MIDDAY LUNCH

Dow 10059.71  +49.98, Nasdaq 2123.81  +3.84, S&P 1053.49  +4.57 

Financial are trading +1.1% higher today, led by bank stocks.  The KBW Bank index is up +1.4%.

Shares of Monsanto (MON) 52.06  -3.84, -6.89% are lower after the street was disappointed with the company’s guidance.

Saks (SKS) 8.08 +1.48, +22.42% are higher after a report that a private equity firm may offer to buy the company for $11.00 per share.

Good news for the housing market, today the Standard & Poor's/Case-Shiller 20-city home price index was released showing that home prices increased +1% in June from May and increase +4.2% from a year ago.

MORNING COFFEE

3M To Buy Attenti. 3M announced that they are purchasing Attenti Holdings SA for $230 million in cash.  The company makes technology used to remotely monitor criminals and elder care patients.

India’s Economy On A Roll. India's economy expanded +8.8% in Q2 which was the fastest pace in over two years. The growth may cause the government to raise interest rates to keep inflation in check.

Upgrades

Comerica (CMA): Robert W. Baird raised their rating from Neutral to Outperform and placed a target price of $42.00 on the company.

Bristol-Myers (BMY): Jefferies raised their rating from Neutral to Buy and raised their target price from $28.80  to $30.00.

Earning Reports

Dollar General (DG): reported quarterly earnings of $0.42 beating estimates by +$0.04.

·         Futures: Dow -0.2%. S&P -0.3%. Nasdaq -0.3%. Crude -1.2% to $73.83. Gold -0.3% to $1235.70.

·         Asia: Japan -3.5% to 8824. Hong Kong -1.0% to 20536. China -0.5% to 2639. India -0.3% to 17971.

·         Europe: London -0.9%. Paris -1.1%. Frankfurt -0.7%.

CLOSING BELL

Dow 10009.73  -140.92, Nasdaq 2119.97  -33.66, S&P 1048.92  -15.67 

Stocks traded lower from the get go this morning, with the losses accelerating as the day wore on.  There was a lack of leadership in the market today, as traders were unwilling to jump into the market prior to the important jobs report due out on Friday.

Merger news continued today with Sanofi-Aventis (SNY) 28.63 -0.29, -1.0% making public their $18.5 billion offer for Genzyme (GENZ) 69.91 +2.29, +3.39%.  Genzyme immediately rejected the offer.

3M (MMM) 79.65 -1.35, -1.67% announced that they will purchase Cogent (COGT) 11.09 +2.18, +24.40% for $430 million or $10.50 a share.

In economic news today Personal Income increased +0.2% in-line with estimates, while Personal Spending rose +0.4% which beat estimates.

President  Obama spoke to the press today after meeting with his economic team, but his press conference didn’t give any detailed plans on how he and his staff will address the slowing economy.

Advancing Sectors: None
Declining Sectors: Financials -2.2%, Industrials -1.6%, Consumer Discretionary -1.8%, Energy -1.6%, Utilities -1.4%, Materials -1.4%, Tech -1.2%, Telecom -1.2%, Health Care -1.1%, Consumer Staples -0.9%

MIDDAY LUNCH

Dow 10084.50  -66.04, Nasdaq 2137.44  -16.20, S&P 1057.22  -7.37 

Stocks have fallen since the open and are near the session lows.  There is a lack of leadership in today’s trading as traders appear to be taking a wait and see approach ahead of some key economic reports due this week, which includes the job numbers.

With regards to economic data, Personal Income increased +0.2% in-line with estimates, while Personal Spending rose +0.4% beating estimates.

President Obama is scheduled to talk about the economy this afternoon after meeting with his economic team.  To make any impact on the markets he will have to lay out a specific plan on how he will improve the economy and not blame the previous administration.

The worst performing sectors today are conglomerates -0.92% and Financials -0.82%.

MORNING COFFEE

Sanofi-Anventis Sends Letter to Genzyme.  Sanofi-Anventis (SNY) reiterated their offer to buy Genzyme (GENZ) for $69.00 per share or $18.5 billion in a letter yesterday.  CEO Henri Termeer said the letter was sent “after several unsuccessful attempts to engage Genzyme's management in discussions." Sanofi has also hinted it may opt for a hostile bid if Genzyme doesn’t respond.

Disney & Time Warner Nearing Agreement. Walt Disney (DIS) and Time Warner Cable (TWC) are nearing an agreement over programming fees.  The agreement needs to be reached by midnight on Thursday to prevent a threatened TV blackout. If a deal isn't reached Time Warner Cable subscribers will lose access to Disney, ESPN and ABC.

Downgrades

Lockheed Martin (LMT): Argus lowered their rating from Buy to Hold.

Intel (INTC): Charter Equity lowered their rating from Buy to Market Perform.

AutoZone (AZO): Morgan Joseph lowered their rating from Buy to Hold.

Coverage Reiterated/Price Target Changed

Weyerhaeuser (WY): RBC Capital Markets reiterated their Sector Perform rating and lowered their target price from $45.00 to $18.00.

