U.S. market futures were fractionally higher in pre-market trading this morning, with the S&P 500 and Nasdaq contracts trading about one point above fair value.

President Barack Obama is set to renominate Federal Reserve Chairman Ben Bernanke to another term, and will announce his decision this morning. Fed watchers believe continuity in that office will help markets remain calm, as more questions are raised about the Fed's ability to withdraw its numerous programs aimed at restarting the economy before inflation becomes a problem.

The market also awaits data on Consumer Confidence and the Case-Shiller Home Price Index, both of which will be released later this morning.

James Cullen edits and writes at CollegeAnalysts.com.

Before the Bell: Futures steady on news of Bernanke's reappointment originally appeared on BloggingStocks on Tue, 25 Aug 2009 07:30:00 EST. Please see our terms for use of feeds.

Coca-Cola Co. (NYSE: KO), the beverage giant with the world's most valuable brand according to BusinessWeek, reported earnings before the market opened today. Earnings per share for the second quarter of 2009 were $0.92 after items on $8.27 billion in revenue, compared to the $0.89 average EPS expected from analysts. The consensus revenue target was $8.66 billion, meaning that Coke missed on the top line even though global unit case volume increased 4%, driven by a 33% increase in India and a 14% increase in China. The company said they increased market share for the eighth consecutive quarter.

Shares fell slightly more than 1% in early trading, after rising yesterday.

Continue reading Coca-Cola earnings down, but developing markets a bright spot

Coca-Cola earnings down, but developing markets a bright spot originally appeared on BloggingStocks on Tue, 21 Jul 2009 13:20:00 EST. Please see our terms for use of feeds.

"This is a great time to be a banker," New York Times columnist Floyd Norris says, somewhat tongue-in-cheek. Jabs about bailouts and huge bonus payments aside, it's true that banking system is finally seeing rational pricing of risk -- and that means earnings power has greatly increased for deposit-taking banks. If you have a savings account or money market, you might have noticed that your interest payments have dried up to a pittance; the interest you aren't being paid is dropping through to banks' bottom lines.

Looking at today's earnings report from Citigroup, Inc. (NYSE: C), for example, is useful to see how the economics of the industry function, and whether Citicorp -- the "good bank" as Citigroup works to split itself -- will live up to the promise CEO Vikram Pandit attributes to it. In a company press release, Pandit said, "Citicorp is our core franchise and will be the source of Citi's long term profitability and growth. Citicorp is unique with institutional and consumer businesses operating on an unmatched global footprint."

Continue reading Citigroup: what the numbers say about credit cards and mortgages

Citigroup: what the numbers say about credit cards and mortgages originally appeared on BloggingStocks on Fri, 17 Jul 2009 15:40:00 EST. Please see our terms for use of feeds.

Similar to consulting firm Accenture (NYSE: ACN), international results were hurt by foreign exchange effects, which offset nearly 4% operational growth overseas. Half of Johnson & Johnson's total revenues for the quarter came from outside the United States. Shares, which are down year-to-date and are underperforming the S&P 500, were up fractionally today in mid-day trading.

Continue reading Johnson & Johnson earnings: More of the same from this blue chip

Johnson & Johnson earnings: More of the same from this blue chip originally appeared on BloggingStocks on Tue, 14 Jul 2009 14:30:00 EST. Please see our terms for use of feeds.

Paul Foster says that options activity in salon company Regis Corporation (NYSE: RGS) indicates the stock is likely to have non-directional price movements over the short-term, following the company's announcement of a stock and debt offering. That could very well be true, but I think the short-term is overanalyzed, and the long-term story here is much clearer -- and Regis offers two important lessons about how to better-analyze the financing and operations of a company.

I was first introduced to Regis about a year ago, when the stock was part of a portfolio of about 35 positions I inherited responsibility for. As I went through the holdings and segmented them out into categories of attractiveness, Regis was consistently ranked near the bottom. The industry itself was unattractive, and the way the company implemented its strategy seemed to leave it particularly vulnerable to adverse financial markets.

Continue reading Regis equity raise offers lessons, stock still a sell

Regis equity raise offers lessons, stock still a sell originally appeared on BloggingStocks on Fri, 10 Jul 2009 17:00:00 EST. Please see our terms for use of feeds.

Aluminum producer Alcoa Inc. (NYSE: AA), the first Dow Jones Industrial Component to report earnings, beat estimates when they announced after the bell -- or so the story goes. It continues that this touched off buying interest across the market that had been sorely lacking in prior sessions. There's only one problem: Alcoa's results weren't very good, and they didn't boost the market.

Alcoa opened trading today up more than 5.5% from its close yesterday, before it reported earnings. Going into the final minutes of trading, the stock was down more than 2% -- a tough reversal for those buying on the pop. The company reported a headline EPS of -$0.32, or -$0.26 excluding restructuring charges. This compared to analysts' consensus of -$0.38 on $3.9 billion in revenue.

Continue reading Don't believe the headline hype on Alcoa

Don't believe the headline hype on Alcoa originally appeared on BloggingStocks on Thu, 09 Jul 2009 18:20:00 EST. Please see our terms for use of feeds.

