Cantor Morning News | Overnight Stocks

RIMM, AAPL +/- The U.S. International Trade Commission said it launched an investigation of Research In Motion and Apple smartphones that contain digital cameras after receiving a complaint from Eastman Kodak Co EK. The trade body said it voted to open an investigation after EK alleged patent infringement by RIMM, maker of BlackBerry smartphones, and Apple Inc., maker of the iPhone. http://www.reuters.com/article/idUSN1714129320100217?type=marketsNews

DAI - Daimler's shares tumbled 7.7% in Frankfurt after the German car and truck maker reported a 4Q net loss of 352M euros ($479M), undershooting analyst expectations of a net profit of 277M euros. The loss compares with a 1.53B-euro loss a yr earlier. The earnings follow an announcement Wed. renewing CEO Dieter Zetsche's contract until 12/31/13. By midmorning in Frankfurt, DAI shares traded 9% lower, making it the biggest decliner in the blue-chip DAX index, which traded roughly flat. The co. also said that it won't pay a dividend for 2009 because of its net loss.

http://online.wsj.com/article/SB10001424052748703315004575072792893062102.html?mod=djemalertEuropenews

WSO + Watsco Inc., a U.S. distributor of air conditioning, heating and refrigeration equipment, said that its Q4 earnings more than doubled on profits from a joint venture with Carrier Corp. The co. earned $6.2M, or $.21 p/s, up from $2.5M, or $.10 p/s, in the year-ago quarter. Revenue increased 68% to $564M. Analysts polled by Thomson Reuters expected earnings of $.14 p/s on revenue of $547M. http://www.forbes.com/feeds/ap/2010/02/17/business-specialized-consumer-services-us-earns-watsco_7365259.html

SPG + Simon Property Group warned General Growth Properties that Simon might drop its $10B takeover bid for the co. or go hostile if General Growth didn't come to the bargaining table soon.

"Time is passing and General Growth is inappropriately speculating with creditors' money," the letter states.

http://online.wsj.com/article/SB10001424052748703444804575071611963839430.html?mod=WSJ_hps_LEFTWhatsNews

HTX - Hutchison Telecommunications International Ltd., which controlling shareholder Li Ka-shing plans to take private, said it may need to restate its full-year 2008 and first-half 2009 results as it discusses accounting issues with U.S. securities regulators.

http://online.wsj.com/article/SB10001424052748703315004575072823294321844.html?ru=MKTW&mod=MKTW

GOOG +/- Google has been awarded a patent that describes a software method for selectively restricting the availability of content on the basis of access privileges and geographical location. On the surface, it may look like this patent covers techniques for censoring politically sensitive content in specific countries, a practice that GOOG has recently spoken out against in its ongoing feud with China. A closer look at the patent's claims, however, shows that it has little to do with censorship and may actually relate to the co.'s controversial book scanning initiative.

http://arstechnica.com/tech-policy/news/2010/02/google-patent-covers-automatic-regional-content-filtering.ars

CAR +/- Avis Budget Group Inc. posted a narrower-than-expected quarterly loss, helped by cost cuts and a healthy used car market, but said it expects rental volumes in the Q1 to be lower than in the year-ago period. "We estimate that our domestic fleet costs will decline 4 percent to 6 percent in 2010 on a per-unit basis," the co. said in a statement. For the Q4, CAR reported a net loss of $49M, or $.47 a/s, compared with a loss of $121M, or $1.20 cents a/s, a year ago.

Excluding unusual items, the co. posted a loss of $.25 a/s. http://www.reuters.com/article/idUSSGE61F0GQ20100217?type=marketsNews

Reuters

Oil Futures - Oil fell towards $76 a barrel, dragged down by high inventory levels and a stronger dollar, which also hit gold and other commodities. U.S. light, sweet crude fell, after briefly touching $76.32. London Brent crude dropped. Analysts in a Reuters poll expected the figures from the Energy Information Administration to show an increase of 2.2M barrels in U.S. crude oil inventories in the week to Feb. 12. They forecast an increase in gasoline inventories and a drop in middle distillates stockpiles, including heating oil.

http://www.cnbc.com/id/35449710

MarketWatch.com

GS - German Chancellor Angela Merkel turned up the heat on banks and their involvement in the Greek debt crisis, saying it would be a "scandal" if they had helped Greece bypass European debt restrictions, according to media reports. Greece "falsified statistics for years," Merkel was quoted as saying in a speech to supporters. "It's a scandal if it turned out that the same banks that brought us to the brink of the abyss helped Greece fake the statistics." The New York Times reported that Greece in 2001 had borrowed billions, with the aid of Goldman Sachs Group Inc. qGS, in a deal hidden from public view because it was treated as a currency trade rather than a loan. The European Union demanded from the Greek government that it provide details on its use of currency swaps. In Wed.'s speech, Merkel also said she will push for more regulations of financial markets. GS shares closed down 0.1% at the New York Stock Exchange on Wed.

