The company will also review operations in Hawaii and Africa (outside of South Africa). However, Chevron did not expect to close any refineries, unlike French oil major Total SA (TOT) that announced the shut down of refining operations at its plant in Dunkirk, France, in response to falling demand.
 
Ultimately, Chevron plans to trim its refining business’ presence to 40 markets, versus 93 last year, and own 1,900 filling stations, down from 3,200 in 2009.
 
Upstream Focus
 
Underscoring the dim prospects of the downstream business, Chevron has decided to concentrate on natural gas and Asian assets. The second-largest U.S. oil company by market value after ExxonMobil Corp. (XOM) also said that it expects its annual production to increase 1% through 2014 and by 4 – 5% in the three years after that, driven by two big Australian gas projects (Gorgon and Wheatstone).

Over the next three years, Chevron is looking to approve or start 25 new upstream projects with an investment of at least $1 billion.
 
Like its rivals, Chevron sees natural gas playing an important part in its future. Already, the company’s liquid reserves have fallen to 62% of its total in 2009, down from 66% a year before. Chevron said that it expects natural gas to represent 41% of total volumes by 2017, up from the current share of 31%.
 
Our Take
 
In view of the increasingly bearish outlook for the marketing and refining operations, we believe that Chevron has taken the right decision by looking to streamline its loss-making downstream portfolio, a plan that has been followed by several other oil majors, including Royal Dutch Shell PLC (RDS.A) and ConocoPhillips (COP).
 
The company plans to boost returns and remain competitive in this difficult environment by embarking on aggressive cost reduction initiatives, exiting unprofitable markets, and streamlining the organization. As of now, Chevron has decided to boost focus on the more lucrative and well performing ‘upstream’ exploration and production end of the business (mainly natural gas and Asia), both at home and abroad.
 
Company Overview
 
San Ramon, California-based Chevron is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals and other energy-related businesses.
 

Chicago, IL – February 1, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft (MSFT), Amazon (AMZN), Apple Inc. (AAPL), Intel (INTC) and Chevron Corporation (CVX).

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Here are highlights from Friday’s Analyst Blog:

Fastest Economic Growth in Years

While some folks think lightly of such inventory-led economic growth, it is nothing to scoff at. The slowdown in inventory liquidations at the start of the turnaround, as we saw this quarter, helps bring back production facilities to work, giving a shot in the arm to the rest of the consumer-centric economy. But it is true that we need other sectors to start taking the economic growth baton from inventory liquidation in the coming quarters.

We are seeing some early signs of that recovery. The all-important consumer spending has been up and signs of life are clearly visibile in industrial production numbers. Even the housing sector -- the epicenter of this downturn -- is showing some signs of economic growth.

We have seen ample evidence of this turnaround in every sector of the economy this earnings season, with company after company coming up with better-than-expected numbers. This morning, Microsoft (MSFT) came out with record revenue and provided a robust outlook, while last night Amazon (AMZN) reported impressive numbers. And Apple Inc. (AAPL) and Intel’s (INTC) record numbers just a few days back are still fresh in our memory. And it is not only about the tech sector -- we are seeing signs of stability in the banking sector as well, regulatory uncertainties notwithstanding.

All in all, we are increasingly getting more confident in our outlook for sustainable economic growth. We see enough signs of latent strength to help propel this economy on its own once the stimulus starts tapering off in the second half of the year.

Chevron Misses on Weak Refining

Chevron Corporation (CVX) posted weaker-than-expected fourth-quarter 2009 earnings, pulled down by sharply lower downstream results on the back of depressed refining margins. This was partially offset by higher commodity prices and growing production in its upstream segment.

Earnings per share (excluding foreign-currency effects) came in at $1.57, below the Zacks Consensus Estimate of $1.69. Compared to the fourth quarter of 2008, Chevron’s adjusted earnings per share fell 17.4% (from $1.90 to $1.57). However, quarterly revenue of $48.7 billion was up 7.7% from the year-earlier level, driven by robust E&P results.

Chevron’s quarterly miss didn’t come as a major surprise. Though there were no estimate revisions in either direction over the last 7 days, earnings estimates for the company have been trending slightly down over the past month, with the quarterly Zacks Consensus Estimate going down by a penny. Overall, 8 out of the 15 analysts covering the stock pulled back on fourth quarter projections during that time, while 3 raised their estimates.

With respect to earnings surprises, Chevron has had a bearish run over the last four quarters (including the quarter under discussion). This is the company’s 3rd negative surprise in the past 4 quarters.

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Earnings per share (excluding foreign-currency effects) came in at $1.57, below the Zacks Consensus Estimate of $1.69. Compared to the fourth quarter of 2008, Chevron’s adjusted earnings per share fell 17.4% (from $1.90 to $1.57). However, quarterly revenue of $48.7 billion was up 7.7% from the year-earlier level, driven by robust E&P results.

Reported Quarter vs. Estimate Revisions Trend

Chevron’s quarterly miss didn’t come as a major surprise. Though there were no estimate revisions in either direction over the last 7 days, earnings estimates for the company have been trending slightly down over the past month, with the quarterly Zacks Consensus Estimate going down by a penny. Overall, 8 out of the 15 analysts covering the stock pulled back on fourth quarter projections during that time, while 3 raised their estimates.

With respect to earnings surprises, Chevron has had a bearish run over the last four quarters (including the quarter under discussion). This is the company’s 3rd negative surprise in the past 4 quarters. 

Upstream Earnings Increase

Chevron’s total production of crude oil and natural gas increased 9.4% from the year-earlier level to 2.8 million oil-equivalent barrels per day (MMBOE/d), driven by new project start-ups (in the U.S. and Nigeria), expansion of capacity at Tengiz in Kazakhstan, together with the restoration of Gulf of Mexico volumes that were offline in the fourth quarter of 2008 due to hurricanes.

U.S. volumes rose more than 21%, while Chevron’s international operations experienced an approximately 6% rise in output. Gains on the production front were supported by higher realized oil prices, resulting in a 27% year-over-year rise in upstream earnings to $4.0 billion.

Production Outlook Remain Strong

Chevron’s production outlook remains one of the most robust in its peer group, with a number of major deepwater projects scheduled to come online during the next few years. Major start-ups during the last few months include the Tahiti Field in the Gulf of Mexico, Frade offshore Brazil and Tombua-Landana in Angola.

Downstream Affected by Weak Refining Margins

Chevron’s downstream segment lost $613 million during the quarter, as against profit of $2.1 billion in the previous-year period. Demand for refined products remained depressed in the face of plentiful supply, resulting in weak margins on the sale of gasoline and other refined products.

The results were also affected by decreased refinery crude-input in the company’s U.S. operations, primarily due to the planned shutdown at the facility in El Segundo, California.

Chemicals

Earnings in the chemicals business increased significantly (by 250.0%) year-over-year to $98 million, reflecting higher margins on the sale of lubricant and fuel additives in tandem with lower utility and manufacturing costs.

Capital Expenditure & Balance Sheet

Chevron spent $6.2 billion in capital expenditures during the quarter (bringing the total capex for the full year 2009 to $22.2 billion), down from the year-earlier period’s 7.0 billion. Approximately 73% of the total outlays pertained to upstream projects. At the end of the quarter, the company had $8.7 billion in cash and long-term debt of $10.5 billion, with a debt-to-total capitalization ratio of about 10.3%.

As per the contract, Chevron would provide LNG to Nippon Oil for a period of 15 years. The value of the deal has been estimated at about $3 billion. Chevron Australia approximately holds a 47% operated interest in the A$43 billion ($37 billion) Gorgon development. The other partners are ExxonMobil Corp. (XOM) and Royal Dutch Shell PLC (RDS.A).

The Gorgon gas fields, off the coast of Western Australia, are estimated to contain 40 trillion cubic feet of gas deposits with an expected economic life of at least 40 years from the time of start-up. Chevron said that the venture will have an annual capacity to produce 15 million tons of LNG, with the first shipment expected in 2014. In September 2009, the project was given the final go-ahead by the joint venture partners following the receipt of necessary government approvals.

As of now, the Gorgon project comprises three production trains and a gas plant, to be built in the Barrow Island nature reserve. Within the next 12-18 months, the three partners are expected to take a call on expanding the number of trains to five.

The Nippon Oil agreement follows Chevron’s multiple deals to sell nearly 6.0 million tons per annum of its share from the Gorgon LNG venture to South Korean energy companies GS Caltex and Korea Gas Corp., as well as three Japanese companies, Osaka Gas, Tokyo Gas and Chubu Electric Power Co. Incidentally, Japan and South Korea are the world's top two importers of LNG.

We believe that the sales contracts represent an important milestone in Chevron’s efforts to commercialize its share of LNG from the Gorgon project. The company expects further sales of Gorgon LNG in the coming months. ExxonMobil and Royal Dutch Shell have already signed deals to sell most of their share of the Gorgon production to Asian importers, including PetroChina Co. Ltd. (PTR).

The business environment for LNG remains robust, with demand likely to grow at around 8−10% annually over the next few years in all major markets. The Gorgon project provides Chevron and its partners an attractive strategic position for serving the fast-growing economies of China and India, plus other Asian countries.

San Ramon, California-based Chevron is one of the largest publicly traded oil and gas firms in the world, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals and other energy-related businesses.

Chevron Corp. is currently rated as a Zacks Rank #3 (Hold) stock, meaning that it should perform relatively in line with the overall market over the next 1-3 months.

The company's last quarterly earnings report was its second consecutive earnings beat. The company is expected to report earnings of $1.73 per share during the fourth quarter (with an upside of $0.06), down from $2.14 a year ago. Last time out, it beat by 14.4%, and over the last month, analysts have raised their estimates for the about-to-be-reported quarter by 3.6%.

Financial were out of favour yesterday, closing down 0.1% on the day.  Citigroup (NYSE:C) shares meanwhile gained 0.3% after Deutsche Bank (NYSE:DB) restated a "buy" rating, noting its plans to raise capital to repay TARP borrowings would help earnings over the near-term on the savings from elimination of dividend payments to the US, which would outweigh the dilutive impact of the offering.

The Vix volatility measure of investors' quotient of nervousness eased Thursday, dropping 1.5% to 22.32. As it did, the safe haven status of the US Treasuries declined against the appeal of higher returns from riskier investments, with the 10-year falling 18/32 in price and its yield rising to 3.501%. Treasury's auction of 30-year bonds, which completed its $74.0 billion auction schedule on the week, drew a bid-to-cover ratio of 2.45, inline with the recent 2.41 average on increased demand.

Of the ten S&P500 industry sectors, eight recorded gains, led by consumer services (+1.2%), utilities (+1.2%), health care (+1.1%), and oil and gas (+1.0). 

Yesterday the US dollar gained 0.04% against a basket of currencies, rising to 76.  Alcoa (NYSE:AA) led the gainers on the DJIA, up 3.2% during the session, on reports aluminium prices would rise due to supply disruptions in Europe.  Disney (NYSE:DIS) jumped 3.1% on a Sanford Bernstein report which advised a 2010 share buyback increase to 58.5 million shares likely as the firm lifted earnings for 2009 and 2010 as well as price targets for the mouse.

Financial were out of favour yesterday, closing down 0.1% on the day.  Citigroup (NYSE:C) shares meanwhile gained 0.3% after Deutsche Bank (NYSE:DB) restated a "buy" rating, noting its plans to raise capital to repay TARP borrowings would help earnings over the near-term on the savings from elimination of dividend payments to the US, which would outweigh the dilutive impact of the offering.

The Vix volatility measure of investors' quotient of nervousness eased Thursday, dropping 1.5% to 22.32. As it did, the safe haven status of the US Treasuries declined against the appeal of higher returns from riskier investments, with the 10-year falling 18/32 in price and its yield rising to 3.501%. Treasury's auction of 30-year bonds, which completed its $74.0 billion auction schedule on the week, drew a bid-to-cover ratio of 2.45, inline with the recent 2.41 average on increased demand.

Of the ten S&P500 industry sectors, eight recorded gains, led by consumer services (+1.2%), utilities (+1.2%), health care (+1.1%), and oil and gas (+1.0). 

Yesterday the US dollar gained 0.04% against a basket of currencies, rising to 76.  Alcoa (NYSE:AA) led the gainers on the DJIA, up 3.2% during the session, on reports aluminium prices would rise due to supply disruptions in Europe.  Disney (NYSE:DIS) jumped 3.1% on a Sanford Bernstein report which advised a 2010 share buyback increase to 58.5 million shares likely as the firm lifted earnings for 2009 and 2010 as well as price targets for the mouse.

On Monday, the 30-stock Dow Jones industrial average surged 132.79 points, or 1.29%, to 10,450.95.  The broad Standard & Poor's 500-stock index rose 14.86 points, or 1.36%, at 1,106.24 and the tech-heavy Nasdaq composite index jumped 29.97 points, or 1.40%, to 2,176.01. Trading volume was light, with NYSE volume less than 1 billion shares, as advancing shares outran decliners by a four-to-one margin.  Wall Street’s fear gauge, the CBOE Vix, plummeted 4.6% to 21.16.

Treasuries lost ground as investors’ risk appetite grew.  A number of analyst upgrades also helped shares yesterday and after the close Hewlett-Packard (NYSE:HPQ) came out with strong numbers and also announced plans to triple its repurchase plan.

Among the DJIA components, all but two gained, led by Verizon (NYSE:VZ), up 3.0%, AT&T (NYSE:T), up 2.9%, General Electric (NYSE:GE), up 2.9%, and Chevron (NYSE:CVX), up 2.6%.  A Barron's article suggested AT&T (NYSE:T) shares undervalued due to concerns its exclusive iPhone contract with Apple (NASDAQ:AAPL) might not be extended next year; Verizon (NYSE:VZ) shares jumped shot up on hopes the exclusivity agreement might not be extended.  And Chevron (NYSE:CVX) shares gained from the dollar’s retreat.

