, decreased 41.6% to $2.5 billion.
CIGARETTES Business Results The cigarettes segment's results for the third quarter and first nine months of 2009 were impacted by the April 1, 2009 FET increase on tobacco products.
Net revenues for the three- and nine-month periods increased 10.7% and 9.2% respectively versus the prior-year periods, due primarily to higher pricing related to the FET increase. Revenues net of excise taxes decreased 11.3% in the third quarter and 6.7% in the first nine months of 2009, due primarily to lower volume. Adjusted revenues net of excise taxes and contract volume manufactured for PMI in 2008 for the three- and nine-month periods decreased 9.2% and 5.0% respectively versus the prior-year periods, due primarily to lower volume.
Revenues for the cigarettes segment are summarized in Table 4 below.
Table 4 - Cigarettes: Revenues ($ in Millions) Third Quarter Nine Months Ended Sept. 30 2009 2008 Change 2009 2008 Change Net Revenues $ 5,626 $ 5,084 10.7 % $ 15,546 $ 14,233 9.2 % Excise taxes on cigarettes (1,899 ) (883 ) (4,631 ) (2,533 ) Revenues net of excise taxes 3,727 4,201 (11.3 )% 10,915 11,700 (6.7 )% Revenues for contract volume - (97 ) - (207 ) manufactured for PMI Adjusted revenues net of excise $ 3,727 $ 4,104 (9.2 )% $ 10,915 $ 11,493 (5.0 )% taxes/contract volume for PMI Reported OCI for the cigarettes segment decreased 2.6% in the third quarter of 2009 versus the prior-year period to $1.3 billion, due primarily to lower volume and higher pre-tax charges related primarily to the previously announced closure of the Cabarrus manufacturing facility, partially offset by higher list prices and cost savings. For the first nine months of 2009, reported OCI for the cigarettes segment increased 4.2% versus the prior-year period to $3.9 billion, due primarily to higher list prices and cost savings, partially offset by lower volume and higher pre-tax charges related primarily to the previously announced closure of the Cabarrus manufacturing facility. Excluding the exit and implementation costs, adjusted OCI increased by 2.1% to $1.4 billion in the third quarter of 2009 and 6.4% to $4.1 billion in the first nine months of 2009, as shown in Table 5 below.
Table 5 - Cigarettes: OCI ($ in Millions) Third Quarter Nine Months Ended Sept. 30 2009 2008 Change 2009 2008 Change Reported OCI $ 1,333 $ 1,369 (2.6 )% $ 3,902 $ 3,746 4.2 % Exit and implementation costs 96 31 180 92 Adjusted OCI $ 1,429 $ 1,400 2.1 % $ 4,082 $ 3,838 6.4 % Adjusted OCI margin* 38.3 % 34.1 % 4.2 pp 37.4 % 33.4 % 4.0 pp *Adjusted OCI margins are calculated as adjusted OCI, divided by adjusted revenues net of excise tax and contract volume manufactured for PMI.
PM USA's cigarette shipment volume in the third quarter of 2009 was negatively impacted by the FET increase, which occurred earlier this year, a decline in trade inventories, as well as changes to PM USA's pricing and promotional strategies on its portfolio brands. PM USA's third quarter domestic cigarette shipment volume of 37.5 billion units was 16.4% lower than the prior-year period, but was estimated to be down about 12% when adjusted for changes in trade inventories. Marlboro's cigarette shipment volume was down 15% in the third quarter of 2009, but was estimated to be down about 10% when adjusted for trade inventory changes, which disproportionally impacted the brand.
Total cigarette industry volume was down an estimated 10% in the third quarter of 2009 versus the comparable year-ago period, when adjusted for trade inventory changes. In the third quarter of 2008 the trade increased cigarette inventories, while in the third quarter of 2009 the trade substantially reduced inventory levels. The difference in PM USA's volume decline rate versus the total cigarette industry in the third quarter of 2009 is due primarily to higher trade inventory declines on PM USA's brands as well as share losses on its portfolio brands.
For the first nine months of 2009, PM USA's domestic cigarette shipment volume of 112.5 billion units was 12.5% lower than the prior-year period, but was estimated to be down about 10% when adjusted for changes in trade inventories and calendar differences. Total cigarette industry volume was down an estimated 8% in the first nine months of 2009 when adjusted for trade inventory changes and calendar differences. The difference in PM USA's volume decline rate versus the total cigarette industry for the first nine months of 2009 is due primarily to volume lost during the period of FET-related price gap dislocation, higher trade inventory declines on PM USA's brands, as well as share losses on its portfolio brands. PM USA's cigarette volume performance is summarized in Table 6 below.
