Market Discussion

[la-onda]

Knobias Sector Commentary
Friday , September 19, 2008 15:59ET

Energy

The Energy sector gapped extremely high at the opening bell before consolidating in the first hours of trade. Oil prices were over $6 higher in premarket action which causing increased buying interest. As oil prices fell from those highs, the sector shed gains. After reaching a daily low, the sector began to rally higher for the remainder of the morning. During afternoon trade, the sector stabilized and traded in a much tighter range than in the morning session. Oil and gas producers all saw solid gains while equipment and service players were also higher. Overall, investors cheered the Treasury's plan to create an RTC like entity and the SEC's decision to halt shorting in the financials for the time being.

- PCZ: RBC Capital Keeps @ Sector Perform; Cuts Tgt to $42 vs $46; Analyst Notes
- MUR: UBS Securities Ups to Neutral from Sell; Cuts Tgt to $67 vs $75

Materials

The Materials sector gapped higher at the open and traded mostly in range for the rest of the session. Specialty chemicals were laggards but still sported decent gains while commodity chemicals all advanced. Metals and miners were all leaders in the sector even with gold prices slipping from earlier highs this week. Overall, investors cheered the Treasury's plan to create an RTC like entity and the SEC's decision to halt shorting in the financials which caused a broad based rally in equities.

- AA: Alcoa and Pew Center on Global Climate Change Launch Make an Impact Climate Change Program
- VSE: To Evaluate Strategic Alternatives; Suspends Equity Offering
- GG: HSBC Ups to Neutral from Underweight
- RGLD: HSBC Cuts to Neutral from Overweight
- KGC: HSBC Ups to Overweight from Neutral

Industrials

The Industrial sector gapped higher at the open and saw a consolidation phase through the first hours. After reaching a bottom, the sector rallied higher into the lunch hours and saw a spike after reports that GE would be added to the 'no short' list. After the spike, the sector chopped along off its best levels but still sharply higher. General industries were all higher while transports, support services, engineering and electronic names all saw solid gains. Heavy construction names were leaders on the session while defense names lagged. Overall, investors cheered the Treasury's plan to create an RTC like entity and the SEC's decision to halt shorting in the financials which caused a broad based rally in equities.

- WXS: Avondale Starts @ Market Outperform
- PAC: JP Morgan Starts @ Neutral
- CTV: Banc of Amer Starts @ Neutral; Sets Tgt @ $45; Analyst Notes
- CLC: BB&T Cuts to Hold from Buy

Consumer Discretionary

The Consumer Discretionary sector gapped higher at the open before quickly paring those gains and consolidating through the first few hours of trade. After reaching a low for the day which was still well above yesterday's close, the sector stabilized and finished the day near its worst levels but still with a substantial gain. Discount retailers were all void of the rally while other retailers saw decent gains. Media names were all mostly higher. Travel and leisure were leaders with airlines, resort hotels, and gaming names leading the way. Overall, investors cheered the Treasury's plan to create an RTC like entity and the SEC's decision to halt shorting in the financials which caused a broad based rally in equities.


- CTAS: Q1 EPS 51c vs 51c Misses 52c Est; Guidance In-Line with Consensus
- IHS: Q3 Adj EPS 56c vs 43c Beats 48c Est; Guidance Comments
- RGC: Caris & Co Ups to Above Average from Average
- TRIN: Deutsche Bank Cuts to Sell from Buy; Analyst Notes
- PNRA: Thomas Weisel Starts @ Market Weight
- DRI: Thomas Weisel Starts @ Overweight
- JBX: Thomas Weisel Starts @ Market Weight
- SONC: Thomas Weisel Starts @ Overweight
- YUM: Thomas Weisel Starts @ Overweight
- OMX: Friedman Cuts to Mkt Perform from Outperform; Analyst Notes
- AEO: Jefferies Starts @ Buy; Sets Tgt @ $21; Analyst Notes
- ANF: Jefferies Starts @ Underperform; Sets Tgt @ $38; Analyst Notes
- ARO: Jefferies Starts @ Hold; Sets Tgt @ $32; Analyst Notes
- PENN: Goldman Sachs Ups to Buy from Neutral; Ups Tgt to $38 vs $30; Analyst Notes
- GPS: Goldman Sachs Ups to Buy from Neutral; Analyst Notes
- ARO: Goldman Sachs Cuts to Neutral from Buy; Analyst Notes
- SONC: William Blair Cuts to Mkt Perform from Outperform; Analyst Notes
- CTAS: Smith Barney Cuts to Sell from Hold; Cuts Tgt to $27 vs $27.5; Analyst Notes
- LEA: Smith Barney Cuts to Sell from Hold; Cuts Tgt to $10 vs $17; Analyst Notes
- GPS: Goldman Sachs Ups to Buy from Neutral
- ASCA: Goldman Sachs Starts @ Sell; Sets Tgt @ $13
- COST: BMO Capital Starts @ Market Perform
- BJ: BMO Capital Starts @ Market Perform; Sets Tgt @ $42
- DKS: Lehman Starts @ Overweight

Consumer Staples

The Staples sector gapped higher at the open before paring those gains and trading in a tight range for the remainder of the day. Beverages, household goods, and some food producers were void of any rally. Money was rotating into non defensive names to take part in the move higher. Home builders were leaders on the day and all sharply advanced. Auto and leisure goods also performed relatively well. Overall, investors cheered the Treasury's plan to create an RTC like entity and the SEC's decision to halt shorting in the financials which caused a broad based rally in equities. The defense sectors such as Healthcare and Staples were void of the move though investors reached for the risky equities.

- DKAM: Q1 EPS (2c) vs (2c) EPS +20% Y/Y
- WDFC: Janney Cuts to Neutral from Buy; Analyst Notes

Health Care

The Healthcare sector gapped higher at the open before quickly setting a daily high and losing the gains. Large cap pharmaceuticals were marginally higher while large cap biotechs were split. Small cap biotechs were leaders on the day. Medical supply and device names were laggards while healthcare providers were marginally higher. Overall, investors cheered the Treasury's plan to create an RTC like entity and the SEC's decision to halt shorting in the financials which caused a broad based rally in equities. The defense sectors such as Healthcare and Staples were void of the move though investors reached for the risky equities.

- SRDX: Barrington Ups to Outperform from Mkt Perform; Sets Tgt @ $40; Analyst Notes
- SRDX: CEO Responds to Merck's Termination of License and Research Collaboration
- CELG: MethylGene Triggers Conversion of Pre-Determined Royalty, $141 Mln Milestone Payment in MGCD0103 Pact with Celgene
- ARAY: Licensing Partnership w/Morphormics Inc. for Autocontouring Technology
- WPI: FTN Midwest Res Ups to Buy from Neutral; Sets Tgt @ $34; Analyst Notes
- UTHR: Stanford Group Ups to Buy from Hold; Analyst Notes
- BDX: Banc of Amer Starts @ Buy; Sets Tgt @ $92; Analyst Notes
- ZMH: Stanford Group Starts @ Buy; Sets Tgt @ $77; Analyst Notes
- PMTI: Stanford Group Starts @ Buy; Sets Tgt @ $19; Analyst Notes
- MNT: Stanford Group Starts @ Buy; Sets Tgt @ $32; Analyst Notes
- COO: Smith Barney Cuts to Hold from Buy; Cuts Tgt to $42 vs $47; Analyst Notes

Financials

The Financial sector gapped higher at the open and set a daily high before quickly paring some of those gains in the first hour of trade. Buying interest increased after reaching a low for the day and caused the sector to rally through the lunch hours. Later in the afternoon, interest faded causing the sector to lose some of the gains and finish near the lows of the day but still incredibly higher from yesterday's close. Large cap banks were all higher on the day after the SEC enacted a no short rule on the hundreds of the financials. Regional banks were laggards with some sporting losses. General finance names were all higher and led the sector in gains. Non life insurance players were void of the overall rally while life insurance names advanced. Overall, investors cheered the Treasury's plan to create an RTC like entity and the SEC's decision to halt shorting in the financials which caused a broad based rally in equities.

- SLG: Stifel Nicolaus Cuts to Sell from Hold; Analyst Notes
- AMB: UBS Securities Cuts to Neutral from Buy
- PLD: UBS Securities Cuts to Neutral from Buy
- BK: Deutsche Bank Cuts to Hold from Buy
- STT: Deutsche Bank Cuts to Hold from Buy; Cuts Tgt to $72 vs $80
- PLD: RBC Capital Cuts to Sector Perform from Outperform; Cuts Tgt to $33 vs $60; Analyst Notes
- CLI: Stifel Nicolaus Cuts to Sell from Hold; Analyst Notes
- BPOP: B. Riley Cuts to Neutral from Buy; Keeps Tgt @ $9.5; Analyst Notes
- ZION: Fox-Pitt Cuts to In-line from Outperform
- MTB: Fox-Pitt Cuts to In-line from Outperform
- KEY: RBC Capital Ups to Sector Perform from Underperform; Ups Tgt to $11 vs $10; Analyst Notes
- WL: RBC Capital Ups to Sector Perform from Underperform; Ups Tgt to $28 vs $20
- HST: Baird Cuts to Neutral from Outperform; Analyst Notes

Information Technology

The Technology sector gapped higher at the open and set a daily high before quickly consolidating and attempting to close that gap. After failing to close that gap, the sector rallied higher through the morning session. Buying interest faded during the afternoon session and sent the sector back to the worst levels of the day but still incredibly higher from yesterday's close. Hardware names were all higher on the day. Software and service names also sharply advanced. Overall, investors cheered the Treasury's plan to create an RTC like entity and the SEC's decision to halt shorting in the financials which caused a broad based rally in equities.

