Wang’s Happy Trading

Posted by Optiondragon for myhappytrading.com

From Briefing.com

Periodicals Wrap-Up for Wednesday, October 22nd
WALL STREET JOURNAL: Biotech stocks have rebounded better than the overall market, the Wall Street Journal reported. As companies report earnings, “in terms of core business and demand for drugs…these businesses aren’t feeling the effects of the global economy,” S&P’s Steven Silver said. And for now the bigger biotechs have few competitors for genetic competition…Analysts at a number of security firms are being subpoenaed by federal prosecutors to see if Lehman Brothers misled them about their financial well being, the Wall Street Journal reported…BLOOMBERG: Bloomberg reported that, because of the credit crunch, U.S. power producers NRG Energy (NRG), Calpine (CPN) and Mirant (MIR) are under increasing pressure to accept buyouts. The three may be forced to seriously consider mergers with larger companies such as Exelon (EXC), which this week offered to buy NRG, because the credit crisis may dampen their ability to support energy contracts…As billionaire Kirk Kerkorian lowers his stake in Ford (F), Bloomberg reported that the U.S. automaker may lower its 33.4% stake in Mazda Motor, its Japanese affiliate, to raise cash as the credit crisis makes borrowing more difficult…

Time to invest in biotechs?-WSJ
Biotech stocks have rebounded better than the overall market, reports the Wall Street Journal. As companies report earnings, “In terms of core business and demand for drugs, none of the biotechs will mention any kind of softening. These businesses aren’t feeling the effects of the global economy,” says S&P’s Steven Silver. And for now the bigger biotechs have few competitors for genetic competition. Good news when there hasn’t been much to go around.

EIA Petroleum Status report released n 10/22 at 10:35 AM
Listen to Fly Radio to hear the number as it breaks.

Asian Markets Wrap-Up for Wednesday, October 22
Asian stocks retreated as the worldwide economic crisis begins to take its toll on corporate profits. All Asian markets were down…JAPAN: The Nikkei 225 Stock Average slid 631.56, or 6.8%, to 8,674.69, while the broader Topix dropped 67.41, or 7.1%, to 889.23. Mitsubishi UFJ Financial Group (MTU) lost 8.8% to Y774. Sumitomo Mitsui (SMFJY) fell 8% to Y505,000. Mitsubishi Estate (MITEY) sank 12% to Y1,811. Mitsui Fudosan Co. tumbled 10% to Y1,740. Sony (SNE) dropped 9.3% to Y2,450. Olympus Corp. (OCPNY) dived 11% to Y2,135. Konica Minolta Holdings declined 12% to Y759…CHINA: The CSI 300 Index was down 48.08, or 2.6%, to 1,833.32. China Shipping Development Co. was up 0.12 yuan, or 1.6%, to 7.74. China Railway Group slid 0.56 yuan, or 10%, to 5.05. PetroChina Co. (PTR) retreated 5.7% to 11.22. China Vanke lost 5.3% to 6.60 yuan. Jiangxi Copper (JIXAY) slipped 2% to 10.64 yuan…AUSTRALIA: The S&P/ASX 200 Index dropped -146.40, or -3.40%, to 4,156.10…AROUND ASIA: In Hong Kong, the Hang Seng Index was off -774.57, or -5.15%, to 14,266.60…In South Korea, the Kospi Index retreated 61.51, or 5.1%, to 1,134.59. Korea Gas Corp. was down 8,200 won, or the daily limit of 15%, to 47,100. Daewoo Engineering & Construction Co. fell 850 won, or 7.3%, to 10,800. Posco (PKX) slumped 25,000 won, or 7.8%, to 296,000. Hyundai Motor Co. tumbled 8,300 won, or 14%, to 50,100.

