“AT&T reported quarterly earnings Thursday that fell just short of analysts’ predictions, while revenues edged slightly past expectations.

The telecommunications company’s shares rose after the closing bell, following the news.

What is AT&T stockdoing now? (Click here for the latest after-hours quotes.)

Earnings excluding items rose to 44 cents per share from 42 cents a share in the year-earlier period.

Revenue improved to $32.58 billion from $32.50 billion a year ago.

Wall Street had expected AT&T to report earnings excluding items of 45 cents a share on $32.22 billion in revenue, according to Thomson Reuters consensus estimates.

As a carrier for the iPhone, AT&T’s fortunes are also tied to Apple, whose shares took a beating on Wednesday after announcing a revenue disappointment.”

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“REDMOND, Wash. (AP) — Microsoft says its fourth-quarter earnings slipped 4 percent, despite a lift from its latest version of Windows.

The results announced Thursday are the first to include Windows 8. The program is a dramatic overhaul of the Microsoft Corp. operating system that powers most PCs. Windows 8 came out Oct. 26 with slightly more than two months left in Microsoft’s fiscal second quarter.

Although the Windows 8 sales haven’t been as impressive as investors hoped, revenue in Microsoft’s Windows division climbed 24 percent from the previous year.

BGC Financial analyst Colin Gillis said Microsoft “has multiple revenue streams that are still very nice businesses.”

“I kind of like the Windows segment,” he said, adding that the 24 percent growth was “a little stronger than expected.”

Microsoft earned $6.4 billion, or 76 cents per share, during the final three months of the year. That was down from $6.6 billion, or 78 cents per share, a year earlier.

The company’s total revenue rose 3 percent from last year to $21.5 billion…”

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Retail, consumer cylcicals, housing, builders, transports, and the indices are hitting new highs;

the bears are getting squeezed.

Profit takers took the S&P to unch into the close while the DOW managed to hold onto 40 some odd points.

Guess I was wrong about a 15hundo close or better on the S&P, but with no money on line who really cares.

$AAPL spoiled a new high for the NASDAQ, but there is something to be said about all these new highs in the face of a 12% drop in $AAPL.

Chip stocks got crushed in the wake of $AAPL helping to hurt the NASDAQ.

DOW up 51

NASDAQ down 24

S&P up .73

WTI up $0.76

Gold down $20

[youtube://http://www.youtube.com/watch?v=lygD0A1p9ws 450 300]

 

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[youtube://http://www.youtube.com/watch?v=7ZpJeHN0_gw 450 300]

Link for iPhone users: http://www.youtube.com/watch?v=7ZpJeHN0_gw

 

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“The Sierra Club has announced its approval for a “one-time” use of civil disobedience. The civil disobedience is intended to step up their efforts to oppose the Keystone pipeline.

Many of the other groups opposing Keystone have been engaging in civil disobedience as a tactic, including arson-based ecoterrorism. This will be the first time in the Sierra Club’s history that they have approved violating the law.

In a January 22, 2013 press release, the Sierra Club states:

The Sierra Club Board of Directors has approved the one-time use of civil disobedience for the first time in the organization’s 120-year history.

The Club went as far as implying Hurricane Sandy was the result of humanity and stated:

Recognizing the imminent danger posed by climate disruption, including record heat waves, drought, wildfires and the devastation of superstorm Sandy, the Sierra Club board of directors has suspended a long-standing Club policy to allow, for one time, the organization to lead a group of environmental activists, civil rights leaders, visionaries, scientists, and other high-profile individuals in a peaceful protest to dirty and dangerous tar sands.  The action will be by invitation only and is being co-sponsored by 350.org….”

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Source

“The ongoing stalemate in Washington between Republicans and Democrats to forge long-term budget and deficit-reduction solutions has made international investors leery of American markets.

A new Bloomberg poll of 921 subscribers to Bloomberg Professional service revealed that 47% of global investors surveyed said they are reducing their investments in the U.S. as a direct result of “repeated confrontations between the U.S. Congress and President Obama.”

More than a third of respondents said the nation’s fiscal problems pose the biggest threat to the world economy, while 29% chose Europe’s sovereign debt crisis and 15% named China’s slowing economy.

