Hundreds of stories have been written over recent weeks about the plans of Microsoft (NASDAQ:MSFT) to buy Yahoo! (NASDAQ:YHOO) and Yahoo!'s plan to outsource its search to Google (NASDAQ:GOOG). At the end of the day, the are all speculation backed by very little fact.
More "news" about the deals came out overnight. According toBloomberg ,"Yahoo may agree to use Google's Web advertising software within a week." The Wall Street Journal says that "Microsoft Corp. late Thursday was leaning toward going hostile in its pursuit of Yahoo Inc."
All of this is great theater because both stories may be true and the entire situation could dissolve into a cauldron of competing companies, investment bankers, and corporate boards each competing for leadership in the web search market.
Who is served? In this case, for once, the shareholders. Yahoo! could take a deal to have Google handle its search and search advertising features. Depending on which analysis Wall Street wants to believe, this should save the portal hundreds of millions of dollars a year, if the government will approve an alliance between the two largest search companies.
On the other hand, Microsoft may raise its bid in an attempt to tempt shareholders to take $33 or $34 for Yahoo!. The company's shares traded around $20 before Redmond made its offer.
The media may have months of fun ahead of them A proxy fight could drag on and on as could a government decision about whether Yahoo! and Google can form a search venture.
At the very least, its sells newspapers.
Douglas A. McIntyre is an editor at 247wallst.com and the author of the Ten Stocks Under $10 newsletter.
MOST NOTEWORTHY: Motorola, Williams-Sonoma and Synchronoss were today's noteworthy downgrades:
Thomas Weisel downgraded Motorola Inc (NYSE: MOT) to Market Weight from Overweight based on the general uncertainty in the company's core markets and the likelihood that the spin off may not occur for several quarters.
Piper believes Williams-Sonoma Inc (NYSE: WSM) faces a challenging environment, and their checks reveal weakness at Pottery Barn. Shares were cut to Neutral from Buy.
ThinkPanmure downgraded Synchronoss Technologies Inc (NASDAQ: SNCR) to Accumulate from Buy. The firm expects a strong Q1 report but expects shares to sell-off following the Q1 conference call due to modest guidance and the lack of a major customer win announcement.
Goldman Sachs affirmed its "neutral" rating on Sysco (NYSE: SYY), saying "shares have been trading lower on concerns related to whether softening consumer spending is affecting casual dining and upper-end restaurants," according to the AP.
Thomas Weisel downgraded Motorola (NYSE:MOT) to "market weight" from "overweight" according toBriefing.com. The news service also reports that Morgan Stanley intiated Visa (NYSE:V) with a rating of "equal weight".
Credit Suisse (NYSE:CS) was raised to "peer perform" at Bear Stearns according to a report at 24/7 Wall St. The financial website also writes that Goodyear Tire & Rubber (NYSE:GT) was cut to "neutral " at JP Morgan.
Today's trading action was interrupted and then switched gears late morning after two unrelated pieces of worrisome news. Most importantly, I'd argue, reports surfaced that a Navy contracted ship fired warning shots at two fast-approaching Iranian vessels. Iran denied any hostilities over the incident (it must have been 'Fauxranians'). Oil shot up $2.43 to $118.49 per barrel. Also, consumer sentiment from University of Michigan (revised) was reported at a 25-year low at around the same time.
These are the unofficial closing prices today for major US index readings:
Baidu.com Inc., (ADR) (NYSE: BIDU) was a big gainer on a mixed day after earnings. The company beat earnings last night and saw an upgrade from Citigroup this morning. Shares rose 6% to $363.00 in the last minutes of trading.
During its first quarter last year, the company posted a $174 million dollar loss, or -94 cents a share, and going into today's earnings report Wall Street had been looking to see the company show Q1 earnings of 47 cents. So with the actual numbers, Goodyear is looking for a good day in today's action. Excluding one-time items, the company stated that it had earned 67 cents per share.
Currently the stock has moved up 4.5% in premarket trading following its earnings release.
PC World quoted on Thursday analysts claiming Apple Inc. (NASDAQ: AAPL)'s 3G iPhone will be announced June 9, the likely date of Apple CEO Steve Jobs' keynote at the company's Worldwide Developers Conference scheduled for June 9-13 in San Francisco. Other products announced then may include an updated Mac laptop and new iPod lines. The price of the 2.5G iPhone could then drop. Apple needs the 3G phone to help it reach the 10 million phone target for 2008 it has set.
