Stock Market Review

7 Stocks you need to know for Wednesday

Warning that selling in the stock was "overdone", Goldman Sachs (GS | Quote | Chart | News | PowerRating) suggested that Apple (AAPL | Quote | Chart | News | PowerRating) should reach $145 per share over the intermediate term.

Representative of the bullishness in tech stocks on Tuesday, Research in Motion (RIMM | Quote | Chart | News | PowerRating) gained more than 10%, largely retracing Monday's losses.

Gapping down more than 9 points on the open, shares of Wachovia (WB | Quote | Chart | News | PowerRating) nevertheless rallied all day on Tuesday, finishing the session up more than 90%.

Huntsman (HUN | Quote | Chart | News | PowerRating) soared by more than 70% on news that a judge had ordered Hexion Specialty Chemical Company to honor a $6.5 billion buyout agreement to purchase the chemical company.

Bank of America (BAC | Quote | Chart | News | PowerRating) was one of the few Dow stocks to have a positive September. BAC was up more than 15% on Tuesday.

Shares of Sovereign Bank (SOV | Quote | Chart | News | PowerRating) soared by more than 80% on news that the savings and loan was replacing its CEO.

Morning News

Futures are pointing to a much higher open

In Japan the Nikkei 225 closed down 4.1%

In Hong Kong the Hang Seng closed up 0.75%

European markets are trading higher

The Senate will try to revive Bank-Rescue plan with a vote

ICSC-UBS Store Sales (wk9/27 , 2008)

Redbook (wk9/27 , 2008)

NAPM-Chicago (Sep , 2008)

Consumer Confidence (Sep , 2008)

Crude Oil is $97.35 per barrel

Gold is $900 per ounce

Stock Market Review

The Bear is Back on Wall St.

7 Stocks you need to know for Tuesday

Citigroup (C | Quote | Chart | News | PowerRating) announced that it was taking over the banking business of Wachovia (WB | Quote | Chart | News | PowerRating) for $2 billion in stock.

Reporting earnings Tuesday morning before the market opens, Pepsi Bottling Group (PBG | Quote | Chart | News | PowerRating) is expected to announce EPS of 1.04.

One of the very few stocks in the S&P 500 to move higher on Monday was Campbell Soup (CPB | Quote | Chart | News | PowerRating), which still gained less than half of one percent.

Among the biggest decliners in the Dow industrials, American Express (AXP | Quote | Chart | News | PowerRating) slid by more than 12%.

Apple (AAPL | Quote | Chart | News | PowerRating) was down by more than 13% less than an hour into trading on Monday after a Morgan Stanley (MS | Quote | Chart | News | PowerRating) analyst suggested slower sales going forward. The stock finished down more than 17%.

Pre-Market Gappers

Gapping up:

ING +3.1%...

Gapping down:

WB -49.8%, RBS -21.6%, XING -20.1%, LYG -18.9%, UBS -14.9%, BHP -8.1%, RTP -7.7%, AAPL -6.4%, NOK -6.3%, BP -5.8%, RDS.A -5.6%, TOT -5.6%, MS -5.1%, RIO -5.0%, LLY -3.9%, RIMM -3.8%, AIG -3.5%.

Upgrades and Downgrades

Upgrades:

KeyBanc upgrades BorgWarner (BWA 32.46) to Buy from Hold and sets a $46 tgt, as they believe that robust demand for the co's products will continue to drive revenue growth and margin expansion, resulting in double-digit EPS growth... Oppenheimer upgrades National City (NCC 3.71) to Outperform from Perform and sets a $5 tgt, based on valuation and believe the bank isn't seeing a mass exodus of despositors while their loan portfolio is more diversified and better quality than WaMu's... UBS upgrades Nortel (NT 2.54) to Buy from Neutral... Wachovia upgrades Brookfield Infrastructure Partners LP (BIP 15.40) to Outperform from Market Perform... Piper Jaffray upgrades Xilinx (XLNX 23.98) to Buy from Neutral... J.P Morgan upgrades Telesp Part Adr (TSP 23.90) to Neutral from Underweight.

