Analysts Piling Into Dendreon (DNDN)

Dendreon Corp. (NASDAQ: DNDN) has already been all over the news with its positive PROVENGE data for the submission of an FDA application now looking likely late in 2009 with teh hopes of a early-2010 to mid-2010 launch in the war against advanced prostate cancer.  So far, analysts have been stepping all over themselves to [...]

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Source: 24/7 Wall Street | 29 Apr 2009 | 1:01 pm

US economy shrinks 6.1%

The US economy continued to contract in the first quarter of this year as business investment collapsed in the face of eroding global demand
Source: Financial Times - US homepage | 29 Apr 2009 | 12:59 pm

Burger King profits grow strongly

US fast food chain Burger King reports higher profits in the first quarter as cost control initiatives pay off.
Source: BBC News | Business | World Edition | 29 Apr 2009 | 12:59 pm

US economy shrinks by 6.1%

The US economy shrank at a sharper-than-expected rate between January in March, revealing that the world's largest economy is still mired in deep recession.


Source: Latest Business News from Times Online | 29 Apr 2009 | 12:50 pm

US economy continues to decline

The US economy continued to contract in the first three months of 2009, little improvement on the last quarter of 2008.
Source: BBC News | Business | World Edition | 29 Apr 2009 | 12:47 pm

Home Staging Companies Hire Temporary Residents to Entice Buyers

People don’t like purchasing empty homes. At least according to home staging companies, which are now hiring temporary residents to create an occupied atmosphere to lure in potential buyers. The Wall Street Journal reports:

Home “staging” companies charge owners several thousand dollars to fill houses with attractive furniture — but no human props. Faux homeowners could be the next big thing in staging. They supply “that little extra mint on the pillow,” says Steve Rodgers, president of Windermere Exclusive Properties in San Diego, which has the listing on Windward Way. “Down-low and subtle is sometimes good.”

Ms. Clavin responded to a Craigslist ad placed by Quality First Home Marketing, a San Diego startup. It aims to fill high-end empty houses with occupants who play the part of happy homeowners, in a bid to remove the price-depressing stigma of vacancy.

When a real-estate agent phones, Ms. Clavin says, ” ‘I live here’ — because technically, I do,” and provides a broker’s number before the caller inquires further. She must keep the house spotless between 8 a.m. and 8 p.m. She usually gets only five minutes to light the candles, flip on music and disappear before a showing. If she has more time, she’ll bake cookies to scent the home.

If the place sells in 90 days, she’ll earn a relocation bonus, and move on to another empty asset.

Showhomes Management LLC, a franchise operation based in Nashville, has 350 “resident managers” living in homes for sale in 46 high-end markets, including in Florida, Arizona and Illinois. The company has seen revenues increase 88% since last year, says vice president Thomas Scott. Unoccupied staged houses aren’t selling as well as those with people in them, he says, “because people can still tell they’re vacant.”

The article goes on to recount one temp inhabitant who used borrowed furniture and Wal-Mart curtains to create a home that looked like it was owned by a “wealthy world traveler.”

The real estate market may have crashed, but the circus continues.

Source: Business Pundit | 29 Apr 2009 | 12:46 pm

A Possible Crest in GDP Declines

We just got our first look at the Q1-2009 GDP.  The initial report shows -6.1%, much worse than expected but not as bad as the -6.3% in Q4-2008.  Bloomberg had estimates at -5.0% for the quarter and Dow Jones had estimates at -4.6%.  This marks the third consecutive GDP decline, and sets the stage for [...]

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Source: 24/7 Wall Street | 29 Apr 2009 | 12:45 pm

Economy falls more than expected

The U.S economy shrunk at a pace of 6.1% in the first quarter -- almost as much as it did in the fourth quarter of 2008, according to a government report Wednesday.
Source: Business and financial news - CNNMoney.com | 29 Apr 2009 | 12:44 pm

Stocks still set to advance

U.S. stocks were set for a higher open Wednesday, but stock futures fell from earlier highs after a government reading of gross domestic product showed the economy contracted more than expected in the first quarter.
Source: Business and financial news - CNNMoney.com | 29 Apr 2009 | 12:41 pm

Stock futures pare gains following GDP data (AP)

AP - Stock futures are paring their early gains following a worse-than-expected reading on first-quarter GDP.
Source: Yahoo! News: Stock Markets News | 29 Apr 2009 | 12:41 pm

Before the Bell: GDP data, Time Warner, Qwest in focus

U.S. stock futures pointed higher Wednesday, though they pared gains after the latest figures showed a sharper-than-expected contraction in the U.S. economy in the first quarter.

Source: MarketWatch.com - Top Stories | 29 Apr 2009 | 12:41 pm

Wyeth profit tops forecast but revenue disappoints

NEW YORK (Reuters) - U.S. drugmaker Wyeth reported higher-than-expected first-quarter earnings, boosted by cost-cutting, but revenue fell short of forecasts as the stronger dollar hurt overseas sales.
Source: Reuters: Business News | 29 Apr 2009 | 12:40 pm

Opening Bell: 04.29.09

Citi Asks Permission To Pay Bonuses (WSJ)
The combination of pay caps and the full-sub role Citi has started to play is going to start pushing people towards the door; now that there are stable banks (and we can tell where they are) you're going to see the decent groups seek to relocate. From a human capital perspective, Citi will start looking like the Treas before too long. Unless it can...pay bonuses (says Citi).

"Citigroup Inc., soon to be one-third owned by the U.S. government, is asking the Treasury for permission to pay special bonuses to many key employees, according to people familiar with the matter.

The request comes as Citigroup is grappling with broad government pay restrictions that could break apart its legendary energy-trading unit. People at that unit, Phibro, are threatening to leave because of pay caps tied to the U.S. bailout of Citigroup. Phibro has been the source of hundreds of millions of dollars in profits for the bank, and has paid out hefty compensation, including a roughly $100 million windfall last year for the unit's leader, Andrew Hall."

BP's Quarterly Earnings Here;Shell's Here (BBC/WSJ)
Both BP and Shell saw net profit drop by 62% in the most recent quarter, the obvious culprit being the price of oil.

Fed Seeks Capital For Six Banks (Bloomberg)
Obviously Citi and Bank of America, and MS thinks Regions, Sun Trust, and KeyCorp are solid contenders. And lucky number 6 is?

AIG Begs Executive To Reconsider Resignation To Avoid Default (FT)
"AIG has moved to stave off the risk of default on $234bn of derivatives by persuading a senior executive at its troubled financial products division to rescind his resignation and remain with the stricken insurer to unwind the complex trades.

AIG insiders said James Shephard, the deputy chief executive of Paris-based Banque AIG, had decided to stay on as the unit's chief less than a month after resigning in the midst of the political furor over the insurer's bonuses."

Societe General Chairman Steps Down (WSJ)
"After facing repeated attacks, Societe GeneraleSA Chairman Daniel Bouton said Wednesday he will step down, ending more than 10 years at the helm of the French bank that was shaken by a €4.9 billion ($6.44 billion) trading scandal in 2008."

Source: Dealbreaker | 29 Apr 2009 | 12:40 pm

Hess Corp. swings to loss as oil prices fall

Hess Corp. said it swung to a loss in the first quarter as oil prices fell while production remained about flat.