All ten S&P 500 industry groups advanced, led by consumer services and telecommunications, both up 2.7%, oil and gas, up 1.6%, and industrial and tech shares, both up 1.5%.

Gold prices jumped to fresh highs yesterday, before giving up some ground to settle at $1164.70, up $17.90.  Meanwhile, the greenback dropped 0.7% to 75.13 against a basket of currencies.  This afternoon's FOMC meeting minutes will be scrutinised by investors for any evidence of a timing change for its asset purchase programs.  Such considerations are also key to the trajectory for gold pricing, viewed as an inflation hedge.

Earnings reports are due from Barnes and Noble (NYSE:BKS), Borders (NYSE:BGP), Dollar Tree (NASDAQ:DLTR), Heinz (NYSE:HNZ) and Hormel (NYSE:HRL).

Chicago, IL – November 4, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Marathon Oil Corporation (MRO), Exxon (XOM), ConocoPhillips (COP), Chevron (CVX) and Enterprise Products Partners L.P. (EPD).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s AnalystBlog:

Marathon Beats, Production Up

Marathon Oil Corporation’s (MRO) third-quarter 2009 results came in better-than-expected, helped by the contribution from increased oil and natural gas production. Earnings per share, excluding mark-to-market and divestment losses, came in at 61 cents, above the Zacks Consensus Estimate of 56 cents.

However, as has been the case with the other oil majors that have already reported -- Exxon (XOM), ConocoPhillips (COP) and Chevron (CVX) -- earnings and revenue comparisons with the year-earlier period were quite ugly, severely hampered by lower realized commodity prices and weak refining margins. Marathon’s adjusted earnings per share plunged 77.9%, while sales declined 37.9% to $14.5 billion.

Income from the upstream segment totaled $491 million during the quarter, down 43.5% from the year-ago level.

The company reported production (available for sale) of 393,000 oil-equivalent barrels per day (BOE/d), slightly below its interim guidance last month. However, this represents a 5% year-over-year production growth, reflecting the timing of international oil liftings.

Lower realized oil and natural gas prices offset the upstream volume gains. Marathon's worldwide realized crude oil price (from continuing operations) of $64.12 per barrel was 42.1% below the year-earlier level, while natural gas realizations (also from continuing operations) dropped 56.8% to $2.20 per thousand cubic feet (Mcf).

Enterprise Raises Dividend

Enterprise Products Partners L.P. (EPD) reported its third quarter earnings per limited partners unit at 43 cents, in line with the Zacks Consensus Estimate and year-ago earnings of 49 cents. Before adjusting one-time items, earnings per limited partner unit reached 36 cents.

Importantly, Enterprise increased its quarterly distribution by 5.7% year-over-year to the annualized run rate of $2.21 per unit. This was the 21st consecutive quarterly distribution increase. Following the merger, Enterprise and TEPPCO generated distributable cash flow of $359 million and $43 million, respectively, in the quarter. Total distributable cash flow (DCF) for Enterprise and TEPPCO provided 1.03X distribution coverage.

Revenue for the quarter decreased nearly 27% year-over-year to $4.6 billion, due primarily to lower commodity prices. However, gross operating margin increased more than 17% to $561 million, driven by volume growth and strong natural gas processing margins.

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Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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The positive surprise was enough to propel benchmark indexes to their biggest advance since July and send safe havens like Treasuries and dollar lower.  Caterpillar Inc. (NYSE:CAT) and Alcoa Inc. (NYSE:AA) advanced at least 5.1% after the Commerce Department said the economy returned to growth following four straight quarters of decline.  Crude prices jumped $2.44, or 3.1%, to $79.87 and gold was up $16.50 to $1046.40.

The S&P 500 registered its biggest one-day gain since July 23, jumping 2.2% to close at 1,066.11.  The 30-share Dow Jones industrial average shot up by 199.89 points, or 2.05%, at 9,962.58 and the tech-heavy Nasdaq Composite index 37.94 points, or 1.84%, to 2,097.55.  The advance was broad-based on the New York Stock Exchange where advancing issues ran ahead of those that declined by a five-to-one margin.  Treasuries also took a beating after an auction of seven-year notes received a weaker-than-expected response.  As the month-end nears, the DJIA has advanced 2.6% in October; the S&P500 0.9%, while the NASDAQ remains 1.2% lower for the month.

A lackadaisical third-quarter performance from Exxon Mobil (NYSE:XOM) could not dampen the mood either and the company’s shares edged up 0.16%.  Procter & Gamble (NYSE:PG), also a Dow component, reported weaker quarterly earnings but revenue was above expectations. The consumer products maker also raised the low end of its fiscal 2010 earnings forecast and its shares rose 4%.

Twenty-eight of the DJIA's 30 components finished higher while all ten industry sectors of the S&P500 rose during the day, led by advances in basic materials (+4.1%), financials (+3.9%), oil and gas (+2.4%), consumer services (+2.4%), and industrials (+2.2%). 

Among financials, MetLife Inc. (NYSE:MET) jumped 7.9% to $36.84 ahead of its earnings report.  After the close, the biggest U.S. life insurer reported estimate-topping third-quarter operating earnings of 87 cents a share.  Lincoln National Corp. (NYSE:LNC) surged 14% to $25.34 after it reported first quarterly profit in a year that was also ahead of estimates.

Meanwhile, the International Monetary Fund sharply boosted its outlook for Asian economic growth. The IMF also raised its next year's guidance.  The IMF now expects economic growth of 2.8% this year and 5.8% next, up from last May's estimates for 2009 growth of 1.2% and 2010 growth of 4.3%.

Firms reporting their earnings include: Chevron (NYSE:CVX), Duke Energy (NYSE:DUK), Sony (NYSE:SNE), and Weyerhaeuser (NYSE:WY).

Chicago, IL – October 28, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: BP plc (BP), ExxonMobil (XOM), Chevron (CVX), U.S. Steel Corp. (X) and POSCO (PKX).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s AnalystBlog:

BP Tops on Better Cost Control

BP plc (BP) reported its third quarter 2009 results of $1.71 per ADS (American Depositary Share), beating the Zacks Consensus Estimate of $1.14 on the back of stronger cost controls and increased upstream volumes. However, in comparison with the year-earlier results, earnings fell approximately 34% on lower oil prices.

BP’s strong performance sets the stage for earnings releases by ExxonMobil (XOM) and Chevron (CVX), which are scheduled to report their results on Thursday and Friday this week, respectively.

BP expects its capex budget to be $20 billion for the year. The company’s attractive dividend (currently yielding around 6%) remains unchanged from the year-ago level. We believe that BP’s dividend is safe with the recent uptrend in oil prices.

Net cash provided by operating activities for the quarter was $8.1 billion compared with $14.9 billion a year ago. Net debt at the end of the quarter was $26.3 billion, representing net debt-to-capitalization ratio of 21% (compared with 17% a year ago).

Steel Output Mounting

Key steel consuming industries such as auto, shipbuilding and construction have been experiencing weak demand in the last quarters, forcing global steel makers to lower production levels. U.S. Steel Corp. (X) had slashed production by almost 62% during the second quarter of 2009, while Korean steel maker POSCO (PKX) was forced to reduce production for the first time in its history. POSCO curtailed production by about 15% during the period.

However, with steel demand picking up in the last couple of months, United States Steel Corp. is restarting its blast furnace at its Hamilton, Ontario, plant after a nine-month shutdown. U.S. Steel had closed the Hamilton blast furnace in Nov 2008. It suspended the remaining operations at Hamilton and the Nanticoke facilities in March 2009 due to a drop in demand. Both the facilities were running at less than half their capacity.

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Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

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Contact:
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Visit: www.zacks.com

The Dow Jones industrial average closed above the 10,000 level for the second-successive day, edging up 47 points, or 0.5%.  The S&P 500 index edged up 4 points, or 0.4% and the tech-heavy Nasdaq composite ended the day virtually flat.  The gains in the Dow average were led by Microsoft (NASDAQ:MSFT) whose shares jumped 2.9%.  The Windows 7 is slated for release on October 22.

Among energy stocks, Chevron (NYSE:CVX) and ExxonMobil (NYSE:XOM) shares climbed 1.6% and 1.5%, respectively, as crude prices jumped to their highest levels of the year.  Meanwhile, the US Department of Energy said gasoline stockpiles fell 5.2 million barrels per day last week, well below expectations of 700,000 decline.

Pfizer (NYSE:PFE) rose 1.7% after it completed its acquisition of Wyeth.

Nevertheless, weakness in financial sector shares, off 0.6%, hurt sentiment even as Goldman Sachs (NYSE:GS) reported estimate-topping numbers.  Citigroup's (NYSE:C) strong trading returns were overcome by increasing consumer loan losses.  Citi's (NYSE:C) CEO Vikram Pandit warned, "US consumer credit remains the number one issue affecting our near-term results." JP Morgan (NYSE:JPM) CEO Jamie Dimon warned that level of loan losses are likely to remain high. 

Tech shares also failed to advance, even as IBM (NYSE:IBM) raised its earnings outlook and reported numbers that were above Street projections.  Advanced Micro Devices' (NYSE:AMD) narrower-than-expected loss and the return of its core chip-making operations to profitability failed to lift sentiments either.  However, Google's (NASDAQ:GOOG) better-than-expected results were helped by return to sequential quarterly growth, a 5% increase in average cost-per-clicks over the second quarter, and a positive impact from the declining dollar.  Shares in Google (NASDAQ:GOOG) rose 3.6% in after-hours trading as CEO Eric Schmidt noted, "While there are a lot of uncertainties about the pace of [the] economic recovery, we believe the worst of the recession is behind us and now feel confident about investing heavily in our future."

Today's expected results include a number of significant results from companies such as Bank of America (NYSE:BAC), Genuine Parts (NYSE:GPC), General Electric (NYSE:GE), and Mattel (NYSE:MAT). Also reporting are: Halliburton (NYSE:HAL) and First Horizon National (NYSE:FHN).

The Dow Jones industrial average, which rose as high as 9931.82 points in the morning, gained 20 points to close at 9885.80.  The broad S&P 500 index rose 4.70 points, or 0.44%, to close at 1,076.19 and the tech-heavy Nasdaq ended the day little changed.  Bond markets were closed for the Columbus Day holiday.  On the New York Stock Exchange, 16 stocks were higher in price for every 14 that fell.

Eight of the ten S&P500 sectors finished higher in yesterday's session. Oil and gas shares led the gainers, adding 1.2% following a 2.1% rise in crude prices to $73.55, its highest since August 24.  DJIA components Chevron (NYSE:CVX) and ExxonMobil (NYSE:XOM) rose 1.3% and 1.2%, respectively.

Meanwhile, equity prices appear to be taking into consideration upside surprises in last quarter's numbers.  The National Association for Business Economics' survey of its members showed majority believed the recovery has begun, but concerns remain over federal debt and rising unemployment.  Nevertheless, the greenback’s decline is expected to help results of multinational firms with significant overseas exposure.

Also, news emerging from the geopolitical front appears to be less motivating as the head of Homeland Security noted Al-Qaeda members likely within US borders and North Korea reportedly shot off five missiles off its east coast; the reports said the country is preparing to fire more.  Although stocks have had their steepest rally in more than 70 years, doubts remain over an exit strategy from simulative policies amid increasing unemployment levels and housing worries.

Black & Decker (NYSE:BDK) jumped 7.6% Monday after the company's raised its third quarter earnings guidance to 91 cents a share from 35- 45 cents a share on better-than-expected sales, operating margins and tax rate. UBS (NYSE:UBS) downgraded SanDisk (NASDAQ:SNDK) shares to "sell" from "neutral," on concerns of peaking chip demand leaving little scope for price increases.  Ford (NYSE:F) shares jumped 7% after the automaker reported that European sales jumped 12% on strong sales of its subcompact models Ka and Fiesta. Google (NASDAQ:GOOG) shares rose 1.5% after Goldman Sachs (NYSE:GS) raised its price and earnings target, saying the firm will benefit from next year's recovery in online activity.

Financial shares continued their upward run, adding 0.7%.  A number of banks report their earnings in the coming sessions, including JP Morgan (NYSE:JPM), Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C).  According to analyst Dick Bove, large-cap banks are expected to perform well, helped by strong trading activity, but Bove noted regional banks could be under pressure due to commercial real estate losses. 

Meanwhile, shares of Deutsche Bank (NYSE:DB) fell 1.6% yesterday after the company’s CEO Ackermann’s comments raised concerns of a capital raising.  This morning influential analyst Meredith Whitney took a cautious stance on Goldman Sachs (NYSE:GS) and lowered her rating on the bank to "neutral" from "buy" with a $186 price target. 

Today's list of releases includes quarterly earnings reports from companies such as Altera (NASDAQ:ALTR), CSX (NYSE:CSX), Intel (NASDAQ:INTC), and Johnson & Johnson (NYSE:JNJ).

ExxonMobil (XOM) has been producing a little over 2.4 million barrels of oil a day for the last year and a half, its lowest rate of production over the last decade. The dark blue line in the figure below shows the company's production each year since 1999. Four years ago, Stuart Staniford noted that ExxonMobil's 2001 annual report predicted 3% annual growth in production between 2001 and 2007. That projection appears as the red line in the graph below; didn't quite come out as planned. Stuart's theory was that the company correctly predicted the contribution of its new discoveries, but underestimated the declining production rates from mature fields.

ExxonMobil again predicted in 2006 that it could achieve 3% annual growth over 2006-2011. I've shown that forecast as the lighter blue line in the figure. We still have two more years to make that one right, I suppose.