According to Goodyear Tire & Rubber Co. (NYSE: GT), it has swung to a profit on higher revenue in the first quarter, reversing last year's loss by focusing on higher-priced tires and international markets. The company reported earnings of 67 cents per shares excluding items, handily beating estimates of 47 cents per share. GT shares are up 2.75% in premarket trading.
There are some boring businesses out there, and for me, selling tires is one of them. But Goodyear Tire & Rubber (NYSE: GT) is having an exciting day today while the major indexes wallow in another bearish posture, at least at the time of this writing.
For the fourth quarter, Goodyear increased its top line by 11% to $5.2 billion (in the previous year's quarter, a three-month strike affected sales to the tune of over $300 million). Net income from continuing operations came in at $0.27 per diluted share, a vast improvement over the $1.74 per-share loss observed in the year-ago period. For the full year, net sales increased 5% to $19.6 billion; net income from continuing operations was $0.65 per diluted share, against a loss in 2006 of $2.11 per diluted share.
Things seem to be going well for Goodyear. The company's cost-savings initiatives are on track, gross margin for the quarter was up, long-term debt and capital leases are down, and cash/equivalents stand at $3.5 billion. The stock is up 5.5% as I write this -- so, what's not to love?
I certainly don't want to rain on a parade here, but Goodyear just isn't my kind of company since it doesn't have a dividend yield at the moment. There are better old-economy ideas out there for me, ones that pay a dividend and seem like better bets. General Electric (NYSE: GE) comes to mind (it should, because I own it!). So, bravo to Goodyear for a well-executed period, but I won't be allocating investing dollars toward it; I know it's Valentine's Day and all, but I just don't feel the love.
Disclosure: I own shares of GE, and may buy more after this post.
10 Stocks With Big Insider Buying & Buybacks When people in the know in a company start purchasing large chunks of stock that is usually a good sign because they know better than anyone the in what is really going on. Here are ten that you should take a closer look at that are either seeing insider buying or are buying back shares. They include Amazon.com, US Steel, Move, Digital River, Verizon, GE and EMC. TheStreet.com : Top 10 Stocks With Big Insider Buying,
Not Tax Return = No Rebate Up to 20 million Americans who normally don't need to file returns must file this year to receive a rebate check. That's part of the fine print in the tax stimulus legislation that became the law of the land Wednesday. IRS offers details on stimulus checks, says nonfilers must file - MarketWatch
Love Your Money It's about your finances. How do you feel things are working out between you? Are your needs being met? See how to build a fulfilling long-term relationship with your finances. Love Your Money. It Will Love You Back - Kiplinger.com
Before you invest in any of these stocks today you better do your homework. Most have increased dramatically in price over the past year and are rated poorly by the Motley Fool. They include Crocs, Amazon.com, Google, Goodyear, Blue Nile & XM Satellite Radio.
These techies are worth tens of millions of dollars, sometimes more, at an age when many others are just starting to figure out what to do with their lives. The Internet has greatly accelerated the wealth creation phenomenon, producing a larger breed of multimillionaires even younger and richer than in the past. They are happy to be wealthy, of course, but many of these baby-faced technology tycoons often seem indifferent to the buying power of their money, at least at this stage of their lives. Instead, nearly all of them have chosen to throw themselves back into a start-up, not so much because they want a spectacular new home or a personal jet - though many of them do - but because they are in a competition with themselves and one another.
Working through the endless (and faceless) customer-service-rep phone trees, getting put on hold for what seems like hours, repeatedly complaining to unresponsive companies. At some point, almost everyone who has dealt with a customer-service issue has come close to reaching their breaking point. If calls to customer service go nowhere, take your complaint to the next level. Try thse five strategies to get a company's attention -- and get your dispute resolved.
It seems kids with lots of money can be challenging as far as parenting is concerned. The parents want the kids to grow up and have a lifestyle like theirs, but sometimes the kids aren't as motivated. The rich tend to supplement education with expensive enrichment activities, like music, riding and dance lessons. They take more vacations and tend to a lot of the kids values are more frequently left up to others to instill.
