• Tyson Foods (NYSE:TSN) reported better-than-expected earnings of 28 cents a share, beating Zacks estimates by 2 cents, on revenues of $7.2 billion, which exceeded Zacks estimates of $6.85 billion

• India’s Reliance Industries bid $12 billion in cash for Lyondell Bassell when it exits bankruptcy

• Microsoft (NASDAQ:MSFT) is reportedly in discussions with News Corp. (NASDAQ:NWSA) to "de-index" the firm's news websites from Google (NASDAQ:GOOG)

• Coca-Cola (NYSE:KO) announced plans to more than double the number of its bottling plants in China over the next ten years as part of its goal to triple sales to the country

• Hershey (NYSE:HSY) trust encouraged the firm to counter Kraft's (NYSE:KFT) hostile, $16.2 billion bid with its own, $17 billion offer

• According to S&P most US banks are failing to meet adequacy standards comfortably enough to avoid ratings downgrades. Both HSBC (NYSE:HBC) and Goldman Sachs (NYSE:GS) showed stronger-than-average balance sheets, with UBS (NYSE:UBS) and Citigroup (NYSE:C) well below average

• Dell (NASDAQ:DELL) announced plans to enter the smartphone business, in partnership with China Mobile and Claro. Its first product, the Mini 3, will be designed around Google's (NASDAQ:GOOG) Android operating system

• Disney (NYSE:DIS) reported fiscal fourth quarter results after yesterday's close, with earnings ex-items coming in 5 cents a share better-than-expected at 46 cents. Revenues of $9.87 billion came in well ahead of Zacks estimates of $9.18 billion

• McDonald's (NYSE:MCD) addressed its plans to open 1,000 additional restaurants next year, and provide an image makeover to the rest.  The firm set targets for average annual sales growth of 3-5% and average annual operating earnings growth of 6-7%

• Abercrombie and Fitch (NYSE:ANF) reported third quarter non-GAAP earnings of 30 cents a share, well above Zacks estimates of 20 cents, as revenues of $765.4 million topped Zacks estimates of $763 million

• The rue21 IPO of 6,765,437 common shares was priced at $19.00 per share. The stock will trade on the NASDAQ with the symbol RUE

• Goldman Sachs (NYSE:GS) upgraded Goodyear Tire (NYSE:GT) shares to "buy"

• Kohl's (NYSE:KSS) reported results of 63 cents a share, above Zacks estimates of 61 cents, on revenues of $4.1 billion, above Zacks projections of $4 billion

• Banking analyst Richard Bove strongly advised purchase of Bank of New York Mellon (NYSE:BK) shares, saying the firm's multiple should be twice current levels due to growth prospects

• Motorola (NYSE:MOT) is considering sale of its Home and Networks Mobility division as part of its turnaround plan. Analysts value the unit at $3-$5 billion

• Hewlett-Packard (NYSE:HPQ) said it agreed to acquire 3Com (NASDAQ:COMS) for $7.90 per share, in a deal valued at about $2.7 billion in cash. The company also posted preliminary fiscal fourth quarter results and raised 2010 guidance

• United Technologies (NYSE:UTX) agreed to purchase GE's (NYSE:GE) security business for $1.82 billion

• Reports said Microsoft's (NASDAQ:MSFT) new Bing search engine has been gaining market share against competing Google (NASDAQ:GOOG) and Yahoo (NASDAQ:YHOO)

• According to a WSJ report, News Corp's (NASDAQ:NWSA) Dow Jones is close to a sale of stake in its stock indexing unit, Stoxx Ltd, for $309 million

• Applied Materials (NASDAQ:AMAT) reported better-than-anticipated fiscal fourth quarter earnings of 13 cents, 10 cents above projections, on revenues of $1.53 billion, which topped estimates of $1.32 billion. The firm anticipates 30% 2010 revenue growth; layoffs of 1300-1500 over the next year are planned

• Clearwire (NASDAQ:CLWR) posted a third quarter loss of 43 cents a share, versus Zacks estimates of a 45 cents loss as revenues increased 13.2% to $68.8 million, slightly ahead of Zacks estimates of $68 million.  The firm maintained 2009-2010 guidance, and plans new $1.564 billion in equity financing

• Ralcorp (NYSE:RAH) reported earnings of $1.14 a share ex-items, versus Zacks estimates of $1.24, on revenues of $983.2 million, up 12.6% YoY, off Zacks estimates of slightly above $1 billion

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

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

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

• Wells Fargo (NYSE:WFC) lifted its growth expectations for the semiconductor group following release of third quarter numbers. Intel (NASDAQ:INTC) remained its first pick within the group, with "outperform" ratings also on Micron Tech (NYSE:MU) and Xilinx (NASDAQ:XLNX). Analysts increased 2010 growth expectations of 25% for the industry from 10-20% prior

• Goldman Sachs (NYSE:GS) added Polo Ralph Lauren (NYSE:RL) to its Conviction Buy List, with a price target of $94

• Goldman Sachs (NYSE:GS) also added Kroger (NYSE:KR) to its Conviction Buy List, with a price target of $27

• Goldman Sachs (NYSE:GS) removed Coca-Cola Enterprises (NYSE:CCE) from its Conviction Buy List, but maintained a "buy" rating on the shares

• Tyco International (NYSE:TYC) released better-than-expected third quarter earnings of 61 cents a share, 7 cents above estimates, on revenues of $4.42 billion, slightly higher than estimates of $4.32 billion

• Burlington Northern (NYSE:BNI) CEO advised Berkshire Hathaway (NYSE:BRK.A) is liquidating shares of rival railroads Norfolk Southern Corp. (NYSE:NSC) and Union Pacific (NYSE:UNP) as it readies its purchase of Burlington

• Google (NASDAQ:GOOG) moved further into the market for digital advertising on cell phones with the acquisition of AdMob for $750 million

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

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

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

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

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

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

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

Software license fees grew 18.7% year over year to $50.1 million. Maintenance fees declined 12.0% year over year to $109.7 million. Revenues from professional services came in at $58.1 million compared to $102.9 million in the same quarter last year. Compuware plans to have a smaller but more profitable Professional Services Business going forward.

Operating margin improved to 19% from 10% in the year-ago quarter due to a 27% decrease in operating expenses. The company has divested a few of its peripheral products and services (Quality family of products and DevPartner software) thereby reducing unprofitable revenue streams and increasing margins. The company plans to concentrate on its software business and deliver superior end-to-end application performance, which the company calls Business Service Delivery. 

These divestitures have reduced the top-line by $60 million when compared to the second quarter of last year. Net income came in at $28.0 million, up 29.7% year over year.  Earnings per share came in at 12 cents, which was in line with the Zacks Consensus Estimate.

