Quote of the Day

"Increased borrowing must be matched by increased ability to repay. Otherwise we aren't expanding the economy, we're merely puffing it up." -- Henry C. Alexander


Morning News of Note:

• EU Economy: French referendum on EU constitution defeated; 55% of voters were against referendum (Sunday) // EU12 May consumer confidence (15) vs (13) in Apr, industry confidence (11) vs (9) in Apr, services confidence 10 vs 9 in Apr, retial confidence unch at (8) // UK May Gfk consumer confidence (1) vs 0 in Apr // Ifo economist Gernot Nerb said ECB should consider cutting interest rates to help rekindle EU economic growth -- Handelsblatt (Saturday)
• BBBY: Bed Bath & Beyond Builds Up A Following Among Hedge Funds Some star hedge-fund managers have been snapping up shares of Bed Bath & Beyond Inc. like desperate housewives at a white sale. Once a highflier, Bed Bath shares have come down to earth, trading around $40 for much of the past three years. Some investors have questioned whether the company is taking too long to open new stores, while others have focused on turnarounds in the retail sector, even as Bed Bath churns out dependable profits. But a number of major hedge funds with stellar track records have been buying up Bed Bath shares, sensing that the stock has fallen into the bargain bin. (Full Story) WSJ
• AMD INTC: AMD to Unveil New Line of Chips To Boost PC Speed Advanced Micro Devices Inc. is introducing its first dual-processor chips for personal computers, a move highlighting differences with Intel Corp. in marketing the highly touted technology. Such "dual-core" chips, as they are called, combine two electronic brains on a single piece of silicon to boost computing performance. Only a small number of programs have been rewritten to apply both brains to a single task. But dual-core products can improve the way computers do multiple chores at once, such as downloading music while creating a document. (Full Story) WSJ
• GRMN: Tracking Garmin's Rival GARMIN HAS PROVEN ITSELF AN INNOVATOR and a nimble competitor in the market for navigation devices that use the satellite-based Global Positioning System. In cars, boats and planes, Garmin's dashboard-mounted displays show you where you are and tell you where to go. Rivals come and go, but they haven't slowed Garmin's progress. Sales rose 33% last year to $763 million, while earnings climbed 26%, in constant dollars, to $1.89 a share. But investors keep changing direction on Garmin shares (ticker: GRMN). Over the course of 2004, the Nasdaq-listed stock swerved from 58 to 30 and then back above 62. This year, it has skidded back to about 44, giving the Olathe, Kan.-based firm an enterprise value of better than $4 billion, after backing out the company's $600 million in cash. (Full Story) BARRONS
• NFLX WMT: A Force Too Strong, Even for Wal-Mart WHEN Wal-Mart announced recently that it was giving up on the mail-order movie rental business and directing its subscribers to Netflix, the implication seemed clear: Wal-Mart had stumbled. But the company's apparent capitulation came at roughly the same time as another interesting piece of movie-related news: a copy of the new "Star Wars" movie surfaced on the Internet more or less simultaneously with its theatrical release. Dan Glickman, president of the Motion Picture Association of America, put that development in this perspective: "The unfortunate fact is this type of theft happens on a regular basis on peer-to-peer networks all over the world." (Full Story) NY Times
• RIMM: RIM rival Good wins improved Cingular sales deal Cingular Wireless, the No. 1 U.S. mobile phone service provider, will begin directly selling Good Technology's wireless e-mail service for the first time, the companies said on Tuesday. Closely held Good said it believes the agreement will help it win more wireless e-mail users, a sector currently dominated by BlackBerry maker Research In Motion Ltd. (Full Story) Washington Post

Market comments: Stocks are set to open lower, likely due to profit taking. Consumer confidence numbers came in better-than-expected (102.2 vs 96.0 consensus), while the Chicago PMI was weaker (54.1 vs 62.0 consensus).