PKD

May 31st - Thursday - Gapping up/down

Gapping Down

Gapping down on weak earnings/guidance: OPTM -10.6%, LGF -3.1%, SHLD -2.9%, COST -1.5%… Other news: OMR -8.1% (Bloomberg reports co is being sued by Spain over rights to shipwreck), VCLK -4.3% (appointed Tom Vadnais CEO, multiple brokers out this morning saying mgmt change decreases likelihood of acquisition), NOVC -2.2% (profit taking after yesterday’s move, downgraded to Peer Perform at Bear stearns), WLP (announces resignation of CFO following violation of co’s code of conduct).

Gapping Up

Gapping up on strong earnings/guidance: SMTC +10.2%, CIEN +7.1%, BIG +3.9%… M&A: AGE +14.3% (to be acquired by WB for $89.50 per AGE share), CEN +3.8% (to be acquired by Thomas H. Lee Partners and Fidelity National Financial for $36.00 per share)… Other news: CRTX +53.3% (FDA approves it’s twice-daily Zyflo CR extended-release tablets for asthma), AVNR +23.3% (receives FDA approval for new formulation of currently marketed antipsychotic drug FazaClo), ENCY +18.9% (Canadian Health authority approves Thelin), USAT +18.9% (discloses deal with Coca-Cola Enterprises in an 8-K), JAS +9.3% (TheDeal.com reports JAS is on the auction block), ASML +7.9% (announces plan to optimize capital structure — capital repayment and reverse stock split), CYTR +7.8% (initiated with an $8.50 fair value at Natexis Bleichroeder), HOKU +7% (still checking around), ENDP +5.5% (will replace Precision Castparts in the S&P MidCap 400), IFX +3.5% (positive comments at tier-1 firm), LUX +3.4% (positive comments at tier-1 firm).

May 31st - Thursday - Gapping up/down

Gapping Down

Gapping down on weak earnings/guidance: OPTM -10.6%, LGF -3.1%, SHLD -2.9%, COST -1.5%… Other news: OMR -8.1% (Bloomberg reports co is being sued by Spain over rights to shipwreck), VCLK -4.3% (appointed Tom Vadnais CEO, multiple brokers out this morning saying mgmt change decreases likelihood of acquisition), NOVC -2.2% (profit taking after yesterday’s move, downgraded to Peer Perform at Bear stearns), WLP (announces resignation of CFO following violation of co’s code of conduct).

Gapping Up

Gapping up on strong earnings/guidance: SMTC +10.2%, CIEN +7.1%, BIG +3.9%… M&A: AGE +14.3% (to be acquired by WB for $89.50 per AGE share), CEN +3.8% (to be acquired by Thomas H. Lee Partners and Fidelity National Financial for $36.00 per share)… Other news: CRTX +53.3% (FDA approves it’s twice-daily Zyflo CR extended-release tablets for asthma), AVNR +23.3% (receives FDA approval for new formulation of currently marketed antipsychotic drug FazaClo), ENCY +18.9% (Canadian Health authority approves Thelin), USAT +18.9% (discloses deal with Coca-Cola Enterprises in an 8-K), JAS +9.3% (TheDeal.com reports JAS is on the auction block), ASML +7.9% (announces plan to optimize capital structure — capital repayment and reverse stock split), CYTR +7.8% (initiated with an $8.50 fair value at Natexis Bleichroeder), HOKU +7% (still checking around), ENDP +5.5% (will replace Precision Castparts in the S&P MidCap 400), IFX +3.5% (positive comments at tier-1 firm), LUX +3.4% (positive comments at tier-1 firm).

JBX

May 30th - Wednesday - Gapping up/down

Gapping down on weak earnings/guidance: SOLF -20.5%, IBKR -5.5%, BGP -5.6%, JOYG -4.4%, FRO -3.0%... China-related stocks gapping down after 6.8% overnight sell-off in China: SNDA -5.1%, CAF -4.6%, KONG -4.4%, TSL -4.3%, XFML -4.0%, SOHU -3.9%, EFUT -3.8%, FFHL -3.7%, FMCN -3.6%, GCH -3.4%, SINA -2.2%, BIDU -1.7%, CTRP -1.3%... Chinese solar stocks under pressure on combination of weakness in China and in sympathy with SOLF earnings: JASO -5.9%, CSUN -5.0%, CSIQ -4.7%... Other news: IOMI -8.6% (continued pressure), TINY -6.0% (still checking), DEEP -3.6% (initiated with a Neutral at JP Morgan).

Futures indicate a lower start for the mkt as China's Shanghai Composite sold off 6.5% following yesterday afternoon's report that the Chinese govt tripled the tax on stock trading to 0.3% in an effort to curb speculative buying activity in the mkt. Note the monthly ADP employment report showed that an estimated 97K new private jobs, or roughly 123K nonfarm jobs, were created in May. However, the ADP report lacks credibility compared to Friday's more closely-watched May nonfarm payrolls, which is expected to check in around 135K.