During the quarter, the company repurchased approximately 7.3 million shares for about $53.5 million. The company expects to draw between $25 million and $35 million from its credit facility to fund its Gomez acquisition. Earlier this month, Compuware announced that it would acquire the privately-held Gomez Inc. for $295 million in cash.

Gomez is a leader in web application experience management and its clients include Google (GOOG) and Facebook. Gomez employs 272 people around the world. Compuware plans to retain all of them after the close of the transaction. The acquisition is expected to be completed by November 2009 and dilute fiscal 2010 EPS due to an amortization charge of $5 million per quarter.

Management expects to generate cash flow of $200 million from its operating activities in fiscal 2010 and targets an operating margin in the range of 25% – 30%. Management reiterated its EPS guidance between $0.60 and $0.70 (which includes the gain from the sale of quality solutions).
The company expects overall cost cutting activities along with operational momentum to drive significant margin expansion and EPS growth in the coming quarters. However, the economic climate remains tough and IT spending is not expected to gain impetus before 2010.

Headquartered in Detroit, Michigan, Compuware provides software products and professional services to many of the largest users of information systems in the world.

All five FCC commissioners (including the FCC chairman Julius Genachowski), represented by three democrats and two republicans voted in favor of the proposed new rule, which will now invite public comments, a process which is expected to continue till Jan 14, 2010. This will be followed by the review of the public feedback by the FCC with a final rule is expected not before March 2010. However, the republicans remain skeptical about the proposed rule.

The net neutrality regulation, which consists of a set of proposals, represents the first major initiative ever by the U.S. telecom regulator to control the way the Internet industry is managed. The rule is also backed by the Congress and the White House who are in favor of more regulation of the Internet. The FCC has set six principles to guide legitimate network management by the incumbent service providers.  

The rationale behind the net neutrality rule is that it will prohibit network operators from restricting any legal online content, devices, applications or services that competitive service providers wishes to run through the respective carrier’s networks. Operators have been accused of blocking or slowing traffic according to the revenues they generate from online contents.

However, the proposed “free and open Internet" rule also offers some flexibility to the network carriers to effectively manage their networks by preventing network congestion and blocking spam, viruses and illegal contents. While operators need to publicly disclose the way they manage their networks, they may be allowed to sell premium Internet services to the customers who pay more for their services.

The release of FCC’s proposal for net neutrality in September 2009 has become a bone of contention between the advocates of the rule and leading U.S. network operators. Large web content and application providers such as Google (GOOG), Amazon (AMZN) and eBay (EBAY) have joined a handful of public interest groups to raise voice against the discrimination by the ISPs and cable companies.

U.S. wireless and cable network operators such as AT&T (T), Comcast (CMCSA), Verizon (VZ) and Qwest (Q) however, have insisted that increased data traffic of bandwidth-intensive services and applications such as video streaming requires them to actively manage their networks.

Moreover, operators have argued that the new regulation will discourage investment associated with expansion and upgrade of their networks and would also throttle innovation and competition. As a result, government intervention through the implementation of net neutrality conjures significant threat to the network service providers. On the contrary, the rule will boost web content providers who will benefit from the increased data traffic over the Internet enabled by the next-generation wireless broadband technologies. 

Chicago, IL – October 22, 2009 – Zacks Equity Research highlights Gentiva Health Services, Inc. (GTIV) as the Bull of the Day and MetroPCS (PCS) the Bear of the Day. In addition, Zacks Equity Research provides analysis on Yahoo! Inc. (YHOO), Google (GOOG) and Boeing Company (BA).

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:

Gentiva Health Services, Inc. (GTIV) has scheduled its third quarter earnings call for October 29th, one week from today. Gentiva reported a second-quarter net income of 59 cents per share which was much higher than the Zacks Consensus Estimate of 45 cents.

The company boasts of a diversified product portfolio. Its product offerings include home health, hospice, respiratory therapies and home medical equipment. Gentiva serves nearly 500,000 patients annually in more than 380 locations across 39 states. Gentiva has successfully grown primarily through acquisitions. During the past few years, the company has completed multiple acquisitions which have expanded its reach further.

Gentiva continues to look for profitable acquisitions. We have an Outperform rating on the stock.

Bear of the Day:

We downgrade our recommendation for MetroPCS (PCS) to Underperform, which reflects the company's disappointing results in the last quarter. Reported earnings missed the Zacks Consensus Estimate, partly due to higher operating expenses.

Moreover, subscriber growth decelerated significantly on a sequential basis, hurt by intense competition in the prepaid wireless segment. MetroPCS contends with high churn (customer switch) levels due to increased customer defection as its larger peers continue to lure subscribers with competitive service plans and better product offerings.

We are also concerned about the highly leveraged balance sheet, which may limit the company's ability to invest in growth initiatives moving forward.

Latest Posts on the Zacks Analyst Blog:

Yahoo! Reflects Broad Turnaround

Yahoo! Inc. (YHOO) reported third quarter earnings that beat the Zacks Consensus Estimate by 6 cents. Revenue beat the consensus by 40.7%.

Google’s (GOOG) results also thrashed estimates last week, signaling a broad-based recovery as reflected in higher advertisement spending.

Gross revenue of $1.57 billion was flat sequentially (up 0.2%) and down 11.8% year over year. The better-than-expected results were driven by a smaller negative impact of the ad quality initiatives announced in the second quarter and a stronger affiliate business than was originally anticipated.

The decline from the year-ago quarter indicates that although business seems to be improving, it is still at a significantly lower level than the pre-recession period.

Boeing Flies Lower in 3Q

The Boeing Company (BA) has posted a third quarter loss of $1.6 million or $2.23 per diluted share, worse than the Zacks Consensus Estimate of a loss of $2.12 per share. Last year, the company reported a net income of $695 million or 96 cents per share.

Earnings in the quarter were affected due to reclassification to research and development of costs for the first three 787-series test airplanes incurred in July ($2.46 per share) as well as in August and September (14 cents per share). The company also digested a charge of 99 cents per share from the delay in producing a new version of the 747-8 series freighter jet leading to late design changes.

On the other hand, revenues rose 9% to $16.7 billion from $15.3 billion in the year-ago period. The upside came from increased military aircraft deliveries and higher volume in services in its Integrated Defense Systems business. Its Commercial Airplanes segment improved on higher deliveries. Commercial Airplanes revenues had been affected in the year-ago period due to labor strikes and supplier production problems.

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

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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.

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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).

