2011 August

Markets Volatility Continues With Indices Falling Over 3% Today

The markets are showing no signs of turnaround this morning, however as yesterday afternoon indicated anything can happen. Yesterday the Dow plunged sharply before ending up positive over 400 points. Is that kind of rebound on tap for later today? If it is there is a lot of work ahead to get back to even. The Dow is currently down 418 points a fall of over 3.7% virtually erasing all the gains it posted yesterday. The Nasdaq has fallen 75 points a drop of over 3%, and the S&P 500 has dropped 40 points a 3.4% decrease. There is not a lot of good happening in the market right now with some stocks down as much as 70%. Despite the overall market performance there have been a few stocks performing well.

Pegasystems Inc. (Nasdaq: PEGA) shares have risen 20% this morning to $42.83 per share. Volume has already traded nearly four times more than normal on news that the company bested wall street estimates for the second quarter. PEGA exceeded wall street estimates by posting a a revenue of $104.7 million versus the $101.6 million expected by analyst. Net income was $2.3 million versus a net loss of $8.2 million last year during the same quarter.

Cree, Inc. (NASDAQ:CREE) shares have risen 15% to $34.15 per share. Volume is up over 10 million shares on news that company’s price target was raised by Canaccord Genuity inc. The analyst at Canaccord Raised the price target to $39 from $37 and upgraded the shares from hold to buy. While dwindling inventory down to manageable levels Cree has been able to reset the company’s expectations while providing great upside. Cree, Inc expects to beat wall street estimates at the end of their current quarter.

BioLase Technology, Inc (NASDAQ:BLTI) shares are up 34% to $3.72 per share. Volume is nearly double average daily traded volume on news of a stock repurchase program. The BioLase Board of Directors approved a plan that would allow the repurchase of up to 2 million shares of the company’s outstanding stock. BLTI also announced a new revenue guidance for Q3 of $14-15 million up from $6.2 million in the previous year.

Markets Try To Rebound After Major Losses Over The Past Few Days

The markets are trying post a small victory against a rash of defeating days the past week. The Dow is up 174 points a rise of 1.6%. The Nasdaq is on the move as well climbing up nearly 3% a rise of 72 points. The S&P 500 is also up today posting gains of 25 points or 2.3%. While continuing economic fears fuel worries among investors there is hope that the Federal Reserve will step in with some sort of stimulus package to curb worries of a double-dip recession. The markets volatility has been in full force as a major sell-off occurred on the heels of the S&P credit downgrade of the United States from its top tier rating. Despite all of the current problems in the markets there are a few stocks performing well amid the turmoil.

FairPoint Communication, Inc. (Nasdaq:FRP) shares are up today rising nearly 37% to $6.26 per share with an intraday high $7.20. Volume is on track to surpass daily averages as FRP announced its 2011 Q2 results. The company posted results that bested the same quarter in the previous year and looks to continue to reduce the net loss which was cut in half from the previous year. The company continues to show sign of growth and scheduled a conference to discuss the Q2 earnings with investors at 9:30 a.m. EDT this morning.

Northern Oil and Gas, Inc (AMEX: NOG) shares are up today climbing 30% to $17.19 with an intraday high of $18.98 per share. Volume is trading heavier than normal as over 3 million share have exchanged hands on news of NOG’s Q2 results. NOG announced a record for Q2 revenue as sales reached $35.5 million. This increase translates to a net income of $7.7 million or 12 cents per share. This marks a 120% increase from Q2 2010 and a jump of 30% from Q1 of 2011.

Mako Surgical Corp. (Nasdaq:MAKO) share are up 26% to $27.21 per share. Volume has been trading nearly 3 times normal as Mako reported strong sales in the second quarter. Mako announced revenue of $18.6 million up 80% from the same quarter a year ago. The rise in sales did lead to a rise in operating cost and a net loss of $9.9 million for Q2. The net loss represents a rise of nearly 17%. Shares had fallen to $21.41 at the previous close.

Market Woes Continue after the S&P Downgrade

635 points. The sixth largest one-day point drop in Dow history closed out a complete rout in the US markets today. Coming on the heel of the Friday night credit downgrade, the markets were sent reeling with the one-two punch of that and the continuing debt crisis in the Eurozone. Bank of America led the way down, dropping 20%, after AIG announced it was suing the bank to recoup losses in its mortgage-backed securities investments. The S&P and Nasdaq followed the Dow in its plunge, with each index dropping well over 6%.