Downgrades:

Morgan Stanley downgrades Apple (AAPL 128.24) to Equal Weight from Overweight... RBC downgrades Apple (AAPL 128.24) to Sector Perform from Outperform. Miscellaneous: Oppenheimer initiates China Mass Media Int'l Advertising (CMM 4.92) with an Outperform and sets an $8.50 tgt, based on a proven attractive partner to China's dominant TV network, China's ad market that is large and fast growing, and expansion into commercial production that creates a potential growth opportunity.
Merriman downgrades Bankrate (RATE 39.12) to Neutral from Buy, based on concerns about display advertising trends industry-wide, the co's above-average exposure to the financial vertical, and shares that trade in-line with peers... Merriman downgrades TheStreet.com (TSCM 6.01) to Neutral from Buy, as they believe near-term expectations appear relatively safe but FY09 could be at risk... Baird downgrades Monaco Coach (MNC 2.30) to Neutral from Outperform, Thor Industries (THO 26.80) to Underperform from Neutral, and Winnebago Industries (WGO 13.85) to Underperform from Neutral, based on valuation and checks that suggest fundamentals remain dreadful, including weak demand, failing dealers/manufacturers, tighter credit, and no appetite for inventory... Credit Suisse downgrades Digital River (DRIV 36.03) to Neutral from Outperform... JP Morgan downgrades Arch Capital (ACGL 73.40) to Neutral from Overweight... Deutsche Bank downgrades DISH Network (DISH 24.55) to Hold from Buy and lowers their tgt to $31 from $51, following news that AT&T won't be renewing its five-year partnership with DISH, instead choosing to partner with DirecTV... Citigroup downgrades Starwood Hotels & Resorts (HOT 30.27), Sunstone Hotel Investors (SHO 14.04) and Host Hotels & Resorts (HST 13.95) to Hold from Buy, as they feel tighter credit could result in a more difficult economic environment for the cos than previously anticipated... Citigroup downgrades Strategic Hotels & Resorts (BEE 9.00) to Sell from Hold and lowers their tgt to $6 from $9, based on valuation, balance sheet leverage that is high, and a possible dividend reduction next year. Citigroup downgrades Sadia (SDA 9.50) to Sell from Buy.

Morning News

Futures are pointing to a much lower open

Futures lower on new signals the crisis is spreading more

In Japan the Nikkei closed down 1.25%

In Hong Kong the Hang Seng closed down 4.3%

European markets are down almost 3% across the board early on

Personal Income and Outlays (Aug , 2008)

Farm Prices (Sep , 2008)

Compromise vote on $700 Billion rescue plan awaits

Crude Oil is down $3.50 per barrel and is $103.50 per barrel

Gold is trading down and is $885 per ounce

7 Stocks you need to know for Monday

Treatments for anemia from Amgen (AMGN | Quote | Chart | News | PowerRating) and Johnson & Johnson (JNJ | Quote | Chart | News | PowerRating) came under greater regulatory scrutiny after a German study linked the Johnson & Johnson anemia drug to increased risk of death in stroke patients.

Falling revenues due to the housing slump lead to a massive loss for the third quarter for K.B. Homes (KBH | Quote | Chart | News | PowerRating), which was actually up on the day on Friday.

JP Morgan Chase & Company (JPM | Quote | Chart | News | PowerRating) bought what was left of Washington Mutual (WM | Quote | Chart | News | PowerRating) late on Thursday as part of the biggest bank failure in U.S. history.

Walgreens (WAG | Quote | Chart | News | PowerRating) reports quarterly earnings Monday before the market opens. Analysts are expecting EPS of 0.45.

Citigroup (C | Quote | Chart | News | PowerRating) was up more than 4% late in trading on Friday, undeterred by the Wall Street bailout debate in Washington.

VIDEO - Symmetrical Triangles (neutral)

Symmetrical Triangles (neutral) has been added to the Leavitt Brothers chart patterns video collection.

Bullish Chart Patterns

VIDEO - Symmetrical Triangles
VIDEO - Ascending Triangles
VIDEO - Flags
VIDEO - Wedges
VIDEO - Pennants
Video - Rectangles
Video - Cup n Handle
Video - Head n Shoulders
Video - Trendlines

Neutral Chart Patterns
Video - Symmetrical Triangles
Video - Rectangles

Bearish Chart Patterns

VIDEO - Symmetrical Triangles
VIDEO - Descending Triangles
VIDEO - Flags
VIDEO - Wedges
VIDEO - Pennants
VIDEO - Rectangles
Video - Head n Shoulders
Video - Trendlines

http://www.leavittbrothers.com/

Pre-Market Gappers

Gapping up:

TIBX +8.5%, JPM +2.4%, SPWR +2.3%, GFI +1.6%, FSLR +1.4%...

Gapping down:

WM -79.9%, RIMM -20.9%, FNM -20.6%, NED -19.4%, NPSP -16.0%, FRE -11.3%, MS -11.0%, BCS -7.0%, ARP -6.0%, AGU -5.8%, AIG -5.3%, ABK -5.1%, BHP -4.6%, AAPL -4.5%, NNN -3.1%, WRE -1.5%, GOOG -1.5%.