Dark blue: ExxonMobil's annual net production of crude oil and natural gas liquids in millions of barrels per day. 1999-2008 from company's annual reports. 2009 based on average of 2009:Q1 and 2009:Q2. Red: forecast from the company's 2001 annual report. Light blue: forecast from the company's statements in 2006.

The Wall Street Journal reported on Wednesday that ExxonMobil is prepared to spend $4 billion to buy 1/4 interest in the Jubilee oil field off the coast of Ghana, which would represent 15% of the oil giant's 2008 capital and exploration budget. Alan von Altendorf thinks they can't make a good return unless they sell the oil for $100/barrel. Presumably the company is reckoning on more oil in the field than current estimates suggest. But even if von Altendorf's calculations are off by a factor of two, it still seems to signal a change in philosophy for a company that has historically been extremely careful with its investments in order to maintain its position as a very low-cost producer.

But what else is the company to do? It's not like they haven't tried to take advantage of Russia's or Venezuela's strong commitment to protect foreign investors or the peaceful aspirations of Nigerian rebels.

Chevron (CVX) and many other companies are finding clever new ways to get more oil out of mature U.S. fields. That may well succeed in slowing the rate at which production from those fields declines over time. But to get the plot in the graph above to slope up you really need to develop new fields.

The New York Times is encouraged by the "brisk pace of new discoveries" which the paper reports "have totaled about 10 billion barrels in the first half of the year".

The Oil Drum, always a party pooper, notes that the world likely consumed that much in the first four months of the year.

On Thursday, the European Central Bank and Bank of England left interest rates unchanged.  Sentiment also received a boost from domestic corporate borrowing, which rose for the eight straight week. 

The growing optimism surrounding consumer spending, which is crucial for an economic recovery, followed late Wednesday's good results from Alcoa.  The company surprised investors with its first profit in nine months, which the aluminum company attributed to cost-cutting and rising sales to automakers.  Analysts believe that it will take more than just cost cutting to impress investors this earnings season.  

Meanwhile, a better reading on the job market also fueled investors' optimism.  The Labor Department reported that new claims for jobless benefits fell to 521,000 last week from 554,000 during the previous week.  Claims came to the lowest level since early January.

The Dow rose 61.29, or 0.6%, to 9,786.87. The index ended off its highest level after demand at a government auction of 30-year bonds fell short of expectations.  The Standard & Poor's 500 index rose 7.90, or 0.8%, to 1,065.48, while the Nasdaq composite index rose 13.60, or 0.6%, to 2,123.93.  About three stocks rose for every one that fell on the New York Stock Exchange, where consolidated volume came to 5.2 billion shares, compared with 5.1 billion on Wednesday.  The market's measure of investor worries, the CBOE Vix, dropped 2% to 24.18.

The Dollar Index, which tracks the US currency against a basket of currencies, dropped 0.7% to 75.968 after reaching 75.767, its weakest level since August 2008.  This morning, however, the dollar rebounded from its lows after Fed Chairman Bernanke seemed to signal a shortening of its accommodative policy timeline.  Economists currently do not expect policy shifts before mid-2010; however, Bernanke advised the Fed is ready to tighten monetary policy once the economy improves.  At the same time, he cautioned that "accommodative policy will likely be warranted for an extended period."  Gold closed at a record $1,056.30 an ounce and hit an electronic trading high of $1,062.70 during the day.

A weak dollar, along with rising oil and gold prices, gave a boost to dollar-sensitive multi-nationals, such as Dow components 3M (MMM), GE (GE) and Johnson & Johnson (JNJ). The rise in oil prices lifted Chevron (CVX), Exxon Mobil (XOM) and other commodity names. 

The House is considering an extension of the first-time homebuyers' tax credit, slated for November expiration. Pulte Homes (NYSE:PHM) shares climbed 4.3%; DR Horton (NYSE:DHI) increased 8.0%; and Lennar (NYSE:LEN) rose 9.1%.

Among retailers, Macy's (NYSE:M) increased 5.1% after reporting a 2.3% sales drop, half the projected decline. Abercrombie & Fitch (NYSE:ANF) rose 5.2% after its sales decline proved less than feared.  Luxury retailer Saks (NYSE:SKS) fell 4.5% following its reported 11.6% decline in comparable sales.

Although the Fed, in its policy statement, contended that it would continue to employ a wide range of tools to stimulate the economy, investors saw little reason to rejoice, wondering if the stocks were too expensive at current levels.  The Fed reiterated that it will slow its purchase of mortgage-backed securities, signaling its confidence that an economic recovery is indeed underway.  However, there was no talk of exit strategy methods and timetables.  Nevertheless, the FOMC minutes, released at 2:15 ET, maintained the Fed's intentions to keep "exceptionally low levels of the fed funds rates for an extended period."

Fed’s decision to hold interest rates steady helped the greenback maintain its recent momentum but the government’s auction of $40 billion in 5-year notes Wednesday failed to elicit an upbeat response, after Tuesday's sale of $43 billion in 2-year notes witnessed strong demand.

The Dow Jones industrial average fell 81.32 points, or 0.8%, to close at 9,748.55. The broader Standard & Poor’s 500-stock index lost 10.79 points, or 1%, to end at 1,060.87, while the Nasdaq composite index retreated 14.88 points, or 0.7%, to 2,131.42.  On the New York Stock Exchange, 1.32 billion shares exchanged hands and advancing shares outpaced those that declined three to two.

A surprising rise in crude stockpiles and a higher-than-anticipated yield on the Treasury's $40 billion auction of 5-year notes combined to generate a widely-expected but moderate pullback.  Today's markets are expected to take a cue from the existing home sales report along with the G-20 meet before deciding on a future course of action.  Moreover, this morning the US took another swipe at China trade practices, alleging China has improperly subsidized some types of coated paper.

Meanwhile, the weekly EIA report showed a surprising 2.8 million barrel build in crude inventories. The Street was expecting a 2.25 million barrel fall.  The unexpected build hurt basic material and oil and gas shares.  Basic material shares, up 51.2% year-to-date, were the leading decliners on the S&P500, off 2.3%.  Oil and gas shares fell 1.9%.  Exxon (NYSE:XOM) declined 1.2% to $69, while Chevron (NYSE:CVX) retreated 1.7% to $71.37.  Newmont Mining Corp., (NYSE:NEM) the largest U.S. gold producer, lost 3.6% to $43.59.  Freeport-McMoRan (NYSE:FCX) the world’s largest publicly traded copper producer fell 2.8% to $71.09.

On the DJIA twenty-five of its thirty components closed down; on the S&P500 only five stocks finished higher. Financial shares were also hit hard, with declines of 2.0%, as investors grew concerned over prospects for an eventual unwinding of the Fed's cheap money policy. Consumer services traded down 1.4%; health care 1.1%; and industrials 1.0%. Only telecommunications shares managed gains, moving 1.5% higher on the day; year-to-date, however, the group is the only sector to remain in negative territory on the year, with a 2.0% drop.

The 2:15 ET release of the FOMC minutes failed to elicit much of a response. Fed Chairman Bernanke had already spread the word of the recession's end, so the language change suggesting economic activity has now "picked up," and is no longer "leveling out" seemed old news, along with notes that "conditions in financial markets have improved further, and activity in the housing sector has increased."

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.  However, a jump in the CBOE Vix volatility measure, which rose 1.4% to 25.62, added a note of caution to the upbeat mood.

Dollar’s plunge to an 11-month low was also due to a Monday release from the United Nations, which again called for less dependence on the greenback as the premier global reserve currency. Indications that China would diversify some of its interests into gold also hurt the dollar, although the size of China's reserves mitigates against much impact.  Nevertheless, the news helped gold prices.  This morning's news indicated Barrick Gold (NYSE:ABX) is planning to raise up to $3.5 billion through a new share offering priced at $36.95 per share.

Yesterday, General Electric (NYSE:GE) was the leading gainer on the DJIA after being upgraded by JP Morgan (NYSE:JPM).  Costco (NASDAQ:COST) advanced 2.3% after two brokerages upgraded the stock. Among tech issues, IBM (NYSE:IBM) retreated 0.3% after it was downgraded; however, the firm noted it is "well ahead" of its 2010 earnings target of $10-$11 per share.  Advanced Micro Devices (NYSE:AMD) surged 14.6% as Barclays Capital (NYSE:BCS) upgraded the shares to "outperform."  AIG (NYSE:AIG) shares slumped 10.5% after Credit Suisse (NYSE:CS) downgraded the stock to "underperform," noting "little to no value for common equity" remains.

Nine of the ten S&P industry groups recorded gains Tuesday , with oil and gas (+2.7%) and basic material shares (+2.1%) leading the list of gainers.  Only healthcare shares registered declines, declining 0.3%.  Crude prices spiked $3.31 to $71.33 on expectations today's OPEC meeting will see no change in the production levels.  Moreover, Goldman Sachs (NYSE:GS) maintained a favorable long-term view on the group, saying there is an "increasing evidence of a stronger-than-expected recovery in global industrial activity."  Chevron (NYSE:CVX) and ExxonMobil (NYSE:XOM) shares gained 2.2% and 2.1%, respectively.  Among basic material issues, Alcoa (NYSE:AA) rose 3.5% to $12.60.

In today's Presidential appearance before a rare joint session of Congress, President Obama will attempt to resuscitate his healthcare reform package and counter the groundswell of centrist opposition, which has driven his ratings to a low 52% point.

Chevron holds a 50% operated interest in the $42 billion project, with the other partners being ExxonMobil Corp. (XOM) and Royal Dutch Shell PLC (RDS.A). The government approval to Australia's single largest natural resources project paves the way for a final investment decision by the Gorgon joint venture participants, once they get the nod for production licenses and construction plans.

The Gorgon gas fields, off the coast of Western Australia, are estimated to contain 40 trillion cubic feet of gas deposits and have an expected economic life of at least 40 years from the time of start-up. Chevron said that the venture will have an annual capacity to produce 15 million tons of LNG, with the first shipment expected in 2014.

The Gorgon development is expected to provide huge quantities of liquefied gas for export to China and other Asian nations. ExxonMobil and Royal Dutch Shell have already signed deals to sell much of their share of Gorgon production to Asian importers, including PetroChina Co. Ltd. (PTR).

We believe that the Gorgon approval will significantly boost Chevron's long-term growth prospects in the fast-growing LNG market. Also, the business environment for LNG continues to remain robust, with demand likely to grow at around 8-10% annually over the next few years in all major markets.

San Ramon, California-based Chevron is the fourth-largest publicly traded oil and gas company in the world, based on proved reserves. It is engaged in oil and gas exploration and production, refining and marketing of petroleum products, manufacturing of chemicals and other energy-related businesses.

The Dow Jones industrial average added 30 points, or 0.3% and closed at its highest point since November 4.  The S&P 500 index gained 2 points, or 0.2% to close at its highest level since November 6.  The NASDAQ composite rose 6 points, or 0.3%, to 2024, its highest close since October 1.  NYSE volume remained a modest 1.14 billion shares, with advancing issues ahead of decliners by a three-to-two margin.

After touching their 10-month high, crude prices retreated 3.1% to $72.05, reflecting yesterday's reported rise in stockpiles from the American Petroleum Institute, generating a 1.4% fall in the S&P's oil and gas sector.  Among DJIA components ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) eased 0.9% and 0.2%, respectively.

A favorable housing report sent shares of Hovnanian (NYSE:HOV) up 6.5%, Pulte Home (NYSE:PHM) up 3.5%, and Lennar (NYSE:LEN) 2.8%.  Among home improvement retailers, Lowe's (NYSE:LOW) shares gained 1.7% after it said it was entering Australian markets in a Woolworth partnership.  Home Depot (NYSE:HD) shares rose 2.2%.

Consumer services shares rose 1.2% and were the leading gainers among the S&P 500 industry groups.  Shares of retailers advanced with luxury-retailer Saks (NYSE:SKS) up 8.5%, Macy's (NYSE:M) up 3.5% and Sears Holdings (NASDAQ:SHLD) up 2.4%.

The Treasury sold $42 billion 2-year notes in its planned $109 billion auction for the week.  Although, the response was average, with a high yield of 1.119%, Treasury prices rose on improved inflation expectations, with the longer-dated 30-year up 22/32 in price, and its yield down 4 bps to 4.22%.  Three-month Libor fell to a record low of 0.38%, its lowest level since 1986, pointing to increased credit market liquidity.

In what could be a major policy matter, the government expects US debt over the next decade to almost double, as a less-vigorous-than-hoped-for economic recovery fails to offset increased spending on retirement and health care benefits.  The White House expects a $9 trillion deficit over the next decade, $2 trillion more than previously anticipated, with a 2009 deficit of $1.58 trillion.

The Dow Jones industrial average edged up 3.32 points, or 0.03%, to end at 9,509.28.  The Standard & Poor’s 500-stock index fell 0.56 points to end at 1,025.57, and the NASDAQ fell 2.92 points, or 0.14%, to 2,017.98.  On the New York Stock Exchange, winners narrowly edged losers on volume of 1.23 billion shares.

Shares of auto-related companies were under pressure as the government’s cash-for-clunkers program was set to end.  Financial stocks retreated 0.9% after an influential banking analyst noted that the current economic crisis could see another 150-200 banks failing.  Moreover, SunTrust Bank (NYSE:STI) CEO warned of further pressure among US banks from troubled commercial real estate loans throughout 2010.  Its shares fell 3.8%. The news outweighed a report from Barclays Capital (NYSE:BCS) in which ratings on three credit card firms were raised to "overweight," due to estimates that a peak in write-offs is near at hand.  The firm raised its American Express (NYSE:AXP) rating to "overweight," and increased its price target to $38 from $28.

A rise in crude prices to almost $75 per barrel helped oil and gas shares lead the gainers on the S&P 500 with a 1.3% advance.  Shares of ExxonMobil (NYSE:XOM) and Chevron (NYSE:CVX) rose 2.0% and 1.5%, respectively.  Defensive health care and utility shares also advanced, with gains of 0.3% and 0.2%, respectively.