One piece of good news consumers can take away from this is that Oil is down near $80 a barrel. This should definitely start to show at the gas pump soon. One counterpoint to the sudden drop in oil prices is the Arab Spring. The major producers in the Gulf managed to quell dissent in their populace by using oil revenue to boost social programs and cash gifts to citizens. A precipitous drop in prices could work to destabilize the region once again at a time when the region’s governments are still teetering.

Meanwhile, Britain is seeing riots this evening with major looting and some violence beginning to break out. This all started a few days ago after an alleged gang member was shot there. Many see that event as the trigger to the riots but believe that the economic situation there and across Europe help fuel the rising discontent.

Overall market conditions are tenuous at best with the ongoing financial crisis in Europe and the issues facing Bank of America domestically. Add in major political gridlock in Washington and we may be in for an extended period of market turmoil.

Stocks’ Worst Week In Nearly 2 Years

The market ended the week with its worst 5 day span in nearly 2 years. The Dow fell nearly 6% this week and dropped 513 points on Thursday alone. The S&P fell 0.1% today and finished the week down 7.2%. The Nasdaq fell nearly 1% today and since July 22 is down over 11%. Commodities also took a hit as crude oil fell nearly $9 during the week.

A lot of people are wondering what caused such a big decline in the markets this week, after all the debt ceiling deal got done before Aug. 2. Well the debt ceiling deal is just one of many things that is going wrong with the economy here in the U.S. and abroad. The main cause continues to be the debt crisis in Europe as Italy or Spain could be the next countries that follow the way of Greece and Ireland. Problem is that Italy’s and Spain’s economy’s are a lot bigger than Greece’s and the central banks and European leaders might not have enough cash to prop them up. In the U.S., few investors and analysts think that the U.S. government will do anything to stimulate the economy. After all they just signed a deal that calls for over $2 trillion in spending cuts over the next 10 years to reduce the deficit. There is also the possibility of the U.S. credit rating being lowered as well.

A little bit of good news did hit the market today as the U.S. economy added 117,000 jobs in June. But as Dan Greehaus, chief global strategist at the trading firm BTIG, points out, “From an economic standpoint, 117,000 jobs is hardly sufficient to boost the economy.” Some analysts point out that the economy isn’t in that bad of shape. Companies have more cash than ever with companies in the S&P 500 amassing nearly $1 trillion in cash. What these same analysts don’t say is that they accumulated of this cash by posting record profits and by cutting costs which mainly means laying off people. So while the companies themselves may have plenty of cash, the average American is struggling.

Market Tumbles on Continued Eurozone Woes

Deja vu circa 2008. The talking heads on CNBC know only one word today. Capitulation. It is definitely debatable as to whether or not that’s the case with the broader market getting pummeled. Overall market conditions today are terrible with euro woes bleeding into the domestic woes. Double dip is looking increasingly likely and if it happens it could not counteracted by government spending due to the current political climate.

Each of the major indices are getting hammered today. The Dow is down 411 points, the Nasdaq is down 112 points, and the S&P is down 48 points. Today has been a sell off across the board as oil and gold are also down big. Oil is down more than 5% and Gold is down nearly $10 near the close of trading. The only good news for consumers today is that the drop in oil should reflect at the pump soon.

Two-year treasury yields drop to record lows as nervous investors rush to treasuries as a safe haven. This causes treasury prices to rise and yields to fall. In intraday trading, the two year yield fell as low as 0.265 percent, a new record low.

This may be a point where the average investor may want to sit on the sidelines. A jobs report is on deck tomorrow (with the lowest of low expectations need to be at least met) and the Euro issues continue to persist. Plus domestic political concerns are at a standstill The tea party caucus learned last week they can hold the entire government hostage for draconian cuts. Right or wrong it is politically in their best interest to make things grind to halt leading into the 2012 elections.

Wall Street Plummets As Economic Fears Grow

The markets are falling today and they are falling very hard. The Dow Jones has fallen 2.7% a drop of over 328 points. The Nasdaq is facing a similar crisis falling over 3.3% a drop of89 points. And to round out the big three the S&P 500 has dropped 3.1% or 38 points today. The latest economic news is bleak and could actually lead to a bigger decline in the markets tomorrow and extending into next week. Job news appears to be weak and tomorrows release of new employment data could have a significant impact on which way the market turns. There are a few diamonds amongst the rough today.

Web.com Group, Inc. (Nasdaq:WWWW) shares are up this morning rising 32.5% to $11.50 per share with an intraday high of $11.65. Volume is trading 5 times normal as positive results from Q2 are in. Web.com had Q2 revenue of $42.2 million for the second quarter. This was good news that has become better with word that WWWW has agreed to acquire Internet domain name company Network Solutions in a deal worth $560 million. The deal includes $405 million in cash and 18 million shares of $155 million shares.

