MOST NOTEWORTHY: Comcast, Time Warner Cable, YRC Worldwide and Syniverse were today's noteworthy upgrades:
Soleil upgraded shares of Comcast (NASDAQ: CMCSA) and Time Warner Cable (NYSE: TWC) to Buy from Hold on improving fundamentals, as they believe the economic stimulus package should drive consumer demand in 2H08.
Stephens upgraded shares of YRC Worldwide (NASDAQ: YRCW) to Overweight from Underweight as they believe management is making meaningful changes.
Syniverse (NYSE: SVR) was raised to Overweight from Neutral at JP Morgan. The firm upgraded shares based on accelerating organic growth from consumer wireless data usage.
OTHER UPGRADES:
Deutsche Bank upgraded NYSE Euronext (NYSE: NYX) to Buy from Hold.
According to people familiar with the matter, Robert Verrone, one of the most zealous commercial real-estate lenders during the industry's boom, will leave Wachovia Corporation (NYSE: WB) within the next week, the Wall Street Journal reported.
WEB SITES:
Bloomberg reported that the Department of Justice is probing whether UBS AG (NYSE: UBS) helped clients evade American taxes. In an e-mailed statement, the firm said one senior bank employee was "briefly detained" by authorities.
Bloomberg also reported that Vallejo, California's city council voted to go into bankruptcy. Officials said that after talks with labor unions failed to win salary concessions from police and fire fighters, the city does not have enough money to pay its bills.
According to a rumor, TechCrunch reported that the Yahoo Inc (NASDAQ: YHOO) board of directors yesterday authorized Yahoo chairman Roy Bostock, rather than CEO Jerry Yang, to call Microsoft Corporation (NASDAQ: MSFT) CEO Steve Ballmer about re-starting negotiations.
U.S. stock futures were lower early Wednesday as investors, worried about inflation, await data on pending home sales and labor costs. Earnings news in focus this morning comes from tech bellwether Cisco Systems, which gave a cautious outlook, and from Walt Disney, which reported good results.
Despite starting the day on a down note, as oil futures remained high, U.S. stocks closed higher on Tuesday, mostly due to some reassuring comments made on a Fannie Mae (NYSE: FNM) conference call. The Dow industrials ended up 51 points, or 0.40%, the S&P 500 rose 10 points, or 0.77%, and the Nasdaq Composite finished 19 points, or 0.78%, higher.
Today investors will finally have some data to sink in their teeth. First quarter labor productivity and unit costs is out at 8:30 a.m. EDT. Economists expect productivity to rise 1.5% in the first quarter, but for unit labor costs to climb as well.
Also on the docket today are March pending home sales data to be released at 10:00 a.m. and which probably fell another 1%.
After that, weekly crude inventories are scheduled to be reported. Crude futures have held up near $122 a barrel despite the dollar advancing against the yen and the euro.
Cable operator Comcast (NASDAQ: CMCSA), a competitor of DirecTV (NYSE: DTV) and DISH Network (NASDAQ: DISH), issued its first-quarter earnings report on Thursday, and overall it was a satisfying set of data. Revenues grew 14% to $8.4 billion. Adjusted earnings per share increased 12% to $0.19 (on a reported basis, however, they did decline by 8%). One of my favorite things to look at is free cash flow -- Comcast scored here, as free cash jumped 59% to over $700 million.
I've never owned Comcast stock, and I'm on record as preferring content companies over distribution platforms. That being said, I do have to say that Comcast is a pretty good name in its industry, and that it seems to be doing quite well with its various offerings. Looking through the earnings release, I see that Comcast added close to half-a-million digital cable customers. The high-speed internet service and digital-phone service also seem to be performing (on an anecdotal level, it does feel like more and more people are taking up the triple-play suite that Comcast is constantly promoting). The programming segment, which includes channels such as E! and The Golf Channel, saw revenues increase 20% and it delivered a nice stream of cash flow. The company bought back almost 2% of its outstanding shares, and management plans to buy more under its repurchase initiative.
If you're looking to get in on the stock, I'd wait for a pullback after Thursday's 8% pop in share price. Like I say, I do like content companies, but Comcast might be an interesting long-term idea, since it will probably be the beneficiary of a desire on the part of media conglomerates such as Disney (NYSE: DIS), Time Warner (NYSE: TWX), and Viacom (NYSE: VIA) to engage more digital distribution via video-on-demand and to, in fact, experiment with day-and-date release (which I talked about in a recent piece). If this paradigm ever hits a critical mass, then Comcast should do well with it.