BBI - Standard & Poor's said it lowered Blockbuster Inc.'s corporate credit rating to CCC from B-, indicating that the video rental chain is "vulnerable to default." "The downgrade reflects our view that performance will remain very challenged and our concern that Blockbuster will not be able to transform its business model over the near term, as we had expected, given the competitive pressures in the rapidly evolving domestic media entertainment industry," said S&P credit analyst Jayne Ross. The outlook is negative.

JALSF +/- Japan Airlines Corp. has presented to eight labor unions plans to reduce employee pay by 5% and eliminate bonuses in the fiscal year which begins in April 2010, Japanese business daily Nikkei reported. The airline will consider adopting similar pay cuts for workers at other group firms, corresponding with their respective wage structures, the report said. The Tokyo carrier, which filed for bankruptcy protection from creditors in a Japanese court in Jan., said earlier this month that as it restructures, it will keep its partnership with American Airlines in the Oneworld Alliance. JALSF had been at the center of a tug-of-war between AMR Corp's qAMR American and Delta Air Lines Inc. qDAL both of which sought a bigger foothold in fast-growing markets in Asia.

WCG +/- WellCare Health Plans Inc. said that it swung to a 4Q profit of $11.1M, or $.26 a/s, from a loss of $31.1M, or $.75 a/s, a yr earlier. The managed care services provider said revenue for the Q rose 1.4% to $1.62B. Adjusted earnings for the latest Q declined to $.47 a/s from $.66 a/s and membership at the end of Dec. fell to 2.3M from 2.5M a yr earlier. FactSet had been expecting adjusted earnings of $.45 a/s on revenue of $1.61B. For '10, WCG said it expects adjusted earnings of between $1.90 and $2.15 a/s. Analysts had forecast 2010 earnings of $2.55 a/s.

BAESY - U.K. aerospace and defense group BAE Systems said that it swung to a net loss in 2009 after taking impairment charges and paying a fine to settle bribery investigations. The co. swung to a net loss of 67M pounds for the yr, from a profit of 1.75B pounds a year earlier. It took a 973M pound impairment charge on the Armor Holdings business it bought in 2007 after failing to win a follow-on contract.

http://www.marketwatch.com/story/story/print?guid=A361F67C-6EAD-4F47-AE87-EF53E696BB62

HPQ, WFC, BK, PFG - Hewlett-Packard Co. has become an unlikely member of a group of companies targeted by the U.S.IRS in a coordinated legal assault on suspect international tax credits. qHPQ is one of roughly a half-dozen firms, nearly all in the banking and insurance industries, now ensnared in the IRS's "three-and-out" litigation strategy targeting so-called foreign tax credit generators, experts say. The IRS has pegged a handful of such cases as promising enough to pursue, in hopes of winning at least 3 decisions in a row, and thereby gaining a more solid legal footing on the issue.

http://www.marketwatch.com/story/story/print?guid=09483C1F-B829-4E21-83C8-D0871B07EC21

TMOAY + TomTom said it returned to profitability in the 4Q as the portable-navigation-device maker said maps on mobile phones are only having a limited impact on sales. TomTom said it earned $.73M euros ($99M) after losing 989M euros in the prior-yr period, when it took a 1.05B euro hit from writing down the value of the TeleAtlas mapping service it acquired. Excluding amortization and impairments, and its adjusted EPS fell 29% to 39 European cents. FactSet had expected earnings of $.21 a/s.

http://www.marketwatch.com/story/story/print?guid=C59D6D38-79F3-4F93-8CBE-708472184BDF

WIN - Windstream Corp. said its 4Q net income slipped to $75.5M, or $.17 a/s, from $81.1M, or $.19 a/s, in the yr-ago period. Total revenues fell to $754.4M from $777.5M. FactSet was looking for EPS of $.20 on sales of $739.4M. For 2010, the provider of high-speed Internet and digital TV services forecast sales in the range of $3.5B to $3.7B, or a decrease of 4% to nil. Wall Street had expected '10 sales of $3B.

Bank of Japan + The Bank of Japan kept its key interest rate on hold at 0.1% by unanimous vote as widely expected, as the central bank repeated its pledge to do all it could to pull Japan out of deflation.

The BOJ said it recognizes that overcoming deflation and returning to a sustainable growth path, with stable prices, is a "critical challenge" for Japan's economy.

http://www.marketwatch.com/story/story/print?guid=9866E33E-3F6E-48EF-9837-3C6EBE9812D2

SPG +/- Simon Property Group Inc. warned that its interest in General Growth Properties Inc. GGWPQ is not openended and urged the GGWPQ to come to the negotiation table to work out a deal soon. In a letter addressed to the real-estate investment trust, SPG said that GGWPQ's "lack of urgency should deeply concern creditors and shareholders." SPG also said that moving quickly to complete a deal will prevent further market risk for GGWPQ's shareholders. SPG said it made an offer to buy GGWPQ in a deal valued at more than $10B.