- PALM: Q1 Adj EPS (12c) vs 9c Beats (18c) Est
- ORCL: Q1 Adj EPS 29c vs 16c Beats 27c Est
- FDRY: Pacific Growth Ups to Neutral from Sell
- UTSI: BWS Financial Ups to Buy from Hold; Analyst Notes
- GCA: Avondale Starts @ Outperform
- LOGI: Goldman Sachs Ups to Neutral from Sell
- LWSN: Cantor Fitz Starts @ Buy; Sets Tgt @ $8; Analyst Notes
- LRCX: Pacific Crest Cuts to Sector Perform from Outperform; Analyst Notes
- SAY: Stifel Nicolaus Ups to Buy from Hold; Sets Tgt @ $23; Analyst Notes
- MFE: Friedman Cuts to Underperform from Mkt Perform; Analyst Notes
- CNQR: Jefferies Cuts to Hold from Buy; Sets Tgt @ $50; Analyst Notes
- ARRS: ThinkPanmure Cuts to Source of Funds from Buy; Cuts Tgt to $9 vs $10; Analyst Notes
- CNQR: Canaccord Adams Cuts to Hold from Buy
- CTSH: Wachovia Cuts to Mkt Perform from Outperform; Analyst Notes
- INFY: Wachovia Cuts to Mkt Perform from Outperform; Analyst Notes
- NVLS: Soleil Starts @ Hold; Sets Tgt @ $24; Analyst Notes
- LRCX: Soleil Starts @ Buy; Sets Tgt @ $45; Analyst Notes
- FEIC: Soleil Starts @ Buy; Sets Tgt @ $32; Analyst Notes
- CYMI: Soleil Starts @ Buy; Sets Tgt @ $35; Analyst Notes
- CNQR: Soleil Cuts to Hold from Buy; Sets Tgt @ $50; Analyst Notes
- AMAT: Soleil Starts @ Buy; Sets Tgt @ $20.5; Analyst Notes
- MSCC: Wachovia Cuts to Mkt Perform from Outperform; Analyst Notes
- CREE: Oppenheimer Ups to Outperform from Sector Perform; Sets Tgt @ $31; Analyst Notes
- ORCL: Piper Jaffray Ups to Buy from Neutral; Sets Tgt @ $23; Analyst Notes
- FEIC: Needham Sets @ Hold; Analyst Notes
- BBBB: Raymond James Starts @ Strong Buy

Telecommunication Services

The Telecom sector gapped higher at the open before consolidating and trading in a tight range for the remainder of the afternoon. Fixed line names were all higher while mobile names were leaders in the sector. Overall, investors cheered the Treasury's plan to create an RTC like entity and the SEC's decision to halt shorting in the financials which caused a broad based rally in equities.

- T: Doubles Size of 3G Wireless Footprint in Rochester Area

Utilities

The Utility sector gapped higher at the open before consolidating in the first hours and closing the gap. After the close, the sector rallied higher through the morning session and stabilized during afternoon trade with a solid gain. Electricity names were mostly higher with only a few laggards. Gas and water names were all higher though DUK lost ground on the day. Overall, investors cheered the Treasury's plan to create an RTC like entity and the SEC's decision to halt shorting in the financials which caused a broad based rally in equities.

- CEG: Lehman Cuts to Equal-weight from Overweight
- AEP: Jefferies Ups to Buy from Hold; Cuts Tgt to $42 vs $45; Analyst Notes
- CEG: Jefferies Ups to Hold from Underperform; Ups Tgt to $25 vs $20; Analyst Notes
- EDE: Jefferies Cuts to Hold from Buy; Cuts Tgt to $21.5 vs $22.5; Analyst Notes
- CEG: Banc of Amer Cuts to Neutral from Buy; Cuts Tgt to $26.5 vs $102; Analyst Notes
- GAS: Argus Cuts to Hold from Buy; Analyst Notes
- FPL: UBS Securities Ups to Buy from Neutral; Cuts Tgt to $62 vs $70; Analyst Notes
- NWN: Sidoti & Co Cuts to Neutral from Buy
- OTTR: DA Davidson Ups to Buy from Neutral; Analyst Notes

&

More financial regulation may be needed, state delegation says
Friday , September 19, 2008 17:35ET

Sep 19, 2008 (Milwaukee Journal Sentinel - McClatchy-Tribune News Service via COMTEX) -- Sep. 19--WASHINGTON -- With taxpayers on the hook for billions of dollars, Wisconsin's congressional members are expressing concern about government moves meant to stem the financial crisis.

The decision by the Treasury Department and the Federal Reserve to give insurance giant American International Group an $85 billion loan in exchange for 80% of its stock comes on the heels of a $200 billion government bailout for mortgage lenders Fannie Mae and Freddie Mac and $29 billion for investment bank Bear Stearns.

As the debt owed to American taxpayers piles up, some Wisconsin lawmakers say they worry that the Bush administration is making these determinations with little transparency and no input from Congress. Others blame the administration for a lack of government regulation that they say led to the current financial mess.

"Now the feds are intervening when they've had this total hands-off approach," said Rep. Gwen Moore (D-Milwaukee).

While many agree that government intervention may have been necessary to curb the panic on Wall Street, they also say Congress must provide enough oversight to make sure American taxpayers don't end up footing the bill.

But what's important, some say, is where the country goes from here.

"What's really disturbing about these bailouts is the moral hazard it produces," said Rep. Paul Ryan (R-Janesville), the top Republican on the House Budget Committee. "Make yourself too big to fail and the taxpayers will bail you out. . . . Once the dust settles, we need to rewrite the regulations. The 21st century has evolved beyond the reach of the regulators."

Moore, a member of the House Financial Services Committee, agrees. "If a financial institution is too large and too integrated into the fabric of our economy to fail, then they are clearly too large and too intertwined to be left unregulated," she said.

Here's what some other members of Wisconsin's congressional delegation have to say:

Sen. Herb Kohl: "Though the Federal Reserve and Treasury do not need congressional authority to do these types of loans, we must ensure that regulators are held accountable, oversight is rigorous and taxpayer dollars are protected."

Sen. Russ Feingold: "I do not envy the difficult position (Treasury) Secretary (Henry) Paulson and (Federal Reserve) Chairman (Ben) Bernanke are in, and I won't try to second-guess their actions. . . . But we . . . have a failure of regulation and regulatory enforcement, and taxpayers have been put at risk because of that failure."

Rep. Jim Sensenbrenner (R-Menomonee Falls.): "I am concerned about the administration committing billions of taxpayer funds unilaterally. Taxpayers should not be forced to bear the financial burden for irresponsible management by Wall Street firms."

Rep. Tom Petri (R-Fond du Lac): "The federal government should be more than cautious in its use of taxpayer dollars to rescue private companies, limiting federal intervention to those cases where an individual collapse would spread harm more broadly throughout the financial system."

Rep. Steve Kagen (D-Appleton): "What we have today is a failure of the free market system because of the absence of regulation."

Rep. Ron Kind (D-La Crosse): "Now is not the time to engage in a huge food fight to assign blame. We need to start exploring what options we have to get the poison out of our system."

Rep. Tammy Baldwin (D-Madison): "I recognize that it is the role and responsibility of the Federal Reserve and the Executive Branch to respond quickly and nimbly to changing market conditions -- especially those of the magnitude we have been experiencing recently. It also is essential for Congress to engage in aggressive oversight to determine whether existing regulations are inadequate to protect American taxpayers from loss as a result of financial institutions' abuses."

[la-onda]

nice summarization 

[la-onda]

Rescue plan seeks $700B to buy bad mortgages
Saturday September 20, 12:16 pm ET

Bush rescue plan seeks $700B for to buy bad mortgages, would raise limit on national debt

WASHINGTON (AP) -- The Bush administration is asking Congress to let the government buy $700 billion in toxic mortgages in the largest financial bailout since the Great Depression, according to a draft of the plan obtained Saturday by The Associated Press.

The plan would give the government broad power to buy the bad debt of any U.S. financial institution for the next two years. It would raise the statutory limit on the national debt from $10.6 trillion to $11.3 trillion to make room for the massive rescue. The proposal does not specify what the government would get in return from financial companies for the federal assistance.

"We're going to work with Congress to get a bill done quickly," President Bush said at the White House. Without discussing details of the plan, he said, "This is a big package because it was a big problem."

The White House and congressional leaders hoped the developing legislation could pass as early as next week.

Administration officials and members of Congress were to negotiate throughout the weekend. The plan is designed to let faltering financial institutions unload their distressed mortgage-related assets on the government, and in turn the taxpayer, in a bid to avoid dire economic consequences.

Bush said he worried the financial troubles "could ripple throughout" the economy and affect average citizens. "The risk of doing nothing far outweighs the risk of the package, and over time we're going to get a lot of the money back."

He added, "People are beginning to doubt our system, people were losing confidence and I understand it's important to have confidence in our financial system."

"In my judgment, based upon the advice of a lot of people who know how markets work, this problem wasn't going to be contained to just the financial community," the president said. He said he was concerned about "Main Street" and that what happens on "Wall Street" affects "Main Street."

Sen. Chuck Schumer, D-N.Y., called the proposal "a good foundation," but raised concerns it "includes no visible protection for taxpayers or homeowners."

Democrats are insisting the rescue include mortgage help to let struggling homeowners avoid foreclosures. They also are also considering attaching additional middle-class assistance to the legislation despite a request from Bush to avoid adding controversial items that could delay action. An expansion of jobless benefits was one possibility.

Asked about the chances of adding such items, Bush sidestepped the question, saying only that now was not the time for political posturing. "The cleaner the better," he said about legislation he hopes Congress sends back to him at the White House.

If passed by Congress, the plan would give the Treasury secretary broad power to buy and sell the mortgage-related investments without any additional involvement by lawmakers. The proposal, however, would require that the congressional committees with oversight on budget, tax and financial services issues be briefed within three months of the government's first use of the rescue power, and every six months after that.

While the proposal contains no requirement that the government receive anything from banks in return for unloading their bad assets, it would allow the Treasury Department to designate financial institutions as "agents of the government," and mandate that they perform any "reasonable duties" that might entail.

In a briefing to lawmakers Friday, Paulson and Federal Reserve Chairman Ben Bernanke painted a grave picture of an economy on the edge of a major recession and telling them that action was urgent and imperative.

In a session with House Democrats, they described a plan where the government would in essence set up reverse auctions, putting up money for a class of distressed assets -- such as loans that are delinquent but not in default -- and financial institutions would compete for how little they would accept for the investments, said Rep. Brad Sherman, D-Calif., who participated in the conference call.

