MOST NOTEWORTHY: Disney, McClatchy News and McDonald's were today's noteworthy downgrades:
Citigroup downgraded shares of Disney (NYSE: DIS) to Sell from Hold after their databases indicated a slowdown in Parks is likely. They believe the slowdown in Parks will be coupled with a broader ad slowdown and lowered their target to $26 from $36.
Wachovia lowered its rating on McClatchy News (NYSE: MNI) to Market Perform from Outperform and has concerns that the California and Florida markets could weaken further.
McDonald's (NYSE: MCD) was downgraded to Peer Perform from Outperform at Bear. The firm cited slowing US sales, international business sensitivity to the economy, and valuation.
OTHER DOWNGRADES:
NYMEX (NYSE: NMX) was downgraded to Hold from Buy at Citigroup.
Oppenheimer downgraded Albermarle (NYSE: ALB) to Perform from Outperform.
CME Group is preliminary talks to buy energy/precious metals market Nymex, CME announced Monday, in a statement.
Under terms being discussed, CME Group Inc. (NYSE: CME), the world's largest derivatives exchange, would pay Nymex Holdings, Inc. (NYSE: NMX) $36 per share in cash and 0.123 of a CME common share, which would value the deal at about $11 billion, Reuters reported Monday.
Nymex shares rose $9.01 to $116.17 on the news, while CME's shares fell $12.77 to $616.01 in Monday afternoon trading.
CME Group was created in July 2007 via the merger of the Chicago Mercantile Exchange and the Chicago Board of Trade in a $9.3-billion deal. Nymex, which is short for the New York Mercantile Exchange, went public in November 2006.
MOST NOTEWORTHY: Celera Genomics, Plantronics and Nymex were today's noteworthy upgrades:
JMP Securities upgraded Celera Group, Applera Corp. (NYSE: CRA) to Outperform from Market Perform, as they believe an announcement on the company's evaluation of its tracking stock could come as early as 1Q08, a split of Celera/Applied Biosystems could occur by FY08, and a new finding in a peer-review journal that predicts risk of coronary heart disease and statin benefit within the next six weeks.
Baird raised Plantronics (NYSE: PLT) to Outperform from Neutral based on valuation, strength in the Center and Office segment, and negative sentiment on Mobile revenues unwarranted.
Deutsche Bank upgraded shares of NYMEX (NYSE: NMX) to Buy from Hold and raised their target to $160 from $145 to reflect stabilized floor volumes, increased trading of commodities and acquisition potential consensus estimates that are too low. Deutsche named NMX their top exchange idea for 2008.
OTHER UPGRADES:
Citigroup upgraded Blue Nile (NASDAQ: NILE) to Buy from Hold.
Goldman upgraded Schlumberger (NYSE: SLB) to Buy from Neutral.
MOST NOTEWORTHY: NYMEX, Imperial Chemical, Qualcomm and Infineon were today's noteworthy upgrades:
Citigroup upgraded shares of NYMEX (NYSE: NMX) to Buy from Hold following the recent share weakness, as they believe record high oil will bring a period of extended energy volatility. Citigroup also believes NMX is the most likely takeover candidate among U.S. exchanges.
JP Morgan raised its rating on Imperial Chemical (OTC: ICIYY) to Neutral from Overweight, as they believe the deal with Akzo Nobel (OTC: AKZOY) will go through and is positive for shareholders.
JP Morgan also raised Qualcomm (NASDAQ: QCOM) to Overweight from Neutral to reflect the strong outlook for the QCT chip business as well as Qualcomm's product pipeline.
Merrill Lynch upgraded shares of Infineon (NYSE: IFX) to Buy from Neutral on valuation, as they believe the current share price factors in no value for the company's 77.5% stake in Qimonda (NYSE: QI).
OTHER UPGRADES:
Citigroup upgraded the bank sector to Overweight from Market Weight.
UBS upgraded Caterpillar (NYSE: CAT) to Neutral from Sell.
Credit Suisse upgraded VASCO Data Security (NASDAQ: VDSI) to Outperform from Market Perform.
Best Buy (NYSE: BBY) was raised to Outperform from Market Perform at Wachovia.
In this generally difficult market, there are still areas that are hot, and the energy futures market is one such area. One place that benefits from the solid business in futures trading is the exchange itself where such futures are traded. NYMEX Holdings, Inc. (NYSE: NMX) is the largest exchange for energy futures and options contracts trading in the world.
