Today Stock Market News

NEW YORK (MarketWatch) — The Fed’s rate cut may have flattened the stock market rally. But two strong letters are unperturbed.

Their heydays are over, but the shows go on: amateurs still do shows at the Apollo, the Rockettes still kick at Radio City Music Hall, The Rolling Stones still tour, and traders still trade on the floor of the New York Stock Exchange.

It seems lately that consumers get hit at every turn. Rising gas prices, health-care and living expenses, job losses and soaring costs of food, it’s a perfect economic storm.

Hold onto your Sunday hats. As the bear market dirges continue to play, I’m looking to mid- and small-cap stocks to lead an uphill charge — and for coal to continue to hammer gold.

Bolstered by macroeconomic stability and strong growth, Russia’s stock market abounds with attractive opportunities for investors, particularly in oil and gas and domestic consumer companies, says Julian Mayo, co-manager of U.S. Global Investors Eastern European Fund.

After five months of trending lower, the major U.S. benchmarks finally turned higher in April.

The arrival of May this year brings a double dose of bad news from the historical tea leaves.

May is shaping up as a transition month. Smart investors should lighten up on utilities and consider REITs.

Marvin Appel describes a portfolio that captures the benefits of the ongoing commodity boom but which has been significantly less risky than either direct investments in commodities or than the U.S. stock market.

Steve Jobs has managed to revolutionize both the consumer electronics and entertainment industries, but the onetime wunderkind can’t seem to shake the stench of the stock-options backdating scandal.

HONG KONG (MarketWatch) — Osaka Securities Exchange Co. is expected to launch a takeover bid for Jasdaq Securities Exchange Inc. in July, once the two groups have worked out a way to merge their computer systems and a valuation of Jasdaq’s assets is complete, the Nikkei newspaper reported Wednesday. The report, which did not cite its sources, said Osaka Securities will make a tender offer after hammering out an acceptable price with Jasdaq shareholder Japan Securities Dealers Association. Although Jasdaq’s board rejected a proposal to merge the two exchange’s computer systems March 24, resistance to the integration is softening following changes to the composition of the board and support for the deal from Jasdaq President Takashi Tsutsui, the report said.

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HONG KONG (MarketWatch) — Japanese and Australian markets were generally weaker early Thursday, with banking shares in Tokyo trading on a softer note while a fallback in crude-oil prices in New York weighed on commodity-related shares in Sydney.

Say what you want about today’s lousy housing market, one thing is for sure: it’s a buyer’s market for construction and remodeling services.

SAN FRANCISCO (MarketWatch) — The lawsuit filed by eBay Inc. against Craigslist, the online classified listings site in which it owns a stake, revolves around efforts by the online auctioneer to launch a competing service, according to a legal document posted online Wednesday.

SAN FRANCISCO (MarketWatch) — U.S.-listed shares of overseas companies rose Wednesday, bolstered by a jump in shares of Brazilian companies after Brazil’s rating was raised to investment grade by Standard & Poor’s.

Now that wedding season is upon us and the invitations are rolling in, you’re probably wondering how you can afford to get your betrothed friends something nice without racking up big credit-card bills or looking like a cheapskate when you give them a present that’s actually in your price range.

Make no mistake about it. A law that will require firms to disclose the fees they charge workers in 401(k) plans will very likely become reality sometime soon. But what the final law will look like — there’s a House and Senate version at the moment — is still unknown.

Starbucks reports its quarterly net income fell 28% from a year ago, hurt by decreased traffic at its U.S. stores.

SAN FRANCISCO (MarketWatch) — Duke Realty Corp. late Wednesday reported its first-quarter net income fell to $4.3 million, or 3 cents a share, from $74 million, or 49 cents a share, a year earlier. Funds from operations decreased to $89.2 million, or 58 cents a share, from $92.5 million, or 62 cents a share, a year ago. Revenue from continuing operations rose slightly to $242.7 million from $224.5 million a year ago, said the Indianapolis-based real estate investment trust. Analysts polled by FactSet Research had forecast earnings of 18 cents a share and funds from operations at 62 cents a share.

