Morning Update

"Living and dreaming are two different things-- but you can't do one without the other." - Malcolm Forbes

Morning News of Note:

• TGT: Off Target? Cheap Wares, Pricey Shares TARGET HAS HAD AN INCREDIBLE RUN selling "cheap chic" goods, from polo shirts to pots and pans to patio furniture. With its signature red and white bull's-eye logo, savvy merchandising and exclusive deals with designers such as Isaac Mizrahi and architect Michael Graves, the company has convinced both the masses and the classes that discount shopping is cool. Indeed, its hippest fans, in perfect faux French, call the Minneapolis-based retailer "Tar-zhay." Their spending habits have helped boost Target/Tar-zhay's profits by an average of 10% a year over the past five years. (Full Story) BARRONS
• HANS: Buzzed to the Max: Why This Drink Is Scary LIKE ITS CAFFEINATED CUSTOMERS, Hansen Natural knows what it's like to experience a rush. Shares have soared more than 2,000% in the three years since the juice and natural-soda company introduced a line of caffeine-spiked energy drinks called Monster, marketed with the slogan "Unleash the Beast!" Teens took a shine to the beverage (or, more likely, the instant buzz) and Wall Street took to the stock (ticker: HANS), which offers the only publicly traded pure play on the booming energy-drink niche. But with shares topping $108 in mid-July, up from around $4 when Monster was launched, the Corona, Calif., company faces mounting pressure to deliver growth spectacular enough to feed that high. And it faces brutal, new competition: PepsiCo (PEP) and Coca-Cola (KO) have both begun flexing their considerable distribution and marketing muscle as they elbow into the energy-drink game. (Full Story) BARRONS
• HPQ AAPL: H-P Hits Stop Button On Deal to Sell Apple iPods Four months into Mark Hurd's tenure as chief executive of Hewlett-Packard Co., the U.S. technology behemoth is gradually dismantling the legacy of former Chief Executive Carly Fiorina. The latest step: dissolving a high-profile partnership Ms. Fiorina struck with Apple Computer Inc. for H-P to resell the popular iPod digital-music player. The two California companies Friday said H-P decided to immediately phase out sales of the iPod through its retail distribution partners. H-P "decided that reselling iPods doesn't fit with the company's digital-media strategy," an Apple spokeswoman said. The demise of the deal isn't expected to be a big financial blow to either party. H-P, on average, accounted for about 5% of iPod sales. Apple sold 6.2 million of the music players last quarter, generating more than $1.1 billion in revenue. (Full Story) WSJ
• Geopolitical Summary: Saudi Arabia's King Fahd dies... Iran to resume processing nuclear materials (Foxnews.com)... Head of Iraqi Constitution Committee has agreed to Aug 15 deadline... India monsoon death toll hits 910... Atkins Nutritional files chapter 11... Japan will impose regulatory tariffs on 15 US products in Sept (Bloomberg.com)... According to the WSJ, Bush will name Emil Henry as Asst Treasury Chief... US and North Korea to consider second draft of nuclear weapons agreement (Bloomberg.com)
• WMT: Wal-Mart preliminary July same store sales +4.4% (49.35 ) On a recorded call co announced that July same store sales were up 4.4% vs 3-5% forecast. Co will report final same store sales figures for July on Thursday morning.

Market Comments: The market opened up this morning, after Friday's large selloff. The ISM manufacturing survey came in much stronger than expected, and this has bond yields pushing higher to 4.33% (10-year Tsy). Also, the passing of Saudi's King Fahd has oil trading slightly higher as well.

Recent breakouts are continuing to work. Go back and look and some of our Stocks of the Day for trading ideas to buy on pullbacks.