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Stock futures start 2007 on a positive note...
Home Depot surges as CEO quits, Wal-Mart up on sales view...
By Tomi Kilgore & Steve Goldstein, MarketWatch
Last Update: 8:36 AM ET Jan 3, 2007
http://tinyurl.com/yco4hq
NEW YORK (MarketWatch) -- U.S. stock futures rose sharply to start the new year on Wednesday, as investors cheered strong sales data from Wal-Mart over the weekend and the resignation of the embattled chairman and chief executive of Home Depot.
Investors will all get a heavy dose of economic data, monthly auto sales and a key manufacturing gauge, as well as minutes from the last Federal Reserve interest-rate meeting.
S&P 500 futures ran up 7.00 points to 1,435.40 and Nasdaq 100 futures climbed 15.75 points at 1,790.75. Dow industrial futures hiked up 66 points to 12,605.
On Friday, the Dow Jones Industrials Average ($INDU) closed down 38 points, but rose more than 16% on the year. The S&P 500 ($SPX) gained nearly 14% and the Nasdaq Composite ($COMPQ) climbed 9.5%
While U.S. markets were closed on Tuesday, stock markets in Europe and Asia climbed. In Wednesday trading, the FTSE 100 in London edged 0.1% lower after a 1.5% rise the previous session. Japanese stock markets are still shut.
As a prelude to important jobs data due out on Friday, the ADP employment report said U.S. private-sector employment fell by 40,000 in December, the first decline in nearly four years. The data suggest nonfarm payrolls could decline by about 25,000 on the month, while the average economist estimate compiled by MarketWatch called for a gain of about 103,000 jobs.
The report sent bonds higher, and yields lower. The benchmark 10-year Treasury note's yield ($TNX) fell 0.064 percentage points to 4.646%
After rising on Tuesday, the euro slipped back against the U.S. dollar. The dollar also rose on the Japanese yen.
Wednesday's economic calendar also includes the Institute of Supply Management's manufacturing survey for December, which may return to a 50% reading, according to some forecasts. Last month the survey fell to a reading of 49.5%, which signaled economic contraction in the sector. The ISM data is due for release at 10 a.m. Eastern.
Data on construction spending is also due, as are U.S. auto sales, with the auto figures expected to show that Toyota Motor (TM) is getting ever closer to topping General Motors (GM) as the sales leader. Ford Motor Co. (F) may fall to the four spot behind GM, Toyota and DaimlerChrysler (DCX).
Minutes from the last Fed meeting will be released at 2 p.m. Eastern.
In other markets, crude oil futures slipped 65 cents at $60.40 a barrel in electronic trading, on milder-than-normal weather, while gold futures ticked up $1.20 to $639.20
In corporate news, Wal-Mart (WMT) said over the weekend that December same-store sales were expected to be up 1.6% over year-earlier levels, well above the company's previous estimate of a 1% gain. The stock rallied 2.1% to $47.14 ahead of the open.
Fellow Dow member Home Depot (HD) said its chairman and chief executive, Robert Nardelli, resigned effective Jan. 2 amid criticism over his rich pay package, which critics said did not match company performance. Home Depot and Nardelli agreed to a $210 million separation package. He will be succeeded by Frank Blake, who was the vice chairman.
Earlier, the home improvement retailer was upgraded to strong buy from outperform at Raymond James, which cited fading management issues and given that the worst appears to have passed for the housing market. The stock shot up 4.4% to $41.92 in pre-open trading.
Elsewhere, home builder Lennar Corp. (LEN) warned of a fourth-quarter loss and added a partner to its LandSource joint venture.
The stock shed 3% to $50.87 in the pre-open.
In other analyst moves, Dow component General Motors (GM) was downgraded to sell from neutral at Banc of America Sec., which cited concerns over a sharp decline in product volume resulting from lower market share.
Also in the Dow, Merck (MRK) was upgraded to outperform from peer perform at Bear Stearns, which said it expects upside to several new products as consensus forecasts appear to be underestimating performance. The stock tacked on 1.6% to $44.29 in pre-open trading.
Amazon.com shares (AMZN) fell 1.5% to $38.88 after Citigroup downgraded the online retailer to sell from hold, citing concerns over valuation and margin expansion.
Tomi Kilgore is a reporter for MarketWatch in New York.
Steve Goldstein is MarketWatch's London bureau chief.
Guess it was good news on FRPT-Gruman deal "tipped"
Happy New Year !
U.S. Stocks To Start Out The Year With A Bang!...
By Leslie Wines & Ciara Linnane, MarketWatch
Last Update: 7:04 AM ET Dec 30, 2006
http://tinyurl.com/yfoqwz
NEW YORK (MarketWatch) - U.S. stocks are expected to ring in the New Year with gains, extending the rise seen in the final week of 2006 on growing conviction that the economic slowdown will be moderate and equities will enjoy a favorable environment.
The coming week will feature just three trading sessions, as U.S. equities markets will be shut on Monday for the New Year's Day holiday and on Tuesday for a national day of mourning for former President Gerald R. Ford, who died in the past week at age 93.
The four-day market close will mark the longest stretch in which U.S. equities have not traded since the September 11, 2001 attacks, when the market was shut for six days.
"The market is poised to move higher in the new year," said Kevin Kruszenski, head of trading at KeyBanc Capital.
In recent months there were concerns about a hard landing for the economy in 2007, but the market's psychology has turned more positive after stronger recent reports. In the first week of the year, "We'll be looking for more signs that the economy is still growing," Kruszenski said.
Key data reports due next week will include the minutes from the December Federal Open Market Committee meeting on Wednesday. The minutes were to have been released on Tuesday, but the Federal Reserve also will close Tuesday to mark Ford's passing.
Investors will scrutinize the FOMC members' thoughts on economic strength and the pace of inflation for clues on the economic policy outlook.
Perhaps the most influential report of the week will be the December unemployment report, due out on Friday. Investors will be eager to gauge the health of the labor market and the pace of wage inflation, which is carefully monitored by the Fed in making rate decisions.
Kruszenski said market momentum in early 2007 also should be bolstered by consolidation activity. "Companies still have a lot of cash on their balance sheets and there's a strong trend of M&A, and I don't see that changing in 2007," he said.
"That being said, the interest rate market had begun to discount rate cuts by the Fed based on a slowing economy, but now that we haven't seen any signs of a collapse, there could be some backlash on interest-rate sensitive stocks," such as financials and mortgage brokers, Kruszenski said.
Michael Malone, a trading analyst at Cowen & Co, said benign price pressure also should benefit the market as it kicks of the year.
"Other economic data suggest that inflation remains benign, keeping long-term rates low and helping support housing, which has been the biggest overhang for the market," he said.
This should help support the market, at least in the early goings of 2007, even after the uninterrupted rally seen over the past six months, Malone added. "One can certainly expect the trend remains up," he said.
A solid 2006:
The U.S. stock market ended 2006 on a bright note, with all three major indexes posting their best performance in three years. The Dow Jones Industrial Average ($INDU) stood at 12,463 at the close of trading on Friday, marking a 16.3% gain for the year.
The S&P 500 index ($SPX) gained 13.6% for the year and the Nasdaq Composite (COMP) advanced 9.5%.
General Motors Corp. (GM), which lost half of its value in 2005 as investors feared the automobile giant might go bankrupt, was among the best performing blue-chip stocks in 2006, rising 58.2%
AT&T Corp. (T) was the second-best performing stock on the Dow, gaining 46%, as investors applauded its plans to merge with BellSouth Corp. (BLS).
Intel (INTC) was the worst performer with an 18% loss.
Economic spotlight:
Economists surveyed by MarketWatch are expecting the December non-farm payroll report to show the economy added 120,000 jobs in the month, down from the 132,000 added in November.
The report will be released at 8.30 a.m. Eastern on Friday.
"The job market is getting a little weaker," said Bill Cheney, chief economist for John Hancock Financial Services. But the weakness isn't sufficient, he said in an interview, to force the Fed to act on monetary policy.
The nation's jobless rate is expected to stay put at 4.5%. It reached 4.5% in November after hitting a five-year low of 4.4% in October.
Average hourly earnings are expected to rise slightly, up by 0.4% compared to a gain of 0.2% in November. And the Labor Department's data on the average workweek are expected to show a fractional increase, to 34 hours from 33.9 hours in November.
The jobless rate, hourly earnings and average workweek are reported at the same time as payrolls.
Also on Friday, Fed Chairman Ben Bernanke is scheduled to speak at a conference in Chicago about central banking and bank supervision in the U.S., at 1:45 p.m. Eastern time.
On Wednesday, investors will scrutinize the Institute for Supply Management's factory index, expected to fall to 49% from 49.5%. A reading below 50% signals contraction.
Leslie Wines is a reporter for MarketWatch in New York.
Ciara Linnane is markets editor for MarketWatch in New York.
U.S. Stocks End 2006 With Best Gains In Three Years!...
By Nick Godt
Last Update: 4:09 PM ET Dec 29, 2006
http://tinyurl.com/wkwww
NEW YORK (MarketWatch) -- U.S. stocks finished the year with strong gains, with all three major stock averages booking their best performance since 2003.
The Dow Jones Industrial Average (INDU) stood at 12,463 at the unofficial 4 p.m. close on Friday, the final trading session of the year, marking a 16% gain for the year.
This was the Dow's best performance since 2003.
General Motors Corp. (GM) and AT&T Inc. (T) were the two best performing stocks among blue chips, while Intel Corp. (INTC) and Home Depot Inc. (HD) were the two worst performers.
The S&P 500 ($SPX) gained 14% for the year, while the Nasdaq Composite (COMP) advanced 10%, also marking the two averages best performance since 2003.
Happy New Year! 'marketmaven'...
I'm sorry to hear the bad news on FRPT ;^((
Happy New Year! Peggy Sue...
I'll be posting some charts for the New Year in the next two days while the Market is closed, and YHOO will be one of them...
I'm sorry I couldn't reply to your request for a chart analysis of YHOO before the end of last year, but my mother-in-law has been in the intensive care unit in a Memphis hospital since Xmas day and I've been preoccupied...
Once again, PP...Happy New Year!
I'd like to wish EVERYONE...