HPQ + Hewlett-Packard Co. reported a Q1 profit of $2.3B, or $.96 p/s, on revenue of $31.2B. During the year-ago quarter, the computer and printing giant earned $1.9B, or $.75 p/s, on $28.8B in sales. Excluding one-time items, HPQ would have earned $1.10 p/s to beat the estimates of analysts surveyed by TR, who forecast the co. to earn $1.08 p/s on $30B in revenue.

Greece + Greece may issue a 10yr bond next week, aiming to raise around 5B euros ($6.8B), DJ Newswires reported, citing a person familiar with the situation. The person said there was no firm decision on timing.

HNZ + H.J. Heinz Co. raised its earnings outlook for 2010 to a range of $2.82 to $2.85 a/s, thanks to "dynamic growth in emerging markets." For the Q3, the ketchup giant said it expects to report a profit of $.82 a/s. Analysts polled by FSR previously forecast a profit of $.72 p/s for the quarter and $2.82 for the year.

U.K. January Deficit - Britain's public sector borrowed a net 4.3B pounds ($6.8B) in Jan., pushing the nation's net debt to 848.5B pounds, equal to 59.9% of GDP, the Office for National Statistics reported. Economists had expected a net repayment in Jan. of 2.8B pounds, according to DJ Newswires. The British pound slipped vs. the U.S. dollar to trade at $1.5582, a loss of 0.6% on the day.

CHK +/- Chesapeake Energy Corp. reported Q4 net loss of $530M or $.84 p/s, compared with a loss of $1B, or $1.74 p/s in the same period last year. Adjusted Q4 income was $490M or $.77 p/s. Revenue fell to $2.22B from $2.98B a year ago. Analysts polled by FSR were looking for adjusted earnings of $.68 p/s on $1.86B in revenue.

ADI + Analog Devices Inc. said its Q1 net income rose to $120.5M or $.40 p/s, from $25M or $.08 p/s in the same period last year. Excluding restructuring costs, the co. would have earned $.43 p/s. Revenue increased 26.5% to $603M, the semiconductor co. said. Analysts surveyed by FSR had forecast earnings of $.38 p/s and $576.8M in revenue. In Q2, ADI expects revenue of $635M to $650M and adjusted earnings of $.48 to $.51 p/s.

AMAT +/- Applied Materials reported Q1 earnings of $82.8M or $.06 p/s, compared to a net loss of $132.9M or $.10 p/s, for the same period last year. The co. said earnings on a non-GAAP basis would have been $179M or $.13 p/s, for the recent period. Revenue jumped 39% to $1.85B. Analysts were expecting earnings of $.13 p/s on revenue of $1.75B, according to consensus estimates from TR.

JACK - Jack in the Box posted a sharp drop in fiscal Q1 profit, dragged down by slumping same-stores sales, the fast-food chain said. The co. earned $24.2M or $.43 p/s, down from $28M or $.49 p/s, in the same quarter a year ago. Revenue slumped to $681M from $777M as same-store sales fell 11.1%. The average estimate of analysts polled by FSR had been for co. to earn $.45 p/s on revenue of $675M. Looking to the rest of the fiscal year, the co. said it expects a 5% to 8% decrease in same-store sales with earnings p/s in a range of $1.85 to $2.05.

Gold Futures - Gold futures fell sharply after the IMF announced plans to sell 191.3 tons of gold on the open market. The sale is part of a total of 403.3 metric tons designated for sale last Sept. Gold futures for April delivery dropped $18.50, or 1.6%, to $1,101.60 an ounce in electronic trading on Globex.

http://www.marketwatch.com/story/story/print?guid=BEEAE404-BC17-42D7-9E22-2E3F9782AF84

PCLN + Priceline.com Inc reported its Q4 net income doubled to $78.5M or $1.55 p/s, from $34.2M or $.75 p/s, in the same quarter last year. On an adjusted basis, co. would have earned $1.99 p/s. Revenue rose 33.4% to $541.8M. "Worldwide gross travel bookings growth accelerated in the 4th quarter due to strong underlying fundamentals, weak results in the prior year period amidst the global recession and improving currency and ADR comparisons," said CEO Jeffery Boyd.

NVDA + Nvidia Corp. posted Q4 net income of $131.1M or $.23 p/s, compared to a loss of $147.7M or $.27 p/s in the same period a year earlier. Revenue more than doubled to $982.5M. Excluding special items, NVDA said earnings were $.23 p/s. Analysts polled by TR had expected NVDA to post earnings of $.20 p/s, and $957.2M in revenue.

