Farm Stocks: Pick of the Crop Millions of acres of farmland may be under water, but some agricultural outfits stand to benefit as higher prices lead to demand for seeds, equipment, and fertilizer. They include Archer Daniels Midland, Mosiac, Potash Corp., Agriam, Monsanto and John Deere. Ag Stocks: Farm Favorites Millions More Could Get a Rebate If They File a Return Even as the IRS has sent out nearly 77 million tax rebates, more than 5 million retirees and disabled veterans who may qualify for a rebate haven't received one because they haven't filed a tax return. Millions more could get a rebate if they file a return - USATODAY.com
MOST NOTEWORTHY: Siemens, Con-Way, Old Dominion Freight and Yahoo! were today's noteworthy upgrades:
Goldman added Siemens (NYSE: SI) to their Conviction Buy List on valuation, as they believe investors are overlooking potential catalysts for the stock, such as the company's buyback and margin expansion opportunities. Shares remain Buy rated.
Baird upgraded LTLs Con-Way (NYSE: CNW) and Old Dominion Freight (NASDAQ: ODFL) to Outperform from Neutral based on valuations, less fuel exposure, and better business models than TLs.
Soleil upgraded Yahoo! (NASDAQ: YHOO) to Hold from Sell on valuation, as the stock is near their $22 target.
No, the airlines haven't started charging by the pound. At least not yet...
Jokes aside, nobody told the airlines there'd be days like these, to paraphrase John Lennon.
Jet fuel costs -- up 84% in the past year alone -- have skyrocketed, along with the cost of just about every other product derived from the world's most vital commodity, and the airlines are looking for every conceivable way to reduce weight, reduce wind/resistance drag, and increase operational efficiency, The New York Times reported Wednesday.
The major carriers are replacing heavier seats with lighter ones, cleaning engines and planes more often, reducing the fresh water available on flights, and plugging into electric outlets instead of idling engines at the gate, among other changes, in order to cut fuel consumption.
More air travel changes ahead
Moreover, the changes -- and charges -- have only just begun, so says stock analyst C. Leonard Bauer. "Everyone knows about the added bag charges, a pain in the neck, for sure. But it could get worse," says Bauer, who also flies on a major carrier about 5-7 times per year. "In the winter you could see a per pound baggage charge, or something along those lines. So don't pack that extra winter coat when you fly this December."
With soaring fuel prices and declines in discretionary spending leading to bankruptcies and mergers among the airlines these days, one might forget that such things have often occurred in that industry since its early days. Take Eastern Air Lines, one of the first and longest-running of the so-called trunk carriers in the United States.
Eastern began as a mail carrier for the U.S. Postal Service in the mid-1920s but through acquisition and expansion came to dominate much of the domestic travel industry along the profitable East Coast corridor by the 1950s. Back then the company was widely known for its famous president, former World War I Ace, Eddie Rickenbacker.
The airline thrived into the 1970s, when it was one of the "big four" major U.S. airlines. In its time, Eastern pioneered the use of a worldwide computer reservation system and the all-jet mainline fleet. However, the carrier struggled after the Air Transportation Deregulation Act of 1978. Former astronaut turned CEO Frank Borman finally relented to corporate raider and union buster Frank Lorenzo's buyout offer in 1985. Valuable assets such as new aircraft, the East Coast shuttle service, lucrative fuel operations, and the worldwide travel agent computer system were sold off or shifted to Lorenzo's other carrier, Continental Airlines (NYSE: CAL). Deteriorating labor relations forced Eastern into bankruptcy in 1989, at the time the largest airline bankruptcy in U.S. history. The carrier ceased operations the day after the start of Operation Desert Storm in 1991.
Shares were higher today after the weekly jobless claims were reported as 357,000, down 18,000 from last week. While new claims are down, the four week average of those filing for benefits was up to 3.086 million, the highest level since March 2004. The good news is that the markets largely ignored that S&P downgrade of bond insurers today. The stock market even ignored a $5.00 rise per barrel in oil today. Here are the unofficial closing levels today:
Broadcom Corp. (NASDAQ: BRCM) was an example of just how strong today was by being up almost 3% at $28.90 late in the day. If you read trough the co-founder and former CEO's indictment charges you might think shareholders would have gone the other way.
Continental (NYSE: CAL) announced it plans to reduce its work force by 3,000 jobs and its Q4 domestic departures would be 16% lower than a year earlier.
CAL closed at $14.50 Wednesday. WTI Crude oil is recently up 0.20% to $122.54 according to Bloomberg.
CAL July option implied volatility of 97 is above its 26-week average of 80 according to Track Data, suggesting larger risks.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
22 Mid-Cap Marvels These top-ranked dividend-paying stocks are also expected by S&P analysts to rise in price during the next 12 months. Smart Dividend Plays: 22 Mid-Cap Marvels - BusinessWeek The Rock Star of Money The world's richest man is having an E.F. Hutton moment. Warren Buffett, dubbed the Oracle of Omaha by Wall Street, is making his voice heard these days. The billionaire investor is out talking to cable TV anchors. To magazines. To shareholders. To Congress. To foreign investors. To a former Wall Street analyst who is writing a book about him. He's even popped up in a CNBC documentary, The Billionaire Next Door: All Access, which delves into all things Buffett. Not to mention a recent guest appearance on the daytime soap opera All My Children. People are really listening to what Buffett has to say more than ever. Warren Buffett hones rock-star status - USATODAY.com
The Charleston Gazette reported that Chesapeake Energy Corporation (NYSE: CHK) has decided not to build its Eastern Division headquarters in Charleston, West Virginia in the wake of a West Virginia Supreme Court ruling on May 22.