"You give them good cash; they give you the worst of the worst," Sherman said. A critic of the plan, he complained that Bush and his economic advisers were trying to panic lawmakers into rubber-stamping it.

Paulson said the new troubled-asset relief program must be large enough to have the necessary impact while protecting taxpayers as much as possible.

"I am convinced that this bold approach will cost American families far less than the alternative -- a continuing series of financial institution failures and frozen credit markets unable to fund economic expansion," Paulson said. "The financial security of all Americans ... depends on our ability to restore our financial institutions to a sound footing."

Administration officials hoped the rescue plan could be finalized this weekend, to lend calm to Monday morning's market openings, said Keith Hennessey, the director of the president's economic council. The goal is to have something passed by Congress by the end of next week, when lawmakers recess for the elections.

[AussieTrader]

Short Sellers fight back!!!

British hedge funds to sue over short-sale ban: report
10:05a ET September 21, 2008 (MarketWatch)
NEW YORK (MarketWatch) -- A group of the world's biggest hedge funds are planning to sue the U.K.'s Financial Services Authority for millions of British pounds in losses from the regulator's ban on short-selling, the Sunday Telegraph reported late Saturday, citing unnamed fund managers and lawyers.

The report quoted hedge-fund representatives as saying the British financial watchdog illegitimately extended its powers and caused wide-spread capital destruction.

The FSA announced a ban on the short selling of financial stock Thursday. See full story. The action was followed Friday by a similar move from the U.S. Securities and Exchange Commission. See full story.

The Telegraph said hedge funds felt the move unfairly impacted on their trading business.

"It's too easy to blame hedge funds," the newspaper quoted a fund manager as saying. "The real culprits are the banks which were cavalier in their lending, and the investment banks which were irresponsible in the way they packaged the loans and pumped them round the world. It's also the regulator's fault for not picking it up, not ours."

An attorney for one of the hedge funds said the move would put many funds out of business.

"With one swoop, the regulators have wiped out perfectly legitimate businesses and have cost some funds millions. They have gone for the big political hit without a thought for the damage they are wreaking. There may be unintended consequences but it's outrageous and illegal," the lawyer was quoted as saying.

[la-onda]

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news:
Last major investment banks change status
Sunday September 21, 11:02 pm ET
Federal Reserve changes status of Goldman Sachs and Morgan Stanley to bank holding companies

WASHINGTON (AP) -- The Federal Reserve said Sunday it had granted a request by the country's last two major investment banks -- Goldman Sachs and Morgan Stanley -- to change their status to bank holding companies.


The Fed announced that it had approved the request of the two investment banks. The change in status will allow them to create commercial banks that will be able to take deposits, bolstering the resources of both institutions.

The change continued the biggest restructuring on Wall Street since the Great Depression.

The request for the change to bank holding companies was granted by a unanimous vote of the Fed's board of governors during a late Sunday meeting in Washington.

The change of status means both companies will come under the direct regulation of the Federal Reserve, which regulates the nation's bank holding companies. The banking subsidiaries of the two institutions will face the stricter regulations that commercial banks are required to meet. Previously, the primary regulator for Goldman and Morgan Stanley was the Securities and Exchange Commission.

Shares of both institutions had come under pressure ever since the bankruptcy filing last week by investment bank Lehman Brothers and the forced sale of investment bank Merrill Lynch to Bank of America.

Investors feared that the last remaining independent investment banks would not be able to survive in their current form. There had been speculation that both institutions would be acquired by commercial banks, whose ability to take deposits would give them a stable source of funding.

The decision by the two giants of finance to get approval from the Fed to change their own status represented another dramatic development in one of the most turbulent periods in Wall Street history.

In the surprise announcement late Sunday, the central bank said that to provide increase funding support to the two institutions during the transition period, they would be allowed to get short-term loans from the Federal Reserve Bank of New York against various types of collateral.

The Fed said its action would take final effect after a five-day waiting period required under law.

The decision means that the Goldman and Morgan Stanley will be able not only to set up commercial bank subsidiaries to take deposits, giving them a major resource base, but they will also have the same access as other commercial banks to the Fed's emergency loan program.

After the collapse of Bear Stearns and its forced sale to JP Morgan Chase last March, the Fed used powers it had been granted during the Great Depression to extend its emergency loans to investment banks as well as commercial banks. However, that extension was granted on a temporary basis.

But as commercial banks, Goldman Sachs and Morgan Stanley will have permanent access to emergency loans from the Fed, the same privilege that other commercial banks enjoy.

The action by the Fed's board of governors in Washington came on a day when the Bush administration continued to campaign for quick congressional approval of its request for authority to use $700 billion to purchase a mountain of bad mortgage debt held by financial companies. The effort represented the boldest action yet aimed at stabilizing chaotic financial markets.

Democrats in Congress said they would demand provisions in the bailout measure to protect people in danger of losing their homes as well as seeking to cap executive compensation at firms who get to unload their bad mortgages debt onto the government. But the proposal was expected to win quick congressional passage because both parties are concerned about the adverse reaction in financial markets should the measure look like it was being delayed.
cheers
O.

[la-onda]

Knobias Sector Commentary
Monday , September 22, 2008 16:00ET

Energy

The Energy sector gapped higher at the open before losing that gap higher and trading lower through the morning session. During afternoon trade, oil prices spiked as the dollar plunged helping the sector rally to the green and close near its best levels. Oil and gas producers were all higher while small cap refiners were leaders on the day. Equipment and service names also performed well but the sector saw a steep decline into the close which cut the gains and ended with a large loss on the day. Overall, Financials were in focus with the legislature debating the bailout bill, but the plunging dollar overshadowed the government debate and ushered the market lower on the spike in oil.

- PWE: Downgraded to Neutral from Buy @ MLCO
- TRP: Upgraded to Buy from Underperform @ MLCO

Materials

The Materials sector gapped higher at the open before chopping along through the first hour and selling off heading into mid day. In the afternoon session, the sector chopped along in a tight range and closed off the worst levels but still lower on the day. Chemical names were all lower on the day with commodity chemical underperforming the specialty names. Industrial metals were mixed while miners all sported healthy gains and counter acted weakness in other areas. Gold prices were on the rise after the dollar plunged and were higher by $20 on the day. Overall, Financials were in focus with the legislature debating the bailout bill, but the plunging dollar overshadowed the government debate and ushered the market lower on the spike in oil.

- VSE: Smith Barney Ups to Hold from Sell; Sets Tgt @ $1.85; Analyst Notes
- DD: Soleil Cuts to Hold from Buy; Sets Tgt @ $50; Analyst Notes
- AVD: Soleil Cuts to Hold from Buy; Sets Tgt @ $18; Analyst Notes
- POL: Collaboration w/Archer Daniels Midland for Bio-Based Plasticizers
- ARG: Oppenheimer Cuts to Sector Perform from Outperform; Analyst Notes

Industrials

The Industrial sector lost ground at the open and came under heavy selling pressure. For the remainder of the session, the sector added losses and finished the day with a large loss. Aerospace & defense, support services, electronic, and heavy construction were all lower on the day. Commercial vehicles were leaders in the sector but mixed. Transports were laggards with oil prices spiking on the plunging dollar and the expiration day bounce. Overall, Financials were in focus with the legislature debating the bailout bill, but the plunging dollar overshadowed the government debate and ushered the market lower on the spike in oil.

- VPRT: Stifel Nicolaus Cuts to Hold from Buy; Analyst Notes
- CLS: CIBC Cuts to Sector Perform from Sector Outperform; Cuts Tgt to $8 vs $11; Analyst Notes
- WSO: Oppenheimer Cuts to Underperform from Sector Perform; Analyst Notes
- KBR: Morgan Stanley Starts @ Overweight
- KMT: Goldman Sachs Cuts to Sell from Neutral
- YRCW: JP Morgan Cuts to Underweight from Neutral; Analyst Notes
- CNW: JP Morgan Cuts to Neutral from Overweight; Analyst Notes

Consumer Discretionary

The Consumer Discretionary sector gapped higher at the open before quickly losing that level and adding to those losses for the remainder of the session and finished near its worst levels. Retailers were all lower on the day. Media names also saw declines. Food and drug and travel leisure all saw selling pressure. Airlines were laggards as oil prices spiked. Overall, Financials were in focus with the legislature debating the bailout bill, but the plunging dollar overshadowed the government debate and ushered the market lower on the spike in oil.

- AZO: Q4 EPS $3.88 vs $3.23 Misses $3.9 Est
- EAT: Banc of Amer Cuts to Neutral from Buy; Sets Tgt @ $21; Analyst Notes
- KMX: Q2 EPS 6c vs 29c Misses 10c Est
- PSUN: B. Riley Cuts to Neutral from Buy; Sets Tgt @ $8.4; Analyst Notes

Consumer Staples

The Consumer Staple sector chopped higher at the open before losing that ground and adding losses for the remainder of the session and finishing near the lows at the close. Beverages, tobacco, personal goods and food producers were all lower on the session. Home builders were the laggards while autos also lost ground. Overall, Financials were in focus with the legislature debating the bailout bill, but the plunging dollar overshadowed the government debate and ushered the market lower on the spike in oil.

- POL: Collaboration w/Archer Daniels Midland for Bio-Based Plasticizers
- TSN: JP Morgan Starts @ Overweight
- PPC: JP Morgan Starts @ Neutral
- SAFM: JP Morgan Starts @ Underweight

Health Care

The Healthcare sector saw early selling pressure and chopped along for the remainder of the day in a tight range but still lower. Large cap pharmaceuticals were all mostly lower while biotechs also lost ground. Medical supply and technology names also lost ground while healthcare providers were a mixed. Overall, Financials were in focus with the legislature debating the bailout bill, but the plunging dollar overshadowed the government debate and ushered the market lower on the spike in oil.