Notable pre-market Calls include Upgrades: KNXA at Credit Suisse; Downgrades: BWLD at RBC; Initiations: STLD at Citi (Buy)... On the Earnings calendar: CHS, JRJC, JAS, LGF, NOVL, OPTM, PSS, SMTC and TIVO are confirmed to report after the close... On the Economic calendar, the May 9 FOMC Minutes will be released at 14:00ET.

Gapping up on strong earnings/guidance: CWTR +12.0%, DBRN +4.5%, PVH +3.0%... M&A: CDWC +3.5% (confirms it will be acquired by Madison Dearborn Partners for $87.75/share... Other news: OPWV +4.2% (Unstrung discusses ongoing rumors of higher bid in Openwave), BIIB +3.6% (announces $3 bln share repurchase through a modified "Dutch Auction" tender offer), TASR +2.5% (announces two orders).

RRST

May 29th - Tuesday - Gapping up/down

Futures indicate a higher open for the mkt. Per usual, the first day of the trading week is packed with more deal-making news, which is helping to keep an underlying bid in stocks. The RBS Group has launched a revised $95.5 bln for ABN, while URS said it is paying $2.6 bln for WNG. Among today's takeover speculation, it has been reported that AL is drawing interest from the likes of RTP and NHY. Also, AV is reportedly in talks with Silver Lake Partners about a leveraged buyout, ASN is rumored to be nearing a sale for more than $12 bln and private equity suitors may be eyeing CDWC. In addition, now that the summer driving season is upon us, falling oil prices also bode well for the bulls coming back from an extended weekend.

Notable pre-market Calls include Upgrades: AZN and MRK at HSBC, APC at BofA; Downgrades: STLD at UBS, LTD at Morgan Stanley, NFLX at Piper Jaffray, LUV at Pru... On the Earnings calendar: ALKS, APSG, BCSI, BMC, BGP, CWTR, DCI, PVH and PAY are confirmed to report after the close... On the Economic calendar, as mentioned above May Consumer Confidence (consensus 104.5) will be released at 10:00ET.

Gapping Down: CUP -17.5% (co announces expiration of exclusivity period granted to a third party to facilitate discussions), EYE -12.7% (announced the voluntary recall of Complete MoisturePlus multipurpose solution), JSDA -8.1% (mentioned negatively in Barron's), BOL -4.2% (gapping down in sympathy with EYE; also on Friday EYE confirmed an interest in Bausch & Lomb), BRLC -3.7% (Barron's raises questions about the accounting practices at BRLC), VRSN -2.0% (co announces new CEO following resignation of prior CEO).

Gapping up on strong earnings/guidance: VOD +3.3%... Announced M&A and newspaper reports of potential M&A: WNG +14.6% (to be acquired by URS), BDY +22.5% (CEO offers to buy co for $21.50/share), AV +16.3% (WSJ reports AV may be next telecom takeover call), INSP +8.7% (Bloomberg reports that LaNetro may buy co for $800 mln Euros), CDWC +8.5% (WSJ reports buyout firms are in talks to purchase co), ASN +6.8% (WSJ reports that co is near a sale)... Other news: BLG +11.2% (Chap Cap Activist Partners recommends co explore sale, stock upgraded to Outperform at CIBC), RTK +5.6% (Peabody and Rentech enter into development and coal supply agreements), CHINA +5.0% (expands strategic partnerships with Google and China Mobile), LWSN +3.9% (WSJ highlights co), CCL +3.1%.

IDSA

May 25th - Friday - Gapping up/down

Gapping down on news: SLFI -35.7% (co reports its investigation has revealed evidence of a sophisticated loan scheme), WAVX -12.0% (to sell 7.3 mln shares of stock at $2.05 per share), NDAQ -5.8% (to buy Nordic exchange O.M.X.), TRB -2.1% (announces preliminary results of tender offer), AMGN -1.0% (EU health panel adopted a negative opinion for Vectibix).

Futures indicate a higher open for the mkt as yesterday's pullback seems to be viewed as a buying opportunity. M&A activity is once again contributing to the positive tone as KO agreed to buy Glaceau for $4.1 bln, while NDAQ said it would pay $3.7 bln for the Nordic exchange OMX. Note there were no market-moving earnings releases or economic data out this morning.

Notable pre-market Calls: NYX is trading up ~2%, Goldman upgrade to Neutral is being cited; HPQ initiated with an Outperform at Friedman Billings... Nothing remains on the Earnings calendar for today... On the Economic calendar, as mentioned above Apr Existing Home Sales (consensus 6.13 mln) will be released at 10:00ET.