• Citigroup (NYSE:C) reported a 27 cent per share loss for the quarter, inline with Zacks estimates, on revenues of $20.4 billion

• Baxter International (NYSE:BAX) reported third quarter earnings of 98 cents a share, one cent above Zacks estimates, on revenues of $3.15 billion

• Research in Motion (NASDAQ:RIMM) is due to launch its new version of a touchscreen Blackberry, the Storm2 today

• Singapore's Oversea-Chinese Banking Group agreed to pay ING Group (NYSE:ING) $1.46 billion for its private banking operations in Asia

• According to Gartner data Acer overtook Dell (NASDAQ:DELL) as the number 2 PC computer brand by market share, with 15.4% of the global market, versus Dell's 12.8% and Hewlett-Packard's (NYSE:HPQ) 20%

• Anheuser-Busch InBev (NYSE:BUD) passed its $7 billion divestment goal to help repay its $52 billion Anheuser-Busch takeover, agreeing to sell breweries to CVC Capital Partners for an initial $2.23 billion

• Google (NASDAQ:GOOG) announced plans to launch an online bookstore in 2010

On Wednesday, the Dow Jones industrial average jumped 144.80 points, or 1.5%, to 10,015.86, its biggest one-day gain since August 21 and highest close since October 3 last year.  The Standard & Poor's 500 index rose 18.83 points, or 1.8%, to 1,092.02, it new 2009 high.  The Nasdaq composite index surged 32.34 points, or 1.5%, to 2,172.23.  Since hitting their 12-year lows in March of this year, the S&P 500 has jumped more than 61% as of Wednesday's close, and the Dow is up 53%.

Amid an improving global economic sentiment, the Dow’s brush with the 10,000-mark was a foregone conclusion but the seven-month old rally has made many wonder if a sharp correction is in the offing.  That correction, though, is yet to materialize and investors have jumped to buy on dips, helping stocks continue their advance.  Nevertheless, it remains to be seen where the markets are headed amid lingering threats like rising unemployment, a weak housing market and sloppy consumer spending.  

Yesterday, crude prices went above the $75 level to close at $75.18 a barrel, its highest close of the year. Gold prices hovered near the $1,065 per ounce level.  Meanwhile, safe-havens such as US Treasuries fell, with the 10-year closing the session off 23/32, as its yield rose to 3.423%.

The fuel for Wednesday's rally was provided by promising earnings results from Intel (NASDAQ:INTC) and JP Morgan (NYSE:JPM), and further helped by CSX’s (NYSE:CSX) strong numbers.  Intel's (NASDAQ:INTC) quarterly results beat expectations, and the chipmaker offered better-than-expected fourth quarter revenue guidance.  JP Morgan’s (NYSE:JPM) better-than-expected results came on the strength of its underwriting revenues offsetting credit card and consumer loan losses; profits rose nearly seven times.  This morning Goldman Sachs (NYSE:GS) reported numbers that was well above estimates, coming in at $5.25 per share, versus Zacks projections of $4.14 per share, and sharply above last year's $1.81.

Today's schedule contains numbers from such companies as Goldman Sachs (NYSE:GS), IBM (NYSE:IBM), Google (NASDAQ:GOOG), Advanced Micro (NYSE:AMD), Harley-Davidson (NYSE:HOG), Safeway (NYSE:SWY).

ValueClick is one of the largest online display advertising network operators in the industry. We believe the rebound in the company’s Comparison Shopping and Search segment and positive display ad trends in the U.S. will drive growth in the near-term.
 
The company’s second quarter earnings were above expectations, demonstrating its focus on driving bottom-line growth. However revenue was down year over year in the most recent quarter, impacted negatively by weakness in the lead generation business, which pulled down the Media segment’s revenue significantly. The lead generation business continues to deteriorate and has been taken into account in the subdued outlook for the third quarter.
 
ValueClick directly competes only with Marchex (MCHX) for placing web advertisements on affiliate networks. Moreover large Web portals such as Google (GOOG), Yahoo! (YHOO) and MSN will increase competition for ValueClick’s display ad business.
 
Over the long-term, we are very positive on online advertising growth; however, current economic conditions are creating significant headwinds for ValueClick and others in the industry.
 
Although there is a likely upside to the company’s shares over the longer term as Internet growth still looks healthy, we believe it is not advisable to get involved with the stock in the six-month time frame.
 
Thus, we have a Neutral rating on the stock.

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).

After a two-week selloff, fueled in part by concerns that the seven-month old rally had gotten ahead of any economic recovery, stocks got a boost last week following better-than-estimated economic numbers and Alcoa’s (NYSE:AA) surprise quarterly profit.  That helped investors set aside worries and extend the rally.  Meanwhile, White House economic adviser Lawrence Summers reiterated the Obama administration’s commitment to a strong dollar, citing recent comments by U.S. Treasury Secretary Timothy Geithner.

This morning’s stock futures show markets are headed for a higher opening as the busy week of earnings commences. Ahead of the market's open, Dow Jones industrial average futures are up 59 points, or 0.6%, to 9,866.  Standard & Poor's 500 index futures gained 7.30 points, or 0.7%, to 1,075.40, while Nasdaq 100 index futures rose 11 points, or 0.6%, to 1,736.50.

On Friday, the Dow Jones industrial average rose 78 points, or 0.8%, to 9,864.94 -- its highest closing level in a year.  The S&P 500 index gained 6 points, or 0.6%, to 1,071.49 and the Nasdaq climbed 15 points, or 0.7%, to 2,139.28.  On the New York Stock Exchange, advancing issues beat those that declined in price by a three-to-two margin.  For the week, the DJIA rose 4% and the S&P 500 index gained 4.5% - their best performance since July.  The Nasdaq advanced 4.5% during the week.

Last week's rally saw all but one of the S&P500 industry sector recording gains.  Only telecommunications shares failed to advance, and fell 5.9%, following AT&T's (NYSE:T) announcement that it plans to allow internet-based phone calls on phones including Apple's (NASDAQ:AAPL) iPhones.  The gains last week were led by basic materials (+8.4%), oil and gas (+7.6%), financials (+6.3%), industrials (+5.0%), tech (+4.9%), consumer services (+4.5%), consumer goods as well as utilities (+2.9%), and health care (+2.7%).  Financials rose after a Goldman Sachs (NYSE:GS) report recommended large-cap banks. Gains in industrial shares were helped by last week’s fall in dollar and Caterpillar's (NYSE:CAT) announcement that it plans to hike prices globally in 2010.  Retail shares rose after firms reported better-than-expected comparable monthly sales numbers.

This week sees the release of the first big batch of third-quarter earnings.  Companies reporting their numbers include Johnson & Johnson (NYSE:JNJ), Intel (NASDAQ:INTC), JP Morgan (NYSE:JPM), Citigroup (NYSE:C), Goldman Sachs (NYSE:GS), Nokia (NYSE:NOK), Google (NASDAQ:GOOG), IBM (NYSE:IBM), Bank of America (NYSE:BAC), and General Electric (NYSE:GE).

Chicago, IL – October 12, 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: Dell Inc. (DELL), Google (GOOG), AT&T (T), Apple Inc. (AAPL) and Research In Motion (RIMM).