Upgrades and Downgrades

Upgrades:

RIMM

Downgrades:

ISIL, GD, MNT, CAJ, TRA

AGU, CF

Morning News

Futures are pointing towards a much lower open

In Japan the Nikkei 225 closed down .95%

In Hong Kong the Hang Seng closed down 1.33%

European markets are trading down

JP Morgan buys out Washington Mutual

Gross Domestic Product (Q2f , 2008)

Corporate Profits (Aug , 2008)

Crude Oil is $105.35 per barrel

Gold is $878.50 per ounce

Consumer Sentiment (Sep , 2008)

Stock Market Review

7 Stocks you need to know for Friday

Sales from the Olympics continued to support earnings at Nike Inc. (NKE | Quote | Chart | News | PowerRating), which beat analyst estimates by more than a dime this week.

Research in Motion (RIMM | Quote | Chart | News | PowerRating) reported quarterly earnings Thursday after the close that missed analyst expectations by one cent.

Among the financial stocks moving higher on Thursday were JP Morgan Chase & Company (JPM | Quote | Chart | News | PowerRating), up more than 7% on the day. Among those moving lower were Washington Mutual (WM | Quote | Chart | News | PowerRating) which continues to search for a bidder for all or part of the savings and loan. WaMu was down more than 25%.

McDonalds (MCD | Quote | Chart | News | PowerRating) announced that it was increasing its quarterly dividened by 33% to 50 cents per share.

Pilgrim's Pride Corporation (PPC | Quote | Chart | News | PowerRating) plunged by nearly 40% as the company announced that it would report significant losses for its fourth quarter.

Weakness in its financial services division led General Electric (GE | Quote | Chart | News | PowerRating) to lower its profit forecast and suspend its share buyback program.

Pre-Market Gappers

Gapping up:

FNM +37.4% , PCOP +33.6% , FRE +27.0% , TMTA +18.5% , WM +17.3% , ABK +15.9% , NKE +4.2% , BZH +4.1% , SEPR +3.5% , SMS +2.8% , MKC +1.4% , MKC +1.4%...

Gapping down:

COF -7.6% , FIF -6.5% , GE -5.1% , RHT -3.1%.

Upgrades and Downgrades

Upgrades:

KRG

Downgrades:

FMBI, DLB, CCL, IBKC, FFIN

PRSP, NFP, CBY, LYG, BWLD

Morning News

Futures are pointing to a higher open

In Japan the Nikkei 225 closed down 0.90%

In Hong Kong the Hang Seng closed down .15%

European markets are trading higher

GE cuts earnings forecast, suspends buyback

Durable Goods Orders (Aug , 2008)

Jobless Claims (wk9/20 , 2008)

New Home Sales (Aug , 2008)

EIA Natural Gas Report (wk9/19 , 2008)

Money Supply (wk9/15 , 2008)

Crude Oil is $104.50 per barrel

Gold is $893.75 per ounce

Stock Market Review

7 Stocks you need to know for Thursday

Research in Motion (RIMM | Quote | Chart | News | PowerRating) reports quarterly earnings Thursday after the market closes. Analysts are expecting EPS of 0.87.

Standard and Poor's downgraded the credit rating of Washington Mutual (WM | Quote | Chart | News | PowerRating) again on Wednesday. The stock was down more than 20% on the day.

The biggest loser in the Dow industrials on Wednesday was American International Group (AIG | Quote | Chart | News | PowerRating), which lost more than 29%.

Goldman Sachs (GS | Quote | Chart | News | PowerRating) is getting a $5 billion investment from Warren Buffett's Berkshire Hathaway.

Reporting earnings Thursday morning after the bell, Accenture (ACN | Quote | Chart | News | PowerRating) is expected to announce earnings per share of 0.66.

Broadcom (BRCM | Quote | Chart | News | PowerRating) rallied by more than 4% after a judge's ruling that Qualcomm (QCOM | Quote | Chart | News | PowerRating) had infringed on patents owned by Broadcom.

I will return on Thursday

I will return on Thursday

Stock Market Review

7 Stocks you need to know for Wednesday

T-Mobile introduced the first mobile phone that runs on Android, software created by Google Inc. (GOOG | Quote | Chart | News | PowerRating), on Tuesday.

Down more than 7% on the day, General Motors (GM | Quote | Chart | News | PowerRating) was the biggest loser in the Dow industrials on a percentage basis.

Reporting earnings Wednesday morning after the market opens, Nike Inc. (NKE | Quote | Chart | News | PowerRating) is expected to announce quarterly earnings of 0.92.

Predictions of a slow holiday shopping season encouraged traders to sell shares of Amazon.com (AMZN | Quote | Chart | News | PowerRating), which was down more than 3% on Tuesday.

Down more than 4%, General Electric (GE | Quote | Chart | News | PowerRating) was among the companies added to the Securities and Exchange Commission's temporary short sale ban list.

Bristol-Myers Squibb (BMY | Quote | Chart | News | PowerRating) raised its offer for Imclone Systems (IMCL | Quote | Chart | News | PowerRating) to $62 per share on Tuesday.

