Tuesday, May 09, 2006

Morning Update

Morning News of Note:
  • AAPL: Apple MacBook, iPod changes due later this month Apple Computer's highly anticipated line of Intel-based MacBook consumer notebooks may not turn up on Tuesday as several online reports and analysts have suggested, AppleInsider has learned. Although Apple reportedly began manufacturing the notebooks over a week ago, sources say the Mac maker is unlikely to unveil the computers until the following week at the earliest. (Full Story) Apple Insider
  • ACAS: Insiders Buy Shares of Popular Fund INSIDERS AT American Capital Strategies, a respected high-dividend closed-end fund, stepped up buying as shares of the fund touched their lowest level in a year. The firm, which has a market cap of more than $4 billion, invests in public and private companies through direct capital investments or by offering debt financing to private-equity firms or employees during buyouts. (Full Story) BARRONS
  • SBUX: Heard on the Street... Starbucks Investors May Get Jitters Starbucks Corp. keeps pouring cup after cup of sweet financial results. But the company's "grande" stock price could wind up leaving investors disappointed. The company's fiscal second-quarter results, released last week, were the good news for shareholders. Earnings rose 27% for the quarter ended April 2 and sales at stores open at least a year, an important measure, rose 10%, exceeding the company's own 3% to 7% long-term projection. (Full Story) WSJ
  • Clean Energy Sector: The Nasdaq Stock Market has teamed up with Clean Edge Inc., an industry research and publishing firm, to launch a stock-performance index for the small but rapidly growing clean-energy sector. The Nasdaq Clean Edge U.S. Index is set to debut on May 18, and will track the stock performance of 45 companies in the clean-energy industry. The companies are mostly small to mid-cap, with 35 listed on Nasdaq and the remaining 10 on the New York Stock Exchange. They make products for technologies ranging from solar energy to biofuels and advanced batteries. Officials of both Nasdaq and Clean Edge, which has headquarters in Portland, Ore. and Oakland, Calif., said the index will heighten the profile of an industry which is working to expand the use of alternative energies. "This index represents the further advancement, maturing and mainstreaming of the clean-energy sector," said Ron Pernick, cofounder and principal of Clean Edge, which has been tracking the growth of clean-energy markets and companies for about five years. - WSJ
  • Flash Prices: Samsung and Hynix raise flash prices-Bloomberg: Samsung Electronics and Hynix Semiconductor, which make about 67% of the memory chips used in music players and mobile phones, have raised their prices for the first time this year as a glut of the chips eased. The stocks of both chipmakers, which trade overseas, rose on the news.
  • Mad Money Summary: Cramer opened his show discussing "new secular growth stories," including Caterpillar (CAT), U.S. Steel (X), Terex (TEX), United Technologies (UTX) and Deere (DE). Then Cramer looked at Israeli companies, suggesting NICE Systems (NICE) and Ness Technologies (NSTC). Cramer then discussed a risky stock to own as a play on oil in Kazakstan, Transmeridian Exploration (TMY). Cramer was then joined by telephone with Peter McCausland, the chairman and CEO of Airgas (ARG). Cramer said he believes Airgas is one of the new secular growers. In the "Lightning Round," Cramer was bullish on General Motors (GM), Google (GOOG), Yahoo (YHOO), Broadwing (BWNG), Level 3 (LVLT), Qwest (Q), Rackable (RACK), Rite Aid (RAD), Regal (RBC), Vasco Data (VDSI), Black & Decker (BDK) and Brocade (BRCD), and was bearish on Boston Scientific (BSX), Audible (ADBL), Nordic American Tanker Shipping (NAT), Applied Materials (AMAT) and Stanley Works (SWK).

Market Comments: The market is hanging in again, despite oil trading higher ($71) and bond yields rising to 5.13%. The EIA said 2Q Chinese oil demand would be flat versus last year, which should temper any further rise in crude prices.

I expect the market to remain somewhat subdued ahead of the FOMC announcement tomorrow, and then we could see some renewed volatility. If we do see some weakness after the Fed meeting, I expect that it will once again be short-lived.

GOOG is starting to act much better finally.

long GOOG


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