The Oil and Gas Pipeline

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In play JDO / Oil 1:29 pm

6:26PM NCI Building Sys lowers Q2 EPS below consensus (NCS) 52.52 +0.02 : Co announced that, based on preliminary results, it is reducing its guidance for EPS for Q2 ended April 29, 2007, to a range of $0.30-0.33 (Reuters consensus is $0.50 from the previous range of $0.50 to $0.55. The Co's guidance excludes the share dilution related to NCI's 2.125% Convertible Senior Subordinated Notes. The change in guidance is due to lower than anticipated sales and earnings from the Co's Components business, reflecting weak industry demand on a comparable-quarter basis and significant price competition related to excess inventory levels for much of the quarter. In addition, the Co's results were affected by harsh winter weather in the quarter. The Co's second-quarter results from its Buildings and Coatings businesses were generally in line with its expectations. The Co's backlog at the end of the second quarter increased to a record $449 mln, up from $383 mln at the end of the second quarter of fiscal 2006 and $365 million at the end of the first quarter of fiscal 2007.

6:14PM Eastman Kodak cross licenses OLED technology with Chi Mei Optoelectronics and Chi Mei EL Corporation of Taiwan (EK) 25.41 +0.35 : Co announced a cross licensing agreement with Chi Mei Optoelectronics (CMO) and Chi Mei EL (CMEL) of Taiwan. CMEL plans to incorporate Kodak's active matrix OLED display technology in small panel, mobile displays. "This agreement between Kodak, CMO and CMEL validates that the active matrix OLED industry continues to gain substantial momentum, and is the future for brilliant displays."

6:10PM Endwave enters into settlement agreement with receiver for Wood River Capital Management (ENWV) 10.97 -0.09 : Co announced that it has entered into a settlement agreement and related registration rights agreement with the court-appointed receiver for Wood River Capital Management and its affiliates. Under the agreements, Endwave is required to file a shelf registration statement covering the resale of the Endwave shares held by the Wood River entities and the receiver may request, at any time before the first anniversary of the date the shelf registration is declared effective, that Endwave assist in a public offering of such shares. Upon completion or termination of any such offering, the receiver will be required to pay Endwave $425,000 for out-of-pocket expenses incurred by Endwave arising out of the Wood River entities' accumulation of Endwave common stock and will also be required to pay Endwave's expenses in connection with the offering, subject to limitations set forth in the registration rights agreement. The settlement agreement includes mutual releases by both Endwave and the receiver that will become effective upon the payment of such amounts.

6:07PM Long-term treatment with VYVANSE (lisdexamfetamine dimesylate), the first prodrug stimulant, demonstrates significant efficacy in children with ADHD (SHPGY) 71.01 +1.02 : Co announced that VYVANSE (lisdexamfetamine dimesylate) effectively controlled Attention-Deficit/Hyperactivity Disorder (ADHD) symptoms in children aged 6 to 12 years. In addition, 95% of children taking VYVANSE daily for 12 months showed overall improvement, according to phase III open-label extension trial results. Further analysis of phase II clinical data demonstrated that VYVANSE provided consistent time to maximum concentration of d-amphetamine from patient to patient. Both studies were presented today at the annual meeting of the American Psychiatric Association. The U.S. Food and Drug Administration approved VYVANSE for the treatment of ADHD on Feb. 23, 2007. VYVANSE remains on track for commercial launch in June 2007.

6:06PM Bristol-Myers announced aripiprazole demonstrated significant improvement compared to placebo on the primary efficacy endpoint (BMY) 30.00 -0.22 : In a six-week study in adolescents (13- 17 years old) with schizophrenia, the Otsuka Pharmaceutical Co and Bristol-Myers Squibb (BMY) atypical antipsychotic aripiprazole demonstrated significant improvement compared to placebo on the primary efficacy endpoint, Positive and Negative Syndrome Scale (PANSS) Total Score. In the findings first presented here at the 160th annual meeting of the American Psychiatric Association, ~85% of patients completed this six-week study.(1,2) "Data on the management of schizophrenia in adolescents are limited," said Robert Findling, M.D., Director of Child and Adolescent Psychiatry, University Hospitals Case Medical Center, Cleveland, Ohio. "The findings from this study contribute important new information about schizophrenia in adolescents."

5:44PM Insignia / General Motors sign licensing agreement (GM) 31.43 -0.07 : Co announces a new licensing agreement with General Motors. The ten-year agreement covers Insignia's usage of GM's accessory product data and GM trademarks in Insignia's OE accessory e-catalogs, which are currently subscribed to by most GM Authorized Accessories Distributors/Installers and 800+ GM Dealers nationwide.

5:42PM Pizza Inn announces stock repurchase plan; may repurchase up to 10% of the currently outstanding common stock, which is equivalent to 1,016,000 shares (PZZI) 2.44 :

5:40PM Broadridge Financial announces pricing of senior debt offering of $250 mln in notes (BR) 20.35 -0.04 : Co announced that it has priced an underwritten public offering of $250 mln aggregate principal amount of its Senior Notes due 2017. The notes will bear interest at an annual rate of 6.125%. BR intends to use the net proceeds from the issuance of the Senior Notes, together with cash on hand, to repay borrowings under its interim revolving credit facility.

5:26PM Hewlett-Packard settles SEC investigation into disclosure of former Director's resignation (HPQ) 45.63 +0.05 : Co announced that it has settled the U.S. Securities and Exchange Commission's investigation regarding the co's disclosure of Tom Perkins' resignation from its board of directors in May 2006. HPQ agreed, without admitting or denying the SEC's findings, to the entry of a cease-and-desist order by the SEC. In the order, the SEC concludes that HP should not have limited its disclosure to the fact that Perkins had resigned, as it did, but also should have reported that he resigned because of a disagreement with the company's operations, policies or practices and provided a brief description of the circumstances around the disagreement. The SEC imposed no monetary or other penalty in connection with the settlement. Co says, "HP acted in what it believed to be a proper manner. However, we understand and accept the SEC's views and are pleased to put this investigation behind us."

5:14PM K&F Industries announces conclusion of CFIUS review (KFI) 26.42 -0.03 : Co announced that the Committee on Foreign Investment in the United States ("CFIUS") has concluded its review under provisions of the Exon-Florio amendment relating to the previously announced acquisition of K&F by Meggitt -USA, the wholly- owned United States subsidiary of Meggitt PLC. Closing of the transaction remains subject to and is scheduled to occur following expiration of the Hart-Scott Rodino Regulatory waiting period, the receipt of certain other governmental approvals and the satisfaction of other customary closing conditions. As previously announced on March 6, 2007, KFI entered into a definitive merger agreement with Meggitt, which was unanimously approved by each co's Board of Directors and has since been approved by both companies' stockholders. Under the terms of the agreement Meggitt would acquire K&F for $27.00 per share in cash, valuing the total transaction at ~$1.8 bln.

5:08PM Novell and the Electronic Frontier Foundation team up to reform software patents (NOVL) 7.71 +0.01 : Novell and the Electronic Frontier Foundation (EFF) announced they are teaming up to work on reforms to software patents worldwide. "It is increasingly obvious that software patents are not a meaningful measure of innovation," said Jeff Jaffe, executive vice president and chief technology officer at NOVL. "As a long-time innovator in the industry and a holder of many significant patents, we understand the rationale behind the patent system in general. But we believe that software patent system reform is necessary to promote software innovation going forward."

5:04PM Market Wrap (WRAPX) : The S&P 500 was once again poised to closed at a new all-time high, and once again, the market came up short following an afternoon pullback.


5:03PM DCP Midstream agrees to acquire equity interests from general partner in $270 mln transaction (DPM) 44.60 -0.16 : Co announced that it has signed an agreement to acquire partial interests in DCP East Texas Holdings, LLC and Discovery Producer Services LLC from DCP Midstream, LLC, the owner of the Partnership's general partner. The $270 mln transaction, which is $20 mln higher than was previously announced, is subject to customary purchase price adjustments and is expected to close July 2, 2007.