President Obama's anticipated, 9:00 AM ET announcement from Martha's Vineyard, where he is on vacation with his family, regarding the reappointment of Fed Chairman Bernanke could boost sentiments today.  Many on the Wall Street like Bernanke’s calming presence and have grown increasingly confident in his ability to avoid further financial missteps. Moreover, the early nomination offers the Chairman the opportunity to make plans beyond the end of his term, which would include the exit strategies needed as the economy improves.

US stock futures point to a moderately higher open on Monday.  Dow Jones industrial average futures rose 34, or 0.4%, to 9,523. Standard & Poor's 500 index futures rose 3.30, or 0.3%, to 1,028.50, while Nasdaq 100 index futures rose 2.00, or 0.1%, to 1,637.50.

The Dow Jones industrial average gained 156 points, or 1.7%, closing above 9,500 for the first time since November 4.  The S&P 500 index added 19 points, or 1.9%, closing at the highest point since October 6.  The tech-heavy NASDAQ composite index added 31.68 points, or 1.59%, to 2,020.90, its highest close since October 1.  On the New York Stock Exchange about four stocks rose for every one that fell.

Speaking at an annual Fed conference, Bernanke noted that "After contracting sharply over the past year, economic activity appears to be leveling out, both in the US and abroad," adding prospects for a return to growth in the near-term “appear good."  However, he sounded a note of caution, warning that lending is not back to normal, and that the difficulty consumers and businesses are having obtaining loans will be a challenge.    

All ten S&P 500 industry sectors closed higher on Friday, led by gains in basic materials (+2.7%), oil and gas (+2.6%), industrials (+2.3%), and financials (+2.1%).  Year-to-date technology stocks have been the best of the lot managing gains of 40.4% and are followed closely by basic material shares (+40.1%), financials (+13.2%), industrials (+11.1%), and consumer goods (10.4%).  On the year only telecoms (-4.2%) have suffered declines.

A rise in energy stocks sent shares of Exxon Mobil (NYSE:XOM) up 2.5% to $69.92 and Chevron (NYSE:CVX) rose 1.6% to $69.73.  Shares of healthcare companies also advanced with Pfizer (NYSE:PFE) surging 5.5% to $16.64 and Merck (NYSE:MRK) gaining 5.1% to $32.56.  Among financial issues, AIG (NYSE:AIG) jumped 35% to $32.85 after the company said it will be able to pay back the government.  Game Stop (NYSE:GME) plunged 13% after the company reported earnings that were below analysts’ expectations.    

However, notable risks remain to the fragile economy.  A Sunday Financial Times piece quoted economist Nouriel Roubini as saying there remains a "big risk" of a double-dip recession, although Roubini currently sees a "U-shaped" recovery. 

Shanghai's main index jumped 126 points, or 4.5%, to 2,911.58, while Japan's Nikkei 225 stock average climbed 179.41 points, or 1.8%, to 10,383.41.  Hong Kong's Hang Seng rose 374.63, or 2%, to 20,336.36.  South Korea’s Kospi advanced 2% to 1,576.39.

Stock futures pointed to a higher open on Wall Street Thursday.  Dow Jones industrial average futures rose 24, or 0.3%, to 9,300. Standard & Poor's 500 index futures edged up 3.70, or 0.4%, to 1,000.80, while Nasdaq 100 index futures rose 3.50, or 0.2%, to 1,602.25.

On Wednesday, the unexpected drop in crude inventories helped U.S. stocks wipe off early losses and finish the day with gains of less than 1% as investors looking for reassuring sings picked up oil and other commodity stocks.  Rumors that the Obama Administration was considering a second stimulus package also helped sentiments on the Street yesterday.  However, the rumors were later dismissed, with White House spokesman Gibbs noting, "There is no imminent economic announcement."

The 30-stock Dow Jones industrial average added 61 points, or 0.7%, to close at 9,279.16.  The NASDAQ added 13.32 points, or 0.7% for a close at 1,969.24, and the S&P500 ended 6 points higher at 996, up 0.7%.  Volume remained light with only 988 million shares trading on the NYSE and advancing shares ahead of decliners by a 3-to-2 margin.

On the earnings front, the picture was mixed as Hewlett-Packard (NYSE:HPQ), Deere (NYSE:DE) and PetSmart (NASDAQ:PETM) reported earnings that beat expectations, but outlook from these companies disappointed.  Some retailers, though, were optimistic, with BJ's Wholesale (NYSE:BJ) and Limited (NYSE:LTD) offering improved yearly outlook.

Among S&P500 industry sectors, oil and gas shares advanced 1.9% and were the leading gainers.  DJIA components Chevron (NYSE:CVX) and ExxonMobil (NYSE:XOM) moved higher, up 1.8% and 2.3%, respectively.  Commodity-related issues were not far behind, with basic material shares up 0.9%, following the broad-based gain in commodities. Freeport-McMoRan (NYSE:FCX) shares surged 2.7%.  However, Alcoa (NYSE:AA) led the decliners on the DJIA after Goldman Sachs (NYSE:GS) downgraded the stock, citing Alcoa's (NYSE:AA) recent appreciation and advised rolling positions into Freeport-McMoRan (NYSE:FCX), which is on its Conviction Buy List.

Health care issues advanced 1.3%, as Merck's (NYSE:MRK) 2.5% advance led DJIA component gains. A New Jersey court upheld the firm's patent for asthma drug Singulair, and ruled against Teva Pharmaceuticals (NASDAQ:TEVA).

Despite the day's reported increase in weekly mortgage applications, financial shares failed to gain in the market advance, and eased 0.03%. News of last week's rise in mortgage applications on increased refinancing requests did not have an impact on financial shares.  Bank of America (NYSE:BAC) shares dropped 0.9% and JP Morgan (NYSE:JPM) eased 0.7%.

Retailers scheduled to report include: Barnes and Noble (NYSE:BKS), GameStop (NYSE:GME), HJ Heinz (NYSE:HNZ), Hormel Foods (NYSE:HRL), Ross Stores (NASDAQ:ROST), Sears Holdings (NASDAQ:SHLD), and Gap (NYSE:GPS).

While a weak oil price environment may weigh on the stock over the coming weeks, given its strong pipeline of development projects and impressive recent exploration successes, the company's long-term outlook has significantly improved.

As such, we recommend an Outperform rating for Chevron shares.Zacks Investment Research

The state-of-the-art vessel is the first of two new drillships to be commissioned for Chevron. The second vessel, Discoverer Inspiration, is expected to be ready in early 2010.

Clear Leader features Transocean’s patented dual-activity drilling technology designed to enable parallel drilling operations from a single derrick that saves time and money in deepwater well construction compared with conventional rigs.

Clear Leader is capable of drilling wells in 12,000 feet of water to a total depth of 40,000 feet. It offers advanced deepwater drilling facilities and will enable Chevron to expand the search for new domestic sources of energy.

Chevron’s current oil and gas development project pipeline is among the best in the industry. The company is one of the top lease holders and producers in the deepwater Gulf of Mexico (GoM). The drillship will start working at several of its deepwater projects, including Tahiti, Jack and Saint Malo.

Improved technology (such as 3-D seismic, parallel drilling, directional drilling and artificial lift) has helped Chevron to discover and develop plays in the Lower Tertiary trend in the deepwater GoM, such as the Jack and Saint Malo plays.

Chevron has made a number of promising discoveries over the last few years in the deepwater GoM that provide it with an attractive inventory of developmental projects. Its strong strategic position in the deepwater GoM will continue to be a platform for future growth. Consequently, we recommend an Outperform rating for the stock.

Chicago, IL – August 5, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Marathon Oil Corporation (MRO), Exxon (XOM), ConocoPhillips (COP), Chevron (CVX) and WellPoint Inc. (WLP).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Tuesday’s Analyst Blog:

Marathon Misses on Lower Prices

Marathon Oil Corporation (MRO) second-quarter 2009 results came in sharply weaker-than-expected, with the contribution from increased oil and natural gas production and improved refining margins more than offset by lower realized commodity prices. Earnings per share, excluding mark-to-market and divestment gains, came in at 35 cents, below the Zacks Consensus Estimate of 53 cents.

As has been the case with the other oil majors that have already reported -- Exxon (XOM), ConocoPhillips (COP) and Chevron (CVX) -- earnings and revenue comparisons with the year-earlier period were even worse. Marathon’s adjusted earnings per share plunged 71%, while sales declined 40% to $13 billion.

Income from the upstream segment totaled $220 million during the quarter, down more than 73% from the year-ago level.

The company reported production (available for sale) of 411,000 oil-equivalent barrels per day (BOE/d), in-line with its interim guidance last month. This is a 12% year-over-year production growth, reflecting strong operating performance from the company's Alvheim/Vilje oil field in the North Sea and natural gas assets in Equatorial Guinea.

Lower realized oil and natural gas prices offset the significant upstream volume gains. Marathon's worldwide realized crude oil price of $55.49 per barrel was more than 50% below the year-earlier level, while natural gas realizations dropped 57% to $2.21 per thousand cubic feet (Mcf).

WellPoint Profit Declines

Health insurer WellPoint Inc. (WLP) reported second quarter GAAP results of $693.5 million or $1.43 per share that were in-line with the Zacks Consensus Estimate. Non-GAAP earnings, excluding net investment losses of 7 cents per share, came in at $1.50 per share. On a GAAP basis, profits declined 7.6% from the year-ago period.

Total operating revenues declined 1.4% to $15.265.8 million. Operating gains from the Commercial Business segment declined 31.2% to $582.8 million. Results were affected by the increasing unemployment rate. The Consumer Business reported an operating gain of $382.1 million, up 67.7% from the year-ago period. Operating improvements in the Senior business helped drive growth in this segment. The Other segment reported a 12.5% year-over-year increase in operating gain, which was driven by growth in the company’s NextRx pharmacy benefit management operation.

We were disappointed to see a significant decline in medical enrollment in the reported quarter. Medical enrollment fell by 1.1 million people, or 3%, to 34.2 million members. Rising unemployment led to the decline in enrolment. With the increasing trend in unemployment rates, we expect medical enrolment to decline further. The company cut down its year-end membership expectations to 33.6 million.

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Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

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The Dow Jones industrial average rose 83 points, or 0.9% and the broader S&P 500 index added 11 points, or 1.2%, to 986.75, its highest close since November 4.  The tech-heavy Nasdaq gained 16 points, or 0.8%, to close at its highest level since October 1.

The much-awaited GDP report this morning demonstrated a smaller-than-expected 1% contraction, signaling the recession is losing force. Expectations were for a 1.5% drop.

Yesterday, GE (NYSE:GE) led the Dow Jones industrial average higher after the conglomerate was upgraded to “buy" from “neutral" by Goldman Sachs (NYSE:GS). The analysts at Goldman Sachs said chances of GE severing its GE Capital business appeared to be less likely. Shares in GE surged 6.9% helping the Dow average end at its highest level since November 4.  The index is up 40% since it hit a 12-year low on March 9.

Meanwhile, the Labor Department’s weekly jobless data helped calm shaky nerves as it signaled a stabilizing economy and an improving employment scenario.  Upbeat sentiments on the Street helped all ten industry groups in the S&P 500 register gains.  Among the S&P500 industry sectors, gains were led by basic materials (+3.2%), financials (+2.3%) and industrials (+1.9%).  The index is up about 12% from July 10, as significant beats from companies like Intel (NASDAQ:INTC), Caterpillar (NYSE:CAT), Goldman Sachs (NYSE:GS), Eli Lilly (NYSE:LLY) have pushed the index closer to the 1,000 level.

Motorola (NYSE:MOT) jumped 9.4% to $7.19 after reporting a loss of 1 cent a share that was better than expected.  MasterCard (NYSE:MA) rose 3% to $194.11 after higher fee income drove profit to $2.68 a share that was above estimates.  Visa Inc. (NYSE:V) gained 0.6% to $67.21 after its earnings came ahead of projections.

Among commodity-related issues and industrial shares, Alcoa (NYSE:AA) rose 4.1%, DuPont (NYSE:DD) gained 4.3%, and Caterpillar (NYSE:CAT) rose 3.8%. Among the DJIA components, McDonald's (NYSE:MCD) fell 1.5% after Morgan Stanley (NYSE:MS) cut its ratings on the firm to "equalweight" from "overweight." Travelers (NYSE:TRV) shares fell 1.6% on its earnings miss despite a raised full-year outlook. ExxonMobil (NYSE:XOM) shares lost 1.0% after the company reported its smallest profits in six years.

Key companies reporting their earnings today include American Electric Power (NYSE:AEP), Chevron (NYSE:CVX) Constellation Energy (NYSE:CEG), Dominion Resources (NYSE:D), and Weyerhaeuser (NYSE:WY).

Chicago, IL – July 31, 2009 – Zacks Equity Research highlights Hanesbrands, Inc. (HBI) as the Bull of the Day and CEMEX, S.A. de C.V. (CX) the Bear of the Day. In addition, Zacks Equity Research provides analysis on ConocoPhillips (COP), ExxonMobil (XOM) and Chevron (CVX).

Full analysis of all these stocks is available at http://at.zacks.com/?id=2676

Here is a synopsis of all five stocks:

Bull of the Day:

Hanesbrands, Inc. (HBI) management's business model requires only modest sales growth to create substantial EPS growth. Earnings are being driven by brand-building and cost-reduction initiatives.

Since the spin-off in September 2006, the company has reduced debt by $511 million, lowering interest expense from the post spin-off financial structure. However, management is reporting non-GAAP EPS, which excludes unusual actions, which may be distorting perceived earnings.

