E*Trade Financial Corp. (NASDAQ: ETFC) reported Wednesday morning that its chairman and CEO, Donald Layton, will step down at the end of the year. He will retain all of his current responsibilities through the end of 2009, by which time E*Trade hopes to have named a successor.

In a warm and fuzzy press release, Layton summed up his tenure at E*Trade: "It was an exciting but very challenging time as E*TRADE dealt successfully with the severe financial distress of the last two years. Now that our major recapitalization is complete and the online brokerage business is growing again, I have accomplished what was needed for me to end my time as CEO on schedule. I wish to thank everyone involved -- it was a great team effort."

Isle of Capri Casinos (NASDAQ: ISLE) is getting hammered today in the wake of its latest earnings report. This morning, the company reported that it swung to a fiscal first-quarter profit of $900,000, or 3 cents per share, while revenue for the period slipped 6.3% to $259.9 million. The results were far worse than expected, with consensus estimates on Wall Street predicting a profit of 13 cents per share on $273 million in revenue.

On the cost-cutting front, ISLE's previously planned departure from the international market is on pace, reported Chairman and CEO James B. Perry. "... we remain on track to exit our international operations in the near term, as we will exit the Bahamas no later than October 31, and expect to exit our remaining UK operations by the end of the calendar year."

Brokerage firm Barclays this morning raised its price target on Apple Inc. (NASDAQ: AAPL) from $188 to $208. The new target represents a premium of 25.8% to AAPL's closing price on Wednesday. Additionally, Barclays reiterated its upbeat Overweight rating on the shares.

In a note to clients, analyst Ben Reitzes cited Apple's solid product pipeline and strong free cash flow outlook. "New products should begin to flow again within a few weeks," said Reitzes. "We are more upbeat about the long-term prospects for the iPhone & Mac lines with potential new products."

Hormel Foods Corp. (NYSE: HRL) pleased Wall Street this morning with an upwardly revised 2009 forecast. Thanks to a strong third-quarter performance from its Jennie-O turkey unit, along with solid results in its refrigerated foods and grocery products divisions, Hormel now expects fiscal 2009 earnings of $2.36 to $2.42 per share.

"We also benefited from better investment performance in our rabbi trust," commented Chairman, President, and CEO Jeffrey M. Ettinger in a company release.

El Paso Corporation (NYSE: EP) reported this morning that Global Infrastructure Partners (GIP) has agreed to invest $700 million in EP's Ruby Pipeline project, which will transport natural gas from the Rocky Mountain region to the Western United States. Under the terms of the deal, GIP will receive a 50% equity interest in three major traunches of the project.

News of the lucrative investment has propelled EP to a gain of 1.7%, despite a downside bias in the broader equities market. The shares are positioned above support at their 10-week and 20-week moving averages, but potential resistance lies overhead in the $11 region. This area previously capped the stock's rally attempt in mid-June.

Brokerage house Charles Schwab & Co. (NASDAQ: SCHW) is facing the wrath of New York Attorney General Andrew Cuomo. The state's top attorney sent a letter to Schwab last Friday, warning that he plans to sue the firm for civil fraud in relation to its marketing and sales of auction-rate securities (ARS). Cuomo added that he is open to a possible settlement, although Schwab must be willing to repurchase ARS from its investors who are still holding them.

In response, Schwab is defending itself. "The Attorney General's allegations are without merit," stated the brokerage firm. "They unfairly lay blame on our company for an illiquid market and improper behavior by the large Wall Street firms."

Late Thursday, Moody's Investors Service announced that it might downgrade its credit ratings for Southwest Airlines Co. (NYSE: LUV). In a statement, the ratings agency said the airline's Baa1 senior unsecured rating is at risk, due to the likelihood of weak demand trends persisting into 2010.

The downgrade warning comes shortly after LUV slashed airfares dramatically to remain competitive, with some one-way flights running as low as $30 during a recent promotion. "Even with the benefits of Southwest's advantageous cost structure, the current yield environment is likely to challenge Southwest to restore credit metrics to levels supportive of the current rating," said Moody's in a statement.

In addition to the fundamental concerns cited by Moody's, LUV is also facing some challenges on the charts. The stock has shed 52.8% during the past 52 weeks, and long-term resistance from its 10-month moving average looms directly overhead. This trendline hasn't been toppled on a monthly closing basis since September 2008.

Cypress Semiconductor Corporation (NYSE: CY) joined the parade of companies reporting their latest quarterly results today. The firm swallowed a second-quarter loss of $45.3 million, or 32 cents per share. Excluding items, CY recorded a net loss of just 3 cents per share, besting analysts' consensus expectations for a loss of 9 cents per share. Revenue also came in better than expected, arriving at $155.8 million, compared to Wall Street's forecast of $152.0 million.

In the wake of this upside surprise, CY surged to a new multi-decade high of $9.83 early in today's session. It seems that bearish bettors were caught off-guard by the stronger-than-expected results; during the 10 days leading up to the report, option traders on the International Securities Exchange (ISE) bought to open 6.75 times more puts than calls on CY. Speculative investors on the ISE have purchased the stock's puts over calls at faster pace just 3% of the time.

