This is the reverse of G-8 nations exporting inflation…..
Comments »Consumer Confidence: Prior 63.4, Consensus 64.4, Actual 65.4
More on the Fate of a Fiat currency
There’s been some discussion over the last few days of what is going to happen if China starts reducing its position in US Treasuries. Seeking Alpha has a good summation of the problem:
“In response, during a recent summit, the leaders of Brazil, Russia, India, China and South Africa (the BRICS) announced that they want to trade between themselves in their own currencies. This comes amid a growing chorus in China pushing for a limit of dollar reserves to $1.3 trillion.”
Comments »Defense Stocks Lagging Overall Market; Should You Be Worried ?
Public Pensions Face Precedence On Budget Cuts
“When an arbitrator ruled this month that Detroit could reduce the pensions being earned by its police sergeants and lieutenants, it put the struggling city at the forefront of a growing national debate over whether the pensions of current public workers can or should be reduced.”
Comments »Oil Reverses Early Losses and Crack Spreads Rip Higher
Upgrades and Downgrades This Morning
Upgrades
PAAS – Pan Am Silver upgraded to Buy from Hold at Jefferies; tgt raised to $48 from $37
VECO – Veeco Instruments tgt raised to $60 at Kaufman following earnings
NOK – Nokia upgraded to Neutral from Sell at WestLB
CYOU – Changyou.com resumed with a Buy at Brean Murray; tgt raised to $53
DECK – Deckers Outdoor: Late start to spring may provide a lift to 1Q – RBC Capital Mkts
OXY – Occidental Petro upgraded to Buy from Hold at Deutsche Bank
MDRX – Allscripts-Misys Healthcare initiated with a Outperform at Oppenheimer
EBAY – eBay Q1 preview: expecting in-line results with stellar PayPal and solid Marketplaces growth – Wedbush
NTFL – Netflix target raised to $300 at Canaccord Genuity following last night’s results
JOBS – 51job initiated with a Market Perform at William Blair
Downgrades
NFLX – Netflix downgraded to Sell from Neutral at Janney Montgomery Scott
MO – Altria downgraded to Hold at Argus
ECA – EnCana downgraded to Sell at Ticonderoga; tgt $27
SOHU – Sohu.com resumed with a Hold at Brean Murray
ININ – Interactive Intelligence downgraded to Mkt Perform at Morgan Keegan
MGM – MGM Resorts downgraded to Underperform from Neutral at Credit Suisse
BEXP – Brigham Exploration downgraded to Hold at Stifel Nicolaus
CYH – Community Health downgraded to Hold from Buy at Citigroup
Comments »Gapping Up and Down This Morning
Gapping Up
UCTT +11.4%, MSO +6.1%, HXL +8%, UBS +7.2%,NVS +1.1%, AZN 1.0%, ITW +6.6%, HSTM +6.2%,MSPD +5.7%, VECO +5%, UCTT +11.4%, HXL +8%, UBS +7.2%, LXRX +7.1%, HSTM +6.2%, VECO +4.8%, CLMS +4.3%, CS +3.4%, AKS+2.3%, MSPD +2%, GOLD +1.5%, DB +1.3%, GE +1.3%, RIG +1%, CS +3.4%, DB +1.3%, IRE +1.5%, CMI +4.4%, F +4.2%, ACI +3.5%, KND +3.2%, UA +2.8%, DAL+2.2%, LO +2.2%, MMM +1%
Gapping Down
NFLX -5%, ARMH -1.1%, HWAY-1.1%SXCI -1.5%, ESRX -7.9%, AFOP -7.6%, , SANM -3.9%, HMA -3.8%, RCII -5.3%, AIB -5.1%, ELX -3.4%, ETFC -3.3%, AINV -1.8%, MHS -1.4%
Comments »In Play and On The Wires
Case Shiller 20 City Index: Prior -3.06%, Consensus -3.02%, Acutal 10 City Index-2.6%, 20 City Index -3.3%
Preview to Tomorrow’s Fed Meeting
John Boehner: Congress should consider cutting multi-billion-dollar subsidies to oil companies
“It’s certainly something we should be looking at,” Boehner said in an ABC News interview.
“We’re in a time when the federal government’s short on revenues. They ought to be paying their fair share.”