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SAN FRANCISCO (MarketWatch) — Willis Group Holdings Ltd. said Wednesday its first-quarter profit fell due to a restructuring charge. The insurance broker said net income for the period ended in March fell to $166 million, or $1.16 a share, from $169 million, or $1.10 a share in the same period a year earlier. Meanwhile revenue rose to $795 million from $739 million. “The results for the first quarter 2008 were significantly impacted by charges totaling $33 million for severance and other costs,” Willis Group said in a statement. The company has said it expects to incur total charges in 2008 of between $65 million and $85 million, which should result in savings of between $25 million and $35 million in 2009.

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SAN FRANCISCO (MarketWatch) — Chevron’s board on Wednesday hiked the quarterly dividend by 12.1% to 65 cents a share. The dividend will be paid June
10 to stockholders of record as May 19.

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SAN FRANCISCO (MarketWatch) — Albemarle Corp.’s board Wednesday approved moving the company’s corporate headquarters to Baton Rouge from Richmond, Va. The move is a key part of its strategy to create long-term value and momentum, said the specialty chemical company.

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SAN FRANCISCO (MarketWatch) — Standard & Poor’s said late Wednesday it may upgrade the ratings of Petróleo Brasileiro SA given Brazil’s improved economic environment. S&P has a BBB- corporate credit rating on Petrobras and BBB- senior unsecured ratings on notes issued by subsidiary Petrobras International Finance Co. The move follows S&P’s upgrade of Brazil’s credit rating to investment grade earlier in the day. “The positive CreditWatch listing reflects our expectations that the company’s stand-alone credit profile will strengthen due to improvements in the macroeconomic environment in Brazil,” said Reginaldo Takara, an S&P credit analyst, in a statement.

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Jones Apparel Group Inc., contending with lower sales to its department-store customers and declining mall traffic, reports a 59% profit fall and lowers its 2008 outlook.

BOSTON (MarketWatch) — Centex Corp. after Wednesday’s closing bell reported a deep fiscal fourth-quarter loss as more data this week painted a bleaker outlook for the residential housing market.

SAN FRANCISCO (MarketWatch) — The funeral dirge of monthly U.S. auto sales will continue on Thursday with more steep declines expected, particularly from domestic manufacturers who are struggling mightily to attract new-car buyers.

OfficeMax shares suffer after the company says the sales drop it experienced during the past two quarters continued in April.

Starbucks Corp. shares heat up after the coffee merchant posts a quarterly profit that comes in line with Wall Street’s reduced outlook.

Household-products giant Procter & Gamble reports its quarterly net income rose nearly 8% from a year ago, boosted in part by cost controls and higher income from razor-blade sales.

SAN FRANCISCO (MarketWatch) — Intel Corp.’s new Atom low-end microprocessor may be in short supply and the chipmaker is scrambling to meet early demand, The Wall Street Journal reported on its Web site late Wednesday. Bill Calder, an Intel spokesman, told the Journal the company is having no problems making the chip, but has received more orders than it had planned.

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SAN FRANCISCO (MarketWatch) — Murphy Oil Corp. reported late Wednesday first-quarter net income of $409 million, or $2.14 a share, up from $110.6 million, or 58 cents a share, a year ago. The latest quarter’s earnings also included a $39.9 million one-time gain on the sale of its Berkana Energy shares in Canada. Revenue for the three months ended March 31 rose to $6.53 billion from $3.43 billion. Analysts polled by Thomson Financial had predicted the El Dorado, Ark.-based company would earn $1.94 a share on $6.23 billion in revenue. Murphy Oil shares closed 0.7% higher at $90.34 ahead of the report.

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SAN FRANCISCO (MarketWatch) — Allegheny Energy, Inc. on Wednesday reported a first-quarter profit of $136 million, or 80 cents a share, up from $109.7 million, or 65 cents a share a year earlier. Analysts polled by FactSet Research were looking for a profit, on average, of 79 cents a share. The Greensburg, Pa.-based electric utility said increased market prices and lower taxes helped drive the improved profit. In a separate release, Allegheny said it filed a request with the Virginia State Corporation Commission to recover purchased power costs in Virginia.

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SAN FRANCISCO (MarketWatch) — Independent oil refiner Sunoco Inc. , citing a steep rise in crude-oil prices and weaker gasoline demand, reported late Wednesday a first-quarter loss of $59 million, or 50 cents a share. The company had a profit of $175 million, or $1.44 a share, in the year-ago period. Excluding one-time items, the year-ago net income was $85 million. Revenue for the three months ended March 31 rose to $12.81 billion from $9.31 billion. Analysts surveyed by Thomson Financial predicted the Philadelphia-based company would hand in a loss of 43 cents a share. Sunoco shares fell 3% ahead of the report to close at $46.41.