Online retailer Amazon.com, Inc. (NASDAQ: AMZN) is looking to extend the reach of its Kindle -- a wireless reading device -- into the hands of consumers, and hopes that cutting the price will speed adoption in a price-sensitive world. Formerly priced at $359, the Kindle will now be sold for $299, though the more advanced Kindle DX will still maintain its $489 price tag.

Amazon, known mainly for selling books online before branching out into other areas, has made the Kindle a focal point of creating new growth for the site. The company has been offering generous 10% payouts via its affiliate program for creating sales, compared to the typical 4% paid on other items. A June 30 research report from Cowen & Co. obtained by DailyFinance estimated that 800,000 Kindle units had been sold so far; the company estimates that more than 2.6 million will be sold by the end of 2010.

Continue reading Amazon cuts Kindle price to speed adoption

Amazon cuts Kindle price to speed adoption originally appeared on BloggingStocks on Wed, 08 Jul 2009 17:30:00 EST. Please see our terms for use of feeds.

Wells Fargo & Company (NYSE: WFC) and solar technology company SunPower Corporation (NASDAQ: SPWRA) teamed up today with an agreement for Wells to finance up to $100 million in new solar energy systems. SunPower will create agreements with end power users and handle operational issues, and Wells will finance and retain ownership of the systems, according to a pair of press releases from the two companies.

The Business Insider says that a research note from FBR Capital says this amount will allow SunPower to add about 20-25 MW of capacity, and that pricing for the solar power will be at competitive rates of under $0.15/kwh. The overall effect on earnings is expected to be immaterial. The average estimate for EPS for the 2009 fiscal year is $1.07, but with a wide range of $0.03 to $1.48. EPS last year was $2.28.

Continue reading Wells Fargo to finance up to $100 million in new SunPower plants

Wells Fargo to finance up to $100 million in new SunPower plants originally appeared on BloggingStocks on Tue, 30 Jun 2009 18:30:00 EST. Please see our terms for use of feeds.

The verdict leaves Abbott stock in a tenuous position. The healthcare sector has been in the crosshairs lately as concerns about costly medical reform swirl, with the SPDR S&P Pharmaceuticals (XPH) ETF down slightly year-to-date, compared to the nearly 5% gain on the S&P 500. Abbott Labs has underperformed both comparables, and is down 10% year-to-date.

Continue reading Abbott Labs to pay J&J $1.67 billion from patent lawsuit

Abbott Labs to pay J&J $1.67 billion from patent lawsuit originally appeared on BloggingStocks on Tue, 30 Jun 2009 14:40:00 EST. Please see our terms for use of feeds.

When the housing market was at its peak in 2006, KB Home's sales topped $3 billion in one quarter. The company has struggled since, as the worst housing market in generations has led to a decline in housing starts of more than 75% from the peak to the present.

Continue reading KB Home drops amid more losses

KB Home drops amid more losses originally appeared on BloggingStocks on Fri, 26 Jun 2009 14:30:00 EST. Please see our terms for use of feeds.

Accenture Ltd. (NYSE: ACN), a global consulting firm that also offers outsourcing and technology services, reported earnings after the close today. Earnings per share for the quarter ending May 31 were $0.68 on $5.15 billion in revenue, compared to the $0.64 average and $0.67 high expected from analysts. The consensus revenue target was $5.2 billion, and results were hurt by currency translation effects, which reduced U.S. dollar results by 12%. Year-over-year, EPS was down 8% from the $0.74 earned in the same quarter last year, with the difference again attributable to currency exchange.

Shares, which were up fractionally today, jumped almost 5% in after-hours trading following the earnings results.

Continue reading Accenture shares rise on earnings beat

Accenture shares rise on earnings beat originally appeared on BloggingStocks on Thu, 25 Jun 2009 18:10:00 EST. Please see our terms for use of feeds.

Nike, Inc. (NYSE: NKE), best known for its sporting apparel and footwear, reported earnings after the close today. Earnings per share, after certain adjustments, were $0.99 on $4.71 billion in revenue, compared to the $0.96 average expected from analysts. The consensus revenue target was $4.74 billion. Excluding non-comparable items, full year diluted EPS was up 10% to $3.81, although the company said worldwide futures orders were down 12% when the impact of currency changes were taken into account. Shares were off 1% during the trading day, and fell further shortly following the announcement.

Observers will be watching to see how well Nike's sales have held up as consumer spending has slowed, and whether or not the company is making strides in its effort to reduce costs and rationalize its advertising budget. Nike has cut 5% of its global workforce in an effort to save hundreds of millions, and management recently indicated that endorsement contract costs have fallen somewhat.

Continue reading Nike reports earnings, shares drop on weak futures orders

Nike reports earnings, shares drop on weak futures orders originally appeared on BloggingStocks on Wed, 24 Jun 2009 17:50:00 EST. Please see our terms for use of feeds.

Home goods retailer Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported earnings today after the market closed, announcing earnings per share (EPS) of $0.34 compared with analyst consensus of $0.25 and results of $0.30 in the prior quarter last year. Revenues of $1.7 billion also topped estimates, rising 2.8%, although comparable store sales fell 1.6%. Shares were up about 2.5% in trading today, and jumped following the announcement.