Source: MarketWatch.com - Top Stories | 29 Apr 2009 | 12:40 pm

Stock futures briefly trim gains after GDP data

NEW YORK (Reuters) - Stock index futures trimmed gains before regaining ground on Wednesday after gross domestic product data showed the economy shrank at a steeper-than-expected pace in the first quarter.
Source: Reuters: Business News | 29 Apr 2009 | 12:38 pm

Stock futures briefly trim gains after GDP data (Reuters)

Reuters - Stock index futures trimmed gains before regaining ground on Wednesday after gross domestic product data showed the economy shrank at a steeper-than-expected pace in the first quarter.

Source: Yahoo! News: Business | 29 Apr 2009 | 12:38 pm

Stock futures briefly trim gains after GDP data (Reuters)

Reuters - Stock index futures trimmed gains before regaining ground on Wednesday after gross domestic product data showed the economy shrank at a steeper-than-expected pace in the first quarter.

Source: Yahoo! News: Stock Markets News | 29 Apr 2009 | 12:38 pm

Maple Leaf Foods Reports Results for First Quarter

Business Stabilized; Focus on Margin and Sales Growth TORONTO, April 29 /PRNewswire-FirstCall/ - Maple Leaf Foods Inc. (TSX: MFI) today reported its financial...
Source: RSS feed - channel BNewsBusiness | 29 Apr 2009 | 12:38 pm

Oil rises above $50 with equities

LONDON (Reuters) - Oil prices climbed above $50 per barrel on Wednesday, supported by rising stock markets and expectations that the U.S. economic slowdown may be less brutal than initially
Source: RSS feed - channel BNewsBusiness | 29 Apr 2009 | 12:37 pm

Oil rises above $50 with equities (Reuters)

Reuters - Oil prices climbed above $50 per barrel on Wednesday, supported by rising stock markets and expectations that the U.S. economic slowdown may be less brutal than initially thought.

Source: Yahoo! News: Stock Markets News | 29 Apr 2009 | 12:37 pm

Oil rises above $50 with equities

LONDON (Reuters) - Oil prices climbed above $50 per barrel on Wednesday, supported by rising stock markets and expectations that the U.S. economic slowdown may be less brutal than initially thought.
Source: Reuters: Business News | 29 Apr 2009 | 12:37 pm

Reviewing Obama: How he's done so far

In his first 100 days in office, President Obama has made it very clear that he's not afraid to tackle the financial and economic mess he inherited.
Source: Business and financial news - CNNMoney.com | 29 Apr 2009 | 12:36 pm

Economy shrinks at worse-than-expected pace

The economy shrank at a worse-than-expected 6.1 percent pace at the start of this year as sharp cutbacks by businesses and the biggest drop in U.S. exports in 40 years overwhelmed a rebound
Source: RSS feed - channel BNewsBusiness | 29 Apr 2009 | 12:36 pm

U.S. economy shrinks more than expected

WASHINGTON (Reuters) - The U.S. economy contracted at a steeper-than-expected pace in the first quarter, weighed down by sharp declines in exports and business inventories, according government data on Wednesday that showed the economy was still deep in recession.
Source: Reuters: Business News | 29 Apr 2009 | 12:35 pm

U.S. economy shrinks more than expected (Reuters)

Reuters - The U.S. economy contracted at a steeper-than-expected pace in the first quarter, weighed down by sharp declines in exports and business inventories, according government data on Wednesday that showed the economy was still deep in recession.
Source: Yahoo! News: Business | 29 Apr 2009 | 12:35 pm

Shovels in the ground: Stimulus at work

Thanks to federal stimulus funds, Rhode Island's pockmarked Route 138 in Tiverton is getting repaved. The state's 97,000 food stamp recipients are getting more money. And some 2,000 local youths will have summer jobs.
Source: Business and financial news - CNNMoney.com | 29 Apr 2009 | 12:35 pm

Economy shrinks at 6.1 percent pace in 1Q

The economy shrank at a worse-than-expected 6.1 percent pace at the start of this year as sharp cutbacks by businesses and the biggest drop in U.S. exports in 40 years overwhelmed a rebound
Source: RSS feed - channel BNewsBusiness | 29 Apr 2009 | 12:35 pm

Royal Dutch Shell's profit drops 62% on oil prices

Royal Dutch Shell on Wednesday says its first-quarter profit slumped 62% as the oil major become the latest firm to reveal how far its bottom line has weakened because of the slump in energy prices.

Source: MarketWatch.com - Top Stories | 29 Apr 2009 | 12:35 pm

General Dynamics first-quarter profit edges up 3%

General Dynamics Corp. said Wednesday its first-quarter profit edged up 3% on the back of double-digit sales growth in its military-related businesses.

Source: MarketWatch.com - Top Stories | 29 Apr 2009 | 12:34 pm

Nardelli says Chrysler making progress

Chrysler CEO Robert Nardelli says the automaker is making progress with one day left before its government-imposed restructuring deadline. In a letter to Chrysler employees obtained by...
Source: RSS feed - channel BNewsBusiness | 29 Apr 2009 | 12:33 pm

CN appoints Luc Jobin executive vice-president and chief financial officer effective June 1, 2009

MONTREAL, April 29 /PRNewswire-FirstCall/ - E. Hunter Harrison, president and chief executive officer of CN (TSX: CNR)(NYSE: CNI), announced today the appointment of Luc Jobin,...
Source: RSS feed - channel BNewsBusiness | 29 Apr 2009 | 12:33 pm

GOL Signs Commercial Agreement with Unidas Rent a Car

SAO PAULO, April 29 /PRNewswire-FirstCall/ -- GOL Linhas Aereas Inteligentes S.A. (NYSE: GOL; Bovespa: GOLL4), Brazil's low-cost airline, has signed a commercial...
Source: RSS feed - channel BNewsBusiness | 29 Apr 2009 | 12:33 pm

Earnings Watch: Updates, advisories and surprises

A roundup of the latest corporate earnings reports and what companies are saying about future quarters.

Source: MarketWatch.com - Top Stories | 29 Apr 2009 | 12:31 pm

NN, Inc. to Hold First Quarter 2009 Conference Call on Wednesday, May 6, 2009

JOHNSON CITY, Tenn., April 29 /PRNewswire-FirstCall/ -- NN, Inc. (Nasdaq: NNBR) today announced that it will release first quarter 2009 financial results for the period ended...
Source: RSS feed - channel BNewsBusiness | 29 Apr 2009 | 12:30 pm

Manitex International, Inc. Announces the Approval of a 3-Year Renewal of Its Credit Facility with Comerica Bank

BRIDGEVIEW, Ill., April 29 /PRNewswire-FirstCall/ -- Manitex International, Inc. (Nasdaq: MNTX) today announced that it has been notified by Comerica Bank, that it has been...
Source: RSS feed - channel BNewsBusiness | 29 Apr 2009 | 12:30 pm

Economic Report: GDP falls 6.1% on record drop in investments

The U.S. economy contracts violently again in the first quarter of the year as business investment declines at a record rate, the Commerce Department reports.