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 Friday’s Analyst Blog:

Dell to Try Smartphone

Dell Inc. (DELL) is planning to enter the smartphone business. The renowned personal computer (PC) manufacturer is planning to launch a smartphone, which will run on Google’s (GOOG) Android mobile software and will be connected through telecom giant AT&T’s (T) network. We believe that Dell is following the footprint of another computer maker, Apple Inc. (AAPL), whose flagship smartphone iPhone generated substantial business for the company.

Currently the smartphone market is dominated by players like Apple and Research In Motion (RIMM). Both handset and PC-makers have understood the business potential of the smartphone and Dell is also in the process of grabbing its share. Rumor has it that Dell could launch the phone as soon as early 2010.

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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 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.

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

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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:
Mark Vickery
Web Content Editor
312-265-9380
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Chicago, IL – October 12, 2009 – Zacks.com releases the list of companies likely to issue earnings surprises. This week’s list includes Intel (INTC), Goldman Sachs (GS), Google (GOOG), Fairchild Semiconductor International (FCS) and Safeway (SWY). 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

Large-cap companies will dominate the earnings headlines this week.

Six Dow components, including Intel (INTC), are scheduled to release third-quarter results. Joining them will be Goldman Sachs (GS) and Google (GOOG). In total, we have confirmed reports from 72 companies, 29 of which are in the S&P 500.

There will be quite a bit of economic data published, including CPI and industrial production and capacity utilization. We will also get the minutes from the September Fed meeting, which will be scrutinized for any talking points about the pace of the recovery.

• Wednesday: September retail sales, Fed minutes, August business inventories, weekly crude inventories, weekly mortgage applications
• Thursday: September Consumer Price Index (CPI), October Philadelphia Fed survey, weekly initial jobless claims, weekly natural gas inventories
• Friday: September industrial production and capacity utilization, preliminary October University of Michigan sentiment

Both Council of Economic Advisers Chair Christina Romer and Federal Reserve Vice Chairman Donald Kohn will speak at the National Association for Business Economics' Annual Meeting in St. Louis on Tuesday. Romer has a morning presentation and Kohn will speak in the afternoon. Also on Tuesday, New York Federal Reserve Bank President William Dudley will talk to the Institute of International Bankers.

Fed Governor Daniel Tarullo will testify before a House subcommittee on Wednesday afternoon. His testimony will focus on the state of the banking industry. Dallas Federal Reserve Bank President Richard Fisher will appear at a conference in Dallas on Friday. The conference is co-sponsored by SMU's business school.

Though Monday is Columbus Day, both the stock and futures markets will operate on normal hours.

Though stocks are poised to continue the rally, a good reaction to the third-quarter results will be required to get the Dow firmly above 10,000. The key will be whether business conditions improved enough to enable companies to surpass both revenue and earnings forecasts.

Keep in mind the number of reports will jump substantially next week.

Companies That Could Issue Positive Earnings Surprises

Fairchild Semiconductor International (FCS) has topped expectations for 4 consecutive quarters. Another positive surprise could be in works as 4 analysts recently raised their third-quarter profit projections. These revisions have pushed the Zacks Consensus Estimate a penny higher to 7 cents per share. The most accurate estimate is even more bullish at 9 cents per share. FCS is scheduled to report on Thursday, Oct 15, before the start of trading.

More than half of the covering analysts raised their third-quarter profit forecasts on Goldman Sachs (GS) over the past 30 days. These revisions resulted in a 63-cent upward revision in the Zacks Consensus Estimate, to $4.07 per share. The most accurate estimate is even more bullish at $4.16 per share. Last quarter, GS beat expectations by $1.41 per share. Goldman Sachs is scheduled to report on Thursday, Oct 15, after the close of trading.

The third-quarter Zacks Consensus Estimate for Google (GOOG) has risen 2 cents over the past 30 days to $4.66 per share. Positive revisions by about a quarter of the covering analysts are behind the optimism. The most accurate estimate is even more bullish at $4.72 per share. Google has topped expectations for 4 consecutive quarters. Google is scheduled to report on Thursday, Oct 15, after the close of trading.

Five analysts have raised their third-quarter profit forecasts on Intel (INTC) during the past 4 weeks. Due to the fact that more than 30 analysts cover INTC, the changes did not move the Zacks Consensus Estimate from its current level of 27 cents per share. They did, however, result in a slightly more bullish most accurate estimate of 28 cents per share. The semiconductor company has topped expectations during 3 out of the last 4 quarters. Intel is scheduled to report on Tuesday, Oct 13, after the close of trading.

Companies That Could Issue Negative Earnings Surprises

Safeway (SWY) has missed expectations for 4 consecutive quarters. Recent earnings estimate cuts by 2 analysts suggest another disappointment could be forthcoming. The revisions pushed the Zacks Consensus Estimate down a penny to 31 cents per share. The most accurate estimate is more bearish at 28 cents per share. Safeway is scheduled to report on Thursday, Oct 15, 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

Now don’t get me wrong―Mr. Commodities wasn’t all doom and gloom. In fact, his talk was both informative and highly entertaining. But Rogers doesn’t sugarcoat things―he’s very matter-of-fact about his concerns and projections for the future. And most of them don’t bode well for the U.S.

I’ll be posting an interview with Jim Rogers on the site in the coming week, but for now, I just wanted to offer some highlights from his speech at ETF Securities' mini-conference and the Q&A that followed.

1. The 21^st century belongs to China

According to Rogers, the 19^th century was the era of the British Empire and the 20^th century was the U.S.’ heyday. But the 21^st century is China’s (though the rest of Asia is definitely going to get a boost too).

The reasons for this are many, but some points brought up by Rogers include the following:

1. The Chinese want to live like we do;
2. They are more eager to work;
3. They are better at saving;
4. There are 1.5 billion Chinese citizens (and 3 billion people in all of Asia), and we owe them money. They are, according to Rogers, “among the best capitalists in the world.”

There will be some setbacks, of course, Rogers says, but these are opportunities. “If you see setbacks in China, you should pick up the phone and get more involved,” he advised, before adding his favorite refrain, “The best advice of any kind that I can give you is to teach your children and grandchildren Chinese.”

China’s path to world domination started with Deng Xiaoping’s capitalist programs in 1978, and there hasn’t been any looking back since. Rogers views China’s dominance as nigh-on unstoppable except for one little thing: its water problem. There are parts of the country that are running out of water, and when the water disappears, Rogers points out, so does civilization. However, the country is acting aggressively to combat the problem, and he doesn’t view it as that much of a threat.

2a. Jim Rogers is not a Ben Bernanke fan

Yep, it’s a fact. No “Team Bernanke” shirts for Jim Rogers (who said to scattered applause during the Q&A session that if he was in charge of the U.S. economy he would “abolish the Fed and resign.”).