Gapping up on strong earnings/guidance: VRGY +11.8%, LNUX +11.3%, RRGB +9.9%, ARUN +8.2%, VIP +3.3%... Other: CUP +18.0% (entered into an exclusivity agreement with a third party regarding a potential transaction), IDMI +14.0% (initiated with a Buy & $11 tgt at Canort Fitzgerald), LMRA +7.6%, BIVN +7.5% (highlighted in BusinessWeek's Inside Wall Street), RFMD +4.7% (upgraded to Buy at Jefferies), DCX +3.5%, CCE +3.3% (KO to buy Glaceau for $4.2 bln, CCE manufactures/distributes KO beverages), BOBJ (WestLB raises BOBJ to Buy), KO +1.4% (co to buy Glaceau for $4.2 bln).

May 24th - Thursday - Gapping up / down

Gapping down on weak earnings/guidance: NTAP -17.7%, NWY -7.7%, CA -6.1%, SNPS -6.0% (also downgraded at HSBC), MYL -4.5%, ZUMZ -4.3%... Other news: XRTX -8.4% (down in sympathy with NTAP, which makes up ~50% of XRTX revs), ONT -5.2% (continued profit taking following yesterday's reversal), BRLC -4.6% (prices 25.6 mln share offering at $5.75/share), ESLR -3.2% (prices a 15 mln share common stock offering at $8.25/share), DLB prices a 7 mln share common stock offering at $32/share), BRCD -2.0% (down in sympathy with NTAP). DNDN -2.3% (downgraded at JMP Securities).

Gapping up on strong earnings/guidance: SAFM +16.3%, OVEN +8.6%, GYMB +8.5%, PACT +8.0%... Other news: MITI +42.0% (co and Nycomed enter into exclusive worldwide collaboration to develop and commercialize anti-GM-CSF antibodies), LJPC +33.5% (reports Riquent well tolerated in three studies at International Lupus Congress), YMI +10.0% (reports successful regulatory reviews of nimotuzumab manufacturing), TASR +7.0% (announces three domestic orders and one export order), EXEL +5.9% (files IND application for XL019), GLS +4.4% (mentioned positively by Cramer), VOD +2.4% (continuation of yesterday's strength).

May 23rd - Wednesday - Gapping up / down

Futures indicate a higher open for the mkt as investors sift through more M&A news. AL is recommending shareholders reject AA's $27.6 bln hostile takeover bid, but hasn't ruled out the possibility of making its own bid for AA, and is reportedly in merger talks with BHP. Also, CEI agreed to be acquired by MS for $22.80/sh, while PSS said it will pay $20.50/sh for SRR. On the earnings front, MDT and TGT are both trading higher after posting better than expected earnings.

Notable pre-market Calls include Upgrades: CYPB at CIBC, MDT at Piper Jaffray, AEM, AU and RGLD at HSBC; Downgrades: AMD at Matrix, VCLK at Credit Suisse... On the Earnings calendar, 16 cos are confirmed to report after the close, though none are expected to be market-moving releases...

Gapping down on weak earnings/guidance: ADI -8.5%, DDS -3.1%, GME -1.7%... Other news: NFLD -44.5% (reports results of its pivotal Phase III trauma trial with PolyHeme), ISIL -4.2% (downgraded at Credit Suisse), LLTC -2.3% (ITC Judge Rules in favor of AATI in patent infringement case, downgraded at Credit Suisse), NWEC -1.8% I(Bloomberg.com reports that Babcock Infrastructure may appeal NorthWestern ruling).

Gapping up on strong earnings/guidance: SNDA +5.3%, MDT +4.6%... M&A: SRR +32.3% (to be acquired by PSS for $20.50 per share), CEI +4.8% (to be acquired by Morgan Stanley Real Estate for $22.80 per share), AL +3.5% (AL board recommends that shareholders reject AA offer, says co is in talks with other companies)... Other news: CYPB +104.7% (co and FRX announced positive Phase III data for milnacipran), AATI +18.0% (announces ITC ruling in favor of co in LLTC case), ZVUE +9.3% (begins offering free streaming content from Canadian Broadcasting), FRX +9.3% (announced positive Phase III data for milnacipran), MMR +7.9% (announces it will move forward aggressively at Mt. Kare), ONT +7.0% (named as a ADBE takeout tgt by FT's Mergermarket), ZOLT +3.7% (reports new expanded carbon fiber supply agreement with Vestas Wind Systems), ALU +3.5% (follow through on strength overseas on positive outlook), WFR +3.2% (to replace KMI in S&P 500), GOOG +1.5% (unveils its new service Google Hot Trends, which can track search queries; we're still checking around).

May 22nd Tuesday - Gapping up /down

Gapping down on weak earnings/guidance: KONG -16.2%, GSOL -7.1%, GIGM -5.5%, APOL -4.1%, SPLS -3.2%, NTES -2.4%... Other news: OMTR -7.1% (announces a 6.8 mln share common stock offering), ACW -6.3% (files for a 5.4 mln share common stock secondary offering by selling shareholders), HRAY -4.9%, ONT -3.5% (announces acquisition of Hantro Products), DYN -3.8% (Chevron to sell Dynegy shares), MNST -2.9% (tier-1 firm suggesting sale of co may be less likely), SSL -2.7% (gives project update for Oryx gas-to-liquids venture).