Source: MarketWatch.com - Top Stories | 29 Apr 2009 | 12:30 pm

Goodyear posts 1Q loss, sales drop

Goodyear Tire & Rubber Co., the largest U.S. tire maker, says it lost $333 million in the first quarter as sales dropped 28 percent and raw materials costs rose. It is the second...
Source: RSS feed - channel BNewsBusiness | 29 Apr 2009 | 12:29 pm

German giants win bid to build nuclear reactors

Britain’s push to build a new generation of nuclear power stations took another step forward today after E.ON and RWE, two of Europe’s largest utilities, won an auction for two sites earmarked for the construction of new reactors.


Source: Latest Business News from Times Online | 29 Apr 2009 | 12:29 pm

Europe seeks tougher oversight of risk takers

The European Union on Wednesday moved to get a regulatory grip on hedge funds and separately recommended that nations in the European Union put new rules in place aimed at ensuring corporate directors and traders don’t glean excessive rewards for taking short-term risks.

Source: MarketWatch.com - Top Stories | 29 Apr 2009 | 12:28 pm

BPP receives £300 million takeover approach

BPP, the accountancy and legal qualifications group, revealed this morning that it had received a takeover approach worth more than £300 million.


Source: Latest Business News from Times Online | 29 Apr 2009 | 12:25 pm

Burger King profit up on cost cuts

Fast-food giant Burger King posted a 15% rise in third-quarter profit Wednesday, as cost cuts and tax savings helped to offset weakness in March traffic.

Source: MarketWatch.com - Top Stories | 29 Apr 2009 | 12:24 pm

Administration deadline for LDV

Van maker LDV has applied to enter administration, as it struggles to find additional funding.
Source: BBC News | Business | World Edition | 29 Apr 2009 | 12:18 pm

First swine flu death reported in US

The US reported the first death outside Mexico from the swine flu virus as governments around the world stepped up preparations for a possible pandemic
Source: Financial Times - US homepage | 29 Apr 2009 | 12:18 pm

Time Warner revenue beats expectations (Reuters)

Reuters - Time Warner Inc posted a flat quarterly profit but its revenue decline was smaller than expected, as a rise in cable networks revenue offset declines in advertising sales at AOL and Time Inc.

Source: Yahoo! News: Business | 29 Apr 2009 | 12:17 pm

Time Warner revenue beats expectations

NEW YORK (Reuters) - Time Warner Inc posted a flat quarterly profit but its revenue decline was smaller than expected, as a rise in cable networks revenue offset declines in advertising sales at AOL and Time Inc.
Source: Reuters: Business News | 29 Apr 2009 | 12:17 pm

Movers & Shakers: Wednesday's biggest moving stocks

Among the companies whose shares are expected to see active trade in Wednesday’s session are Time Warner Inc., Bank of America Corp. and Aetna Inc.

Source: MarketWatch.com - Top Stories | 29 Apr 2009 | 12:16 pm

Bank of America CEO faces test at annual meeting

CHARLOTTE, North Carolina (Reuters) - Bank of America Corp's embattled CEO, Kenneth Lewis, may have to give up the post of chairman as shareholders hold a referendum on his eight-year tenure as head of the largest U.S. bank.
Source: Reuters: Business News | 29 Apr 2009 | 12:14 pm

Bank of America CEO faces test at annual meeting (Reuters)

Reuters - Bank of America Corp's embattled CEO, Kenneth Lewis, may have to give up the post of chairman as shareholders hold a referendum on his eight-year tenure as head of the largest U.S. bank.

Source: Yahoo! News: Business | 29 Apr 2009 | 12:14 pm

Siemens profit tops expectations as outlook cut

Germany’s Siemens said Wednesday that its fiscal second-quarter net profit more than doubled, topping market expectations thanks to growth in its energy operations, even as the engineering giant cut its outlook for the year.

Source: MarketWatch.com - Top Stories | 29 Apr 2009 | 12:14 pm

SocGen chairman Bouton quits after verbal attacks

PARIS (Reuters) - Daniel Bouton, the chairman of Societe Generale whose reputation was hit by a trading scandal at the bank, resigned and blamed relentless verbal attacks on his performance for his decision to quit.
Source: Reuters: Business News | 29 Apr 2009 | 12:12 pm

LDV timeline: down the years

Here is a timeline detailing key events in the history of LDV Vans.
Source: Telegraph Finance | 29 Apr 2009 | 12:07 pm

Home Retail hit as shoppers tighten belts

Home Retail Group, the Argos and Homebase owner, today reported a 24 per cent fall in underlying full year profit and warned that it saw no early recovery in consumer spending.


Source: Latest Business News from Times Online | 29 Apr 2009 | 12:05 pm

Talkback: Your 100-day job review of Obama

Source: Business and financial news - CNNMoney.com | 29 Apr 2009 | 12:03 pm

ArcelorMittal says recovery in sight despite loss

ArcelorMittal, the world's largest steelgroup, today forecast a recovery in the battered steel industry despite swinging to a bigger than expected first quarter loss.


Source: Latest Business News from Times Online | 29 Apr 2009 | 12:02 pm

Top Analyst Downgrades (ARB, DB, ETFC, FPL, HXL, M, SFD, UA, ZUMZ)

These are most of the top early bird pre-market downgrades and negative research calls we have seen from Wall Street analysts this Wednesday morning: Arbitron (ARB) Cut to Neutral at JPMorgan. Deutsche Bank (DB) Cut to Underperform at Credit Suisse. E*TRADE (ETFC) Cut to Underperform at FBR. FPL Group (FPL) Cut to Hold at KeyBanc. Hexcel (HXL) Cut to Hold [...]

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Source: 24/7 Wall Street | 29 Apr 2009 | 11:55 am

Europe calls for bonus clamp-down

The European Commission calls for restrictions on executive pay in the wake of the financial crisis that sparked the economic downturn.
Source: BBC News | Business | World Edition | 29 Apr 2009 | 11:55 am

Head of U.S. bank rescue program prepares to exit

WASHINGTON (Reuters) - The head of the $700 billion rescue fund created to restore the U.S. financial system will likely make Friday his last day on the job, The Washington Post reported.
Source: Reuters: Business News | 29 Apr 2009 | 11:52 am

Top Analyst Upgrades (BCS, IDTI, JNY, NTES, POR, SQNM, TRMB, UEC)

These are some of the top pre-market analyst upgrades and positive research calls we have seen from Wall Street early this Wednesday morning: Barclays (BCS) Raised to Overweight at HSBC. Integrated Device Tech (IDTI) Raised to Buy at Deutsche Bank. Jones Apparel (JNY) Raised to Buy at Lazard. Netease.com (NTES) Started as Outperform at Bernstein. Portland General Electric (POR) Raised [...]

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Source: 24/7 Wall Street | 29 Apr 2009 | 11:51 am

10 greenest acts of politics

Source: Business and financial news - CNNMoney.com | 29 Apr 2009 | 11:49 am

Banco Santander hit by bad debt provisions

Banco Santander, the owner of Abbey, Alliance & Leicester, and Bradford & Bingley, saw profits fall 5 per cent in the first quarter of 2009 as provisions against bad debt soared 73 per cent.


