Dow Breaks 13,300
Posted by Eddy Elfenbein on May 1st, 2012 at 11:19 am

Thanks to the ISM report, the Dow has rallied above 13,300. If today’s market holds up, this will be the highest close since 2007.

April ISM = 54.8
Posted by Eddy Elfenbein on May 1st, 2012 at 10:11 am

The economic recovery is officially 34 months old. It’s not strong but it may last a little while longer. Today’s ISM number came in at 54.8 while Wall Street was expecting 53.0.

Here’s some context: The ISM has fallen between 54.0 and 56.0 a total of 104 times. Just three have come during official recessions.

The strong ISM caused a quick rally on Wall Street and we’re back above 1,400.

Here’s a look at how often a recession has occurred by ISM range:

Harris Earns $1.39 Per Share
Posted by Eddy Elfenbein on May 1st, 2012 at 8:47 am

Harris Corp had news-filled earnings report. Let’s start with the good news. The company reported earnings of $1.39 per share which was six cents more than expectations.

Harris also narrowed its full-year guidance by five cents at each end. The new range is $5.15 to $5.25 per share. The bad news is that they lowered their 2012 revenue guidance from $6 billion to $5.45 billion. Harris offered initial EPS guidance for 2013 of $5.10 to $5.30 which isn’t very impressive.

Harris said that it will sell its broadcast business in an effort to focus on core businesses that won’t be impacted by lower defense spending. This is a smart move since the broadcast business has been a drag on earnings for Harris.

The divestiture will result in at $407 million after tax charge to the company, which resulted in a reported loss of $255 million in the third quarter.

“The decision to divest Broadcast Communications resulted from a thorough review of our business portfolio, which determined that the business is no longer aligned with the company’s long-term strategy,” said William M. Brown, president and chief executive officer. “The plan to sell these assets supports our disciplined approach to capital allocation, and we intend to use the proceeds to return cash to shareholders and invest in growing our core businesses.”

Morning News: May 1, 2012
Posted by Eddy Elfenbein on May 1st, 2012 at 5:44 am

China Manufacturing Growth Accelerates, PMI Shows

Aussie Hit By RBA Cut, U.S. Dollar Also Struggles

US Names China, Dozen Other Countries On Intellectual-Property Watchlist

Wind’s $168 Billion North Sea Boom Lures Oil Industry

Fed Said to Criticize Banks on Risk Models in Stress Test

Occupy Wall Street Plans Global Protests in Resurgence

Lloyds Bank Post Small Profit, Cautions On Economic Outlook

Delta Buys Refinery to Get Control of Fuel Costs

BP Profit Falls as Production Lags

Microsoft Hooks Onto Nook

RIM Woos App Developers in $13 Billion Market

Coke Says Not In Talks to Buy Monster Beverage

Imperial Tobacco Profit Gain Matches Estimates on Prices

Jeff Carter: MF Global Conspiracy Theory That Might Not Be Far Off

Howard Lindzon: Momentum Monday…The Law of Large Numbers and Why Apple is Stalling

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Earnings Beats With Multiple Expansion
Posted by Eddy Elfenbein on April 30th, 2012 at 9:45 am

As I’ve noted before, this has been a pretty good earnings season. More than 70% of earnings reports have topped estimates. The market, however, has largely failed to respond. The stock market slid during the first half of April. All told, $770 billion in market value was erased.

The stock market continues to be undervalued versus its long-term average.

The S&P 500 slid last year to a two-year low of 11.9 times reported profit after the Fed’s second round of quantitative easing ended, Europe’s crisis intensified and American lawmakers debated raising the federal debt limit. While the gauge’s multiple has since rebounded to 14.3, it’s still below the six- decade historical average of 16.4, Bloomberg data show.

That means that the S&P 500 can rally close to 15% and still be inline with the long-term average.

Q1 Earnings Calendar
Posted by Eddy Elfenbein on April 30th, 2012 at 7:48 am

Morning News: April 30, 2012
Posted by Eddy Elfenbein on April 30th, 2012 at 5:49 am

Europe’s Anti-Austerity Calls Mount as Elections Near

Euro-Region Inflation Slowed in April as Oil Gains Weakened

S&P Takes Negative Rating Action On 16 Spanish Banks

Data Deepen Spanish Gloom

In China, Foreign Films Meet a Powerful Gatekeeper

U.S. Stocks Appear To Lose Their Fizz

AB InBev Sales, Profit Increase on Bud Light Platinum

How Apple Sidesteps Billions in Taxes

Hon Hai Net Misses Estimates on Higher Costs, Unit Losses

Adidas Group Announces Preliminary First Quarter Results and Increases Its 2012 Financial Outlook

Report Says Pepsi in Deals With IHOP and Applebee’s

Terra Firma Buys Four Seasons Health for 825 Million Pounds

Wal-Mart’s U.S. Expansion Plans Complicated by Bribery Scandal

Phil Pearlman: Trading in the Wild

Epicurean Dealmaker: Can’t Buy Me Love

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Frontline: Money, Power & Wall Street
Posted by Eddy Elfenbein on April 27th, 2012 at 11:48 pm

Here’s the second installment of Frontline’s series on the financial crisis.

Watch Money, Power and Wall Street: Part Two on PBS. See more from FRONTLINE.

Watch Money, Power and Wall Street: Part Two on PBS. See more from FRONTLINE.

Watch Money, Power and Wall Street: Part Two on PBS. See more from FRONTLINE.

Watch Money, Power and Wall Street: Part Two on PBS. See more from FRONTLINE.

Watch Money, Power and Wall Street: Part Two on PBS. See more from FRONTLINE.

Bernice Johnson Reagon – Will The Circle Be Unbroken
Posted by Eddy Elfenbein on April 27th, 2012 at 3:40 pm

Moog Plunges Then Rallies
Posted by Eddy Elfenbein on April 27th, 2012 at 1:10 pm

Check out the action in Moog ($MOG-A) today. I thought this morning’s earnings report was pretty good. The market, however, disagreed as the stock opened down 10.44%.

Since then, the market suddenly had a change of heart. Moog has rallied to as high as $42.79 which is a gain on the day of 4.2%. From trough to peak, that’s a gain of exactly $6 or 16.3%.