In addition to its eponymous store chain, the company also owns Christmas Tree Shops, Harmon, and buybuy BABY. The flagship Bed Bath & Beyond stores make up approximately 90% of the more than 1,000 total locations the company operates.

Continue reading Bed Bath & Beyond shares jump on strong results

Bed Bath & Beyond shares jump on strong results originally appeared on BloggingStocks on Wed, 24 Jun 2009 16:50:00 EST. Please see our terms for use of feeds.

A down day for the market and an earnings release that left nothing to be excited about hurt shares of Walgreen Company (NYSE: WAG) today, with shares off more than 6% heading into the close. The drugstore chain, with more than 7,000 locations, reported earnings of 53 cents per share; analysts expected 56 cents on average with a low of 54 cents. Earnings in the same quarter the year before amounted to 58 cents per share.

Sales for the quarter were up 8% overall, with comparable store sales growth up 2.8%. This was largely driven by increased sales of prescription drugs in the quarter, which were up 8.2% to comprise more than 65% of revenues.

Continue reading Walgreens sells off on earnings

Walgreens sells off on earnings originally appeared on BloggingStocks on Mon, 22 Jun 2009 16:40:00 EST. Please see our terms for use of feeds.

Tech giant Microsoft Corp. (NASDAQ: MSFT), long shunned by investors who sought out more aggressive growth opportunities, is gaining support from a number of observers who believe the shares are not only relatively safe, but a bargain at current levels.

As was noted in yesterday's Analyst Action Round-up, Goldman Sachs upgraded the stock to "Conviction Buy," with analyst Sarah Friar raising her price target to $29 on expectations that the company's next set of offerings will be innovative and well-received winners. Friar also believes that search is back in play, with Google Inc's (NASDAQ: GOOG) near monopoly there threatened by a surprisingly successful Bing.

Continue reading Institutional investors suddenly loving Microsoft

Institutional investors suddenly loving Microsoft originally appeared on BloggingStocks on Sat, 20 Jun 2009 08:40:00 EST. Please see our terms for use of feeds.

In the most recent edition of Barron's, fund manager Scott Black touted shares of Cal-Maine Foods (NASDAQ: CALM), the country's largest egg producer, as a stock worth buying. The company generates a return on equity of over 30%, and Black said that at just over 5x earnings, the stock is extraordinarily cheap. When the market revalues Cal-Maine at "just eight times [next year's estimated] earnings, you've got a $38.50 stock." Shares of CALM, which closed Friday at $22.90, were up to $24.86 by Wednesday morning.

I'm familiar with Cal-Maine, having been introduced to the company more than a year ago when it was the focus of a presentation at the Boston College Investment Club. Last summer, I spoke with the company's CFO, Tim Dawson, who gave me a much better understanding of the egg business. Though I came away convinced that Cal-Maine is in very capable hands, I believed then -- as I still do now -- that the stock is not a buy. Here's why.

Continue reading Cal-Maine gets a Barron's boost, but is it a value trap?

Cal-Maine gets a Barron's boost, but is it a value trap? originally appeared on BloggingStocks on Tue, 16 Jun 2009 13:00:00 EST. Please see our terms for use of feeds.

Talk of "green shoots" abounds with the S&P 500 up 40% from its lows in March 2009, but Goldman Sachs (NYSE: GS) CEO Lloyd Blankfein remains cautious in his outlook for the global economy. "I think it's going to be a long, protracted recession," he said while speaking on a panel at the annual International Organization of Securities Commissions (IOSCO) conference in Tel Aviv.

Blankfein also emphasized the importance of intelligent regulation and risk management, warning fellow finance executives not to discount the latter. "The culture of risk management is very important and hard to legislate, but at the end of the day, you have to make sure that the people on the risk management side of your operation are just as capable, and maybe therefore, just as well-paid and have the career opportunities as people on the producing side of the business."

Continue reading Goldman CEO Blankfein cautious on recovery

Goldman CEO Blankfein cautious on recovery originally appeared on BloggingStocks on Thu, 11 Jun 2009 12:20:00 EST. Please see our terms for use of feeds.

Continue reading Developers Diversified (DDR) deal signals pain level for undercapitalized REITs

Developers Diversified (DDR) deal signals pain level for undercapitalized REITs originally appeared on BloggingStocks on Tue, 09 Jun 2009 13:50:00 EST. Please see our terms for use of feeds.

The major indices continued to rally into the close Monday, after spending most of the day down substantially. The Dow ended the day up fractionally and the S&P 500 was down less than one point. Institutional money continues to enter the markets, says Jim Cramer, and that has limited the size and duration of pullbacks.

Even as the uncertainty comes out of the markets, the clarity that replaces it is tepid at best. But with the S&P 500 resting at seven-month highs, one troublesome sector has badly lagged: housing and home-building stocks.

Continue reading Markets are up, but what about housing?

Markets are up, but what about housing? originally appeared on BloggingStocks on Tue, 09 Jun 2009 09:00:00 EST. Please see our terms for use of feeds.