- HS: Goldman Sachs Ups to Buy from Neutral; Analyst Notes
- HMA: Banc of Amer Ups to Buy from Neutral; Cuts Tgt to $6 vs $6.5; Analyst Notes
- OMRI: Completes Enrollment for Ph II Trial of Fibrin Pad for Bleeding
- DRRX: License Agreement w/Alpharma Ireland for ELADUR(TM) Pain Patch
- ARIA: Court Rules in Favor of Amgen in Patent Lawsuit
- ZVUE: Ulysses S. Curry Named Chairman and Inerim CEO
- ANPI: Announces Reorganization and Cost Reduction Initiatives
- EMIS: Recruitment Begins in Phase III Study for Oral Osteoarthritis Treatment
- TEVA: Wachovia Ups to Outperform from Mkt Perform; Analyst Notes
- WPI: Wachovia Ups to Outperform from Mkt Perform; Analyst Notes
- ABAX: CEO Presents at UBS Global Life Sciences Conference Today
- ANIK: Exclusive Distribution Agreement for Latin America w/DePuy Mitek

Financials

The Financial sector saw heavy selling pressure at the open and added to those losses through the early hours. After stabilizing mid morning, the sector chopped into the afternoon hours and saw another move lower before consolidating into the close near the lows. Banks were all down on the day while regional banks saw the majority of losses. General finance names were all lower while non life insurance names were leaders in the sector but still lower. Life insurance also sported healthy declines. AIG was a lone bright spot as the Company raced to repay the loans back to the government. Overall, Financials were in focus with the legislature debating the bailout bill, but the plunging dollar overshadowed the government debate and ushered the market lower on the spike in oil.

- NCC: Goldman Sachs Ups to Buy from Neutral
- Morgan and Goldman to Become Banks
- KEY: BMO Capital Ups to Outperform from Market Perform
- AF: Stifel Nicolaus Cuts to Sell from Hold; Analyst Notes
- BPO: Stifel Nicolaus Cuts to Hold from Buy; Analyst Notes
- BRO: Stifel Nicolaus Cuts to Sell from Buy; Analyst Notes
- HCN: Stifel Nicolaus Cuts to Hold from Buy; Analyst Notes
- MTB: Stifel Nicolaus Cuts to Hold from Buy
- WB: Stifel Nicolaus Cuts to Hold from Buy; Analyst Notes
- WRI: Stifel Nicolaus Cuts to Hold from Buy; Analyst Notes
- LEH: Will Sell Asian Operations to Nomura; Will Not Takeover Trading Assets/Liabilities
- MS: Mitsubishi UFJ to Reportedly Buy a 20% Stake in Morgan
- GFIG: Smith Barney Ups to Hold from Sell; Cuts Tgt to $6 vs $7; Analyst Notes
- WFSL: Friedman Cuts to Underperform from Mkt Perform; Keeps Tgt @ $17; Analyst Notes
- RJF: Keefe Bruyette Cuts to Mkt Perform from Outperform; Sets Tgt @ $33; Analyst Notes
- AB: Keefe Bruyette Ups to Outperform from Mkt Perform; Cuts Tgt to $48 vs $60; Analyst Notes
- TROW: Keefe Bruyette Cuts to Underperform from Mkt Perform; Analyst Notes
- WDR: Keefe Bruyette Cuts to Mkt Perform from Outperform; Cuts Tgt to $29 vs $39; Analyst Notes
- JOE: Keefe Bruyette Cuts to Mkt Perform from Outperform; Sets Tgt @ $42; Analyst Notes
- BEN: Keefe Bruyette Cuts to Mkt Perform from Outperform; Sets Tgt @ $106; Analyst Notes
- LYG: UBS Securities Ups to Neutral from Sell; Analyst Notes
- LYG: JP Morgan Cuts to Underweight from Neutral; Analyst Notes
- BCS: JP Morgan Cuts to Underweight from Neutral; Analyst Notes
- JPM: Sandler O'Neill Cuts to Hold from Buy
- CNB: Sandler O'Neill Cuts to Hold from Buy
- PNC: Sandler O'Neill Cuts to Hold from Buy
- MER: Sandler O'Neill Cuts to Hold from Buy
- WBS: Sandler O'Neill Cuts to Hold from Buy
- CM: BMO Capital Ups to Outperform from Market Perform
- BBT: Sandler O'Neill Cuts to Sell from Hold
- FULT: Sandler O'Neill Cuts to Sell from Hold

Information Technology

The Technology sector gapped lower at the open and chopped along for the first few hours. Around mid morning, the sector saw another leg down and chopped along before an end of day sell off saw another leg lower. MSFT, DELL, and MOT were bright spots in the sector while the rest of the sector saw steep declines. MSFT announced a large stock buyback and raised its dividend. HPQ also announced a large buyback but couldn't withstand the selling pressure. Overall, Financials were in focus with the legislature debating the bailout bill, but the plunging dollar overshadowed the government debate and ushered the market lower on the spike in oil.

- BRCM: Collins Stewart Starts @ Hold; Analyst Notes
- SAI: SG Cowen Ups to Outperform from Neutral; Analyst Notes
- TRAK: SG Cowen Cuts to Neutral from Outperform; Analyst Notes
- VSEA: CSFB Cuts to Neutral from Outperform
- KLAC: CSFB Cuts to Underperform from Neutral
- LOGI: Merrill Lynch Ups to Neutral from Underperform
- MSFT: Approves New $40B Stock Buyback; Ups Dividend by 2c
- HPQ: Boosts Share Buyback by $8 Billion
- ARMH: Dresdner Klein Cuts to Sell from Reduce

Telecommunication Services

The Telecom sector came under heavy selling pressure at the open and added to those losses for the remainder of the session. T was upgraded at Soleil but the action had little impact. Other fixed line names saw heavy losses while mobiles names also saw steep declines. Overall, Financials were in focus with the legislature debating the bailout bill, but the plunging dollar overshadowed the government debate and ushered the market lower on the spike in oil.

- T: Soleil Ups to Buy from Hold; Cuts Tgt to $38 vs $41; Analyst Notes
- OTT: RBC Capital Ups to Outperform from Sector Perform; Sets Tgt @ $16

Utilities

The Utilities sector saw increased selling pressure at the open and chopped along for the remainder of the session in red territory before closing near its lows. CEG was one of the lone bright spots after announcing its buyout by MidAmerican. Overall, Financials were in focus with the legislature debating the bailout bill, but the plunging dollar overshadowed the government debate and ushered the market lower on the spike in oil.

- PNY: Brean Murray Cuts to Hold from Buy; Analyst Notes
- NWN: Brean Murray Cuts to Hold from Buy; Analyst Notes
- OTTR: Baird Ups to Outperform from Neutral; Sets Tgt @ $41; Analyst Notes

[la-onda]

awesome:

THEY WANT MAMA TO MAKE IT ALL BETTER: http://www.youtube.com/watch?v=mbD62gNi9WE

also nice:

A look at key commodity charts, 10 year bonds & the dollar
We have seen a huge upheaval in the markets in the last week.  The Dow is playing manic-depressive.  Market bulls should be worried because the only reason the Dow has been going up is due to glee that the US government is going to bail out Wall Street.  Otherwise, economic data continues to disappoint and it seems each month marks a new all-time high in foreclosures.

Below are charts for key commodities, the 10-year yield and the US dollar.  I wonder what mental constipation so called sophisticated traders and economists have in analyzing what is going on.  Pay particular attention to the bond and dollar charts.  Last week US Treasury yields fell like a stone as money piled into them as a safe haven from the Dow's gyrations.  Now yields have exploded to the upside as it finally registers with investors the only way the US is going to pay for these massive bailouts is through a massive issuance of debt or printing money.  Flooding the capital markets with more US bonds is only going to push up yields while printing money is going to sink the dollar.

*************************************************************************************************************************

Copper,
http://stockcharts.com/h-sc/ui?s=$COPPER&p=W&yr=2&mn=10&dy=0&id=p19803629205&a=131178698&listNum=3

Crude Oil,
http://stockcharts.com/h-sc/ui?s=$WTIC&p=D&yr=0&mn=6&dy=0&id=p17649591410&a=131180076&listNum=3

Gold,
http://stockcharts.com/h-sc/ui?s=$GOLD&p=D&yr=0&mn=6&dy=0&id=p05362961313&a=125323719&listNum=3

Gold Stock Index,
http://stockcharts.com/h-sc/ui?s=$HUI&p=D&yr=0&mn=6&dy=0&id=p56411303839&a=130853106&listNum=3

Natural Gas,
http://stockcharts.com/h-sc/ui?s=$NATGAS&p=D&yr=0&mn=6&dy=0&id=p35793139969&a=146051370&listNum=3

Platinum,
http://stockcharts.com/h-sc/ui?s=$PLAT&p=D&yr=0&mn=7&dy=0&id=p47420823100&a=108052216&listNum=3

Silver,
http://stockcharts.com/h-sc/ui?s=$SILVER&p=D&yr=0&mn=5&dy=0&id=p15675868608&a=131179498&listNum=3

US 10-year Treasury Yield (trouble in safe haven land?),
http://stockcharts.com/h-sc/ui?s=$UST10Y&p=D&yr=0&mn=10&dy=0&id=p30725941107&a=141063444&listNum=3

US Dollar Index,
http://stockcharts.com/h-sc/ui?s=$USD&p=D&yr=0&mn=8&dy=0&id=p06475580727&a=112138636&listNum=3


&

Excellent summary of where were we are with fiat and we we got here (From LeMetroPoleCafe letter)
I have written a few letters to the local paper over the years and it has become clear there are a couple of subjects which are completely taboo. One of them concerns our money system and the central bank. You can criticize monetary policy but the system is beyond reproach. It is the money system that is failing and all the the financial chaos we are witnessing is merely a symptom of something far greater.

Our money system utilizes currency, be it paper money or electronic credits; that is created by being loaned into existence. Because it is loaned there is also an interest obligation that must be paid back over
and above the initial amount or principle. It is that interest that accrues over time and requires ever increasing amounts of money to to be created lest the whole system implode into a deflationary collapse. That is the "heroin" that the financial system needs an ever increasing fix just to stay on an even keel. Our money system is one big ponzi scheme that requires new credit (and of course, new debtors) to keep on functioning. It is as simple as that.

