Roth Capital upgraded Charlotte Russe (NASDAQ: CHIC) to Hold from Sell. The firm is positive on management's strategy to drive improved operating performance and is encouraged by the company's longer-term growth prospects.
Banc of America upgraded shares of Las Vegas Sands (NYSE: LVS) to Neutral from Sell following the company's capital raise as they see a more balanced risk/reward at current levels. The firm lowered their target to $5 from $12.
Credit Suisse upgraded Ameriprise (NYSE: AMP) to Outperform from Neutral.
Bob Evans (NASDAQ: BOBE) was upgraded to Hold from Underweight at KeyBanc.
J. Sainsbury (OTC: JSAIY) was upgraded to Buy from Hold at ING and to Neutral from Underweight at JP Morgan after the company topped earnings expectations.
Analyst downgrades:
JP Morgan downgraded General Motors (NYSE: GM) to Neutral from Overweight citing the "ambiguity of government aid structure" and the likely dilution to equity. The analyst said GM needs money now to get past December 2008 and will need at least $15B to get through 2009, with the total bailout potentially reaching $30B.
Goldman downgraded Dell (NASDAQ: DELL) to Sell from Neutral and added shares to the Conviction Sell List.
J.C. Penney (NYSE: JCP) was lowered to Equal Weight from Overweight at Morgan Stanley.
Wal-Mart Stores Inc (NYSE: WMT) reported better-than-expected quarterly profit Thursday morning, as the world's biggest retailer benefited from deteriorating global economic conditions as shoppers looked for discounted goods.
Earnings from continuing operations were 77 cents per share, beating estimates by a penny. Sales rose more than 7% to $97.6 billion. The discount retailer, however, lowered its full year guidance, mostly citing currency exchange effects. WMT shares were trading lower at the open.
Intel Corp. (NASDAQ: INTC) sharply cut its fourth-quarter sales projection Wednesday to about $9 billion, down from a previous estimate of $10.1 billion to $10.9 billion. Following Cisco Systems Inc. (NASDAQ: CSCO)'s warnings, as well as a few others, that orders dropped significantly during October, this is further indication that technology spending has been grinding to a hlat as the economic slowdown continues. INTC shares were down 4.2% in premarket trading (7:58 am), but were flat an hour into the session.
Citigroup Inc. (NYES: C) -- The board is considering replacing its chairman Sir Win Bischoff, the Wall Street Journal reported, citing people familiar with the matter, but a spokesman denied it. A leading candidate is Richard Parsons, Time Warner Inc. (NYSE: TWX)'s chairman. [Update: 9:30: The WSJ also reported that Citi is in talks to buy U.S. regional lender Chevy Chase Bank FSB, which operates in the mid-Atlantic region. Citi shares are trading 1.7% higher in premarket (7:56 am), but traded 5% lower around 11 a.m.
Siemens (NYSE: SI) on Thursday reported a widening fiscal fourth-quarter loss to 2.47 billion euros ($3.1 billion) and said it would be more difficult to meet its profit target for the current year. Operating profit for its core sectors of industry, energy and healthcare dropped 24% to 1.49 billion euros. Sales rose 7% to 21.65 billion euros as demand from China and Europe offset U.S. weakness. SI shares rising in Germany and traded 4.4% higher in premarket (7:25 am). SI shares are adding 7% to their value during the session.
Today was another one of those days where one could feel like the Duke Brothers from Trading Places. It was just another down day, yet the pain seemed to capture everything and everyone. The reasons markets are hurting are all the same as they have been, but such is life and expanding the TARP bailout money isn't helping.
American Express Co. (NYSE: AXP) fell again after negative headlines that it supposedly wants $3.5 billion in TARP funds. Although these are much of the same concerns as yesterday since becoming a bank holding company. Shares were down over 10% at $19.99 right before the close.
Las Vegas Sands (NYSE: LVS) got to see insult added to injury. Moody's cut its debt ratings further into junk status. Shares were down more than another 5% at $5.03 right before the close.
Best Buy Inc. (NYSE: BBY) shares are down after the company said it sees softer consumer spending and lowered fiscal 2009 EPS guidance.
American Express Co. (NYSE: AXP) -- The Wall Street Journal reported that according to its sources, AmEx is seeking about $3.5 billion from the U.S. government to help boost its balance sheet. This follows Monday's Federal approval for AmEx to become a bank holding company.
General Motors Corp. (NYSE: GM) -- House Speaker Nancy Pelosi thinks GM is too big to fail and wants Congress to support a financial assistance for the troubled U.S. auto industry. This follows Obama urging Bush to support aid for struggling automakers and Democrats in Congress passing legislation that would give GM, Ford Motor Co. (NYSE: F) and Chrysler access to $25 billion in government-backed loans. But automakers need more. GM shares are trading higher.
Prudential Financial Inc. (NYSE: PRU) said late Tuesday it will pay a dividend of 58 cents per share on Dec. 19 to shareholders of record at the close of business on Nov. 24. This 2008 annual dividend is roughly half of the $1.15 per share it paid out to shareholders last year.