Intel (INTC): RBC Capital Markets reiterated their Outperform rating and lowered their target price from $30.00 to $26.00.

·         Futures: Dow 0.0%. S&P +0.1%. Nasdaq +0.2%. Crude -0.4% to $74.88. Gold -0.05% to $1237.30.

·         Asia: Japan +1.8% to 9149. Hong Kong +0.7% to 20737. China +1.6% to 2653. India +0.2% to 18032.

·         Europe: London closed. Paris -0.5%. Frankfurt 0.0%.

MORNING COFFEE

Bernanke Takes The Spotlight. Wall Street will be watching closely as Fed Chairman Ben Bernanke delivers his outlook for the U.S. economy this morning at a symposium in Jackson Hole, Wyoming. Bernanke will need to send a positive message about the economy while also outlining the steps the Fed would take if the economy continues to slow.

Berkshire Buys Wesco Financial. Warren Buffett’s Berkshire Hathaway (BRK.A/BRK.B) announced plans to buy the remaining 19.9% of Wesco Financial (WSC) that it doesn't already own in a transaction valued at around $514 million. Wesco is run by Berkshire Vice Chairman Charlie Munger.  Shares of Wesco were up +11.8% on the announcement.

Downgrades

General Dynamics (GD): Argus lowered their rating from Buy to Hold.

Coverage Initiated

Sturm Ruger (RGR): Merriman initiated coverage with a Neutral rating.

Coverage Reiterated/Price Target Changed

J. Crew (JCG): Brean Murray reiterated their Buy rating and lowered their target price from $53.00 to $42.00.

J. Crew (JCG): Janney Montgomery Scott reiterated their Buy rating and lowered their target price from $41.00 to $37.00.

PG&E (PCG): Argus reiterated their Buy rating and raised their target price from $49.00 to $56.00.

OmniVision (OVTI): Oppenheimer reiterated their Outperform rating and raised their target price from $23.00 to $27.00.

Earning Reports

J Crew Group (JCG): Reported Q2 EPS of $0.53 beating estimates by +$0.07 on revenue of $408 million.

Novell (NOVL): Reported FQ3 EPS of $0.06 missing estimates by -$0.01 on revenue of $199 million.

·         Futures: Dow +0.3%. S&P +0.3%. Nasdaq +0.4%. Crude +0.1% to $73.42. Gold +0.1% to $1238.50.

·         Asia: Japan +0.9% to 8991. Hong Kong -0.1% to 20597. China +0.3% to 2611. India -1.3% to 17998.

·         Europe: London -0.1%. Paris flat. Frankfurt -0.1%.

MIDDAY LUNCH

Dow 10054.38  -12.19, Nasdaq 2138.82  -3.98, S&P 1054.94  -0.39 

Stocks started the day higher then fell into the red and are now trading a session lows.

Shares of Guess? (GES) 33.91 -4.32, -11.30% are under pressure after the company beat their earnings report  reporting earnings of $0.72 beating estimates by +$0.04.  Some analysts had expected a blowout quarter, like the company has had in the past and were disappointed by the results.

Jo-Ann Stores (JAS) 41.92 +5.10, +15.85 are rallying today after the company reported earnings that rocketed past analysts estimates.  The company reported earnings of $0.20 beating estimates by +$0.18.

Initial Jobless Claims for the week of Aug. 21^st came in at 473,000 beating economist estimates of 485,000 new claims for unemployment.  While the number did beat estimates new claims still remain high.  The four-week average for new claims, which is a better measure of labor market trends rose 3,250 to 486,750, which is the highest since late November.

MORNING COFFEE

Google vs. Skype. Google (GOOG) announced that they are now offering VOIP calling through Gmail.  The service will compete with Skype and allow users to call landlines and cell phones in North America via the email service. Google will offer the service internationally and to businesses in the future.

Coverage Initiated

FedEx (FDX): Dahlman Rose initiated coverage with a Buy rating and target price of $97.00.

UPS (UPS): Dahlman Rose initiated coverage with a Hold rating.

Coverage Reiterated/Price Target Changed

Jo-Ann Stores (JAS): Wedbush reiterated their Outperform rating and raised their target price from $51.00 to $56.00.

Guess? (GES): Brean Murray reiterated their Buy rating and lowered their target price from $56.00 to $50.00.

Accenture (ACN): Kaufman Bros reiterated their Sell rating and lowered their target price from $37.00 to $34.00.

Earning Reports

Guess? (GES): Reported Q2 EPS of $0.72 beating estimates by +$0.04 on revenue of $577 million.

JDS Uniphase (JDSU): Reported FQ4 EPS of $0.15 beating estimates by +$0.01 on revenue of $398 million. 

·         Futures: Dow +0.2%. S&P +0.3%. Nasdaq +0.25%. Crude +1.25% to $73.43. Gold +0.2% to $1243.80.

·         Asia: Japan +0.7% to 8906. Hong Kong -0.1% to 20612. China +0.3% to 2603. India +0.3% to 18226.

·         Europe: London +0.8%. Paris +0.5%. Frankfurt +0.5%.