5:02PM Douglas Emmett acquires office property in Century City (DEI) 25.91 +0.34 : Co announced that it has acquired a Class A office building located at 1801 Century Park West in Century City, California for a contract price of $32 mln, or $642 per square foot, in an off-market transaction. In conjunction with the acquisition, the Co obtained the ground leasehold in the property and the option to acquire fee title to the land for a fixed price of $800,000.

5:02PM Arbitron And Cox Radio extend group agreement (ARB) 50.11 -0.10 : Co announced that Cox Radio (CXR) has signed a five-year renewal contract for ratings and related services for Cox radio stations in 18 markets.

4:42PM California Pizza announces Three-for-Two stock split (CPKI) 36.15 -0.23 :

4:34PM Limited reports in-line; guides in-line; lowers same store sales guidance for may; announces $500 buyback (LTD) 26.46 +0.48 : Reports Q1 (Apr) earnings of $0.13 per share, in line with the Reuters Estimates consensus of $0.13; revenues rose 11.3% year/year to $2.31 bln vs the $2.31 bln consensus. Co issues in-line guidance for Q2, sees EPS of $0.20-0.24 vs. $0.22 consensus. Co issues in-line guidance for FY08, sees EPS of $1.55-1.65 ($1.75-1.90 initial guidance) vs. $1.59 consensus. The Company stated that it now expects May comps in the negative low single digit range versus its previous guidance for positive low single digit comps. Co also announced a $500 mln share repurchase program.

4:31PM BJ's Wholesale increases buyback by $100 Million (BJ) 37.15 +1.02 :

4:31PM LTD announces a $500 mln share repurchase program :

4:30PM Denbury Resources evaluates strategic alternatives for Louisiana Assets (DNR) 36.02 -0.25 : Co announces that it is evaluating strategic alternatives for its Louisiana assets, other than Louisiana oil properties with potential for tertiary recovery operations. Alternatives may include a sale or a swap of these assets for oil fields with tertiary recovery potential. This review is being conducted as part of Denbury's ongoing focus on its core tertiary recovery operations. Any sale or swap of these assets would eliminate, or substantially reduce, the co's higher-risk profile drilling activities in this region, although the co will continue to be active in Louisiana with its tertiary recovery operations, including the potential acquisition of additional future tertiary recovery projects.

4:30PM Alcoa reaffirms offer for Alcan as the most compelling choice for Alcan's shareholders (AA) 40.37 +1.42 : Co reaffirmed its pending offer to acquire all outstanding common shares of Alcan (AL) for $58.60 in cash and 0.4108 of a share of Alcoa common stock as the most compelling choice for Alcan's shareholders. "We are pleased that Alcan recognizes both the strategic rationale of this combination, and the unique opportunity to achieve $1 bln in annual synergies. Alcoa is the most logical partner for Alcan, and our proposed combination is driven by an unquestionable strategic and industrial logic. We have studied Alcan's response and have not seen anything that would lead us to reevaluate our offer. We continue to believe that our offer is full and fair, providing substantial value to Alcan's shareholders. We have already met with a significant number of Alcan's shareholders and are pleased to have received strong support for the combination." The co says based on Alcoa's closing price on May 22, 2007, the Alcoa offer has a value of $74.60 per Alcan common share.

4:28PM TRM reports receipt of noncompliance notice from Nasdaq (TRMM) 1.81 -0.62 :

4:25PM SI International announces agreement to acquire LOGTEC (SINT) 30.04 +0.08 : Co announces it has entered into a definitive agreement to acquire the outstanding capital stock of LOGTEC. Co says the acquisition would strengthen SI International's service offerings in the area of logistics. The terms of the definitive agreement provide that the co will acquire LOGTEC for $59 mln in cash. For the twelve months ended December 31, 2006, LOGTEC had unaudited revenues of approx $54 mln. The co expects the proposed acquisition will be accretive to earnings immediately.

4:20PM CA Inc reports Q4 results in-line; guides FY08 below consensus (CA) 27.84 -0.29 : Reports Q4 (Mar) earnings of $0.20 per share, excluding non-recurring items, in line with the Reuters Estimates consensus of $0.20; revenues rose 6.7% year/year to $1 bln vs the $1.01 bln consensus. Co issues downside guidance for FY08, sees EPS of $0.94-0.98 vs. $1.04 consensus; sees FY08 revs of $4.05-4.1 bln vs. $4.12 bln consensus.

4:20PM Quantum DLT misses by $0.02, ex items (QTM) 2.73 -0.07 : Reports Q4 (Mar) earnings of $0.01 per share, excluding non-recurring items, $0.02 worse than the Reuters Estimates consensus of $0.03; revenues rose 34.7% year/year to $277 mln vs the $287.8 mln consensus.

4:13PM PSS World Med beats by a penny (PSSI) 19.53 +0.18 : Reports Q4 (Mar) earnings of $0.23 per share, $0.01 better than the Reuters Estimates consensus of $0.22; revenues rose 4.8% year/year to $443 mln vs the $453.2 mln consensus.

4:10PM Gymboree beats by $0.04; guides Q2 & FY08 EPS guidance above consensus (GYMB) 38.71 +0.38 : Reports Q1 (Apr) earnings of $0.67 per share, $0.04 better than the Reuters Estimates consensus of $0.63; revenues rose 12.9% year/year to $206.7 mln vs the $208.9 mln consensus. Co issues upside guidance for Q2, sees EPS of $0.10-0.12 vs. $0.09 consensus. Co issues upside guidance for FY08, sees EPS of $2.42-2.46 vs. $2.40 consensus.

4:06PM KBR Inc. selected to manage Panama City airport project (KBR) 27.08 : Co announces that its Mgmt and Engineering unit has been selected to provide program and construction mgmt services for the new Panama City-Bay County International Airport in Panama City, Florida. The scope of work will include the relocation and construction of a new $330 mln airport.

4:05PM ConAgra expects Fiscal 2007 EPS to be hgher than expected (CAG) 25.67 +0.32 : Co announces it now expects fiscal 2007 earnings per share to be above the high end of the $1.28-$1.33 range it had previously announced. This upward revision is due primarily to significantly stronger-than-expected results from the company's Trading and Merchandising segment in the fiscal fourth quarter. Earnings-per-share projections exclude items impacting comparability but reflect the adverse impact on profits from the peanut butter recall, including one-time costs.

4:05PM Hot Topic misses by a penny; guides in-line for Q2 (HOTT) 11.61 unch : Reports Q1 (Apr) loss of $0.03 per share, $0.01 worse than the Reuters Estimates consensus of ($0.02); revenues rose 2.1% year/year to $157.3 mln vs the $157.5 mln consensus. Co issues in-line guidance for Q2, sees EPS of ($0.01)-($0.00), ex items vs. $0.00 consensus.

4:03PM Peace Arch Entertain announces completion of licensing agreements in key international markets for four feature films (PAE) 2.63 +0.03 : Co announced that they have closed theatrical deals on several films in key international territories at the Cannes Film Festival. The licensing agreements further validate the Co's high-growth business as it continues to expand its portfolio of film, television and DVD productions to be distributed in lucrative international and domestic markets.

4:03PM Express Scripts announces 2-for-1 stock split (ESRX) 98.56 +0.44 :

4:02PM Zumiez reports Q1 results in-line; guides FY08 EPS in-line (ZUMZ) 41.80 +0.37 : Reports Q1 (Apr) earnings of $0.06 per share, in line with the Reuters Estimates consensus of $0.06; revenues rose 43.9% year/year to $68.8 mln vs the $68.5 mln consensus. Co issues in-line guidance for FY08, sees EPS of $0.94-0.96 vs. $0.96 consensus.

4:02PM Planar Systems acquires Runco International (PLNR) 7.78 : Co announces it has acquired the assets of privately-held Runco International for $36.7 mln in cash. Financing to fund the purchase price consisted of $14.7 mln in existing cash and $22.0 mln of borrowing from the co's amended credit facility.