A HEALTHY, SAFE, AND PROSPEROUS~~~HAPPY NEW YEAR! ;^))
Did someone say Fireworks? http://www.maylin.net/fireworks.html
Belated Merry XMas PP- FRPT deal for 13m shares
at $11.75 two days before Grumman deal announced. So the stock was crashed down before the placement. Not very nice for the unsuspecting shareholders before the ramp. Anyway, hardly susceptible to technical analysis....
MERRY CHRISTMAS POWERPOLE ......
Thank You for all your good work ...
A very wealthy prosperous year ahead for all ...
'Christmas Bells'
I heard the bells on Christmas Day
Their old, familiar carols play,
And wild and sweet
The words repeat
Of peace on earth, good-will to men!
And thought how, as the day had come,
The belfries of all Christendom
Had rolled along
The unbroken song
Of peace on earth, good-will to men!
Till, ringing, singing on its way
The world revolved from night to day,
A voice, a chime,
A chant sublime
Of peace on earth, good-will to men!
Then from each black, accursed mouth
The cannon thundered in the South,
And with the sound
The Carols drowned
Of peace on earth, good-will to men!
And in despair I bowed my head;
‘There is no peace on earth,’ I said;
‘For hate is strong,
And mocks the song
Of peace on earth, good-will to men!’
Then pealed the bells more loud and deep:
‘God is not dead; nor doth he sleep!
The Wrong shall fail,
The Right prevail,
With peace on earth, good-will to men!’
Longfellow Henry Wadsworth
Lifespan - 1807 - 1882
Father - Stephen Longfellow, lawyer and member of Congress
Educated - Bowdoin College, Brunswick, Maine
Career - Poet, critic, Professor of English Literature at Harvard
Famous Poem - The Song of Hiawatha
White Christmas
I'm dreaming of a white Christmas
Just like the ones I used to know
Where the treetops glisten,
and children listen
To hear sleigh bells in the snow
I'm dreaming of a white Christmas
With every Christmas card I write
May your days be merry and bright
And may all your Christmases be white
I'm dreaming of a white Christmas
With every Christmas card I write
May your days be merry and bright
And may all your Christmases be white
Minstrels a Christmas Poem
The minstrels played their Christmas tune
To-night beneath my cottage-eaves;
While, smitten by a lofty moon,
The encircling laurels, thick with leaves,
Gave back a rich and dazzling sheen,
That overpowered their natural green.
Through hill and valley every breeze
Had sunk to rest with folded wings:
Keen was the air, but could not freeze,
Nor check, the music of the strings;
So stout and hardy were the band
That scraped the chords with strenuous hand.
And who but listened?--till was paid
Respect to every inmate's claim,
The greeting given, the music played
In honour of each household name,
Duly pronounced with lusty call,
And "Merry Christmas" wished to all.
William Wordsworth
Nationality - English
Lifespan - 1770 - 1850
Father - John Wordsworth, lawyer
Educated - Hawkeshead Grammar School and St Johns College Cambridge
Career - Poet and author
Mistletoe
Sitting under the mistletoe
(Pale-green, fairy mistletoe),
One last candle burning low,
All the sleepy dancers gone,
Just one candle burning on,
Shadows lurking everywhere:
Some one came, and kissed me there.
Tired I was; my head would go
Nodding under the mistletoe
(Pale-green, fairy mistletoe),
No footsteps came, no voice, but only,
Just as I sat there, sleepy, lonely,
Stooped in the still and shadowy air
Lips unseen - and kissed me there.
Walter De La Mare
Nationality - English
Lifespan – 1873 -1956
Family – Mother related to Robert Browning (Poet)
Education – St Paul's School in London
Career - Poet, novelist and dramatist critic and editor
The Christmas Song
Chestnuts roasting on an open fire,
Jack Frost nipping on your nose,
Yuletide carols being sung by a choir,
And folks dressed up like Eskimos.
Everybody knows a turkey and some mistletoe,
Help to make the season bright.
Tiny tots with their eyes all aglow,
Will find it hard to sleep tonight.
They know that Santa's on his way;
He's loaded lots of toys and goodies on his sleigh.
And every mother's child is going to spy,
To see if reindeer really know how to fly.
And so I'm offering this simple phrase,
To kids from one to ninety-two,
Although its been said many times, many ways,
A very Merry Christmas to you
Jingle Bells
Dashing through the snow
In a one horse open sleigh
O'er the fields we go
Laughing all the way
Bells on bob tails ring
Making spirits bright
What fun it is to laugh and sing
A sleighing song tonight
Oh, jingle bells, jingle bells
Jingle all the way
Oh, what fun it is to ride
In a one horse open sleigh
Jingle bells, jingle bells
Jingle all the way
Oh, what fun it is to ride
In a one horse open sleigh
A day or two ago
I thought I'd take a ride
And soon Miss Fanny Bright
Was seated by my side
The horse was lean and lank
Misfortune seemed his lot
We got into a drifted bank
And then we got upsot
Oh, jingle bells, jingle bells
Jingle all the way
Oh, what fun it is to ride
In a one horse open sleigh
Jingle bells, jingle bells
Jingle all the way
Oh, what fun it is to ride
In a one horse open sleigh yeah
Jingle bells, jingle bells
Jingle all the way
Oh, what fun it is to ride
In a one horse open sleigh
Jingle bells, jingle bells
Jingle all the way
Oh, what fun it is to ride
In a one horse open sleigh
The Twelve Days of Christmas
On the first day of Christmas,
my true love sent to me
A partridge in a pear tree.
On the second day of Christmas,
my true love sent to me
Two turtle doves,
And a partridge in a pear tree.
On the third day of Christmas,
my true love sent to me
Three French hens,
Two turtle doves,
And a partridge in a pear tree.
On the fourth day of Christmas,
my true love sent to me
Four calling birds,
Three French hens,
Two turtle doves,
And a partridge in a pear tree.
On the fifth day of Christmas,
my true love sent to me
Five golden rings,
Four calling birds,
Three French hens,
Two turtle doves,
And a partridge in a pear tree.
On the sixth day of Christmas,
my true love sent to me
Six geese a-laying,
Five golden rings,
Four calling birds,
Three French hens,
Two turtle doves,
And a partridge in a pear tree.
On the seventh day of Christmas,
my true love sent to me
Seven swans a-swimming,
Six geese a-laying,
Five golden rings,
Four calling birds,
Three French hens,
Two turtle doves,
And a partridge in a pear tree.
On the eighth day of Christmas,
my true love sent to me
Eight maids a-milking,
Seven swans a-swimming,
Six geese a-laying,
Five golden rings,
Four calling birds,
Three French hens,
Two turtle doves,
And a partridge in a pear tree.
On the ninth day of Christmas,
my true love sent to me
Nine ladies dancing,
Eight maids a-milking,
Seven swans a-swimming,
Six geese a-laying,
Five golden rings,
Four calling birds,
Three French hens,
Two turtle doves,
And a partridge in a pear tree.
On the tenth day of Christmas,
my true love sent to me
Ten lords a-leaping,
Nine ladies dancing,
Eight maids a-milking,
Seven swans a-swimming,
Six geese a-laying,
Five golden rings,
Four calling birds,
Three French hens,
Two turtle doves,
And a partridge in a pear tree.
On the eleventh day of Christmas,
my true love sent to me
Eleven pipers piping,
Ten lords a-leaping,
Nine ladies dancing,
Eight maids a-milking,
Seven swans a-swimming,
Six geese a-laying,
Five golden rings,
Four calling birds,
Three French hens,
Two turtle doves,
And a partridge in a pear tree.
On the twelfth day of Christmas,
my true love sent to me
Twelve drummers drumming,
Eleven pipers piping,
Ten lords a-leaping,
Nine ladies dancing,
Eight maids a-milking,
Seven swans a-swimming,
Six geese a-laying,
Five golden rings,
Four calling birds,
Three French hens,
Two turtle doves,
And a partridge in a pear tree
[Suppressed Sound Link]
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Composite Technology's DeWind Announces...
The Installation of Prototype D8.2 Wind Turbine at Cuxhaven, Germany:
High Performance 2 Megawatt DeWind D8.2 Ready for Final Testing...
Last Update: 2:38 PM ET Dec 22, 2006
http://tinyurl.com/yf4cqa
IRVINE, Calif., Dec 22, 2006 /PRNewswire-FirstCall via COMTEX/ -- Composite Technology Corporation (CTC) (CPTC) announced today that its subsidiary DeWind Inc., has completed erection of the high performance 2 megawatt DeWind D8.2 wind turbine at the DEWI-Offshore and Certification Centre GmbH (DEWI-OCC) test site in Cuxhaven, Germany.
A photo of the turbine installed on an 80 meter tower may be seen at:
http://www.eunrg.com/product_1.htm
and in a PDF format attached to this press release on CTC's web site.
"DeWind has received the initial approval of the load calculation from DEWI-OCC. The engineering team will now focus on completing the suite of calculations and tests required for full wind turbine certification," said Vic Lilly, Chief Technology Officer for CTC and head of Wind Turbine Engineering for DeWind Ltd.
"Power curve testing will begin after the holidays and we are confident that certification will be achieved in the first quarter of 2007 due to our current engineering modeling of the excellent wind regime at the site."
Wind turbines undergo a certification process to conform to internationally recognized standards set by the International Electrotechnical Commission (IEC). DEWI-OCC provides type approval and certification services to IEC standards for manufacturers of wind turbines. DEWI-OCC was founded by the shareholders of the German Wind Energy Institute (DEWI), along with the city and district of Cuxhaven.
The DeWind D8.2 uses a Voith WinDrive(R) and a synchronous generator connected directly to the grid to produce power at 13,800 Volts, without the use of power electronics. The WinDrive(R) is a hydrodynamic torque converter that allows the variable speed of the wind to be converted to a constant speed allowing clean power to be delivered to the grid.
Michael Porter, President of both CTC and DeWind Inc., stated, "This is a major milestone in the introduction of utility scale wind turbines utilizing a synchronous generator connected directly to the grid. By removing power electronics and using synchronous generation the DeWind D8.2 sets a clear precedent and takes another step closer to wind power being considered a true power plant."