Table 6 - Cigarettes: Volume (Units in Billions) Third Quarter Nine Months Ended Sept. 30 2009 2008 Change 2009 2008 Change Marlboro 31.9 37.5 (15.0)% 95.6 107.4 (11.0)% Parliament 1.0 1.5 (27.4)% 3.0 4.1 (25.4)% Virginia Slims 1.3 1.6 (19.3)% 4.0 4.7 (15.8)% Basic 2.3 3.2 (28.5)% 7.2 9.3 (22.4)% Other 1.0 1.1 (12.2)% 2.7 3.1 (11.9)% Total Cigarettes 37.5 44.9 (16.4)% 112.5 128.6 (12.5)% Note: Volume includes units sold as well as promotional units, but excludes Puerto Rico, U.S. Territories, Overseas Military, Duty Free and 2008 contract manufacturing for PMI; percent volume change calculation is based on units to the nearest million.
Marlboro's retail share for the third quarter of 2009 and the first nine months of 2009 each increased 0.1 share point versus the year-ago periods to 41.9%.
Marlboro gained 0.7 share points sequentially versus the second quarter of 2009 with balanced retail share growth of 0.4 share points on Marlboro non-menthol and 0.3 share points on Marlboro Menthol. PM USA's retail share performance for cigarettes is summarized in Table 7 below.
Table 7 - Cigarettes: Retail Share (Percent) Third Quarter Nine Months Ended Sept. 30 2009 2008 Change 2009 2008 Change Marlboro 41.9 41.8 0.1 pp 41.9 41.8 0.1 pp Parliament 1.5 1.8 (0.3) pp 1.6 1.9 (0.3) pp Virginia Slims 1.8 1.9 (0.1) pp 1.8 2.0 (0.2) pp Basic 3.2 3.8 (0.6) pp 3.5 3.9 (0.4) pp Other 1.3 1.3 0.0 pp 1.3 1.3 0.0 pp Total Cigarettes 49.7 50.6 (0.9) pp 50.1 50.9 (0.8) pp Note: Retail share performance is based on data from the Information Resources, Inc. IRI/Capstone Integrated Retail Panel, which is a tracking service that uses a sample of stores to project market share performance in retail stores selling cigarettes. The panel was not designed to capture sales through other channels, including the Internet and direct mail. Effective in the first quarter of 2009, cigarettes segment retail share results are based on a retail tracking service, the IRI/Capstone Integrated Retail Panel. This new service was developed to provide a comprehensive measure of market share in retail outlets selling cigarettes similar to the previous service. Market share data for 2008 has been restated to reflect this new service.
SMOKELESS PRODUCTS Business Results Altria acquired UST and its smokeless tobacco business, USSTC, on January 6, 2009. As a result, USSTC's financial results from January 6 through September 30, 2009 are included in Altria's 2009 consolidated and segment results for the nine months ending September 30. In addition, the smokeless products segment includes PM USA's smokeless products.
In the third quarter of 2009, net revenues for the smokeless products segment were $352 million, and revenues net of excise taxes were $326 million. For the first nine months of 2009, net revenues were $1.0 billion, and revenues net of excise taxes were $961 million.
Reported OCI for the smokeless products segment in the third quarter and for the first nine months of 2009 was negatively impacted by costs related primarily to the acquisition of UST, consisting of employee separation costs, integration costs and inventory adjustments, as well as costs associated with PM USA's smokeless products, and actions taken to enhance the value equation on USSTC's moist smokeless tobacco (MST) brands. Excluding exit, integration and acquisition-related costs, adjusted OCI was $156 million in the third quarter of 2009 and $495 million for the first nine months of 2009 as shown in Table 8 below.
Table 8 - Smokeless Products OCI ($ in Millions) Third Quarter of Nine Months Ended 2009 Sept. 30, 2009 Reported OCI $ 127 $ 302 Exit and integration costs 28 179 UST acquisition-related costs 1 14 Adjusted OCI $ 156 $ 495 In the first half of 2009, USSTC measured the smokeless products segment's marketplace performance in terms of the company's share of the MST category.
Effective in the third quarter of 2009, management of the smokeless businesses changed the measurement of the volume and market share of the smokeless products segment to include MST and spit-less tobacco products. Management believes this new definition of the category provides a more comprehensive measure of Altria's smokeless products segment marketplace performance. Smokeless products' volume and retail shares have been restated to reflect this new measurement.