Additionally, it trades contracts for gold, silver, copper, aluminum and other metals. The company went public in 2006, and despite some stumbles along the way, I like the direction it is heading. In 2006, it began using Chicago Mercantile Exchange's Globex electronic trading platform, which has proven a terrific move. Analysts believe that these two firms have merger potential.
This pick isn't without its risks. Certainly, exchanges are highly susceptible to regulatory changes. NYMEX has competition as well, in the form of IntercontinentalExchange, Inc. (NYSE: ICE). Prior to NYMEX starting its electronic trading, Intercontinental was able to capture roughly half of its crude oil market share. While NYMEX has managed to get most of this business back, no question that Intercontinental is an competitor to keep your eye on.
Progenics Pharmaceuticals (NASDAQ: PGNX) was added to Friedman Billings' Top Picks list and its Outperform rating was maintained. The firm has a high degree of confidence in the success of the MNTX Ph III studies in post-operative ilieus, as well as the FDA approval of the subcutaneous injection in terminally ill patients with opiod-induced constipation around the 1/31/07 PDUFA date.
RBC believes margin expansion will drive long-term appreciation in Tyco Electronics Ltd (NYSE: TEL) and started shares with an Outperform rating and $41 target.
PharMerica Corporation (NYSE: PMC) was initiated with an Underperform rating at Bear Stearns. The firm believes PMC will be pressured by customer losses and generic reimbursement cuts and sees shares trading in $12-$13 range.
OTHER INITIATIONS:
Ryanair Holdings (NASDAQ: RYAAY) was initiated with a Market Outperform rating at Avondale.u
U.S. stock futures are shooting up, indicating a strong start for today's session as absent M&A talks and speculations once again hit center stage. Investors are also increasingly expecting the Federal Reserve will cut rates soon. However, it seems that Fed Chairman Bernanke aims to avoid an emergency rate cut and continue with his strategy of increasing liquidity.
Yesterday, stocks ended mixed, with the Dow industrials losing 30 points while the Nasdaq Composite rising 12 points and the S&P 500 gaining 1.5 points amid constant expectations and speculations regarding the Fed's policy. Fed and Treasury officials gave statements that could be interpreted both ways. The Fed meets again on September 18, and while many would prefer a rate cut sooner than that, most expect the Fed to move then.
But what really is moving the market this morning is M&A talks and speculations, specifically a report from the Wall Street Journal saying that E-Trade (NASDAQ: ETFC) and TD Ameritrade (NASDAQ: AMTD) are talking merger.
State-owned Dubai World also agreed to pay $5 billion for a 9.5% stake in MGM Mirage (NYSE: MGM) -- that's 14 million shares at $84 each, a 13% premium over yesterday's closing price.
Still in deals, the parent company of the New York Mercantile Exchange, NYMEX Holdings (NYSE: NMX) disclosed it's held talks to be purchased, and said it wanted a "meaningful premium."
Economic data is light today with the weekly jobless claims report out at 8:30 a.m.
Overseas, European and Asian stocks mostly gained on speculation the Federal Reserve will cut interest rates.
In other corporate news:
Toll Brothers Inc. (NYSE: TOL) reported its fiscal third-quarter profits which tumbled 85% to $26.5 million, or 16 cents a share. Excluding write-downs, earnings were 70 cents a share for the quarter. Analysts, on average, predicted a loss of 2 cents a share for the quarter. TOL shares are up 4.3% in premarket trading (7:26 a.m.).
I usually tend to favor the study and analysis of value-oriented professional portfolios over growth-oriented one. After the past week's volatility, however, I've seen many growth stocks begin to offer buying opportunities. [Image source: InvestorPlace.com.]
Louis Navellier is a very well-known growth investor who writes the Blue Chip Growth newsletter and manages Navellier & Associates, a $4.5 billion fund focused on finding stocks that "should contribute significantly to overall portfolio outperformance against relative benchmarks."
Because the fund owns so many stocks, I'm only going to focus on Navellier's favorite industries, or themes, and the favorite ideas within each one. If you read through Navellier's 'position sheet,' it should become pretty apparent that the several themes he's currently riding in the market, are big tech, exchanges and oil service companies
With his company's stock near a 52-week low, Robert Willett, CEO of Best Buy Incorporated's (NYSE: BBY) international operations, bought nearly $500K in stock, reported Barron's Online's "Inside Scoop" section.