Late Tuesday, insurance issue MetLife Inc. (NYSE: MET) reported that it will combine its U.S. operations into a single division. The company's institutional and individual business segments, as well as its home and auto units, will be merged into one under the aegis of William Mullaney, the current head of MET's institutional business. The metamorphosis is set to begin Aug. 1, although a full integration isn't expected to be complete until 2010.

"With this realignment, we are recognizing that we can better serve both employee benefit plan sponsors and individual customers through a single, integrated organization, while preserving our unique franchises," commented CEO and chairman C. Robert Henrikson. "A unified U.S. business organization creates a stronger growth platform and builds on our financial strength and our strong brand."

Fastenal Company (NASDAQ: FAST) fell short of Wall Street's second-quarter earnings expectations, with the industrial supply firm confessing to a 43% slide in net profit for the period. Specifically, FAST raked in earnings of $43.5 million, or 29 cents per share, while revenue dwindled 21% to $474.9 million. Analysts were looking for a more robust quarterly profit of 33 cents per share on $487 million in revenue.

"As we saw in the previous two quarters, the weakened economy continues to have a substantial impact on our business," reported Fastenal in a press release. "These impacts continue to negatively affect our sales, particularly related to our industrial production business . . . and, more recently, our non-residential construction business."

Reports today indicate that American International Group, Inc. (NYSE: AIG) may need yet another bailout from the federal government. This time, The New York Post states that AIG will likely require additional government guarantees before it can successfully sell its International Lease Finance Corp. (ILFC) aircraft leasing business.

"Already, the government has agreed to guarantee $5 billion of debt, but those remaining in the auction now want either more government aid or support from airline manufacturers," reports the Post. The newspaper notes that ILFC carries a $30 billion debt load, portions of which will soon mature, along with $50 billion in assets. The unit, which has been up on the auction block since last September, has a book value of $7.5 billion.

AIG shares slipped more than 6% this morning to trade at $1.46, extending their 52-week swoon of 95.7%. After smacking into resistance from its 10-month moving average, the stock is now struggling to maintain a foothold atop its recently supportive 10-week trendline.

Even though the security is trading fairly low on the charts already, some traders are betting on continued losses from AIG. Despite a 16.4% drop in short interest during the most recent reporting period, shorted shares still account for a hefty 9.7% of the stock's available float. Plus, peak put open interest in the June series lies at the 2 strike, with 17,975 contracts in residence.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.

Goldcorp Inc. (NYSE: GG) shares turned lower this morning after the company announced a $750 million offering of convertible senior notes due 2014. The commodity issue said that proceeds from the offering will be used to repay outstanding debt under its revolving term credit facility, with any remaining funds to be applied toward general corporate purposes.

Despite today's drop, GG shares have blazed an impressive path higher during the past month. Since finding a floor near the $27 level in late April, the stock has added 48.7%.

OmniVision Technologies, Inc. (NASDAQ: OVTI) stepped into the earnings spotlight last night, with the company reporting a fourth-quarter loss of $20.1 million, or 40 cents per share.

Excluding items, the quarterly loss would have been 30 cents per share. Revenue for the period fell 47% to $89.1 million, while gross margin contracted from 27.2% to 17%. Analysts were expecting a wider loss of 46 cents per share on slimmer revenue of $68.3 million.

Looking ahead, OVTI expects a fiscal first-quarter adjusted loss of seven cents to 16 cents per share, with revenue ranging between $90 million and $100 million. The forecast was unexpectedly upbeat; analysts surveyed by Thomson Reuters are expecting a first-quarter loss of 23 cents per share on $74 million in revenue.

Transportation company DryShips Inc. (NASDAQ: DRYS) started the session on a positive note this morning after announcing a new waiver agreement with Deutsche Bank.

DRYS, which is struggling under the weight of a hefty debt burden, said it has reached a pact with Deutsche Bank regarding the waiver terms for a credit facility worth $1.125 billion. The facility covers two drillships that are currently under construction.

"We are delivering the waivers as promised and we hope to conclude discussions with the rest of the lenders in the near future," stated CEO George Economou.

The shares of First Solar, Inc. (NASDAQ: FSLR) have started the week on a rocky note. Not only did Friedman, Billings, Ramsey & Co. downgrade the stock from Market Perform to Underperform, the alternative energy issue was also the topic of a skeptical Barron's article over the weekend.

In a note to clients, brokerage firm Friedman cited weak polysilicon prices and the stock's overrich valuation for its downgrade. FSLR closed last Friday at $191.72 per share, compared to Friedman's price target of $110.

Meanwhile, the cautious Barron's write up [subscription required] observes that the Intersolar trade show begins Wednesday in Munich, and pits FSLR against many lower-priced rivals. "One leading customer says it will ditch First Solar's 'thin-film' panels if crystalline silicon alternatives keep getting cheaper.

That seems likely. Silicon prices are expected to drop another 30% by year end. First Solar profits -- and its shares -- could get cut in half," commented the financial paper.