According to lore, burying a statute of St. Joseph in the yard of a home for sale promises a prompt bid. With the worst housing market in recent years, the Catholic saint is enjoying a flurry of attention from desperate home-sellers.
Meet Frank Furbeck & Trudi Morris. The are an engaged couple from Illinois who are state employees that don't live extravagntly or poorly. They carry no credit card, home or auto debt and saving all they can so Frank can retire in his early 50's. Will they get there? See what an expert says.
Upside: A water view, beautifully manicured grounds and a slew of famous neighbors, for a fraction of what local condos cost. Downside: You're dead. No, you may not be able to live among the rich and famous, but you can afford to be dead among them. Here are some of the priciest cemeteries in America to be buried in.
U.S. stock futures were lower this morning, indicating a lower start for U.S. stocks ahead of the Federal Reserve's policy meeting and as investors grow more concerned about the Fed's decision and worry it may not deliver the much anticipated rate cut businesses wish for.
Yesterday, U.S. stocks continued their advance heading into the Fed's next rate decision. The Dow industrials rose 63 points, or 0.46%, the Nasdaq Composite added 13 points, or 0.47%, and the S&P 500 rose 5 points, or 0.37%.
Not much economic data is due out today except for October consumer confidence to be released at 10 a.m. EDT. Oil prices dropped to below $93 a barrel today from the record set overnight as the disruption of a fifth of the oil production by Mexico's state oil company is now seen as only temporary.
What will be at the center of attention the next two days is the Fed's two day policy meeting starting today. Policy makers will discuss interest rates and the economic outlook and will announce their decision tomorrow. While many in the market expect the central bank to lower rates by a quarter- to half a percentage point, the Wall Street Journal reported that the Fed is considering [subscription] a quarter-point rate and no cut at all.
The dollar continued to decline and hit a 26-year low against the British pound as the Bank of England keeps interest rates at a six-year high, while the Fed may cut rates tomorrow. The dollar's weakness may be a consideration in the Fed's decision. Other considerations would no doubt be problems in the mortgage markets and the slump in the housing market. The S&P releases its August Case-Schiller home price index this morning. Yet another consideration would be possible financial markets turmoil and the risks involved that could lead to a recession as some economists say. The debt crisis is far from over according to them.
Overseas, Asian markets closed mostly lower, but Hong Kong and Shanghai gained. European markets were also lower.
Reporting today are Dow component Procter & Gamble (NYSE: PG), as well as Liz Claiborne (NYSE: LIZ) and Goodyear Tire (NYSE: GT).
Update: Procter & Gamble (NYSE: PG) reported that first-quarter profit rose 14% on strong sales growth across nearly all regions. Sales rose 8% to $20.2 billion. Excluding a German tax benefit of 2 cents per share, the company earned 90 cents per share in the latest period. Analysts were expecting a profit of 89 cents per share on revenue of $20.23 billion.
The Wall Street Journal reported Google (NASDAQ: GOOG) plans to unveil within the next two weeks a proposal to finally bring the Google-powered cell phones to market by the middle of 2008.
When they are in the market for electrical and industrial construction products and MRO supplies, many of the biggest firms around go to an outfit that represents some 29,000 suppliers and offers more than a million products. It serves about 110,000 customers worldwide.
WESCO International (NYSE: WCC) is a leading distributor of electrical construction products and electrical/industrial maintenance, repair and operating (MRO) supplies. The firm operates seven automated distribution centers and approximately 400 full-service branches around the world. Clients include ConAgra Foods (NYSE: CAG), Goodyear Tire & Rubber (NYSE: GT) and Tyson Foods (NYSE: TSN).