USSTC's and PM USA's combined smokeless products domestic shipment volume for the third quarter of 2009 and the first nine months of 2009 declined 4.5% and 4.3%, respectively, versus the prior-year periods. The combined smokeless products domestic shipment volume for the three- and nine-month periods was estimated to be essentially flat and down 2%, respectively, when adjusted for trade inventory changes, the timing of returns from retail, the discontinuation of multi-pack deals and the discontinuation of USSTC's Rooster brand. Management believes that the estimated long-term growth rate for smokeless products industry volume remained at 7%. USSTC's and PM USA's combined volume performance for smokeless products is summarized in Table 9 below.
Table 9 - Smokeless Products: Volume (Cans and Packs in Millions) Third Quarter Nine Months Ended Sept. 30 2009 2008 Change 2009 2008 Change Copenhagen 67.8 69.0 (1.7)% 202.7 209.2 (3.1)% Skoal 66.9 68.2 (2.0)% 198.7 205.4 (3.3)% Red Seal/Other 23.3 28.2 (17.3)% 75.9 84.2 (9.9)% Total Smokeless 158.0 165.4 (4.5)% 477.3 498.8 (4.3)% Products Note: Other includes PM USA smokeless products. Volume includes cans and packs sold as well as promotional units, and excludes international volume. One pack of snus is equivalent to a can of MST. Volume from 2008 represents domestic volume shipped by USSTC prior to the UST acquisition. Additionally, nine months ended September 30, 2009 includes 10.9 million cans of domestic volume shipped by USSTC prior to the UST acquisition. Percent volume change calculation is based on units to the nearest thousand.
USSTC's and PM USA's combined premium retail share in the third quarter of 2009 stabilized and was unchanged versus the second quarter of 2009. Copenhagen's retail share gained 0.3 share points versus the second quarter of 2009 as the brand benefited from USSTC's actions to enhance its value equation. Skoal's retail share declined 0.3 share points versus the second quarter of 2009; however, USSTC is encouraged by the stabilization of Skoal's retail share as it maintained a share of approximately 23.6% during the July through September period. Overall, USSTC's and PM USA's combined retail share of smokeless products in the third quarter of 2009 was down 0.4 share points versus the second quarter of 2009 to 54.0%, due primarily to share losses in USSTC's discount brand portfolio. The companies' combined quarterly retail share performance for smokeless products is summarized in Table 10 below.
Table 10 - Smokeless Products: Retail Share (Percent) 2009 Change Third- Third- Second- Quarter versus First- Quarter Quarter Second-Quarter Quarter Copenhagen 23.3 23.0 0.3 pp 23.8 Skoal 23.6 23.9 (0.3) pp 24.1 Red Seal/Other 7.1 7.5 (0.4) pp 8.5 Total Smokeless Products 54.0 54.4 (0.4) pp 56.4 Note: Other includes PM USA smokeless tobacco products. Retail share performance (full quarterly results) is based on data from Information Resources, Inc.
(IRI), InfoScan Smokeless Tobacco Database for Food, Drug, Mass Merchandisers (excluding Wal-Mart) and Convenience trade classes, which tracks smokeless products market share performance. Smokeless Products is defined as moist smokeless and spit-less tobacco products. One pack of snus or other spit-less tobacco product is equivalent to a can of MST for share measurement purposes. It is IRI's standard practice to periodically refresh their InfoScan syndicated services, which would restate retail share results that were previously released.
Based on the previous MST-only market share measurement USSTC's premium share of MST in the third quarter of 2009 was unchanged versus the second quarter of 2009 at 48.4%. Copenhagen's MST retail share increased 0.2 share points to 24.0% and Skoal's MST retail share declined 0.2 share points to 24.4%. USSTC's MST retail share in the third quarter of 2009 declined 0.3 share points to 55.6% versus the second quarter of 2009.
CIGARS Business Results Net revenues for the cigars segment in the third quarter of 2009 increased 56.1% to $153 million, reflecting higher pricing related to the FET increase, and higher volume. Revenues net of excise taxes for the cigars segment increased 17.9% to $99 million, due primarily to higher pricing and volume. For the first nine months of 2009, net revenues for the cigars segment increased 33.1% to $386 million, reflecting higher pricing and excise taxes, and revenues net of excise taxes increased 11.0% to $272 million, due primarily to higher pricing. Revenues for the cigars segment are summarized in Table 11 below.