Emdeon Inc. (NYSE:EM) shares are up today climbing 13.6% to $18.46 per share. Volume is trading heavy as nearly 8.5 million shares have been traded. The rise in Emdeon comes as private equity firm Blackstone Capital partners has agreed to take the company private in a buyout. the deal is worth a reported $2.2 billion. The transaction was unanimously approved by the company’s board of directors. The calls for Emdeon shareholders to receive $19 per share a 17% premium over the stocks previous close.

Despite those two stocks performing well the majority of stocks have fallen on the fears that this may be the beginning of a global sell off in the worlds markets. Oil has fallen to $87 a barrel its lowest level in over a month. Gold remains strong at $1654 an ounce while silver resides at $39 an ounce. The next few weeks is really going to determine where our economy is heading. Some economist believe it a recovery is ahead while some believe that a recession is on the way. All I can say is the next few weeks are going to be a bumpy economic ride with both ups and downs.

Markets Fall as Economic Worries Increase

Today’s markets has taken a pretty hard hit this morning despite the House passing the new debt deal last night. The Dow is down 93 points and appears it is a possibility it could see a drop below 12,000 for the first time since June. The Nasdaq and S&P 500 have taken a beating this morning as well losing 22 and 13 points respectively. The losses extend a two week period where uncertainty surrounding a debt deal has driven the market down and created losses of nearly 700 points to the Dow Jones.  As the U.S. government finally came to an agreement on a debt deal fear shifted to whether the United States would have their credit rating downgraded and how a downgrade would effect the economy. Lets look as a few stocks that are performing well despite the markets volatility.

Officemax Incorporated, (NYSE:OMX) shares are trading up 11% this morning to $8.06 per share with an intraday high of $8.80 per share. Volume has exceeded the daily average on news that OMX beat analyst estimates for the company’s fiscal second quarter. OfficeMax saw Q2 sales fall .3% to $1.65 billion which is better than the $1.64 billion expected by some analyst. Officemax has adjusted its Q3 income to be flat or slightly above the previous years Q3.

Herbalife Ltd. (Nyse:HLF) shares have made a nice gain this morning climbing 13% to $62.75 per share. Volume is up as well with nearly 3.2 million shares being traded on news that HLF had a tremendous Q2. Herbalife announced quarterly earning of $.88 per share easily topping the $.74 per share that analyst had expected. Several analyst reiterated their “Buy” rating and target prices of $66 -$68 per share.

Synchronoss Technologies, Inc. (Nasdaq:SNCR) Shares have risen 23% to $35.54 per share. Volume is trading heavy and on the verge of moving past the 1.6 million shares. The rise in SNCR comes after the company announce a quarterly earnings call today at 4:30 P.M. EST. While this comes after the markets close many are anticipating and speculating a good quarterly report.

Markets Fall on Poor Manufacturing Data as Debt Deal Vote Looms

The markets are down this morning dropping fairly significantly. The Dow has fallen 125 points a drop of over 1%. The Nasdaq and S&P 500 have both taken hits as well dropping over 1% as well.  With a vote on the debt deal scheduled to happen today investors turned to new manufacturing data as the driving factor in today’s markets. The Institute of Supply Management reported that manufacturing activity fell 4.6% to its lowest level since July 2009. Another factor helping to provide today’s market downturn is the uneasy feeling investors have over a possible credit downgrade. While the markets are off to a bad start here are a few stocks performing well.

PAETEC Holding Corp (Nasdaq:PAET) shares are up this morning 19% to $5.29 per share. Volume is up as well with 16.6 million shares being traded on news that Windstream (Nasdaq:WIN) has agreed to purchase PAET in a deal worth $2.3 billion. WIN has offered stock worth $891 and a willingness to assume $1.4 billion in debt. The deal is expected to help Windstream by saving nearly $100 in operating cost per-annum.

Talbots, Inc (NYSE:TAB) shares have risen 12.7% today to $3.90 per share.  Volume is on pace to eclipse average daily traded volume as news that a possible takeover is looming. The news is based upon the facts that Sycamore Partners, a private equity firm, bought about 9.9% of talbots common stock. This is not the first time that Talbots has been involved in takeover speculation. Talbots shares have lost a lot of ground this year and are down roughly $9 from a yearly high of $13.43 per share.

Mad Catz Interactive Inc. (AMEX:MCZ) shares have climbed 13% today to $1.33 per share. Volume is up as well and looks to surpass the daily average of 1 million shares on news that Mad Catz announced the companies upcoming quarterly conference call this Thursday August 4th. Investors have been watching MCZ after a strong showing at E3 and Comic-con.

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