About CTC:
Composite Technology Corporation, based in Irvine, California, USA develops, manufactures and sells high performance electrical transmission and renewable energy generation products through its subsidiaries:
* DeWind, Inc., and DeWind Ltd.(formerly EU Energy Wind Ltd) produce,
sell, and license the DeWind series of wind energy turbines including
the 50Hz D6 rated at 1.25 megawatts (MW) and the 50Hz D8 rated at 2MW,
both noted for their reliability. In 2007, the first new 2MW D8.2
turbines are planned to be delivered to North American customers from
assembly operations at TECO Westinghouse Motor Company in Texas. The
D8.2 utilizes the advanced WinDrive(R) hydrodynamic torque converter
developed by Voith AG with a synchronous AC generator that is able to
connect directly to the grid without the use of power conversion
electronics. The DeWind D8.2 will be available in both a 60Hz and 50Hz
version.
* CTC Cable Corporation produces composite rod for use in its proprietary
ACCC aluminum conductor composite core. ACCC conductors virtually
eliminate the sag in power lines caused by high current and high line
temperatures. ACCC conductors also reduce electricity line losses, and
have demonstrated significant savings in capital and operating expenses
when substituted for other conductors. ACCC conductors enable grid
operators to eliminate blackouts and brownouts, providing a 'reserve
electrical capacity' by operating at higher temperatures. ACCC
conductors are an innovative solution for reconductoring power lines,
constructing new lines and crossing large spans. ACCC composite rod is
delivered to qualified conductor manufacturers worldwide for local ACCC
conductor production and resale into local markets.
For further information visit our websites: www.compositetechcorp.com & www.eunrg.com
This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Composite Technology Corporation (Company). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, competition with larger companies, development of and demand for a new technology, risks associated with a startup company, risks associated with international transactions, the ability of the company to convert quotations and framework agreements into firm orders, general economic conditions, the availability of funds for capital expenditure by customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, successful integration of the EU Energy acquisition, ability to produce the turbines and acquire its components, ability to maintain quality control, collection-related and currency risks from international transactions, the successful outcome of joint venture negotiations, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company including those that are found in the Company's Annual Report filed with the SEC on Form 10-K for fiscal year ended September 30, 2005 and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K and including those pertaining to EU Energy that will be included with or prior to the filing of the Company's next Quarterly or Annual Report.
SOURCE Composite Technology Corporation
Investor Relations, James Carswell of Composite Technology Corporation, +1-949-428-8500 http://www.eunrg.com Copyright (C) 2006 PR Newswire. All rights reserved
Core consumer inflation flat in November:
Year-over-year gain in core prices falls to 2.2%
By Rex Nutting, MarketWatch
Last Update: 8:54 AM ET Dec 22, 2006
http://tinyurl.com/te4lw
WASHINGTON (MarketWatch) -- Consumer prices were flat in November, the Commerce Department reported Friday, bringing the year-over-year increase in core inflation down to 2.2%, closer to the Federal Reserve's comfort zone of 2%
The personal consumption expenditure price index was unchanged, as was the core PCE price index, which excludes food and energy prices.
It was the lowest core inflation in four years. Core prices have risen at a 1.8% annual rate over the past three months.
Before November's report, core prices had risen 2.4% on a year-over-year basis for three months in a row, heightening the Fed's concerns that inflation may not retreat as expected and that further hikes in U.S. interest rates could be needed.
The government also reported that personal incomes rose 0.3% in November following a 0.3% gain in October.
Employee compensation rose 0.4%. Real disposable incomes also increased 0.3%
Economists, as polled by MarketWatch, had expected incomes to rise 0.4%
Per-capita incomes rose to $32,280 per year from $32,218.
Consumer spending, meanwhile, increased 0.5%, as expected. It was the biggest jump in nominal spending since July. With prices unchanged, inflation-adjusted spending also increased 0.5%, matching October's gain.
With spending rising faster than incomes, the personal savings rate fell to negative 1% from negative 0.7% in September and October. The savings rate has been negative for 20 straight months.
The savings rate can be negative when consumers borrow or sell assets to support current consumption.
Inflation-adjusted, or real, spending on durable goods increased 1.6%, the biggest increase since July. Real spending on nondurable goods rose 1%. Real spending on services increased 0.1%, the smallest gain since June.
In a separate report, the Commerce Department said orders for durable goods rose 1.9% in November after an 8.2% plunge in October, as computer and aircraft orders bounced back. However, orders for core capital goods fell for the second straight month.
Rex Nutting is Washington bureau chief of MarketWatch.
Bellwether Report Large-Cap Newsletter for December 21st 2006:
Holiday Blahs and Philly Fed Pressure Stocks...
Corporate Info:
I can't really say the bait and switch is in affect because the market really hasn't been able to get out of the gate. There is a sense that a lot of folks are done for the year, which means there isn't an axe to grind either way. This usually means stocks will drift.
Certainly, there are two concerns going into the New Year, corporate earnings and the status of the economy. What will the Fed do is anyone's guess. At this point, they don't have to cut rates, but simply acknowledge there are troubled areas of the economy. Right now, we're greeted mostly with threats of higher rates, and talk of inflation.
Philadelphia Region Continues to Stumble:
There is one area of the nation where the economy is clearly trapped in a sinkhole. The Philly Fed released its latest survey of business conditions in the region (PA, NJ, and DE), and not only is not a pretty picture, it's getting uglier by the day. If the rest of the nation was experiencing the kinds of trends scene in the Philadelphia region, the Fed would have to cut rates today.
General business conditions slipped to their weakest reading since April 2003, and save for a bump in November, the trend has been decidedly tepid since August. Inventories have been a mixed bag all year long, as it seems there has been a concerted effort to play inventories close to the vest. More discerning is the trend in new orders, down for the second consecutive month, it portends to future weakness in the area.
New Orders Table:
There was a silver lining to the report, prices paid, were lower for the fifth month in a row.
The Philly Fed Data Points Table:
Prices Paid Chart:
Low prices are the crux of the discussion on interest rates and the Fed; then there is the state of the overall economy. In the Philadelphia region, and many others too, higher prices aren't the main threat, but instead economies sinking even further.
Natural Gas Inventory:
Natural gas supplies fell this week by 71.0 billion cubic feet to 3.167 trillion cubic feet, which was roughly in line with the Street's expectations of a draw of 73.0 billion cubic feet. Current inventory levels remain at the upper-end of its five-year average, but the weather continues to be the real driver of natural gas.
The official beginning of winter is quickly approaching, and despite the blizzard in the Rocky Mountains, it appears most of the country will not have a white Christmas. Natural gas prices have fallen below $7.00, and are trying to fight back, but it will be hard for the bulls to grab a foothold if the temperatures remain at current levels.
I'm not so sure we can pin today's weakness solely on the Philly Fed, but it's playing a role (natural gas is a non-event today). Many times I've said the market would rather get strong economic data (and deal with the rambunctious Fed) rather than slow economic data at this stage of the game.
Market Commentary By Charles Payne, CEO & Principal Analyst of Wall Street Strategies.
Bellwether Report has partnered with Wall Street Strategies, an independent research firm based out of New York City, to provide proffesional research for our Large-Cap Members.
U.S. stocks lower after weak manufacturing data:
Investors also weigh weaker-than-expected GDP, M&A activity...
By Nick Godt, MarketWatch
Last Update: 1:11 PM ET Dec 21, 2006
http://tinyurl.com/ylvxtz
NEW YORK (MarketWatch) -- U.S. stocks were lower midday on Thursday, as investors reacted to a weaker-than-expected regional manufacturing survey and a downward revision of third-quarter economic growth, which offset positive momentum from deal-making by Raytheon Co. and Glaxo Smithkline Plc.
Disappointing earnings news from Nike Inc. (NKE) and Bed Bath and Beyond Inc. (BBBY) also weighed on sentiment, eroding hopes for the traditional "Santa Claus" rally.
"It's a combination of economic weakness combined with the malaise befalling the market as we approach the holidays," said Robert Pavlik, chief investment officer at Oak Tree Asset Management. "Namely, we've got more volatility as many professionals are out already."
The Dow Jones Industrial Average ($INDU) was down 51 points at 12,412.
Weaker-than-expected economic data hit cyclical blue-chip stocks, such as Alcoa Inc. (AA), which fell 3.4% and Caterpillar Inc. (CAT), which lost 1%.
Meanwhile, JP Morgan Chase & Co. (JPM) provided support, gaining over 1%.
The S&P 500 index ($SPX) was down 5 points at 1,418 and the Nasdaq Composite (COMP) gave up 11 points to 2,416.
Technology shares, which have led the market's rally since September, continued their weakening trend of the past few sessions after a downgrade of PMC-Sierra Inc. (PMCS) and lower forecasts from Jabil Circuit Inc. (JBL).
News that economic growth was revised to 2% for the third quarter from a previous estimate of 2.2% provided a mixed backdrop for stocks at the open.
"In the bizarro world of Wall Street, weak economic data can be good for those that are hoping for a rate cut next year," said Oaktree's Pavlik.
But at midday, the Philadelphia Federal Reserve reported that manufacturing activity had weakened much worse than expected, putting more a negative spin on the economic picture.
Stock investors have been walking a fine line in recent months amid hopes that the economy will have a soft landing in 2007, in spite of a fast-falling housing market.
In that light, weakening economic data is sometimes still seen as positive, as it boosts the chances that the Fed will soon cut interest rates and prevent a hard landing.
On the positive side, the market had welcomed a new batch of deals at the open, boosting hopes that the vigorous deal-making seen this year will continue into 2007,
"With only eleven days remaining in 2006, M&A continues to demonstrate vibrancy across sectors and across borders," said Charles Campbell, senior sales trader at Miller Tabak.
Among the deals on tap Wednesday, Raytheon (RTN) agreed to sell its aircraft-making unit to Canada's Onex and Goldman Sachs (GS) for $3.3 billion. Raytheon also will buy back $750 million in stock.
And Britain's GlaxoSmithKline (GSK) said it will buy Praecis Pharmaceuticals (PRCS) for $54.8 million.
Investors also hope the market can continue to benefit from the traditional tendency of stocks to post gains before and right after the holidays, a so-called "Santa Claus" rally.
This rally happens as investors unload underperforming stocks for tax purposes in the first part of December and then put the money to use in the latter part of the month, Sam Stovall, chief investment strategist at S&P, tells MarketWatch. Listen to Stovall.