The Wall Street Journal reported that Sun Microsystems Inc (NASDAQ: SUNW) is today expected to introduce a new microprocessor called UltraSparc T2, will be able to process up to 64 threads at one time -- most chips can handle up to four threads at a time.
According to the Financial Times, citing a source familiar with his pay package, Robert Nardelli will college a salary of $1 a year in his new role as CEO of Chrysler, which is 20% owned by DaimlerChrysler (NYSE: DCX).
OTHER PAPERS:
The New York Mercantile Exchange (NYSE: NMX) is quietly selling its lower Manhattan headquarters, asking for between $600M and $700M, ahead of a deal to sell itself, reported the New York Post.
Stock futures point to a higher open at the moment, after being flat earlier in the morning, as stocks may try to finish the week on a positive note, making it a third straight day of gains. Today, the much anticipated CPI will be released as well as several other economic readings.
Yesterday, stocks continued their climb, making it the best two-day advance since July for the Dow industrials. Stocks were buoyed by producer prices released before the start of the session. Core inflation at the wholesale level (excluding food and energy) rose at a moderate pace. In addition, bond yield seemed to have stabilized. Investors fears that the Fed may raise, rather than lower, rates were somewhat alleviated.
Today, investors will be following several economic readings:
Starting with the most anticipated one, the May Consumer Price Index, which will be released at 8:30 a.m. and could change the direction stocks will be moving according to its reading. Economists are expecting the CPI to gain 0.6% after a 0.4% rise in April. Core CPI, which excludes the volatile energy and food prices and which is the Fed's preferred measure, is forecast to rise the same as in April, 0.2%.
Also at 8:30 a.m., the June NY Empire State Index, or the regional manufacturing index, will be released.
At 9:00 a.m., the current account deficit, an indicator that shows trade and investment flows between countries, will be released.
At 9:15 a.m., May Industrial Production and Capacity Utilization will be released. Production is expected to rise 0.2% after a 0.7% gain in April, while capacity should remain unchanged at 81.6%.
Finally at 10:00 a.m., the preliminary June Reuters/University of Michigan reading on June consumer sentiment is also due. Economists forecast the index fell to 88.0 from 88.3 due to gas prices.
While treasury rates continued to rise this morning, overseas stocks marked another day of gains. Asian stocks finished with gains after the Bank of Japan held rates at 0.5% and European stocks are gaining for the third day in a row.
Corporate news:
A day after Intel Corp.(NASDAQ: INTC) shares gained 2.5% following its announcement it was expanding its high-end chip line [subscription], this morning Intel shares are gaining 2% in pre-market trading (7:31 a.m.). Intel was upgraded to Buy from Neutral at Goldman Sachs. The broker said that it is probably Advanced Micro Devices Inc.(NYSE: AMD) may move to an outsourced business model and that this will create significant benefits for Intel.
According to Bloomberg, the New York Mercantile Exchange (NYSE: NMX) is exploring a sale to NYSE Euronext (NYSE: NYX), Deutsche Boerse AG or Chicago Mercantile Exchange Holdings Inc. (NYSE: CME).
MOST NOTEWORTHY: Shutterfly, Inc (SFLY), Marvel Entertainment, Inc (MVL), National CineMedia, Inc (NCMI) and Wal-Mart Stores (WMT) were some of today's noteworthy initiations:
Cantor sees significant opportunities for growth at Shutterfly Inc (NASDAQ: SFLY), driven by new business lines, international expansion and new products, among other things, and started SFLY Shares with a Buy rating.
Stifel initiated Marvel Entertainment (NYSE: MVL) with a Buy rating and believes the impending film slate provides a long-term growth opportunity and serves as a catalyst.
Thomas Weisel started National CineMedia Inc (NASDAQ: NCMI) with an Overweight rating, as the firm still believes the company is among the fastest-growing, ad-supported media companies in the U.S. given its ownership in NCM LLC, which has established a leadership position in the cinema advertising market.
MOST NOTEWORTHY: Three consumer financial services companies, CBS Corp (CBS) and Dress Barn, Inc (DBRN) were today's noteworthy initiations:
Calyon initiated three consumer financial services companies:
American Express Co (NYSE: AXP) was initiated with a Buy rating and $67 target, based on valuation.
Capital One Financial Corp (NYSE: COF) was initiated with an Add rating, as the firm believes shares should be valued in-line with comparable banks, but feels the best investors should hope for is $90/share by year-end given the current market conditions.