Gapping up on strong earnings/guidance: PSUN +6.5%, ASEI +4.4%... Casino stocks seeing strength following Tracinda/MGM negotiations: MGM +24.1%, BYD +7.0%, WYNN +4.9%, LVS +3.9%... Mortgage-related stocks moving following FMT developments: FMT +50.6%, NFI +9.9%, LEND +9.4%, IMH +6.6%, AHM +3.9%... Other news: AVNC +20.9% (announces FDA acceptance of Amoxicillin Pulsys NDA), OXPS +6.7% (continued momentum following yesterday's 7% move higher on takeover rumors), EMU +4.9% (light volume, broker comments out of Canada discussed potential sale of co), TSS +4.5% (mentioned by Cramer next co that could be bought), DNDN +4.5% (continuation of strength from yesterday afternoon), STM +2.5% (STM, INTC and Francisco Partners to create a new independent semiconductor co), CTSH +1.8% (positive comments from tier-1 firm).

Short-term Overbought/Oversold candidates -Update- -Technical-

Here's a brief list of stocks that are currently trading at unusually high or low short-term levels. Stocks that are overbought include: JRCC, CFUL, CLRK, RAVN, ICPR, MEK, TBSI, BG, GLDD, TECUA, UA, VCP, CMRG, DDS, RIG, CTRP, OMTR, FRG, OMNI, NM, URZ, ENT, CERS, TOPT, BIVN, PCLN, CRZO, SIL, & WINN. Stocks that are oversold include: IMCL, POP, BBI, MPEL, SOLF, VGZ, GLBC, & IDMI. Watch these stocks for potential continuations or corrections from their current states.

Stocks that closed near or at their session high/lows yesterday on above avg volume -Update- -Technical-

Stocks that closed near or at session highs included: ITW, SBH, EFD, PXP, WYE, SRP, TNE, MVL, VCP, LEG, AMZN, CREE, DJO, CMRG, NRMX, ICE, NYX, TMX, ICGE, LAVA, ALJ, ARA, ACW, AMLN, FEIC, SEPR, & HMIN. Stocks that closed near or at session lows included: SKS, SSL, NVS, & GSK. Watch these stocks for potential corrections or continuations of yesterday's action.

May 21st Monday - Gapping up / down

Gapping down on weak earnings/guidance: TSL -3.1% (down in sympathy ESLR -2.6%, SOLF -1.1%, JASO -0.6%, FSLR -0.6%), LOW -2.1%... Other news: XFML -12.5% (announced immediate resignation of Shelly Singhal from the Boards of both Xinha Finance and Xinhua Finance Media, as well as from all executive and managerial positions), HTZ -5.1% (files for 45 mln share offering by selling shareholders), HOLX -3.8% (to acquire Cytyc), SEPR -3.5% (C.M.S. updates Medicare billing codes, Xopenex U.D.V. and generic albuterol to be listed under same codes - tgt cut to $40 at FBR; also upgraded to Neutral at Cowen), DJ -3.5% (Murdoch, News Corp prepare to abandon DJ bid, Pali says - Bloomberg.com), SIGM -3.2% (announces CFO resignation, names Thomas Gay as replacement), MNST -2.6% (Don't believe recent deals should be extrapolated to MNST - Wachovia).


Futures indicate a mixed open for the mkt as investors digest another round of Monday-morning M&A activity. AT has agreed to be taken private for $27.5 bln, a 10% premium to Friday's close. HOLX agreed to buy CYTC for $6.2 bln in cash and stock, while EAGL received a revised $1.95 bln takeover bid from CEVA Group. In addition, China is reportedly investing $3 bln in Blackstone, which increased the size of its IPO to $4.75 bln.

Notable pre-market Calls include Upgrades: HOLX at BofA, SHFL at Bear Stearns; Downgrades: CFC at Friedman Billings, CCU at Bear Stearns... On the Earnings calendar: ASEI, APOL, HMIN, KONG, NTES, PSUN, PERY, NCTY and WSTL are confirmed to report after the close... Today's Economic calendar is clear.