NTAP + NetApp Inc. reported Q3 earnings of $107.9M or $.30 p/s, compared to a net loss of $81.6M or $.25 p/s, for the same period last year. The co. said earnings on a non-GAAP basis would have been $144M or $.40 p/s, for the recent period. Revenue jumped 35% to $1.01B. Analysts were expecting earnings of $.38 p/s on revenue of $954.5M, according to consensus estimates from TR.

GSK, XNPT - The FDA issued a complete response letter and declined to clear for marketing Horizant, a drug being developed for restless-leg syndrome, GlaxoSmithKline and XenoPort Inc. said in a statement. The agency "indicated that a pre-clinical finding of pancreatic acinar cell tumors in rats was of sufficient concern to preclude approval" of the drug right now, the U.K. health-care giant and the biopharmaceutical co. XenoPort Inc said. The FDA said that "similar findings were known" for the drug, generically gabapentin enacarbil, when it was cleared for use against refractory epilepsy, but the agency "concluded that the seriousness and severity of refractory epilepsy justified the potential risks," the companies said. GSK and XNPT are in talks with the FDA and deciding what to do next.

FT.com

FRE, FNM +/- Fannie Mae and Freddie Mac will no longer be allowed to use subprime mortgages and second-lien loans to meet government-mandated goals for helping low-income Americans buy homes, according to proposals by their regulator. The new rules proposed by the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, are designed to discourage the risky behaviour that helped create the housing crisis.

http://www.ft.com/cms/s/0/3701459a-1c27-11df-86cb-00144feab49a.html

Dow Jones News Service

TEX +/- Terex Corp. reported a Q4 loss of $142.8M or $1.32 p/s, compared with a year-earlier loss of $421.5M or $4.46 p/s. The latest results included $27M in restructuring charges. The loss from continuing operations was $1.06 compared with a year-earlier loss of $4.78. Revenue dropped 36% to $1.06B. Analysts estimated a loss of $.49 on revenue of $1.24B, according to a poll by TR.

LVS +/- Las Vegas Sands Corp. reported a Q4 loss of $67.4M or $.17 p/s, narrowing from a year-earlier loss of $111.3M or $.27 p/s. Excluding write-downs and other impacts, the latest quarter had a $.03 profit, compared with prior-year red ink of $.04. Total revenue increased 16% to $1.38B, and revenue, minus promotional allowances, grew 18% to $1.28B. Analysts estimated earnings of $.03 on adjusted revenue of $1.23B, according to a poll by TR.

AAP +/- Advance Auto Parts Inc. posted a Q4 profit of $34.5M or $.36 p/s, up from $24.4M or $.26 p/s, a year earlier. The store-closing charges and other impacts, earnings fell to $.39 from $.41. Sales rose 3.6% to $1.14B. Analysts polled by TR expected earnings of $.46 on sales of $1.15B.

Bloomberg.com

WMT + Wal-Mart Stores Inc. posted 4Q adjusted profit of $1.17 a/s. Analysts estimated $1.12 on average.

The Dollar + The dollar rose toward a 9-month high against the euro as signs the U.S. economy is gaining momentum added to speculation the Fed. will be one of the first major central banks to remove stimulus measures. The greenback advanced vs 14 of 16 major currencies, helped as gold prices fell after the IMF said it would begin selling bullion. The dollar extended gains against the euro amid speculation European lenders may need more short-term funding from central banks amid Greece�s fiscal crisis. U.S. reports today may show the Conference Board�s index of leading economic indicators rose for a 10th month and growth in Philadelphia-area manufacturing.

http://www.bloomberg.com/apps/news?pid=20601083&sid=aM86zunTNTc0#

Treasury Yeilds + Treasury 10yr yields were near the highest in 5 weeks before a government report that economists said will show producer-price inflation accelerated last month, damping the allure of government debt. U.S. notes fell after minutes of the Fed�s Jan. meeting showed policy makers boosted forecasts for economic growth and inflation and discussed starting sales of assets in the �near future.� The U.S. will today announce $128B in debt sales next week, according to Wrightson ICAP LLC, an economic advisory firm.

http://www.bloomberg.com/apps/news?pid=20601009&sid=aK3WrpS4_VLo

The Fed +/- Federal Reserve officials set a long-term goal to keep only U.S. government securities in their portfolio as they debated how and when to pull back on the most aggressive monetary policy in U.S. history. Central bankers are planning to eventually remove $1.43T of housing debt from the balance sheet after critics such as Stanford University economist John Taylor accused them of straying beyond monetary policy. Philadelphia Fed President Charles Plosser said yesterday that the Fed�s purchases of housing debt expose it to demands from politicians to support other industries.

http://www.bloomberg.com/apps/news?pid=20601087&sid=ao4y7cgY.Y80&pos=7#