Table 11 - Cigars: Revenues ($ in Millions) Third Quarter Nine Months Ended Sept. 30 2009 2008 Change 2009 2008 Change Net Revenues $ 153 $ 98 56.1 % $ 386 $ 290 33.1 % Excise Taxes (54 ) (14 ) (114 ) (45 ) Revenues net of excise $ 99 $ 84 17.9 % $ 272 $ 245 11.0 % taxes Reported OCI for the cigars segment in the third quarter of 2009 increased 32.4% versus the prior-year period to $49 million, due primarily to higher pricing and volume. Adjusted OCI for cigars, which excludes integration costs, increased 6.5% in the third quarter of 2009 versus the prior-year period to $49 million.
For the first nine months of 2009, reported OCI for the cigars segment increased 8.6% to $139 million versus the prior-year period. Excluding integration costs, adjusted OCI for the cigars segment increased 4.3% to $146 million as shown in Table 12 below.
Table 12 - Cigars: OCI ($ in Millions) Third Quarter Nine Months Ended Sept. 30 2009 2008 Change 2009 2008 Change Reported OCI $ 49 $ 37 32.4 % $ 139 $ 128 8.6 % Integration costs - 9 7 12 Adjusted OCI $ 49 $ 46 6.5 % $ 146 $ 140 4.3 % Adjusted OCI margin* 49.5 % 54.8 % (5.3 )pp 53.7 % 57.1 % (3.4 )pp *Adjusted OCI margins are calculated as adjusted OCI, divided by revenues net of excise taxes.
Middleton's third-quarter cigar volume increased 3.9% versus the prior-year period to 341 million units. For the first nine months of 2009, Middleton's cigar shipment volume declined 3.9% versus the prior-year period. Volume results in the three- and nine-month periods were estimated to be relatively stable when adjusted for changes in trade inventories and Middleton's migration to the Altria Sales & Distribution system, as well as the timing of promotional shipments. Middleton believes that the long-term growth rate for machine-made large cigars industry volume remained 3%, however, the industry growth rate has slowed after the FET increase. Middleton's volume performance for cigars is summarized in Table 13 below.
Table 13 - Cigars: Volume (Units in Millions) Third Quarter Nine Months Ended Sept. 30 2009 2008 Change 2009 2008 Change Black & Mild 333 318 4.6% 932 965 (3.4)% Total Cigars 341 329 3.9% 956 996 (3.9)% Note: Percent volume change calculation is based on units to the nearest thousand.
Middleton achieved a 31.4% retail share of the machine-made large cigars segment in the third quarter of 2009, up 0.6 share points versus the prior-year period.
Black & Mild's third-quarter retail share increased 0.7 share points versus the prior-year period to 30.9%, due primarily to new product introductions.
Middleton launched Black & Mild Wood Tip and Black & Mild Wood Tip Wine earlier this year. For the first nine months of 2009, Black & Mild's retail share increased 1.3 share points versus the prior-year period. Middleton's retail share performance for cigars is summarized in Table 14 below.
Table 14 - Cigars: Retail Share (Percent) Third Quarter Nine Months Ended Sept.
30 2009 2008 Change 2009 2008 Change Black & Mild 30.9 30.2 0.7 pp 29.7 28.4 1.3 pp Total Cigars 31.4 30.8 0.6 pp 30.3 29.0 1.3 pp Note: Retail share performance is based on data from IRI, InfoScan Cigar Database for Food, Drug, Mass Merchandisers (excluding Wal-Mart) and Convenience trade classes, which tracks machine-made large cigars market share performance.
Effective with the first quarter of 2009, cigar retail share results are based on a retail tracking service provided by IRI. This new service was developed to provide a representation of retail business performance in key trade channels.
Market share data for 2008 has been restated to reflect this new service. It is IRI's standard practice to periodically refresh their InfoScan syndicated services, which would restate retail share results that were previously released.
WINE Business Results Altria acquired UST and its premium wine business, Ste. Michelle, on January 6, 2009. As a result, Ste. Michelle's financial results from January 6 through September 30, 2009 are included in Altria's 2009 consolidated and segment results for the nine months ending September 30.
Net revenues for the three- and nine-month periods were $102 million and $271 million, respectively. Reported OCI for the wine segment in the third quarter of 2009 was $12 million, which included exit, integration and acquisition-related costs of $7 million. Excluding these costs, the adjusted OCI for the wine segment was $19 million in the third quarter of 2009. For the first nine months of 2009, reported OCI for the wine segment was $22 million, which included exit, integration and acquisition costs of $21 million. Excluding these costs, adjusted OCI was $43 million for the nine months ending September 30, 2009.