Today was a strange day as Veteran's Day was observed by the bond market but not by the stock market. Stocks traded lower most of the day as the realization that even a Chinese stimulus package was not going to prevent a global recession. Here were today's unofficial closing bell levels: DJIA: 8,693.96 (-1.99%) NASDAQ: 1,580.90 (-2.22%) S&P 500: 898.94 (-2.21%) Analyst Upgrades Analyst Downgrades
Chesapeake Energy Corp. (NYSE: CHK) announced a joint venture in the Marcellus Shale and an international unconventional natural gas exploration alliance with StatoilHydro. Despite this supposedly being a win, shares were down 5% at $22.45 right before the close.
Focus Media Holding Ltd. (NASDAQ: FMCN), a Chinese advertising agency for online, outdoor, and print ads, was hit extremely hard after posting light earnings and guiding estimates lower ahead. Shares were trading down over 45% at $8.74 right before the close.
Las Vegas Sands Corp. (NYSE: LVS) announced the pricing of a full financing package to keep it within its debt covenants, but it did so at what appears to be a 40% discount on a fully diluted basis. Shares were trading down 35% at $5.22 right before the close.
Starbucks (NASDAQ: SBUX) traded down after the high-end coffee retail destination posted light earnings and gave a warning for the base case for its fiscal year of Sept-2009. Shares were down 13% at $22.00 right before the close.
Tyco International Ltd. (NYSE: TYC) posted earnings at $0.81 EPS, well above the $0.73 EPS estimates. Unfortunately, the company said the current environment was going to put pressure on earnings ahead, and that somehow managed to surprise the investor community. Shares were down 13% at $22.01 right before the close.
U.S. stock futures were lower Tuesday morning as economic concerns increased. China, which boosted markets only Monday with its own stimulus plan, today showed signs of slowing growth as well. World markets responded, with Asia markets posting losses and European markets opening down as well. Oil prices declined again to as low as $60 a barrel. Gloomy corporate reports as well as housing and financial sector woes are weighing heavily on markets today.
[Note: Extended hours indications can change as news progresses, changes.]
American Express Co. (NYSE: AXP) applied to become a commercial bank on Nov 5. Monday night the Federal Reserve approved the request due to "emergency conditions." AmEX could now accept deposits, thus bolster its cash, and gain quicker access to Fed financing.
Starbucks Corp. (NASDAQ: SBUX), the once high flying company, reported Monday 97% lower profit in its fourth quarter. Excluding items, Starbucks earned 10 cents per share, below analyst estimates of 13 cents per share. Fewer U.S. customers and higher costs for closing poorly performing stores led to lower sales and profit. SBUX shares declined 2.75% in after-hours trade 7:56 p.m.
TheStreet.com's Jim Cramer says tons of stocks look like good buys, and they go down all the time.
All weekend I heard it. Stocks have gotten too cheap. Put 'em away cheap. Don't worry about 'em cheap. To which I say, stocks are only cheap if the companies make it. Stocks are only cheap if the bondholders don't claim them.
TheStreet.com's Jim Cramer says if these guys can't parse it, what hope do we have?
People ask me why I am so often freaked out about what is happening daily in this market. Let me give you four reasons: Sheldon Adelson, Sumner Redstone, Howard Lester and Aubrey McClendon.
All four of these gentlemen got overextended and bought too much of their own stock or the stock of another company and got margined out.
These are great American businessmen. They are much smarter than I am -- much smarter than almost any people in business -- and they completely and utterly screwed up. You cannot possibly say that they did anything else.
Howard Lester created Williams-Sonoma (NYSE: WSM) (Cramer's Take). He built that company into the best housewares company in the world with a name synonymous with quality. He is a titan. Lester sold 1,150,000 Williams-Sonoma shares to meet margin calls at prices that are down so huge from the highs as to make me think that if he doesn't know what to do -- and he clearly doesn't -- with his company or his stock, how the heck am I to know?
Jefferies upgraded shares of Genentech (NYSE: DNA) to Buy from Hold and raised its target to $100 from $95 on increased likelihood of an acquisition after Roche (OTC: RHHBY) reaffirmed commitment to its $100/share offer.
Baird expects Broadcom (NASDAQ: BRCM) to gain market share in 2009 in mobile phones, IPTVs, and digital TVs. Shares were upgraded to Outperform from Neutral.
Keefe Bruyette upgraded shares of Torchmark (NYSE: TMK) to Outperform from Market Perform as they see limited earnings risk and an attractive risk/reward.
Apple (NASDAQ: AAPL) was raised to Buy from Add at Calyon.
Tellabs (NASDAQ: TLAB) was upgraded to Buy from Neutral at UBS and to Hold from Underperform at Jefferies.