The Buy rating is maintained due to valuation. Currently, our six-month target price is $20.50 per share.

Bear of the Day:

We are keeping our Sell rating on CEMEX, S.A. de C.V. (CX). The company posted weak results in the second quarter of 2009 with more than 50% decrease in net income year over year.

The continued weak cement volumes in Spain and the U.S. are problematic. The short-term outlook for the company remains highly uncertain based on the prolonged downturns in the residential sector and tight credit conditions coupled with fall in the real estate prices throughout the world.

Moreover, the continuous increase in net debt is extremely concerning. Our six-month target is $8 per share.

Latest Posts on the Zacks Analyst Blog:

Conoco Beats Despite Slump

ConocoPhillips (COP) reported second-quarter earnings of $0.87 per share, above the Zacks Consensus Estimate of $0.83 per share.

However, earnings per share were well below from the year-earlier figure of $3.50. This significant downfall was mainly due to significantly lower commodity prices and a steep decline in worldwide marketing margins, which more than offset production improvements and lower costs.

While turnaround in crude oil prices is beneficial to the entire sector, we are maintaining our Hold recommendation on ConocoPhillips shares given the company’s competitive disadvantages relative to its super major peers. These disadvantages include a high-cost OECD-centric asset base and heavy exposure to the relative tentative outlook for U.S. natural gas (more than a third of total volumes) and refining markets. Our preferred names in the integrated space remain ExxonMobil (XOM) and Chevron (CVX).

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=5507.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5508.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5509.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

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Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com

However, earnings per share were well below from the year-earlier figure of $3.50. This significant downfall was mainly due to significantly lower commodity prices and a steep decline in worldwide marketing margins, which more than offset production improvements and lower costs.

The Exploration and Production segment reported earnings of $725 million during the quarter, down nearly 82% year over year. The fall was mainly due to lower commodity prices, partially offset by higher volumes and lower operating costs. Daily production from the E&P segment including Canadian Syncrude averaged 1.87 million barrels of oil equivalent per day (MMBOE/d), up from 1.75 MMBOE/d in the year-ago quarter.

The year-over-year increase in production from new developments in the U.K., Russia, Norway, Vietnam, China and Canada more than offset the impact of normal field decline. To some extent, production also increased due to less unplanned downtime and the impact of production-sharing contracts.

The Refining and Marketing segment reported a loss of $52 million, compared to a profit of $664 million in the year-ago quarter. The year-over-year decrease was primarily due to reduced refining volumes and worldwide lower marketing margins.

The domestic refining crude oil capacity utilization rate for the quarter averaged 93%, compared to 94% a year earlier. International capacity utilization rate averaged 72%, versus 88% last year. Worldwide utilization averaged 88%, compared to 93% in the year-ago period.

The Midstream segment (which includes the company’s 50% interest in DCP Midstream LLC) contributed $31 million to net income during the quarter, down approximately 81% year over year. The decline was due to lower realized prices and volumes.

ConocoPhillips’ earnings from its LUKOIL Investment segment came in at $682 million as against $774 million in the prior-year quarter. The year-over-year decrease came from lower realized prices, partially offset by lower taxes and higher volumes. LUKOIL’s estimated contribution to the company’s quarterly E&P volumes was 442,000 barrels of oil equivalent per day.

The Chemicals unit reported earnings of $67 million as against earnings of $18 million a year ago. The year-over-year improvement was mainly driven by lower operating costs.

At the end of the quarter, ConocoPhillips had $0.9 billion in cash and $30.4 billion in debt, with a debt-to-capitalization ratio of 34%. During the quarter, the company paid $700 million in dividends. ConocoPhillips generated $2.6 billion in cash from operations during the quarter and invested $2.9 billion in capital expenditures. The company maintained its total 2009 capital budget at $12.5 billion.

While turnaround in crude oil prices is beneficial to the entire sector, we are maintaining our Hold recommendation on ConocoPhillips shares given the company’s competitive disadvantages relative to its super major peers. These disadvantages include a high-cost OECD-centric asset base and heavy exposure to the relative tentative outlook for U.S. natural gas (more than a third of total volumes) and refining markets. Our preferred names in the integrated space remain ExxonMobil (XOM) and Chevron (CVX).

On Tuesday, stocks had declined after a weaker-than-anticipated consumer confidence report and a lackadaisical response to the auction of 2-year notes drew investors to the selling table.  The trend continued Wednesday and treasuries moved lower as the auction of 5-year notes failed to elicit enough interest.  The 10-year declined 6/32 and the corresponding yield rose to 3.664%. 

At the day’s end, the Dow Jones industrial average lost 26 points, or 0.3% and the S&P 500 index eased 4 points, or 0.5%. The tech-heavy Nasdaq gave up 8 points, or 0.4%.  Yesterday, a 5% plunge in Shanghai Composite index also had an impact on US markets.  However, the decline was arrested after Bank of China Vice Governor remarked this morning that the central bank will "unswervingly continue to apply appropriate loose monetary policy and consolidate the economic recovery momentum."  The index closed the day up 55 points or 1.7%.

On Wednesday, share prices reflected the concerns prevailing in the market, with Caterpillar (NYSE:CAT) shares declining 2.5% and Alcoa (NYSE:AA) down 2.2%. Demand concerns also impacted energy stocks as EIA weekly petroleum statistics demonstrated a 5.1 million barrel build in crude stockpiles, well ahead of the expected 1.1 million increase. Chevron (NYSE:CVX) shares fell 1.8%.

Among the ten S&P500 industry sectors, oil and gas and basic material shares led the decliners, easing 2.1% and 2.6%, respectively. Only two sectors showed some strength, with health care up 0.2% and consumer goods up 0.1%, reflecting their defensive appeal. Yesterday's release of the Fed's Beige Book of regional anecdotal data offered a balanced basket of good news and bad. Manufacturing, residential property and some employment data showed improvement, while commercial property, consumer spending and labor remaining under pressure.

Nevertheless, investors are not entirely giving up hope for a return to growth in the second half.  US GDP data for the second quarter, due out tomorrow, could provide a glimpse into what lies ahead.  Expectations are that it will show a moderation of the economy's contraction, with a 1.5% drop, down from the first quarter's 5.5% contraction.  Furthermore, Dow Chemical (NYSE:DOW) appeared confident of US recovery prospects, noting, "The economic outlook for the rest of 2009 appears to be stabilizing with strong growth in Asia Pacific, especially China, where domestic stimulus programs have created demand. In our view, the U.S. economy has found bottom, but will be slow in recovering as unemployment continues to be a drag on consumer spending."

Today's key post is the weekly jobless filing, which is expected to show claims rose to 575,000 from 554,000, while continuing claims increased to 6,300,000 from 6,225,000. The earnings calendar remains heavy, with earnings reports due from the likes of: Disney (NYSE:DIS), ExxonMobil (NYSE:XOM), Wynn Resorts (NASDAQ:WYNN), International Paper (NYSE:IP), Monster Worldwide (NYSE:MWW), Goodyear Tire (NYSE:GT), Becton Dickinson (NYSE:BDX), MasterCard (NYSE:MA), Travelers (NYSE:TRV), and Dow Chemical (NYSE:DOW).

During the last two weeks, as companies reported numbers that surprised the Street and gave an upbeat outlook, hope that the economy had come out of the worst started to rebuild and investors, albeit cautiously, began to build positions.  During the past two weeks major stock indices climbed at least 11%.  Investors’ increasing appetite for risk was reflected in Dow’s 188 point jump on Thursday.  Nevertheless, fear and skepticism did not entirely disappear from the market and traders remained conservative on certain fronts.

The rally last week saw the Dow Jones industrial average go beyond 9,000 for the first time since January.  During the week, the index jumped 349 points to reach a level of 9,093.  The S&P500 advanced 4.1% during the week for an 8.4% rise year-to-date. And in spite of the fact that the Nasdaq failed to hold on to a record rally – its longest since 1992 – for the week it remained up 4.2% and is 24.7% year-to-date.

According to Thomson Reuters' latest reported data, S&P500 second quarter earnings declines narrowed from the -35.2% of the previous week to -31.0%. Among the 184 firms that have already reported their earnings, 77% of the interims exceeded estimates. Nearly one-third of the S&P500 companies are scheduled to report results this week, with DJIA components Chevron (NYSE:CVX), Disney (NYSE:DIS), ExxonMobil (NYSE:XOM), Travelers (NYSE:TRV), and Verizon (NYSE:VZ) scheduled to report.

Nevertheless, concerns that the recent run of earnings have come on the back of cost-cutting measures may sour the upbeat mood on the Street.  Friday's 8.3% fall in Microsoft (NASDAQ:MSFT) shares was due to its in-line earnings numbers, but what hurt the most was a greater-than-expected, 17% fall in top line results. The company's drop was a major contributor to the NASDAQ's 0.4% Friday decline. This week 146 of the S&P500 are slated to report.

Also on the agenda for the week is the two-day meeting of top US and Chinese officials, discussing a broad agenda and raising questions of currency issues and China's willingness to continue its sizeable Treasury purchases.  This week, the Treasury has announced plans to auction $115 billion in 2,5, and 7-year notes. A Bernanke-fest hits the airwaves with PBS' coverage for three nights beginning on Monday.

Today's corporate releases are due from: Amgen (NASDAQ:AMGN), Corning (NYSE:GLW), Honeywell (NYSE:HON), and Verizon (NYSE:VZ).

Chicago, IL – July 27, 2009 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Exxon Mobil (XOM), Chevron (CVX), Travelers Companies (TRV), Verizon (VZ), Walt Disney (DIS), Apache (APA), Corning (GLW), Life Technologies (LIFE) and Western Digital (WDC). To see more earnings analysis, visit http://at.zacks.com/?id=3207.

Every day, Zacks.com makes 4 stock picks available, free of charge. To see them, go to http://at.zacks.com/?id=5612.

This Week's Events

Nearly 750 companies will report, of which 144 are in the S&P 500. Dow components include Exxon Mobil (XOM), Chevron (CVX), Travelers Companies (TRV), Verizon (VZ) and Walt Disney (DIS).

The energy sector will be prominent with 57 oil and gas firms releasing results.

Competing for investor dollars will be the U.S. government. A record $115 billion in 2-, 5- and 7-year bonds plus index-adjusted treasuries (TIPS) will be auctioned this week. In addition, there will be several auctions of short-term bills. June's large auctions were met with strong demand, but at some point, the new supply is going to drive up yields.

We'll get our first look at second-quarter GDP on Friday. The consensus estimate calls for a 1.5% contraction, though Zacks Equity Research is predicting a 1.4% decline.

The Fed's periodic Beige Book will be published on Wednesday afternoon.

• Monday: New home sales
• Tuesday: July Conference Board Consumer Confidence, S&P/Case-Schiller Home Price Index
• Wednesday: June durable goods orders, Federal Reserve Beige Book, weekly crude inventories
• Thursday: weekly initial jobless claims
• Friday: Advance Q2 GDP, July Chicago PMI

San Francisco Fed President Janet Yellen will discuss her economic outlook with the Idaho/Oregon Bankers Association on Tuesday morning. New York Fed President William Dudley is scheduled to speak to the Association for a Better New York on Wednesday. He will also discuss the economy.

The big question is whether the market can sustain its upward momentum. Though volume has largely remained below average - and continues be significantly less than what we saw in April - stocks are in a bullish mode. Plus, 4.6 companies have topped expectations for every one that has missed - a high proportion.

Understand, however, that what we're seeing is mostly a game of hot potato. Fast money is moving the markets and can change direction without warning.

Companies That Could Issue Positive Earnings Surprises

Four brokerage analysts raised their second-quarter forecasts on Apache (APA) within the past 7 days. The revisions bring the total number of positive changes made over the past 30 days to 9. Combined, the new forecasts have pushed the consensus earnings estimate 16 cents higher to $1.00 per share. The most accurate estimate is more bullish at $1.07 per share.

APA has beat twice and missed twice during the past 4 quarters, so there is some risk to this call, but you have to like the rising forecasts. Apache is scheduled to report on Thursday, Jul 30, before the start of trading.

Corning (GLW) twice raised its guidance for second-quarter LCD glass volume. The revisions have led to a steady increase in the average forecast. The consensus earnings estimate of 30 cents per share is 5 cents above the average forecast of a month ago. The most accurate estimate is even more bullish at 32 cents per share. GLW has topped expectations during 2 out of the last 3 quarters, though its fourth-quarter results were disappointing. Corning is scheduled to report on Monday, Jul 27, before the start of trading.

Life Technologies (LIFE) has topped expectations for 10 consecutive quarters. Recent, positive revisions by 3 covering brokerage analysts suggest the company could beat again. The second-quarter consensus earnings estimate of 66 cents per share is a penny above the average forecast of a week ago. The most accurate estimate is more bullish at 68 cents per share. Life Technologies is scheduled to report on Tuesday, July 28, after the close of trading.

Western Digital (WDC) has topped expectations by an average margin of 16 cents per share during the past 4 quarters. Brokerage analysts are anticipating another comparatively good report, as 5 have raised their second-quarter forecasts within the past 30 days. The revisions have resulted in a 5-cent increase in the consensus earnings estimate, pushing it up to 27 cents per share. The most accurate estimate is more bullish at 33 cents per share. Western Digital is scheduled to report on Tuesday, Jul 28, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

Eight analysts have cut their second-quarter projections on Chevron (CVX) within the past month, including 3 during the past week. The negative revisions caused the consensus earnings estimate to fall 20 cents to 97 cents per share. The most accurate estimate is more bearish at 94 cents per share. CVX has missed twice during the past 4 quarters. Chevron is scheduled to report on Friday, Jul 31, before the start of trading.

Charles Rotblut, CFA, is the senior market analyst for Zacks.com.