Ste. Michelle's wine shipment volume of 1.5 million cases in the third quarter of 2009 was 2.0% higher than the prior-year period, due primarily to higher off-premise channel sales. The off-premise channel includes supermarkets and liquor stores. Ste. Michelle's volume performance for wine is summarized in Table 15 below.
Table 15 - Wine: Volume (Cases in Thousands) Third Quarter Nine Months Ended Sept. 30 2009 2008 Change 2009 2008 Change Chateau Ste. Michelle 501 462 8.5 % 1,376 1,302 5.7 % Columbia Crest 493 529 (6.8 )% 1,379 1,510 (8.7 )% Other Wines 477 450 5.8 % 1,333 1,361 (2.1 )% Total Wine 1,471 1,441 2.0 % 4,088 4,173 (2.0 )% Note: Volume from 2008 represents domestic volume shipped by Ste. Michelle prior to the UST acquisition. Percent volume change calculation is based on units to the nearest hundred.
Ste. Michelle's retail volume, as measured by Nielsen Total Wine Database -- U.S. Food & Drug (Nielsen), increased 9% in the third quarter of 2009 and 11% in the first nine months of 2009, versus the prior-year periods. The total wine industry's retail volume for both the three- and nine-month periods, as measured by Nielsen, increased 2% versus the prior-year periods.
FINANCIAL SERVICES Business Results Reported OCI for the financial services segment in the third quarter of 2009 was $57 million, an increase of $64 million versus the prior-year period, due primarily to higher gains on asset sales in the third quarter of 2009, and an increase in 2008 to the allowance for losses. For the first nine months of 2009, reported OCI for the financial services segment increased $163 million versus the prior-year period to $260 million, due primarily to higher gains on asset sales.
The allowance for losses at the end of the third quarter of 2009 was $266 million, which reflects a decrease of $49 million from the second quarter of 2009 due to the write-off of a lease related to Motors Liquidation Company, formerly known as General Motors Corporation.
PMCC remains focused on managing its portfolio of leased assets in order to maximize financial contributions to Altria. PMCC is not making new investments and expects that its OCI will vary over time as investments mature or are sold.
Altria's Profile Altria directly or indirectly owns 100% of each of PM USA, USSTC, Middleton, Ste. Michelle, and PMCC. Altria holds a continuing economic and voting interest in SABMiller.
The brand portfolio of Altria's tobacco operating companies includes such well-known names as Marlboro, Copenhagen, Skoal and Black & Mild. Ste. Michelle produces and markets premium wines sold under 20 different labels including Chateau Ste. Michelle and Columbia Crest, and it exclusively distributes and markets Antinori products and Champagne Nicolas Feuillatte in the United States.
Trademarks and service marks related to Altria referenced in this release are the property of, or licensed by, Altria or its subsidiaries. More information about Altria is available at www.altria.com.
Forward-Looking and Cautionary Statements This press release contains projections of future results and other forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.
Important factors that may cause actual results and outcomes to differ materially from those contained in the projections and forward-looking statements included in this press release are described in Altria's publicly filed reports, including its Annual Report on Form 10-K for the year ended December 31, 2008 and its Quarterly Report on Form 10-Q for the period ended June 30, 2009.
These factors include the following: Altria's tobacco businesses (PM USA, USSTC and Middleton) are subject to intense price competition; changes in consumer preferences and demand for their products; fluctuations in raw material availability, quality and cost; reliance on key facilities and suppliers; fluctuations in levels of customer inventories; the effects of global, national and local economic and market conditions; changes to income tax laws; legislation, including actual and potential federal and state excise tax increases; increasing marketing and regulatory restrictions; the effects of price increases related to excise tax increases and concluded tobacco litigation settlements on consumption rates and consumer preferences within price segments; health concerns relating to the use of tobacco products and exposure to environmental tobacco smoke; governmental regulation, including the Family Smoking Prevention and Tobacco Control Act that granted the Food and Drug Administration broad authority to regulate tobacco products; privately imposed smoking restrictions; and governmental and grand jury investigations.
Their results are dependent upon their continued ability to promote brand equity successfully; to anticipate and respond to new consumer trends; to develop new products and markets and to broaden brand portfolios in order to compete effectively; and to improve productivity.
There can be no assurance that Altria will achieve the synergies expected of the UST acquisition.
