• Priceline.com (NASDAQ:PCLN) reported adjusted third quarter earnings of $3.45 a share, 55 cents above consensus estimates, on better-than-expected revenues of $730.7 million, ahead of estimates of $$693.97 million on strong summer season travel. The firm provided fourth quarter guidance at about $1.06-$1.16

• Electronic Arts (NASDAQ:ERTS) said it plans to cut 1500 additional jobs. The firm reported second quarter adjusted earnings of 6 cents, a one penny miss, on revenues of $1.15 billion, which slightly topped Street projections of $1.12 billion. The firm forecast 2010 earnings of $0.70-$1.00, topping estimates of 89 cents on revenues of $4.2-$4.4 billion versus estimates of $4.26 billion

• Cadbury (NYSE:CBY) rejected the latest Kraft (NYSE:KFT) bid calling it "derisory"

• Moody's (NYSE:MCO) commented that AIG (NYSE:AIG) will be able to repay its Federal loans

• Wells Fargo (NYSE:WFC) lifted its growth expectations for the semiconductor group following release of third quarter numbers. Intel (NASDAQ:INTC) remained its first

• Starbucks (NASDAQ:SBUX) reported fourth quarter earnings of 24 cents a share, up from last year's 10 cents, above Zacks estimates of 21 cents, as revenues dropped 3.7% to $2.42 billion. The firm raised its 2010 guidance to 15-20% earnings growth from prior guidance of 13-18% growth

• Hyatt Hotels (NYSE:H) shares gained 12% on their NYSE debut.  The company sold 38 million shares at $25 per share

• JP Morgan (NYSE:JPM) lifted its price target on Ford (NYSE:F)

• The smartphone marketplace will watch today's launch of Verizon's (NYSE:VZ) much-heralded new "Droid" launch, using Google's (NASDAQ:GOOG) Android operating system

• AIG (NYSE:AIG) reported third quarter earnings of $2.85 ex-items

• Bernstein upgraded General Electric (NYSE:GE) and Amazon.com (NASDAQ:AMZN) shares

• JP Morgan (NYSE:JPM) upgraded Macy's (NYSE:M) shares

• Deutsche Bank (NYSE:DB) upgraded Blue Nile (NASDAQ:NILE) shares, lifting the price target from $30 to $50

Traders were back on the buying table Tuesday, adding to their holdings even as they remained glued to the Fed for its take on the economy, interest rates and inflation.  Banks and industrial companies led the advance as stocks zoomed to new highs for 2009.  Nevertheless, uncertainty remained if the Central Bank will offer any detail on an exit strategy. 

The 30-share Dow Jones industrial average finished higher by 51 points, or 0.52%, at 9,829.87. The broad Standard & Poor's 500-stock index gained 7 points, or 0.66%, at 1,071.66 and the technology-laden Nasdaq composite index gained 8.26 points, or 0.39%, to 2,146.30.  Treasury prices rallied after the government’s successful auction of $43 billion in two-year notes.

Meanwhile, dollar continued its downward spiral against other major currencies, sending energy and material shares higher.  Gold and crude prices also advanced.  Gold reached $1014 per ounce, up $12.50, and oil, after a

U.S. stocks ended the day mixed as concerns grew that a six-month old rally has gone ahead of any economic recovery.  A drop in crude prices on global demand concerns sent energy shares lower.  Also, investors appeared jittery ahead of the two-day policy meet and Friday's key post of August durable goods, and refrained from adding to their holdings.  Defensive areas like healthcare rose.  Technology shares also found some favor with investors after Dell announced plans to acquire Perot Systems in a $3.9 billion deal.

This morning’s stock futures indicate Wall Street is headed for a higher opening, helped by a rally in global stocks.  Ahead of the market’s open, Dow Jones industrial average futures rose 48, or 0.5%, to 9,766.  Standard & Poor's 500 index futures were up 6.20, or 0.6%, to 1,066.60, while Nasdaq 100 index futures rose 10.75, or 0.6%, to 1,738.50.  Ahead of the FOMC

• Merck (NYSE:MRK) announced its plans to abandon an experimental treatment for migraines and to review Phase III clinical data on another migraine drug

• Morgan Stanley's (NYSE:MS) CEO John Mack will be replaced before year-end by current co-president James Gorman

• Abbott Labs (NYSE:ABT) announced that it bought the 90% of Evalve that it does not already own for $410 million

• Bank of America (NYSE:BAC) cut its rating on Electronic Arts (NASDAQ:ERTS) to "neutral"

• Wells Fargo (NYSE:WFC) lowered its rating on AIG (NYSE:AIG) to "underperform" asserting the firm currently is trading "significantly" above book value

• National Semiconductor (NYSE:NSM) reported fiscal first quarter earnings of 13 cents a share, 6 cents above estimates on revenues of $314 million

Increased activity on the merger and acquisition front and promising signs that the economic downturn is easing sent U.S. stocks higher Tuesday as traders, back after a long weekend, picked up energy and commodity stocks.  With traders turning to riskier bets, Treasury prices sank, sending corresponding yields higher.  Positive factors sent gold prices beyond the $1,000 per ounce mark, before prices eased a little to settle at $997.80.  Dollar declined 1.1% to $1.4498 per euro.  Copper prices gained 3.1% on improved global recovery prospects.