Disclosure: I own shares in Disney; positions can change at any time.
The market hasn't seemed to have fully made up its mind yet regarding Wednesday's Federal Reserve announcement about its policy. While stocks shot up immediately after the announcement, markets finished the Wednesday in the red. Still, this morning stocks futures edged higher as investors not only continued to digest the news, but awaited several more economic reports. The Bank of England saying the worst of the credit crisis may be over, definitely helps boost sentiment this morning.
Indeed, stocks ended Wednesday's session lower despite the Dow topping 13,000 briefly after the Fed's statement. It seemed also investors were divided, some preferring the Fed to signal clearly a pause in rate cuts so the dollar would gain strength and halt the rise in commodity prices and hence inflationary pressures. Meanwhile others were more concerned about the economy and perhaps preferred either a more positive language regarding the economy or indications of further measure. Regardless, the Dow Jones Industrial Average fell 11.81 points, or 0.09%, and the S&P 500 index shed 5.35 points, or 0.38%. The Nasdaq dropped 13 points, or 0.55%.
On the economic calendar for Thursday are the March figures for personal income and spending, which includes a key inflation measure. The ISM index for manufacturing activity also is on tap as well as construction spending. The weekly jobless claims is due before the opening bell, but April jobs report is due tomorrow, and that will likely affect markets the most.
PDUFA date for Genentech, Inc. (NYSE: DNA) and Roche Holding Ltd. (OTC: RHHBY)'s supplemental Biologics License Application for Herceptin for label expansion to include AC followed by docetaxel in treatment of adjuvant HER2+ breast cancer.
PDUFA date for Shire plc (NASDAQ: SHPGY) and New River Pharma's supplemental New Drug Application for Vyvanse (NRP-104) treatment of Attention Deficit Hyperactivity Disordre, or ADHD, in adult patients 18-55 years old; the drug is already approved for pediatric ADHD ages 6-12.
Verizon Communications Inc. (NYSE: VZ) to report Q earnings; conference call at 8:30am.
Tyson Foods, Inc. (NYSE: TSN) to report Q2 earnings; conference call at 9:00am.
Tuesday, April 29
Two-day FOMC meeting beginning at 8:30am.
PDUFA date for Merck & Co., Inc. (NYSE: MRK)'s New Drug Application for Cordaptive (MK-0524A) adjunctive therapy to diet for treating elevated LDL Cholesterol, low HDL Cholesterol and elevated triglycerides levels.
PDUFA date for Sucampo Pharmaceuticals, Inc. (NASDAQ: SCMP)'s supplemental New Drug Application for dose of 8mg treatment of Irritable Bowel Syndrome with Constipation; already approved for Chronic Idiopathic Constipation at 24ug dosage.
BP plc (NYSE: BP) to report Q1 earnings; conference call at 10:15am.
United States Steel Company (NYSE: X) to report Q1 earnings; conference call at 2:00pm.
AT&T (NYSE:T) and Verizon Wireless will use the new spectrum they recently bought at FCC auction to create ultra-fast wireless internet called 4G by some experts.
According toThe Wall Street Journal, "the so-called fourth-generation networks won't become available for at least three years." But, when it is, it could change the face of cellular service, cable service, and proposed WiMax deployments. The new wireless network may deliver broadband speeds at levels close to that which are available for consumers from companies like Comcast (NASDAQ:CMCSA). It may also ruin the plans of Sprint (NYSE:S) to build a national WiMax network to deliver fast wireless internet to devices including handsets and PCs.
It is rare that new technology offers such a sea change. At this point wireless cellular is still slow for data downloads and video. A faster service could un-tether handsets and PCs to be used almost anywhere with a large population. WiFi using cable signals could become obsolete as 4G wireless eliminates the need for being close to a WiFi base station to use broadband.
The change in wireless speeds could also launch a new generation of mini-PCs that is being pushed by Intel (NASDAQ: INTC). These light-weight devices are meant to do most of what a computer will but have a fraction of the weight and use low battery power.
Being in the cable or WiMax business is about to get tougher.