Investors also indicated that they doubt President Barack Obama and congressional Republicans will agree this year on major changes to federal entitlement programs or to government tax policies.

Nonetheless, the United States still ranked higher than any other country as a place for investment opportunities.”

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“The S&P 500 hit a five-year high last week, and now some experts are saying that stocks are overpriced and that the overall market is vulnerable to a 20% drop this year. There are certainly plenty of things to worry about, from a lousy economy and political gridlock in Washington to the possibility of a financial crisis in the euro zone. But there’s an equally compelling case that stocks could do quite well in 2013. Indeed, it wouldn’t be hard for the Dow to sail through its all-time high of 14,164 and go on to top 15,000 before the year is out – a gain of 10% or more from current levels.

There’s no denying the economy’s current problems. Since the recession ended more than three years ago, growth has been consistently disappointing for a recovery. Moreover, the economy has actually been slowing down recently – from a 3.1% annualized growth rate in last year’s third quarter to less than 1.5% in the fourth quarter. In addition, analysts project that the fiscal cliff deal, combined with attempts to cut the deficit, will knock as much as a full percentage point off GDP growth in 2013. In short, this year’s economy figures to be just as sluggish as last year’s – and maybe worse.

But the pessimists’ case for a bear market is based on more than a limping U.S. economy. They think the bull market – up more than 100% over the past three-and-a-half years – has run its course. They expect a global slowdown that will cause 2013 corporate profits to fall short of expectations. Finally, they think the Federal Reserve’s extreme easy-money policies will either lead to inflation, or that the Fed will have to raise interest rates. Either way, it would send the prices of Treasury bonds into a tailspin and unsettle the stock market as well.

Whew! That’s a lot to worry about. But today’s bearish commentators are making one crucial incorrect assumption – that share prices move in lockstep with the economy. It’s true that over the long term, share prices follow corporate profits and that corporate profits reflect the economy. But that relationship doesn’t necessarily hold in the short run. Here are six reasons to question the gloomy outlook…”

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“Sen. Dianne Feinstein (D-Calif.) will introduce a bill banning assault weapons and high-capacity ammunition clips on Thursday.

Feinstein’s bill will expand the criteria for classifying military-style assault weapons from a 1994 law, which lapsed a decade later. Her new measure will ban the sale of about 150 types of firearms, including some rifles and handguns, as well as the sale of high-capacity magazines, according to USA Today.
The bill will exempt firearms used for hunting and will grandfather in guns and magazines owned before the law’s potential enactment. However, the grandfathered weapons will be logged in a national registry….”

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“When I started this website I knew pretty quickly what would generate traffic and attention.  If you write about things that really scare people, conspiracy theories, Apple and gold you can drive enough traffic to a financial website to make a  decent living (until people realize you’re basically scamming them).  I told myself I’d choose quality over quantity and that I would TRY, above all else, to provide relevant, educational and ACCURATE information for people.  I knew it wouldn’t be enough to make the site sustain itself, but I truly felt that the alternative was a dishonest and low value way to write about finance, money and investing.  I don’t always succeed in this goal, but I always try.

One of the few things I’ve been right about is the “no recession” call since many notable investors and pundits began loudly declaring recession in late 2011.  I said none of the indicators were pointing to renewed recession and that the likelihood was for continued meager growth within the de-leveraging cycle.  In essence, misunderstanding the balance sheet recession was deadly for your portfolio and your general understanding of macro trends…”

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“Mary Jo White, the aggressive New York attorney set to be nominatged by President Obama Thursday to chair the Securities and Exchange Commission, is accustomed to complex legal challenges.

When Sheik Omar Abdel Rahman and nine fellow Muslim militants were charged in a 1993 plot to bomb the United Nations and other New York landmarks, the Manhattan U.S. Attorney’s office headed by White turned to a little-used seditious conspiracy statute from the Civil War era to prosecute the sprawling terrorism case….”

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A dolphin was lucky to find a diver while being tangled in fishing string….

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“Morgan Stanley Thursday cut its outlook on gold prices for the year ahead, but reiterated its view that macroeconomic conditions remain favorable for further price appreciation in the yellow metal.