Oaktree's Pavlik, meanwhile, said he remains cautiously optimistic that the market can advance further through the final week of the year, even if "fewer people are in, which creates volatility".
"There's still some bargains out there," he said, noting that Best Buy Co. Inc. (BBY) was gaining over 2% as investors picked it up from "the sales rack."
Investors also received disappointing earnings from Athletic shoes maker Nike Inc. (NKE) and retailer Bed Bath & Beyond Inc. (BBBY).
On the upside, ConAgra Foods Inc. (CAG) rose 4.8% after the maker of Healthy Choice meals posted second-quarter earnings that beat expectations.
General Mills Inc. (GIS) gained 1.5% after its earnings also beat expectations.
In the broad market for equities, trading volume was 719 million on the New York Stock Exchange and 964 million on the Nasdaq.
Declining issues outpaced gainers 18 to 13 on the Big Board and 15 to 12 on the Nasdaq.
By sector, technology services ($GSV) and consumer issues ($CMR) were on the upside, while precious metals miners ($XAU), natural gas ($XNG) and oil ($XOI) led the downside.
Crude-oil futures fell 94 to $62.78 a barrel. See Futures Movers. Exxon Mobil Corp. (XOM) dropped 0.7%, also weighing on the Dow Industrials.
Gold futures were under pressure for a second day in a row. The February contract was last down $3.20 at $621 an ounce. Freeport McMoRan Copper and Gold (FCX) was weighing heavily, losing 6.3%. See Metal Stocks.
Treasurys were trending higher after the weaker GDP data as economic softness supports bonds. The benchmark 10-year Treasury note last was up 4/32 at 100-10/32 with a yield ($TNX) of 4.583%
The dollar was pinned in a tight-range in thin pre-holiday trade. The dollar rose 0.2% against the euro and up 0.1% against yen.
News for 'RBAK' - (DBA Downgrades REDBACK NETWORKS INC to SECTOR PERFORM)
Dec 21, 2006 (Nelson's Broker Summaries via COMTEX) --
Company: REDBACK NETWORKS INC
Report Date: December 19, 2006
Report Headline: "Let's Lock it In"
Current Recommendation: SECTOR PERFORM
Previous Recommendation: OUTPERFORM
Research Firm: DBA
Analyst: MARK SUE
Industry: TECHNOL/O/C EQPT
http://www.thomsonfinancial.com
Copyright 2006, Nelson Information, a Thomson Financial company
Leading indicators rise 0.1% in November:
Slow growth likely to continue, but not get slower, researchers say...
By Rex Nutting, MarketWatch
Last Update: 10:02 AM ET Dec 21, 2006
http://tinyurl.com/th37c
WASHINGTON (MarketWatch) - Slow economic growth is likely to continue in the near term, the Conference Board said Thursday as it reported that the index of leading economic indicators rose 0.1% in November, the third straight increase.
The increase was exactly as predicted by economists polled by MarketWatch.
The index rose a downwardly revised 0.1% in October and 0.4% in September.
Four of the 10 leading indicators increased in November: money supply, vendor performance, core capital goods orders and stock prices. Five indicators contracted: jobless claims, building permits, the interest rate spread, the factory workweek, and consumer expectations. Orders for consumer goods held steady.
Over the past six months, the index is up 0.2%, with half of the 10 indicators growing. The index is designed to foreshadow turning points in the economy six to nine months ahead.
"The slower economy of the second half of 2006 might continue into the first half of 2007," said Ken Goldstein, labor economist for the private research group, in a statement. "But it may not get any slower."
Earlier Thursday, the Commerce Department said gross domestic product increased at a 2% annual rate in the third quarter, down from the 2.6% in the second quarter and revised slightly lower from an earlier estimate of 2.2% for the third quarter.
Goldstein said the economy "retains considerable strength." Interest rates are low, unemployment is low, and inflation is low. And "the housing slump does not appear to be deepening."
For the economy to slow further from here, "something else must develop," Goldstein said.
The index of coincident indicators increased 0.2% and the index of lagging indicators increased 0.5%
Rex Nutting is Washington bureau chief of MarketWatch.
Redback Networks (RBAK) cut to HOLD at Morgan Joseph...
GDP revised down to 2% in third quarter:
By Rex Nutting
Last Update: 8:30 AM ET Dec 21, 2006
http://tinyurl.com/ya6wkv
WASHINGTON (MarketWatch) - The U.S. economy grew at a 2% real seasonally adjusted annual rate in the third quarter, slightly lower than the 2.2% estimated a month ago, the Commerce Department reported Thursday.
It was the slowest growth since the fourth quarter of 2005.
The economy grew at a 2.6% pace in the second quarter.
The big picture take-away from third and final estimate of gross domestic product was little changed from the report from a month earlier.
As before, the collapse of homebuilding was a large drag on growth, offset by healthy consumer spending and robust capital spending by businesses.
Disposable personal incomes were revised higher, while profits were slightly lower, although profits have still risen at the fastest pace in 22 years over the past year.
Core consumer prices were unrevised in the report, showing a 2.2% annualized gain, still in the Federal Reserve's discomfort zone.
News for 'RBAK'-DJ Redback-Ericsson Deal
Carries $61M Termination Fee (RBAK)
Redback Networks Inc. (RBAK) said it must pay a $61 million fee if its merger deal with Telefon AB L. M. Ericsson (ERIC) is terminated under certain conditions.
Ericsson, a Swedish mobile-phone networks maker, said on Tuesday it will buy Redback Networks in San Jose, Calif., for $2.1 billion in cash.
Redback Networks Inc. shares closed Wednesday up more than 21% at $25.66 each. They have gained more than 87% in value in the past year.
Greg Wright, Dow Jones Newswires; 202-862-3546; gregory.wright@dowjones.com
Dow Jones Newswires
December 20, 2006 19:40 ET (00:40 GMT)
Copyright (c) 2006 Dow Jones & Company, Inc.- - 07 40 PM EST 12-20-06
Sonus CEO says Redback sale good for industry:
Says proposed Ericsson purchase further legitimizes new technologies...
By Jeffry Bartash, MarketWatch
Last Update: 4:53 PM ET Dec 20, 2006
http://tinyurl.com/yysnd2
WASHINGTON (MarketWatch) - Sonus Networks Chief Executive Hassan Ahmed said Wednesday that Ericsson LM's proposed $2.1 billion acquisition of Redback Networks Inc. could accelerate the migration toward "next-generation" network technology and lead to all kinds of new services for consumers in a few years.
The decision to purchase Redback (RBAK), Ahmed said, indicates that Ericsson and other traditional equipment vendors are finally realizing the potential of the new technologies.
"Incumbent suppliers are waking up and moving the ball forward to build the broadband architecture of the future," the Sonus (SONS) CEO said in an interview with MarketWatch.
For decades, Ericsson (ERIC) has been a leading provider of circuit-switched or "legacy" equipment used in networks of large communications companies. Yet carriers are increasingly removing older gear and substituting new Internet-based technologies.
Internet-based technologies are cheaper to operate in the long run and better suited to enable phone or cable companies to offer the so-called triple play - voice, video and high-speed Internet service. In the U.S. and other developed nations, the race is on to see who can deliver all the services a customers needs, all on one bill.
The problem with older technologies, Ahmed said, is that they limit the choices of where and when a customer can receive a service. "There's only one way to watch your cable channel - on your TV," he said.
Newer network technologies, some of which are known as IP multimedia subsystems, would allow carriers newfound flexibility to tailor their services to the needs of each individual customer, he said. Any device connected to a network could receive virtually any service.
For example, customers could watch TV on their mobile phone or computer, or receive text or wireless messages on their television.
"IMS knows who you are and what services you can have," Ahmed said.
Sonus, based in Chelmsford, Mass., develops equipment that helps carriers to deliver Internet-based phone service. San Jose, Calif.-based Redback makes products that help network operators to deliver television and other services over the Internet. The companies are not direct competitors.
Like Redback, Sonus has developed a good reputation for its technology and products and has struck deals with four of the world's five largest network operators, Ahmed said. He estimate that about 20% of the world's Internet-telephone traffic crosses over technology supplied by Sonus.
Asked if Sonus has been approached by potential suitors, Ahmed declined to comment. He said the company is working every day to improve its products and believes Sonus could be a long-term competitor in the industry.
Competitors of Sonus include the much-larger Nortel Networks Inc. (NT) and Alcatel-Lucent (ALU), the recently combined French-American entity. One reason Alcatel sought to acquire Lucent was to gain access to its promising IMS-related technologies.
Jeffry Bartash is a reporter for MarketWatch in Washington.
U.S. stock futures rise on tech hopes, Asia rally:
Ericsson buying Redback for $2.1 billion in deal that will challenge Cisco...
By Steve Goldstein, MarketWatch
Last Update: 8:06 AM ET Dec 20, 2006
http://tinyurl.com/yxjopv
LONDON (MarketWatch) -- U.S. stock futures advanced on Wednesday, on hopes for technology sector gains after Ericsson agreed to buy a network hardware company and by a recovery in Asian stock markets after Thailand's government reversed course on a widely-derided decision to limit foreign investment.
S&P 500 futures rose 2.10 points at 1,438.30 and Nasdaq 100 futures rose 7.00 points at 1,810.25. Dow industrial futures gained 12 points at 12,563.
On Tuesday, the Dow industrials hit a record high, led by gains in the energy sector on a rise in crude oil prices. The Dow rose 30 points, the S&P 500 rose 3 points, while the Nasdaq Composite lost 6 points.
Asian stocks reversed Tuesday's losses, after Thailand's government reversed a decision on capital controls.
Thailand's benchmark SET index rallied 11% -- though that didn't fully offset Monday's losses -- and the Nikkei 225 advanced 1.4% in Tokyo. European stock markets also rose on Wednesday. Read more about Thailand's rebound.
Crude oil futures rose 38 cents at $63.84 a barrel after Tuesday's gains, with weekly energy data on tap. Analysts expect gasoline inventories to rise.
The euro rose slightly on the dollar, while the dollar was flat against the yen.
Of companies in focus, Ericsson (ERIC) agreed to buy Redback Networks (RBAK) for $2.1 billion cash, an 18% premium to Tuesday's close. The deal in part will allow the Swedish telecommunications equipment maker to more closely compete against Cisco Systems (CSCO).
