The market review for February 18

well as the strong macroeconomic statistics. Thus, the number of new buildings in January increased by 2,8% – to 591 thousand, while analysts had expected growth of only up to 580 thousand as not to upset the expert and the index of U.S. industrial output in January – its increase was 0,9% which was higher projections by 0,2%. At the American sites remain uneasy situation: the bidders to focus attention on a strong data makrostatistiki, then the problems of the EU, then the slowing Chinese economy – confidence in the bright future of the U.S. market there. Nevertheless, among most American companies has become a bit more expensive.

As a result of trading on February 17 2010. Dow Jones index rose 40.43 points (0.39%) – to 10,309.24 points, NASDAQ rose by 12.1 points (0.55%) – to 2,226.29 points, S & P rose to 4,64 points (0.42%) and amounted to 1,099.51 points.

Among retailers, a significant increase capitalization stood out a chain of stores selling organic food Whole Foods Markets Inc. The company raised its profit forecast for the current year to 1,2 per share, bringing the experts JP Morgan Chase & Co made a recommendation to increase the proportion of securities Whole Foods Markets in the portfolio. At the end of the day increase in the value of the company amounted to 12,55%, Wal-Mart Stores Inc. – 0,93%, Kroger Co. – 0,7%, Sears Holdings Corp. – 2,85%, Costco Wholesale Corp. – 0,63%, Target Corp. – 1,36%. Sure looked The Home Depot Inc. (1.97%): Oppenheimer analysts increased their forecast for the retailer to the Securities “above market”.

At 5,02% up quotes a world leader in the manufacture of agricultural machinery Deere & Co. after the company reported on the profit for the I quarter of this fiscal year, amounting to 57 cents per share, which was significantly higher than estimates of industry analysts, who expected 19 cents per share. Reducing costs allowed Deere to achieve such strong results, despite the reduction in revenue of 6%. In addition, the company’s revised forecast of sales in 2010. – Now they are waiting for their growth at 6% instead of falling by 4%. Quotations of another manufacturer of agricultural machinery Caterpillar Inc. increased by 0,67%.

In the technology sector soaring shares were distinguished manufacturer of memory modules SanDisk Corp. (5.41%). The reason for their purchases was the promulgation of recommendations analyst JP Morgan Atif Malik increase the share of SanDisk securities in investment portfolios. Citigroup Inc. immediately began to analyze a number of technology companies: Dell Inc. (-0,21%), McAfee Inc. (-0.12%) And Symantec Corp. (-0.88%) Received a recommendation to “hold”, Citrix Systems Inc. (0.62%) – “sell”. The most attractive for purchase at the bank found companies such as Microsoft Corp. (+0,85%), VeriSign Inc. (+2,16%), Check Point Software Technologies Ltd. (0.24%) and Adobe Systems Inc. (1.63%).

Citigroup itself has grown by 3.02% against the background of news that hedge fund Paulson & Co., Belonging to the famous billionaire John Paulson, increasing its stake in the bank. As for the other major U.S. banks, they mostly decreased quotes: JP Morgan Chase & Co. lost 0,07%, Goldman Sachs Group Inc. – 0,09%, Wells Fargo & Co – 0,22%, US Bancorp – 0,54%, The Bank of New York Mellon Corp. – 0,07%.

In the oil and gas industry leadership position maintained Anadarko Petroleum Corp. (1.31%): Investors have continued to win back news of the sale of Anadarko Japanese Mitsui stake in Marcellus Shale natural gas project for U.S. $ 1.4 billion remaining oil and gas companies dropping. XTO Energy Inc. finished the trading session loss of 0,97% of the capitalization, Occidental Petroleum Corp. – 0,3%, Chevron Corp. – 0,21%, Exxon Mobil Corp. – 0,78%, ConocoPhillips – on 1,24%. Additional pressure on the last quotation has reported that Warren Buffett-owned investment company Berkshire Hathaway Inc. reduced investments in a number of U.S. companies and sold, including 34% of its securities ConocoPhilips.

Funds are needed for redemption W. Buffett freight railroad company Burlington Northern Santa Fe Corp. The transaction is valued at 44 billion dollars, the acquisition could be the biggest in the history of Berkshire. W. Buffett already owns 22.6% stake in the railway company, to purchase the remaining 77.4% he received permission in December. Owns the most extensive network of railroads in the U.S. Union Pacific Corp. lost in the price of 0,28%, Norfolk Southern Corp. – 1,26%.