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SAN FRANCISCO (MarketWatch) — Starbucks is making moves to shore up its business but don’t expect the company’s operating margin to improve. The coffee-shop chain warned Wednesday its total operating margin by 2011 will remain below 2007’s level of 11.2%, “driven by erosion in the U.S. business.” That said, Starbucks is forecasting its earnings to pick up over the next three years. It pegged fiscal 2009 earnings to be as much as $1 a share, growing as high as a $1.50 a share in fiscal 2011. On Wednesday, Starbucks reported its net income tumbled 28% from the year-earlier quarter.

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SAN FRANCISCO (MarketWatch) — DTE Energy Co. late Wednesday reported a rise in its first-quarter profit and increased its earnings outlook range for the year. DTE posted a profit of $212 million, or $1.30 a share, up from $134 million, or 76 cents a share, in the year-ago period. The Detroit-based energy firm booked revenue of $2.57 billion, compared with $2.46 billion last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 75 cents a share on revenue of $2.55 billion. DTE raised its operating earnings guidance range for 2008 to $2.80 to $3.20 a share, from a previous range of $2.70 to $3.10 a share. Analysts expect 2008 earnings of $3.01 a share.

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WASHINGTON (MarketWatch) — Treasury Secretary Henry Paulson said Wednesday he wasn’t satisfied with the anemic growth rate in the first quarter, but said any growth was remarkable given the headwinds facing the economy. In an interview with Bloomberg cable television business channel, Paulson said the financial markets were returning to normal but said there would be “some more bumps in the road before we get through this.” Once again Paulson urged financial firms to raise capital. “We’re not just talking about major institutions that are in the newspapers,” he said. He singled out the promises of Fannie Mae and Freddie Mac to raise additional capital.

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Members of the House Financial Services Committee return to work on a multibillion-dollar housing-aid bill that is intended to help stem the foreclosure crisis.

SAN FRANCISCO (MarketWatch) — Avalonbay Communities Inc. said late Wednesday its first-quarter net income rose to $48.5 million, or 60 cents a share, from $46.5 million, or 56 cents a share, in the prior-year period, due primarily to increased gains from improved community operating results. Funds from operations rose to $96.1 million, or $1.24 a share, from $89.1 million, or $1.11 a share, last year. The Alexandria, Va.-based real estate investment trust said total revenue rose 9.9% to $216.2 million. A FactSet Research survey of analysts expected, on average, per-share funds from operations of $1.22 and revenue of $225 million. Looking ahead, Avalonbay expects second-quarter per-share earnings of $1.94 to $1.98 and funds from operations of $1.22 to $1.26 a share. Wall Street estimates a second-quarter FFO of $1.24 a share.

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Gold futures turn sharply higher after Federal Reserve’s decision on U.S. interest rates this afternoon to cut rates.

Brazilian shares rally after Standard & Poor’s raises the country’s long-term sovereign credit rating to investment grade, an important acknowledgement of Brazil’s economic progress.

SAN FRANCISCO (MarketWatch) — Centex Corp. late Wednesday reported it swung to a fiscal fourth-quarter loss of $910.5 million, or $7.36 a share, from a net income of $198.9 million, or $1.65 a share, a year ago. The loss from continuing operations for the fourth quarter was $7.34 a share. Revenue slid to $2.31 billion from $3.64 billion in the year-ago period, said the Dallas-based home builder. Analysts polled by FactSet Research had expected a loss of $2.14 a share on revenue of $2.09 billion. Home closings during the period decreased 33% to 7,100 homes and average sales price slid 15% to $267,953.

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SAN FRANCISCO (MarketWatch) - JDS Uniphase Corp. on Wednesday reported a third-quarter loss of $6.2 million, or 3 cents a share, compared with a loss of $14.2 million, or 7 cents a share, for the year-earlier period. Revenue was $383.9 million, up from $361.7 million. Adjusted income was 14 cents a share. Analysts had expected the Milpitas, Calif. company to report earnings of 12 cents a share on revenue of $393.3 million, according to a survey by FactSet Research.