4:01PM Shire Pharm announces G.X.R significantly improved all core symptoms of Attention-Deficit/Hyperactivity Disorder in children aged 6 to 17 years (SHPGY) 71.01 +0.01 : Co announces the positive results of studies of the investigational medication guanfacine extended release, a selective alpha-2A-adrenoceptor agonist. These data from two short-term phase III placebo-controlled studies and two long-term phase III open-label studies, presented at the 2007 American Psychiatric Association (APA) annual meeting, demonstrated that GXR significantly improved all core symptoms of Attention-Deficit/Hyperactivity Disorder in children aged 6 to 17 years.

3:58PM Market View: Indices rotate lower after setting new all time or mulit-year intraday highs (TECHX) : New multi-year intraday highs for Nasdaq indices and the S&P 500 in early trade with the Dow, Russell 2000 and S&P 400 reaching new all time intraday highs. The afternoon was marked by a failure at the morning peak and a downside acceleration following the breach of midday range floors. Greenspan comments have been cited but the market had lost some of its upward momentum over the previous few days (Dow down Mon/Tues for first two day loss since late March) and with the holiday upcoming, traders may have been more predisposed to book profits before they make an early exit (Friday is typically very light volume). We have some top heavy action developing (Dow outside day/weaker close, inverted hammer S&P 500, wide range bar down Nasdaq) but we have been here before without any significant pullbacks. Failure to sustain a push back through the 1527/1528 area S&P (hasn't been able to break all time close high from March 2000 at 1527.46), 2589/2591 Nasdaq Comp and 13560/13570 Dow and a close under Wednesday lows would argue for additional corrective trade.

3:36PM Bond Watch: Slumping to New Lows (BONDX) : Treasuries were scraping bottom today, knocking up yields on the 10-yrs to the highest levels seen since the end of Jan, while the 30-yrs got beat down to test psychological support, running yields to mid-06 highs, taking out 5%, which its had difficulty holding through in the recent past. The market potentially could see some quality action Thurs with data finally hitting, although the timing, ahead of a shortened session Fri & a holiday Mon (not to mention summer...), is unfortunate & ongoing low participation rates could throw a wrench in the proceedings. The jobless number will be subject to its new, higher level status, scrutiny, durables may be sullied by aircraft, while the housing report should carry a big stick. There is some talk that the mortgage world's new rules is messing with the applications, overstating the housing situation, so chatter along those lines will make the rounds pre-release. There is talk, once again, of energy costs hitting hard, hard enough to matter, which just fuels inflation concern, fanning flames that burn bonds. The curve worked its way out of inverted territory in a fairly convincing manner twisting the 2-10-yr yield spread back to +2, not far from the least inversion on the month. Selling on the dollar took a brief respite late in the session as euro & pound profit taking & ex-Fed-head-speak propped the buck up. Spot gold is up at 661.40 (+2.15) while crude oil nudged up to 65.83 (+0.32). Tomorrow brings durable orders, initial jobless claims & new home sales. Dallas Fed's Fisher opens a local conference at 10. The euro 1.3460 & the yen 121.6775 while the 10-yr yield 4.859%. For more bond & economic commentary click here.

3:30PM Conferences and Shareholder/Analyst Meetings of Interest : Events of interest tomorrow, May 24 include: AFL 2007 Financial Analyst Briefing; BRKS Semi-Cap Analyst Event; RX Analyst Meeting; BSX Analyst Meeting at EuroPCR; DNR Summary Analyst Meeting in New York; TEX Analyst Meeting; DTV Latin America Investor Day; ELX Analyst Day; FOE Analyst Meeting; GIVN Analyst/Investor Day; GOOG, DIS, CNET, IACI, UNTD at Goldman Sachs Eighth Annual Internet Conf; LCAV at Sixth Annual JMP Securities Research Conf; LSTR Mid 2nd Quarter Conference Call; LTXX at Boston Area Semi-Cap Analyst Event; SIMO at Pacific Crest Securities China Emerging Technologies Forum; WHQ, EOG, NBL, HERO at UBS Oil & Gas Conf; WLP, THRX, ZGEN, HTI, VAR at Citigroup Healthcare Conference; CBLI at SunTrust Robinson Humphrey Financial Services Conf; Fed: Fisher opens local conf; Mishkin.

3:25PM Earnings Calendar : Today after the close look for the following companies to report: ANF, ANST, CA, CTS, FL, GYMB, HOTT, LTD, NTAP, PLMD, PSSI, QTM, SNPS, OVEN, ZL, and ZUMZ. Tomorrow before the open look for the following companies to report: AMSC, ANN, BKS, BBA, BWS, CAMT, CMRG, CTR, CHRS, DEBS, FLO, HRL, JBL, KEYS, LTON, MM, MYL, NWY, PDCO, SAFM, SCVL, SSI, SMRT, TOL, and TTC.

3:10PM Shire Pharm: DAYTRANA provides significant effectiveness in ADHD symptom relief in both boys and girls (SHPGY) 71.26 +1.27 : Co announces that DAYTRAN had significant efficacy in reducing the symptoms of ADHD in both male and female children aged 6 to 12 years, according to clinical trial results reported at the American Psychiatric Association annual meeting in San Diego. Our study documented that DAYTRANA offered a favorable safety profile and was an effective ADHD treatment in both boys and girls," said Robert Findling, M.D., lead investigator and Professor of Psychiatry at Case Western Reserve University and Director of the Division of Adolescent and Child Psychiatry at University Hospitals Case Medical Center. "The study provides a platform to open a dialogue about gender and ADHD."

3:04PM Allegheny Energy announces the Public Service Commission of West Virginia issued an order regarding the co's July 2006 rate request (AYE) 53.64 -0.92 : Co announces that the Public Service Commission of West Virginia issued an order regarding the company's July 2006 rate request. The Commission's order, which is effective May 23, 2007: 1) reduces revs by $6 mln on an annualized basis, consisting of a $126.0 mln increase in rates related to fuel and purchased power costs, and a $132.2 mln decrease in base rates which includes changes in authorized depreciation rates which will reduce depreciation expense by about $16 mln, compared to 2006. 2) reinstates the fuel cost recovery clause, adjustable annually, to reflect both increases and decreases in the cost of fuel and purchased power. Future rate adjustments under the fuel clause mechanism will occur annually, beginning January 1, 2009. As a result of this order, the contribution to pre-tax income associated with the West Virginia rate case iss revised from $60 mln to $5 mln.

3:03PM Market View: Dow drops 100 points off early high, holds above 13500 level -- session low 13507 (TECHX) 13544 +4 : Index is 40 points off the low, needs to hold above 13530 and sustain a break of 13560/13570 area to improve this afternoon's pattern.

3:00PM Eli Lilly announces study suggests strattera improved ADHD symptoms in patients with comorbid alcohol abuse (LLY) 59.49 -0.04 :

2:54PM Interdigital Comm sees 2Q07 revs to be in the range of approx $52.5 - $54 mln vs $50.75 mln consensus (IDCC) 32.18 -0.26 : Co announces it expects total second quarter 2007 revenue to be in the range of approx $52.5-$54 mln vs $50.75 mln consensus. This range does not include any potential positive impact from new agreements that may be signed during second quarter 2007 or additional royalties identified in audits regularly conducted by the company. Expected revenues for second quarter 2007 include the following approximate amounts: -- Recurring patent licensing revenue from existing licensees in the range of $52 - $53 mln; and, -- Revenue related to technology solution agreements in the range of $0.5 - $1 mln. "Our second quarter 2007 revenue performance reflects solid mobile device market fundamentals and strong performance from our broad base of licensees."

2:41PM Nymex Energy Closing Prices (COMDX) : July crude ended the day at $65.73pbl, higher by 22 cents, while June nat gas ended the session lower by 3.8 cents to $7.763mbtu. June heating oil closed higher by 2.35 cents to $1.9307/gal while June RBOB closed off .17 of a cent to $2.3046/gal.

2:39PM Market View: Nasdaq Comp holds at first level support (TECHX) 2583.21 -4.81 : The index failed to break above the 2600 level during a morning and afternoon push with the pullback accelerating on the penetration of the midday range floor but has held at first level support noted in The Technical Take at 2581/2576-- session low 2579. A sustained push back through the 2589/2591 area helps to neutralize the weaker pattern off of the high. Next support is in the 2565/2562 area.

