It’s not that bonds are bad, it’s just that they’re misunderstood.

Matt’s right to suggest that investors in BlackRock’s iShares TIPS ETF (NYSEArca: TIP) may not really understand what they’re buying, but he stops short of actually explaining what TIP investors should really be expecting. Let’s take a look at how TIPS (in this case, represented by the BarCap US Inflation Linked Bond Index) has done vs. the Consumer Price Index since the mid-90s. I tossed in a line for the fed funds target just for fun:

 

 

There are a few things worth noting.

First, as Matt suggests, in general, the moves in TIPS have little to do with the actual fluctuations in the CPI. That’s not because they’re broken; it’s simply that movements in the bond market have historically

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Neah Power Systems Inc. is developing long-lasting, efficient, safe and renewable power solutions for the consumer, industrial and military markets. Neah uses a unique, patented, porous, silicon-based design for its micro fuel cells that enable higher power densities and lower cost.

The company announced today that Neal Kaufman will assist management in the company’s transition from primarily a research and development firm to one that has products moving towards commercialization and revenue generation. Neah Power feels this is necessary as it moves to its next stage in development. The company has made significant strides in technology and product development as well as operating cost reductions. Neah Power’s unique fuel cell has shown continuous run times of more than 2,000 hours and the company is now taking orders for their fuel cells.

Mr. Kaufman will join the advisory committee of Neah Power. He has significant experience working with large and small high-tech

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BJ’s Wholesale Club Inc. (BJ), a leading warehouse club operator in the United States, recently reported sales for the four-week period ended January 30, 2010. Sales for the month jumped 13% to $742.6 million from $656.9 million reported in the same month last year.   Comparable club sales rose 8.4% for January 2010 versus a decline of 0.7% in the same month last year. Gasoline sales positively impacted the comparable club sales during the reported month by 5.5%. However, it influenced the prior-year January sales negatively by 8.3%.   Excluding gasoline, merchandise comparable club sales climbed 2.9% versus an increase of 7.6% last year. BJ's hinted that merchandise comparable club sales for the month under review would have increased another 2% had the Super Bowl been held in January 2010, as in 2009.   Excluding gasoline sales, traffic rose nearly 5% year-over-year in the month, whereas the average ...

NYSE Euronext, Inc.’s (NYX) fourth quarter operating earnings per share of 58 cents came in decisively ahead of the Zacks Consensus Estimate of 48 cents. Earnings were also ahead of the 52 cents per share recorded in the year-ago quarter and 53 cents in the prior quarter. Results reflect increasing momentum in the business model and the continuing benefit from the various cost reduction programs, including 14% year-over-year reduction in staff members. The company also benefited from the acquisition of NYFIX Marketplace and semi-mutualization of NYSE Liffe U.S. Accordingly, operating net income increased to $151 million compared to $137 million in the year-ago quarter.   NYSE reported GAAP net income of $172 million or 66 cents per share as compared to a net loss of $1.3 billion or $5.06 per share for the prior year quarter. These include the impact of merger expenses and exit costs and ...

Unisys Corporation (UIS) reported revenues of $1.21 billion in the fourth quarter of 2009, down 5% year over year. Foreign exchange rates had an approximately 5 percentage-point positive impact on revenue in the quarter.

Revenue in the United States declined 14% to $495 million. Revenue in international markets increased 1% to $715 million.

On a segment basis, revenue from the services segment declined 9% year over year. Customer orders in this segment showed mid single-digit declines from year-ago levels as growth in outsourcing orders was offset by declines in systems integration and consulting orders. Revenues from the technology segment increased 19% year over year. The technology business grew revenue 19% in the quarter, driven by strong sales and ClearPath systems (a family of enterprise-class servers).

Gross margin improved to 28% from 18.6% in the year-ago quarter, driven by cost efficiencies in services delivery and strong sales of ClearPath servers in the current

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Wholesale Inventories are expected today at 10:00 AM EST. Wholesale Inventories had increased by 1.5% in November to the $386.3 billion level and were down 11% from a year ago. Wholesale Sales had increased by 3.3% in November to $337.4 billion. Sales of durable goods were up by 1.9% and sales of nondurable goods were up 4.4% over the month. The Inventory/Sales ratio was at 1.14, compared to 1.29 recorded a year ago.