Source: Latest Business News from Times Online | 29 Apr 2009 | 11:47 am

European Commission unveils tough hedge fund directive

The European Commission has vowed to ensure that no hedge fund manager or private equity fund escapes "effective regulation and oversight" in a tougherthanexpected directive on alternative investments funds published on Wednesday.
Source: Telegraph Finance | 29 Apr 2009 | 11:46 am

Women arrested over suspected £18m pyramid scheme

Thousands of people paid up to £3000 each to join the scheme it is alleged.
Source: Telegraph Finance | 29 Apr 2009 | 11:43 am

Germany slashes growth forecast

The German government predicts its economy will shrink by 6% this year, dramatically downgrading its previous forecast.
Source: BBC News | Business | World Edition | 29 Apr 2009 | 11:34 am

Readers grade Obama: He's 'a lot of talk'

Source: Business and financial news - CNNMoney.com | 29 Apr 2009 | 11:34 am

Bank of America chief executive Ken Lewis faces vote by angry shareholders

Major investors are pushing to force him out at the AGM in protest at the Merrill Lynch deal.
Source: Telegraph Finance | 29 Apr 2009 | 11:28 am

The fund that's up 68pc in a month

Despite the gloom several investment funds have delivered astonishing returns in just a month.
Source: Telegraph Finance | 29 Apr 2009 | 11:18 am

European stocks climb, shrug off swine flu worries (AFP)

AFP - Europe's main stock markets won back ground on Wednesday as investors shrugged off swine flu concerns following news of resurgent economic confidence in the recession-hit eurozone.

Source: Yahoo! News: Stock Markets News | 29 Apr 2009 | 11:12 am

Microsoft's antitrust charges

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 29 Apr 2009 | 11:08 am

Economic woes may speed Asian deforestation

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 29 Apr 2009 | 11:06 am

SocGen's Bouton yields to scapegoat status

What will Nicolas Sarkozy do without Daniel Bouton to kick around?
Source: Telegraph Finance | 29 Apr 2009 | 11:05 am

Time Warner profit holds steady

Read full story for latest details.
Source: Business and financial news - CNNMoney.com | 29 Apr 2009 | 11:03 am

Time Warner profits fall on advertising slump

Media group reported a 14 per cent decline in quarterly net profit, sunk by a drop in online and print advertising
Source: Financial Times - US homepage | 29 Apr 2009 | 10:39 am

Media Slowdown Catches Up With Time Warner (TWX)

The advertising recession caught up with Time Warner (TWX) in the first quarter. Revenues declined 7% from 2008 to $6.9 billion, due mainly to decreases at the AOL, Publishing and Filmed Entertainment segments, offset partially by an increase at the Networks segment. The company’s net income fell slight to $690 million from $822 million. Cost cutting must [...]

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Source: 24/7 Wall Street | 29 Apr 2009 | 10:25 am

Alistair Darling defends 50pc tax on high earners

Chancellor told a gathering of business leaders that those with the "broadest shoulders" must pay their share.
Source: Telegraph Finance | 29 Apr 2009 | 10:22 am

Darling: 'Broadest shoulders' must carry burden

Alistair Darling today stood by forecasts that the UK economy will return to growth by the end of the year as well as a decision to raise high earners' tax to 50 per cent, stating that those with “broadest shoulders” should share more of the burden.


Source: Latest Business News from Times Online | 29 Apr 2009 | 10:22 am

Darling defends 50% top tax rate

Chancellor Alistair Darling defends his decision to increase the top rate of income tax to 50%, saying it is a fair move.
Source: BBC News | Business | World Edition | 29 Apr 2009 | 10:21 am

Punch Taverns denies rights issue plans as debts reduced

Britain's biggest pub landlord Punch Taverns said it isn't planning a rights issue to reduce debt and slid to a firsthalf loss after writing down the value of its properties.
Source: Telegraph Finance | 29 Apr 2009 | 10:05 am

HMV unveils Orange tie-up as sales surge

HMV today revealed a tie-up with Orange to sell its phones in-store after promising full year profits at the "upper end of expectations."


Source: Latest Business News from Times Online | 29 Apr 2009 | 10:04 am

Based On Bad Earnings, Could Oracle (ORCL) Walk Out On Sun (JAVA)

The term “material adverse effect” was not in the business vocabulary until about two years ago when LBO deals began to fall apart. Acquirers who got cold feet, or could not get bank financing because of the credit crisis, would say that their buyout targets had become damaged goods because of bad earnings or loss [...]

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Source: 24/7 Wall Street | 29 Apr 2009 | 10:03 am

E*TRADE: Higher Loan Loss Reserves & Capital-Raise Needs (ETFC)

E*TRADE FINANCIAL Corporation (NASDAQ: ETFC) has just reported a net loss of $233 million, or -$0.41 EPS, on revenue of $497 million.   E*TRADE has fewer analysts than before, but Thomson Reuters showed estimates at -$0.40 EPS.  While there are many positive developments, the real issues come down to the company’s increased allowance for loan loss [...]

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Source: 24/7 Wall Street | 29 Apr 2009 | 9:54 am

If Six “Stress Tested” Banks Need Money, Sell-Off Will Begin (BAC)(C)

Bloomberg reports that six of the 19 banks that went through the government’s “stress test” program will need to raise more capital. That list probably includes Citigroup (C) and Bank of America (BAC).  According to Reuters, Vikram Pandit of Citi and Ken Lewis of B of A could lose their jobs when the final data comes out. [...]

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Source: 24/7 Wall Street | 29 Apr 2009 | 9:49 am

World markets rally as swine flu fears diminish (AP)

AP - World stock markets rallied Wednesday after better-than-expected U.S. data fueled hopes that the world's largest economy was showing tentative signs a recovery is imminent and fears faded — for now — over the economic impact of a possible swine flu pandemic.

Source: Yahoo! News: Stock Markets News | 29 Apr 2009 | 9:43 am

The Importance Of Paying Citigroup (C) Bankers Bonuses

Citigroup (C) has gone to the Treasury to beg for bonuses for some of its most important traders, people who make the banks extraordinary amounts of money. The Treasury’s reaction will probably be that it wants to stay out of a fight with Congress and avoid negative public opinion and will turn the request down. That [...]

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Source: 24/7 Wall Street | 29 Apr 2009 | 9:31 am

Societe Generale chairman resigns

Societe Generale's chairman Daniel Bouton resigns, saying the personal attacks against him risked "harming the bank".
Source: BBC News | Business | World Edition | 29 Apr 2009 | 9:21 am

More Self-Mutilation At Microsoft (MSFT) May Hold Key To Success (AAPL)(RIMM)(GOOG)

Microsoft (MSFT) has never had much success in the businesses of creating and marketing hardware. Why should it? Microsoft is the world’s largest software company.  The firm has tried to become the GE of technology for over a decade; a conglomerate in several loosely related businesses that support one another even if that support is [...]

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Source: 24/7 Wall Street | 29 Apr 2009 | 9:06 am

Acer profits hit by falling sales

Acer, the world's third-largest maker of personal computers sees its profits slump by almost a third due to falling sales in the global recession.
Source: BBC News | Business | World Edition | 29 Apr 2009 | 9:00 am

FTSE 100 shares advance (AFP)

AFP - Shares in London rose slightly in opening trade Wednesday led by the banking sector and miners.