Redback shares rallied 17% at $24.32 in pre-open trading, while Ericsson advanced 0.8% to $40.91
Juniper Technologies (JNPR), which was downgraded by CIBC World Markets, slipped 2.1% at $18.81
Cisco was unchanged at $27.64
Arcelor Mittal (MT) continued steel sector consolidation with its deal to buy Mexico's Sicartsa for $1.44 billion from Grupo Villacero. Mittal shares tacked on 1.5% to $42.03 ahead of the open.
Harrah's Entertainment (HET) late Tuesday agreed to be bought by two private-equity firms for $90 a share in cash, or $27.8 billion when including assumed debt. Texas Pacific Group and Apollo Management topped a bid from Penn National Gaming (PENN), according to published reports.
Outside of M&A, Dell Computer (DELL) late Tuesday named Donald Carty as its new chief financial officer, replacing James M. Schneider. The move is effective Jan. 1 and comes amid a probe into stock options accounting. The stock edged up 2 cents to $26.14 in pre-open trading.
Pepsi Bottling (PBG) forecast 2007 earnings for the first time with a per-share forecast between $1.92 and $2 a share that came in below Wall Street estimates. It held to its 2006 outlook.
Ford Motor (F) was upgraded, for a second-straight day, by KeyBanc Capital to hold from sell. Analyst Brett Hoselton said that while fundamentals aren't expected to improve meaningfully in 2007, he does see earnings deterioration at the automaker tapering off.
Greenbrier Companies (GBX) said fiscal first-quarter earnings would miss its earlier expectations due to weakness at its North American railcar making unit.
Women's clothing retailer Christopher & Banks (CBK) forecast fourth-quarter earnings below consensus estimates.
Medical products maker FoxHollow Technologies (FOXH) cut its fourth-quarter sales outlook. Merck & Co. (MRK) last month bought an 11% stake in the company.
Quarterly results are due from FedEx (FDX), Darden Restaurants (DRI), and after the close of trading, Nike Inc. (NKE) and Bed Bath and Beyond (BBBY).
Steve Goldstein is MarketWatch's London bureau chief.
MidnightTrader's Pre-Market News Movers:
Midnight Trader
08:19 a.m. 12/20/2006
Boston, Dec 20, 2006 (MidnightTrader via COMTEX) -- Some of the stocks moving on news-driven events in today's pre-market include:
JNPR, -1.5%
RBAK, +17.5%
PANC, -34.4%
FFHL, +6%
KOSN, +15.5%
EPCT, +8.9%
NFLD, -52.1%
FDX, -2.7%
BEAS, +1.1%
KMX, +8%
SMOD, +4.8%
PALM, -0.3%
FOXH, -9.9%
PMTI, -1.3%
FSII, -3.8%
GILD, +1.3%
GE, +0.5%
http://www.midnighttrader.com
LOOK AT RBAK'S CHART IN AFTER-HOURS...
On this BUYOUT NEWS!...
Invitation to Ericsson Press and Analyst Conferences:
Last Update: 7:19 PM ET Dec 19, 2006
STOCKHOLM, SWEDEN, Dec 19, 2006 (MARKET WIRE via COMTEX) -- Ericsson (ERIC) and Redback Networks Inc. (RBAK) have today announced that they have signed a definitive agreement under which Ericsson will acquire Redback for USD 25.00 per share, or an aggregate price of approximately USD 1.9 billion. The offer represents a premium of 60 percent to Redback's [90-day] volume weighted average stock price.
PRESS CONFERENCE AND LIVE WEBCAST:
The press conference will begin at 9am CET (8am UK time, 3am EST and 5pm local time Japan) at Ericsson headquarters, Torshamnsgatan 23, Kista, Sweden. Ericsson President and CEO Carl-Henric Svanberg will comment on the announcement and take questions.
A live webcast of the press conference will be available on the internet at
www.ericsson.com/investors
and
www.ericsson.com/press
CONFERENCE CALL FOR ANALYSTS, INVESTORS AND MEDIA:
The conference call for financial analysts, investors and media will begin at 3pm CET (2pm UK time, 9am EST and 11pm local time Japan). Svanberg will comment on the announcement and take questions. Please call in at least 15 minutes before the conference call begins. Because there is usually a large number of callers, it might take some time before you are connected.
A live audio webcast of the conference call will be available on the internet at www.ericsson.com/investors and www.ericsson.com/press.
The call-in numbers for the conference call are: Sweden: +46 (0)8 5352 6408 UK & Europe: +44 (0)20 7806 1955 U.S. & International: +1 718 354 1388
REPLAY:
A replay of the conference call will be available from about two hours after the completion of the conference call and will be available until December 22, 6pm CET.
Sweden: +46 (0)8 5876 9441 UK & European replay number: +44 (0)20 7806 1970 U.S. replay number: +1 718 354 1112 Replay access code: 9817420#
An on-demand audio webcast of the press conference and the conference call will be available on the internet at www.ericsson.com/investors and www.ericsson.com/press during the day. Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world.
Read more at www.ericsson.com
Copyright Copyright Hugin ASA 2006. All rights reserved.
FOR FURTHER INFORMATION, PLEASE CONTACT Ericsson Media Relations Phone: +46 70 222 7744, +46 8 719 6992 E-mail: Contact via http://www.marketwire.com/mw/emailprcntct?id=FC1A615AAF5AB154 Ericsson Investor Relations Phone: +46 8 719 0858 E-mail: Contact via http://www.marketwire.com/mw/emailprcntct?id=7D67925941378BA5 Investor Relations, North America Phone: +1 212 843 8435 E-mail: Contact via http://www.marketwire.com/mw/emailprcntct?id=A3AA21B77216093B
SOURCE: Ericsson
Copyright 2006 Market Wire, All rights reserved.
Redback to Be Acquired by Ericsson for $2.1 Billion...
Tuesday December 19, 7:03 pm ET
Redback to Retain Management, and Grow Its Routing Operations Worldwide As an Independent, Wholly-Owned Subsidiary of Ericsson...
http://biz.yahoo.com/bw/061219/20061219006127.html?.v=1
SAN JOSE, Calif.--(BUSINESS WIRE)--Redback Networks Inc. (NASDAQ: RBAK - News), a market leader in multi-service edge routing for next generation broadband networks, is today announcing a definitive agreement to be acquired by Ericsson (NASDAQ: ERIC - News), the world's leading telecommunications supplier, for $2.1 billion or $25 dollars per Redback share. The acquisition is expected to occur by means of a tender offer for all of the outstanding shares of Redback common stock. The acquisition is subject to customary closing conditions and regulatory approvals, and is expected to be completed in early 2007.
The acquisition of Redback will play a key role in Ericsson's strategy to help telecommunications carriers lower costs and upgrade their networks for broadband, telephone, video and mobility services. Redback will retain its management team and operate as a wholly-owned subsidiary of Ericsson. In accordance with the acquisition, Redback plans to accelerate its product development and continue to expand its operations to meet growing customer demands for next generation broadband networks. Redback will continue to focus on video and mobility routing markets to leap-frog its traditional competitors.
"This agreement is about accelerating market growth, integrating IP routing and mobility expertise and shaping the future of next generation networks. Video changes everything about networks today. Redback is the acknowledged technology leader delivering broadband, phone, video and mobility services over Internet-based infrastructures," said Kevin DeNuccio, Redback president and CEO, who will report directly to a management board chaired by the president and CEO of Ericsson, Carl-Henric Svanberg. "We believe Redback now will have the global reach and financial resources to accelerate its own routing technology innovation and grow market share faster than our traditional routing competitors."
"Redback has always had a well-known technology advantage over its larger routing competitors in broadband services edge routing," said Carl-Henric Svanberg of Ericsson. "We believe the combined strengths of both companies in mobility and IP routing will create significant value for customers and shareholders. Today's agreement accelerates Ericsson's ambition to build leadership in the fast growing broadband and IP services market."
The total addressable market for IP edge routing is expected to exceed $5 billion by 2009, according to the Yankee Group. Ericsson and Redback believe there is market opportunity to upgrade more than two billion wired and wireless users worldwide over the next ten years to all IP-based broadband infrastructures. This opportunity is ten times larger than the 250 million broadband users today. On a worldwide basis, all carriers have some plans to unify communications and entertainment services over IP-based broadband networks.
Citigroup and SEB Enskilda are acting as Ericsson's financial advisors in the acquisition. UBS is acting as the financial advisor for Redback.
About Redback Networks:
Redback Networks Inc. manages 50 million broadband connections for 15 of the top 20 telephone carriers worldwide. Redback's multi-service routing platform delivers next generation broadband services such as VoIP, IPTV and On-Demand Video. Redback Networks has more than 500 carrier customers worldwide and is based in San Jose, CA. In 2006, Redback marks its 10 year anniversary, celebrating ten years of broadband innovation. For more information, visit Redback Networks at www.redback.com.
Redback Media Relations
Zenobia Austin Godschalk, BPR
(w) 404.848.9507
(c) 650.269.8315
About Ericsson
Ericsson is shaping the future of mobile and broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create some of the most powerful communications companies in the world. For more information visit: www.ericsson.com
Ericsson Media Relations
Phone: +46 8 719 6992
E-mail: press.relations@ericsson.com
Investor Relations, North America
Phone: +1 212 843 8435
E-mail: investor.relations@ericsson.com
CONFERENCE CALL
Meeting Date: Wednesday, December 20, 2006 08:00 AM (Pacific Time)
To Join Audio Conference
Primary Dial-In: 1 (800) 559-2403
Alternate Dial-In: 1 (847) 619-6534
Please be prepared to provide the following information to gain access to your audio conference call.
Confirmation Number: 16614405
Host Name: Kevin DeNuccio
Company: Redback Networks, Inc
A webcast has been set-up for press and industry analysts. The weblink is below.
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=80 517&eventID=1443118 (Due to its length, this URL may need to be copied/pasted into you Internet browser's address field. Remove the extra space if one exists.)
* REDBACK and SmartEdge are trademarks registered at the U.S. Patent and Trademark Office and in other countries. NetOp is a trademark of Redback Networks Inc. All other products or services mentioned are the trademark, service marks, registered trademarks or registered service marks of their respective owners.
