Highlighted stocks include Baidu.com (BIDU), Sohu.com (SOHU), United Online (UNTD) and Yahoo (YHOO).

Key Points: Despite the resignation of Jerry Yang, forecasts are trending downward for Yahoo Other Internet companies are doing well, however, such as Sohu.com and United Online

Without Merger, Few Positive Catalysts For Yahoo Over The Short-Term

Yesterday, Yahoo (YHOO) announced the resignation of Jerry Yang from the CEO post. The announcement was met with cheer as shares rose by nearly a buck to $11.55.

Playing a role in the upward move were speculators hoping for renewed merger talks with Microsoft (MSFT). The problem is that there is no guarantee that a merger will occur.

Without a merger, there are few catalysts for the stock. Naming a well-respected outsider as a CEO might help, but the company is struggling with both tough competition and a weak economy.

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Another day, another hair-pullingly tumultuous stock market. Zacks Senior Market Analyst Charles Rotblut, CFA was thankfully on-hand to talk us through this most precarious time with practical knowledge of what we should be doing next.

The markets recouped some of their losses late yesterday. Is this a sign that a bottom has been set?

A lot of people have been trying to predict when stocks will stop falling, and nearly all of these people have been wrong. It's very difficult to predict a market bottom, or top. And for the overwhelming majority of investors, it does not matter.

Rather, investors should be focusing on looking for fundamentally sound companies with rising earnings estimates that are trading at attractive valuations. This is a strategy that has worked over the long-term and will continue to work in the future.

So, when will investors feel safe investing?

Over the short-term, there is a real risk that

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The last thing the markets want is uncertainty, and right now, we have a lot of uncertainty.

As I started to write this on Thursday afternoon, a group of House Republicans announced a new proposal of $250 billion, a change in the way future funding is approved and a call to drop the pork from the Senate's version.

Though I think Congress should consider alternative plans, yesterday's press conference showed that it is still questionable as to whether there is enough support to pass the proposal. The inclusion of pet projects and special tax breaks showed that some Senators needed to be persuaded to support the bailout. Speaker of the House Nancy Pelosi is against changing the bill before vote, so it will be interesting to see what House Republicans choose to do. (A vote should start soon after this column is published.)

Rate Cut Coming?

On Friday morning, there

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As I write this on Friday morning, there is scuttlebutt that several central banks could announce rate cuts on Monday morning. Though the rumors are unconfirmed, fed fund futures are pricing in a significantly higher probability of a half-point cut occurring at the late-October meeting.

Alcoa (AA) will "officially" kick off earnings season when it reports on Tuesday afternoon. The aluminum maker is expected to announce profits of 60 cents per share.

Joining AA throughout the week will be fellow S&P 500 members: Costco (COST), Chevron (CVX), General Electric (GE), Host Hotel & Resorts (HST), Monsanto (MON), Progressive (PGR), Safeway (SWY) and Yum! Brands (YUM).

The minutes from the September Fed meeting will be released on Tuesday afternoon. If a rate cut is announced on Monday morning, the significance of these minutes would be reduced. Nonetheless, the notes will be

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Key Points: Urea prices fell by more than $70 in late September A strike is helping to support potash prices Some analysts are raising 2009 earnings forecasts Highlighted stocks include AGU, CF, MOS, POT and TRA

Fears that fertilizer companies could be losing pricing power sent their shares tumbling late last week.

The primary cause was a sharp drop in urea prices. A report published last Thursday on Farm Futures revealed a $70 decline in Black Sea prices over the previous 2 weeks. (Ammonia prices were weaker as well.)

Urea is a key ingredient used in fertilizer. Traders are concerned that the recent drop is an early signal of slipping demand for fertilizer. Any weakness would call into question fourth-quarter and 2009 profit forecasts for Agrium (AGU), CF Industries (CF), Mosaic (MOS), Potash of Saskatchewan (POT) and Terra Industries (TRA).

It is possible that some farmers are choosing

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As I write this on Friday morning, I cannot tell you what is going to happen with the financial bailout.

The proposal currently on the table is a definite improvement over the original version. It establishes oversight, calls for detailed reports, requires taxpayers get equity in participating firms and includes provisions for mortgage modifications. It asks that profits earned from the selling of distressed assets be used to pay down the national debt. The Wall Street Journal has an outline of the modified proposal.

A large group of House Republicans oppose the government intervention and want a market solution instead. Their proposal, which lacked details last night, calls for the government to insure the bad debt. While I welcome alternative plans, I don't see how this version helps the crisis.

I don't like the modified Paulson plan either, but right now, it is the best proposal we have. The

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As I write this on Friday morning, we are continuing to await a final decision on the proposed bailout of financial firms. The final outcome will impact market direction.

I would expect a short-term relief rally if the proposal is passed and signed. Failure to reach an agreement, however, could result in stocks setting new lows for the year.

Third-quarter earnings season will not "officially" start until Oct 7, when Alcoa (AA) reports. Nonetheless, 21 companies are confirmed to report during the week of Sep 29 - Oct 3. Among these are S&P 500 members Constellation Brands (STZ), Family Dollar (FDO), Marriott International (MAR), Micron Technology (MU), Pepsi Bottling Group (PBG) and Walgreen (WAG).

September employment data will be released on Friday, capping a busy week for economic data. Monday: August personal income and spending Tuesday: Conference Board September consumer confidence survey, September Chicago PMI Wednesday:

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The big bailout will be a key focus of the markets.

Congress is expected to meet over the weekend to discuss legislation proposed by Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson. The details of the proposal, and any additional measures designed to help homeowners struggling with mortgage payments, could impact market direction.

The temporary ban on short selling could also affect trading early in the week. Part of Friday's rally was the result of quadruple witching. Traders are being forced to close short positions rather than roll them over into new contracts.

On the earnings front, we have confirmed reports from 33 companies. Included in this group are S&P 500 members Autozone (AZO), Bed Bath & Beyond (BBBY), Discover Financial (DFS), Jabil Circuit (JBL), KB Home (KBH), Lennar (LEN), McCormick (MKC), Nike (NKE) and Paychex (PAYX). I expect

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Quadruple witching has led the fourth day of triple-digit intraday moves for the Dow. The ban on short-selling forced many traders to close out their positions rather than roll them over.

The big gains on Friday were really just an extension of what we saw on Thursday. Anyone who did not own stocks at lunchtime on Thursday missed out on the rally. The rally happened too fast for most investors to take advantage.

The speed and intensity of the rally demonstrated the importance of maintaining an allocation to stocks. The biggest rallies often happen without much forewarning.

Therefore, it is important to continue to focus on the long-term. Over time, stocks have consistently created more wealth than any other investment vehicle. A diversified portfolio will weather bear markets and will thrive in bull markets.

Our Strategy for the Focus List

In managing the Focus List, we treat each stock pick

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The calendar had caused me to anticipate volatility this week. Goldman Sachs (GS), Morgan Stanley (MS), FedEx (FDX) and Oracle (ORCL) will release quarterly results. The Fed will meet on Tuesday. (No change in rates is expected, but given the Lehman situation, there is a small possibility that a quarter-point cut could be announced.) Friday is a quadruple-witching day, meaning the simultaneous expiration of options and futures contracts. Now, the markets will also have to contend with the aftermath of Hurricane Ike and the fallout from Lehman Brothers. As former Houstonians, my wife and I spent a lot of time this weekend on the phone with friends and family. At this point, we have no idea what condition my wife’s parent’s house is in. (They live in Houston’s southern suburbs.) We do know that there has been

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