Source: Yahoo! News: Stock Markets News | 29 Apr 2009 | 8:59 am

North Korea threatens fresh nuclear tests

North Korea has threatened to conduct a nuclear test and to test an intercontinental ballistic missile unless the UN Security Council apologises for imposing sanctions against it
Source: Financial Times - US homepage | 29 Apr 2009 | 8:58 am

Abbey's profits up by a quarter

Financial group Abbey announces an increase in profits of more than a quarter for the first three months of this year.
Source: BBC News | Business | World Edition | 29 Apr 2009 | 8:57 am

LDV applies for administration 850 jobs under threat

The move by the troubled van maker owned by Russian oligarch Oleg Deripaska puts 850 jobs at risk.
Source: Telegraph Finance | 29 Apr 2009 | 8:56 am

LDV files for administration in race for funds

More than 500 jobs were at risk this morning after LDV, the struggling British van maker owned by Oleg Deripaska, the Russian oligarch, filed for administration.


Source: Latest Business News from Times Online | 29 Apr 2009 | 8:52 am

Abbey aids UK economy with £2.3bn of lending

The Spanish owned highstreet lender continued to buck the banking trend and help prop up the UK economy in the three months to March.
Source: Telegraph Finance | 29 Apr 2009 | 8:47 am

In pictures

After 83 years, Pontiac nears the end of the road
Source: BBC News | Business | World Edition | 29 Apr 2009 | 8:16 am

SocGen chairman Bouton to resign

Daniel Bouton, the chairman of Société Générale whose reputation was hit by a trading scandal at the French bank, said he would resign in the wake of repeated criticism over his performance.
Source: Financial Times - US homepage | 29 Apr 2009 | 7:29 am

Madoff trading business sold for $25.5 million$

Bernard Madoff's market-making business was yesterday sold off for up to $25.5 million ($£17.4 million) in the latest bid to recover money for the Wall Street fraudster's victims.


Source: Latest Business News from Times Online | 29 Apr 2009 | 7:21 am

Australian stocks: ANZ result pushes market down

MELBOURNE - The Australian share market closed lower on Wednesday after a disappointing first half profit from the ANZ bank weighed upon the financial sector. At the 1615 AEST close, the benchmark S&P/ASX200 index had fallen 13.1...
Source: New Zealand Herald - Business | 29 Apr 2009 | 7:07 am

Profit jumps at DreamWorks Animation

Strong box-office and DVD sales for the latest 'Madagascar' film help first-quarter net income more than double. Revenue climbs 68%. ...
Source: RSS feed - channel BNPaperBusiness | 29 Apr 2009 | 7:00 am

American Express' risk-cutting poses its own risks

What does AmEx want?

Source: L.A. Times - Business | 29 Apr 2009 | 7:00 am

More than 100 private money managers apply for Treasury's toxic assets plan

The public-private investment program calls for fund managers to partner with the government to buy banks' troubled assets. Applicants include Pimco, TCW Group and Western Asset Management. ...
Source: RSS feed - channel BNPaperBusiness | 29 Apr 2009 | 7:00 am

O.C. money manager is arrested on suspicion of evading currency reporting laws

The FBI's arrest of Danny Pang, who allegedly sought to hide more than $300,000 in cash from the government, comes one day after he is accused of bilking investors of hundreds of millions of dollars.

Orange County money manager Danny Pang, accused this week of defrauding investors out of hundreds of millions of dollars, was arrested Tuesday by FBI agents on suspicion of evading currency reporting laws.

Source: L.A. Times - Business | 29 Apr 2009 | 7:00 am

Tougher mortgage rules often leave condo sellers in a bind

Lenders are forced to examine the makeup of entire complexes before extending loans to buyers or approving refinancings. The greater scrutiny is making it tougher to buy and sell condos. ...
Source: RSS feed - channel BNPaperBusiness | 29 Apr 2009 | 7:00 am

O.C. money manager is arrested on suspicion of evading currency reporting laws

The FBI's arrest of Danny Pang, who allegedly sought to hide more than $300,000 in cash from the government, comes one day after he is accused of bilking investors of hundreds of millions of dollars. ...
Source: RSS feed - channel BNPaperBusiness | 29 Apr 2009 | 7:00 am

Tesla S: a model citizen

As I situate myself in the driver's seat of Tesla's Model S show car -- a working model of the future-chic, fast-backed electric sedan upon which the Silicon Valley automaker now depends -- I think of...
Source: RSS feed - channel BNPaperBusiness | 29 Apr 2009 | 7:00 am

Chrysler's major bondholders slash its debt

The debt reduction, coupled with the expected approval today of a new union contract, clears the way for the struggling automaker to be bought by Fiat. ...
Source: RSS feed - channel BNPaperBusiness | 29 Apr 2009 | 7:00 am

Tesla S: a model citizen

As I situate myself in the driver's seat of Tesla's Model S show car -- a working model of the future-chic, fast-backed electric sedan upon which the Silicon Valley automaker now depends -- I think of all the electric-car peaceniks who would gladly throttle me to take my place as the first person outside the company to drive the car. It's a pleasant thought.

Source: L.A. Times - Business | 29 Apr 2009 | 7:00 am

American Express' risk-cutting poses its own risks

What does AmEx want?
Source: RSS feed - channel BNPaperBusiness | 29 Apr 2009 | 7:00 am

Cruise lines suspend stops in Mexico

To avoid docking in the country where the swine flu outbreak began, world's biggest cruise lines route ships to other ports, such as San Diego or Santa Catalina Island, or spend more time at sea. ...
Source: RSS feed - channel BNPaperBusiness | 29 Apr 2009 | 7:00 am

U.S. home prices continue to drop in February

A key index shows an 18.6% decline from the same month a year ago. The Los Angeles area records a fall of 24%.

There was more bleak housing news as U.S. home prices continued to fall in February, according to a widely followed index released Tuesday.

Source: L.A. Times - Business | 29 Apr 2009 | 7:00 am

China relaxes business regulations

Environmental, copyright and labor advocates bristle at the looser rules meant to help companies through the economic downturn.

During hard economic times, American businesses often implore government to ease up on regulations to help them survive. In China, officials are more than happy to oblige.

Source: L.A. Times - Business | 29 Apr 2009 | 7:00 am

Cruise lines suspend stops in Mexico

To avoid docking in the country where the swine flu outbreak began, world's biggest cruise lines route ships to other ports, such as San Diego or Santa Catalina Island, or spend more time at sea.

Five of the world's largest cruise lines suspended all stops in Mexico on Tuesday because of the swine flu outbreak, dealing another blow to that country's battered tourism industry.

Source: L.A. Times - Business | 29 Apr 2009 | 7:00 am

CalPERS stands up to Bank of America management

Pension fund says it will vote to oust all 18 directors. The symbolic move could unite other shareholders upset about BofA's takeover of Merrill Lynch. ...
Source: RSS feed - channel BNPaperBusiness | 29 Apr 2009 | 7:00 am

Chrysler's major bondholders slash its debt

The debt reduction, coupled with the expected approval today of a new union contract, clears the way for the struggling automaker to be bought by Fiat.

Chrysler's path to recovery cleared a major roadblock ahead of Thursday night's government-imposed deadline when the struggling automaker's largest bondholders agreed to significantly reduce its debt.