THIS PRESS RELEASE IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT AN OFFER TO BUY OR THE SOLICITATION OF AN OFFER TO SELL ANY SECURITIES. THE SOLICITATION AND THE OFFER TO BUY SHARES OF REDBACK COMMON STOCK WILL ONLY BE MADE PURSUANT TO AN OFFER TO PURCHASE AND RELATED MATERIALS THAT ERICSSON INTENDS TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION. REDBACK STOCKHOLDERS AND OTHER INVESTORS SHOULD READ THESE MATERIALS CAREFULLY BECAUSE THEY CONTAIN IMPORTANT INFORMATION, INCLUDING THE TERMS AND CONDITIONS OF THE OFFER. ONCE FILED, REDBACK STOCKHOLDERS AND OTHER INVESTORS WILL BE ABLE TO OBTAIN COPIES OF THE TENDER OFFER STATEMENT ON SCHEDULE 'TO', THE OFFER TO PURCHASE AND RELATED DOCUMENTS WITHOUT CHARGE FROM THE SECURITIES AND EXCHANGE COMMISSION THROUGH THE COMMISSION'S WEB SITE AT WWW.SEC.GOV. REDBACK STOCKHOLDERS AND OTHER INVESTORS ALSO WILL BE ABLE TO OBTAIN COPIES OF THESE DOCUMENTS, WITHOUT CHARGE, FROM THE INFORMATION AGENT FOR THE OFFER, THE DEALER MANAGER FOR THE OFFER, OR FROM ERICSSON. STOCKHOLDERS AND OTHER INVESTORS ARE URGED TO READ CAREFULLY THOSE MATERIALS PRIOR TO MAKING ANY DECISIONS WITH RESPECT TO THE OFFER.
Statements in this release that are not statements of historical fact may include forward looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Any such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include statements concerning the completion of the transactions contemplated by the merger agreement, including the merger and the timing thereof and the business opportunities afforded by the merger. Important factors that may cause actual results to differ include: risks that could prevent or delay the closing of the transaction, including customary conditions to closing an acquisition transaction of this type, including obtaining requisite regulatory clearances, and acceptance of the offer by holders of a sufficient number of shares of Redback common stock. For a discussion of other risks facing Redback's business, please refer to the documents filed by Redback Networks Inc. with the United States Securities and Exchange Commission from time to time.
Contact:
Redback Networks
Doug Wills, 408-750-5038 (Media)
dwills@redback.com
Investor Relations, 408-750-5505
investor_relations@redback.com
Source: Redback Networks Inc.
News for 'AKAM' - (Akamai Content Distribution Infrastructure Adopted in PLAYSTATION(R)Network)
TOKYO, Dec 19, 2006 (BUSINESS WIRE) -- (EDITOR'S NOTE: The following is an
English translation of the original Japanese version, prepared for the
convenience of our non-Japanese-speaking readers. In the case of any discrepancy
between the translation and the Japanese original, the latter shall prevail.)
Akamai Japan K.K., a subsidiary of Akamai Technologies, Inc. (NASDAQ: AKAM), the
leading global service provider for accelerating content and business processes
online, today announced that Akamai's services are adopted as the content
delivery platform by Sony Computer Entertainment Inc. (SCE) in its
PLAYSTATION(R)Network, an online service for PLAYSTATION 3 (PS3(TM)).
Within the online game market, Akamai has been a leader in content distribution
of downloadable PC software to end users on behalf of game software makers, such
as NHN Japan Corporation.
In addition to providing cutting-edge delivery services to Japanese companies
that offer online game content, such as SCE, Akamai's global platform is being
leveraged in Japan to drive the commercial use of the Internet - in an era of
rich content - by providing delivery services optimized to meet the particular
needs of companies in a variety of fields including image-delivery services,
financial services, food and beverage services, cosmetics, and multimedia.
Akamai's Digital Asset Solutions including Electronic Software Delivery and
Akamai Media Delivery are among the world's leading online game software
delivery services, providing dynamic mapping of the Internet by means of over
20,000 Akamai servers dispersed throughout the globe. Through the use of
Akamai's distributed delivery services, unlike alternative offerings that rely
on centralized data-center servers located domestically, it becomes possible to
achieve greater reliability and scale by delivering added value to ubiquitous
terminals, such as cell phones. Akamai's dynamic content delivery capabilities
also ensure high performance and reliability of dynamically-rendered,
personalized Web content.
Izumi Kawanishi, Corporate Executive and CTO Software of Sony Computer
Entertainment Inc., offered the following comments: "Since SCE has started
offering its online service called PLAYSTATION(R)Network that became available
with the launch of PS3, our collaboration with Akamai has made it possible to
deliver attractive entertainment content to PS3 users leveraging Akamai's
high-performance content delivery infrastructure. We will vigorously promote PS3
along with PLAYSTATION(R)Network as the new computer entertainment platform."
Paul Sagan, President and CEO of Akamai, said: "Akamai is committed to helping
enable the online business models for our customers in the gaming market by
ensuring high performance delivery of content and applications to next
generation devices. We are very excited about working with Sony Computer
Entertainment on enabling PS3 users to obtain games, media, and other content
via the Internet in their homes."
Akamai Japan (www.akamai.co.jp):
Akamai Japan K.K. was established on January 28, 2003 as a 100 percent
subsidiary of Akamai Technologies, Inc., which itself was established in 1998.
Akamai is the leading global service provider for accelerating content and
business processes online. Thousands of organizations have formed trusted
relationships with Akamai, improving their revenue and reducing costs by
maximizing the performance of their online businesses. Leveraging the Akamai
EdgePlatform, these organizations gain business advantage today, and have the
foundation for the emerging Web solutions of tomorrow. Akamai is "The Trusted
Choice for Online Business." For more information, visit www.akamai.com.
*PLAYSTATION is a registered trademark and PS3 is a trademark of Sony Computer
Entertainment Inc.
SOURCE: Akamai Technologies, Inc.
CONTACT: Akamai Japan MarketingSatoko Kosaki, 03-5777-6800info_akamai@akamai.co.jporAkamai Technologies, Inc.Jeff Young, 617-444-3913jyoung@akamai.com
Copyright Business Wire 2006
DOWNGRADE: Redback Networks (RBAK)
Downgraded by RBC Capital Mkts from:
Outperform to Sector Perform
Briefing.com
08:50 a.m. 12/19/2006
U.S. housing starts rise 6.7% in November:
By Rex Nutting
Last Update: 8:30 AM ET Dec 19, 2006
http://tinyurl.com/y7q49l
WASHINGTON (MarketWatch) - Construction on new homes rebounded in November, rising 6.7% after a whopping 14% drop in October, the Commerce Department reported Tuesday.
Building permits, meanwhile, fell 3% to a fresh nine-year low, signaling that the housing market remains very weak.
Starts rose 6.7% in November to a seasonally adjusted annual rate of 1.588 million. Starts are down 25.5% in the past year. Building permits, considered a leading indicator, fell 3% to a seasonally adjusted annual rate of 1.506 million.
Building permits are down 31.3% in the past year. The pace of starts in November was above the expected 1.54 million, while permits fell short of the 1.55 million expected by economists polled by MarketWatch.
U.S. Nov. PPI 2.0% vs. 0.7% expected:
By Robert Schroeder
Last Update: 8:30 AM ET Dec 19, 2006
http://tinyurl.com/y5xv9m
WASHINGTON (MarketWatch) -- Producer prices rose by much more than expected in November, with the core producer price index rising by the most since July 1980, the Labor Department said.
The November producer price index climbed by 2%, the biggest rise since November 1974, statistics show.
Most of the gain in the headline producer price number was in energy prices, which rose by 6.1%
Of that, 17.9% was gasoline prices, while 14.6% was diesel fuel.
Economists surveyed by MarketWatch were expecting the PPI to rise by 0.7%. They also forecast a 0.3% rise in the core PPI.
Bellwether Report Large-Cap Newsletter:
December 18th 2006
Will Oracle Be Great?
The market came out of the gate nicely this morning, only to falter, with investor angst once again being reflected in the migration to blue chips. Part of the problem for the NASDAQ today is Oracle’s earnings announcement, which has a lot of investors sitting on pins and needles. Larry Ellison has mounted an impressive charge (just goes to show what could happen if you stop digging in your rivals’ garbage and simply go to work), but after $20.0 billion in acquisitions the bear argument is back in play, that the company is still too tied to a database market that simply isn’t growing the way it once did.
I’m not so sure I buy that assertion but the anxiety is real. The good news for investors is this is the kind of doubt that builds long-term rallies; in fact, the current leg of the 2006 rally came from surprisingly strong earnings results over the last few weeks.
Current Account Deficit:
Third quarter 2006 current account deficit came in slightly higher than expected but at a new high mark. One compelling and not so exciting trend is the income payment made to foreign holders of US assets, the figure has trailed the US income on its assets abroad, until the second quarter of this year and is now beginning to stretch ahead.
The market is fighting back but is very indecisive at this point. We aren’t going to force the issue with any new ideas this afternoon.
Market Commentary By Charles Payne, CEO & Principal Analyst of Wall Street Strategies.
Oracle profit rises 21%; sales up 26%, in line w/ estimates...
By John Shinal
Last Update: 4:16 PM ET Dec 18, 2006
http://tinyurl.com/y9byew
SAN FRANCISCO (MarketWatch) -- Oracle Corp. (ORCL) reported Monday fiscal second-quarter profit rose 21%, as sales surged 26%, boosted by stronger demand for its business application software.
Redwood Shores, Calif.-based Oracle said net income for the period ended Nov. 30 rose to $967 million, or 18 cents a share, from $798 million, or 15 cents, a year earlier.
Sales rose to $4.16 billion, slightly topping the average estimate of analysts surveyed by Thomson First Call.
Excluding certain one-time items, Oracle said it earned 22 cents a share, matching Wall Street's expectations.
And it's trading DOWN in the after-hours session...Is this another case of "sell the news"?...
Home builders' confidence falls in December:
By Rex Nutting
Last Update: 1:00 PM ET Dec 18, 2006
http://tinyurl.com/yhfwjg
WASHINGTON (MarketWatch) - U.S. home builders were a bit more pessimistic about the housing market in December, but were growing more hopeful that home sales could perk up in six months, the National Association of Home Builders reported Monday.
The NAHB/Wells Fargo seasonally adjusted housing market index fell to 32 in December from 33 in November.