Rogers is appalled by the government’s actions—Bernanke’s in particular. The U.S. government’s strategy calls for the debasement of the dollar, he says, calling it a “horrible policy.” While he concedes it can work in the short term, it NEVER works in the mid- or long term.

“He’s going to run those printing presses until we run out of trees, because that’s the only thing he knows,” Rogers said of Bernanke.

Add that on top of the country’s rapidly growing astronomical debt, and Rogers believes you’ve got a recipe for disaster.

2b. The U.S. dollar is screwed

Consider this a corollary to point 2a. Its status as a reserve currency is teetering on a precipice, in Rogers’ opinion, and he’s not alone. In fact, so many people are selling dollars right now that he’s sitting tight, waiting for a possible—and ultimately unsustainable—rally in order to exit the market. Of course, if it fails to rally and just drops again …

“I’ll just have to panic and sell like everyone else,” Rogers said.

3. Commodities, commodities, commodities

OK, as mentioned before, there are 3 billion people in Asia, most of whom are aspiring to play the home version of the American Dream game show. And let’s face it: American society is largely about consumption. We like stuff―we buy it, we wear it, we eat it, we flaunt it, we sometimes even bedazzle it (yeah, Google that). So that’s a lot more consumption on the global level. Rogers notes that while consumption is expected to increase exponentially, not a lot of capacity has been added in the last few decades for a lot of commodities. Meaning, not a lot of new refineries have been built, and not a lot of new resources have been discovered or excavated for a variety of commodities.

In terms of oil, Rogers cites the fact that Saudi Arabia has not seen any new oil discoveries but has consistently said for the past two decades that its reserves are at 260 billion barrels (in which time it has sold 60 billion barrels). He also points out that farmers are a rapidly disappearing species. So to sum up―that’s a lot more people competing for diminishing resources (including the all-important energy and food). Basic supply and demand theory pretty much takes it from there.

“Commodities are the second-largest asset class in the world,” Rogers noted. And they are “the best anchor” for your portfolio, he adds.

Rogers says the typical life span of a commodities bull market is 18-20 years. We’re currently in year 11 right now. Yeah, it could end tomorrow, but that whole supply and demand imperative could also extend this bull beyond its typical time frame.

During the Q&A session, though, the conversation took a darker turn. One questioner asked if the increased competition for resources might lead to war, and Rogers allowed it was a possibility, though he hoped it would not come to that. He pointed out that when a rising power clashes with an established power, the result is usually war, and said that research consistently shows that resource shortages lead to war. So, sure, commodities shortages might start World War III, but if you invest in the commodities themselves, you might at least be in decent financial shape when the shelling stops—and I’m not being flippant at all. War drives up the costs of commodities.

4. U.S. government bonds are the next big bubble

Well, would you lend money to us? Rogers says short-term bonds are probably OK, but he advises getting out of anything with a longer maturity. He calls it “inconceivable” that anyone would lend money to the U.S. for 30 years at the going rate, and notes that the U.S. was a creditor nation as recently as 1987.

“Now the U.S. is the largest debtor nation in the history of the world,” he said.

And for bond portfolio managers, he had some very pointed advice: “Get a new job.”

5. Protect yourself

The underlying theme of Rogers’ entire speech was that the world is changing, and here are some things you should know if you want to come out the better for it (and for your family members, clients, etc., to also come out the better for it) financially. Based on Rogers’ observations, it seems recognizing that change is a key step, but so is adapting to it (see advice regarding learning Mandarin, for example). And in Rogers’ eyes, commodities are a good way to achieve this protection. No investment is certain of course, but right now, he thinks commodities look pretty darn good.

Best Comment Of The Night

Addressing one audience member’s question, Rogers asked if the young man were an MBA. The questioner admitted to holding an MBA and was promptly told he should swap his MBA for an agriculture degree from Texas A&M.

“You should become a farmer,” Rogers said.

That’s an old line for Rogers, but he added a new wrinkle. If you’re not going to become a farmer, you should open the first Lamborghini dealership in Iowa. Because with farmers closing in on extinction just as the world needs more food, that’s probably what they’ll be driving in a few years.

Chicago, IL – October 8, 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: Verizon (VZ), Google (GOOG), Apple Inc (AAPL), Deutsche Telecom (DT) and Sprint (S).

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 Wednesday’s Analyst Blog:

VZ & Google Seal Android Pact

Verizon (VZ) reportedly partnered with search engine giant Google (GOOG) to develop and market mobile devices and applications based on the Android wireless software platform. Android-based mobile handsets developed through this collaboration will be available on Verizon’s high-speed wireless network. Financial terms of the agreement were not disclosed by the companies.

Verizon, the largest wireless carrier in the U.S., is expected to launch two android smartphones in the coming weeks. Plans are also in place to roll out other Android devices including PDAs and netbooks in future.

Under the multi-year agreement, the companies will pool substaintial resources to jointly develop a family of Android devices that will incorporate innovative mobile applications and feature Google Voice (Internet voice service). The products and services will be marketed leveraging Verizon’s nationwide distribution network and will be available for sale in the carrier’s retail and on-line stores.

Android-based mobile phones have emerged as the biggest challenger to Apple Inc’s (AAPL) iPhone. Android smartphones are currently marketed in the U.S. by Deutsche Telecom’s (DT) subsidiary T-mobile USA and will also be available on Sprint’s (S) network soon. By leveraging Verizon’s vast nationwide 3G network coverage and addessable customer base of 87.7 million, Android phones are expected to make a big impact in the intensely competitive U.S. smartphone market.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

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 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.

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

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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

Chicago, IL – October 7, 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: Salesforce.com (CRM), Cisco Systems Inc. (CSCO), Microsoft (MSFT), Oracle (ORCL) and Google (GOOG).

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:

Salesforce Partners with Cisco

At a recent press release, cloud computing company Salesforce.com (CRM) disclosed that it will, along with Cisco Systems Inc. (CSCO), be delivering a complete contact center in the cloud. The Customer Interaction Cloud, formed by Cisco and Salesforce.com, will use the newly introduced service cloud 2 from salesforce.com along with Cisco Unified Communications.

This innovative solution will resolve the customer service issue of Small and Medium Businesses (SMB) to a large extent, and enable them to run their customer service operation through the cloud.

This product is mainly targeted at the SMB clients, as demand for cloud computing applications is strongest in this market. The company expects that by using customer interaction clouds, the agents will be able to achieve better solutions without incurring any extra cost on hardware, software or telephone equipment. Service Cloud 2 is already catering to the customer service needs of around 8000 companies.

Salesforce seems to be going great guns with its cloud computing business. The company is introducing all sorts of solutions by using its cloud computing platform. Recently, Salesforce has set up a company named FinancialForce.com in association with Unit 4 Agresso (UNI4), the parent company of financial software specialist CODA, which sells accounting software. Both the companies will invest in FinancialForce.com, which in turn will use CODA’s cloud accounting application -- previously known as CODA 2go -- to deliver finance and accounting solutions in the cloud.

