The PremiereTrade Market Wrap for 10/18/07

The number of newly laid off workers filing claims for unemployment benefits shot up by the largest amount since early February. The Labor Department reported that applications for jobless benefits hit 337,000 last week, an increase of 28,000 from the previous week.

The Conference Board said slow growth could continue into the early months of 2008, reporting that a gauge of future economic growth rose 0.3% in September. Seven of the 10 leading economic indicators increased in September, with the largest positive contribution from slow vendor performance.

Wal-Mart Stores Inc. (WMT), the world's largest retailer, said it will reduce prices this week on 15,000 items ahead of the holiday season, increasing cuts by 20 percent compared with last year. Wal-Mart previously made similar price cuts on back-to-school items in July and on toys earlier this month.

Walt Disney Co. (DIS) announced that it is planning a major overhaul of its troubled California Adventure park near its cornerstone Disneyland Park in Anaheim, Calif., and indicated the entire facility may be renamed. According to news reports, the overhaul would cost $1.1 billion and take five years to complete.

Apple Inc. (AAPL) Chief Executive Steve Jobs said that the company will soon make it possible for third-party developers to build their own applications for use on the iPhone. Jobs said that Apple would make a software development kit available sometime in February for developers to write programs for the iPhone and the iPod touch digital media player.

In Earnings News

Bank of America (BAC) said net income fell 32 percent to $3.70 billion, or 82 cents a share. That fell short of estimates of $1.06 a share.

Washington Mutual (WM) reported net income fell 72 percent to $210 million, or 23 cents a share, from $748 million, or 77 cents a share, a year earlier.

Pfizer Inc. (PFE) said third-quarter profit fell 77 percent on costs for discontinuing the diabetes treatment Exubera.

Southwest Airlines Co. (LUV) said net income for the quarter rose to $162 million, or 22 cents per share. Analysts expected 21 cents.

Continental Airlines (CAL) reported a net profit of $241 million, or $2.15 per share.

Nokia (NOK) reported a near-doubling of its third-quarter earnings and a larger share of the global handset market.

Scheduled Economic Reports (Friday)

None Scheduled

Scheduled Earnings Reports (Friday)

Xerox, McDonalds, Burlington Coat Factory, 3M, Alltel, Overstock.com, Caterpillar, Fifth Third Bank, Boston Scientific

Stocks in the News

EBay Inc (EBAY) reported it swung to a loss in the third quarter due to a charge related to its acquisition of Skype in 2005.

Labor Ready Inc?s (LRW) third-quarter net income fell 8.5% to $22.7 million, or 51 cents a share, from $24.8 million, or 48 cents a share, a year earlier.

Packaging Corp pf America (PKG) said its third-quarter net income rose to $48.7 million, or 46 cents a share, compared with $43.6 million, or 42 cents a share, a year ago.

The PremiereTrade Market Wrap for 10/17/07

U.S. economic activity has slowed over the six weeks, according to the latest Beige Book report on current economic conditions released by the Federal Reserve. Anecdotal reports from the 12 Fed districts "suggest economic activity continued to expand in all districts in September and early October but the pace of growth decelerated since August."

Prices paid by U.S. consumers rose more than forecast in September as food and energy costs climbed, while core measures showed inflation remains contained. The 0.3 percent increase followed a 0.1 percent decline in August prompted by falling oil prices. The core CPI rose 0.2 percent for a second month, in line with forecasts.

U.S. home builders continued to cut back construction in September, starting construction on the fewest number of new homes in more than 14 years. Housing starts fell 10.2% to a seasonally adjusted annual rate of 1.19 million, the lowest since 1.32 million in March 1993.

The International Monetary Fund lowered its projection for the global expansion next year to 4.8 percent in its semiannual World Economic Outlook, from an estimate of 5.2 percent in July. A weaker outlook for the U.S. was mostly to blame, as the fund reduced its forecast to 1.9 percent, from 2.8 percent.

The government announced that starting in January; Social Security benefits for nearly 50 million Americans are going up 2.3 percent, the smallest increase in four years. It will mean an extra $24 per month in the average check.

In Earnings News

Altria Group Inc. (MO), the world's largest tobacco company, said profit exceeded analysts' estimates on higher cigarette prices and top-selling Marlboro's growing share of smokers. It raised its full-year forecast. Third-quarter profit adjusted for Altria's spinoff of Kraft Foods Inc. increased 19 percent to $2.63 billion, or $1.24 a share.

Coca-Cola Co. (KO), said income increased 13 percent to $1.65 billion, or 71 cents a share. Sales jumped 19 percent to $7.69 billion.

JPMorgan Chase & Co. (JPM) reported income increased to $3.4 billion, or 97 cents a share, in the third.

United Technologies Corp.'s (UTX) said earnings rose to $1.2 billion, or $1.21 a share, up from $996 million, or 99 cents, earned in the year-ago period.

Gannett Co. (GCI), reported earnings fell 11 percent, as revenue slipped from a year-ago period boosted by spending on political advertising. Analysts expected profit of $1 per share.

Intel Corp.'s (INTC) soaring sales of microprocessors helped the company overcome flat prices for those chips and reap a 43 percent boost in profits in the third quarter.

Scheduled Economic Reports (Thursday)

Initial Jobless Claims (Week of October 13), Leading Indicators (Sep), Philly Fed Index (Oct)

Scheduled Earnings Reports (Thursday)

Bank of America, Dow Jones, Pfizer, Advanced Micro Devices, Hershey, Capital One, Eli Lilly, Southwest Airlines

Stocks in the News

CSX Corp (CSX) posted a third-quarter profit of $407 million, or 91 cents a share.