They waited correction steel companies, they are not saved even while continuing rise in prices for industrial metals. The biggest decline has demonstrated Southern Copper Corp. (-3.47%), Fewer losses suffered Freeport-McMoRan Copper & Gold Inc. (-1,08%), United States Steel Corp. (-0,57%), AK Steel Holding Corp. (-0,35%), Alcoa Inc. (-1.02%) And Newmont Mining Corp. (-0.38%).

In the U.S. market on Wednesday was a chance to confidently pass the maximum levels in February this year, but he did not use them. Investors are cautious, and it is justified, especially given the rapid growth of the previous day. Currently, the situation is very ambiguous, since it is equally probable as represented consolidation of the achieved levels and movement up or down. In addition to macroeconomic statistics is hardly something to be able to seriously affect the course of trading, but the one on Feb. 18 will be published abound.

Advance Auto Parts Inc. (AAP:US): The second-largest U.S. auto parts retailer posted fourth-quarter earnings excluding some items of 39 cents a share, trailing the average analyst estimate by 15 percent, according to Bloomberg data.

Analog Devices Inc. (ADI:US) added 3.4 percent to $29.35. The maker of chips used in cars, consumer electronics and phone networks forecast second-quarter earnings of 48 cents to 51 cents a share, beating analysts’ estimates.

Applied Materials Inc. (AMAT:US) advanced 0.8 percent to $13.10. The world’s largest producer of chipmaking equipment forecast second-quarter sales and profit that topped analysts’ estimates, indicating that semiconductor companies are beginning to increase orders.

Avis Budget Group Inc. (CAR:US) tumbled 8.3 percent to $12.20. The rental-car company reported a fourth-quarter loss that was 14 percent wider than the average of analysts’ estimates, according to Bloomberg data.

Deere & Co. (DE:US) rose 0.7 percent to $56.89. The world’s largest maker of farm equipment was raised to “overweight” from “neutral” at JPMorgan Chase & Co., which cited signs of recovering demand.

Garmin Ltd. (GRMN:US) added 2.8 percent to $33.91. The maker of portable navigation devices gained after rival TomTom NV (TOM2:NA) said revenue unexpectedly rose in the last three months of the year, partly on higher sales volumes in North America.

Hewlett-Packard Co. (HPQ:US) added 1.2 percent to $50.70. The world’s largest personal-computer maker increased its full- year earnings forecast after first-quarter profit topped analysts’ estimates.

Las Vegas Sands Corp. (LVS:US) fell 5.5 percent to $16.50. The casino company expanding in Macau and Singapore reported fourth-quarter earnings that met analysts’ estimates as the booming Chinese gambling market countered a U.S. slump.

Nucor Corp. (NUE:US): The second-largest U.S.-based steelmaker was raised to “neutral” from “underperform” by Bank of America Corp., which increased its forecast for 2010 steel prices.

Priceline.com Inc. (PCLN:US) rose 7.1 percent to $228.05. The online travel agency forecast first-quarter profit excluding some items of $1.54 a share at least, beating the average analyst estimate of $1.40 in a Bloomberg survey.

Wal-Mart Stores Inc. (WMT:US) slipped 1.4 percent to $53.30. The world’s largest retailer reported fourth-quarter comparable-store sales that trailed its forecast after cutting prices on groceries and consumer electronics.

Wellcare Health Plans Inc. (WCG:US) fell 13 percent to $28. The manager of U.S. Medicare and Medicaid benefits forecast profit and sales for the current fiscal year that missed analysts’ estimates in a Bloomberg survey.

Zenith National Insurance Corp. (ZNT:US) surged 27 percent to $36.75. The workers’ compensation specialist is nearing an agreement to be bought by Fairfax Financial Holdings Ltd., the Canadian insurer run by Prem Watsa, for $38 a share, the companies said.