We believe, that by forming this joint venture with Cisco, Salesforce is on the verge of creating another success story in the cloud computing space. Competition is tough, but the company is combating well with other players like Microsoft (MSFT), Oracle (ORCL) and Google (GOOG) to create its own place in the cloud computing world.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

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 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.

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

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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

• The CEO of Cadbury (NYSE:CBY) noted "complementary elements" of Kraft (NYSE:KFT) and Cadbury, but said he would still advise rejecting the deal at the current $16 billion bid

• Oracle's (NASDAQ:ORCL) CEO noted dangers of the European regulatory delay of its proposed $7 billion acquisition of Sun Microsystems (NASDAQ:JAVA), saying Sun Micro is currently losing about $100 million a month

• AMR (NYSE:AMR) announced a 30 million common and $250 million convertible senior notes offering

• Louisiana-Pacific (NYSE:LPX) said it is planning a public offering of 18 million shares of its common stock

• TJX (NYSE:TJX) said its board approved a $1 billion share buyback, reflecting 6.2% of the company's outstanding shares

• Microsoft's (NASDAQ:MSFT) Bing search engine managed to grab more share from Google (NASDAQ:GOOG), reaching 9.3% of market share in August, according to reports

• Harbinger Capital Partners said it sold 5 million shares of its total stake in the New York Times (NYSE:NYT), reducing its stake in the New York Times (NYSE:NYT) to 16.38% from 19.94%

• Credit Suisse (NYSE:CS) downgraded Dell (NASDAQ:DELL) to "neutral" and advised adding to positions in Hewlett-Packard (NYSE:HPQ), Apple (NASDAQ:AAPL) and EMC Corp (NYSE:EMC).  The analyst raised concerns of Dell's risky acquisition path

Salesforce.com enters the Government cloud computing segment in a big way with this deal, although many cabinet-level government agencies are already using the company’s services. The positive news comes just after the company’s introduction of Service cloud 2, an enhanced version of service cloud computing that provides better solutions to customers. This includes Salesforce knowledge, Salesforce Answers and Salesforce for Twitter. Salesforce is thus blazing all guns to make its cloud computing services available to customers across all segments.

Historically, Salesforce has achieved success in all cloud computing deals with government organizations. NASA uses Salesforce’s CRM applications in its partnership program with companies, federal agencies and non-profit organizations to get a macro view of its interactions with these agencies, while the US Army uses Salesforce CRM for recruitment to save time and resources. This apart, the US Department of State's Office of Nonproliferation and Disarmament Fund avails Force.com services for providing up to date budget information to program managers around the globe.

Government organizations are clearly benefiting from the cloud computing services, saving time by reducing cost of additional hardware and software and without incurring any additional employee cost. Going forward, these benefits should draw the attention of other government customers around the world, generating additional demand for companies like Salsforce.com in the cloud computing segment.

On the other hand, big companies like Microsoft (MSFT), Oracle (ORCL), International Business Machine (IBM) and Google (GOOG) are also entering this segment to get a share of this growing market, offering Salesforce.com tough competition.

With the distinct risk of turning this into a cheesy copy of the Oscars show I should thank Edward Hugh for his patient and thorough back-editing of the piece for English language as well as the actual arguments themselves. All mistakes and mishaps naturally fall entirely on my shoulders and criticism should be directed accordingly. I reproduce the executive summary below and the full report is online here where you can view it in Google Docs or download it as a PDF. The analysis includes data up until week 35 (and July for the monthly data). If you want a copy of the spread sheet, please let me know.

---

Executive Summary

Is the ECB deploying a variant of Quantitative Easing in any fashion, way, shape or form?

If you are talking about Quantitative Easing senso strictu then my answer has to be a simple and straightforward no. However, if we stop being quite so by the letter of the book, and broaden our definition slightly, then I would strongly suggest that the battery of credit enhancing measures put in place by the ECB when taken together with
the steady increase in securities accepted onto the balance sheet as collateral, do make it evident that the ECB - whether wittingly or unwittingly - has moved into some form of what we could at least call "quasi" Quantitative Easing.

Is the ECB indirectly monetizing the debt issuance of Eurozone governments?

If my initial answer to this question - before actually going through the books - would have been an outright yes, I now feel the need to tread much more carefully on this point, since I have most definitely not been able to conjure up that proverbial smoking gun. In fact, it has proved very difficult to establish any kind of direct link between the amount of funding drawn from the ECB refinancing operations and the purchase of government bonds by the MFIs at the national level.

This is not to say, however, that circumstantial evidence is not available that this process is taking place to some extent, and in some countries. I do believe, for example, that the massive purchase by Spanish MFIs of government bonds in that country does offer prima facie evidence that some such connection may well exist, and thus all I can say at this point is that further research is called for, and especially a much more detailed and discriminating data-mining dig-down. 

What are the prospects and possibilities for a viable exit strategy for the ECB from its non-standard monetary policy measures?

The measures collectively known as Enhanced Credit Support are by their very nature flexible. However, if there is anything we have learnt from the operation of monetary policy in Japan over the last twenty years it is that premature exit from the sort of substantial support the ECB is offering only makes matters worse, and in addition
this kind of massive liquidity easing is a lot easier to get into than it is to get out of.

A true economic recovery will inevitably be somewhat selective, and it is at this point that the ECB's problems will really start, since the recovery will begin in some countries and not in others. To take the extreme case: it will be awfully hard to maintain massive monetary easing for a Spanish economy which remains stuck in an "L" shaped non-recovery if in France headline GDP growth were to start to tick back again  towards - say - 2%. Then the real dilemmas which face the ECB will begin in earnest. As such, it is going to be much more difficult for the ECB to instigate that dearly beloved exit strategy than many currently like to believe.

The mobile app enables photo and video searching, sharing, uploading and emailing. It also allows automatic geotagging of photos and videos (depending on the model) and allows the user to add personal commentary.

The Flicker app is available in English, French and traditional Chinese languages for users in the UK, France, Singapore, Hong Kong, the U.S. and Canada.

Yahoo has modified its growth strategy this year by increasing focus on the mobile segment. The company revamped the Yahoo Mobile service as a combined application, using mobile versions of Yahoo OneSearch, OnePlace and OneConnect. It makes available search, news, e-mail, social networking, finance, weather, sports scores and other RSS feeds. The company has made the service available as a special app for the iPhone, as well as a browser-based app on more than 400 other mobile devices.

Yahoo also separated the development of mobile applications into general and special categories. The general applications, such as travel, personals or some entertainment sites are available through the browser option. Special applications can be downloaded on specific phones, such as the recently announced Flickr app. The company has also introduced Yahoo Finance and Fantasy Football apps for the iPhone and BlackBerry Bold, Tour and 8900 series.