IBM (IBM) reported a third-quarter profit from continuing operations of $2.36 billion, or $1.68 a share, on $24.12 billion in revenue.

Apple Inc (AAPL) said that it cut the price of its iTunes Plus tracks to 99 cents each and expanded the iTunes Plus catalog to more than 2 million songs. iTunes Plus music is of higher digital quality and is DRM-free with no personal use restrictions users are accustomed to with the traditional iTunes catalog.

The PremiereTrade Market Wrap for 10/16/07

The Federal Reserve said that industrial output edged up 0.1 percent in September following no change at all in August. With the tiny increase in output in September, the nation's factories, mines and utilities operated at 82.1 percent of capacity, unchanged from August.

The International Council of Shopping Centers-UBS Retail Chain Store Sales Index was up 1.0% in the most current reporting week from its level the week before on a seasonally adjusted, comparable-store basis. Last week, the report was unchanged. On the year, chain store sales were up 2.5% in the week ended Oct. 13th.

Boston Scientific (BSC) is preparing to cut thousands of jobs to counter falling sales. Analysts predict it will cut between 2,000 to 3,400 jobs, or about 7 to 12 percent of its work force of 28,000.

Apple Inc. (AAPL) announced its next-generation operating system, Mac OS X "Leopard," will go on sale Oct. 26 for $129. Apple's online store is taking pre-orders.

Movie Gallery filed for bankruptcy, succumbing to a mountain of debt incurred when it bought rival Hollywood Entertainment for $1 billion in 2005.

In Earnings News

Johnson & Johnson's (JNJ) net earnings dropped 7.7 percent to $2.5 billion from the year-earlier quarter, and diluted earnings per share fell 6.4 percent to 88 cents.

Delta Air Lines Inc. (DAL) said it earned $220 million, or 56 cents a share. Analysts expected 42 cents.

Wells Fargo & Co. (WFC) said net income rose to $2.28 billion, or 68 cents per share. Analysts forecast earnings of 70 cents.

Genentech Inc. (DNA) reported that net profit was $685 million, or 64 cents per share.

Domino's Pizza Inc. (DPZ) reported income fell to $11 million, or 17 cents per share, from $24.5 million, or 39 cents per share in the prior-year quarter.

D.R. Horton (DHI), one of the nation's largest homebuilders, said fiscal fourth-quarter orders fell 39 percent as the housing slump worsened in September following a weak summer. Horton's cancellation rate hit 48 percent.

Scheduled Economic Reports (Wednesday)

Consumer Price Index (Sep), Housing Starts (Sep), Beige Book

Scheduled Earnings Reports (Wednesday)

Altria, Coca Cola, EBay, Abbott Labs, Gannett, E Trade Financial, Allstate, Manpower Inc, Piper Jaffray, and Washington Mutual

Stocks in the News

Steve Madden Ltd (SHOO) expects third-quarter sales to fall 8.3% to $113 million amid a 15% decline in same-store sales.

State Street Corp (STT) reported third-quarter earnings rose 29% on 48% higher revenue, and it said it expects to exceed its targets for earnings.

Adtran Inc's (ADTN) third-quarter net income fell 11% to $21.5 million, or 31 cents a share, from $24.2 million, or 33 cents a share, a year earlier.

The PremiereTrade Market Wrap for 10/11/07

Initial jobless claims dropped by 12,000 to 308,000 in the week that ended Oct. 6th, from a revised 320,000 a week earlier; the four-week moving average, a less volatile measure, decreased by 3,000 from the previous week.

The U.S. trade deficit declined to $57.6 billion in August, down 2.4 percent from the July imbalance. It was lowest gap between exports and imports since January.

Warm weather and an uncertain economy kept consumers out of malls and stores in September, leaving many of the nation's big retailers with disappointing sales for the month and forcing several to cut their earnings forecasts.

The number of foreclosures across the country dropped in September, falling 8 percent from a 32-month high in August. Delinquencies and defaults fell as well.

Countrywide Financial Corp. (CFC), the nation's largest mortgage lender, said its mortgage fundings for the month of September fell 44 percent from the same period a year ago.

The Bank of Japan kept its benchmark interest rate steady after a two-day policy meeting ended amid concerns U.S. credit worries may hurt economic growth in Japan. The central bank's policy board voted to keep a key interest rate unchanged at 0.5 percent. The decision was in line with expectations.

In Earnings News

Wal-Mart (WMT) reported a moderate increase in September sales at its stores open at least a year, but also raised its earnings guidance for its third quarter. .

PepsiCo Inc. (PEP) said its third-quarter profit rose 17 percent on double-digit growth in international sales.

Safeway Inc. (SWY) said its third-quarter profit jumped 12 percent due to cost reductions and strong performance from its newly remodeled stores. The results matched Wall Street analysts' expectations.

Winnebago Industries Inc.'s (WGO) fourth-quarter earnings surged 59 percent, a reflection of increased sales of its larger and higher-profit motor homes.

Scheduled Economic Reports (Friday)

Retail Sales (Sep), Producer Price Index (Sep), Business Inventories (Aug), Consumer Sentiment

Scheduled Earnings Reports (Friday)

General Electric, Pinnacle Financial, United Securities Bancshares

Stocks in the News

Costco Wholesale (COST) reported that fiscal fourth-quarter net income rose 4.7% on 5% higher same-store sales and 3% higher total sales.

Vonage Holdings Corp (VG) said it filed a motion for a court panel to review the decision in its patent litigation with Verizon.

Compellent Technologies (CML) shares rocketed up 79.2% on its IPO day.