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InvestorGuide Daily Newsletter Daily Newsletter — 10/20/2009
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Market Analysis Earnings Upgrades/Downgrades

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If you want to know what was dominating the markets today, read on:

Market Slides

Mixed economic data gave investors a reason to back off of the recent rally on Tuesday. Stocks fell lower even as more earnings reports beat expectations. Disappointment about DuPont (DD) and Coca-Cola's (KO) results appeared to overshadow the other positive reports. Additional pressure was added to the already declining session after the Commerce Department said home building rose less than expected in September. A rebound in the dollar from a 14-month low against other major currencies also hurt stocks by driving down commodity prices. Crude oil lost ground for the first time in a week, falling 52 cents to settle at $79.09 a barrel on the New York Mercantile Exchange. Some of today's big advancers included Apple (AAPL), Caterpillar (CAT), and United Health (UNH). Treasury prices rallied, lowering the yield on the 10-year note to 3.31% from 3.38%.

Sparking Headlines

Everyone wants a bite of Apple (AAPL). Shares of the company soared to a new year high following its earnings report that showed a 47% jump in quarterly profits . Apple's results also topped the estimates of analysts surveyed by Thomson Reuters, who had forecast the company to earn $1.42 a share on revenue of $9.2 billion.

iPhone Shortages "Nice Problem to Have"

The hits just keep coming: now there's a new Apple Remote

Apple to Investors: You're Welcome

Video -- Apple's New iMac

Blackrock (BLK) quarterly results basically mirrored those of Apple (AAPL). The biggest publicly traded US asset manager said third-quarter profit jumped 46 percent on gains from cost-cutting and gains on its own investments.

The Obama administration is still mulling over the first-time home buyer's credit. Should they extend it or should they not? That is the question. The expiration of the credit may be affecting new home construction , which rose last month, but by less than expected.

Video -- Econ Analysis: Housing Starts, PPI

Galleon Group's analysts, portfolio managers and traders are starting to shake in their boots. They are seeking legal advice and brushing the dust off of their resumes following the arrest of Raj Rajaratnam, the hedge-fund firm's founder, on insider trading charges.

Unraveling Rajaratnam

At one time, private higher education institutions were always more expensive than public ones, but things are changing. Tuition and fees rose 6.5 percent at public four-year colleges compared with the 2008-2009 school year and 4.4 percent at private, nonprofit, four-year institutions.

Coca-Cola (KO) sales in North America are losing their fizzle. The company said its third quarter profit rose only slightly compared to the same period last year, as sales continued to take a toll on revenue.

Invesco Ltd. (IVZ) agreed to buy Morgan Stanley's (MS) retail investment management business for $1.5 billion in stock and cash .

Cost cutting has boosted up the bottom line at a number of companies. Sherwin-Williams (SHW) and Pfizer (PFE) both reported declines in third-quarter profit that could have been worse if the companies had not initiated cost cutting strategies.

Cost-cutting drives Pfizer profit

How Many Jobs Has Pfizer Cut This Year?

Painting Sherwin Into Corner

 

Other Interesting Tidbits

David Einhorn's Speech at the Value Investing Congress

Will Holiday Shopping Be Naughty or Nice? -- With so many jobless consumers, many retailers are prepared to endure another weak holiday selling season. But some analysts have turned optimistic.

Windows 7 to Let Fresh Air Into Tech Sector

Why Halloween Is Recession-Proof for Some Retailers

20 reasons America has lost its soul and collapse is inevitable.

Featured Article from the InvestorGuide University
Annual Reports
These documents, also known as 10Ks, give a detailed picture of a company's financial condition, and should be read by any investor considering investing in a company's stock. They include management's discussion and analysis, stock price history, and financial data like revenues, expenses, earnings, margins, and balance sheet.

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Notable Quotable
These are excellent results. - Chris Gent, in Vodafone's annual report which included a record $19.8 billion loss

Previous Newsletters
October 19, 2009
October 16, 2009
October 15, 2009
October 14, 2009
October 13, 2009
Today's Reported Earnings
Company (Symbol) Reported Expected Last Year
E.I. du Pont de Nemours and Company (DD) 0.45 0.33 0.56
Great Atlantic & Pacific Tea Company (GAP) -1.18 -0.71 -0.28
Lexmark (LXK) 0.65 0.45 0.63
Lockheed Martin (LMT) 2.07 1.83 1.92
Peabody Energy (BTU) 0.49 0.23 1.38
Pfizer (PFE) 0.51 0.48 0.62
Precision Castparts (PCP) 1.54 1.63 1.89
Sherwin-Williams Company (SHW) 1.51 1.35 1.5
State Street (STT) 1.05 1.04 1.24
SuperValu (SVU) 0.35 0.33 0.61
United Technologies (UTX) 1.14 1.12 1.36
UnitedHealth Group (UNH) 0.89 0.76 0.73
View more earnings releases by date or by company here

Tomorrow's Expected Earnings
Company (Symbol) Expected Last Year
Affymetrix (AFFX) -0.09 -0.25
Amgen (AMGN) 1.27 1.23
AMR (AMR) -0.95 -1.39
Citrix Systems (CTXS) 0.41 0.43
eBay (EBAY) 0.37 0.45
Equifax (EFX) 0.55 0.63
Fidelity National Financial (FNF) 0.34 -0.95
Graco (GGG) 0.19 0.54
HON INDUSTRIES (HNI) 0.26 0.46
Kinder Morgan Energy Partners (KMP) 0.37 0.48
Lam Research (LRCX) -0.08 0.26
Newfield Exploration Company (NFX) 1.33 5.48
Novellus Systems (NVLS) -0.04 0.01
OSI Pharmaceuticals (OSIP) 0.33 0.56
QLogic (QLGC) 0.18 0.34
Terex (TEX) -0.34 1.08
Tractor Supply Company (TSCO) 0.59 0.53
U.S. Bancorp (USB) 0.27 0.32
USG (USG) -0.4 -0.4
Wells Fargo & Company (WFC) 0.36 0.49

Top Analyst Upgrades
Company Analyst Rating
Barrett Business Services Sidoti & Co Buy
Lamar Advertising Caris & Co Above Average
BB&T Corp FTN Equity Neutral
Time Warner Cable Pali Research Neutral
Tenaris SA Goldman Sachs Buy
Simcere Pharmaceutical Group Susquehanna Positive
Knightsbridge Tankers J.P. Morgan Overweight
Family Dollar Credit Suisse Outperform
DTE Energy Morgan Stanley Equalweight
Briggs & Stratton Baird Outperform
Sealed Air Barclays Equalweight
Ford Barclays Equalweight
Bank of America RBC Capital Outperform
Top Analyst Downgrades
Company Analyst Rating
Yamana Gold CIBC Underperform
Silver Standard Resources CIBC Sector Underperform
Sherwin-Williams FTN Equity Neutral
Allion Healthcare Raymond James Market Perform
iPCS, Inc Raymond James Underperform
Omnicell Auriga Hold
UDR Inc Macquarie Neutral
Spirit AeroSystems Morgan Stanley Underweight
National Oilwell Varco Capital One Southcoast Neutral
Boeing Morgan Stanley Underweight
Allion Healthcare ThinkEquity Hold
Pactiv Barclays Equalweight
GameStop Janney Montgomery Scott Neutral
both Leap Wireless (Nasdaq: LEAP) and MetroPCS Goldman Sachs Neutral
Boston Scientific Wells Fargo Market Perform

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