The 30-share Dow Jones industrial average rose 56 points, or 0.6%, to 9,497.34 and the S&P 500 index added 9 points, or 0.9%, to 1,025.39, its highest close in 11 months.  The tech-heavy NASDAQ added 19 points, or 0.94%, to close at 2,037.77 points. On the New York Stock Exchange, advancing issues outpaced those that declined three to one on volume of 1.32 billion shares. 

• JP Morgan (NYSE:JPM) upgraded General Electric (NYSE:GE) to "overweight" from "neutral," and lifted its price target to $17, on relative valuation measures

• AIG (NYSE:AIG) was downgraded to "underperform" at Credit Suisse (NYSE:CS), with its price target lowered to $15 from $30, and 2009 estimate cut to a $13.98 loss, with 2010 initiated at an estimate of $5.70

• Smithfield Foods (NYSE:SFD) reported a fiscal first quarter loss of 56 cents a share, three cent under expectations versus last year's 17 cent loss, on revenues of $2.7 billion, off estimates of $2.8 billion

• Kraft (NYSE:KFT) advised its will continue to pursue its unsolicited offer for Cadbury (NYSE:CBY), after Cadbury rejected the firm's $16.7 billion cash and stock bid

• Airbus turned positive, projecting an air passenger volume rebound. In 2009 passenger volume is estimated to drop 2%, in 2010 to climb 4.6%, and in 2011 to soar 7%

• Goldman Sachs (NYSE:GS) upgraded

By Simon van Norden

Today, we're fortunate to have Simon van Norden, Professor of Finance at HEC Montréal (École des Hautes Études Commerciales), as a guest blogger.

"Once you've seen one financial market crisis...you've seen one financial market crisis."

-- Attributed to Federal Reserve Board Governor Kevin Warsh by former US Treasury Assistant Secretary for Economic Policy Phillip Swagel in The Financial Crisis: an Inside View, March 2009, p. 4.

The financial crisis has set a lot of records so far; it's certainly the worst US banking crisis of my lifetime. Some, as suggested by the above quote, see such crises as unique events; each one is singular and there's not much to be learned about how to handle one from looking at past crises. For example, there's no precedent that I know of for a banking crisis involves the failure of the biggest counterparties for credit default swaps.

A pair of positive economic news failed to lift sentiments on the Street as mounting worries that the six-month old rally has gone ahead of the economic recovery led to a nervous selling and all major indexes closed sharply lower.  That September has historically been a rough month for stocks is also a factor why investors appear disinclined to jump into the fray and many say a break in the six-month old rally is on the cards.

On Tuesday, the Dow Jones industrial average, after gaining over sixty points in the morning, nose-dived 185.68 points, or 2%, to 9,310.60.  Since Friday, the index has lost 270 points, or 2.8%.  The S&P 500 fell 22.58, or 2.2%, to 998.04, while the Nasdaq composite index fell 40.17, or 2%, to 1,968.89.  Treasuries, which usually benefit from a fall in stocks, could garner only moderate gains.  Volume picked up on the NYSE

• The head of Boeing's (NYSE:BA) aircraft division announced plans to retire, following last week's long-awaited release of its Dreamliner schedule

• AIG (NYSE:AIG) and its former CEO and CFO have reportedly agreed to terms of binding arbitration in settling claims from shareholders regarding lost investments due to financial restatements

• Apple (NASDAQ:AAPL) will host a September 9, music-themed media event in San Francisco, expected to include a new iPod line, with a Beatles' catalogue available on its iTunes store

• Sony (NYSE:SNE) will distribute Google's (NASDAQ:GOOG) Chrome browser on its Vaio PCs

• Media reports said Bank of America (NYSE:BAC) is planning to repay part of the $45 billion in government aid recovered from TARP, beginning with a $20 billion repayment.  The move would remove its status as a recipient of "exceptional aid," allowing certain government oversight measures to be lifted

• EBay (NASDAQ:EBAY) is expected to announce plans to sell its Skype Internet