The bank cut its average price forecast for gold this year by 4% to $1,773 a troy ounce. It also cut its silver price outlook for 2013 by 4% to $33.44/oz.

“We remain bullish on the gold price outlook in 2013 despite recent selling pressure triggered by market concerns of an earlier-than-previously-anticipated tightening in U.S. monetary policy,” the bank said.

“We expect that very low nominal interest rates, an ongoing commitment to QE3, and a below-par recovery with attendant pressure on the U.S. easing will still combine to encourage investment buying of gold, despite elevated prices,” it added.

Silver should continue to outperform gold on a relative basis this year, despite expected volatility, it added….”

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“Nouriel Roubini, the New York University economist noted for his pessimism and accurate prediction of the global financial meltdown, is worrying these days about the long-term impact of easy money policies by central banks.

Roubini said the quantitative easing (QE) programs pursued by the Federal Reserve and other central banks may overwhelm the economy with debt-strapped banks, businesses and consumers, according to The Guardian.

“Over time, you get zombie banking, zombie corporates, zombie households, which is damaging in the long term,” he told an audience at the World Economic Forum in Davos, Switzerland. Zombie banks refer to financial institutions that are insolvent but are propped up by cheap money from the government.

Roubini maintained there could be unintended consequences if central bankers err in their QE exit strategies, The Guardian reported.

“You’ve got QE2, QE3, soon you’ll have QE Infinity. What’s going to happen to the regime of monetary policy?” he asked.

“Most countries had inflation targeting. Now the U.K. is talking about throwing it away. What’s going to be the new anchor? How are we going to anchor people’s expectations of inflation over time?” …”

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Gentleman’s bet anyone?

“NEW YORK (AP) — A sudden drop in claims for unemployment benefits helped push the Standard & Poor’s 500 index above 1,500 for the first time since December 2007.

Apple’s stock sank 10 percent, pulling the Nasdaq composite index lower, after the electronics giant predicted slower sales.

The Labor Department reported that the number of Americans applying for unemployment aid fell last week to the lowest since January 2008. Applications dropped 5,000 to 330,000. The four-week average also hit a five-year low.

The Dow Jones industrial average was up 66 points at 13,846 as of 12:10 p.m. EST.

The Standard & Poor’s 500 index edged up 5 points to 1,500. The S&P 500 last closed above 1,500 on Dec. 10, 2007. It’s already up 5.1 percent this year and has risen over the previous six days.

One reason for the market’s recent rise is that some of the biggest obstacles have been pushed aside, said Brian Gendreau, a market strategist at Cetera Financial Group. On Wednesday, the House of Representatives agreed to suspend the federal government’s borrowing limit until May 19, allowing the U.S. to keep paying its bills for another four months.

“Politics is off the table for now and Europe seems like it’s stable. So what’s left? It’s earnings. And aside from Apple it seems like pretty good news,” Gendreau said.

The Nasdaq fell five points to 3,148. A 10 percent drop in Apple, the country’s most valuablecompany, was enough to pull the technology-heavy index lower. Apple is the largest company of the Nasdaq, making up 10 percent of the index….”

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“Amazon.com (AMZN), in a possible move tied to its expected introduction of a smartphone later this year, said Thursday that it’s acquired Ivona Software, a maker of text-to-speech technology.

Gdynia, Poland-based Ivona already powers the “Text-to-Speech,” “Voice Guide” and “Explore By Touch” features on Amazon’s Kindle Fire tablets. It also provides text-to-speech products to thousands of developers, businesses and customers worldwide.

Amazon didn’t disclose terms or other details. Ivona’s website already carried the tag “An Amazon Company” early Thursday….”

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“WASHINGTON (Reuters) – Lockheed Martin Corp and Raytheon Co warned on Thursday that U.S.defense budget cuts would eat into their sales this year, but they forecast very different effects on their bottom lines.

Lockheed, the Pentagon’s biggest supplier, said it could cut enough costs that earnings would not only grow but also would exceed expectations. Raytheon, on the other hand, said its profit would shrink as the arms maker gets squeezed by the end of high-margin programs and the start of new, low-margin ones.