Source: L.A. Times - Business | 29 Apr 2009 | 7:00 am

Profit jumps at DreamWorks Animation

Strong box-office and DVD sales for the latest 'Madagascar' film help first-quarter net income more than double. Revenue climbs 68%.

DreamWorks Animation SKG Inc., citing strong box-office and DVD sales from its sequel "Madagascar: Escape 2 Africa," said first-quarter net income more than doubled to $62.3 million, or 71 cents a share.

Source: L.A. Times - Business | 29 Apr 2009 | 7:00 am

U.S. home prices continue to drop in February

A key index shows an 18.6% decline from the same month a year ago. The Los Angeles area records a fall of 24%. ...
Source: RSS feed - channel BNPaperBusiness | 29 Apr 2009 | 7:00 am

Software sales fall by a third at SAP

The German software group reported sales of new software in the first three months of the year fell by a third while maintenance revenues were flat as the recession dented companies' appetite for new computer products
Source: Financial Times - US homepage | 29 Apr 2009 | 6:53 am

NZ stocks: Telecom edges ahead

Leading stock Telecom continued to edge ahead on good volume in a steady-as-she-goes market ahead of the Reserve Bank of New Zealand's interest rate decision tomorrow. The benchmark NZSX-50 index rose 13.27 points, or 0.494 per...
Source: New Zealand Herald - Business | 29 Apr 2009 | 6:17 am

Tougher mortgage rules often leave condo sellers in a bind

Lenders are forced to examine the makeup of entire complexes before extending loans to buyers or approving refinancings. The greater scrutiny is making it tougher to buy and sell condos.

Benjamin Chiang nearly lost the chance to refinance his condominium when his lender discovered that many other people in the building were behind on their condo association dues.

Source: L.A. Times - Business | 29 Apr 2009 | 5:54 am

Ex-Citi Asia chief launches $1bn fund

Robert Morse, Citigroup's former top executive in Asia, has resurfaced to unveil a $1bn fund focused on acquiring banking and insurance assets across the region
Source: Financial Times - US homepage | 29 Apr 2009 | 5:52 am

Currency: Dollar gains on positive data

The New Zealand dollar rose today on a combination of positive economic data and traders cutting out positions. The focus is turning to the Reserve Bank of New Zealand's official rate decision tomorrow and there was some positive...
Source: New Zealand Herald - Business | 29 Apr 2009 | 5:34 am

U.S. expanding foreclosure prevention plan

The new measures include incentives to lenders to modify second mortgages and write down balances on first mortgages that are underwater.

The Obama administration, stepping up efforts to stem foreclosures, will offer lenders and homeowners incentives to cut payments on second mortgages, write down balances on first mortgages that are underwater, and repay loans in a timely fashion.

Source: L.A. Times - Business | 29 Apr 2009 | 5:22 am

Fed seen holding rates and policy steady

WASHINGTON (Reuters) - With signs the deep U.S. economic swoon may be easing, Federal Reserve policy makers appear ready to hold off new measures to flood the economy with money while keeping interest rates steady near zero on the final day of a two-day meeting on Wednesday.
Source: Reuters: Business News | 29 Apr 2009 | 4:25 am

Fed seen holding rates and policy steady (Reuters)

Reuters - With signs the deep U.S. economic swoon may be easing, Federal Reserve policy makers appear ready to hold off new measures to flood the economy with money while keeping interest rates steady near zero on the final day of a two-day meeting on Wednesday.
Source: Yahoo! News: Business | 29 Apr 2009 | 4:25 am

Business confidence up in April - biggest rise since 2000

Business confidence showed a marked improvement in April, according to the latest National Bank Business Outlook survey. Overall, a net 15 per cent of respondents expect a deterioration in business conditions in the year ahead....
Source: New Zealand Herald - Business | 29 Apr 2009 | 4:00 am

The Bailout Bonanza (Tough Customer)

The banks were too big to fail. The auto industry, with its 3 million jobs, couldn't be left to die. But what about the sheep? The folks at the American Sheep Industry Association, which represents more than 70,000 sheep and lamb producers, recently asked the Feds to help it through the recession by making a $2 million "meat purchase."

And why not? According to the association's own analysis, sheep play a key role in the economy. The industry produces a half-billion dollars in meat, wool, milk and breeding stock every year -- not to mention the $9.4 million market for whole, frozen sheep heads. ("My understanding is they are exported to Mexico," says association head Burdell Johnson.) And according to the sheep lobby, all this production has a magical multiplier effect.

Every sheep-industry dollar adds $2.80 to the economy, while every 25 new sheep-farm jobs means an additional 36 jobs in related industries like meatpacking -- and frozen-head exports.

Sound far-fetched? With trillions in new government spending flooding the economy, folks from every industry -- helicopter makers, state foresters, dentists -- are making similar arguments, sometimes with amusing results. In its effort to insert frat-house construction tax breaks into the stimulus bill, for instance, the Fraternity and Sorority Political Action Committee noted that the measure would create jobs because frat-house sprinkler systems "are usually manufactured inside the U.S."

Indeed, no one can resist the lure of free money. A few days after the sheep industry made its request, Tina Straley, executive director of the Mathematical Association of America, in Washington, D.C., posted a plea on her organization's Web site: "Urgent: Contact your Congressman to support math funding in stimulus package." It's the math-based professions -- science and engineering -- that keep our country competitive, she explained later that day. Besides, the recession was created by folks who thought we could keep spending more than we earn, "which just shows that people need more mathematics!"

Across town, Mike Paranzino, founder of the nonprofit Psoriasis Cure Now, was flummoxed at the prospect of competing for a slice of the $787 billion pie. "The asphalt lobbyists, honeybee lobbyists, the union folks -- it's a free-for-all," he said. Still, he wasn't having trouble making a case for his cause. "Anything that generates economic activity is now deemed good," he says. His pitch: Health research is "shovel ready," meaning that scientists with proposals are standing by. "The honeybee guys, I'm sure they're Oshovel ready' too," Paranzino concedes. "It's the phrase of the moment."

As various interests strained to prove their shovel-readiness, a civil war was breaking out in the paving industry over who would take on the $27.5 billion highway reconstruction. The Asphalt Pavement Alliance introduced a new study, "Asphalt Pavement: Meeting the Challenge for America," which bragged about asphalt's low cost and fast prep times compared with concrete's. The Portland Cement Association fought back with "Concrete Stimulus: The Foundation of a Lasting Recovery," which warned of a looming asphalt shortage.

And 2,300 miles beyond the Beltway, Dennis Hof, proprietor of the Moonlite BunnyRanch in Carson City, Nev., was planning a trip. While his high-profile bordello was doing fine, the state's legal prostitution business was struggling, so why not seek assistance? "The girls need new hair extensions and tattoo touch-ups," he says. He'll be driving a pink-wrapped Prius to Washington, where he will march on Capitol Hill and demand a $1 billion aid package. It's just for a laugh, but he's not sure his request is any more absurd than the bailouts he's already seen. "It's ridiculous," he says.

"What happened to old-fashioned bankruptcy? I don't like it. I don't like it at all."

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 29 Apr 2009 | 4:00 am

Swine Flu Makes Forex a Sucker's Bet (On the Street)

Among the immediate lessons to be learned from the market's reaction to the swine flu outbreak is that currency trading is a sucker's bet for average investors. The massive 24-hour global currency markets move so quickly and so relentlessly that foreign exchange trades are really best left to the professionals.