2:28PM Semi HOLDRs -SMH- slips back under morning/last wk low at 36.77/36.81-- session low 36.71 (TECHX) 36.72 -0.57 : Sector ETF is being pressured by ADI -10.1%, LLTC -3.1%, ATML -2.8%, MXIM -2.8%, NSM -1.8%, XLNX -1.6%. INTC -0.8% is not down as significantly but it stalled after setting a minor new 52-wk high near Jan 2006 gap bottom at 23.06 (session high 23.14). Close near the low would result in a wide range bar down after a failure to hold at new highs. Important short term resistance is at 22.90/23.00. Next support for the SMH is at 36.61/36.55.

2:21PM Market View: Dow continues to weaken approaching low for the week at 13528, down 75 points off morning high (TECHX) :

2:17PM PAB Bankshares announces renewal of stock repurchase program; authorizes repurchase of up to 300,000 shares (PABK) 18.65 -0.32 :

2:09PM Linear Tech: Infringement of Linear Technology's patents by AATI up for review by International Trade Commission (LLTC) 36.15 -0.98 : Co states that the Administrative Law Judge assigned to the International Trade Commission's investigation of Advanced Analogic Technologies issued his initial determination. Certain initial determinations were favorable to LLTC, certain determinations were not. LLTC will request that the ITC review those portions of the ALJ's recommendations that were unfavorable. The ITC has full discretion whether to accept, reject or modify any of the ALJ's recommendations. The ITC is expected to announce which aspects of the recommendations it will review within 45 days. The final determination of the ITC is scheduled to be issued by September 22, 2007.

2:05PM Market View: Nasdaq 100 slips into the red after failing to breach early peak this afternoon, Dow drop 50 points off morning high (TECHX) :

1:45PM US House approves bill outlawing gasoline price gouging :

1:43PM Global Industries awarded first project in Brazil (GLBL) 24.22 +0.45 : Co announces that its wholly owned subsidiary Global Industries Offshore, has received a letter of intent from Petrobras, Brazil's national oil company, to install the 24-inch Camarupim gas line in the Espirito Santo Basin offshore Brazil. The Camarupim Project, valued at approximately $165 mln, includes project planning, detailed engineering, and installation of 52 km of pipeline, fabrication and installation of the pipeline end manifold (PLEM) and tie-in spool. The offshore installation will be performed by the Global pipelay barge Iroquois.

1:41PM Fifth Third - - Relative Strength (FITB) 43.14 +1.70 : Stock displays Rel Strength today as it trends aggressively higher mid-day after breaking out of a 1-1/2 year base above $42 today. Next level of interest lies around the $44-area.

1:36PM Comex Metals Closing Prices (COMDX) : June gold ended the session higher by $2.90 to $662.80/oz, while July silver closed higher by 12.5 cents to $13.115/oz and June copper ended the day lower by .4 of a cent to $3.2985/lb.

1:29PM JED Oil announces offer for Caribou Resources (JDO) 1.71 +0.08 : Co announces that it has made an offer to Caribou Resources to acquire all of its shares and settle with its creditors. JDO's offer consists of payment in full in cash to the major secured creditor of approx $26.7 mln, plus to any creditors with security in priority to the major secured creditor; cash of approx $345,500 plus 5 mln common shares to the unsecured creditors totaling approx $17.7 mln, and up to 4 mln common shares for the acquisition of all of the 39 to 40 mln shares of Caribou on the basis of one common share of JED for every 10 shares of Caribou held. JDO has delivered approx $185,000 as a deposit with its offer.

1:10PM Market View: Indices edging up toward session highs (TECHX) : Participants back from lunch? The market averages have been contained within tight ranges not far from the highs for the last couple of hours (long lunch?). Have seen some upticks in recent action leaving them within a short distance of the highs. Next resistances are at 2604 and 2615/2617 Nasdaq Comp, 1534 and 1537 for the S&P 500 and at 13620 and 13661/13668 Dow.

1:00PM Spectrum Brands announces Kent Hussey appointed CEO (SPC) 8.43 +0.15 : Co announces that Kent Hussey has been appointed Chief Executive Officer of the co. David Jones will step down as CEO but will continue to serve as non-executive Chairman of the Board of Directors until the end of fiscal year 2007 to assist in the management transition.

12:22PM Borders Group - - Relative Strength (BGP) 23.85 +1.64 : Price displays Rel Strength as it trends higher towards its Fall-2006 highs near 24.00/24.19. Note BKS +1.00 also showing Relative Strength ahead of Thursday's earnings.

12:13PM 30 Yr Yield reaches 5.00% for first time since late Jan peak near 5.02% (TECHX) : 10 Yr Yield sets new 4 month high of 4.86%, its Jan peak is at 4.90%.

12:06PM Pacific Sunwear names Sally Frame Kasaks Chairman and Chief Executive Officer (PSUN) 19.49 -0.11 : Co announces the selection and appointment of Sally Frame Kasaks as Chairman and Chief Executive Officer of the Company. Kasaks had been serving as Interim Chief Executive Officer since October 2006, and has been a director of the Company since 1997

12:04PM TechTeam to Acquire NewVectors (TEAM) 13.01 -0.09 : Co announces that it has signed a definitive agreement to acquire NewVectors, a subsidiary of Altarum Institute and a provider of advanced research, analysis and consulting services. It is anticipated that the acquisition will be completed by May 31, 2007. Headquartered in Ann Arbor, Michigan, and with annual revenue of approx $34 mln, Following the acquisition, NewVectors will operate as a division of TechTeam Government Solutions, which will have combined revenue of approx $83 mln. The terms of the transaction include a purchase price of $40.75 mln. The co expects to use $5.75 mln of its available cash and borrow $35 mln to fund the acquisition. The co anticipates that the acquisition will be accretive to its earnings by approx $0.04 -- $0.07 for the fiscal year ending Dec 31, 2007.

12:04PM SEI Investments announces Two-for-One Split on Common Stock (SEIC) 58.76 +0.77 :

11:58AM Bond Watch: Ticking Off in Light Trade (BONDX) : Trade continues to labor under the negatives that have messed with the market all week, low flows, no news, exuberance in stocks & potentially flagging outside interest in buying treasuries. The muted action & tight ranges, however, have not kept prices from falling through attrition as many sat sidelined. Players keep looking for buyers to step in at yields not seen since early in the year with 2-&-10-yrs leading the losers. The market has been dogged by global bonds as well, with the bund getting an up-tick early, but giving it up pretty quick on regional retail sales & expectations for upcoming reports to show growth. The curve has been dug in with the 2-10-yr yield spread playing small on either side of 0, the inversion marker, as positions get squared ahead potentially cataclysmic numbers (wishful thinking?) on tap with the real big-dogs hitting next week with a long holiday weekend sandwiched in the middle. The market has been tightly wound & action repressed for several sessions, making a break-out, likely downside move more exaggerated. The dollar has been offered much of the day with new session highs logged by the euro & pound while the yen tries to battle back from fresh 3-month lows. Spot gold is up at 662.58 (+3.33) while the new Jul front month crude trades up at 65.90 (+0.11) despite a sizable build in inventories. The euro is at 1.3484 & the yen is at 121.5200 while the 10-yr yield is at 4.847%. For more bond & economic commentary click here.

11:58AM Marsh McLennan - - Relative Strength (MMC) 32.80 +1.34 : Displaying Rel Strength as it trends higher all morning to challenge its late-April high of 32.75

11:56AM PPL Corp Chairman says PPL is strong, growing; reaffirms FY10 EPS of $3.50/share (PPL) 44.99 -0.01 : Co's Chairman says "... PPL is strong, growing and well-positioned to take advantage of new opportunities in the continually evolving electricity business." The co continues to forecast 2010 earnings of $3.50 per share.