YouTube may launch live streaming service by year end-Silicon Alley Insider
The SAI reports that Google’s (GOOG) YouTube is rumored to be launching a live streaming service, which it believes is a “mistake”. While a source in August said the service wouldn’t launch before the end of the year, a new source says a YouTube Live! event to be held on November 22 is described as “YouTube’s Live launch”.

Analysts Initiation Summary for Wednesday, October 22nd
MOST NOTEWORTHY: American Physicians Capital (ACAP), AmerisourceBergen (ABC) and Interval Leisure (IILG) were today’s noteworthy initiations: Oppenheimer names American Physicians Capital their top pick in Medical Malpractice Insurance given the company’s conservative reserves and “solid” investment portfolio. Shares were assumed with an Outperform rating and $50 target. Jefferies initiated AmerisourceBergen with a Buy rating and $39 target. The firm sees limited downside given the company’s solid balance sheet, strong cash flows, and low valuation. Friedman Billings views Interval Leisure as oversold and finds the company’s business model ideal with significant free cash flow and low debt. Shares were started with an outperform rating and $9 target…OTHER INITIATIONS: American Eagle (AEO) was initiated at B. Riley with a Buy rating and $16 target. Southwestern Energy (SWN) was assumed at Barclays with an Overweight rating. Credit Suisse initiated MGM Mirage (MGM) and Las Vegas Sands (LVS) with neutral ratings and a $15 target and $16 target, respectively

Analysts Downgrade Summary for Wednesday, October 22nd
MOST NOTEWORTHY: Apple (AAPL), Precision Cast (PCP) and Darling (DAR) were today’s noteworthy downgrades: UBS downgraded Apple to Neutral from Buy on concerns iPhone ASPs are unsustainable at current levels and macro issues will impact sales of Macs. Jesup & Lamont cut Precision Cast to Hold from Buy as they believe uncertainty related to the strike at Boeing (BA) and the eventual 787 production rate will remain for some time. Stephens downgraded Darling to Equal Weight from Overweight and lowered its target to $10 from $19 as they believe the decline in commodity prices creates a lack of earnings visibility…OTHER DOWNGRADES: Ameriprise Financial (AMP) and Lincoln National (LNC) were lowered to Market Perform from Outperform at Keefe Bruyette. Biogen (BIIB) was lowered to Market Perform from Outperform at Leerink. Coventry Health (CVH) was downgraded at JP Morgan to Underweight from Neutral.

Analysts Upgrade Summary for Wednesday, October 22nd
MOST NOTEWORTHY: Genentech (DNA), Broadcom (BRCM) and Torchmark (TMK) were today’s noteworthy upgrades: Jefferies upgraded shares of Genentech to Buy from Hold and raised its target to $100 from $95 on increased likelihood of an acquisition after Roche (RHHBY) reaffirmed commitment to its $100/share offer. Baird expects Broadcom to gain market share in 2009 in mobile phones, IPTVs, and digital TVs. Shares were upgraded to Outperform from Neutral. Keefe Bruyette upgraded shares of Torchmark to Outperform from Market Perform as they see limited earnings risk and an attractive risk/reward…OTHER UPGRADES: Apple (AAPL) was raised to Buy from Add at Calyon. Tellabs (TLAB) was upgraded to Buy from Neutral at UBS and to Hold from Underperform at Jefferies. Goldman upgraded AK Steel (AKS) to Neutral from Sell and Steel Dynamics (STLD) to Buy from Neutral.

Google G1 programs reviewed-WSJ
The Wall Street Journal’s “Personal Technology” column takes an in-depth look at Google’s (GOOG) new G1 handheld computer, made to compete with Apples (AAPL) iPhone. For the G1 they installed applications from the Android Market to test. By and large the applications were “useful, entertaining and mostly straightforward.” One negative: Only 70 megabytes of internal flash memory are reserved for storing third party applications.