Douglas A. McIntyre is an editor at 247wallst.com.
The Wall Street Journal suggests that cable stocks, which have sold off sharply over the last three quarters, might now be a good investment. That is probably wrong. The paper says that "while cable stocks lately have bounced from bottoms hit earlier this year, they still are trading at 10-year lows along several key metrics."
But, cable has never had so much competition and that is likely to grow. Firms such as Comcast (NASDAQ:CMCSA) and Time Warner Cable (NYSE:TWC) are up against new fiber-to-the-home TV and broadband offerings from telecom companies, especially Verizon (NYSE:VZ). The phone firm's FiOS product is picking up customers and it has not been rolled out in most of the 18 million homes where Verizon has customers.
The phone companies have a special advantage. They can bundle cellular, broadband, TV, and landline service to individual customers and give them "one-stop shopping."
Cable is also up against new and improved products from satellite TV companies. Firms like DirecTV (NYSE: DTV) are adding a number of HD channels. Cable does not always have the bandwidth to put as many of these channels on its systems.
Cable stocks are down because competition is way up. Much of that has come recently and it is likely to get worse.
Douglas A. McIntyre is an editor at 247wallst.com.
Comcast Corp. (NASDAQ: CMCSA) stock is falling on reports that the company is in talks with Time Warner Cable (NYSE: TWC) to fund a new wireless Internet program. CMCSA would invest up to $1 billion in the project, a nationwide network using WiMax technology that would be operated by Sprint Nextel (NYSE: S) and Clearwire Corp. (NASDAQ: CLWR). Judging by this morning's action, investors do not seem very enthusiastic about the plan. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on CMCSA.
After hitting a one-year high of $29.41 in July, the stock hit a one-year low of $16.11 in January. This morning, CMCSA opened at $20.07. So far today the stock has hit a low of $19.30 and a high of $20.14. As of 12:15, CMCSA is trading at $19.59, down 0.95 (-4.6%). The chart for CMCSA looks bullish and steady, while S&P gives the stock a negative 2 STARS (out of 5) sell rating.
For a bearish hedged play on this stock, I would consider a July bear-call credit spread above the $22.50 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make an 11.1% return in 4 months as long as CMCSA is below $22.50 at July expiration. Comcast would have to rise by more than 15% before we would start to lose money.
Stocks: Beware the Sucker's Rally Have equities finally hit bottom, or is the market's recent rebound a trap for overeager investors? Stocks: Beware the Sucker's Rally
Stocks Tarnished By 'The Lost Decade' The stock market is trading right where it was nine years ago. The current market turmoil may result in a lost decade like the 1930s and the 1970s. Some believe the troubles are severe enough that the period of weakness isn't over. http://online.wsj.com/article/SB120649226977964203.html?mod=hpp_us_whats_news
Will Filing a Claim Boost Your Insurance Rates? When should you make an insurance claim? For many, the answer is a no-brainer: "Whenever I have an accident or suffer damage to my house or car." Unfortunately, the decision about whether to file a claim is rarely so simple. In some cases, making a claim may cause an insurance company to raise your rates. In other instances, the decision to file a claim could put your name into a database that makes it difficult to get or maintain coverage in the future. Certain insurance claims are more likely to trigger an increase in premiums. Which ones could cost you? Claims that boost your insurance rates -Bankrate.com
Top Suburbs to Live Well Forbes.com compiled a list of the best standard of living suburbs for the country's 15 largest cities with the help of NeighborhoodScout.com, a Rhode Island-based real estate research firm, which analyzed school quality, crime rates, income and education levels and homeownership rates for every incorporated and unincorporated town, city and village within 25 miles of the major city. Top Suburbs To Live Well - Forbes.com
Cable companies are at a disadvantage. Their telecom rivals can offer wireless service along with home broadband and TV. This "bundling" helps marketing to customers and keeping them once they sign up.
The big companies in the cable business are aiming to change that. Comcast (NASDAQ: CMCSA) and Time Warner Cable (NYSE: TWC) are working on a plan to fund a national WiMax service to be run by startup Clearwire (NASDAQ: CLWR) and Sprint (NYSE: S).
According toThe Wall Street Journal, "Under the plan the parties are reviewing, Comcast -- the largest cable operator with 24 million subscribers -- would put as much as $1 billion into the venture, with No. 2 operator Time Warner Cable adding $500 million." Intel (NASDAQ: INTC) and Motorola (NYSE: MOT) have already invested in Clearwire.