11:53AM Moody's - - Relative Strength (MCO) 70.74 +2.70 : Stock displays Rel Strength as it has been trend up all morning upon breaking above its 2-week range top near $69. Next level of interest is the April reaction peaks at 70.49/71.38.

11:40AM BCE Inc announces another consortium enters privatization talks with BCE (BCE) 36.38 +0.68 : The Strategic Oversight Committee of the Board of Directors of BCE Inc. (BCE) announces that another group is entering into discussions to explore the possibility of taking the co private and that members of the group have signed non-disclosure and standstill agreements with BCE on a non-exclusive basis. The consortium includes Cerberus Capital Management, and a group of Canadian investors. The co had previously announced its intention to review all strategic alternatives with a view to further enhance shareholder value. The review is currently expected to be completed in the third quarter of 2007. No assurances can be provided that any offer, if made, by any bidding group, now formed or to be formed in the future, will be accepted by the Board of Directors or that this review of alternatives will result in any specific action being taken by the co.

11:32AM Fed Tracker (BONDX) : Little market attention will be paid to Kroszner as the gov discusses lending rules at 13:00 in DC. He is not expected to venture into policy nor economic forcasting.


11:21AM Bisys Group confirms SEC approves settlement with Bisys (BSG) 11.77 +0.03 : Co announces it has completed its previously disclosed settlement with the S.E.C with respect to the S.E.C's investigation into its 2004 and 2005 restatements. Under the settlement, the co has agreed, without admitting or denying any wrongdoing, to refrain from future violations of the reporting, books and records and internal control provisions of the federal securities laws and related S.E.C rules. As previously disclosed, the co will pay $25.1 mln in disgorgement and prejudgment interest, which amount was placed in escrow in Jan 2007 as part of the settlement. This settlement concludes the S.E.C's investigation of this matter with respect to the co.

11:11AM Home Construction -XHB- edging off resistance (TECHX) 36.27 +0.27 : Noted resistance for the XHB at 36.63 yesterday and this morning (10:13 update) with it pulling back after reaching as high as 36.61.

11:07AM Bond Watch: Flopping Lower (BONDX) : The bonds failed to capitalize on a modest bounce off price support. In an otherwise catalyst-free day the market has managed to find some tight active range trading as the battle for near-term direction heats up. The 10-yr yield is at 4.833% from about 4.843%. The buck is slipping against the majors with the pound grabbing most of the spotlight as it's surged from lows of 1.9714 to 1.9893 on the back of hawkish MPC minutes. The euro is at 1.3490 & the yen is at 121.4235. For more bond & economic commentary click here.

11:01AM Gold Trust -GLD- vacillating near yesterday's rebound high of 65.82-- session high 65.81 (TECHX) 65.83 +0.61 : The GLD set a new two month low last wk and bounced to the 65.80 area before pulling back late yesterday. Early gains today has brought the rebound high back into play-- NEM +2.4%, FCX +2.4%, AEM +2.2%, GG +1.7%, GOLD +1.9%, GFI +2.9%, KGC +2.8%, ABX +1%

11:01AM First Potomac Realty names Douglas Donatelli Chairman of the Board (FPO) 25.19 +0.28 : Co announces its board of trustees has elected Douglas J. Donatelli as chairman of the board and chief executive officer, succeeding Louis T. Donatelli, who will continue to serve as a trustee.

10:56AM Airline Index -XAL- extends near 50 day avg resistance (TECHX) 52.45 +0.23 : Noted potential for breakout in the group above its three day range and 20 day exp (51.35/51.48). Aggressive follow through led to a test of the May rebound high targeted at 52.21 with an extension today seeing its 50 sma/ema approached at 52.77/52.87 (session high 52.61). Better than 2% run on yesterday's breakout and +6% off last wk's low suggests potential for some short term consolidation near the 50 day averages. Support is at 52.21 with the key breakout point in the 51.50 area. CAL +0.5%, AMR +1.1%, JBLU ++0.6%, LCC +0.5%, UAUA +1.1%

10:52AM Hill International awarded contract to manage construction of major road, highway and bridge projects throughout Serbia (HINT) 7.00 -0.06 : Co announes it has been awarded a contract by the European Agency for Reconstruction to manage construction of various road, highway and bridge projects throughout Serbia. The two-year contract has a value to Hill of approx $1.8 mln.

10:45AM Medtronic announces its Bryan Cervical Disc System to be reviewed by FDA panel (MDT) 54.08 +3.28 : Co announces the Bryan Cervical Disc System will be reviewed by the FDA Orthopedic and Rehabilitation devices advisory panel on July 17, 2007. If the panel votes to recommend approval, the FDA will consider this vote when deciding on full approval. The Bryan Cervical Disc System is the second disc arthroplasty system for the cervical spine to be reviewed by an FDA panel. The first, Medtronic's Prestige Cervical Disc, is currently under evaluation by the FDA with expected approval later this summer.

10:26AM DuPont sets new session high of 52.49, tests resistance at last wk/three month high at 52.50 (DD) 52.45 +0.41 : Next level of interest is at 52.87 (Feb gap bottom).

10:23AM Biogen Idec - - Relative Strength (BIIB) 48.25 +1.24 : Stock displays Rel Strength as it stages a breakout above its 2-week range top at $47.25 today. Currently testing early May high of 48.48. The April high is 49.00.

10:21AM Caterpillar extends higher off the opening, nothing a fresh 52-week high above 77.00 (CAT) 77.05 +1.54 :

10:13AM Home Construction -XHB- up for sixth session in a row, tests/pauses near Feb gap bottom at 36.63-- session high 36.61 (TECHX) 36.52 +0.52 : Noted the potential breakout last week with the sector ETF running higher for the sixth session in a row to test the bottom of its Feb gap. The top of the gap and the 62% retrace of the Feb/April slump come into play at 36.98/36.96. Initial intraday support is at 36.35 followed by 36.20 but takes a slide under 36.00 to inflict chart damage -- MTH +2.6%, SPF +2.9%, BZH +2.3%, RYL +3%, PHM +2.9%, KBH +2%, LEN +1.4%, TOL +1.3%.

10:11AM Boeing: AirTran Airways orders 15 new Boeing 737 Aircraft (BA) 96.23 -0.25 :

10:10AM CompuDyne announces $5.8 mln of new awards for April, 2007 (CDCY) 5.13 -0.07 :

10:05AM Market View: Nasdaq Comp extends to 2600, initial resistance is near 2604 (TECHX) 2600 +12.21 : A secondary zone is at 2615/2618.

10:03AM Genesis HealthCare: ISS recommends Genesis shareholders vote "For'proposed $69.35 cash merger with Formation Capital and JER Partners (GHCI) 68.55 +0.05 : Co announces Institutional Shareholder Services, a leading provider of corporate governance and proxy voting services, has recommended that the holders of common shares of GHCI vote "for" the proposed acquisition by a joint venture between affiliates of Formation Capital, and JER Partners. In the transaction, GHCI shareholders will receive, $69.35 per share in cash, with the purchase price increasing, if the transaction is not completed by July 31, by approx 9% per annum, or $0.01710 per day, from July 31, 2007 through August 31, 2007, and by approx 10% per annum, or $0.01900 per day, from September 1, 2007 until the transaction closes. The shareholder vote on the transaction will take place at GHC's adjourned annual meeting on May 30, 2007.

10:02AM Trinity Biotech announces agreement with the Clinton foundation HIV/AIDS initiative (TRIB) 10.93 +0.04 : Co announces an agreement with the Clinton Foundation HIV/AIDS Initiative in connection with its work on behalf of the International Drug Purchase Facility established by the governments of Brazil, France, Chile, Norway and the United Kingdom.

10:02AM Active Power Green UPS Systems to Provide Critical Power Infrastructure for Two Major Data Centers (ACPW) 1.68 +0.06 : Co announces it has been selected to deliver four of its 1200 Series flywheel-based UPS systems to two different data centers operators in N. America. "Multiple orders for this amount of power demonstrate the acceptance of flywheel-based systems for major data center operations," said Gary Rackow, vice president of the Americas for Active Power. "The tides are changing in this market and customers are selecting green choices that deliver bottom line benefits."