Pre-Market Gappers

Gapping up: CC +11.8%, COMS +10.5%, IMCL +6.5%, ABX +2.3%, AEM +1.6%... Gapping down: RTP -11.9%, WM -9.6%, LYG -8.0%, HGR -6.2%, GFI -4.6%, BHP -4.5%, CEF -4.0%.

Upgrades and Downgrades

Upgrades:

NVS

Downgrades:

DXPE, CC, SVVS, UBSH, IBKC, FARO

STI, MTB, RDS.B, RF, ZION, SNY, FIG

HTBK, CACH, SCUR

Morning News

Futures are pointing to a lower open

In Hong Kong the Hang Seng closed down 3.9%

European markets are trading down

ICSC-UBS Store Sales (wk9/20 , 2008)

Redbook (wk9/20 , 2008)

State Street Investor Confiden (Sep , 2008)

Crude Oil is $107 per barrel

Gold is $900 per ounce

Stock Market Review

7 Stocks you need to know for Tuesday

Microsoft (MSFT | Quote | Chart | News | PowerRating) announced that it was both increasing its share buyback program to $40 billion as well as raising its dividend by 18%.

After petitioning the Federal Reserve, both Morgan Stanley (MS | Quote | Chart | News | PowerRating) and Goldman Sachs (GS | Quote | Chart | News | PowerRating) have been granted status as bank holding companies. The move marks the end of the independent investment bank era on Wall Street.

Indicative of the strength in gold mining stocks on Monday, Barrick Gold Corporation (ABX | Quote | Chart | News | PowerRating) ws up more than 9%.

Reporting earnings on Wednesday after the market closes, Nike Corporation (NKE | Quote | Chart | News | PowerRating) announced on Monday a plan to buy an additional $5 billion of its own stock.

Also on the share buyback bandwagon on Monday was Hewlett-Packard (HPQ | Quote | Chart | News | PowerRating), which announced a plan to increase their share buyback program by an additional $8 billion.

Homebuilder Lennar (LEN | Quote | Chart | News | PowerRating) reports earnings Tuesday morning before the market opens. Analysts are expecting a loss of 0.52 per share.

Pre-Market Gappers

Gapping up:

AZ +4.8%, APH +3.7%, BHP +2.3%, BP +1.7%, RDS.A +1.1%...

Gapping down:

ABK -26.9%, BCS -9.8%, UBS -8.7%, MBI -8.5%, LYG -5.0%, BAC -3.9%, MER -3.7%, MS -3.7%, JPM -2.8%, WFC -2.5%, GS -1.4%.

Upgrades and Downgrades

Upgrades:

Merrill Lynch upgrades Logitech (LOGI 24.78) to Neutral from Underperform... RBS upgrades UBS (UBS 21.45) to Buy from Hold... Merrill Lynch upgrades Navios Maritime (NM 7.46) to Neutral from Underperform... UBS upgrades Lloyds TSB (LYG 22.52) to Neutral from Sell... Citigroup upgrades GFI Group (GFIG 6.11) to Hold from Sell... Baird upgrades Otter Tail (OTTR 30.01) to Outperform from Neutral and maintains their $41 tgt, based on valuation and expect well-above-average EPS growth to result in attactive total returns fueled by multiple major utility infrastructure projects ans significant wind tower business expansion supported by state renewable generation mandates... Wachovia upgrades Teva (TEVA 46.07) to Outperform from Market Perform... Wachovia upgrades Watson Pharma (WPI 28.29) to Outperform from Market Perform... Merrill upgrades TransCanada (TRP 35.79) to Buy from Sell.

Downgrades:

Friedman Billings downgrades Sovereign Bancorp (SOV 10.23) to Underperform from Market Perform and lowers their tgt to $6 from $9, following the co's announcement to sell all $750 mln of CDOs and believe the co is on the brink of "well capitalized"... J.P Morgan downgrades Penson Worldwide (PNSN 15.60) to Neutral from Overweight... J.P Morgan downgrades Barclays (BCS 32.50) to Underweight from Neutral... Oppenheimer downgrades Watsco (WSO 58.49) to Underperform from Perform based on valuation, and potential for negative revisions to 2009 EPS consensus, and unfavorable trends in late 3Q08... Oppenheimer downgrades Airgas (ARG 59.98) to Perform from Outperform based on valuation. Miscellaneous: Merrill restarts Garmin (GRMN 37.93) with an Underperform... J.P Morgan initiates Tyson Foods (TSN 13.13) with an Overweight... J.P Morgan initiates Pilgrim's Pride (PPC 12.50) with a Neutral... J.P Morgan initiates Sanderson Farms (SAFM 40.17) with an Underweight.