The US monetary system hit the wall around the late 1980's. Legitimate lending/borrowing was not sufficient to ensure that enough money could be created to service the level of debt that had built up to that time. Artificially low interest rates would not be enough to continue the required monetary stimulation upon which the economy had come to depend on. Institutions that provided loans were desperate for an asset they could easily obtain and use as an asset upon which they could bolster their net worth and offer loans. They found the solution in derivatives. Financial instruments which were created and traded as hedges for specialized risk mitigation soon took on a life of their own. They grew in scope and size to the multi trillion dollar behemoth we have now. Derivatives which were held and priced arbitrarily became an ever increasing asset base that allowed for more lending.

While derivatives grew outside of oversight and regulation, consumer borrowing was stimulated by artificially low rates and lenders taking on dubious assets such as shares as collateral and extending credit to less than stellar applicants. Securitization brought us a whole new range of financial products such as credit default swaps and collateralized debt obligations that were also both hedged and leveraged via derivatives.

We are now seeing what some are referring to as "deleveraging". Basically it is is a deflationary collapse in which existing debt can no longer be serviced by growth of the money supply. It is the inevitable result of a monetary expansion that normally results in liquidation of bad investments and debts. The problem with this one is that one of the things that will get liquidated is fiat money. The US dollar and most
other fiat monies are not redeemable for a fixed quantity of gold or any other tangible asset. They are merely promissory notes and as such they constitute debt rather than an asset. The liquidation of fiat is taking place as failed debt is monetized by being taken on as collateral by the Fed and Treasury. What we are now witnessing will continue as the financial authorities grasp at straws to buy a little time before the inevitable.

It is imperative to understand that this entire episode of financial and economic collapse is the result of a flawed system. There were those who foresaw such a collapse and were highly critical of the Federal Reserve in earlier years. In answer to those who were concerned about the long term viability of such a system, John Maynard Keynes was found as quipping;"in the long run we will all be dead". It is the long run now and he is dead but we are the ones who must live through this mess. This flawed system was imposed upon us for a reason that has nothing to do improved economy. It is about power.

Our money system is the foundation for power upon which the establishment enjoys. It exists for no other reason except to provide power and privilege to the elite. The wealth that they obtain by holding liens against all that has been used as collateral is of secondary consideration. Control of the money system leads to a tremendous influence over the state, industry and individuals all of whom require it for commerce, investment or savings.

What if you were the only person in your community who was allowed to print money? If anyone wanted or needed to use your money they would have to borrow it from you with interest. Don't you think that would give you a little power in your community? Extrapolate that concept to national or global levels and it should be obvious why the money system exists as such.

The power it has accrued for the elite is the reason no establishment media outlet would allow any criticism nor any competition. It is clear that the mainstream media is an integral part of the establishment. Those of you who followed Ron Paul in the recent primaries saw how he was sidelined by the media because he threatens the status quo. Gold as a barometer to the economy in general or the money system in particular has come under special attention. Control of prices to maintain the facade of value in the currency and constantly belittle and marginalize those who sought its' financial protection has worked to dampen demand. It is unlikely we will ever see the media cover the truth about gold or other financial manipulation because it would lead directly to implicating the fraudulent nature of our money system.

This financial crisis will culminate in the collapse of the US dollar and several other fiat currencies. There is a small possibility that some scheme can be concocted to buy a little more time. The result will be the same. The confidence that the establishment once garnered is now being replaced by skepticism. People are just beginning to understand that they face liquidation by continued participation in the financial system. Twenty some years of manipulation and disinformation has left
them unsure about what course of action to take. Enough will get it and you will know it when you hear that there is no retail sector gold available for anything close to Comex quoted prices. That day will be a lot sooner than most suspect.
Jax
cheers
Oliver

[la-onda]

fyi  :
Knobias Sector Commentary
Tuesday , September 23, 2008 16:01ET

Energy

The Energy sector saw early buying interest which helped the sector higher on oil's price spike. After the initial move higher, the sector lost interest and lost ground through the morning hours and into the afternoon. Buying interest picked back up in the mid atfternoon and helped the sector off its lows. Oil and gas producers were all mostly lower on the day. Equipment and service names were also lower and were laggards in the sector. Overall, testimony on Capitol Hill was in focus for the majority of the day and caused the markets to fall from their highs and into red territory. As investors digested the rhetoric, the markets finished near their lows but investors still seemed undecided while the market traded in a similar fashion.

- BQI: Announces $18M PIPE; Common @ $3.50 Per Share
- APC: Stanford Group Ups to Buy from Hold; Sets Tgt @ $81; Analyst Notes

Materials

The Materials sector chopped lower throughout the morning session and into the early afternoon hours. Commodity prices lost ground on the day as the dollar saw a bounce back late in the morning. Commodity chemicals, metals, and miners all saw sharp declines and were laggards. Specialty chemicals fared a bit better but were still mostly lower while paper names were leaders in the sector after the addition of IP to the Conviction Buy List at Goldman. Overall, testimony on Capitol Hill was in focus for the majority of the day and caused the markets to fall from their highs and into red territory. As investors digested the rhetoric, the markets finished near their lows but investors still seemed undecided while the market traded in a similar fashion.

- ANR: Davenport Ups to Buy from Neutral
- IP: Buckingham Cuts to Neutral from Strong Buy
- NGD: RBC Capital Starts @ Sector Perform; Sets Tgt @ $7; Analyst Notes
- IP: Added to Conviction Buy List; Maintain Buy @ Goldman

Industrials

The Industrial sector chopped along in neutral territory until testimony on Capitol Hill began. The sector then saw a sharp decline which sent it to its lows. After finding support at the bottom, the Industrials lifted off the lows but still off its best levels. General industrials saw declines while aerospace names also saw losses. Electronics and heavy construction were also laggards in the sector. Railroads were leaders and marginally higher while support services also fared well on the day. Overall, testimony on Capitol Hill was in focus for the majority of the day and caused the markets to fall from their highs and into red territory. As investors digested the rhetoric, the markets finished near their lows but investors still seemed undecided while the market traded in a similar fashion.

- B: BB&T Cuts to Hold from Buy; Analyst Notes
- TTC: Raymond James Cuts to Mkt Perform from Outperform
- URI: Soleil Starts @ Sell; Sets Tgt @ $14; Analyst Notes
- PCR: Awarded New Task Orders in Iraq Worth $170M
- OC: Stifel Nicolaus Starts @ Hold; Analyst Notes
- USG: Stifel Nicolaus Starts @ Hold; Analyst Notes
- GE: Merrill Lynch Cuts to Neutral from Buy; Cuts Tgt to $28 vs $37.5
- SSCC: Goldman Sachs Ups to Buy from Neutral
- CNI: Goldman Sachs Ups to Buy from Neutral
- SLGN: Goldman Sachs Cuts to Neutral from Buy
- SI: WestLB Cuts to Add from Buy; Analyst Notes

Consumer Discretionary

The Consumer Discretionary sector saw buying interest at the open and chopped along higher until testimony began on Capitol Hill. After opening remarks, the sector lost ground through the rest of the morning and into the early afternoon hours. After bouncing off lows, support failed and the sector finished lower on the day. Retailers were all mixed while media names were also neutral. Travel & Leisure names were split with airlines outperforming and hotel resorts lagging. Overall, testimony on Capitol Hill was in focus for the majority of the day and caused the markets to fall from their highs and into red territory. As investors digested the rhetoric, the markets finished near their lows but investors still seemed undecided while the market traded in a similar fashion.

- RYL: Raymond James Ups to Strong Buy from Mkt Perform
- TOL: Raymond James Ups to Strong Buy from Mkt Perform
- CTX: Raymond James Ups to Outperform from Mkt Perform
- LEN: Raymond James Ups to Outperform from Mkt Perform
- PHM: Raymond James Ups to Outperform from Mkt Perform
- UA: Buckingham Starts @ Neutral; Analyst Notes
- LEN: Q3 EPS (56c) vs ($3.25) Beats (63c) Est
- FDS: Q4 EPS 67c vs 60c Beats 64c Est; Guidance In-Line with Consensus
- ARGN: Partnership w/Sealy for Heated and Cooled Sleep Systems
- FMCN: Roth Capital Starts @ Buy; Sets Tgt @ $51; Analyst Notes
- CHS: Piper Jaffray Cuts to Neutral from Buy
- GNTX: Calyon Cuts to Neutral from Add; Sets Tgt @ $17; Analyst Notes
- PNK: Soleil Starts @ Buy; Sets Tgt @ $13; Analyst Notes
- HTZ: Soleil Starts @ Hold; Sets Tgt @ $10; Analyst Notes
- BYD: Soleil Starts @ Buy; Sets Tgt @ $15; Analyst Notes
- AAP: Jesup & Lamont Starts @ Hold; Analyst Notes
- ORLY: Jesup & Lamont Starts @ Buy; Sets Tgt @ $36; Analyst Notes
- MPEL: JP Morgan Cuts to Neutral from Overweight; Analyst Notes
- NWL: SunTrust Starts @ Neutral; Analyst Notes
- DWA: Merrill Lynch Ups to Buy from Neutral
- CC: Jefferies Cuts to Underperform from Hold; Sets Tgt @ $1.25; Analyst Notes

Consumer Staples

The Consumer Staples sector chopped higher at the open and continued on that path for the first hours of trade. After testimony on Capitol Hill began, the sector saw buying interest slow and ushered the market and the sector lower. After reaching a daily bottom, the sector bounced higher before losing support and finishing lower. Beverages and food producers all performed well considering the circumstances. Personal goods and household goods were also sporting marginal gains. Homebuilders were laggards in the sector and all saw sharp declines. Overall, testimony on Capitol Hill was in focus for the majority of the day and caused the markets to fall from their highs and into red territory. As investors digested the rhetoric, the markets finished near their lows but investors still seemed undecided while the market traded in a similar fashion.