Gapping up on strong earnings/guidance: PEGA +5.8%, CCC +3.7%, RTLX +3.5%... M&A: CYTC +30.4% (to be acquired by Hologic in a stock/cash deal), PONR +17.0% (to be acquired by Olin for $35.00/share), VMED +9.3% (private equity considering $15 bln bid for Virgin Media - The Observer), EMU +6.4% (announces it is in exclusive negotiations regarding potential sale of co... sympathy plays: USU, DNN, URZ, FRG, USEG, CXZ), ATLS +6.3% (to acquire DTE's +0.6% Gas & Oil unit for $1.225 bln), AT +5.5% (to be acquired by TPG Capital & GS Capital for $71.50/share), EAGL +3.3% (CEVA Logistics confirms increased proposal to acquire EAGL for $47.50/share in cash)... Other news: LUNA +40.0% (blood circuit monitor receives FDA clearance), ELN +14.2% (co and Wyeth to initiate Phase 3 trial of Bapineuzumab in Alzheimer's), ARTX +12.8% (awarded $9 mln order by U.S. Marine Corps; very light volume), VC +11.6% (Tatas in talks for stake in Visteon - Business Standard), NCTY +11.5% (announces equity investment and licensing agreement by Electronic Arts), CTEL +8.2% (follow-through momentum after Friday's earnings-related range breakout), CBLI +7.9% (announces Protectan CBLB612 produces breakthrough in bone marrow stem cell transplant study; very light volume), DWA +7.6% (Shrek 3 has highest grossing animated film opening of all time; very light volume), DNDN +6.9% (announces presentation of Provenge data at American Urological Association meeting), OMR +6.4% (momentum extension after stock rallied to highs into Friday's close), VCLK +5.5% (target raised to $43 at ThinkEquity), CRUS +5.3% (Insider buying reported at CRUS - Barron's), CRM +4.5% (Google and CRM weigh alliance to battle Microsoft - WSJ), SHFL +3.3% (upgraded to Peer Perform at Bear Stearns), ONT +3.3% (momentum).

May 18th - Friday - Gapping up / down

Futures indicate a higher open for stocks. M&A news is leading this morning's headlines as MSFT has agreed to acquire AQNT for $66.50/sh, an 85% premium from yesterday's closing price. In addition, GE is reportedly near a deal to sell its plastics unit for ~$11 bln. On the Earnings front, retailers KSS and JWN reported better than expected earnings and raised fiscal year guidance. It's also worth noting China said today it will widen the Yuan trading band, while increasing deposit and lending rates.

Notable pre-market Calls include Upgrades: PCLN, VZ and REP at Citi, NYX at JP Morgan; Downgrades: JNPR at Citi, MO at Matrix, VCLK at Needham... On the Earnings calendar, no cos are confirmed to report today... On the Economic calendar, preliminary May Michigan Sentiment (consensus 86.5) will be released at 10:00ET.

Gapping up on strong earnings/guidance: INTU +11.0%, FMCN +6.8%, RDY +5.6%, TOPT +4.4%... M&A: AQNT +78.3% (to be acquired by Microsoft for $66.50/share... up in sympathy: DGIT +9.4%, VCLK +9.0%, THK +8.1%, VSCN +6.2%, MCHX +4.2%, ONSM +3.3%), TONE +32.0% (to be acquired by CapitalSource for $34.46/share)... Other news: CHIP +17.8% (profiled in BusinessWeek Online), OMR +41.7% (Deep-sea explorers discover possible richest shipwreck treasure in history - Fox News), TRMP +14.8% (announces status of strategic review), APKT +3.8% (upgraded to Buy at Cantor), BWLD +3.4% (to acquire Las Vegas franchised restaurants, announces 2 for 1 split), CY +2.9% (bullish comments from Cramer).

May 17th - Thursday - Gapping up / down

Futures indicate a slightly lower start for stocks as investors await Fed Chairman Bernanke's testimony at 9:30ET on the subprime mortgage mkt. HPQ is leading earnings headlines as the co reported inline, reaffirmed Q3 guidance and issued inline FY07 guidance. On the economic front, weekly Initial Claims fell 5K to 293K (consensus 310K).

Notable pre-market Calls include Upgrades: ONXX at Friedman Billings, MGM at Prudential, MPWR at Deutsche Bank and Piper Jaffray, TGT at AG Edwards; Downgrades: CAT at Stifel Nicolaus, CMG at Morgan Joseph... On the Earnings calendar, 10 cos are confirmed to report after the close including KSS and JWN... On the Economic calendar, Apr Leading Indicators (consensus 0.0%) will be released at 10:00ET and May Philadelphia Fed (consensus 4.0) will be released at 12:00ET.

Gapping down on news: MDTH -5.1% (priced additional 4 mln share offering at 33.07), DNN -4.2% (updates Canadian mining and production plans), MU -2.4% (files for a $1.1 bln convertible notes offering).

Gapping up on strong earnings/guidance: HPQ +1.1%... M&A: ACXM +18.4% (to be acquired by Silver Lake and ValueAct Capital for $27.10 per share), TFSM +4.5% (to be acquired by WPP for $11.75 per share)... Other news: DUSA +32.5% (receives Orphan Drug Designation for Levulan PDT to treat esophageal dysplasia), CTIC +5.0% (receives FDA special protocol assessment comments on the design of Phase III Trial of Pixantrone), GERN +6.0% (its scientists and collaborators differentiate human embryonic stem cells into insulin-producing islet-like clusters), ISIS +4.0% (announces positive Phase 2 data for ISIS 301012), SUNW +3.9% (announces $3 bln share buyback).