The company pleased investors last week, when it announced that it had completed a $400 million stock repurchase program and had authorized a new program for the same amount. CIBC World Markets and Bank of America Securities subsequently initiated coverage of the stock with "buy" ratings. The stock popped on the news and has since moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.
e-card pwn -- I don't even open e-cards anymore since the spammers adopted them as a way of invading my PC, but someecards.com has caused me to change my mind. Instead of the usual meaningless phrases like 'Thinking of you', someecards carry relevant messages, such as
Courtesy hello -- I really enjoyed awkwardly waving at you
Graduation -- Congratulations on getting through the easiest part of your life
Business – Just getting on your radar because I may need something from you soon
Robot spy blimp – According to Lewis Page of The Register, the U.S. Army's $11 million order with Telford Aviation could be for the company's 30,000 cubic foot unmanned blimp, the Skybus 30K. I presume the spy blimp will be used to monitor football games and other sporting events for terrorists. You suppose the Army will offer naming rights to Goodyear (NYSE: GT)? Spiderpig hoax – Those millions of you that have seen Fox's (News Corp, NYSE: NWS) The Simpsons Movie will remember Homer's pet, Spiderpig. Today we learn from Offbeat Enough that Oli Young, who had promised to name his second child Spiderpig if 100,000 people joined his Facebook group, has reneged on this promise. Apparently, his wife is not even pregnant, and I'm pretty sure she wasn't consulted beforehand. Spiderpig is about the only name that doesn't appear in any of the baby name books I've seen.
Fishy Spas --Thanks to Boingboing.net for a story about an ancient middle-Eastern skin treatment that has become popular in China. There, those with skin ailments are immersing themselves in pools filled with Doctor Fish, a minnow-sized fish that feeds on the affected and dead skin, in essence nibbling the patient to health. Those with really serious cases might toss in a couple of piranhas to speed the process. How long before this becomes an American fad? Are you listening, Estee Lauder (NYSE: EL)? Johnson & Johnson (NYSE: JNJ)?
Although they spent most of the day in the green the indexes gave up ground through most of the session to close just in the red.
The NYSE had volume of 3.6 billion shares with 1,612 shares advancing while 1,706 declined for a loss of 6.18 points to close at 9,428.86. On the NASDAQ, 2.2 billion shares traded, 1,426 advanced and 1,685 declined for a loss of -2.65 to 2,542.24.
EMC Corporation (NYSE: EMC) rose $1.33 (8%) to $19.05; ahead of it's subsidiary VMware making its debut on the NYSE tomorrow in an IPO that analysts are predicting will be big. EMC will retain 90% of the shares. This is likely the reason for the active calls as EMC Corp. (NYSE: EMC) saw heavy volume on the August 19 calls (EMCHT) with over 56,000 options trading.
In options there were 5.4 million puts and 5.8 million calls traded for a put/call open interest ratio of 0.92. The CBOE Volatility Index has been high closing today at 26.57. This is the fear indicator of the market. Not only is the index up, but options on the index are high with the CBOE S&P 500 Volatility Index (NASDAQ: $VIX) moving volume on the August 25 calls (VIXHE) with over 35,000 contracts.
Other stocks with active options include State Street Boston (NYSE: STT) saw heavy volume on the November 75 calls (STTKO) with over 60,000 options trading. Most of the active puts were on the indexes and the iShares Russell 2000 ETF (NYSE: IWM) had volume on the August 78 puts (IOWTZ) with over 86,000 options trading.
Kevin Kersten is an Options Analyst with InvestorsObserver.com. Disclosure note: Mr. Kersten owns and or controls a diversified portfolio of long and short positions that may include holdings in companies he writes about.
Hundreds of stories have been written over recent weeks about the plans of Microsoft (NASDAQ:MSFT) to buy Yahoo! (NASDAQ:YHOO) and Yahoo!'s plan to outsource its search to Google (NASDAQ:GOOG). At the end of the day, the are all speculation backed by very little fact..gif){kind=logo}
Here are some highlights from this past week's 
U.S. stock futures were lower this morning, indicating a lower start for U.S. stocks ahead of the Federal Reserve's policy meeting and as investors grow more concerned about the Fed's decision and worry it may not deliver the much anticipated rate cut businesses wish for.
and had authorized a new program for the same amount. CIBC World Markets and Bank of America Securities subsequently initiated coverage of the stock with "buy" ratings. The stock popped on the news and has since moved into a bullish "flag" consolidation pattern. Prices frequently exit flags moving in the same direction they were traveling when they entered them. In this case, that would be to the upside.
e-card pwn -- I don't even open e-cards anymore since the spammers adopted them as a way of invading my PC, but 
Although they spent most of the day in the green the indexes gave up ground through most of the session to close just in the red. 
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?