About a third of builders view the market as favorable.
Economists expected the index to improve to 34 in December.
The index for current sales of single-family homes remained at 33 in December.
The index for future sales of single-family homes rose from 45 to 48, the highest since June.
The index for buyers' traffic dropped from 26 to 23.
News for 'CYTR' - (CytRx Provides Update on Stroke Recovery Research Plans Further Preclinical Stroke Studies with Arimoclomol Slated for 1st Quarter 2007)
LOS ANGELES, Dec 18, 2006 (BUSINESS WIRE) -- CytRx Corporation (Nasdaq:CYTR), a
biopharmaceutical company engaged in the development and commercialization of
human therapeutics, today announced plans to initiate additional animal stroke
functional recovery studies with its lead oral drug candidate arimoclomol,
currently being evaluated as a therapeutic for amyotrophic lateral sclerosis
(ALS or Lou Gehrig's Disease). The animal studies are expected to begin in the
first quarter of 2007, and CytRx anticipates results of the studies will be
announced in the second quarter of 2007. In November 2006, CytRx presented data
at the Rodman & Renshaw 8th Annual Healthcare Conference demonstrating for the
first time that arimoclomol improved the functional recovery of motor skills in
an experimental rat model of stroke.
According to CytRx President and CEO Steven A. Kriegsman, "Our decision to
further study arimoclomol as a therapeutic for stroke recovery is based on the
promising results of this early-stage animal study. In addition, we have already
shown in our ALS clinical trial that arimoclomol can cross the human blood:brain
barrier, which is an important attribute for any potential stroke recovery
therapeutic."
In the recently completed rat study, stroke was induced by blocking blood flow
to parts of the brain causing cerebral oxygen deprivation. A subgroup of the
study rats were then dosed orally with arimoclomol daily for 28 days, beginning
one hour after stroke was induced. Recovery from stroke was measured by
monitoring sensory motor skills. While motor skills declined dramatically in all
study rats, those treated with arimoclomol recovered faster and more completely
than those untreated. In one functional capacity test, arimoclomol treated
animals were completely restored to normal non-stroke levels, indicating a
complete recovery using this particular measurement of stroke.
"The improvement in functional recovery from stroke observed with arimoclomol in
this initial preclinical study provides additional scientific support for the
broad therapeutic potential of the underlying mechanism of action of
arimoclomol," said CytRx Senior Vice President of Drug Development Jack Barber,
Ph.D. "CytRx will only initiate clinical development of arimoclomol for stroke
recovery if the subsequent planned studies demonstrate a substantial advantage
over other companies' drugs that were not successful in the clinic." Dr. Barber
added, "I am optimistic that the planned studies will support the potential of
arimoclomol for stroke recovery and look forward to sharing the upcoming results
with our investors."
About Stroke
According to the American Heart Association, 700,000 Americans each year
experience a new or recurrent stroke and, on average, every 45 seconds someone
in the United States has a stroke. Stroke is the third leading cause of death in
the U.S. and is the number one cause of long-term disability among Americans.
According to the American Heart Association, stroke cost almost $57 billion in
both direct and indirect costs in 2005.
About Arimoclomol
Arimoclomol is believed to function by stimulating a normal cellular protein
repair pathway through the activation of "molecular chaperones." Since damaged
proteins called aggregates are thought to play a role in many diseases, CytRx
believes that activation of molecular chaperones could have therapeutic efficacy
for a broad range of diseases.
In September 2006, CytRx announced that arimoclomol was shown to be safe and
well tolerated at all three doses tested in its Phase IIa clinical trial in
patients with amyotrophic lateral sclerosis (ALS or Lou Gehrig's disease). The
Company plans to enter a Phase IIb clinical trial with arimoclomol in ALS in the
3rd quarter of 2007, subject of U.S. Food and Drug Administration (FDA)
approval. The FDA has granted Fast Track designation and Orphan Drug status and
the European Commission has granted orphan medicinal product status to
arimoclomol for the treatment of ALS.
About CytRx Corporation
CytRx Corporation is a biopharmaceutical research and development company
engaged in the development of high-value human therapeutics. The Company owns
three clinical-stage compounds based on its small molecule "molecular chaperone"
co-induction technology. In September 2006, CytRx announced receipt of $24.5
million in a non-dilutive agreement with the privately-funded ALS Charitable
Remainder Trust to fund continued arimoclomol development for the treatment for
ALS in return for a one percent royalty from potential worldwide sales of
arimoclomol for the treatment of ALS. The Greater Los Angeles Chapter of The ALS
Association is the charitable beneficiary of the ALS Charitable Remainder Trust.
CytRx has a broad-based strategic alliance with the University of Massachusetts
Medical School to develop novel compounds in the areas of ALS, obesity, type 2
diabetes and cytomegalovirus (CMV) using RNAi technology. The Company has a
research program with Massachusetts General Hospital, Harvard University's
teaching hospital, to use RNAi technology to develop a drug for the treatment of
ALS. CytRx's Drug Discovery division, located in Worcester, Mass., focuses on
the use of RNAi technologies to develop small molecule and RNAi therapeutics to
treat obesity and type 2 diabetes. For more information, visit CytRx's Web site
at www.cytrx.com.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended. Such statements
involve risks and uncertainties that could cause actual events or results to
differ materially from the events or results described in the forward-looking
statements, including risks or uncertainties related to the outcome or results
of any future pre-clinical testing of arimoclomol on animal models of stroke
recovery, and other risk and uncertainties described in CytRx's most recently
filed SEC documents, such as its most recent annual report on Form 10-K, all
quarterly reports on Form 10-Q and any current reports on Form 8-K filed since
the date of the last Form 10-K. All forward-looking statements are based upon
information available to CytRx on the date the statements are first published.
CytRx undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.
SOURCE: CytRx Corporation
CONTACT: CEOcast, Inc.Dan Schustack, 212-732-4300dschustack@ceocast.com
Copyright Business Wire 2006
RBAK formed a doji candlestick Friday...
Is that a reversal signal, or a continuation doji?...
I've been following RBAK since June of 2005...
I'm hoping for a pullback that forms a Bull Flag like these...
RBAK forms them quite often:
Here's another look at a daily chart:
The weekly charts show two huge green candlesticks in a row, and that usually calls for one more...
With the Dow futures being up 22 points this morning, and the Nasdaq futures being up 10 points I wouldn't be going Short on RBAK just yet, but I do feel like it needs to take a pause soon to catch it's breath after running so hard lately...
Good Luck To ALL ;^))
I'm entering a Short Sale of AKAM...
On that downgrade today...It also had a downgrade by Henley & Co. last Thursday from:
Buy-to Speculative Buy...
It has set new 52 week highs for the last seven sessions in a row, and I too think it's run too far too fast and needs to catch it's breath after running so hard...
I'm taking a first position here in the pre-market, and will add more when it breaks below the support levels of 55.83 and 55.63
Here is this weeks Economic Calendar:
The big ones this week are the PPI on Tuesday, final GDP and Jobless Claims on Thursday, Durable Goods and Consumer Sentiment on Friday...
COMPOSITE TECHNOLOGY ANNOUNCES NEW ACCC CABLE SALE FOR CHINA’S ELECTRICAL GRID:
Order Highlights Growing Acceptance in Chinese Market...
IRVINE, CA,December 18, 2006 – Composite Technology Corporation (CTC) (OTC Bulletin Board: CPTC) is pleased to announce a new order for 282 kilometers of ACCC Conductor destined for the Chinese electrical grid. The order issued to our subsidiary, CTC Cable Corporation, by Far East Composite Technology Company, a subsidiary of Jiangsu New Far East Cable Corporation, is valued in excess of $4.1 million and calls for delivery in the first quarter of 2007.
This purchase order, consisting of two sizes of ACCC conductor with connecting hardware, represents the first transaction called for under the terms of a newly signed Memorandum of Understanding which contemplates the signing of a multi-year year contract, wherein the first year’s purchases require a minimum purchase of 600 kilometers of ACCC per quarter for distribution in China. The minimum quarterly purchases are to escalate after the first year. The composite core for this order will be manufactured in CTC Cable’s ISO9001:2000 certified facility in Irvine, California and aluminum stranding will take place at one of CTC’s certified suppliers.
“This order once again underscores the commitment of CTC and Far East to serve the rapidly growing electrical infrastructure needs in China to increase grid capacity. Chinese utilities have been quick to recognize the exceptional performance of our ACCC conductor and they represent our fastest growing customer base,” stated Benton Wilcoxon, Chairman and CEO of Composite Technology Corporation.
About CTC:
Composite Technology Corporation, based in Irvine, California, USA develops, manufactures and sells high performance electrical transmission and renewable energy generation products through its subsidiaries:
•CTC Cable Corporation produces composite rod for use in its proprietary ACCC aluminum conductor composite core. ACCC conductors virtually eliminate the sag in power lines caused by high current and high line temperatures. ACCC conductors also reduce electricity line losses, and have demonstrated significant savings in capital and operating expenses when substituted for other conductors. ACCC conductors enable grid operators to eliminate blackouts and brownouts, providing a ‘reserve electrical capacity’ by operating at higher temperatures. ACCC conductors are an innovative solution for reconductoring power lines, constructing new lines and crossing large spans. ACCC composite rod is delivered to qualified conductor manufacturers worldwide for local ACCC conductor production and resale into local markets.
•∑ DeWind, Inc., and DeWind Ltd (formerly EU Energy Ltd), produce, sell, and license the DeWind series of wind energy turbines including the 50Hz D6 rated at 1.25 megawatts (MW) and the 50Hz D8 rated at 2MW, both noted for their reliability. In 2007, the first new 2MW D8.2 turbines are planned to be delivered to North American customers from assembly operations at TECO Westinghouse in Texas and in Germany. The D8.2 utilizes the advanced WinDrive® hydrodynamic torque converter developed by Voith AG with a synchronous AC generator that is able to connect directly to the grid without the use of power conversion electronics. The DeWind D8.2 will be available in both a 60Hz and 50Hz version.