U.S. equity futures still point to a lower open
Stock futures continue to point to a lower open. Corporate earnings have been a focus as a few bellwether companies have reported. Apple (AAPL) reported last night and had better than expected earnings per share, but less than expected revenues and gave conservative forward guidance. The company has had the hottest holiday products for the last couple of years and the conservative guidance is confirming what analysts have already said: The holiday season will be a difficult one for consumers and retailers. The guidance also confirms the fears of a slowdown for even the best U.S. companies.

Apple rarity: Jobs speaks on analyst call-BusinessWeek
Apple’s (AAPL) fourth quarter earnings missed their target. Maybe that’s why Steve Jobs, for the first time in eight years, personally got on the phone for yesterday’s analyst conference call to reassure analysts that things aren’t as bad as they seem. Said he: “We may get buffeted by the waves a bit, but we’ll be fine.” Then the stock took off. Jobs pointed out something significant: The company hasn’t yet accounted for sales of the iPhone the same way it does for Macs and iPods. If it was per-share earnings would have been $2.69 on sales of $11.7 billion. “If this isn’t stunning, I don’t know what is,” said Jobs..Under generally accepted accounting principles, Apple records sales of iPhones over the course of eight quarters. But Jobs also said that Apple will report iPhone sales on a supplemental method with sales for the current quarter as it does for the Mac and iPod. “What he’s trying to say, but not in so many words, is that he thinks the stock is undervalued,” says Bill Kreher at Edward D. Jones.

Jim Cramer’s “Mad Money”
Cramer said Tuesday evening that there’s just nothing bankable in this market, especially if investors are in the wrong stocks. That’s why he’s continuing to stress the importance of dividends. While dividends might not be sexy, he said, they represent serious money over the long term. He noted 40% of total return delivered by the S&P500 is in the form of dividends. To underscore the power of dividends, Cramer cited Duke Energy (DUK) as a stable, recession-proof company with a 82-year history of paying dividends. The company carries a 5.8% dividend today. He also recommended steel-maker Nucor (NUE), a cyclical company that currently yields 5.7%. Cramer said he also likes the company’s long history of paying special dividends, on top of its regular dividends. Cramer talked with the company’s chairman, president and CEO Dan Dimicco to see if it can deliver equity appreciation, as well. Dimicco said Nucor is in a great cash flow position to cover its dividend. Nicor still makes money regardless of the rise and fall of input costs. Cramer said there are only a handful of industrials he’d recommend right now, and Nucor is one of them. MAD MAIL: Cramer is standing behind his recommendation of Linn Energy (LINE), this despite the company’s negative earnings per share. LIGHTNING ROUND: (Bullish) WAG; UPL; WFC; JPM; BAC; USB; WWE. (Bearish) CTB; SOV; AA.

Fast money position recap: Adami Owns (AGU), (BTU), (C ), (GS), (INTC), (MSFT), (NUE); Macke Owns (UUP), (MCO), (MSFT), (SDS), (BNI); Finerman Owns (GS): Finerman’s Firm Owns (MSFT); Finerman’s Firm Owns (DNA) Call Spreads; Finerman’s Firm Owns (OIH) Puts; Finerman’s Firm Is Short (IYR), (IJR), (IWM), (MDY), (SPY), (COF), (BBT), (USO): Najarian Owns (EMC), (BNI): Najarian Owns (AAPL) And Is Short (AAPL) Calls; Najarian Owns (AXP) Put Spread; Najarian Owns (FCX) And Is Short (FCX) Calls; Najarian Owns (MS) And Is Short (MS) Calls; Najarian Owns (RF) And Is Short (RF) Calls; Najarian Owns (MSFT) And Is Short (MSFT) Puts; Najarian Owns (CAL) And Is Short (CAL) Calls; Najarian Owns (MGM) And Is Short (MGM) Calls; Najarian Owns (BNI) And Is Short (BNI) Calls

Market looks to cycle down now with this weak premarket. I am staying nimble still and forced to look for short opportunities to go with the tide. Buying shares and writing calls is another good strategy. Doing some research right now so see you in the trading room..