About the Zacks Rank

Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank Stocks have generated an average annual return of +26%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained +43.8%, while the S&P 500 tumbled -37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 111% annually (-0.8% versus +8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of the industries and the stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=5614.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros by going to http://at.zacks.com/?id=5615.

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Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Contact: Charles Rotblut, CFA
Company: Zacks.com
Phone: 312-265-9352
Email: pr@zacks.com
Visit: www.Zacks.com

On Friday, US stocks registered their fourth-straight week of declines as a dip in consumer confidence and Chevron’s (NYSE:CVX) bleak profit outlook highlighted concerns about the health of the global economy.  The Dow Jones Industrial Average lost 37 points, or 0.4%. Tech-heavy Nasdaq rose 3 points or 0.2% and the S&P 500 index eased 3 points or 0.4%.  Volume remained light with only 922 million shares trading and advancing issues ahead of decliners by a narrow margin.  For the week, the Dow slipped 1.6%, the S&P 500 fell 1.9% and the Nasdaq declined 2.3%.       

Although Alcoa (NYSE:AA) launched second-quarter earnings season with a smaller-than-expected loss, Chevron’s (NYSE:CVX) profit warning heightened concerns about second-quarter earnings and investors sold off stocks.  Crude prices continued their decline, remaining near $60 level.  Exxon Mobil Corp. (NYSE:XOM) slid 4.9%. 

Among the S&P 500 industry groups, telecom companies were the worst performers.  AT&T (NYSE:T) fell 4.7% to $23.44, and Verizon Communications Inc. (NYSE:VZ) declined 5.2% to $28.62 after Sanford C. Bernstein & Co. cut profit estimates for these companies, citing declining revenue from corporate customers.  Technology stocks got a boost after Goldman Sachs upgraded the U.S. hardware and software sectors to "attractive" from "neutral," citing potential growth in demand from businesses.  Goldman (NYSE:GS) also raised its price target on Apple Inc (NASDAQ:AAPL) to $160 from $145.  Apple rose 1.6% to $138.52.

Among the financials, results are expected from Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC), Citigroup (NYSE:C) and JP Morgan (NYSE:JPM).  Analysts expected Goldman Sachs (NYSE:GS) to report second-quarter profit of more than $2 billion on strength in the firms' bond, currency and commodity trading operations.  Among the technology companies due to report their earnings are: Intel (NASDAQ:INTC), Google (NASDAQ:GOOG), Nokia (NYSE:NOK) and IBM (NYSE:IBM).  Also among the key companies reporting this week are: Johnson & Johnson (NYSE:JNJ), General Electric (NYSE:GE), CSX (NYSE:CSX), and Abbott Labs (NYSE:ABT). S&P500 second quarter earnings are projected to have declined 35% in the quarter, compared with a 33% first quarter drop.

In the first two months of the second quarter, total domestic oil equivalent production increased 11 thousand barrels per day (MBOE/d) from first-quarter levels, driven by the restored Gulf of Mexico operations. The net international oil equivalent production, however, fell by 13 MBOE/d from the first-quarter level.

During the first two months of the second quarter, crude price realizations averaged at $48.79 a barrel, up from $36.85 in the first quarter. Realized natural gas prices for this period averaged at $3.26 per Mcf, compared with $4.14 in the first quarter.

Chevron anticipates downstream earnings to be affected by significantly lower refining margins. While the outlook for U.S. refining margins is gloomy, the company expects to increase marketing margins.

We view Chevron’s healthy upstream outlook as a positive for the company as more than three-fourths of its earnings comes from this segment. Chevron has extensive upstream operations in all major hydrocarbon-producing regions of the world. Its current development project pipeline is among the best in the industry, which is projected to add more than 1 MMBOE/d by 2011.

We continue to rate Chevron shares a Buy due to the company’s attractive inventory of development opportunities and recent exploration successes that put it in an advantageous position relative to its opportunity-poor peers. We believe that the company is capable of generating above-peer group average production and reserve growth in the next few years.

Traders were in the pause mode yesterday but indexes managed to end the day in positive territory.  The Dow Jones industrial average edged up 4.76 points, or 0.06%, to 8,183.17 points.  The S&P 500 index added 3.12 points, or 0.35%, at 882.68 and the tech-heavy Nasdaq was up 5.38 points, or 0.31%, at 1,752.55.  Trading was light with only 1.01 billion shares on the NYSE exchanging hands and advancing shares ahead of declining issues by a three-to-two margin.  Treasuries declined with the 2-year off 1/32 and the 10-year down 28/32 despite signs of strength in a 30-year debt auction.

Consumer spending remains a cause for concern as evidenced by June same-store sales report.  For the month, comparable sales declined 5.1% versus the 4.8% expected.  However, Wal-Mart (NYSE:WMT) numbers, which previously represented a 50% monthly weighting, were absent this time.  Costco (NASDAQ:COST) reported sales declined 6% while Target's (NYSE:TGT) comparable sales were off 6.2%; however, Target (NYSE:TGT) said second quarter earnings will equal or exceed estimates of 64 cents.  Abercrombie & Fitch (NYSE:ANF) said same-store sales fell 32% versus a year ago.

Among S&P 500 industry groups, eight moved higher.  Financials rose 1.1% after Bank of America/Merrill (NYSE:BAC) noted strength in Goldman Sachs (NYSE:GS) shares, adding the firm may post record trading revenues.  Goldman Sachs (NYSE:GS) rose 3.9%.  Healthcare shares dropped 0.9%, with Merck (NYSE:MRK) declining 3.7% and leading the decliners on the DJIA.  Merck (NYSE:MRK) shares suffered from news that a clinical trial of its cholesterol drug Zetia had been halted. Natixis Bleichroeder downgraded the shares to "buy."

Yesterday crude prices hovered above the $60 level.  Chevron (NYSE:CVX), which reports its quarterly results on July 31, warned of a second quarter profits dampened by sharply lower US refining margins and currency losses from the weak dollar.

The project includes development of natural gas condensate reservoirs within the onshore Shah field, construction of a new one billion cubic feet/day natural gas processing plant, as well as new natural gas and liquid pipelines and sulfur-exporting facilities at Ruwais Industrial City, UAE.

The Shah development, located approximately 180 km south-west of Abu Dhabi, would have the capacity of pumping 540 million cubic feet per day of gas. The project is expected to be completed by early 2015.

Under terms of the deal, both entities will equally share costs of the project and set up a new company to manage Shah facilities once it becomes operational. ADNOC will own 60% interest in the joint venture, while ConocoPhillips would own the rest.

We believe that this deal with ADNOC to develop the Shah field is another example of ConocoPhillips’ growing exposure to lucrative international regions. However, the outlook on U.S. natural gas and refining markets remains relatively cautious. And since the company has heavy exposure to domestic natural gas (about a third of total volumes) and refining segments, we are concerned.

As such, we maintain our Hold recommendation on ConocoPhillips’ shares given the company’s competitive disadvantages relative to its super-major peers such as Chevron (CVX) and Exxon (XOM).

• AIG (NYSE:AIG) is reportedly in early talks with rival MetLife (NYSE:MET) to sell its Alico unit, which could bring in as much as $15 billion

• Credit Suisse (NYSE:CS) raised its rating on KB Homes (NYSE:KBH) to "outperform"

• Bank of America/Merrill (NYSE:BAC) upgraded Goldman Sachs (NYSE:GS) to "buy," on expectations of better-than-estimated second quarter earnings, due out next week. Analysts upped the price target from $144 to $175, increasing estimates for 2009 and 2010 as well

• Among same-store-sales numbers: Less-worse numbers were posted by Zumiez (NASDAQ:ZUMZ), with a 19.3% decline versus estimates of a 20.4% drop. Worse-than-expected results were posted by Limited (NYSE:LTD) down 12% versus estimates of a 7.9% drop, and Wet Seal (NASDAQ:WTSLA) with a 11.1% drop versus estimates of a 8.7% decline

• Walgreen (NYSE:WAG) increased its quarterly dividend 22% to $0.1375

• Paccar (NASDAQ:PCAR) halved its quarterly dividend payout from 18 cents to 9 cents

The deal builds on the leasing contract StatoilHydro has had at the terminal since 1993 as per which the Norwegian company currently has access to around 40% of the terminal's capacity. The transaction is conditional on the extension of this lease with the Bahamian government, a satisfactory due diligence procedure, besides necessary regulatory approvals in the Bahamas. The companies hope to conclude the deal by year-end. 

 This asset acquisition is seen as a strategic move by StatoilHydro to support its global upstream growth plans. Additionally, the inclusion of South Riding Point terminal will bolster the company’s operations in North America by making volumes more easily marketable to the U.S. customers. 

 South Riding Point has a capacity of 6.75 million barrels in ten storage tanks, having two berths, one for a very large crude carrier. StatoilHydro is planning to upgrade the terminal to allow blending of all kinds of crude oils, including the more cost advantaged heavy crude oil.

 We currently rate ADRs of StatoilHydro a Hold on valuation grounds. Our preferred plays in the integrated space remain Exxon (XOM) and Chevron (cvx)for low-risk ideas and Marathon (MRO) for high-beta.

ConocoPhillips cautioned about lower production in the quarter, compared to the year-earlier as well as the previous quarter. The company anticipates production from the E&P segment, including Canadian Syncrude and excluding LUKOIL, to be 1.86 million barrels of oil equivalent per day (MMBOE/d), while its first quarter 2009 and fourth quarter 2008 production were 1.93 MMBOE/d and 1.87 MMBOE/d, respectively. Before-tax exploration expenses are expected to be $225 million, essentially flat with the first quarter 2009 figure.

The Refining and Marketing segment is also expected to be impacted by low distillate margins and considerably squeezed light-heavy crude differentials. Anticipated worldwide average crude oil refining capacity utilization rate in the upper 80% range compared to 81% in the first quarter. International utilization rate is expected to be in the low 70% range, compared to 85% in the first quarter. This lower utilization rate reflects turnaround activity in Europe and production run cuts at the Wilhelmshaven, Germany refinery.

Despite the turnaround in oil prices, ConocoPhillips experienced sluggishness in market conditions for refined products as the increase in summer demand was hampered by the weak macro backdrop.

While this turnaround is beneficial to the entire sector, we are maintaining our Hold recommendation on ConocoPhillips shares, given the company’s competitive disadvantages relative to its super major peers such as ExxonMobil (XOM) and Chevron (CVX). These disadvantages include a high-cost OECD-centric asset base and heavy exposure to the relative tentative outlook for U.S. natural gas (about a third of total volumes) and refining markets.

Due to a lack of infrastructural facility, nearly 800 MMcf of natural gas is burned off every day from the Basra oil field in Iraq. The Government wants to utilize this gas for domestic electricity production and export the balance, if any.

In September 2008, Shell and Iraq’s South Gas Company had signed an agreement to produce gas from key oil fields in southern Basra province. For this, they will form a joint venture with Shell holding 49% interest and South Gas Company owning the rest. Both companies are expecting the final deal to be signed within a year.

Royal Dutch Shell – the second-largest natural gas producer in the world – was awarded the deal from amongst many other international players. In terms of assets, Shell owns a strong and diversified portfolio of global energy businesses offering attractive long-term growth opportunities.

However, Shell does not compare favorably with its super-major peers, Exxon (XOM) and Chevron (CVX), in terms of reserve lives, upstream growth, costs and financial returns.

While Shell has decided to invest liberally in several integrated projects by divesting non-core assets, it remains to be seen how this can become fruitful for the company. Until then, we prefer to stay on the sidelines and maintain our Hold recommendation.

On Monday, June 29, Paris-based International Energy Agency (IEA) reduced its 5-year world oil demand outlook, citing the impact of the ongoing economic slump. In a report, the energy-monitoring body of 28 industrialized countries estimated that global oil demand would rise by a meager 0.6% (or 540,000 barrels per day) annually between 2008 and 2014, reaching 89 million barrels a day in 2014 from last year's 85.8 million barrels a day. IEA's latest medium-term report is based on expectations of a 5% annual economic growth from 2012 onwards by the International Monetary Fund.

The energy agency's previous forecast, issued in December 2008, predicted annual growth of 1.6% (or 1 million barrels per day). In its `lower GDP scenario', which assumes that a rebound in the global economy will be restricted to 3% a year, IEA sees oil demand contract at 0.2% on a yearly basis to average 84.9 million barrels a day in 2014. However, irrespective of the recovery scenario, the report said that growth in oil demand over the forecast period will be driven by non-OECD countries, with oil consumption declining in OECD countries (an organization of developed countries).

The IEA warned that demand can contract even more depending on the pace of the global economic recovery from the worst recession in over 50 years. The economic crisis has crippled oil demand in developed economies and slowed growth in China and India. According to the agency, there is also the looming possibility of a supply crunch as recession forces companies to cut their E&P capital expenditures and defer new projects. As new oil projects are put on the backburner, the IEA estimates global oil capacity to go up by 4.2 million barrels a day by 2014, as against its previous estimate of 5.5 million barrels a day.

The agency also cut its supply forecasts and now expects output from non-OPEC countries to drop 400,000 barrels a day in the 2008-2014 period (in particular from Mexico and Russia), compared with a previous forecast of an increase of 1.5 million barrels a day. IEA said that the current rally in commodity prices (oil prices have recovered from a low of $32.40 per barrel in December 2008 to the current level of roughly $70 per barrel) could further damage the nascent economic recovery.

In this current turbulent market environment, we advocate the relatively low-risk energy conglomerate business structures of the large-cap integrateds, with their fortress balance sheets, ample free cash flows even in a low oil price environment, and growing dividends. Our preferred names in this group remain Exxon (XOM) and Chevron (CVX).