Upcoming Releases Trade Balance (02/10 at 8:30 AM EST) Crude Inventories (02/10 at 10:30 AM EST) Treasury Budget (02/10 at 2:00 PM EST)

Zacks Investment Research

Vulcan Materials Company (VMC) reported loss from continuing operations of 10 cents per share, below the Zacks Consensus Estimate of a break-even in the fourth quarter of 2009.

In the fourth quarter, aggregates shipments declined 23% year over year, reducing earnings $0.57 per diluted share. Aggregates pricing increased 5%. Aggregate cash fixed costs decreased 8% compared to the year-ago quarter. Selling, administrative and general expenses declined 7%. Total contract awards for highways increased 13% in Vulcan-served states.

Key Vulcan-served markets in the Mid-Atlantic, Southeast, Midwest, and Southwest regions were hampered by an unusually large amount of rainfall throughout the quarter. Additionally, aggregates volumes were negatively affected by the varied timing of spending of stimulus-related funding, uncertainty regarding timing and duration of an extension of the federal highway bill and the lack of visibility about the timing for ultimate passage of the new multi-year highway bill.

Construction activity on stimulus-related highway projects has

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• Biogen Idec (NASDAQ:BIIB) posted better-than-estimated fourth quarter results of $1.20, beating Zacks estimates of $1.05, on inline revenues of $1.1 billion.  The company said it sees full year earnings of $4.50 a share

• International Flavors and Fragrances (NYSE:IFF) reported fourth quarter results of 63 cents, three cents better than Zacks estimates, on sales of $586 million, versus Zacks estimates of $572 million

• Molson Coors (NYSE:TAP) released fourth quarter results of $1.02, below Zacks estimates of $1.09

• Coventry Health (NYSE:CVH) announced fourth quarter earnings of 74 cents, above Zacks estimates of 56 cents, on inline revenues of $3.4 billion

• NYSE Euronext (NYSE:NYX) reported better-than-expected results of 58 cents, versus Zacks estimates of 48 cent estimates on revenues of 640 million, versus Zacks estimates of $637 million

• Bernstein upgraded Verizon (NYSE:VZ) to "overweight"

• Bank of America (NYSE:BAC) upgraded Monsanto (NYSE:MON) to "buy" with a price target of $96

• SAP (NYSE:SAP) was upgraded from "underweight" to "market weight" by analysts

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Yesterday, after market close, ADC Telecommunications Inc. (ADCT) declared financial results for the first quarter of fiscal 2010. Due to a change in the company’s reporting fiscal year, management has compared results for the three month period ended December 31, 2009 with the proforma results of its comparable quarters.   On a GAAP basis, net income in the first quarter 2010 was $3.6 million or an income of 4 cents per share compared to a net loss of $48.4 million or a loss of 46 cents per share in the prior-year quarter. However, adjusted net income (excluding $1.7 million of net special charges, net of taxes) in the reported quarter was $1.9 million or an income of 2 cents per share, significantly above the Zacks Consensus Estimate of a loss of 1 cent per share. This was primarily due to an overall effective cost management strategy.   Quarterly ...

Stocks took another plunge Monday with the Dow average closing below 10,000 for the first time in three months as lingering worries about European government finances and a potential regulation spooked investors.  In a sign that sentiments remain jittery, some better-than-expected profit reports were overlooked by market participants.

Also, German software maker SAP AG was in focus after its chief executive unexpectedly quit his post and the company said his contract would not be renewed.  

The Dow Jones industrial average fell 103.84 points, or 1%, to 9908.39 as Bank of America (NYSE:BAC) led the index lower with a 3.5% drop.  JP Morgan (NYSE:JPM) closed down 1.6%, to 37.70 and Wells Fargo, which is not a part of the Dow average, lost 3.6%.  The tech-heavy Nasdaq closed off 0.7% and the broader S&P 500 index closed little changed.

Reports that European Union President Jean-Claude Trichet is cutting short a visit to Australia to attend

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