Break Out List

ALC Over $7.60

Epic Over $8.85

BJGP Over $7.25

AKRX Over $5.75

FLWS Over $7

CPKI Over $16

GRMN Over $40

Economic Data for the Week

Morning News

Futures are pointing to a lower open

In Japan the Nikkei 225 closed up 1.4%

In Hong Kong the Hang Seng closed up 1.6%

European markets are flat

Goldman Sachs, Morgan Stanley become banks

Paulson widens $700 Billion Rescue beyond Mortgages

Dollar May get "Crushed" as Traders Weigh $1 Trillion Cost of bailout

Crude Oil is up $2.15 per barrel to $106.70

Gold is up $22 trading at $886.70

Stock Market Review

7 Stocks you need to know for Monday

Financial stocks rallied by double digits on Friday, with many gapping up on the open and closing well off their highs. Merrill Lynch (MER | Quote | Chart | News | PowerRating) gained more than 30%, Morgan Stanley (MS | Quote | Chart | News | PowerRating) gained more than 20%, and JP Morgan (JPM | Quote | Chart | News | PowerRating) added more than 16%, closing at levels not reached since May.

Auto Zone (AZO | Quote | Chart | News | PowerRating) reports earnings Monday morning before the market opens. Analysts are expecting EPS of 3.90.

Oracle (ORCL | Quote | Chart | News | PowerRating) gained more than 7% on Friday after beating analyst earnings estimates by two cents.

Palm Inc. (PALM | Quote | Chart | News | PowerRating) reported its fifth consecutive quarterly loss, as competition from Research in Motion's (RIMM | Quote | Chart | News | PowerRating) Blackberry continues to outsell Palm's line of smartphones.

The End of Capitalism as We Know it

Here's a report about the financial crisis.

The End of Capitalism as We Know it

http://www.leavittbrothers.com/

Pre-Market Gappers

Gapping up:

VSE +78.1%, WM +41.8%, MS +34.8%, GS +29.6%, WB +28.3%, AIG +25.7%, MER +17.9%, C +17.1%, BAC +16.1%, ETFC +15.2%, RBS +14.3%, UBS +14.1%, AEG +10.9%, JPM +9.2%, ORCL +6.7%, HBC +2.0%...

Gapping down:

PALM -9.4%, DROOY -7.6%, IHS -6.0%, GG -3.2%.

Upgrades and Downgrades

Upgrades: Oppenheimer upgrades Cree (CREE 25.79) to Outperform from Perform and sets a $31 tgt, based on LEDs that are beginning to gain traction in general lighting applications, believe the co has positioned itself as a major enabler and beneficiary of this transformation and expect them to benefit from strong growth in Chinese LED-powered outdoor displays with its acquisition of COTCO... HSBC upgrades Goldcorp (GG 31.01) to Neutral from Underweight... Friedman Billings upgrades McAfee (MFE 35.13) to Market Perform from Underperform and maintains their $33 tgt, based on valuation and believe a combination of a strong product cycle and good sales execution has enabled MFE to maintain steady closure rates in the field on the large deal front over the last few weeks, a dynamic which bodes well for 3Q revenue/bookings... Jefferies upgrades Constellation Energy (CEG 24.20) to Hold from Underperform and raises their tgt to $25 from $20, following the co's agreement to merge with MidAmerican Energy and believe shares are fairly valued relative to the $26.50/share cash offer... Jefferies upgrades American Electric Power (AEP 35.75) to Buy from Hold and lowers their tgt to $42 from $42.50, based on valuation and believe shares are already discounting a nominal increase in generation rates in the co's Ohio subsidiaries... UBS upgrades Colfax (CFX 17.91) to Buy from Neutral... Piper Jaffray upgrades Oracle (ORCL 18.75) to Buy from Neutral.

Downgrades: HSBC downgrades Royal Gold (RGLD 37.74) to Neutral from Overweight... Deutsche Bank downgrades Thomson Reuters (TRI 30.69) to Sell from Buy... Baird downgrades Gibraltar Industries (ROCK 22.23) to Neutral from Outperform and maintains their $22 tgt, based on valuation... Baird downgrades Host Hotels & Resorts (HST 17.00) to Neutral from Outperform and maintains their $15 tgt, based on valuation and believe earnings estimates and hotel asset values continue to have a downside bias, given the continued soft economy and greater disruption in the credit markets... Jefferies downgrades Empire District Electric (EDE 22.76) to Hold from Buy and lowers their tgt to 21.50 from $22.50, based on valuation... BofA downgrades Constellation Energy (CEG 24.20) to Neutral from Buy... UBS downgrades FreightCar America (RAIL 36.77) to Sell from Neutral... Citigroup downgrades Lear (LEA 13.15) to Sell from Hold... Citigroup downgrades Flagstone Reinsurance (FSR 11.91) to Hold from Buy... Jefferies downgrades Concur Technologies (CNQR 48.45) to Hold from Buy and maintains their $50 tgt, based on valuation and see fewer catalysts in the next 6+ months... Jefferies downgrades GSI Commerce (GSIC 17.40) to Hold from Buy and raises their tgt to $18 from $17, based on valuation... Wachovia downgrades Microsemi (MSCC 26.39) to Market Perform from Outperform... Piper Jaffray downgrades MIPS Technologies (MIPS 3.70) to Neutral from Buy... Piper Jaffray downgrades Apogee Enterprises (APOG 16.93) to Sell from Neutral.