Early Pre-Market Gappers

Gapping Up: ACXM +16.6%, GERN +6.0%, ISIS +4.8%, SUNW +3.7%, TFSM +3.5%, HPQ +1.6%... Gapping Down: MU -2.0%, WF -1.2%.

May 20th - Wednesday - Gapping up / down

Gapping down on weak earnings/guidance: HRT -26.3%, FRPT -4.0%, AMAT -3.9% (down in sympathy NVLS -3.6%, LRCX -2.4%, KLAC -2.3%, VSEA -1.9%, ASML -1.1%, TXN -0.7%), LTD -3.0% (also multiple downgrades)... Other news: SWAT -8.6% (discloses "going concern" language in 10-KSB), ATEA -4.1% (profit-taking after yesterday's earnings-related gap up), EEP -3.8% (files for 5.3 mln share offering), ESLR -3.4% (files for 15 mln share secondary).

Pre-market Summary : Futures indicate only a slightly higher start for the mkt following mixed housing data. Housing starts unexpectedly rose 2.5% in Apr to 1.528 mln (consensus 1.48 mln), the highest level this year, reflecting more stabilization in housing. However, Building Permits, a sign of future construction, fell 8.9% to a 10-year low of 1.429 mln (consensus 1.52 mln). The disclosure of significant investments in several large-cap names (Eddie Lampert in C, George Soros in MSFT, etc) is contributing to the improved sentiment.

Notable pre-market Calls include Upgrades: TIVO at Bear Stearns; Downgrades: BID at JMP Securities, LTD at Wachovia, Citi and BofA, TXN at CIBC, AMAT at Cowen; Initiations: CROX at JP Morgan (Overweight) gapping up above $75.00... On the Earnings calendar, 12 cos are confirmed to report after the close including HPQ... On the Economic calendar, Apr Industrial Production (consensus 0.3%) and Capacity Utilization (consensus 81.5%) will be released at 9:15ET.

Gapping up on strong earnings/guidance: QXM +12.4% (up in sympathy majority owner XING +5.5%), CPWR +10.8%, ESMC +8.6%, CVLT +8.4%, JBX +5.6%, REDF +5.4%, SNE +4.1%, CPA +3.9%... M&A: AGIL +12.9% (to be acquired by Oracle for $8.10/share... up in sympathy ARTG +4.8%?), BOL +9.8% (to be acquired by private equity for $65.00/share), NX +4.9% (to review strategic alternatives for Building Products group)... Other news: CPNLQ.PK +12.7% (WSJ reports Calpine is getting a favorable new look from investors), MPWR +11.7% (O2Micro to appeal jury verdict recently rendered in favor of MPWR and Asustek), NUVO +8.6% (upgraded to Neutral at BofA), ACM +7.1% (Cramer positive on stock), HLIT +5.1% (upgraded to Mkt Perform at FBR), COMS +4.9% (WSJ runs blurb noting co named new CFO... originally announced 5/10), BRCD +3.9% (upgraded to Overweight at JP Morgan), CNTY +3.4% (announces new managing director of its South African subsidiary).

May 15th - Tuesday - Gapping up / down

Gapping down on weak earnings/guidance: KRSL -24.0%, STEC -17.6% (also multiple downgrades), CNTF -13.8%, JASO -6.9%, PLTE -6.6%, BDCO -6.3%, IGLD -4.9%, TJX -4.1%, ACAT -3.6%, HD -2.3%... Other news: AMGN -6.9% (WSJ reports Medicare may limit anemia-drug money; also multiple downgrades), BARE -3.7% (files for a 10 mln share common stock offering), BSTE -3.2% (Beckman advises it won't increase offer to acquire BSTE beyond $90/share), GMR -3.0%, TIVO -2.8% (hearing downgraded at boutique firm).

Futures indicate a flat open for stocks as CPI rose 0.4% (consensus 0.5%) in April and the more closely-watched core CPI rose 0.2% (consensus 0.2%), pushing the yr/yr rate to 2.3%, which is closer to the Fed's "comfort zone". On the Earnings front, HD is trading down 2% after missing on the top and bottom line and guiding FY08 EPS at the low end of prior forecasts. WMT is trading slightly higher after reporting and guiding Q2 EPS inline.

Notable pre-market Calls include Upgrades: DCX at UBS, GM at Lehman, MRO at BofA, LVS and BOT at BMO Capital; Downgrades: AMGN at Robert W. Baird and BofA, STEC at Deutsche Bank, CIBC and Northland Securities, TSO and VLO at BofA (from Buy to neutral), BYD at BMO Capital... On the Earnings calendar, AMAT, CPWR, MNTG, PLAB and POWI are confirmed to report after the close... On the Economic calendar, nothing remains on the schedule for today.