The Down Jones industrial average advanced 91 points or 1.1% and the S&P 500 increased 0.9%.  NASDAQ edged up 0.3%.  Volume on the NYSE was light with only 1.07 billion shares exchanging hands and advancing issues outpacing declining stocks by a three-to-two margin.  The measure of market volatility, the CBOE Vix, retreated 2.2% to 25.35%, its lowest level since mid-September.  Treasury prices jumped, with the yield on the benchmark 10-year note declining to 3.48%.  Crude prices jumped to more than $71 per barrel on higher demand expectations and reports that Nigerian militants partly shut down an offshore oil facility.    

Trading is expected to remain volatile this week as some money managers do last minute adjustments to their portfolios, a phenomenon known as "window dressing."  The week, cut short by the Independence Day holiday, also brings a spate of economic data and is likely to provide a sense of where the markets are headed.  Of key importance is the monthly employment report that is due on Thursday.  There are expectations that unemployment in US rose at a slower pace than projected.   

The jump in crude prices boosted energy stocks, sending shares of Chevron (NYSE:CVX) up 1.4% and ExxonMobil (NYSE:XOM) up 2.2%.  A WSJ report that said banking firms are expected to report higher second-quarter profits boosted financials. Moreover, SLM (NYSE:SLM) shares rallied 8.5% on pricing details of its student loan services contracts, announced yesterday by the Department of Education.

Meanwhile, Apple Inc. (NASDAQ:AAPL) announced that CEO Steve Jobs has returned to work.  The iPhone maker said Jobs will work at Apple offices "a few days a week" and work from home the other days.  Microsoft (NASDAQ:MSFT) rose 2.2% after Deutsche Bank (NYSE:DB) raised its price target on the software maker.  General Dynamics (NYSE:GD) rose 2.8% to $57 and Eastman Chemical (NYSE:EMN) jumped 3.7% to $38.79. 

Among DJIA components, all but Alcoa (NYSE:AA) advanced.  Hewlett-Packard (NYSE:HPQ) led the gainers with an advance of 3.5%, followed by Bank of America (NYSE:BAC), which rose 3.5% and Merck (NYSE:MRK), which added 3.2%.  The $22.4 billion Magellan Fund reported it raised its holdings of Bank of America (NYSE:BAC) in May. Merck (NYSE:MRK) rose after reporting it has returned to normalized shipments of its Zostavax shingles vaccine.  However, Alcoa (NYSE:AA) declined after analysts at FBR Capital, downgraded the stock to "underperform" from "market perform", citing valuation and oversupply concerns.

All ten S&P500 industry groups recorded gains, with utilities rising 1.3%, oil and gas adding 1.2%, telecom rising 1.2%, and financials advancing 1.1%.  Home builders also rose after Credit Suisse (NYSE:CS) upgraded KB Homes (NYSE:KBH), which had reported signs of moderation in certain negative housing trends. Lennar (NYSE:LEN), which reported new home sales and orders picked up during the quarter, jumped 5.8%.  Morgan Stanley (NYSE:MS) upgraded JC Penney (NYSE:JCP) shares to "overweight" from "equal-weight", noting the company was "the most likely candidate" among department store chains to outperform current margin projections for the second quarter.

* PetSmart (NASDAQ:PETM) raised its quarterly dividend to 10 cents from 3 cents; the company also announced plans for a $350 million stock purchase plan

* Bank of America (NYSE:BAC) announced efforts to raise over $2.5 billion in fresh capital through the swap of preferred for common shares, which priced at $12.7048

* Chevron (NYSE:CVX) announced production has begun at Brazil's Frade Field, a $3 billion project, which is projected to result in production levels of 90,000 barrels daily by 2011

* BMC Software (NYSE:BMC) reaffirmed its 2010 earnings guidance ex-items of $2.37-$2.47 a share, with operating cash flow expected at $600-$650 million, noting the firm has been gaining market share in IT management software space

* Rite Aid (NYSE:RAD) reported first quarter loss of 11 cents, topping estimates by 2 cents, as revenues dropped 1.2% to $5.5 billion, inline with Street projections

* China Petroleum & Chemical (NYSE:SNP) announced agreement to purchase Addax Petroleum for $7.3 billion cash

Pre-market futures suggest a flat opening as traders look for concrete signs of an economic recovery, amid fears of increased government interventions and a crushed economic rebound.

Commodities and financial shares led the decliners yesterday, but healthcare stocks rose after Democratic leaders began working on a healthcare overhaul that would make it mandatory for all Americans to have health insurance coverage.  Shares traded in a narrow range, swinging between gains and losses.  Among S&P industry groups, financials led the declining issues with a 2.2% fall.  Oil and basic materials both recorded a 1.6% fall.  Stocks of consumer services companies gained 1.1%, with drug retailers rising 2.3%.

Among financial sector issues, Bank of America (NYSE:BAC) fell 3.4%, Citigroup (NYSE:C) plunged 5.2% and Wells Fargo (NYSE:WFC) recording a 5.4% decline.  JP Morgan (NYSE:JPM), Goldman Sachs (NYSE:GS), State Street (NYSE:STT) and Morgan Stanley (NYSE:MS) repaid funds borrowed under the government's TARP program.  The Obama Administration's proposed plan for a major financial system overhaul to counter the "cascade of mistakes and missed opportunities of the past decade," however, could not boost sentiments, even as $68 billion of TARP funds were repaid on Wednesday.  S&P, on its part, cited less favorable conditions industry-wide and greater volatility in financial markets for its decision to lower ratings on banks. Banks mentioned included Regions Financial (NYSE:RF), Wells Fargo (NYSE:WFC), Capitol One Financial (NYSE:COF) and PNC (NYSE:PNC).

Technology stocks, nevertheless, showed some resistance, riding high on a number of analyst upgrades and a better-than-expected forecast from Adobe Systems (NASDAQ:ADBE). Merrill/BoA upended its rating on Texas Instruments (NYSE:TXN) from "underperform" to its US I Focus List with a $27 target, noting its expected margin expansion even as the firm faces only modest cyclical recovery prospects. Qualcomm (NASDAQ:QCOM) rose after Goldman Sachs (NYSE:GS) added the firm to its conviction buy list, citing a raised global handset forecast along with an undervalued royalty business.

Chevron (NYSE:CVX) shares declined 1.5% after weekly crude stockpiles showed a larger-than-expected decline of 3.87 million barrels.

Among corporate releases slated for today are JM Smucker (NYSE:SJM) and Discover Financial Services (NYSE:DFS); Research in Motion (NASDAQ:RIMM) is expected to report results after today's close. Treasury Secretary Geithner is scheduled to testify in a House committee hearing on financial regulation. Jefferies' Healthcare Conference continues for its third and final session.

Dollar prices were under pressure after Russian President Dmitry Medvedev, speaking at a summit of the Shanghai Cooperation Organization, said the world needs new reserve currencies.  Wall Street futures point to a flat opening.  

On Monday, US stocks registered their worst slide in a month with the Dow Jones Industrial Average, which ended last week in a positive territory for 2009, went back in the red for the year. Among S&P 500 stocks, 95% registered losses. Commodities and basic material stocks declined, hurt by a rise in US dollar.  The morning session saw most of the declines and stocks traded sideways as the session advanced.  The NASDAQ, off 2.3%, and the S&P 500, down 2.4%, recorded their steepest declines since May 13.  Volume on the NYSE was light with only 1.1 billion shares trading.  Market breadth was negative with decliners outpacing advancing issues by a five-to-one margin.  The market's measure of volatility, the CBOE Vix, jumped the most since April 20, rising 9.5% to 30.81.

The National Association of Home Builders reported that confidence among U.S. home builders fell after rising for two months. A prime concern was the rise in mortgage rates that followed a recent selloff in U.S. Treasurys.  Meanwhile, US Treasuries moved higher for the third straight day, with the benchmark 10-year up 20/32 and the yield declining to 3.715%, falling back from their seven-month highs of last week.

A rising dollar reduced the luster of basic material and oil stocks as inflation hedges.  Positive comments at the G8 summit regarding the greenback's status as world's reserve currency helped the dollar, which rose 1.2% against a basket of currencies.  Copper prices declined 3.7% in New York trade and silver lost 5.7%.  Among DJIA components, only Microsoft (NASDAQ:MSFT) and American Express (NYSE:AXP) recorded gains.  Alcoa (NYSE:AA) led the decliners on the DJIA, dropping 6.5%.  Freeport-McMoRan (NYSE:FCX) fell 5.8% and US Steel (NYSE:X) shares declined 5.7%. Among energy stocks, ExxonMobil (NYSE:XOM) fell 1.3%, and Chevron (NYSE:CVX) declined 2.2%, with Schlumberger (NYSE:SLB) shares down 2.8%. Among S&P 500 components, only 22 advanced with all ten industry groups losing ground.    

The expected decline in industrial production of 1.0%, up from the drop of 0.5% prior, is largely attributed to the GM (NASDAQ:GMGMQ) and Chrysler bankruptcies. Capacity utilization rates are expected to have tightened to 68.4% from 69.1% prior, the lowest in 42 years since record-keeping began.

In overseas developments, ECB warned Eurozone banks on potential additional losses of over $283 billion this year and next.  In a report, the International Monetary Fund said exiting the fiscal stimulus programs will be challenging for the US.  The IMF Chief cautioned that the worst of the recession has yet to be felt. 

Among S&P industry groups, financials were the leading gainers, rising 3.4% as traders took reports of a failed Latvian bond auction in their stride.  A Bernstein upgrade of Goldman Sachs (NYSE:GS) to "outperform" also helped financials and the effects of the failed bond auction were nowhere to be seen.  Bernstein suggested Goldman's capital strength will allow the firm to consolidate its position further in fixed income, currency and commodity markets. Fifth Third Bancorp (NASDAQ:FITB), which has been asked by regulators to raise $1.1 billion as part of the stress tests, reported sale of $1 billion common shares and said it is on track to raise the required amount. Keycorp (NYSE:KEY) jumped 20% after RBC Capital Markets cited the stock a "top pick." Today's reports suggesting the FDIC is pushing for an executive shuffle at Citigroup (NYSE:C) may imperil CEO Pandit's tenure, and provide another reason for firms to shun government funds and rush to pay back TARP monies.

Basic material shares continued their advance, rising 2.1%, with Alcoa (NYSE:AA), up 6.2%, leading the list of gainers on the DJIA.  Improved demand scenario, especially from China, helped the advance in Alcoa shares. Oil and gas sector shares gained 2.1%. Among stocks from the sector, Chevron (NYSE:XOM) and Exxon Mobil (NYSE:CVX) led the gainers as crude prices surged 4.1% to $68.81, a seven-month closing high. Bullish analysts at Goldman Sachs (NYSE:GS) upped their forecasts for crude to $85 per barrel in 2009 and $95 in 2010.

Technology stocks advanced 1.5%, helped by prospects for new product launches and analyst upgrades. Apple (NASDAQ:AAPL) rose after the iPhone-maker's profit and share-price target was increased by Oppenheimer. Some reports suggested CEO Steve Jobs was expected to return from his medical leave by month's end.  Citi (NYSE:C) raised Google (NASDAQ:GOOG) price target to $580 from $450, on expectations that second quarter results will meet estimates and the company will report better results next year. Advanced Micro Devices (NYSE:AMD) said the company expects fourth quarter sales to improve from a year ago, helped by better economic conditions. Intel (NASDAQ:INTC) announced plans to purchase Wind River Systems (NASDAQ:WIND) for an all-cash deal valued at $884 million.

Dismal retail sales numbers in May, with an estimated 75% of retailers falling short of targets, posting an estimated 8.6% average drop in same-store-sales, however, could not check the rally. Costco (NASDAQ:COST) reported a 7% drop, versus estimates of a 6.4% decline; Target (NYSE:TGT) comparable-sales fell 6.1% versus expectations of a 4.3% drop; Saks (NYSE:SKS) disappointed with a 26.6% sales fall versus an anticipated 14% drop; Macy's (NYSE:M), however, was slightly ahead of expectations with its 9.1% decline, less than the 9.3% anticipated.

Stock futures point to a higher opening on the Wall Street, amid ECB and BoE interest rate decisions and weekly employment numbers and retailers' May same-store-sales figures, which is expected to have dropped 3.6%, according to Thomson Reuters (NYSE:TRI).

All ten industry groups on the S&P 500 lost ground Wednesday, with basic material and oil and gas shares, down 4.2% and 3.6%, respectively, leading the decliners. A sharp decline in oil prices also hurt energy stocks. Crude prices dropped 3.5% on an unexpected rise in weekly US inventory.  Valero Energy (NYSE:VLO), which said it expects to report a second quarter loss, plunged 18%; Alcoa (NYSE:AA) retreated 4.3%; Freeport-McMoRan (NYSE:FCX) shares dropped 5.7%. Among oil companies, Exxon Mobil (NYSE:XOM) declined 1.2% and Chevron (NYSE:CVX) declined 1.6%; Marathon Oil (NYSE:MRO) plunged 7.2% and ConocoPhillips stocks (NYSE:COP) registered a 4.8% decline.

In his prepared testimony to the House Budget Committee, Bernanke urged lawmakers that they should commit to control the nearly $2 trillion budget deficit.  The Fed Chairman also reiterated that the pace of economic contraction appears to be slowing.  The White House estimates that the budget deficit will reach around $1.8 trillion this year and decline to about $900 billion by 2011.

On Wednesday, ADP Employer Services reported US employers shed 532,000 jobs in May, more than the 525,000 expected.  The numbers, nevertheless, were fewer than last months' downward-revised 545,000.  Factory orders improved in 0.7% in April, versus expectations of a 0.9% gain, and up from the downward-revised 1.9% drop in March.

Credit Suisse's (NYSE:CS) equity analyst also cautioned against the current valuation levels given the recent spate of stock offerings and weak economic conditions.  Nevertheless, the analyst maintained a 920 S&P projection for 2009. According to Bloomberg data, the S&P currently is priced at 15.5 times earnings, its most expensive since last October, although below the 19.8 times monthly average of the past decade.