- NAII: Q4 Adj EPS 0c vs 4c EPS -100% Y/Y
- DCU: Q4 EPS 4c vs 4c EPS 0% Y/Y
- JSDA: Gabelli Ups to Hold from Sell; Analyst Notes
- AOB: Lazard Freres Cuts to Hold from Buy

Health Care

The Healthcare sector gapped higher at the open and added gains through the first hours of trade. After testimony on Capitol Hill began, the sector saw buying interest decline and ushered it to its lows of the day. After the testimony ended, the sector bounced higher and into neutral territory. Pharmaceuticals were mixed on the day. Biotechs were somewhat split with strength in large caps being counter acted with weakness in small caps. Medical device names were leaders on the day while supply names were split. Healthcare providers were laggards with only a few staying in the green. Overall, testimony on Capitol Hill was in focus for the majority of the day and caused the markets to fall from their highs and into red territory. As investors digested the rhetoric, the markets finished near their lows but investors still seemed undecided while the market traded in a similar fashion.

- TOMO: Developing First Mobile Radiation Therapy Solution
- CVVT: Appointment of Veronica Jing Chen as CFO
- CRXL: Receives $140M in Supply Contracts for Quinvaxem(R) and Hepavax-Gene(R)
- NHC: RBC Capital Cuts to Sector Perform from Outperform
- ROSG: Transfer of microRNA-Based Liver Cancer Therapeutics Project to Regulus
- AGN: Special Protocol Assessment Process for Prolacria(TM) Trial for Dry Eye
- MMSI: CEO Sees Trends Toward Double-Digit Growth The Year
- SNY: CSFB Cuts to Underperform from Neutral; Analyst Notes
- NVS: CSFB Ups to Neutral from Underperform; Analyst Notes
- IVGN: SG Cowen Starts @ Outperform; Analyst Notes
- POZN: CEO Presents at UBS Global Life Sciences Conference Today

Financials

The Financials sector chopped higher at the open and continued marginally higher until testimony on Capitol Hill began. After the opening remarks, the sector saw buying interest fade which sent it to its worst levels of the day. After reaching those levels, the sector bounced higher and back to the neutral levels. Large cap and small cap banks were mixed on the day while general finance were also neutral for the most part. Non-Life insurance saw marginal gains while life insurance were marginally lower. Overall, testimony on Capitol Hill was in focus for the majority of the day and caused the markets to fall from their highs and into red territory. As investors digested the rhetoric, the markets finished near their lows but investors still seemed undecided while the market traded in a similar fashion.

- O: Davenport Cuts to Neutral from Buy
- PBCT: Janney Cuts to Neutral from Buy
- KFN: Merrill Lynch Starts @ Neutral
- SOV: Friedman Cuts to Underperform from Mkt Perform; Analyst Notes
- FMD: Appointment of Kenneth Klipper as New CFO
- NTRS: Merrill Lynch Ups to Buy from Neutral
- VNO: Merrill Lynch Ups to Neutral from Underperform
- SLG: Merrill Lynch Ups to Buy from Underperform
- BXP: Merrill Lynch Ups to Neutral from Underperform
- BPO: Merrill Lynch Ups to Neutral from Underperform
- NLY: Merrill Lynch Ups to Buy from Neutral
- MTB: Baird Cuts to Underperform from Neutral; Sets Tgt @ $72; Analyst Notes
- STI: Baird Cuts to Neutral from Outperform
- ZION: Smith Barney Cuts to Hold from Buy; Keeps Tgt @ $47; Analyst Notes
- RF: Smith Barney Cuts to Sell from Hold; Keeps Tgt @ $11; Analyst Notes
- FIG: Keefe Bruyette Cuts to Mkt Perform from Outperform; Sets Tgt @ $13; Analyst Notes

Information Technology

The Technology sector saw early buying interest and sported solid gains in the first hour of trade. After reaching its best level, the sector saw a decline in buying interest after the opening remarks of the testimony on Capitol Hill. The selloff continued into the early afternoon hours when the sector bounced off its worst levels and rallied into the final hours. After testing the daily highs, the sector lost support and fell back to neutral levels. Large hardware and equipment names were all higher on the day but the strength was counteracted with weakness in the small caps. Service and software names were all mostly higher but again, countered with losses in smaller names. Overall, testimony on Capitol Hill was in focus for the majority of the day and caused the markets to fall from their highs and into red territory. As investors digested the rhetoric, the markets finished near their lows but investors still seemed undecided while the market traded in a similar fashion.

- COMS: Q1 Adj EPS 11c vs 3c Beats 7c Est
- NTGR: Acquisition of CP Secure, Inc.
- CAI: Sidoti & Co Starts @ Buy
- TOMO: Developing First Mobile Radiation Therapy Solution
- GLBC: Appointment of John Kritzmacher as CFO
- ATML: UBS Securities Starts @ Buy; Sets Tgt @ $4.75
- MKSI: Merrill Lynch Cuts to Underperform from Neutral
- LRCX: Merrill Lynch Cuts to Neutral from Buy
- KLAC: Merrill Lynch Cuts to Neutral from Buy
- SVVS: Jefferies Cuts to Hold from Buy; Cuts Tgt to $17 vs $20; Analyst Notes
- SMD: Receives AMEX Delisting Notice
- STM: JP Morgan Cuts to Neutral from Overweight
- EPIC: SG Cowen Cuts to Underperform from Neutral; Analyst Notes

Telecommunication Services

The Telecom sector gapped higher at the open and chopped along in positive territory until testimony began on Capitol Hill. After the opening remarks, selling pressures increased which sent it to its worst levels of the day. When testimony ended, the sector bounced back to test the best levels but lost support and finished lower. Overall, testimony on Capitol Hill was in focus for the majority of the day and caused the markets to fall from their highs and into red territory. As investors digested the rhetoric, the markets finished near their lows but investors still seemed undecided while the market traded in a similar fashion.

- GLBC: Appointment of John Kritzmacher as CFO

Utilities

The Utilities sector chopped along in positive territory over the first hours of trade. After testimony began on Capitol Hill, the sector saw selling pressure increase and traded down to its low of the day. With testimony over, the sector bounced back to test its best level but lost support and traded back to the lows. Electricity names outperformed the gas and water players but the sectors were mixed. Overall, testimony on Capitol Hill was in focus for the majority of the day and caused the markets to fall from their highs and into red territory. As investors digested the rhetoric, the markets finished near their lows but investors still seemed undecided while the market traded in a similar fashion.

- MMGW: Q1 EPS (5c) vs (1c) EPS -400% Y/Y
- ED: Argus Cuts to Hold from Buy; Analyst Notes

[la-onda]

Knobias Sector Commentary
Wednesday, September 24, 2008 16:00ET

Energy

The Energy sector saw some selling pressure at the open before bouncing back and trading in a tight range heading into the closing hours. Oil and gas producers were mostly higher while only a few small cap names saw weakness. Equipment and service names saw similar trading. Oil prices were elevated in the earlier hours but sold off throughout the day. Overall, testimony on Capitol Hill was in focus for a second day which slowed trading and left the markets in neutral territory for the majority of the session.

- SWSI: BMO Capital Starts @ Outperform
- BHI: CSFB Starts @ Outperform; Analyst Notes
- FTI: CSFB Starts @ Outperform; Analyst Notes
- SII: CSFB Starts @ Outperform; Analyst Notes
- NOV: CSFB Starts @ Outperform; Analyst Notes
- WFT: CSFB Starts @ Outperform; Analyst Notes
- SLB: CSFB Starts @ Neutral; Analyst Notes
- HAL: CSFB Starts @ Neutral; Analyst Notes
- OII: CSFB Starts @ Neutral; Analyst Notes
- CAM: CSFB Starts @ Neutral; Analyst Notes
- GLBL: CSFB Starts @ Neutral; Analyst Notes
- BJS: CSFB Starts @ Underperform; Analyst Notes

Materials

The Materials sector saw early selling pressure at the open and set a daily bottom in the early hours. After testing that bottom multiple times throughout the day, the sector bounced along in negative territory and closed in that range. Gold prices were higher but off from earlier levels. Chemicals were mixed in both specialty and commodity areas. Metals were mostly lower while miners were mixed. Overall, testimony on Capitol Hill was in focus for a second day which slowed trading and left the markets in neutral territory for the majority of the session.

- FUL: Q3 Adj EPS 35c; Rev $361.986M Meets 35c Est; Guidance Varies from Consensus
- WOR: Q1 Adj EPS 94c vs 27c Beats 55c Est
- ARG: BB&T Ups to Buy from Hold; Analyst Notes
- PCU: Merrill Lynch Cuts to Underperform from Neutral
- PX: Smith Barney Cuts to Hold from Buy; Cuts Tgt to $87 vs $104; Analyst Notes
- APD: Smith Barney Cuts to Hold from Buy; Cuts Tgt to $81 vs $118; Analyst Notes
- CDE: JP Morgan Cuts to Neutral from Overweight

Industrials

The Industrial sector saw selling pressure at the open before stabilizing and trading in a tight range for the remainder of the session. General industrials, transports, and engineering names were all mostly lower. Aerospace, support services, construction, electronic and defense names were all mixed. Overall, testimony on Capitol Hill was in focus for a second day which slowed trading and left the markets in neutral territory for the majority of the session.

- TRMB: Deutsche Bank Starts @ Buy; Sets Tgt @ $37.5; Analyst Notes
- NX: Dismissal of Shareholder Lawsuit
- HXL: ThinkPanmure Starts @ Buy; Sets Tgt @ $23; Analyst Notes
- ARW: CSFB Cuts to Neutral from Outperform
- AVT: CSFB Cuts to Neutral from Outperform
- CRDN: Stanford Group Ups to Buy from Hold

Consumer Discretionary

The Consumer Discretionary sector sold off at the opening bell before rebounding and chopping along in neutral territory for the remainder of the session. Retailers were mostly higher after oil prices declined but the strength was offset by weakness in travel and leisure names. Airlines were mostly laggards though CAL performed well after an upgrade at Argus. Media names were a bit mixed but did have some outperformers. Overall, testimony on Capitol Hill was in focus for a second day which slowed trading and left the markets in neutral territory for the majority of the session.