Comments »United Parcel Service Inc. Earnings: $0.88 EPS vs Consensus of $0.85 on Revenues of $1.4 Bn
“….“UPS produced strong first quarter results despite rapidly rising fuel costs and challenging weather conditions,” said Scott Davis, UPS chairman and CEO. “Once again we demonstrated the strength of our global portfolio and ability of our integrated operating model to further expand margins.”
Comments »Ford Motor Company Earnings: $0.61 EPS vs Consensus of $0.50 on Revenues of $33.1 Bn
“DETROIT—Ford Motor Co. reported its largest first-quarter profit in 13 years as the auto maker benefited from a recovery in the global economy, a larger portfolio of fuel-efficient vehicles and consumers driving up prices by outfitting their cars with more features.”
Comments »AutoNation Earnings: $0.45 EPS vs Consensus of $0.45 on Revenues of $3.3 Bn
“Revenue up 17% and new vehicle unit sales up 23% compared to same period in 2010
— Revenue and gross profit for all major categories – new vehicles, used vehicles, parts and service, and finance and insurance – improved compared to first quarter of 2010
— EPS from continuing operations was a record (1) $0.46, up 35% compared to first quarter 2010 EPS from continuing operations of $0.34
— AutoNations 2011 full-year industry U.S. new vehicle sales outlook revised downward from 12.8 million to mid-12 million units due to Japanese supply constraints through year-end”
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3M Company Earnings: $1.49 EPS vs Consensus of $1.42 on Revenues of $6.84 Bn
The Coca-Cola Co. Earnings: $0.86 EPS vs Consensus of $0.85 on Revenues of $10.05 Bn Which Was Marginally Light of Expectations
- “Worldwide volume grew a strong 6% in the quarter, with growth in all five geographic operating groups. Excluding new cross-licensed brands, primarily Dr Pepper brands, worldwide volume growth was 5% in the quarter. International volume growth was 6%.
- North America volume growth was 6% in the quarter. Excluding new cross-licensed brands, North America volume growth was 2% in the quarter, marking the fourth consecutive quarter of organic growth for our flagship market.
- Worldwide volume growth was led by brand Coca-Cola, up 3% in the quarter. Global volume and value share gains continued in total nonalcoholic ready-to-drink (NARTD) beverages and across both sparkling and still beverages.
- First quarter reported EPS was $0.82, up 19%, with comparable EPS at $0.86, up 7% and in line with our long-term target. Comparable EPS includes a $0.01 dilutive effect, which will reverse primarily in the fourth quarter, due to the timing of marketing expenses as we conform the newly acquired North American bottling business to our accounting policies. We also estimate the events in Japan had a $0.01 dilutive effect on first quarter comparable EPS as a result of lost revenues.
- First quarter reported net revenue was $10.5 billion, up 40%, with comparable net revenue also up 40%, reflecting solid growth in concentrate sales, a 2% currency benefit, positive price/mix and the acquisition of Coca-Cola Enterprises’ (CCE) North American operations.
- First quarter reported operating income was $2.3 billion, up 4%, with comparable operating income up 10%, reflecting strong top-line performance, a 3% currency benefit and the acquisition of CCE’s North American operations.
- Coca-Cola Refreshments (CCR) integration efforts are on plan, with expected 2011 net cost synergies of $140 to $150 million. Company-wide productivity initiatives are on plan and on track to achieve our targeted $500 million in annualized savings by year-end 2011.”
Asian Markets Fail to Reverse Early Losses
Greek Budget Deficit Rise Above Expectations; Germany Calling For Restructuring
“Greece’s budget deficit exceeded goverment estimates and the euro area’s overall debt reached a record, narrowing Europe’s options for putting an end to the fiscal crisis.
Greece’s shortfall was 10.5 percent of gross domestic product in 2010, higher than a 9.4 percent estimate made by the Greek government in February, official European Union figures showed today.
Greek bond yields surged, rekindling speculation that a debt write-off or extension of the country’s repayment timelines will be the only way out of the fiscal trap.
“I don’t think that Greece will succeed in this consolidation strategy without any restructuring in the future, or perhaps also in the near future,” Lars Feld, a member of the German government’s council of economic advisers, told Bloomberg Television’s Nicole Itano in Frankfurt. “Greece should restructure sooner than later.”
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