Their divergent fortunes illustrate the tough year ahead for defense contractors, which are uncertain about just how deeply the U.S. government plans to cut military spending to help rein in the soaring deficit.

Lockheed makes fighter jets, among other armaments, while Raytheon makes the Patriot missiles and other defense equipment.

Lockheed’s forecast assumes Congress will avert $500 billion in additional Pentagon spending reductions known as “sequestration” that are due to take effect over the next decade, starting in March.

But Lockheed still expects sales to contract as much as 6 percent this year, an even steeper slide than the decline of as much as 3 percent that Raytheon forecast.

Shares of both companies fell in morning trading, with Lockheed down 2.3 percent at $93.84 andRaytheon down 2.1 percent at $56.96.

BEAT EXPECTATIONS

Lockheed said earnings per share dropped 19 percent to $1.73 in the fourth quarter from $2.14 a year earlier, reflecting a large noncash pension adjustment, higher income tax expenses and a charge for job cuts in its aeronautics division.

Excluding those one-time items, the company earned $1.91 per share, beating the consensus view of analysts polled by Thomson Reuters I/B/E/S by 9 cents….”

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“The United States has nothing left to pressure Tehran over its nuclear programme except for war, and if it chooses conflict Iran could close a key energy chokepoint, its envoy to Baghdad told AFP on Thursday.

Ambassador Hassan Danaie-Far insisted in an interview that Tehran retained the right to close the Strait of Hormuz, through which a third of the world’s traded oil passes, in response to any aggression, military or otherwise.

“What else (US President Barack) Mr. Obama can do?” Danaie-Far said through an Iranian embassy translator.

“The only remaining card on the table is war. Is it to their benefit? Is it to the benefit of the world? Is it to the benefit of the region?”

The diplomat said that if it faced a “problem,” Tehran would be within its rights “to react and to defend itself.”

Asked if it could try to close off the strait, Danaie-Far replied: “If there is some movement and action from our enemies, including US, against us, as a part of natural reaction, that may happen.”

“Everybody would be a loser in that case,” he added.

On whether only military or other types of pressure could spur Iran to make such a move, he said: “It can include all of them.” …”

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U.S. equities have pared half their gains after being up as much as 80 and change on the DOW.

The NASDAQ is being dragged down by $AAPL which is down roughly 12% today.

Retailers have sprung back today after the sector took a drudging yesterday due to poor earnings out of $COH.

Transports are currently fighting with retailers in leading the market higher.

Oil inventories came in slightly below expectations, but a build in supplies none the less. WTI is currently up $0.89.

Gold is getting hammered for $19 sticks with other metals are weak as well.

Given good jobless claims and PMI data i would be surprised if we did not close at the highs or more of the day.

Finally the Yen and the Euro are trading higher against the dollar.

 

Market update 

3D heat map

[youtube://http://www.youtube.com/watch?v=LerOXe4R2lM 450 300]

Link for iPhone users: http://www.youtube.com/watch?v=LerOXe4R2lM

 

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“Research firm Markit Economics reported that the flash U.S. purchasing manager’s index (PMI) rose from 54 in December to 56.1 in January, the highest index reading since last March. This is a preliminary reading for January; the final reading will be published on February 1. Readings above 50 indicate expansion relative to the previous month, while readings below 50 indicate contraction.
The output, new orders, new orders, new export orders and employment subindexes were all expanding in January, and at a faster rate than in December. Oddly perhaps, the backlogs of work contracted from 50.3 in December to 49.5 in January, and the stocks of finished goods continued to show contraction even though the rate improved from 48.7 to 49.6. Another positive sign was the expansion in manufacturers’ purchases, which rose from an index reading of 49.8 to 51.5…”

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“A gauge of future U.S. economic activity rose in December, pointing to an improvement in growth despite an ongoing political fight in Washington over fiscal policy.

The private Conference Board said on Thursday its Leading Economic Index gained 0.5 percent to 93.9 last month, afterbeing unchanged in November.

A drop in new claims for jobless benefits helped drive the gain, as did an increase in new building permits.

“A pickup in domestic growth is now more likely,” said Ken Goldstein, an economist at the Conference Board….’

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