- GIL: UBS Securities Starts @ Buy
- EFII: Wins Patent Lawsuit Brought by Leggett & Platt
- GIL: Raymond James Cuts to Outperform from Strong Buy
- HOT: Morgan Stanley Cuts to Equal-weight from Overweight
- HTZ: Goldman Sachs Cuts to Neutral from Buy
- CAL: Argus Ups to Buy from Hold; Sets Tgt @ $22; Analyst Notes

Consumer Staples

The Consumer Staples sector saw selling pressure at the open before setting a bottom and chopping higher though the morning and afternoon session. Beverages and food producers were marginally changed. Tobacco and household goods performed much better while home builders were leaders in the sector. Autos and personal good were mixed while leisure was marginally changed. Overall, testimony on Capitol Hill was in focus for a second day which slowed trading and left the markets in neutral territory for the majority of the session.

- HSY: Added to Conviction Sell List; Maintain Sell @ Goldman
- ABC: Merrill Lynch Ups to Buy from Neutral
- ABV: CSFB Ups to Outperform from Neutral; Analyst Notes
- DYS: Deutsche Bank Ups to Hold from Sell; Sets Tgt @ $23

Health Care

The Healthcare sector chopped along in neutral territory through the morning session. Near mid day, the sector saw buying interest increase which helped it into positive territory and lead the market in gains for the day. Large caps where marginally changed in the pharmaceutical and biotech areas. Smaller caps were leaders and led the sector higher. Medical device names were split with large cap strength being countered with weakness in the smaller names. Medical supply saw were marginally higher while providers were marginally lower. Overall, testimony on Capitol Hill was in focus for a second day which slowed trading and left the markets in neutral territory for the majority of the session.

- UTHR: Jefferies Starts @ Buy; Sets Tgt @ $141; Analyst Notes
- MDZ: TD Securities Ups to Buy from Hold; Sets Tgt @ $16; Analyst Notes
- HWAY: BB&T Ups to Buy from Hold; Sets Tgt @ $26; Analyst Notes
- REGN: Baird Starts @ Neutral; Sets Tgt @ $25; Analyst Notes
- ITMN: JMP Sec Starts @ Mkt Outperform; Sets Tgt @ $35
- AFFY: Stanford Group Starts @ Buy; Sets Tgt @ $29; Analyst Notes

Financials

The Financial sector gapped higher before losing those gains and trading more in a choppy range for the remainder of the day in negative territory. Goldman Sachs was in the news after Warren Buffet took a large stake in the company. The news helped the sector gap higher but the move was short lived after the open. Large cap banks were mostly higher with the exception of Citigroup. Regional banks were mixed. General finance were mixed with Goldman leading the investment banks in gains while asset manager strength was offset with consumer finance weakness. Overall, testimony on Capitol Hill was in focus for a second day which slowed trading and left the markets in neutral territory for the majority of the session.

- COF: Calyon Ups to Add from Neutral; Ups Tgt to $60 vs $45; Analyst Notes
- GS: Buffet Takes $5B Stake in Goldman
- NYX: Goldman Sachs Cuts to Neutral from Buy
- CB: JP Morgan Cuts to Underweight from Neutral; Analyst Notes
- BBT: Friedman Cuts to Underperform from Mkt Perform; Analyst Notes
- NYB: Friedman Cuts to Underperform from Mkt Perform; Analyst Notes
- PBCT: Friedman Cuts to Mkt Perform from Outperform; Analyst Notes
- CYN: Friedman Cuts to Underperform from Mkt Perform; Analyst Notes
- TCB: Friedman Cuts to Underperform from Mkt Perform; Analyst Notes
- NYB: Merrill Lynch Starts @ Buy; Sets Tgt @ $18.5
- MER: HSBC Cuts to Neutral from Overweight; Analyst Notes
- WTNY: Keefe Bruyette Cuts to Mkt Perform from Outperform; Sets Tgt @ $25; Analyst Notes
- SLF: Genuity Ups to Buy from Hold
- GS: Enters $5B PIPE; Perpetual Preferred + Warrants
- AIG: Fox-Pitt Cuts to In-line from Outperform

Information Technology

The Technology sector gapped higher before losing that ground and setting a daily bottom. For the rest of the morning session, the sector chopped along in neutral territory before buying interest increased in the latter hours. After reaching daily highs, the sector lost the gains and traded back down neutral levels. Hardware names were mixed with strength in solar and semiconductors offset by weakness in telecom equipment names. Large cap software and internet names were higher while small caps and computer services mostly declined. Overall, testimony on Capitol Hill was in focus for a second day which slowed trading and left the markets in neutral territory for the majority of the session.

- WFR: RBC Capital Ups to Outperform from Sector Perform; Sets Tgt @ $53; Analyst Notes
- SPSN: Caris & Co Cuts to Above Average from Buy; Cuts Tgt to $2.5 vs $3.5; Analyst Notes
- QLGC: BMO Capital Cuts to Market Perform from Outperform
- EFII: Wins Patent Lawsuit Brought by Leggett & Platt
- TRAK: Deutsche Bank Cuts to Hold from Buy; Sets Tgt @ $18; Analyst Notes
- INFY: CSFB Cuts to Neutral from Outperform
- FFIV: Merrill Lynch Cuts to Neutral from Buy
- CLWR: Illinois Supreme Court Denies Sprint's Petition to Appeal
- JNPR: Merrill Lynch Cuts to Underperform from Neutral
- CNQR: Pacific Crest Cuts to Sector Perform from Outperform; Analyst Notes
- OTEX: Scotia Cap Cuts to Sector Perform from Sector Outperform
- VRSN: Am Tech Ups to Buy from Hold
- CREE: Avian Starts @ Negative; Analyst Notes

Telecommunication Services

The Telecom gapped lower at the open before chopping along in negative territory in the morning session. During afternoon trade, the sector saw a small increase in buying interest which helped it off the lows and back to neutral territory. Fixed line names were mostly higher while mobile names were laggards on the day. Overall, testimony on Capitol Hill was in focus for a second day which slowed trading and left the markets in neutral territory for the majority of the session.

- CN: Deutsche Bank Ups to Buy from Hold; Analyst Notes
- CHA: Deutsche Bank Cuts to Sell from Hold; Analyst Notes
- CHU: Deutsche Bank Ups to Buy from Hold; Analyst Notes
- ORBC: Agreement with Largest Canadian Wireless Carrier
- PACW: Friedman Cuts to Mkt Perform from Outperform; Analyst Notes

Utilities

The Utilities sector gapped lower at the open and chopped along in negative territory for the rest of the morning session. In afternoon trade, the sector saw buying interest increase which lifted it off the lows and into positive territory. Electricity names were mostly weak and saw declines while gas names performed a bit better. Overall, testimony on Capitol Hill was in focus for a second day which slowed trading and left the markets in neutral territory for the majority of the session.

- NRGP: Announces Fiscal 2009 Guidance
- ATG: Merrill Lynch Starts @ Neutral; Analyst Notes
- EXC: Wachovia Ups to Outperform from Mkt Perform; Analyst Notes
- ORA: Jesup & Lamont Ups to Buy from Hold; Sets Tgt @ $49.5; Analyst Notes
- PEG: Wachovia Cuts to Mkt Perform from Outperform
- PPL: Wachovia Cuts to Mkt Perform from Outperform

[berloga]

I listened to the brief address by President Bush yesterday at 9pm on ABC news. Well, he explained it quite simply, the government is going to use $700bln of the tax payers' money to buy assets associated with bad credit. The rationale is buying the assets while the market is depresses, wait out for better times and then resell the assets into a healthier business environment at a high market price to recover the money spent. Sounds simple, and this intervention is probably quite necessary, the question remaining how and when national and international investors will become ready to regain control over the ailing assets the government is trying to bail out. Any more thoughts on this?

[la-onda]

berloga, 3SoF Members,
please read:

Final-Bailout-White-Paperhttp://www.moneyandmarkets.com/files/documents/Final-Bailout-White-Paper.pdf


hope this helps

cheers
O.

[tokyopua]

FWIW, IBD called today a confirmed rally.  Which will be ironic if this bill doesnt pass cause the dow can lose another 1000 in a blink in that case.

[la-onda]

 Knobias Sector Commentary
Thursday , September 25, 2008 15:59ET

Energy

The Energy sector saw early buying interest at the open and chopped along in positive territory until another round of buying in the early afternoon hours sent it higher. During afternoon trade the sector attempted to hold that second leg higher. Large cap oil and gas producers were leaders on the day. Small caps were higher as well. Equipment and service names were mostly higher but didn't fare as well as producers. ATN was added to the no short list which caused a short covering in some of the Energy names. Overall, the TARP rescue package was in focus which overshadowed any negative data and helped the markets post solid gains.

- TPP: Operations Returning to Normal Following Hurricane Ike
- MIND: Announces New $25M Revolving Credit Facility
- BPL: Goldman Sachs Cuts to Sell from Buy
- WFT: JMP Sec Ups to Mkt Outperform from Mkt Perform

Materials

The Materials sector gapped higher at the open before losing that area and chopping lower. For the remainder of the morning session, the sector bounced back to the neutral level and attempted to hold that level into the close. Chemical names were split with specialty names outperforming commodity chemicals. Metals were mostly higher while miners were mixed. Gold names posted marginal gains while coal names were undecided. Overall, the TARP rescue package was in focus which overshadowed any negative data and helped the markets post solid gains.

- GG: Announces Closing of Gold Eagle Transaction
- SHLM: Licensing Agreement w/Inteva Products for Auto Interior Technology

Industrials

The Industrial sector saw chopped higher at the open and added to the gains through the afternoon session. General industrials were mostly higher. Aerospace names saw marginal gains. Transports were split with railroads seeing solid gains while others weren't as strong. Engineering was mixed while support services also saw undecided trading. Building material names were all mostly higher while heavy construction saw mixed trading. GE cut their earnings view and halted their buyback but still sported a solid gain. Overall, the TARP rescue package was in focus which overshadowed any negative data and helped the markets post solid gains.