10:00AM Market View: Retail pacing the way (TECHX) : The sector is a top performer this morning with TGT +3.8% providing leadership in the wake of its earnings. Also posting gains this morning are: KSS +2.2%, ANF +0.9% (testing this wk's high), COST +1.3%, WMT +1.1%, HD +1.2%, LOW +1.3%, CC +0.6% (testing recovery high off May/52-wk low).

9:52AM Market View: Another try at recent high for Dow and S&P 500 at 13586 and 1329.87 (TECHX) : Initial resistances of interest above are at 13610/13620 and 1533/1534.

9:47AM China Technology Devlpmt announces Mr. Changshan Zhao has resigned as Executive Director and Chairman of Board of Directors (CTDC) 3.12 -0.02 : Co announces that Mr. Changshan Zhao has resigned as Executive Director and Chairman of Board of Directors of the co. Mr. Kang Li was appointed as Executive Director of the co by the Board, with effect from May 23, 2007. Mr. Alan Li, Executive Director and Chief Executive Officer was elected and appointed as Chairman of the Board, with effect from May 23, 2007. The co further announced that Mr. Yibing Zhang has resigned from the position of Chief Financial Officer and co Secretary, whose resignation was approved by the Board, with effect from May 15, 2007. There were no disagreements between Mr. Zhang and the co on any matter relating to the co's operations, policies or practices which resulted in his resignation. The Board has authorized the Company's Nominating Committee to immediately identify an appropriate candidate to fill the vacancy left by Mr. Zhang. The Board has appointed Mr. Kang Li as Acting Chief Financial Officer and co Secretary and he will serve as Acting Chief Financial Officer and Company Secretary upon appointment of new Chief Financial Officer.

9:45AM Research In Motion spikes above 160.00 level in opening action and reverses into the red (RIMM) 158.30 -0.76 :

9:41AM Xinhua Finance says lawsuit is without merit (XFML) 7.22 +0.12 : Co stated that the lawsuit filed against it on 22 May by an individual who bought 100 shares in its IPO is wholly without merit and that the co intends to defend itself vigorously. The co added that the allegations in the complaint appear to be premised on factual errors drawn from a recent press article on the co.

9:41AM Market View: Indices approach recent highs in early trade and pause (TECHX) : Dow and S&P 500 approached the highs of last two narrow range sessions at 13586 (session high 13576) and 1529.87 (session high 1528.37) while the Nasdaq Comp inched fractionally above yesterday's multi-year high of 2593.03 (session high 2593.45).

9:34AM Citigroup testing top of four day range at 55.35 (C) 55.33 +0.25 : its Feb/Mid-Jan highs are at 55.50/55.53.

9:34AM China Eastern Airlines says trading of H shares of China Eastern Airlines in Hong Kong is suspended (CEA) 48.04 : Co announces that, following a request made by the co to the Stock Exchange of Hong Kong Limited, trading in its H shares has been suspended with effect from 9:47 a.m. on May 22, 2007 pending the release of an announcement of the co, the nature of which is price-sensitive. Trading in the co's ADSs on the NYSE has also been suspended with effect from 9:30 a.m. New York time on May 22, 2007.

9:30AM CEL-SCI Corp announces CEL-1000 shown to significantly enhance immune response against avian flu antigen in animals (CVM) 0.94 +0.03 : Co announces that CEL-1000 increased the immune response against H5 avian influenza antigen in combination with MAS-1, a water-in-oil adjuvant delivery system. The co says this new finding with CEL-1000 may have broad application for the enhancement of immune responses by individuals who have a poor immune response to vaccinations. It also has application for antigen sparing (reducing the amount/dose of antigen required for protective immunity), and to biodefense and pandemic settings for anti-infectious vaccines.

9:30AM Nucryst Pharma appoints Barry Heck Executive Chairman (NCST) 2.45 : Co announces that Barry Heck has been appointed Executive Chairman, effective immediately. Previously, Mr. Heck was non-executive Chairman of Nucryst.

9:18AM S&P futures vs fair value: +2.6. Nasdaq futures vs fair value: +2.3. : Futures are pulling back somewhat but still signal a modestly positive start for stocks. Taking some steam out of early buying efforts is Boeing (BA), which looks to open down more than 1.0% even though the Dow component is merely reaffirming full-year guidance that was given in its April 25 earnings release.

9:13AM Market View: Support and Resistance (TECHX) : The large caps have lagged over the last few days but the S&P 500 is eyeing its recent highs. For a look at the charts and support and resistance levels of interest go to The Technical Take.

9:01AM WW Grainger reaffirms FY07 EPS guidance of $4.70-4.85 vs $4.82 consensus (GWW) 85.82 :

9:01AM Senorx announces 510(k) clearance for its multi-lumen radiation balloon (SENO) 8.00 : Co announces that it has received 510(k) clearance from the FDA to market its Multi-Lumen Radiation Balloon Applicator for brachytherapy.

9:01AM Amgen to offer $4 bln in three series of senior notes; co to purchase approx $3 bln in common stock (AMGN) 53.96 :

9:00AM S&P futures vs fair value: +3.4. Nasdaq futures vs fair value: +3.0. : Positive bias persists in pre-market action as futures indications continue to improve heading into the opening bell. Ongoing proof of the liquidity factor that has lent support for stocks for several weeks now remains the underlying reason behind early optimism. It is worth noting, though, that investors are also keeping a close eye on oil prices, since the weekly inventories report at 10:30 ET carries market-moving potential. Also, Treasury Secretary Paulson is slated to provide an update on trade talks with Chinese officials at 11:45 ET.

8:35AM priceline.com: Guidance follow up (PCLN) 61.07 : As mentioned at 8:31, co reaffirms FY07 EPS guidance $2.90-3.10 vs $3.08 Reuters consensus. Co raises high-end of priceline.com's full-year 2007 target gross travel bookings range to $4.25 bln and intends to establish full-year 2007 gross travel bookings guidance of $2.27-2.35 bln for the co's European operations and $1.83-1.90 bln for the co's domestic operations. The co further notes that full-year 2007 pro forma and GAAP net income per diluted share are expected to come in at -- or slightly above -- the high end of the range of guidance in the event that 2007 full-year gross travel bookings come in at the high end of the revised range of guidance. Co will be presenting at the Goldman Sachs 8th Annual Global Internet Conference in Las Vegas today at 11:45 am E.T.

8:35AM Gamestop beats by $0.02, ex items; guides in-line (GME) 37.68 : Reports Q1 (Apr) earnings of $0.18 per share, excluding non-recurring items, $0.02 better than the Reuters Estimates consensus of $0.16; revenues rose 23.0% year/year to $1.28 bln vs the $1.25 bln consensus; sees Q2 comparable store sales growth of 16-18%. Co issues in-line guidance for Q2, sees EPS of $0.07-0.08 vs. $0.08 consensus. Co issues in-line guidance for FY08, sees EPS of $1.39-1.42 vs. $1.42 consensus; co reaffirms FY08 revenue growth guidance of 19-21%.

8:32AM Amazon.com acquires Brilliance Audio (AMZN) 68.88 : Co announces it has acquired Brilliance Audio, an independent publisher of audiobooks.

8:32AM American Technology's LRAD selected by the U.S. Navy and U.S. Army as their acoustic hailing and warning device for small vessels and vehicles (ATCO) 3.24 : Co announces its LRAD 500 has been selected by the U.S. Navy and U.S. Army as their acoustic hailing and warning device for small vessels and vehicles. The decision comes after more than a year of testing by the U.S. Navy and U.S. Army of LRAD and other hailing and warning products. This decision paves the way for ATC's proprietary LRAD 500 to become a program of record and for increasing orders from the U.S. Navy and U.S. Army.