Put vs Call Ratio

Today is options expiration

Morning News

Futures are pointing to a much higher open

In Japan the Nikkei 225 closed up 3.75%

In Hong Kong the Hang Seng closed up 9.6%

European markets are trading much higher

Paulson, Bernanke brief lawmakers on broad program to stem credit crunch.

The SEC has temporarily banned short-selling in the shares of 799 financial companies

Today is options expiration

Crude Oil is $99.25 per barrel

Gold is $842 per ounce

Stock Market Review

7 Stocks you need to know for Friday

The rally in financial stocks led to a more than 10% gain in Wells Fargo (WFC | Quote | Chart | News | PowerRating), which reached all time highs on Thursday.

And the increased likelihood of a suitor had shares of Washington Mutual (WM | Quote | Chart | News | PowerRating) bouncing by more than 48%.

With no resolution to a labor stoppage in sight, Boeing (BA | Quote | Chart | News | PowerRating) fought off intraday selling to close up by nearly 2%.

The potential of a distribution alliance with Coca Cola (KO | Quote | Chart | News | PowerRating) encouraged traders to bid share of Hansen Natural Corporation (HANS | Quote | Chart | News | PowerRating) higher by more than 17% on Thursday.

Gapping down at the open and plunging intraday, Goldman Sachs (GS | Quote | Chart | News | PowerRating) managed to close down just under 6%.

Up more than 3% on Thursday, Kraft (KFT | Quote | Chart | News | PowerRating) will replace American International Group in the Dow Jones Industrial Average.

Pre-Market Gappers

Gapping up:

UBS +22.1%, AIG +19.5%, LYG +12.8%, GFI +12.4%, WM +11.9%, RBS +9.9%, DB +9.3%, BCS +7.7%, SLV +7.1%, WB +6.9%, AAUK +6.5%, CUK +5.3%, ING +5.3%, CEG +5.0%, MT +4.4%, C +4.1%, MS +1.1%...

Gapping down:

VRTX -5.9%.

Upgrades and Downgrades

Upgrades:

IAR, ADTN, PTR

Downgrades:

WBC, HSC, ETN, VNO, KSS, CEG

Morning News

Futures are pointing to a higher open

In Japan the Nikkei 225 closed down 2.25%

In Hong Kong the Hang Seng closed flat

Central Banks will pump $247 billion into global markets

Jobless Claims (wk9/13 , 2008)

Leading Indicators (Aug , 2008)

Philadelphia Fed Survey (Sep , 2008)

Crude Oil is $99.50 per barrel

Gold is $884 per ounce

EIA Natural Gas Report (wk9/12 , 2008)

Money Supply (wk9/8 , 2008)

I'm Going Down

Stock Market Review

7 Stocks you need to know for Thursday

Washington Mutual (WM | Quote | Chart | News | PowerRating) is now officially on sale, with potential acquirers including JP Morgan Chase (JPM | Quote | Chart | News | PowerRating).

SanDisk (SNDK | Quote | Chart | News | PowerRating) is the target of an unsolicited takeover bid from Samsung Electronics. Samsung has offered $5.85 bn for the company.

Among the best performing stocks were those related to gold and mining. Barrick Gold Corporation (ABX | Quote | Chart | News | PowerRating) was up nearly 13% on the day. Newmont Mining Corporation (NEM | Quote | Chart | News | PowerRating) gained more than 9%

Reporting earnings Thursday morning before the market opens, FedEx (FDX | Quote | Chart | News | PowerRating) is expected to announce earnings per share of $1.21.

Shares of Morgan Stanley (MS | Quote | Chart | News | PowerRating) fell more than 27% on Wednesday despite beating analyst estimates by more than 50 cents after the close on Tuesday.

MA

Mastercard, Inc. was initiated with a buy at KeyBanc Capital Markets with a new price target of $350 per share so keep it on the radar.

V

Visa, Inc. was initiated with a buy at KeyBanc Capital Markets with a new price target of $94 per share so keep it on the radar.