Yahoo has chosen phones that have the largest number of interactive users, since developing special applications is an expensive affair. Sandeep Gupta, senior director of mobile applications, said that development of applications for other phones like Palm’s (PALM) Pre and Google’s (GOOG) Android-based phones was also underway.

The company has fallen behind third-party application developers that have already launched Mobile Fotos, Darkslide and Flickit. While these Flickr-based apps are likely to increase competition for the company, we expect the Yahoo mobile strategy to be ultimately more successful.

T Store will provide an open platform where content developers can sell their applications to users of mobile handsets based on the Wireless Internet Platform for Interoperability (WIPI), which allows cell phones to run applications regardless of manufacturer or carrier. Customers can download from a large assortment of multimedia content (approximately 6,500 applications), including games, phone decoration, music, broadcasting/movie and language/education that are categorized under eight main menus.

Registered content developers can sell their applications against a yearly registration fee, which is expected to be waived by the company by end of 2009 to boost developers' participation. The current revenue split is 70%/30% for the developers and SK Telecom, respectively. Since mobile users can download contents over the Internet, they do not have to pay expensive packet fees as in the case of downloading applications over the air.

Although T Store resembles Apple's (AAPL) App Store, it differs from certain aspects such as operating system compatibility and handset accessibility. Unlike App Store, T Store supports four mobile operating systems: Windows Mobile, Symbian, Android and Linux. Moreover, customers can access the store regardless of the type of handset they use or their service providers.

SK Telecom is the leader in the Korean wireless market, enjoying approximately 51% market share. However, competition has increased in the Korean mobile market due to the consolidation of KT Corp. (KTC) and its wireless unit KT Freetel in June 2009. As such, SK Telecom faces greater challenges in retaining wireless market share. Given the high level of wireless penetration in the Korean market, the company is pursuing various business opportunities that will enable delivery of new value-added services to its customers.

SK Telecom remains a dominant player in the Korean smartphone market with a rich portfolio of handset offerings, including the new BlackBerry Bold smartphone. Increased adoption of smartphones and associated data services continue to boost ARPU (average revenue per user).

To further strengthen ARPU, the company plans to introduce 40-45 new handset models during 2009 (including the potential launches of iPhone and Google's G1 android phone) and introduce diverse mobile applications. Launch of T Store represents an integral part of this effort, which is expected to yield revenues of KRW 1 trillion (US$778 million) by 2013.

OIN consists of member companies such as RedHat (RHAT), International Business Machines (IBM), Phillips and Novell (NOVL), which use open source technology in their products. OIM licenses the patents but typically does not resell them.

AST is in the business of acquiring patents from owners, licensing the technology back to them and ultimately selling off the patents. The member firms include big names in the technology space, such as Motorola (MOT), Cisco Systems (CSCO), Sun Microsystems (JAVA), Hewlett Packard Co. (HPQ), Verizon Wireless (VZ), Google (GOOG) and LM Ericsson Telephone Co. (ERIC).

For a long time now, Microsoft has been complaining about Linux software violating its patents and even filed suits against companies using the Linux-based software for the offense. The outcome of such suits has been varied. The recent allegation against navigation device maker, TomTom NV for instance, was settled out of court.

The company has also started licensing out these patents to firms distributing or using open source software. This seems like a smart thing to do since it enables Microsoft to generate some revenue from the open source segment as well.

Apple had earlier approved iCall, FriendCaller, Nimbuzz, Skype and Spotify app for its devices and now Vonage has been added to Apple’s App store.
 
All of these VoIP services use WiFi services to make calls. The apps that compete with Apple’s own services had been rejected earlier. However, Apple allowed VoIP apps that can work over WiFi only.
 
We believe that Apple will be benefited from the strong position of Vonage in the VoIP industry but we remain unsure about how different Vonage services will be from other app providers.
 
Carriers like Vonage provide services that are much cheaper than most traditional phone plans particularly for long distant calls, as a result of which consumers frequently change their preferences. Thus, it will be interesting to see how many new customers the Vonage service will be able to get for Apple.
 
Earlier, Apple rejected the Google (GOOG) Voice application from its app store, which is now subjected to an ongoing investigation by the FCC. Apple said that AT&T (T) in the U.S. bars it from allowing a customer to use AT&T's mobile network without explicit permission. This is due to stringent policies from AT&T, Apple’s exclusive carrier that blocks VoIP on 3G network due to quality issues.
 
AT&T would not want further competition from these service providers and may disapprove Vonage’s iPhone app to work over AT&T’s mobile network.
 
While we have several concerns over Apple’s new approval, shares of Vonage jumped approximately 40% after it received approval from Apple.

Chicago, IL – September 2, 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: Google (GOOG), Sony Corp. (SNE), Microsoft (MSFT), Apple (AAPL) and Hewlett Packard Co. (HPQ).

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:

Google Ropes in Sony

Google (GOOG) recently struck a deal with Sony Corp. (SNE), according to which the latter will ship the Chrome browser pre-installed on some of its PC models. The financial or other details of the transaction were not disclosed. A Google spokesperson said that the deal was in the nature of a first step and agreements with other leading PC-makers are expected to follow.

We think this is an interesting move and could be leveraged to boost sales of its Chrome operating system to be launched next year. Microsoft’s (MSFT) domination of the web browser space is largely attributable to its strategy of bundling the Internet Explorer with its operating system. Since MSFT operating systems continue to be the most commonly used, this is an obvious advantage. While Microsoft, being the market leader, is hindered by anti-trust actions from smaller players, Google Chrome is not likely to face this hurdle.

However, we expect the company to face stiff competition not just from Microsoft, but also Mozilla’s Firefox, Apple’s (AAPL) Safari and Opera, which is more commonly used as a mobile phone web browser.

Sony’s share of the PC market has been shrinking and the company has dropped out of the top five, based on shipments to the U.S. and worldwide (according to both IDC and Gartner) to top companies such as Hewlett Packard Co. (HPQ).

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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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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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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.

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312-265-9380
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• AIG (NYSE:AIG) and its former CEO and CFO have reportedly agreed to terms of binding arbitration in settling claims from shareholders regarding lost investments due to financial restatements

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

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

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

• EBay (NASDAQ:EBAY) is expected to announce plans to sell its Skype Internet calling division to private investors.  The company has said it wants about $2 billion for the unit

• Wal-Mart (NYSE:WMT) began website sales of merchandise not carried in its stores in a revenue-sharing exchange similar to Amazon.com's (NASDAQ:AMZN)

• Citigroup (NYSE:C) said its sold $1.3 billion in credit-card assets to an undisclosed buyer.  Terms of the sale were also not revealed

• Credit Suisse cut its Nokia (NYSE:NOK) rating to "underperform" from "outperform," and removed the company from its focus list.  The firm also cut its estimate for 2010 by 28%. Credit Suisse expects Nokia to lose smart phone market share next year

• Robert W. Baird upped its price target for Wells Fargo (NYSE:WFC) to $33 from $30

Chicago, IL – September 1, 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: China Mobile (CHL), Google (GOOG), Apple Inc. (AAPL), China Unicom (CHU) and Dell (DELL).