The deal may be cable's only way out of a bind that has telecom companies putting fiber in homes to offer a direct competition to cable TV. The fiber also provides for fast broadband.
If the deal goes through, it will usher in an entirely new generation of competition where the consumer may have several more choices for getting wireless voice and data services. With more players, there is usually active price competition. This will be good for customers, but could cut telecom company wireless margins.
Douglas A. McIntyre is an editor at 247wallst..com.
With reports all over the place yesterday that Ford Motor Co. (NYSE: F) was close to a deal with Tata Motors Ltd. (NYSE: TTM), it is no surprise the deal was announced this morning with Ford selling British automakers Jaguar and Land Rover to India's Tata for roughly $2 billion.
Comcast Corp. (NASDAQ: CMCSA) and Time Warner Cable Inc. (NYSE: TWC) are discussing a plan to fund a new wireless Internet venture that would be run by Sprint Nextel Corp. (NYSE: S) and Clearwire Corp. (NASDAQ: CLWR) and create a nationwide network using WiMax technology. This would provide faster wireless Web connection speeds for laptops and cell phones than the current networks, according to The Wall Street Journal.
Jabil Circuit may slip after the electronics maker cut its annual earnings guidance. Sprint stock is now up over 10% in premarket trading, while CLWR stock is up over 21%.
Motorola Inc. (NYSE: MOT) plans to separate its struggling handset business from its other operations. Caving to pressures from activist investor Carl Icahn to make changes, the AP reported that "Motorola said it will split the handset business from a separate company that will encompass its home and networks business, which sells TV set-top boxes and modems, and its enterprise mobility solutions, which sells computing and communications equipment to businesses." MOT stock is up over 5.7% in premarket trading.
The Wall Street Journal said the $19B privatization of Clear Channel Communications Inc (NYSE: CCU) was near collapse as the private-equity firms behind the deal and the banks financing it failed to resolve their differences over terms of the credit agreement, people familiar with the matter said.
The Wall Street Journal also reported federal regulators are handing out warnings to banks due to their exposure to development loans and commercial real-estate construction. Sources believe Corus Bankshares Incorporated (NASDAQ: CORS) is facing trouble in the near future due to increasing scrutiny by regulators and the fact that much of the fallout in the condo sector has yet to be felt by banks.
Some banks in the government-sponsored Federal Home Loan Banking system want to guarantee municipal infrastructure projects, the Financial Times reported, thus fulfilling the role traditionally taken by monoline insurance groups such as MBIA Inc(NYSE: MBI).
So, this is my answer to you guys. I'm also going to throw in Broadcom Corporation (NASDAQ: BRCM), AT&T Inc. (NYSE: T) and Ebay Inc. (NASDAQ: EBAY) because they all share the same horrifically downtrending charts!
I've already written about how you should avoid these kinds of stocks, but I know many of you are already down too much to even contemplate getting out now. Luckily for you, there now looks to be a glimmer of hope.
.gif){kind=logo}
MOST NOTEWORTHY: Comcast, Time Warner Cable, YRC Worldwide and Syniverse were today's noteworthy upgrades:
U.S. stock futures were lower early Wednesday as investors, worried about inflation, await data on pending home sales and labor costs. Earnings news in focus this morning comes from tech bellwether Cisco Systems, which gave a cautious outlook, and from Walt Disney, which reported good results.
Here are some highlights from this past week's 
Cable operator 
he market hasn't seemed to have fully made up its mind yet regarding Wednesday's Federal Reserve announcement about its policy. While stocks shot up immediately after the announcement, markets finished the Wednesday in the red. Still, this morning stocks futures edged higher as investors not only continued to digest the news, but awaited several more economic reports. The Bank of England saying the .gif){kind=logo}
The Wall Street Journal suggests that cable stocks, which have sold off sharply over the last three quarters, might now be a good investment. That is probably wrong. The paper 
.gif){kind=logo}
No matter how hard I promote my 
The Wal-Mart Weekly: Examining shareholder resolutions, Part 2
Earnings expectations for JC Penney, Nordstrom, Macy's, Abercrombie and others
Comfort Zone Investing: Financial stocks: Is the worst over yet?