8:31AM MGM Mirage forms transactions committee (MGM) 79.98 +0.00 : Co announces in response to an amended Schedule 13D filed by Tracinda Corporation with the S.E.C on May 21, 2007, in which Tracinda stated: "[Tracinda] intends to enter into negotiations with MGM MIRAGE to purchase the Bellagio Hotel and Casino and City Center properties. Tracinda also wishes to pursue strategic alternatives with respect to its investment in MGM MIRAGE which may include financial restructuring transactions involving all or a substantial portion of the remainder of the Company. Tracinda has made no decision with respect to any such restructuring transactions and reserves the right not to engage in or approve any transaction," MGM MIRAGE's Board of Directors has formed a Transactions Committee comprised of non-management, independent directors, not affiliated with Tracinda, to consider Tracinda's statement and strategic alternatives available to MGM MIRAGE. The co also advised that there can be no assurances that this process will result in any specific transactions. The co added that it does not expect, at this point, to disclose any developments regarding its exploration of strategic alternatives.

8:30AM S&P futures vs fair value: +2.1. Nasdaq futures vs fair value: +2.0. : The S&P 500 futures are still trading above fair value, implying large-cap stocks may take another crack at closing the benchmark index in record territory after two unsuccessful attempts. Aside from the absence of potentially troubling economic data scheduled this morning and more deal making, some encouraging earnings news is also in the spotlight. Medtronic (MDT) is up 4% in pre-market action after posting an upside Q4 surprise last night while Target (TGT) just reported, also topping expectations.

8:29AM Ross Stores reports Q1 in-line; guides Q2 EPS below consensus; reaffirms FY08 guidance (ROST) 34.10 : Reports Q1 (Apr) earnings of $0.48 per share, in line with the Reuters Estimates consensus of $0.48; revenues rose 9.2% year/year to $1.41 bln vs the $1.42 bln consensus. Co issues downside guidance for Q2, sees EPS of $0.35-0.37 vs. $0.38 consensus. Co reaffirms guidance for FY08, sees EPS of $1.85-1.95 vs. $1.93 consensus.

8:27AM Target beats by $0.04 (TGT) 58.04 : Reports Q1 (Apr) earnings of $0.75 per share, $0.04 better than the Reuters Estimates consensus of $0.71; revenues rose 9.2% year/year to $14.04 bln vs the $14.14 bln consensus. (Briefing.com note: On May 10th TGT reaffirmed FY08 (Jan) EPS guidance of $3.60.)

8:23AM Bond Watch: Finding New Waters in Which to Sink (BONDX) : The market is well-offered heading into the open as pressure on Treasuries was applied through the night via sinking prices throughout the EuroZone. Bond sentiment turned sour again, hot on the heels of yesterday's bitter tasting session, as prices continue to search for support within the context of a growing global economy & inflation potentially chugging higher. The 2-10-yr yield spread is flirting with dis-inversion at -0.5 for the first time since early Mar. Better-than expected Italian retail sales & weak German auction demand provided catalysts to send bond prices down throughout the EuroZone while in Japan, bonds were lower ahead of a 20-yr auction. Treasuries have just fumes to run on today as equities speed higher & data are idled. Technicals will likely guide trade through the session & a bounce is not out of the question as mid-Feb lows have held an initial test & oversold indicators await a correction. The buck was better as deteriorating bonds have helped fuel expectations of less likely lower US rates but the euro has staged a bit of a come back, sitting just below 1.35. Yen is also seeing some recovery, but its of a tenuous nature. The gold has seen a recent boost as well, now 662.55 (+3.30) following the buck backing off. Crude had a bid on ongoing supply issues but is now backing off with the Jul at 65.47 (-0.04). The calendar has no new data & Fed gov Kroszner gives a policy-free speech late in the session. The euro is at 1.3492 & the yen is at 121.4500 while the 10-yr yield is at 4.829%. For more bond & economic commentary click here.

8:18AM HandHeld Entertainment begins offering free streaming content from Canadian Broadcasting across the handHeld network of web sites (ZVUE) 1.93 : Co announces has begun offering its customers free, ad-supported, streaming video segments from Canadian Broadcasting.

8:01AM Tween Brands beats by $0.03, issues downside Q2 guidance, reaffirms Y08 guidance (TWB) 38.91 : Reports Q1 (Apr) earnings of $0.39 per share, $0.03 better than the Reuters Estimates consensus of $0.36; revenues rose 14.4% year/year to $223.2 mln vs the $220.7 mln consensus. Co reports Q1 comparable store sales up 3%. Co issues downside guidance for Q2, sees EPS of $0.13-0.16 vs. $0.18 consensus; co sees flat to slightly down comparable store sales. Co issues reaffirms guidance for FY08, sees EPS of $2.15-2.25 vs. $2.23 consensus.

8:01AM Vion Pharma announces suspension of Phase III trial in relapsed AML (VION) 2.02 : Co announces that it would suspend enrollment and further patient treatment in its Phase III clinical study of Cloretazine for patients with relapsed adult myelogenous leukemia pending a detailed review of all of the data from the trial. This decision was based on the recommendation of the trial's independent Data Safety Monitoring Board after a planned interim analysis. The DSMB's review of clinical data from the first 210 treated patients resulted in a recommendation that enrollment and further treatment of patients on study be suspended. The DSMB's recommendation was based on their evaluation that any advantage in complete remission could be compromised by the observed on-study mortality to date. The study will remain blinded while a complete medical review is conducted.

8:01AM IndyMac Banc announces its subsidiary F.S.B. prices $500 mln non-cumulative, perpetual preferred stock offering (IMB) 35.09 :

8:00AM Endurance Specialty announces share repurchase from founding shareholders (ENH) 38.70 : Co announces that it has repurchased 1.3 mln of its ordinary shares owned by Capital Z Financial Services Fund and Capital Z Financial Services Private Fund-- initial investors at the formation of the co in 2001. The purchase price was $38.02275 per share, for a total purchase price of $49,429,575. ENH made the repurchases under its existing share repurchase program and is using existing cash on hand to fund the repurchase.

8:00AM S&P futures vs fair value: +1.6. Nasdaq futures vs fair value: +1.5. : Early indications are pointing to a slightly higher open for stocks; but there isn't a lot of conviction on the part of buyers since the lack of any distinctly negative news is helping to keep an underlying bid in equities. Not surprising, investors have some more M&A news to digest. Alcan (AL) is recommending shareholders reject Alcoa's (AA) $27.6 bln hostile takeover bid, but hasn't ruled out the possibility of actually making a bid for Alcoa and is reportedly in merger talks with BHP Billiton (BHP). Also, Crescent Real Estate Equities (CEI) agreed to be acquired by Morgan Stanley (MS) for about $2.3 bln while Payless Shoe (PSS) said it will pay $800 mln for Stride Rite (SRR).

7:45AM Hewlett-Packard wins NASA contract worth up to $5.6 bln (HPQ) 45.58 : Co announces it has been awarded a seven-year contract worth up to $5.6 bln by the U.S. National Aeronautics and Space Administration (N.A.S.A) to provide a wide range of technology as needed by U.S. federal government agencies. HPQ products to be provided under the indefinite delivery indefinite quantity contract, called the N.A.S.A Solutions for Enterprise-Wide Procurement IV Class 5, include desktops, workstations and blade PCs with Linux and Unix capabilities, servers and printers, among other offerings.

7:40AM Dillard's misses on EPS, reports revs in line with preannouncement (DDS) 39.65 : Reports Q1 (Apr) earnings of $0.53 per share, $0.19 worse than the Reuters Estimates consensus of $0.72; revenues fell 3.9% year/year to $1.76 bln vs $1.76 bln preannouncement on 5/10. Net sales of shoes significantly outperformed the average company performance trend during the 13 weeks ended May 5, 2007. Sales of juniors' and children's clothing declined significantly more than trend during the period.

7:36AM On The Wires (WIRES) : Everlast Worldwide (EVST) announces that it will launch a new global brand and product strategy to build on its status as a premier athletic co...ICT Group (ICTG) and UTOPY Inc. announce a strategic partnership and co-marketing agreement. ICTG will be utilizing the UTOPY speech analytics software for agent-facing quality, training and process improvement purposes as well as to deliver customer intelligence and voice/data mining solutions for clients.

