Thursday, June 7, 2007

Morning Market Comment

I don't mean to be editorially picky, but one well known website this morning started their lead report on the markets by stating, "After two days of heavy losses..." I'm sorry, but two days of Dow declines of less than 1% are not "heavy losses". Yikes.

Ok, now that I've gotten that out of the way, it does look like U.S. stock markets are poised to open little changed following a few days of selling. May retail same store sales are less than spectacular after a dismal April. Again, simple concept: shutoff of housing ATM is clearly starting to hurt the consumer.

  • Wal Mart (WMT) up 1.3% vs consensus of 1.4%. Without gasoline WMT sales would have been up only 1.1%.
  • Target up 5.8%
  • JC Penney (JCP) down 2%, see June sale down low single digits
  • Nordstron (JWN) up 6.3% vs estimates of less than 3%
  • Limited (LTD) up 2%
  • Ann Taylor (ANN) down 4.6%
  • Macy's (M) down 3.3%, sees June down as much as 2%
  • Saks up 37.5% due to promotional shift, see negative June same store sales.
  • Chicos (CHS) down less than expected 2.9%
  • Deb Shops up .2%
  • Dillard (DDS) down 2%
  • Wilsons (WLSN) down 25%

There's one done deal to report: Biomet accepts sweetened $11.4 bln takeover offer.

Looks like Dow Jones (DJ) shares may nudge higher: Inquirer owner has interest in Dow Jones.

With the CFO out at Monster (MNST) Finance chief at Monster resigns in shake-up, Goldman Sachs this morning says new CEO is putting his stamp on Monster - another indication the company will not be sold. GS rates MNST a neutral. UBS, however, thinks the new CFO could mean the company will be sold since he presided over the sale of Symbol. UBS recommends buying shares of weakness. Bank of America and Citi are defending the stock saying any weakness is a buying opportunity.

Every one just loves Apple (AAPL). Piper has lifted its target to $160 saying AAPL could sell upwards of 45 mln iPhones in by 2009!

Sumner Redstone tells CNBC he has not plans to take CBS or Viacom private. Click Here.

The housing fun and games continue: Drop in U.S. Home Sales, Prices Likely to Accelerate (Bloomberg).

One other big analyst note: Lehman downgraded Procter and Gamble (PG) to Equal Weight from Over Weight citing a slow down in revenue and margin growth.

Is Alvarion (ALVR) at takeover candidate? CIBC names possible Alvarion buyers.

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