- PAYX: Q1 EPS 41c vs 40c Meets 41c Est; Guidance Comments
- GE: Cuts Earnings Views, Halts Buybacks On Financial Woes
- ALOG: Receives $10M Order from L-3 Communications for EXACT(R) Systems
- TXI: Q1 EPS 38c vs 64c Misses 77c Est
- RX: Morgan Stanley Cuts to Underweight from Equal-weight
- ABB: Smith Barney Ups to Hold from Sell; Analyst Notes

Consumer Discretionary

The Consumer Discretionary sector gapped higher at the open and chopped along in positive territory for the remainder of the session. General retailers were all higher. Media names also sported solid gains. Travel and leisure names were mixed with some hotels seeing declines on downgrades at JP Morgan. Overall, the TARP rescue package was in focus which overshadowed any negative data and helped the markets post solid gains.

- NKE: Q1 Adj EPS $1.03 vs 92c Beats 92c Est
- BBBY: Q2 EPS 46c vs 55c Meets 46c Est
- SCHL: Q1 EPS ($1.3) vs (7c) Misses ($1) Est; Guidance In-Line with Consensus
- DLB: Deutsche Bank Cuts to Hold from Buy; Cuts Tgt to $38 vs $54; Analyst Notes
- MTN: Q4 EPS (29c) vs (88c) Misses (19c) Est; Guidance Comments
- MAR: JP Morgan Cuts to Neutral from Overweight
- HOT: JP Morgan Cuts to Neutral from Overweight
- CHH: JP Morgan Cuts to Underweight from Neutral
- OEH: JP Morgan Cuts to Underweight from Neutral
- GET: JP Morgan Cuts to Underweight from Neutral
- MHGC: Amended Joint Venture Agreement w/Boyd Gaming
- CBS: UBS Securities Starts @ Neutral; Sets Tgt @ $15.5
- JCP: Merrill Lynch Cuts to Underperform from Neutral
- CCL: Deutsche Bank Cuts to Sell from Buy; Analyst Notes

Consumer Staples

The Consumer Staples sector saw buying interest at the open and rallied higher in the first few minutes. For the rest of the session, the sector chopped along in a tight range in positive territory. Beverages, tobacco, and household goods all saw advances. Food producers were mostly higher though PPC warned off a significant loss in the fourth quarter. Personal goods saw gains after NKE's earnings beat while autos were mixed. Overall, the TARP rescue package was in focus which overshadowed any negative data and helped the markets post solid gains.

- CPRT: Q4 EPS 47c vs 40c Beats 46c Est
- NKE: Q1 Adj EPS $1.03 vs 92c Beats 92c Est
- MKC: Q3 EPS 52c vs 43c Beats 49c Est; Guidance Varies from Consensus
- PPC: Notifies Lender That it Expects Significant Loss in Q4
- RAD: Q2 EPS (27c) vs (10c) Misses (15c) Est; Guidance Below Consensus
- PPC: Merrill Lynch Cuts to Underperform from Buy
- RAD: John T. Standley Returns as Pres and COO; Frank G. Vitrano Named CFO
- ABC: Morgan Stanley Cuts to Underweight from Equal-weight

Health Care

The Healthcare sector gapped higher at the open and added to those gains through the first hours of trade. After reaching a daily high, the sector chopped along in positive territory through the remainder of the session. Pharmaceuticals and biotechs were all higher. Medical device names were marginally higher while medical supply companies saw decent gains. Healthcare providers were mixed. Upgrades and initiations at Needham and Stanford increased buying interest at the open. Overall, the TARP rescue package was in focus which overshadowed any negative data and helped the markets post solid gains.

- MRX: Stanford Group Starts @ Hold
- PRX: Stanford Group Starts @ Hold
- MYL: Stanford Group Starts @ Buy; Sets Tgt @ $16; Analyst Notes
- CEPH: Stanford Group Starts @ Buy; Sets Tgt @ $96; Analyst Notes
- TEVA: Needham Starts @ Strong Buy; Sets Tgt @ $61
- WPI: Needham Starts @ Hold
- MYL: Needham Starts @ Strong Buy; Sets Tgt @ $19
- FRX: Started At Sell By Standford
- LGND/PCOP: Ligand to Acquire Pharmacopeia for $70M
- PRX: Needham Starts @ Strong Buy; Sets Tgt @ $21
- TEVA: Stanford Group Starts @ Buy; Sets Tgt @ $55
- OMPI: Stanford Group Starts @ Buy; Sets Tgt @ $13
- ENDP: Stanford Group Starts @ Buy; Sets Tgt @ $28; Analyst Notes
- ALOG: Receives $10M Order from L-3 Communications for EXACT(R) Systems
- BIIB: Lazard Freres Ups to Buy from Hold
- VRTX: JMP Sec Ups to Mkt Outperform from Mkt Perform; Analyst Notes
- ALOG: Q4 Adj EPS 55c vs 48c Misses 58c Est

Financials

The Financial sector gapped higher at the open and saw gains through the morning hours and into the early afternoon session. After reaching a daily high, the sector consolidated but still posted a gain. Large cap banks were leaders on the day and posted solid returns. Small cap banks were more mixed. Investment banks and asset managers were mostly higher while consumer finance names were laggards on the day. Both nonlife and life insurance companies posted decent returns. Overall, the TARP rescue package was in focus which overshadowed any negative data and helped the markets post solid gains.

- FIF: Q4 EPS 49c vs 50c Misses 50c Est
- BK: Fitch Revises Bank of New York Mellon Outlook to Stable; Affirms Ratings
- HST: JP Morgan Cuts to Underweight from Neutral
- JEF: Keefe Bruyette Cuts to Underperform from Mkt Perform; Sets Tgt @ $17; Analyst Notes
- LYG: Deutsche Bank Cuts to Sell from Hold; Analyst Notes

Information Technology

The Technology sector gapped higher at the open and continued to add to those gains throughout the day. Hardware and equipment names were all higher. Semiconductors saw solid returns while telecom and computer equipment also saw decent gains. Software and service names also advanced. ORCL was in the news after announcing a deal to sell computers bundled with their software already installed. The announcement noted that HPQ would make the machine. Overall, the TARP rescue package was in focus which overshadowed any negative data and helped the markets post solid gains.

- RHT: Q2 Adj EPS 20c vs 17c Beats 18c Est
- ORCL: To Sell Computer Bundled With Its Software
- WFR: JMP Sec Ups to Mkt Outperform from Mkt Perform; Analyst Notes
- NTAP: Calyon Cuts to Neutral from Add; Cuts Tgt to $21 vs $28; Analyst Notes
- POWI: Court Rules that Patents are Enforceable Against Fairchild Semiconductor
- ALU: WestLB Ups to Hold from Sell; Analyst Notes
- ERIC: WestLB Ups to Hold from Reduce; Analyst Notes
- ASML: Caris & Co Cuts to Above Average from Buy; Cuts Tgt to $22 vs $28; Analyst Notes

Telecommunication Services

The Telecom sector saw early buying interest and added to those gains throughout the remainder of the day. Fixed line names were mostly higher. Mobile names were a bit more mixed but still sported decent returns. Heavyweight, T, saw a solid return which helped the sector advance. Overall, the TARP rescue package was in focus which overshadowed any negative data and helped the markets post solid gains.

- VZ: Verizon and Nokia Siemens Networks Set New Record for 100 Gbps Optical Transmission

Utilities

The Utilities sector gapped higher at the open and added to those gains through the first hour. After a quick consolidation, the sector resumed adding gains and finished near the highs of the day. Electricity names were all higher on the day while gas and water names also posted solid gains. Overall, the TARP rescue package was in focus which overshadowed any negative data and helped the markets post solid gains.

- FPL: Jesup & Lamont Starts @ Hold; Sets Tgt @ $60; Analyst Notes
- PSD: Announces Plan to Buy 'Mint Farm' Natural Gas-Fired Power Plant in Longview

cheers from SGP
Oliver

[Terliso]

What an ugly chart,....be prepare for another breakdown in the market, I believed the Dow Jones will go to 9,000... that's sad to say but I think it will.

[la-onda]

fully agree Terliso...

fyi:
American Banker Discount Window Borrowing Jumps to $262 Billion
By Steven Sloan September 26, 2008
Article below From:  http://jessescrossroadscafe.blogspot.com/2008/09/goldman-and-morgan-stanley-help-drive.html

WASHINGTON — During another turbulent week on Wall Street, lending through the Federal Reserve Board's discount window skyrocketed to $262.3 billion on Wednesday, thanks to new lending programs unveiled during the week.

It was the second record in as many weeks and more than double from the previous high water mark.

The heaviest lending was centered on the primary dealer credit facility, which was established in March to give investment banks access to the discount window. The Fed eased terms on the facility on Sunday when it approved requests from Goldman Sachs and Morgan Stanley to convert to bank holding companies.

The Fed said Goldman and Morgan, the last of the major investment banks, could borrow on the same terms as commercial banks and with the same collateral. In response, lending through the PDCF totalled $105.662 billion on Wednesday, from $59.8 billion a week earlier.

Commercial banks were also very active at the discount window. Loans to banks increased 17.7%, to $39.9 billion, a new record.

Meanwhile, the Fed issued loans to weak banks for the second week in a row. These loans increased 5.6%, to $19 million on Wednesday.

The Fed's efforts to backstop the market for money market mutual funds appears to have been met with initial success. The Fed said Friday it would lend against asset backed commercial paper held by the funds. It distributed $72.7 billion by Wednesday.

The central bank also said American International Group Inc., the insurance giant the Fed bailed out on Sept. 16, drew $44.6 billion of its $85 billion government loan by Wednesday. A week earlier, the company had tapped $28 billion of the loan.

As the Fed continues to boost and widen its lending programs, concern has grown that too much of its balance sheet is being dedicated to helping banks survive the credit crunch. With these concerns in mind, the Fed grew its balance sheet by 22%, to $1.2 trillion.

The Fed was helped in these efforts by the Treasury Department, which began a program earlier this month to sell Treasury bills and send the cash generated to the Federal Reserve Bank of New York. The central bank said it received $159.8 billion from the Treasury through this program.