MasterCard Inc (NYSE: MA) was started with an Add rating and $123 target, as the firm believes shares should perform well in an environment in which concerns over credit risk remain paramount.
CBS Corp (NYSE: CBS) was initiated with an Outperform rating at Wachovia, which expects accelerated growth in 2008.
CIBC started Dress Barn Inc (NASDAQ: DBRN) with a Sector Performer rating, citing valuation.
MOST NOTEWORTHY: Altera Corp (NASDAQ: ALTR) and Chico's FAS (NYSE: CHS) were the most noteworthy companies initiated today.
Shares of Altera Corp (NASDAQ: ALTR) were initiated with a Buy rating and $26 at Nollenberger; the firm believes that due to the company's faster growth rate, increasing market share and higher gross margins, shares should trade at a premium to Xilinx Inc (NASDAQ: XLNX).
Soleil Securities initiated shares of Chico's FAS (NYSE: CHS) with a Hold rating, believing it may take at least through the spring season to see a meaningful improvement in operating results.
OTHER INITIATIONS:
Spirit Aerosystems 'A' (NYSE: SPR) was initiated by several firms: Jefferies with a Buy and $36 target, Credit Suisse with a Neutral and $35 target, Citigroup with a Sell rating and $24 target, Morgan Stanley with an Overweight and $38 target, Cowen with a Neutral rating and UBS with a Neutral and $38 target.
NYMEX Holdings (NYSE: NMX) was initiated with an Underweight rating at JP Morgan, citing the rich valuation for its rating.
Shares of Hansen Medical (NASDAQ: HNSN) were initiated with an Overweight rating and a $16 target at Morgan Stanley.
MOST NOTEWORTHY: First Solar (FSLR), which was started by multiple firms, was the most notable initiation today.
Cowen and Piper Jaffrey initiated First Solar (NASDAQ: FSLR) with Outperform ratings, First Albany and ThinkEquity started the company with Buy ratings and Morgan Stanley started the company with an Equal Weight rating.
OTHER INITIATIONS:
The Bank of America and Citigroup initiated the NYMEX Holdings (NYSE: NMX); BofA with a Neutral and Citigroup with a Hold rating, based on valuation.
Prudential initiated coverage on Biogen Idec (NASDAQ: BIIB) with a Neutral rating and a $53 target; the firm has concerns that growth in Avonex and Rituxan have peaked and that competition from other MS drugs will continue to erode Avonex market share.
MOST NOTEWORTHY: Stanley (SXE) and The NYMEX (NMX) topped today's extensive list of initiations.
Stanley Inc. (NYSE:SXE) was initiated by a host of firms today: Wachovia started the IT services company with a Market Perform rating, citing valuation. Cowen started Stanley with an Outperform rating, citing expectations for 20% EPS growth and the potential for margin upside for their rationale. JP Morgan, Stifel and Citigroup initiated Stanely with Buy ratings, citing solid market positioning in the civilian and federal IT markets.
The NYMEX (NYSE:NMX) was initiated at Prudential with an Underweight rating and $112 target, citing a rich valuation and the unlikely chance of a takeout.
OTHER INITIATIONS:
Caris started Abercrombie & Fitch Co. (NYSE:ANF) with an Average rating, citing shares that are fully valued and 2007 growth expectations that could prove to be aggressive.
Wachovia initiated Amedisys, Inc. (NASDAQ:AMED) with a Market Perform rating, citing the risks from potential changes to Medicare reimbursement rules for its rating.
Goldman initiated Biovail Corp. (NYSE:BVF) with a Buy rating and $22 target, citing an attractive valuation.
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MOST NOTEWORTHY: Disney, McClatchy News and McDonald's were today's noteworthy downgrades:
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In this generally difficult market, there are still areas that are hot, and the energy futures market is one such area. One place that benefits from the solid business in futures trading is the exchange itself where such futures are traded. .gif){kind=logo}
U.S. stock futures are shooting up, indicating a strong start for today's session as absent M&A talks and speculations once again hit center stage. Investors are also increasingly expecting the Federal Reserve will cut rates soon. However, it seems that Fed Chairman Bernanke aims to 
I usually tend to favor the study and analysis of value-oriented professional portfolios over growth-oriented one. After the past week's volatility, however, I've seen many growth stocks begin to offer buying opportunities. 
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Stock futures point to a higher open at the moment, after being flat earlier in the morning, as stocks may try to finish the week on a positive note, making it a third straight day of gains. Today, the much anticipated CPI will be released as well as several other economic readings.
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