7:36AM Talbots reports Q1 EPS results, in line with previously revised expectations; guides in-line for FY08 (TLB) 21.16 : Reports Q1 (Apr) earnings of $0.10 per share vs the Reuters Estimates consensus of $0.09; revenues rose 26.6% year/year to $573.6 mln vs the $553.5 mln consensus. Co issues in-line guidance for FY08, sees EPS of $0.70-0.80 vs. $0.72 consensus.

7:31AM Toreador Royalty announces first gas sales from Turkish Black Sea (TRGL) 15.55 : Co and its joint venture partners TPAO and Stratic Energy announce that first gas sales from the South Akcakoca Sub-Basin project have begun. Pricing for the gas is based on the BOTAS posted guaranteed industrial tariff which in May is approximately $8.90 per thousand cubic feet of gas. After discounts, the wellhead price based on current pricing is estimated to be $8 per MCF. Pricing is adjusted monthly and will vary with the BOTAS posted price.

7:20AM Mortgage Applications (BONDX) : The weekly MBA mortgage applications index climbed 1.6% last week, with purchasing applications up 1.3% and refis higher by 1.9%. The fixed 30-yr mortgage rate shot up to 6.23% from 6.12% as did the 15-yr to 5.96% from 5.81%. The 1-yr adjustable rate mortgage rate jumped to 5.72%.


7:08AM On The Wires (WIRES) : PartnerRe (PRE) announces that it has signed a definitive agreement with the French Monceau Group effective July 1, 2007 to acquire renewal rights for the international reinsurance business of Mutuelle Centrale de Reassurance, the reinsurance subsidiary of the Monceau Group...LaBarge (LB) has received contracts valued at $2 mln from Northrop Grumman (NOC) to continue to produce electronic equipment for the AN/AAQ-24 NEMESIS Directional Infrared Countermeasure system.

7:03AM Northfield Labs reports results of its pivotal Phase III trauma trial with PolyHeme (NFLD) 4.25 : Co reported results of its pivotal Phase III trauma trial with PolyHeme, its human hemoglobin-based oxygen-carrying red blood cell substitute. The trial was designed to seek an indication for use in the treatment of life-threatening red blood cell loss when transfusion is required and red blood cells are not available, not for use interchangeably with blood. This indication addresses a critical, unmet medical need. Day 30 mortality was also a primary safety endpoint. Further analysis of the mortality data indicates that the difference in mortality at 30 days between patients who received PolyHeme beginning at the scene and continuing for up to 12 hours following injury, and control patients who received the standard of care, including early blood, was not statistically significant. Northfield will hold a conference call today, Wednesday, May 23, 2007, at 8:30 a.m. EDT to discuss the results of the study.

7:03AM Wet Seal beats by a penny; guides Q2 EPS below consensus, revs in-line (WTSLA) 5.58 : Reports Q1 (Apr) earnings of $0.07 per share, $0.01 better than the Reuters Estimates consensus of $0.06; revenues rose 10.3% year/year to $138 mln vs the $138 company preannouncement. Co guides for Q2, sees EPS of $0.05-0.08 vs. $0.09 consensus; sees Q2 revs of $147-152 mln vs. $151.30 mln consensus.

7:02AM AEterna Zentaris' partner, Spectrum, discloses detailed Phase 2 data for Ozarelix, in BPH at annual AUA meeting (AEZS) 3.70 : Co announces that its partner Spectrum Pharmaceuticals (SPPI) presented an abstract outlining detailed Phase 2 results for AEZS' fourth-generation luteinizing hormone-releasing hormone antagonist, ozarelix, in benign prostatic hyperplasia. Results indicate that ozarelix was well tolerated and demonstrated statistically significant as well as clinically meaningful efficacy in the treatment of lower urinary tract symptoms secondary to B.P.H. Results also showed no statistically significant impact on quality of life or erectile function. The abstract was presented yesterday afternoon at the American Urological Association Annual Meeting.

7:00AM Cytogen reports publication validating the utility of its proprietary ProChart database (CYTO) 2.20 : Co announces the publication of a review validating the utility of its ProChart database to help define the function of the W.W domain-containing oxidoreductase, an important tumor suppressor gene with known involvement in breast, prostate, lung, pancreatic, esophageal, and gastric cancers. The peer-reviewed article was published in the online edition (25 April 2007) of the Journal of Cellular Physiology as a Mini Review entitled "W.W.O.X in biological control and tumorigenesis," by Rami Aqeilan and Carlo Croce, epub 25 April 2007. The publication focuses on the most recent progress in understanding the function of W.W.O.X as a tumor suppressor. Using ProChart, the authors were able to determine a number of novel WWOX-interacting proteins, including the transcription factors p73 and Ap-2 gamma, the latter of which is known to play a role in activating the expression of the epidermal growth factor, HER2. In view of recent biological validation, as well as the progress of internal data mining efforts and external research collaborations, CYTO is exploring strategic transactions for AxCell BioSciences and will be presenting today at the 9th Annual C21 BioVentures Conference.

6:36AM Vical says Vaxfectin adjuvant with needle-free delivery enhances DNA vaccine performance (VICL) 4.75 : Co announces that in a recently completed animal study, a DNA vaccine formulated with the co's patented Vaxfectin adjuvant and delivered by needle-free injection yielded significantly higher antibody responses than an unformulated DNA vaccine delivered by needle and syringe. In a separate animal study, electroporation following injection of unformulated vaccine yielded comparable improvements in antibody responses, but electroporation required anesthesia of the animals while needle-free injection of Vaxfectin-formulated vaccine was administered safely and tolerably without anesthesia.

6:20AM S&P futures vs fair value: +3.2. Nasdaq futures vs fair value: +3.3. :

6:20AM European Markets : FTSE...6628.10...+21.50...+0.3%. DAX...7721.09...+61.70...+0.8%.

6:20AM Asian Markets : Nikkei...17705.12...+25.07...+0.1%. Hang Seng...20798.97...-44.95...-0.2%.

6:15AM Omnicell prices a 3.9 mln share common stock offering at $21.50/share (OMCL) 22.03 :

6:10AM On The Wires (WIRES) : Integra LifeSciences (IART) announces that its Jarit Surgical Instruments subsidiary has signed a three-year contract to supply Jarit surgical and laparoscopic instruments to members of MedAssets Supply Chain Systems, LLC... Amdocs (DOX) announces that KPN, the largest service provider in the Netherlands, has licensed solutions from Cramer, Amdocs OSS Division for end-to-end triple play fulfillment.

6:04AM Dynamic Materials receives $8.3 mln order for explosion welded plates (BOOM) 35.13 : Co announces that its Explosive Metalworking business has received an order valued at approx $8.3 mln from a U.S.-based customer.

4:21AM On The Wires (WIRES) : Temecula Valley Bancorp (TMCV) announces that its Board of Directors has approved a stock repurchase program to repurchase up to $5.5 mln in shares (approx 250K shares) of common stock in the open market effective immediately for a period of six months ending November 22, 2007... Boeing (BA) Business Jets and Ocean Sky Aviation announce an order for a BBJ; the new order is worth $51 mln at list price... NAVTEQ (NVT) announces BMW Group has selected it as the primary map supplier on BMW Group's newest navigation system and to lead a new pan-European marketing and distribution campaign for map updates... MoSys (MOSY) announces that NEC Electronics has licensed MoSys' 1T-SRAM technology for use in the semiconductor manufacturer's cutting-edge 55-nm process.

4:16AM KB Home enters into binding share purchase agreement to sell its French operations (KBH) 46.42 : Co announces that it has entered into a binding share purchase agreement to sell its entire 49% equity interest representing 10,921,954 shares in its French subsidiary Kaufman & Broad SA to PAI Partners at a price of 55.00 euros per share. The purchase price will consist of 50.17 euros per share in cash to be paid by PAI to KB Home after payment of a cash dividend of 4.83 euros per share to be approved by the Board of Directors of KBSA and to be paid by KBSA. KB Home had previously announced on May 17, 2007 that it entered into an exclusivity period with PAI based on a final, irrevocable, binding and fully financed offer from PAI.

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