Key earnings/guidance since yesterday’s close:
-Hewlett-Packard (HPQ) beat by $0.04, ex items, in Q1 (Jan) on better-than-expected revenue of $31.2 bln (First Call consensus $30.0 bln). The company issued upside Q2 guidance, seeing EPS of $1.03-$1.05 (consensus $1.03) and revenue of $29.4-$29.7 bln (consensus $29.0 bln). It also raised its 2010 guidance above expectations, now seeing EPS of $4.37-$4.44 (consensus $4.37), up from $4.25-$4.30, and revenue of $121.5-$122.5 bln (consensus $120.0 bln), up from $118.0-$119.0 bln. Shares of HPQ are up over 1% premarket.
-NVIDIA (NVDA) beat by $0.03 in Q4 on better-than-expected revenue of $982.5 mln (consensus $957.2 mln) and non-GAAP gross margin of 44.7% (consensus 41.7%). The company said while the yield of chips made using the latest 40nm process has improved significantly, demand continues to exceed its “constrained” supply. It issued upside Q1 guidance, seeing revenue flat sequentially, which translates to ~$982.5 mln (consensus $931.2 mln) and GAAP gross margin of 44-45%, which is not comparable to the non-GAAP consensus of 41.4%. Despite the “beat and raise,” shares of NVDA are down 4% premarket due to the supply constraints, which were a big topic of conversation on the conference call.
-Applied Materials (AMAT) reported in-line EPS in Q1 (Dec), despite better-than-expected revenue of $1.85 bln (consensus $1.75 bln). The company issued upside Q2 guidance, seeing EPS of $0.17-$0.22 (consensus $0.15) and revenue up 15-25% sequentially, which translates to $2.13-$2.31 bln (consensus $1.78 bln). It also raised its FY10 revenue guidance, now seeing growth of “greater than 50%,” which translates to greater than $7.52 bln (consensus $7.33 bln), up from growth of “more than 30%.” Shares of AMAT are up nearly 1% premarket.
-Wal-Mart (WMT) beat by a nickel in Q4 (Jan), despite missing on the top line — $113.7 bln vs. $114.4 bln consensus — and reporting a weaker-than-expected comp of -1.6% (consensus -0.1%). The midpoint of the company’s Q1 EPS range came in below expectations — $0.81-$0.85 vs. $0.85 consensus — while it expects comps in the quarter to be (1)-1%. It issued in-line FY11 EPS guidance of $3.90-$4.00 (consensus $3.97). Shares of WMT are indicated 1.5% lower premarket.
-Daimler (DAI) reported a net loss of €352 mln in Q4 against expectations for a net gain of €277 mln, despite modestly better-than-expected EBIT of €599 mln (consensus €594 mln). The company also scrapped its dividend for 2010, sending shares more than 6% lower premarket.

Technical Perspective: The extension of the early week breakout in the S&P 500 saw only modest follow through yesterday, but the sideways consolidation near the highs implied little selling pressure, with a posture above 1095/1094 in early gyrations leaving it positioned for additional short-term gains. Initial resistance is in the 1104/1105 area, with a secondary barrier at 1108/1109 (50-day sma/congestion).

CALENDARS
Key economic data:
-Initial Jobless Claims for the week ended Feb. 13 (consensus 438,000; prior 440,000) and Continuing Claims for the week ended Feb. 6 (consensus 4.500 mln; prior 4.538 mln) at 8:30 a.m. ET
-January PPI m/m (consensus 0.8%; revised prior 0.4%) and y/y (consensus 4.4%; prior 4.4%) at 8:30 a.m. ET
-January core PPI, which excludes food and energy, m/m (consensus 0.1%; prior 0.0%) and y/y (consensus 0.8%; prior 0.9%) at 8:30 a.m. ET
-February Philadelphia Fed business outlook survey at 10:00 a.m. ET (consensus 17.0; prior 15.2)
-January Leading Indicators at 10:00 a.m. ET (consensus 0.5%; prior 1.1%)

Federal Reserve/Treasury:
-Secretary Geithner speaks on tax credits at 2:45 p.m. ET
-Governor Duke speaks at 6:00 p.m. ET
-Atlanta President Lockhart speaks on the U.S. economic outlook at 7:00 p.m. ET
-St. Louis President Bullard speaks on the U.S. economy at 8:30 p.m. ET

Key Note/Bond auction results:
-None

Key industry conferences:
-Barclays Industrial Select Conference (Day 2 of 2) — Companies presenting: DE, MMM, TNB, ITW, NOC, HUBB, SPW, CBE, ROP, MDR, PH, CE, DAN, IR, OI, PX, URS
-Consumer Analyst Group of New York (CAGNY) Conference (Day 4 of 5) — Companies presenting: CL, MO, PEP, PG, EL

Earnings:
-45 companies are confirmed to report today after the close, including Dell (DELL)

My blog find on following phrases:

• "gap open"
• linda raschke + multiple roc
• merry christmas
• how to become more ambitious
• daytrading documentaries
• black and decker strategies

Similar articles:

• The market review for June 14
• The market review for April 9
• The market review for February 19
• The market review for December, 1st
• Market review for August, 27th