For further information visit our websites: www.compositetechcorp.com & www.eunrg.com. For Investor Relations Contact: James Carswell, +1- 949-428 8500
This press release may contain forward-looking statements, as defined in the Securities Reform Act of 1995 (the "Reform Act"). The safe harbor for forward-looking statements provided to companies by the Reform Act does not apply to Composite Technology Corporation (Company). However, actual events or results may differ from the Company's expectations on a negative or positive basis and are subject to a number of known and unknown risks and uncertainties including, but not limited to, competition with larger companies, development of and demand for a new technology, risks associated with a startup company, risks associated with international transactions, the ability of the company to convert quotations and framework agreements into firm orders, general economic conditions, the availability of funds for capital expenditure by customers, availability of timely financing, cash flow, securing sufficient quantities of essential raw materials, timely delivery by suppliers, successful integration of the EU Energy acquisition, ability to produce the turbines and acquire its components, ability to maintain quality control, collection-related and currency risks from international transactions, the successful outcome of joint venture negotiations, or the Company's ability to manage growth. Other risk factors attributable to the Company's business may affect the actual results achieved by the Company including those that are found in the Company's Annual Report filed with the SEC on Form 10-K for fiscal year ended September 30, 2005 and subsequent Quarterly Reports on Form 10-Q and subsequent Current Reports filed on Form 8-K and including those pertaining to EU Energy that will be included with or prior to the filing of the Company’s next Quarterly or Annual Report.
enews@compositetechcorp.com
http://www.compositetechcorp.com
DOWNGRADE: Akamai Technologies (AKAM)
Downgraded by Kaufman Bros.
From Buy to Hold.
Briefing.com
08:03 a.m. 12/18/2006
Bellwether Report Large-Cap Newsletter for December 15th 2006:
Thank You Mr. Market...
The major indices recorded one of the best performances in six-years today, as the November CPI report essentially took lingering fears of inflation off the table. The report showed unchanged readings for both the core and overall CPI. The market had otherwise expected there to be a gain of 0.2% for both the overall and core CPI. The result also indicted that core CPI fell to 2.6% from 2.7% compared to the same period a year ago.
This report provides more evidence that the Federal Reserve's efforts in slaying the inflation dragon have been thus far successful. As such, it has been the catalyst for the positive action in the market today. Now, the market is expecting a rate cut in early 2007 from the Fed, and this essentially sets the stage for the market to move even higher.
It is likely going to be large-cap stocks that will be the strongest performers. The structural changes that have been made in the earlier part of the decade in these companies have enhanced their productivity. This has especially been the case with adaptation and application of new technologies. With these systems now firmly in place, the unit cost of labor has been significantly reduced, resulting in greater efficiency. With this in mind, productivity gains are apt to continue to ramp up going forward.
This translates into a positive outlook for profit growth among U.S. companies for the foreseeable future. As such, price to earnings multiples will also likely expand in the coming year, helping to drive stock prices higher. It is interesting to see that many companies are buying back their common stock at a torrid pace. This conveys in no uncertain terms that these companies have faith in their future prospects. Given that, we are willing to bet that 2007 will be another banner year.
Have a Great Weekend.
Market Commentary By Conley Turner, Analyst of Wall Street Strategies.
U.S. stocks higher on day and week after tame CPI:
By Leslie Wines
Last Update: 4:06 PM ET Dec 15, 2006
http://tinyurl.com/ygwttp
NEW YORK (MarketWatch) -- U.S. stocks closed higher on the day and the week Friday, as the Dow Jones Industrial Average set another record high close, after hopes of a Goldilocks economy and a rate cut in 2007 were revived by an unchanged reading on consumer inflation.
The Dow Jones Industrial Average ($INDU) gained 28.76 to a record high close of 12,445.52, after earlier touching a new intraday high of 12,454
The S&P 500 ($SPX) rose 1.61 point to 1,427.10 and the Nasdaq Composite ($COMPX) increased 3.35 points to 2,457.20.
For the week, the Dow gained 1.1%, the S&P 500 rose 1.2% and the Nasdaq Composite took a 0.8% gain.
The Dow futures jumped up 30 points...
After the CPI numbers were released today ;^))
I was simply amazed at FRPT's action yesterday...
There wasn't ONE thing on it's daily chart that said it was going to reverse and rally like it did...
The overall Market was very strong, and the Dow closed at an all time record high yesterday...Maybe that had something to do with it...
CPI-Consumer prices flat in November:
By Rex Nutting
Last Update: 8:30 AM ET Dec 15, 2006
http://tinyurl.com/yfa6j5
WASHINGTON (MarketWatch) -- U.S. consumer prices were unchanged in November, as lower energy and car prices offset increases in costs for homeownership and medical care, the Labor Department reported Friday.
Core prices - which exclude volatile food and energy prices - were also unchanged in November, the lowest core inflation since June 2005.
Economists expected 0.2% gains for both headline and core inflation.
The CPI is up just 2% in the past year, following 0.5% declines September and October and November's flat reading.
The core CPI is up 2.6% in the past year. Core inflation has risen at a 1.6% annual rate in the past three months.
News for 'RBAK' - (Large Cap News: Current Research on Redback Networks Inc)
Dec 15, 2006 (M2 PRESSWIRE via COMTEX) -- Current Research on Redback Networks
Inc (NASDAQ:RBAK)
Redback is a member of the DSL pack. Redback Networks' equipment lets
telecommunications companies and Internet service providers deliver broadband
services to their subscribers. The company's Subscriber Management Systems
connects large numbers of network users so companies can deploy high-speed
broadband (primarily digital subscriber line) access to the Internet. Redback
also sells a system (SmartEdge) that enables carriers to provide optical and
Internet protocol data transmission within metropolitan networks. The company's
customers include AT&T andBellSouth.
Shares were up 11% after it won the second phase of a major contract with
China's biggest telecom carrier.
BellwetherReport.com is a leading online research firm for international
investors looking to get an edge over their portfolio. Investors seeking the
most up to date information on Redback Networks Inc are invited to sign up for a
free complimentary subscription to www.bellwetherreport.com. No credit card
needed!
Stock in Redback Networks Inc. shot up nearly 12 percent Thursday, a day after
it said it won the second phase of a major contract with China's biggest telecom
carrier.
San Jose-based Redback said Guangdong Telecom will use its routers to deliver
broadband internet, IPTV and virtual private network services for up to 4
million homes and businesses, Its stock closed $1.78 to $16.94 Thursday. Redback
had dropped by half between May when it was trading as high as $24.99 and July
21 when it sank to $12.40.
More information on Redback Networks Inc available in the members section of
www.BellwetherReport.com.
To review research on Redback Networks Inc as well as many more exciting
articles we encourage you to visit www.bellwetherreport.com. You can find these
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and other public resources.
All material herein was prepared by the Bellwetherreport.com, (Bellwether) based
upon information believed to be reliable. The information contained herein is
not guaranteed by Bellwether to be accurate, and should not be considered to be
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RBAK was ON FIRE Today! ;^))
Look at the size of that HUGE Green candlestick today that held 95% of it's gains on the day with HUGE Volume!!!...This is almost un-freakin'believable...lol
Holy Moly!...What an amazing white candlestick it formed today...I'd love to get ready to short it soon, but that would be like standing in front of a Runaway Train...The time will come, but it WASN'T today...
Yesterday's weekly chart said the potential upside was ONLY $19.17 on this move, and today's intraday high was $20.62!!!
Good Luck To ALL ;^))
AKAM-Akamai closed at ANOTHER 52 Week High today!...
That makes SIX days in a row it's done THAT!...
Just look at that Nice BIG green candlestick it formed today...Volume picked up like it's supposed to...CMF Money Flow, OBV, and Accumulation are gang busters...CCI is surprisingly weak...RSI is in the "power zone" above 70...The ADX is breaking up through 20 as the DMI's diverge to the bullish side...Stochastics show Overbought, but I'm throwing that one out at this time, as usual...The MACD is gang busters UP!...Volume is GREAT!...VERY Bullish IMHO...
Another perspective on a daily chart shows the 3 Money Technical Indicators: CMF Money Flow, OBV, and Accumulation are screaming up!...The RSI is breaking above 70 into the "power zone"...CCI???...The upper BBand is saying the potential upside to this move is $57.34...The ADX is confirmed on this chart like the previous one...Stochastics and W%R say it could still go up to 100...The MACD is gang busters!...Aroon green hasn't downticked yet, as the red one is...
The weekly chart shows the potential upside to this move at the upper BBand at $60.37!!!...I posted news today from one analyst that put AKAM's new price target at $60.00 so, we'll see...lol
Good Luck To ALL ;^))
FRPT going crazy. Nice rebound from the few days of tanking.
Dow industrials climb 100 points to intraday record at 12,418 points...
News for 'AKAM' - (AKAMAI TECHNOLOGIES INC Consensus Recommendation: BUY)
Dec 14, 2006 (Nelson's Broker Summaries via COMTEX) --
Company: AKAMAI TECHNOLOGIES INC
Consensus Recommendation: BUY
(Strong Buy: 3, Buy: 8, Hold: 7, Underperform: 0, Sell: 0)
Quarter Consensus Estimate [Q4]: 0.26
FY Consensus Estimate [FY2006]: 0.87
Next FY Consensus Estimate [FY2007]: 1.20
Industry: TECHNOL/SOFTWARE
Estimates reported in USD
http://www.thomsonfinancial.com
Copyright 2006, Nelson Information, a Thomson Financial company.
News for 'AKAM' - (WRH Changes EPS Estimate of AKAMAI TECHNOLOGIES INC)
Dec 14, 2006 (Nelson's Broker Summaries via COMTEX) --
Company: AKAMAI TECHNOLOGIES INC
Report Headline: "AKAM: STILL GRAVY ON THIS TRAIN; RAISING PRICE TARGET TO $60"
Report Date: December 12, 2006
Current FY EPS Estimate [FY2006]: 0.87
Previous EPS Estimate for Current FY [FY2006]: 0.87
Current Quarter EPS Estimate [Q4]: 0.26
Previous EPS Estimate for Current Quarter [Q4]: 0.27
Next FY EPS Estimate [FY2007]: 1.20
Previous EPS Estimate for Next FY [FY2007]: 1.18
Current Recommendation: BUY
Research Firm: WRH
Analyst: ROBERT STIMSON
Industry: TECHNOL/SOFTWARE
Estimates reported in USD
http://www.thomsonfinancial.com
Copyright 2006, Nelson Information, a Thomson Financial company.
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