WEB SITES:
AppleInsider reported that Apple Inc (NASDAQ: AAPL) is expected to announce a back-to-school deal soon that will encourage students to buy new Macs by offering some of the largest incentives in the history of the company.
Stock futures were higher early Friday morning as oil futures continued to drop and Dell reported surprising strong earnings. (Read the full transcript of the conference call that followed the earnings announcement.)
Some upcoming economic readings about personal income might affect the Street's mood yet, but as long as oil prices remain at around $125 a barrel or go even lower, investors may feel more positive on the day.
If last week stocks witnessed one sharp-drop session after another, this week stocks have been more consistent on their way up and on Thursday U.S. stocks rose for the third session in a row due to a big drop in crude-oil futures. The Dow industrials rose 52 points, or 0.41%, the S&P 500 added 7 points, or 0.53%, and the Nasdaq Composite rose 21 points, or 0.87%.
On the economic calendar today several releases:
At 8:30 a.m. EDT April Personal Income and spending is due. While not perfect, personal income is a decent indicator of future consumer demand. Once personal income starts to stagnate, meaning inflation has caught up with income growth, this is another indication of a recession. A price index is included in the income report. The personal-consumption expenditures is often considered to be the Federal Reserve's preferred inflation gauge.
A little after the open, May Chicago PMI, a regional manufacturing survey, is due out.
Finally, at 10:00 a.m., a revised reading on consumer sentiment from the University of Michigan for May will also be released.
Military Couple are Millionaires in the Making If you're brave enough and willing, the Army can be a lucrative career. Just ask U.S. Army Captains Matthew and Kristen Shifrin. This military couple's plan is to save one paycheck and live off the other. That has them well on their way to meeting their financial goals. Millionaires in the Making Millionaires in the Making: The Shifrins «
Safeguard Your Home Before a Storm Strikes Disaster has stormed through homes from the Gulf of Mexico to the Atlantic Ocean, with 1,005 tornadoes reported so far this year and AccuWeather.com forecasts 12 named hurricanes this year. Take these steps now to protect your house and valuables -- plus, what to do after disaster hits. Safeguard Your Home Before a Storm Strikes - Kiplinger.com
Early today, JP Morgan downgraded some airlines and commented that there would be a possible Chapter 11 among the industry's largest companies. "There will be blood," wrote analyst Jamie Baker in the research report, forecasting a 2008 operating loss for the industry of $7.2 billion," reportsMarketWatch.
Several airlines were hit by the news, but United (NASDAQ: UAUA) sold off late on rumors and ended the day down 10% at $12.42. Continental (NYSE: CAL) also got squeezed by investors and was down almost 6% to $16.90.
The industry may be in a better position than investors think. This has nothing to do with rising fuel costs, which will keep operating costs very high or a recession, which could decrease traffic. It has everything to do with whether big banks want to write-off hundreds of million of dollars in losses in loans. They don't, especially not with poor balance sheets of their own. That should make it more likely the airline debt terms will be extended until the industry moves back in the direction of positive operating income.
Banks don't want to own airlines. Aviation is a bad business.
Douglas A. McIntyre is an editor at 247wallst.com.
David Bonderman, the founding partner of TPG, is not typical among his peers. For example, since the early 1990s, he has struck a variety of airline deals, such as for Ryanair (NASDAQ: RYAAY), US Airways (NYSE: LCC) and Continental (NYSE: CAL).
Well, Bonderman is back in the airline space. That is, he has assembled a $2.46 billion investment for XOJET. The investor group includes Tasameem, Export Development Canada, White Oak Global Advisors, LLC and XOJET founder Paul Touw.
XOJET focuses on the private aviation market, which has been growing at a rapid clip. After all, it helps that the major carriers have had lots of problems.
And yes, much of the growth is in foreign markets, such as in Asia and the Middle East. In fact, XOJET has also entered a joint venture with Tasameem, which is operated in Abu Dhabi.
No doubt, XOJET faces a competitive market. But, with its huge slug of capital, it will now have a balance sheet to deal with its rivals.
Charlotte, NC Named Best Place to Live Apparently, there's just something about North Carolina. For the second year in a row, America's best city in which to live lies within its borders, according to Relocate-America.com's annual list. This year, Charlotte, N.C., is in the top spot, the site announced this week. Last year's winner was Asheville, N.C., which slipped to No. 7 on this year's list. Other top places are runner-up San Antonio, TX, Chattanooga, TN, Greenville, SC and Tulsa, OK. Charlotte dethrones Asheville, N.C., as best place to live - MarketWatch
Jumbo Loan Rates Finally Decline The interest rates for jumbo mortgage loans are coming down, but standards for qualifying are much tighter. Jumbo loan rates finally decline - Bankrate.com
Oppenheimer downgraded shares of Chelsea Therapeutics (NASDAQ:CHTP) to Perform from Outperform after their survey suggested physicians believe currently available generic treatments are adequate in neurogenic orthostatic hypotension, which could impact the company's lead drug Droxidopa.
Clearwire (NASDAQ:CLWR) was cut to Sell from Hold at Citigroup on valuation, as they estimate fair value at $13.
OTHER DOWNGRADES:
Goldman downgraded Kellogg (NYSE:K) to Neutral from Buy and Hershey Foods (NYSE:HSY) to Sell from Neutral.
.gif){kind=logo}
This post is part of a series on some of the most memorable 
Continental 
.gif){kind=logo}
Stock futures were higher early Friday morning as oil futures continued to drop and Dell reported surprising strong earnings. (
David Bonderman, the founding partner of 
and 
. He also operates 
Mall vacancies and store closures at 28-year-high
Merrill seeks $6 billion from Bloomberg, Blackrock to finance asset write-downs
Cramer on BloggingStocks: 'Bailout' is not a dirty word