Gapping up on strong earnings/guidance: PLCC +33.3%, ATEA +31.9%, WINN +19.8%, ACY +11.1%, ICFI +7.5% (also downgraded to Hold at Jefferies), LINE 5.3%, PCS +5.0%, CPSL +4.2%, KRY +3.5%... M&A: TW +3.3% (to be acquired by AIG for $22.00/share)... Other news: ICAD +22.1% (files 8-K with Q1 results, note co first reported these numbers on 5/8), SIGA +8.1% (announces successful results of proof of concept guinea pig trial of ST-193), CRTX +7.9% (follow-through momentum), HTLD +6.2% (declares special dividend of $2.00/share), MR +6.1% (upgraded to Buy at UBS), HTRN +5.9% (announces FDA clearance and launch of the new lithoDiamond ULTRA lithotripter), MXWL +5.8% (co and Argonne National Lab to collaborate in test of ultracapacitor/lithium-ion battery combination for hybrid vehicles), OMRI +4.3% (receives FDA approval for liquid fibrin sealant, Evicel, for use in vascular surgery), SOFO +4.1% (initiated with a Buy at Cantor), RTRSY +3.9% (Thomson and RTRSY agree on terms for merger).

Gapping Down: STEC -13.7%, IGLD -9.8%, PLTE -6.6%, AMGN -4.4%, NTAP -3.4%, BSTE -3.2%, GRZ -2.5%, HD -2.2%, SPPI -1.9%, BEAS -1.9%.

May 14th - Monday - Gapping up/down

Gapping down on weak earnings/guidance: VYYO -6.3%... Other news: MYL -11.8% (to acquire generics business of Merck KGaA for $6.7 bln), OPMR -7.5% (responds to request from US attorney's office in Southern District of NY; very light volume), RDY -5.8% (Teva & RDY lose bid to overturn patent on JNJ/Eisai's Aciphex), BVF -3.9% (acknowledges receipt of Wells Notice), RTP -3.5% & BHP -1.7% (down on newspaper articles "Rivals look to thwart $33 bln aluminium deal" and "RTP hires Morgan Stanley for bid defense"), IRF -2.9% (discloses it found accounting problems at foreign subsidiary), LEND -2.7% (files delay of 10-Q on Friday afternoon), NFI -1.7% (Risks outweigh the opportunities - FBR).

Futures indicate a flat start for stocks. With the mkt's focus shifting away from earnings and back to economic data, an empty economic calendar this morning is stalling follow-through efforts from Friday's rally. Per usual for a Monday morning, M&A activity is making headlines. Cerberus Capital Mgmt is paying $7.41 bln for an 80% stake in DCX's Chrysler unit, while MYL has agreed to acquire Merck KGaA's generic drug division for $6.7 bln. Bloomberg also reported family members are weighing a sale of their controlling stake in F.

Gapping up on strong earnings/guidance: AEY +17.4%, PETS +16.6%, JCDA +12.8%, SMTX +12.1%, XFN +10.2%, CSIQ +7.7%, XNN +6.7%... NOK +2.9% raises guidance, up in sympathy: RFMD +2.8% and TXN +0.4%... M&A: VAS +36.3% (to be acquired by Cardinal Health for $42.75/share), INFT +27.2% (to be acquired by Business & Decision for $4.25/share), PRM +20.5% & SORC +6.6% (SORC to acquire PRM's Enthusiast Media segment), EAGL +6.3% (announces increase in offers from both CEVA and group led by EAGL CEO Jim Crane), DCX +3.8% (Cerberus takes over majority interest in Chrysler Group and related financial services business for $7.4 bln)... Other news: CRTX +28.5% (FDA approves DEY's New Drug Application for Perforomist Inhalation Solution), LJPC +13.0% (initiated with a Buy at Needham), BDSI +11.6% (announces BEMA Fentanyl Phase III data demonstrates statistical significance), ONT +10.9% (follow-though momentum), SILC +10.4% (announces design win from "one of the world's largest telecoms equipment manufacturers"), GERN +7.6% (positive article in TheStreet.com), DNDN +7.2% (short-squeeze), ACH +4.6% (follow-through momentum; also up in sympathy after Telegraph reports that rival mining groups are drawing up plans to gatecrash Alcoa's hostile bid for Alcan), ALTI +4.6% (follow-through momentum), SIF +4.5% (follow-though momentum after Friday's earnings-related surge), MEND +4.4% (Cramer positive on stock), GNVC +4.3% (added to Nasdaq Biotechnology Index), FRPT +3.4% (Cramer positive on stock; also mentioned in WSJ article "Armored-vehicle builders compete for bigger payday).

May 11th - Friday - Gapping up / down

Gapping down on weak earnings/guidance: MAMA -15.5%, BRLC -13.6%, BSQR 12.0%, MOVI -11.2%, FL -10.4%, PRXI -9.3%, MED -8.7%, DNDN -7.8%, THQI -4.7%, GRS -4.5%... Other news: AMGN -3.9% (continued weakness with multiple broker downgrades following yesterday's ODAC panel recommendations), JAV -1.8% (prices 7.1 mln share offering at $6/share).