Pre-Market Gappers

Gapping up: SNDK +51.3%, ESLR +10.5%, LYG +9.7%, ABK +8.0%, HOKU +7.4%, BCS +5.4%, MS +4.5%, ADBE +3.6%, WB +3.4%, AXA +3.3%, DRI +1.5%... Gapping down: AIG -25.3%, VSE -16.7%, POL -9.1%, COIN -6.4%, MT -3.8%, UAUA -3.6%, BBL -3.6%, NOK -3.1%, GILD -2.7%, HBC -1.9%, BHP -1.8%, RDS.A -1.6%.

Upgrades and Downgrades

Upgrades:

NDAQ, ITG, GFIG, ALKS, PRGO

HOKU, ACLS, GS, KR, ESLR, MON

Downgrades:

CME, PAG, BGFV, QSII, NARA

Morning News

Futures are pointing to a slightly lower open

In Japan the Nikkei 225 closed up 1.15%

In Hong Kong the Hang Seng closed down 3.65%

European markets are trading higher

MBA Purchase Applications (wk9/12 , 2008)

Housing Starts (Aug , 2008)

Current Account (Q2 , 2008)

EIA Petroleum Status Report (wk9/12 , 2008)

Crude Oil is $95 per barrel

Gold is $785 per ounce

AIG Gets Up to $85 Billion Fed Loan

Sept. 16 (Bloomberg) -- The U.S. government agreed to lend as much as $85 billion to American International Group Inc. in exchange for a 79.9 percent stake to save the country's biggest insurer from collapse.

The Federal Reserve ``determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth and materially weaker economic performance,'' the Fed said.

The agreement, supported by the Treasury Department, will keep New York-based AIG in business, averting a failure that could have threatened more financial companies and added to chaos in world markets. Losses industrywide could have totaled $180 billion if AIG collapsed, according to RBC Capital Markets. AIG needed the loan after its credit ratings were cut and shares plunged 79 percent since Sept. 11.

The two-year loan will ``assist AIG in meeting its obligations as they come due,'' the Fed said in its statement. The federal lifeline will allow AIG to sell assets in an orderly fashion rather than at distressed prices, said a person familiar with the agreement.

``The loan is expected to be repaid from the proceeds of the sale of the firm's assets,'' the Fed said. The U.S. government has the right to veto the payment of dividends to common and preferred shareholders.

AIG will replace management as part of the deal, said the person, who declined to be named because not all parts of the agreement were publicly disclosed.

Interest will accrue on the outstanding balance at the three-month London interbank offered rate plus 8.5 percentage points.

Stock Market Review

7 Stocks you need to know for Wednesday

Falling crude oil prices continue to be a boon for airlines stocks with Delta Airlines (DAL | Quote | Chart | News | PowerRating) up more than 23% and Continental Airlines (CAL | Quote | Chart | News | PowerRating) gaining nearly 13%.

Morgan Stanley (MS | Quote | Chart | News | PowerRating) reported quarterly earnings after the market closed on Tuesday, beating analyst's estimates by a wide mark.of more than 50 cents.

Warning of weakness in global demand, Dell Inc. (DELL | Quote | Chart | News | PowerRating) shares were lower by more than 11% on the day.

In a potential change of heart, the Federal Reserve has said that it is open to a loan package to help struggling insurer, American International Group (AIG | Quote | Chart | News | PowerRating).

Shares of Hewlett-Packard (HPQ | Quote | Chart | News | PowerRating) soared by more than 6% on Tuesday as traders applauded the company's cost cutting plans - including the elimination of thousands of jobs.

Third quarter profits for Goldman Sachs (GS | Quote | Chart | News | PowerRating) fell by more than 70% the company reported on Tuesday.

VIDEO - Bottoming Indicators

Here's quick video covering the bottoming indicators we're watching.

VIDEO - Bottoming Indicators

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FWLT

Foster Wheeler initiated with a buy at UBS so keep it on the radar.

LEH

The Wall Street Journal reports Lehman Brothers (LEH) Monday night was negotiating a last-minute plan to sell large portions of itself to Barclays (BCS). Barclays Americas Chairman Archibald Cox Jr. was leading the talks, and an agreement is hoped to be reached by Tuesday, said a person involved in the talks. Lehman's top executives were huddled at the bank's Manhattan headquarters trying to craft a plan that would preserve many Lehman jobs and operations, say people briefed on the discussions. Barclays confirmed in a brief statement Tuesday it is "discussing with Lehman Brothers the possible acquisition of certain Lehman Brothers assets on terms that would be attractive to Barclays shareholders." The U.K. bank added that, at this stage, no deal is certain. Many questions remain, chief among them, the price that Barclays might pay for Lehman, whose holding co is now in Chapter 11 bankruptcy protection. That structure allows it to sell off other assets without liquidating, and gives it additional time to reach an agreement. The troubled assets, such as mortgage securities, will be left behind in the holding co for creditors to liquidate as they see fit, said people familiar with the deal. It is expected that at least 10,000 people would shift to Barclays as part of the transaction that would involve the broker-dealer operation and all of its divisions.