Case in point: The U.S. dollar rose sharply Monday on fears the swine flu that originated in Mexico could become a global epidemic. That's not a surprise. The almighty dollar -- like Treasurys and gold -- is seen as a safe haven in times of distress. The Mexican peso, naturally, sold off.

Cut to Tuesday and the trade was over. The dollar fell and the peso gained ground. So what happened? Partly it's that the currency markets had a knee-jerk reaction to the flu news and got ahead of themselves, says Michael Woolfolk, senior currency strategist at Bank of New York Mellon.

"This is not yet a pandemic," says Woolfolk, "and a lot of things are going to have to happen before we get there. The correction set in Tuesday and we need further confirmation that it is indeed a pandemic before trading it like a pandemic."

Take it as a textbook example of one of the more dangerous pitfalls for amateur forex traders: Currency markets have very, very short attention spans. Tuesday's better-than-expected consumer confidence and housing data made Monday's swine-flu trade old news. And even more pressing is what's on deck Wednesday, says Woolfolk, noting that the Fed decision and first-quarter GDP report offer enough risk to make taking profit on the dollar's recent run a fairly easy decision.

As we’ve said before, forex trading is perilous. Indeed, as the North American Securities Administrators Association cautions: "Even when purchased through the most reputable dealer, forex investments are extremely risky."

The global currency market averages more than $3 trillion in turnover a day, according to the Bank for International Settlements, the central bank for the world's central banks, equivalent to roughly a quarter of U.S. GDP. Meanwhile, just a scant 5% of that turnover is due to foreign trade. The rest comes from speculation by professional traders. Dip a toe in these waters and you are swimming with sharks.

As for the trading itself, it's frenzied and complicated. Currencies trade in pairs, as in you buy dollars and sell euros (or yen, or pesos, or some other currency) simultaneously, betting on relative outcomes that are influenced by a varied and global list of factors.

Trade balances, central bank interest rates, domestic and foreign policy statements, and, yes, swine flu -- if you thought day-trading stocks was tricky, the level of unpredictability here is of another order.

If you must dabble in forex, you're better off with an exchange-traded fund such as the Rydex CurrencyShares trusts. If you want to bet on the resurgence of the Mexican peso (the 12th-most-traded global currency) try the Rydex CurrencyShares Mexican Peso (FXM) ETF. True, it tumbled more than 4% Monday, but year to date it's still beating the broad market by a good three percentage points.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 29 Apr 2009 | 4:00 am

Sizing Up Digital Music Deals (Deal of the Day)

Music fans know that they can rely on iTunes to find the latest hits, but they can't rely on it for the best prices. In fact, now that Apple (AAPL) and other online music stores like Amazon's (AMZN) and Wal-Mart's (WMT) have jacked up prices for popular songs and albums, it may be time to take your digital tune shopping elsewhere.

Earlier this month, Apple started varying the prices it charged for its songs, moving from a flat rate of 99 cents per download to tiers that span from 69 cents for older and niche music to $1.29 for the most downloaded and popular songs. Amazon and Wal-Mart soon followed -- raising prices for the most popular music to $1.29 and $1.24, respectively.

“They’re taking advantage of Americans’ appetite for downloading,” says Andrea Belz, an independent technology consultant based in Pasadena, Calif. Consumers spent $2.6 billion on digital music last year, roughly $1 billion of which went toward individual song downloads, according to the Recording Industry Association of America.

Initially, such downloads were considered a great value for those who wanted a song or two without paying the full $20 for the entire album in stores. But with higher prices for the songs music fans love the most, downloading music has become a much less financially-savvy proposition. And while opportunities to download free music online abound, music lovers need to be careful. Everyone from Internet service providers to the Recording Industry Association of America have been cracking down on consumers who violate copyright law by downloading music over peer-to-peer file sharing sites.

For cheap -- and legal -- ways to expand your digital music library, try these options:

Subscription services

At just $13 a month for unlimited downloads to your computer at Rhapsody or Napster, music subscription services can save those who typically download 15 or more songs a month a healthy chunk of change. But there is a catch: You’re essentially borrowing the music, which means you’ll lose it all when you stop paying for the service. (Napster tries to counterbalance this by letting you purchase tracks at discounts of up to 20%.) With both services, you'll also have to pay an extra $3 a month if you want to play your songs on a compatible MP3 player. And it must be a Rhapsody- or Napster-compatible player, like the Haier Rhapsody ibiza ($199 for a 4GB model) or Creative Zen X-Fi ($130 for an 8GB model) for Napster. So be sure you like the players that work with the service before you sign on, says Paul Verna, senior analyst for eMarketer, a market researcher specializing in e-commerce.

Bottom line: If you like the latest hits but often abandon one band for the next big thing, subscription services may be the best deal for you, says Verna. In the short term, you get total control over your playlist, but don’t have to purchase a lot of songs that you may end up deleting months down the road.

Free Internet radio

Internet radio stations like Slacker Radio, Pandora Internet Radio, SHOUTCast and Jango, offer a range of music genres without charging you a dime. Users can customize stations or create their own by requesting artists and songs, and then rating the playlist. On Jango, for example, you can request that a song be played a little, a lot, or never again. Over time, the services tailor suggestions to your taste.

The tradeoffs: Besides the fact that you never have full control over what's played and when, you'll also need to endure some advertising. To keep stations free, the web sites intersperse songs with ads. While you can sign up to pay for ad-free music -- Slacker charges $4 per month -- weigh the costs and benefits against those of a subscription service first, says Heather Polinsky, an assistant professor at Central Michigan University’s School of Broadcast & Cinematic Arts. It may be more worthwhile to pay the $13 a month for Rhapsody and have a little more control over your playlist.

One more helpful tip: Skip out on buying the pricey hardware that picks up Internet radio stations. (A 4GB handheld player from Slacker costs $200, while Pandora and Logitech offer home receivers that start at $300.) You’re better off downloading the sites’ free cellphone applications, which use a phone’s Internet connection to sync with an online account. Slacker has one for BlackBerry phones. Pandora also has versions for the iPhone and other smartphones.

Try Price Comparison Search Engines

If you have a burning desire to own your music and carry it with you everywhere you go, do some comparison shopping first. DownloadShopper.com tells you which of the big three -- iTunes, Amazon or Wal-Mart -- offers downloads at the cheapest price. Rihanna’s "Don’t Stop the Music,” for example, comes up as $1.29 at iTunes, 99 cents at Amazon and 94 cents at Wal-Mart. You’d save 35 cents by downloading the song from Wal-Mart's.

Also check for weekly free songs on the various sites, advises Polinsky. This week’s freebie may be next month’s hot new song. In 2007, for example, iTunes offered Amy Winehouse’s “You Know I’m No Good” shortly before the singer became popular in the United States.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 29 Apr 2009 | 4:00 am

Futures Rise Ahead of Q1 GDP Report (Market Update)

News at a Glance

• Fed Day: FOMC to release policy statement at 2:15 p.m.
• GDP Data Coming: Q1 reading on growth due at 8:30 a.m.
• Futures Rise: Stocks look to open higher before reports.
• Century Mark: Obama marks first 100 days in office.