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International Paper Co. and MeadWestvaco Corp. report results showing the paper and forest-products companies hindered by sharp increases in raw-material and energy costs, more than offsetting sales growth overseas and eating into their profits.

SAN FRANCISCO (MarketWatch) — Allied Waste Industries Inc. reported late Wednesday first-quarter net income rose 82% to $72.6 million, or 17 cents a share, from $39.9 million, or 8 cents a share, a year ago. Revenue for the three months ended March 31 rose 2.7% to $1.48 billion from $1.44 billion. Analysts surveyed by Factset had expected the Phoenix, Ariz.-based garbage hauler and recycler to post earnings of 17 cents a share on $1.48 billion in revenue. Allied Waste shares fell 11 cents to close at $12.36 ahead of the report.

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SAN FRANCISCO (MarketWatch) — Unum Group said late Wednesday that first-quarter net income came in at $163.1 million, or 46 cents a share, down 9% from a year earlier when the disability insurer made $178.3 million, or 51 cents a share. Income from continuing operations, which excludes net realized investment gains and losses and other items, was $207.8 million, or 59 cents a share, the company reported. Unum was expected to make 57 cents a share, according to the average estimate of 14 analysts in a FactSet survey. The insurer said it expects operating earnings for 2008 to be between $2.37 and $2.42 a share, up from a previous forecast.

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SAN FRANCISCO (MarketWatch) - Caci International Inc. said late Wednesday that its fiscal third-quarter profit rose to $22.3 million, or 73 cents a share, from $18.4 million, or 59 cents a share, in the year-ago period. Revenue rose to $634.2 million from $473.1 million last year. Analysts surveyed by FactSet Research estimated a quarterly profit of 69 cents a share on revenue of $582.9 million. The company forecast earnings for the year of $2.65 to $2.75 a share on revenue of $2.38 billion to $2.43 billion. Analysts estimate earnings of $2.70 a share on revenue of $2.34 billion.

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SAN FRANCISCO (MarketWatch) — Amkor Technology Inc. late Wednesday reported its first-quarter net income jumped to $72 million, or 36 cents a share, from $34.6 million, or 18 cents a share, a year earlier. The company’s first-quarter net income included about $9.5 million foreign currency gain
due to the depreciation of the Korean won, the Chandler, Ariz.-based semiconductor assembly company said. Revenue rose to $699.5 million from $651 million a year ago. Analysts polled by FactSet Research had forecast earnings of 26 cents a share on revenue of $685.3 million. Amkor expects second-quarter earnings of 32 cents to 36 cents a share while revenue is expected to rise 1% to 3% from the first quarter. Wall Street is expecting earnings of 29 cents and $704.1 million in revenue.

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SAN FRANCISCO (MarketWatch) — BorgWarner Inc. said late Wednesday its board authorized a buyback of up to 5 million shares of the company’s common stock. The company said the new authorization was made in anticipation of exhausting the limited number of shares remaining under a 2000 buyback plan. BorgWarner has about 116.4 million shares outstanding.

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SAN FRANCISCO (MarketWatch) — Prudential Financial Inc. said late Wednesday that first-quarter net income came in at $77 million, or 20 cents per common share, down 92% from a year earlier when the life insurance and annuity company made $1.025 billion, or $2.18 per common share. Adjusted operating income, which excludes realized investment gains and losses, was $729 million, or $1.65 per common share, for the first quarter of 2008, the company reported. Prudential was expected to make $1.83 a share, according to the average estimate of 15 analysts polled by FactSet. After-tax adjusted operating income will likely be $7.50 to $7.80 per common share in 2008, in line with the previous forecast, Prudential said.

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SAN FRANCISCO (MarketWatch) - Symantec Corp. said Wednesday its fiscal fourth-quarter profit rose sharply, amid strong sales to both businesses and consumers. Cupertino, Calif.-based security and storage software maker Symantec said net income for the period ended in March rose to $186.4 million, or 22 cents a share, from $60.9 million, or 7 cents a share in the same period a year earlier. Meanwhile revenue rose to $1.54 billion from $1.36 billion. Excluding special items, Symantec said earnings for the period rose to 36 cents a share. Analysts had estimated Symantec would post earnings excluding special items of 34 cents a share, and $1.52 billion in revenue, according to FactSet Research.

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