Stock futures show Wall Street is headed for higher open.  Dow futures rose 0.8% at 8,450. Standard & Poor's 500 index futures rose 0.7% to 911.80 and Nasdaq 100 index futures rose 1% to 1,433.00. 

Although government's ability to fund its massive debt requirements played in the minds of investors throughout the week, on Thursday traders chose to look at the bright side of things sending the DJIA up 1.3% to 8403.80; the NASDAQ up 1.2% to 1751; and the S&P higher by 1.5% to 906.83.  Stocks seesawed through the session as a better-than-expected auction of seven-year Treasury notes helped assure investors of an economic recovery.  And this optimism saw 26 of the DJIA's 30 ending higher and 77 of the NASDAQ 100 ending the day in the green. AT&T CEO, speaking at an investor conference yesterday, also sounded optimistic, noting, "I'm not seeing green shoots...But we haven't seen any deterioration either."

In last night's speech Dallas Fed President Fisher, speaking on the recent steepening of the Treasury yield curve, whether a result of burgeoning supply or improved recovery prospects, noted "I think it is probably a little bit of both, discounting the supply of new debt, but I detect...there is a pick up in confidence about the future."

As risk appetite grew, financials advanced and led the gainers on the DJIA.  JP Morgan (NYSE:JPM) jumped 5.7%; Bank of America (NYSE:BAC) was up 3.6%; and American Express (NYSE:AXP) recorded a 3.4% rise.  The oil and gas sector rose 3.0%, with Chevron (NYSE:CVX) increasing 1.9% and ExxonMobil (NYSE:XOM) rising 1.4% on the DJIA.  Weekly crude inventory levels posted a much sharper 5.413 million barrel drop than the -0.1 million drawdown anticipated, and deeper than last week's 2.1 million decrease. As expected, OPEC maintained production at current levels.  A rise in oil prices also boosted energy producers with Exxon Mobil Corp. (NYSE:XOM) adding 1.4% to $69.23. Schlumberger (NYSE:SLB) jumped 5.5% to $56.35. Occidental Petroleum Corp. (NYSE:OXY) advanced 4.2% to $65.47.

India's Sensex jumped 2,099.21 points, or 17%, to 14,272.63, before trading was halted for the day.     

Stock futures showed a higher opening on the Wall Street.        

On Friday, U.S. stocks declined as lack of a clear economic data suggesting economic recovery and General Motors' (NYSE:GM) announcement that it will drop 1,100 dealers in the U.S. weighed on sentiments.  The Dow Jones industrial average declined 63 points, or 0.8% and the S&P 500 index lost 10 points, or 1.1%. Tech-heavy Nasdaq declined 9 points or 0.5%.  The Nasdaq declined 3.4% during the week, ending a nine-week winning run.

On a weekly basis, the DJIA lost 306 points or 3.6%; the S&P 500 lost 46 points for a 5.0% drop.  However, the official close of the earnings season saw a silver lining: about two-thirds of the companies that reported their results beat earnings estimates.  The three month LIBOR eased to a record low of 0.83%, down from 0.94% just a week earlier.  Companies from Intel (NASDAQ:INTC) to Ford (NYSE:F) sounded optimistic, saying things are better than expected.

Among S&P industry grouping, financials were the leading decliners last week with a drop of 11.3%, followed by industrials, down 7.2%, basic materials, off 6.7%, and consumer services that ended the week 5.8% lower. Oil and gas shares last week fell 7.2% on demand-related concerns.  On Friday, 24 of the 30 Dow components ended in the red, led by Chevron (NYSE:CVX), Exxon Mobil (NYSE:XOM), Boeing (NYSE:BA), Caterpillar (NYSE:CAT), Merck (NYSE:MRK) and Wal-Mart Stores (NYSE:WMT).

The week lacks many market moving economic data. Nevertheless, several big names, including: Deere (NYSE:DE), Hewlett-Packard (NYSE:HPQ), Home Depot (NYSE:HD), and Target (NYSE:TGT) are due to report their earnings. Tuesday's April Building Permits and Housing Starts reports, which expected to show a gain in permits from 516,000 to 530,000 and in starts from 510,000 in March to 527,000 in April, may have a major impact on markets.  On Wednesday minutes from the April 28-29 FOMC meeting may indicate updated growth, inflation and unemployment expectations. On Thursday Leading Indicators are projected to show a gain of 0.6% in April from a decline of 0.3% the prior month.

In a Q&A at 1:00 PM ET today, Treasury Secretary Geithner is scheduled to answer questions regarding economic conditions. However, according to media reports, up to 500 more banks face possible closure as stress test criteria migrates to the smaller banks, which, the report says, could result in additional capital-raising needs of $24 billion among such banks. Today's 1:00 PM ET activity index from the National Association of Home Builders is expected to have risen from 14 in April to 16 in May.

Over the past several days banks have announced $36 billion in stock sales, according to Dealogic, making May already the busiest-ever month for share offerings. Although most agree concerns over dilution and procedural government intervention are far superior to concerns over solvency and/or nationalization issues, share prices have been trimmed to reflect the sales. General Motors (NYSE:GM) shares plunged 20.1% to their lowest since 1933, as executives and shareholders bailed out of their holdings with bankruptcy more probable.

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Here are highlights from Tuesday's Analyst Blog:

BP Beats on Better Cost Controls

London-based BP's (BP) first-quarter results came in better than expected on the back of stronger cost controls. Compared to the year-earlier level, weak commodity prices offset the impact of increased oil and natural gas production and lower costs.

BP's strong performance sets the stage for earnings releases by Exxon (XOM) and Chevron (CVX), which are scheduled to report their results on Thursday and Friday this week, respectively.

BP reiterated their 2% production growth guidance and lowered their capex budget to under $20 billion from around $22 billion. The company's attractive dividend (currently yielding around 7%) remains unchanged from the fourth-quarter level, but is up 3.5% from the year-earlier level. We believe that BP's dividend is safe as long as oil prices don not remain depressed (say, in the $30's) for an extended period of time -- an unlikely scenario in our view.

Ardea Lands Bayer Partnership

Early this morning in a news release, Ardea Biosciences, Inc. (RDEA) announced that it has entered into a global agreement with Bayer HealthCare (BAYRY) to develop Ardea's small molecule mitogen-activated ERK kinase (MEK) inhibitors for the treatment of cancer or other indications. The current focus will be on cancers.

Pursuant to the agreement, Ardea will grant Bayer a worldwide, exclusive license to develop and commercialize Ardea's MEK inhibitors for all indications. The agreement is valued at $407 million, not including royalties. This amount includes an upfront cash payment to Ardea of $35 million, as well as additional cash payments upon achievement of certain development, regulatory and sales-based milestones. Ardea is also eligible to receive low double-digit royalties on sales of products under the agreement.

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Here are highlights from Thursday's Analyst Blog:

COP Beats on Strong Production

ConocoPhillips' (COP) first-quarter results came in better than expected due to strong oil and natural gas production. Market expectations reflected the company's interim guidance provided on April 2. We have a Hold rating on COP shares, as we see better opportunities in this space through Exxon (XOM) and Chevron (CVX). Both of these are scheduled to report quarterly results next week.

The company reported recurring EPS of $0.56, down from $2.62 in the first quarter of 2008. The single largest contributor to the negative comparison is the price of crude oil, which will be a recurring theme this earnings season in the oil patch.

Linear Technology a Mixed Bag

Linear Technology Corp. (LLTC) has an attractive business model that features some of the most favorable margins within the technology sector. The company grew sales very strongly, coming off the last down-cycle. However, growth tapered off in later years, as management strategy involved focus on only those products that afforded company-standard gross margins.

This ensured very consistent cash flows. Linear has around $920 million in cash and short-term investments ($4.15 a share). Management continues to pay a dividend, and recently raised the amount to $0.22 per share. Historically, management execution has been extremely good during economic downturns. However, the current recession started from a credit crisis, which has a particularly strong impact on auto sales.

Xilinx: Cautious Beyond Q1

Shares of Xilinx Inc. (XLNX, Buy) are lower in early trading today following its release of Q4 and fiscal 2009 results yesterday after market close. Q4 revenues and EPS came ahead of consensus expectations and the lower end of the Q1 revenue guidance is also higher than the mid-point of current consensus estimates.

The company guided Q1 revenue of +/- 4% relative to Q4 revenues of $395 million with gross margin expectation of 61% - 63%, roughly flat with Q1 results. The company expects growth from the Asia-Pacific region and Japan, with declines in Europe and North America. XLNX is also implementing a two-phase restructuring during the current fiscal year, with Phase 1 having an immediate impact of $11-$13 million in charges in the June quarter.

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Whether a rally for Asian stocks outside of Japan -- up more than 30% from their low in 2009, set on March 4 -- can be sustained remains in doubt, with analysts saying that the full brunt of the global recession has yet to be reflected.

In Japan, the Nikkei 225 Stock Average fell 0.9%, to close at 8,842.68.  The Japanese market remained weak  after Sumitomo Realty & Development Co. missed its profit target and on concern that valuations at a seven-year high overstated earnings prospects.  A senior equity analyst wondered if the recent gain in Japanese shares is reasonable relative to earnings prospects for this year. 

Singapore devalued its currency after posting, on Tuesday, its worst ever quarterly economic contraction due to shrinking global trade.  A forecast for weaker demand for oil by the International Energy Agency sent crude oil prices tumbling to below $50 a barrel.

Media reports pointing to higher odds of a bankruptcy outcome for General Motors (NYSE:GM), as well as a reduction in guidance from Boeing (NYSE:BA), were a drag on the continuing rally by financial-sector shares, following the announcement of good quarterly results by Goldman Sachs.  The DJIA clawed its way back from a 120-point loss shortly after the open to close with a 25-point drop. Trading on the NYSE was a moderate 1.5 billion shares, with advancing shares ahead of decliners by a 3 to 2 margin.  Sentiment is expected to be guided by the likes of Phillips Electronics and defensive play Johnson & Johnson (NYSE:JNJ).

Financial stocks in the DJIA turned in dramatic advances on Monday, as Bank of America (NYSE:BAC) breached $11 for the first time since January 12, rising 15.4%, and Citigroup (NYSE:C) rose 25.0%. Also posting sharp gains were American Express (NYSE:AXP) which moved up 8.7%, and General Electric (NYSE:GE) which rose 7.1%. On the downside, General Motors (NYSE:GM) shares fell 16.2% after the NYT reported that the US Government had notified the troubled auto maker that  it should plan for a June 1 bankruptcy filing, should its talks with bondholders and the UAW on restructuring plans fail to materialize.  Among other notable movers, Boeing (NYSE:BA) shares fell 5.1%, after Cowen & Co. downgraded the stock to "underperform" from "neutral," noting airlines' inability to finance purchases of new planes.

Four out of the ten sectors in the S&P showed gains, topped once again by advances in financials, up 4.1%, followed by gains of 1.4% in basic materials, 0.3% in health care, and 0.1% in consumer services.  On the downside, oil and gas shares fell 1.2%, utilities -1.3%, consumer goods -0.8%, telecommunications -0.7%, technology -0.6%, and industrials -0.03%. Oil and gas shares were adversely affected by Chevron's (NYSE:CVX) earnings warning based on lower oil prices and shrinking refined-product margins. Moreover, the latest oil inventory report is expected to reveal a 2.2 million barrel increase in US crude stockpiles.  Metal prices increased on hopes for an upturn in the global economy.  Gold prices gained $12.50 to reach $895.80 and copper prices rose 5% during the session, sending Freeport McMoran (NYSE:FCX) and Rio Tinto (NYSE:RTP) shares up 4%.

Goldman Sachs reported better-than-expected results of $3.39 per share, beating estimates by $1.79. The firm also announced plans to sell $5 billion of new stock in its effort to pare down the $10 billion in government aid. The case was different for Genworth Financial (NYSE:GNW), whose shares fell 17.8% after it was denied S&L status, necessary for recipients of TARP funding, and granted to its competitors including Hartford Financial Services (NYSE:HIG).

Today's economic releases include government reports on wholesale prices.  Retail sales for March are also on the docket, and expected to post a 0.3% gain, following the prior month's 0.1% decline.  At 10:00 am, ET business inventories are expected to be announced. Technology bellwether Intel (NASDAQ:INTC) will release results after the close.

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Now on to the markets and today’s four Hidden Value picks…

The bear is raging again today.

European and Asian stocks ended mostly lower.  Back in the US, traders beat the Dow down by 350 points.

Crude oil fell to nearly $75. That’s half the price it was a mere four months ago…

And gold is up $10. This leads us to our first pick.

Urgent News… that Could Save…

This from Today's Financial News:

Oil stocks like Exxon (NYSE:XOM) and Chevron (NYSE:CVX) have been all over the place lately. Is the commodity boom finally over?

If you are an energy-industry investor, it is a good bet that you have quite a headache. With a free market getting artificial influence from nearly every direction, it is no wonder oil prices have been all over the place.

So what does this whipsaw action mean for investors? Well, for fast-acting investors it could lead to big profits. Pay attention to the news and invest accordingly.

Unfortunately, the big gains that were once possible from sudden crude price movements are much harder to find. Shares in big-name companies like Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) tend to move in much slower, more calculated fashion these days.

Your best bet is to do your homework and search out the smaller companies that are impacted by oil-industry news. Or even better, stray away from the oil industry and concentrate on the countless other companies trading at unbelievably low prices thanks to the recent market shakedown.

There are all sorts of fantastic buying opportunities out there that will not give you headaches from their wild, unpredictable gyrations. The oil and energy sectors are just one area to find big profits. Do not forget about the rest of the market.

Source: Crude prices slip: Commodity investors turn and run