The Lowdown

Traders appeared ready to give the market a boost Wednesday ahead of a report expected to show the recession easing.

Stocks looked to open higher, as Wall Street awaited the release of the first-quarter gross domestic product, one of the most popular gagues of economic growth or contraction. Shortly before 7:45 a.m., Dow, Nasdaq and S&P 500 futures were trading above fair value.

The first-quarter reading of the GDP's annual rate of growth is widely expected to have declined again, but the fall is expected to have slowed from the fourth quarter. Signs that the recession may be easing have been coming from various economic indicators over the last month, but the GDP is considered by most economists to be the arbitor of indicators, the best signal of the bunch.

Later this afternoon, the Federal Reserve will release its statement on interest rates. The Fed is almost certain to hold the federal funds rate steady at between 0.00% and 0.25%, but investors will be watching the language of the statement closely for clue about when the Fed's pro-growth campaign might come to an end, particularly in light of the GDP report.

Earnings were a mixed bag. Time Warner (TWX) saw its first-quarter profit fall 14% but reaffirmed its guidance for the rest of the year. Siemens (SI) beat estimates after some belt-tightening but lowered its 2009 outlook. Royal Dutch Shell (RDS.A) saw its net income fall 62% as oil prices fell on declining global demand.

The swine flu may have faded from traders' radar, but the virus remains a threat. The disease claimed its first life in the U.S., a 23-month-old child in Texas whose death was confirmed Wednesday by Dr. Richard Besser, acting director of the Centers for Disease Control and Prevention.

In Washington, President Barack Obama will mark his 100th day in the White House. The first three months of Obama's tenure have been among the most volatile in history. Since his arrival in Washington, the President has been charged with leading the nation out of a recession, brokering a deal to save the auto industry, keeping the nation's financial institutions afloat, navigating the diplomacy of a Korean missile test and guiding a coordinated response to a potential pandemic. He also met with the NCAA champion University of Connecticut women's basketball team and got a dog.

On the Nymex, oil prices advanced early. By 7:23 a.m., crude traded up 82 cents at $50.74 a barrel.

World markets were mixed. In Asia, Japan's Nikkei finished down 2.7%, while Hong Kong's Hang Seng finished up 2.8%. In Europe, the U.K.'s FTSE rose 1.4% in afternoon trading.

Corporate News

• Citigroup (C), one of the largest beneficiaries of federal bailout money, is looking for permission from the U.S. Treasury to pay out bonuses to many of its employees, The Wall Street Journal reported, citing anonymous sources. Citi executives said the bonuses are intended to keep employees happy enough to refrain from leaving for a higher paying firm. The Journal appeared to suggest that some of bonus money might be used to retain employees at Citi's energy-trading unit, Phibro.
• Microsoft (MSFT) and Verizon (VZ) are working on a touch-screen smart phone to compete against the Apple (AAPL) iPhone, The Wall Street Journal reported. Verizon is also seeking to partner with other hardware developers in a bid to take on AT&T (T), the exclusive service provider of the iPhone in the U.S.
• ArcelorMittal (MT), the world's largest steelmaker, missed first-quarter estimates for net income as demand for construction and manufacturing materials fell sharply. The firm posted an 82% drop in EBITDA (earnings before interest, tax, depreciation and amortisation) to $883 million, shy of the $1.0 billion projected by analysts.

The Economy

• The advanced first-quarter reading of the gross domestic product is scheduled to be released at 8:30 a.m. by the Commerce Department. In the fourth quarter of last year, the GDP fell at an annual rate of 6.3%. For the first quarter, economists expect the GDP to have fallen at an annual rate of 4.7%.
• The crude inventories report for last week is scheduled to be released at 10:30 a.m. by the Energy Department. In the prior week, inventories remained above the upper limit of the average range for this point in the year.
• The Federal Reserve is scheduled to hand down its statement on monetary policy at 2:15 p.m. The Fed is widely expected to leave the target for the federal funds rate at its record low of between 0.00% and 0.25%. When the Fed last met on March 18-19, the group called the near-term outlook "weak" but said policy and fiscal and monetary stimulus should eventually cleave a path back to economic growth. The Fed's next meeting on monetary policy is scheduled for June 23-24.

SMARTMONEY ® Layout and look and feel of SmartMoney.com are trademarks of SmartMoney, a joint venture between Dow Jones & Company, Inc. and Hearst SM Partnership. © 1995 - 2009 SmartMoney. All Rights Reserved.

Source: SmartMoney.com | 29 Apr 2009 | 4:00 am

Stock Screens in a Can (Screens)

Passive investors pooh-pooh the idea of stock screening, or searching the vast universe of stocks for ones with promising attributes like modest valuations and fat dividend yields. They believe stock pickers can’t consistently beat the market, so there’s little point in hunting for winners. Better to own shares of an index fund that seeks to mimic the market as a whole.

And yet, passive investors are screening whether they know it or not. No index tracks all stocks. All make choices. For example, the S&P 500, by far the most widely tracked stock index, selects the 500 American companies that cost the most in terms of the sum value of their outstanding shares.

Index funds make excellent sense for most investors. Their fees are typically low, their taxes are minimal and they’re blessedly easy. As the man selling rotisserie ovens on television says, "Just set it and forget it." The question is, since the index fund buyer is running an automated stock screen anyhow, might they be better off screening for something other than expensiveness?

That’s just what so-called fundamental indexes seek to offer. They range from simple to complex. On the simple side, WisdomTree (WSDT) offers exchange-traded funds that redefine company size as the amount of earnings produced or dividends paid, not the market price investors are paying at the moment. Its Earnings 500 fund (EPS) therefore has a lower price/earnings ratio than the S&P 500 index, while its Large Cap Dividend fund (DLN) has a bigger dividend yield (3.7% compared with the S&P 500‘s 2.6%, after taking into account recent dividend cuts).

More complicated is the Dynamic Market Portfolio (PWC), sort of a full stock-screen-in-a-can offered by Invesco’s Powershares. It periodically scans the 2,000 largest companies for the 100 most attractive based on 25 attributes. Powershares won’t say what these are exactly, but only that they have to do with company fundamentals, stock valuation, timeliness and risk.

Perhaps in between these approaches are the RAFI (Research Associates Fundamental Index) ETFs, also run by Powershares (Schwab offers the mutual fund versions). The RAFI approach, developed by Robert Arnott, former editor of the prestigious Financial Analysts Journal, weights companies by four measures of economic importance: cash flow, sales, book value and dividends.

So how are the one-step stock screens doing? Mostly, they haven't impressed of late. Perhaps that's because while stocks with skimpy valuations usually outperform in a down market, they’ve sharply underperformed during the extreme downturn of the past year. Those modest prices usually signal company flaws, and in a bad enough economy, some otherwise manageable flaws can sink companies.

I’ve only highlighted U.S. funds, but there are international choices, too. WisdomTree says 13 of its 14 international funds have beaten their benchmarks since inception. It’s a young company, though, so that’s only a couple of years -- we’ll see.

All told, recent returns might not be representative of future ones, as the fine print usually says, only this time it’s meant hopefully. Cheap stocks have taken such a beating over the past year that value itself might be something of a value now, and fundamental indexes might be due to outperform.