Where does a business handcuffed by a covenant that caps debt at 7.5 times cash flow go when it needs more money? If it's Las Vegas Sands (NYSE: LVS), it reaches into the bulging pockets of major shareholder and chairman Sheldon Adelson. According to The Wall Street Journal, Adelson has loaned Las Vegas Sands almost half a billion dollars.
The move will allow the company to remain within the covenant of its current $5 billion facility, which is crucial as it looks to raise an additional $2 billion for ongoing projects and refinance a current $3.3 billion loan. Earlier this month, S&P lowered the company's credit rating to B+ from BB-, reflecting weakness in the gaming industry and illiquidity in the company's position.
Traditionally, the large casino-based companies have looked to investment banks for project financing (ouch!) and LVS continues to press forward on plans to build not just in Macau, but other Far East markets such as Singapore and perhaps Taiwan. Even before the current tight money climate in the U.S., though, LVS and other major players in the Far East casino development business have been looking overseas for financing.
Las Vegas Sands (NYSE: LVS) closed at $36.84. LVS September option implied volatility is at 114, October is at 95; above its 26-week average of 61 according to Track Data, suggesting larger price movement.
Wynn Resorts (NASDAQ: WYNN) is recently down $3.52 t $81.90. WYNN September implied volatility is at 74; October is at 70; above its 26-week average of 59 according to Track Data, suggesting larger price movement.
MGM Mirage (NYSE: MGM) closed at $32.45. MGM September option implied volatility is at 93, October is at 91; above its 26-week average of 70, suggesting larger movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Today is the day. Today Apple Inc.(NASDAQ: AAPL)'s new 3G iPhone went on sale. Many countries will now be able to join the iPhone mania, selling the handset to eagerly awaiting customers. Most notably, Japan,Australia and Hong Kong are part of the 22 nations rollout.
Anheuser-Busch (NYSE: BUD) shares are surging 4% in premarket trading after The New York Times reported deal with InBev is now near. Not only that, but it seems the talks are of a friendly deal. This is quite a change from the recent law suits between the two after A-B rejected the Belgian brewer's $46 billion, or $65-a-share, takeover offer.
Shares of MasterCard (NYSE: MA) are rising 3.5% in premarket trading on news that the company will be added to the S&P 500 Index on July 17 in place of ACE Ltd. (NYSE: ACE). Shares of ACE are down over 5%.
With a slowdown in the U.S. economy, the Las Vegas economic expansion has come to a halt. With people unable to pay for a gallon of gas, it comes as no surprise that they are not in the mood to go gamble. The Independent of the UK had a fascinating article about how Las Vegas is suffering with the slow economy.
According to the report: "With Americans cutting back on luxuries, and the price of transport rocketing, the so-called 'Vegas vacation' is facing the axe. This week, as the nation celebrated Independence Day, major hotels were taking stock of a fall in all-important room occupancy rates from their usually impressive 95 per cent levels to nearer 80 per cent."
Gambling revenues have also slipped 3%. Attendance at conventions, a big contributor to the city's coffers has dropped by more than 7%.
All an investor has to do to see how bad the carnage has been is to check some stocks related to the Las Vegas gambling and tourist industry. Las Vegas Sands (NYSE: LVS) has gone in the last 52 weeks from more than $148/share down to around $39, a drop of more than 70%. Ouch. MGM Mirage (NYSE: MGM) has dropped from more than $100/share to under $30.
As the economy continues to sputter, look for more trouble ahead for Las Vegas. On the other hand, contrarian investors may look at an uptick in the U.S. economy, whenever it happens, as a signal to potentially look at stocks that are associated with Las Vegas.
Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer's fund has no position in any stock mentioned, as of 7/6/08.
MOST NOTEWORTHY: Alcoa, Publicis Groupe and Fresenius were today's noteworthy downgrades:
JP Morgan downgraded shares of Alcoa (NYSE: AA) to Neutral from Overweight as they do not believe the company is a takeover target. The firm thinks investors could be disappointed with the new CEO's strategic direction as well as near-term earnings.
Societe Generale cut Publicis (OTC: PUBGY) to Sell from Buy on valuation following the recent rally and macroeconomic concerns.
UBS downgraded Fresenius (NYSE: FMS) to Neutral from Buy citing valuation, but added shares to its Short-Term Buy list citing potential upward EPS revisions when the company reports on July 3.
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Analyst upgrades:
Today was another one of those days where one could feel like the Duke Brothers from Trading Places. It was just another down day, yet the pain seemed to capture everything and everyone. The reasons markets are hurting are all the same as they have been, but such is life and expanding the TARP bailout money isn't helping. 
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Las Vegas Sands.gif){kind=logo}
With a slowdown in the U.S. economy, the Las Vegas economic expansion has come to a halt. With people unable to pay for a gallon of gas, it comes as no surprise that they are not in the mood to go gamble. The Independent of the UK had a fascinating article about how .gif){kind=logo}
Before the bell: Wall Street headed higher; automakers, retailers in focus
Waiting for the other shoe to drop: The looming credit crisis
Bet on T&A with J&J (JNJ)