Futures indicate a higher open for the mkt as the closely-watched core PPI was unchanged in April vs. consensus expectations of 0.2%. That pushes the yr/yr rate to 1.5% and provides more evidence that inflation pressures have abated somewhat. However, Apr Retail Sales unexpectedly fell 0.2% (consensus 0.4%), while the more closely-watched sales, ex-autos, was unchanged (consensus 0.5%), echoing yesterday's concerns about the health of the consumer.

Notable pre-market Calls include Upgrades: AMAT at UBS, ALU at Credit Suisse, NVDA at Needham; Downgrades: AMGN at Citi, JP Morgan, HSBC and Lazard, ISE at BofA, WEN at Citi... On the Earnings calendar, no cos are confirmed to report after the close. On the Economic calendar, Mar Business Inventories (consensus 0.2%) will be released at 10:00ET.

Gapping up on strong earnings/guidance: SYNM +17.9%, UEPS +9.1%, PRTS (also upgraded at RBC), VOLV +6.5%, NVDA +5.7% (also upgraded at Needham), ALU +3.0% (also upgraded at Credit Suisse)... CME raises their bid for BOT: CME +6.8%, BOT +1.9%, ICE +0.8%... Other news: KBH +5.2% (received a bid for its French subsidiary Kaufman & Broad), ALTI +4.4% (upgraded to Buy at First Albany).

May 10th - Thursday - Gapping up / down

Gapping down on weak earnings/guidance: IFON -20.2%, KNOT -16.9% (also downgraded to Sector Perform at CIBC), WFMI -12.0%, CRUS -9.5%, CRYP -9.2%, JACO -8.8%, WNG -8.7%, MEK -7.2%, EGY -6.9%, SIX -4.5%, PGS -4.5%, RMIX -4.4%... Retailers trading down on weak comps: ZUMZ -5.6%, URBN 5.5%, KIRK -4.6%, BEBE -4.5%, CHS -4.0%, PSUN -3.1%, GPS -2.3%, BONT -1.3%... Other news: DNDN -7.9% (downgraded to Sell at BofA; tgt cut to $4), RTP -5.7% & BHP -2.7% (UBS says RTP/BHP merger not illogical, not impossible, but unlikely), FNSR -4.5% (profit-taking after yesterday's move), BPHX -4.4% (names new CFO).

Gapping up on strong earnings/guidance: HSOA +20.0%, TOA +14.9%, PEIX +14.7% (also upgraded to Hold at Hambrecht), MRGE +12.1% (also announces Fusion aXigate order in France), SCI +11.5%, NKTR +10.7% (also upgraded to Equal-Weight at Morgan Stanley), BNE +6.75, MAIL +5.6%, CLAY +5.3%, HLS +5.2%, KG +4.6%, LOCM +3.5% (very light volume), BVF +3.3%, CNTY +3.3%, DK +2.9%, TFSM +1.8% (reports & confirms it is assessing strategic alternatives; also downgraded to Hold at Jefferies)... Retailers trading up on strong comps: JOSB +5.7%, ARO +1.8%, COST +1.8%... Other news: TRU +20.9% (commences cash tender offer for all units of beneficial interest of Torch Energy Royalty Trust), ENTG +11.3% (commences "Dutch auction" tender to purchase up to 20.4 mln shares between $11-12.25), CEA +10.6% & ZNH +3.1% (Air France to add routes throughout China; also CEA and Singapore Air in final talks on stake), SPAR +9.4% (subsidiary receives $107.6 mln in new Orders in Military Vehicles), GGC +4.8% (upgraded to Buy at Citi), CBI +4.1% (Cramer positive on stock), ONT +3.5% (announces agreement with C2 Microsystems), FWLT +1.6% (tgt raised to $129 at Stifel).

Futures indicate a lower open for stocks. The bulk of April same-store sales figures (ANF, ANN, ARO, DDS, FD, GPS, JCP, WMT) checked in below expectations, raising concerns about the health of the consumer and giving investors an excuse to take some money off the table. In economic news, weekly Initial Claims unexpectedly fell 9K to 297K (consensus 315K), but the Mar Trade Deficit widened a larger than expected $63.9 bln (consensus $60.0 bln) and Apr Import Prices surged a larger than expected 1.3% in Apr, stirring inflation concerns.

Notable pre-market Calls include Upgrades: MA at Stifel Nicolaus, PEIX at WR Hambrecht; Downgrades: TFSM at Jefferies, DNDN at BofA, RSH at Credit Suisse, WFMI at HSBC, RTP at BMO Capital... On the Earnings calendar, SYNM is confirmed to report sometime during trading hours. After the close, 33 cos are confirmed to report including NVDA... On the Economic calendar, the Apr Treasury Budget (consensus $143.0 bln) will be released at 14:00ET.