Altria's subsidiaries continue to be subject to litigation, including risks associated with adverse jury and judicial determinations, courts reaching conclusions at variance with the companies' understanding of applicable law and bonding requirements in the limited number of jurisdictions that do not limit the dollar amount of appeal bonds. Altria cautions that the foregoing list of important factors is not complete and does not undertake to update any forward-looking statements that it may make other than in the normal course of its public disclosure obligations. All subsequent written and oral forward-looking statements attributable to Altria or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements referenced above.
Schedule 1 ALTRIA GROUP, INC. and Subsidiaries Consolidated Statements of Earnings For the Quarters Ended September 30, (in millions, except per share data) (Unaudited) 2009 2008 % Change Net revenues $ 6,300 $ 5,238 20.3 % Cost of sales 2,033 2,230 (8.8 ) % Excise taxes on products (*) 1,982 897 100.0 %+ Gross profit 2,285 2,111 8.2 % Marketing, administration and research costs 628 697 Exit costs 79 15 Operating companies income 1,578 1,399 12.8 % Amortization of intangibles 7 2 General corporate expenses 35 66 Reduction of Kraft receivable 88 - Corporate exit costs 54 2 Operating income 1,394 1,329 4.9 % Interest and other debt expense, net 279 25 Earnings from equity investment in SABMiller (119 ) (54 ) Earnings before income taxes 1,234 1,358 (9.1 ) % Provision for income taxes 352 491 (28.3 ) % Net earnings attributable to Altria Group, Inc. $ 882 $ 867 1.7 % Per share data: Basic earnings per share attributable to Altria Group, Inc. $ 0.43 $ 0.42 2.4 % Diluted earnings per share attributable to Altria Group, Inc. $ 0.42 $ 0.42 - % Weighted average diluted shares outstanding 2,072 2,067 0.2 % (*) The segment detail of excise taxes on products sold is shown in Schedule 2. Schedule 2 ALTRIA GROUP, INC. and Subsidiaries Selected Financial Data by Reporting Segment For the Quarters Ended September 30, (dollars in millions) (Unaudited) Net Revenues Smokeless Financial Cigarettes Products Cigars Wine Services Total 2009 $ 5,626 $ 352 $ 153 $ 102 $ 67 $ 6,300 2008 5,084 - 98 - 56 5,238 % Change 10.7 % - 56.1 % - 19.6 % 20.3 % Reconciliation: For the quarter ended September 30, 2008 $ 5,084 $ - $ 98 $ - $ 56 $ 5,238 Operations 542 352 55 102 11 1,062 For the quarter ended September 30, 2009 $ 5,626 $ 352 $ 153 $ 102 $ 67 $ 6,300 The detail of excise taxes on products sold is as follows: 2009 $ 1,899 $ 26 $ 54 $ 3 $ - $ 1,982 2008 $ 883 $ - $ 14 $ - $ - $ 897 Schedule 3 ALTRIA GROUP, INC. and Subsidiaries Selected Financial Data by Reporting Segment For the Quarters Ended September 30, (dollars in millions) (Unaudited) Operating Companies Income Smokeless Financial Cigarettes Products Cigars Wine Services Total 2009 $ 1,333 $ 127 $ 49 $ 12 $ 57 $ 1,578 2008 1,369 - 37 - (7 ) 1,399 % Change (2.6 )% - 32.4 % - 100 %+ 12.8 % Reconciliation: For the quarter ended September 30, 2008 $ 1,369 $ - $ 37 $ - $ (7 ) $ 1,399 Exit costs - 2008 15 - - - - 15 Integration costs - 2008 - - 9 - - 9 Implementation costs - 2008 16 - - - - 16 31 - 9 - - 40 Exit costs - 2009 (52 ) (23 ) - (1 ) (3 ) (79 ) Integration costs - 2009 - (5 ) - (1 ) - (6 ) Implementation costs - 2009 (44 ) - - - - (44 ) UST acquisition-related costs - 2009 - (1 ) - (5 ) - (6 ) (96 ) (29 ) - (7 ) (3 ) (135 ) Operations 29 156 3 19 67 274 For the quarter ended September 30, 2009 $ 1,333 $ 127 $ 49 $ 12 $ 57 $ 1,578 Schedule 4 ALTRIA GROUP, INC. and Subsidiaries Consolidated Statements of Earnings For the Nine Months Ended September 30, (in millions, except per share data) (Unaudited) 2009 2008 % Change Net revenues $ 17,542 $ 14,702 19.3 % Cost of sales 5,941 6,285 (5.5 ) % Excise taxes on products (*) 4,818 2,578 86.9 % Gross profit 6,783 5,839 16.2 % Marketing, administration and research costs 1,920 1,824 Exit costs 238 44 Operating companies income 4,625 3,971 16.5 % Amortization of intangibles 16 5 General corporate expenses 138 236 Reduction of Kraft receivable 88 - UST acquisition-related transaction costs 60 - Gain on sale of corporate headquarters building - (404 ) Corporate exit costs 61 250 Operating income 4,262 3,884 9.7 % Interest and other debt expense, net 902 27 Loss on early extinguishment of debt - 393 Earnings from equity investment in SABMiller (442 ) (344 ) Earnings from continuing operations before income taxes 3,802 3,808 (0.2 ) % Provision for income taxes 1,320 1,397 (5.5 ) % Earnings from continuing operations 2,482 2,411 2.9 % Earnings from discontinued operations, net of income taxes - 1,901 Net earnings 2,482 4,312 (42.4 ) % Net earnings attributable to noncontrolling interests (1 ) (61 ) Net earnings attributable to Altria Group, Inc. $ 2,481 $ 4,251 (41.6 ) % Amounts attributable to Altria Group, Inc. stockholders: Earnings from continuing operations $ 2,481 $ 2,411 2.9 % Earnings from discontinued operations - 1,840 Net earnings attributable to Altria Group, Inc. $ 2,481 $ 4,251 (41.6 ) % Per share data (**): Basic earnings per share: Continuing operations $ 1.20 $ 1.16 3.4 % Discontinued operations - 0.88 Net earnings attributable to Altria Group, Inc. $ 1.20 $ 2.04 (41.2 ) % Diluted earnings per share: Continuing operations $ 1.19 $ 1.15 3.5 % Discontinued operations - 0.88 Net earnings attributable to Altria Group, Inc. $ 1.19 $ 2.03 (41.4 ) % Weighted average diluted shares outstanding 2,070 2,090 (1.0 ) % (*) The segment detail of excise taxes on products sold is shown in Schedule 5. (**) Basic and diluted earnings per share are computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts. Schedule 5 ALTRIA GROUP, INC. and Subsidiaries Selected Financial Data by Reporting Segment For the Nine Months Ended September 30, (dollars in millions) (Unaudited) Net Revenues Smokeless Financial Cigarettes Products Cigars Wine Services Total 2009 $ 15,546 $ 1,023 $ 386 $ 271 $ 316 $ 17,542 2008 14,233 - 290 - 179 14,702 % Change 9.2 % - 33.1 % - 76.5 % 19.3 % Reconciliation: For the nine months ended September 30, 2008 $ 14,233 $ - $ 290 $ - $ 179 $ 14,702 Operations 1,313 1,023 96 271 137 2,840 For the nine months ended September 30, 2009 $ 15,546 $ 1,023 $ 386 $ 271 $ 316 $ 17,542 The detail of excise taxes on products sold is as follows: 2009 $ 4,631 $ 62 $ 114 $ 11 $ - $ 4,818 2008 $ 2,533 $ - $ 45 $ - $ - $ 2,578 Schedule 6 ALTRIA GROUP, INC. and Subsidiaries Selected Financial Data by Reporting Segment For the Nine Months Ended September 30, (dollars in millions) (Unaudited) Operating Companies Income Smokeless Financial Cigarettes Products Cigars Wine Services Total 2009 $ 3,902 $ 302 $ 139 $ 22 $ 260 $ 4,625 2008 3,746 - 128 - 97 3,971 % Change 4.2 % - 8.6 % - 100 %+ 16.5 % Reconciliation: For the nine months ended September 30, 2008 $ 3,746 $ - $ 128 $ - $ 97 $ 3,971 Exit costs - 2008 44 - - - - 44 Integration costs - 2008 - - 12 - - 12 Implementation costs - 2008 48 - - - - 48 92 - 12 - - 104 Exit costs - 2009 (86 ) (146 ) - (3 ) (3 ) (238 ) Integration costs - 2009 - (33 ) (7 ) (3 ) - (43 ) Implementation costs - 2009 (94 ) - - - - (94 ) UST acquisition-related costs - 2009 - (14 ) - (15 ) - (29 ) (180 ) (193 ) (7 ) (21 ) (3 ) (404 ) Operations 244 495 6 43 166 954 For the nine months ended September 30, 2009 $ 3,902 $ 302 $ 139 $ 22 $ 260 $ 4,625 Schedule 7 ALTRIA GROUP, INC. and Subsidiaries Net Earnings and Diluted Earnings Per Share - Attributable to Altria Group, Inc. For