Pre-Market Gappers

Gapping up:

LEH +33.3%, MNKD +7.4%, PLL +3.2%, WFC +3.2%, DSCP +3.2%, HRS +2.9%, SJM +2.1%, ASML +2.1%, PLXS +1.6%, GS +1.5%...

Gapping down:

TRGT -40.9%, AIG -40.1%, RBCN -17.7%, RBS -12.0%, WM -10.0%, LWSN -8.9%, UBS -6.9%, NCC -6.5%, SPNC -6.1%, SNV -4.5%, RDS.A -3.3%, NOK -2.6%, GOLD -2.6%, INTC -2.4%, RTP -1.9%.

Upgrades and Downgrades

Upgrades:

FCEA, LPL, CB, TRV, SAP,

AUO, ENDP

Downgrades:

OYOG, NBR, SIRF, ISIL, BRCM,

MTN, MU, LRCX, VSEA, MAS, MTH

Morning News

Futures are pointing to a lower open

In Japan the Nikkei 225 closed down 5%

In Hong Kong the Hang Seng closed down 5.45%

European markets are trading down 2-3%

ICSC-UBS Store Sales (wk9/13 , 2008)

Consumer Price Index (Aug , 2008)

Redbook (wk9/13 , 2008)

Treasury International Capital (Jul , 2008)

Housing Market Index (Sep , 2008)

FOMC Meeting Announcement (Aug , 2008)

Crude Oil is $93 per barrel

Gold is $783 per ounce

Stock Market Review

7 Stocks you need to know for Tuesday

Bank of America (BAC | Quote | Chart | News | PowerRating) walked away from talks with Lehman Brothers (LEH | Quote | Chart | News | PowerRating) and instead chose to acquire Merrill Lynch (MER | Quote | Chart | News | PowerRating) in a deal worth $50 billion.

Adobe Systems (ADBE | Quote | Chart | News | PowerRating) is expected to announce quarterly earnings per share of $0.46 when the company reports Tuesday after the close.

Among the few stocks moving higher on Monday were airline stocks including UAL Corporation (UAUA | Quote | Chart | News | PowerRating) which gained more than 8% on Monday.

Goldman Sachs (GS | Quote | Chart | News | PowerRating) reports earnings Tuesday morning before the market opens. Analysts are expecting EPS of $1.73.

American International Group (AIG | Quote | Chart | News | PowerRating) fell more than 60% on Monday as a sell-off in financial stocks overwhelmed the markets.

Pre-Market Gappers

Gapping up:

MER +35.5%, PSS +5.6%, LDG +3.9%, PKG +3.7%, AMLN +3.2%, GLD +1.2%...

Gapping down:

LEH -88.2%, AIG -42.3%, WM -32.6%, ABK -31.4%, WB -22.3%, RBS -17.8%, BCS -17.5%, UBS -15.4%, BAC -14.0%, PMI -12.9%, C -12.6%, AXA -11.9%, MS -11.4%, GS -9.3%, JPM -8.5%, WFC -5.7%.

Upgrades and Downgrades

Upgrades:

UBS upgrades Allegiant Travel (ALGT 30.89) to Buy from Neutral... UBS upgrades AirTran (AAI 2.69) to Buy from Neutral... Morgan Stanley upgrades Telecom Italia (TI 15.85) to Overweight from Underweight... UBS upgrades Delta Air Lines (DAL 8.13), Continental Airlines (CAL 18.95), Northwest Airlines (NWA 9.85) and UAL (UAUA 11.36) to Buy from Neutral... UBS upgrades JetBlue (JBLU 6.00) to Neutral from Sell.

Downgrades:

Jefferies downgrades T.Rowe Price (TROW 57.44) to Hold from Buy and lowers their tgt to $60 from $63 based on valuation. The firm says while they view TROW as the premium franchise within asset management, slowing internal growth should limit multiple expansion and earnings upside in the near-term... Piper Jaffray downgrades Zumiez (ZUMZ 17.62) Neutral from Buy... Jefferies downgrades Citrix (CTXS 29.01) to Underperform from Hold and lowers their tgt to $25 from $32 says they do not see a meaningful new product, prodcut cycle, or potential for the typical Q4 upside from EMEA that can help CTXS grow into 2009 street ests... Jefferies downgrades Cytec (CYT 47.79) to Hold from Buy and cuts their tgt to $52 from $60 saying near term upside could be limited by concerns on European demand. Miscellaneous: Standpoint Research initiates Freeport McMoRan Copper & Gold (FCX 73.88) with a Buy and sets a 3-yr tgt of $110-$120... Morgan Stanley initiates Wuxi Pharma (WX 16.20) with an Overweight...