the Quarters Ended September 30, (dollars in millions, except per share data) (Unaudited) Net Diluted Earnings E.P.S. 2009 Net Earnings $ 882 $ 0.42 2008 Net Earnings $ 867 $ 0.42 % Change 1.7 % - % Reconciliation: 2008 Net Earnings $ 867 $ 0.42 2008 Exit, integration and implementation costs 27 0.01 2008 SABMiller special items 54 0.03 2008 Financing fees 3 - 84 0.04 2009 Exit, integration and implementation costs (117 ) (0.06 ) 2009 UST acquisition-related costs (5 ) - 2009 SABMiller special items (25 ) (0.01 ) 2009 Tax items 31 0.01 (116 ) (0.06 ) Operations 47 0.02 2009 Net Earnings $ 882 $ 0.42 2009 Net Earnings Adjusted For Special Items $ 998 $ 0.48 2008 Net Earnings Adjusted For Special Items $ 951 $ 0.46 % Change 4.9 % 4.3 % Schedule 8 ALTRIA GROUP, INC. and Subsidiaries Continuing Earnings and Diluted Earnings Per Share - Attributable to Altria Group, Inc. For the Nine Months Ended September 30, (dollars in millions, except per share data) (Unaudited) Continuing Diluted Earnings E.P.S. (*) 2009 Continuing Earnings $ 2,481 $ 1.19 2008 Continuing Earnings $ 2,411 $ 1.15 % Change 2.9 % 3.5 % Reconciliation: 2008 Continuing Earnings $ 2,411 $ 1.15 2008 Exit, integration and implementation costs 223 0.10 2008 Gain on sale of corporate headquarters building (263 ) (0.12 ) 2008 Loss on early extinguishment of debt 256 0.12 2008 SABMiller special items 54 0.03 2008 Financing fees 3 - 273 0.13 2009 Exit, integration and implementation costs (279 ) (0.14 ) 2009 UST acquisition-related costs (126 ) (0.06 ) 2009 SABMiller special items 16 0.01 2009 Tax items 31 0.01 (358 ) (0.18 ) Fewer shares outstanding - 0.01 Operations 155 0.08 2009 Continuing Earnings $ 2,481 $ 1.19 2009 Continuing Earnings Adjusted For Special Items $ 2,839 $ 1.37 2008 Continuing Earnings Adjusted For Special Items $ 2,684 $ 1.28 % Change 5.8 % 7.0 % (*) Diluted earnings per share is computed independently for each period. Accordingly, the sum of the quarterly earnings per share amounts may not agree to the year-to-date amounts. Schedule 9 ALTRIA GROUP, INC. and Subsidiaries Condensed Consolidated Balance Sheets (dollars in millions) (Unaudited) September 30, December 31, 2009 2008 Assets Cash and cash equivalents $ 1,030 $ 7,916 Inventories 1,762 1,069 Deferred income taxes 1,501 1,690 Other current assets 715 401 Property, plant and equipment, net 2,774 2,199 Goodwill and other intangible assets, net 17,140 3,116 Investment in SABMiller 4,962 4,261 Other long-term assets 1,131 1,080 Total consumer products assets 31,015 21,732 Total financial services assets 4,865 5,483 Total assets $ 35,880 $ 27,215 Liabilities and Stockholders' Equity Current portion of long-term debt $ 775 $ 135 Accrued settlement charges 3,274 3,984 Other current liabilities 3,121 3,023 Long-term debt 11,184 6,839 Deferred income taxes 4,164 351 Accrued postretirement health care costs 2,368 2,208 Accrued pension costs 1,602 1,393 Other long-term liabilities 1,149 1,208 Total consumer products liabilities 27,637 19,141 Total financial services liabilities 4,488 5,246 Total liabilities 32,125 24,387 Redeemable noncontrolling interest 32 - Total stockholders' equity 3,723 2,828 Total liabilities and stockholders' equity $ 35,880 $ 27,215 Total consumer products debt $ 11,959 $ 6,974 Total debt $ 11,959 $ 7,474 SOURCE: Altria Group, Inc.
CONTACT: Altria Group, Inc. Clifford B. Fleet, 804-484-8222 Vice President, Investor Relations or Daniel R. Murphy, 804-484-8222 Director, Investor Relations Copyright Business Wire 2009 -0- KEYWORD: United States
North America
Virginia INDUSTRY KEYWORD: Professional Services
Finance
Retail
Specialty
Tobacco
Other Retail SUBJECT CODE: Earnings
Conference Call
Webcast
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