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 Monday’s Analyst Blog:

CHL Launches Ophone OS Platform

China Mobile (CHL) has reportedly launched its self-developed smartphone operating system platform today, known as the Open Mobile System (OMS). The Chinese wireless giant has also launched a line of handset models (called Ophones) based on its home-grown TD-SCDMA 3G wireless technology.

OMS is being developed by China Mobile leveraging Google’s (GOOG) open-source Android mobile operating system. This new software plaform is expected to drive the development of TD-SCDMA technology based cellular handsets.

Ophones, which operate on the OMS plaform, represents China Mobile’s response to the emerging threat from Apple Inc.’s (AAPL) iPhones. The company’s biggest rival, China Unicom (CHU), has reportedly sealed a three-year agreement with Apple to exclusively market the iPhone 3G in China through subsidized price plans. This has placed China Unicom in a strong position to drive its 3G subscriber count.

In order to facilitate the development and roll-out of Ophones, China Mobile has collaborated with leading international vendors such as Dell (DELL), LG, Lenovo, HTC and Samsung. More than 20 handset manufacturers are currently helping the company to expedite the development of its propritary wireless handset.

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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.

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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Motorola announced that its two new 3G handsets will feature an intuitive user interface and an efficient combination of Internet access, messaging, and multi-media applications based on the Android software ecosystem. Currently, more than 6,000 multimedia and social networking applications are available based on the Android ecosystem. Motorola is trying hard to expand this platform using its proprietary MOTODEV program. Management also declared that another 30 3G high-end mobile handset models are in the offing during fiscal 2010.

Motorola thoroughly revamped its critical Mobile Device segment. During the first half of fiscal 2009, management reduced its headcount by more than 8,000. Most of this reduction took place in the Mobile Device segment. As a result, operating expenses during this period were reduced by over $1 billion year-on-year. Going forward, management revised its guidance stating that the company will reduce its operating expenses by $1.8 billion in fiscal 2009 compared to the previous fiscal. Out of $1.8 billion, the Mobile Device segment alone will save $1.4 billion of operating costs.

Recently, Motorola entered into an agreement with Blockbuster Inc. (BBI) to offer mobile video entertainment to its customers. Users will be able to watch any movie/video games or can download the same on his/her handset that are available in the Blockbuster video library. Partnership with Blockbuster will give Motorola a competitive foothold compared to Apple Inc.’s (AAPL) legendary iPhone that offers movie download facilities through Apple’s own iTunes movie store.

Chicago, IL – August 26, 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: Microsoft (MSFT), Yahoo (YHOO), Google (GOOG), Nokia (NOK) and Research In Motion (RIMM).

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:

Microsoft Doing Everything Right

When I read the first article about the Microsoft (MSFT)/ Yahoo (YHOO) combo, I did not fully realize how it would change my search experience. But when I checked my Yahoo mail this morning, I was pleasantly surprised to see a Bing bar at the top. One of the things that crossed my mind was how could a regular Googler like me be enticed into using Bing?

It now appears that I have to do nothing, I just open a Yahoo finance/mail/or any other Yahoo page and there it is. But would I still continue using Google (GOOG)? I think not, especially if Google is not my home page and the content is more or less the same. This basically means that the focus has now shifted from use to content.

Microsoft has also introduced a freely downloadable version of MS Office, facilitating the use of the company’s word processing, spread sheet and PowerPoint products. Although Google already offers similar products, it was more of a defensive measure to protect the company’s market share.

The company recently signed an agreement with Nokia (NOK) to offer Word, Excel and PowerPoint features on select mobile phones from 2010. The revenue potential could be substantial, considering Nokia’s market share. While the deal should generate incremental earnings, many observers feel that it would mark the end of the Windows-based mobile operating system.

But Microsoft came up with yet another strategy to prove its adaptability to changing market dynamics. The company’s newly announced OneApp feature will use clouds to offer programs on GPRS phones in emerging markets. While smartphone penetration in these markets has been limited, feature phones have huge potential.

Microsoft has already entered into an agreement with South Africa’s Blue Label Telecoms, offering a dozen OneApp-powered applications. The initial package includes popular programs like Facebook, Twitter, Windows messenger and games. It would soon add other useful programs to enable bill payments and even health diagnosis.

The existing mobile operating systems from Research In Motion (RIMM) among others have made headway in the U.S. and other developed markets. Microsoft’s intention to target emerging markets makes sense to us.

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

Chicago, IL – August 26, 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: Research In Motion (RIMM), Google (GOOG), Yahoo (YHOO), Apple Inc. (AAPL) and Palm Inc. (PALM).

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:

RIMM Bolsters Web Browser

Research In Motion (RIMM) yesterday announced that it acquired Torch Mobile, a web-based software and application developer. Torch Mobile uses the open-source web browser layout engine WebKit to develop web applications for mobile phones. The company’s flagship Iris Browser product is a web browser for mobile phones with a customizable interface and touch-screen control. Iris browser can be used on many devices and platforms. The browser contains software components for web services compatible with Google (GOOG) gadgets, Yahoo (YHOO) widgets, and several other web platforms.

RIMM has been able to successfully differentiate its BlackBerry products from other offerings in the communications market. BlackBerry smart-phones are admired globally for their best e-mail functionality. However, its web browsing capability is not as powerful as iPhone of Apple Inc. (AAPL), Pre of Palm Inc. (PALM) and Google Android. All of these browsers are based on the WebKit ecosystem. In order to remain competitive, RIMM has decided to strengthen its browser that will be able to support Flash and Silverlight Technologies.

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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.

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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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:
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312-265-9380
Visit: www.zacks.com

RIMM has been able to successfully differentiate its BlackBerry products from other offerings in the communications market. BlackBerry smart-phones are admired globally for their best e-mail functionality. However, its web browsing capability is not as powerful as iPhone of Apple Inc. (AAPL), Pre of Palm Inc. (PALM) and Google Android. All of these browsers are based on the WebKit ecosystem. In order to remain competitive, RIMM has decided to strengthen its browser that will be able to support Flash and Silverlight Technologies.

The smart-phone mobile market is growing continuously. As a result, this market is getting increasingly crowded with new players and is expected to witness intense competition going forward. In addition to RIMM, Apple, and Palm, Nokia Corp. (NOK), Sony-Ericsson, a joint-venture between Sony Corp. (SNE) and L.M. Ericsson (ERIC) and Samsung have launched a series of innovative products. Motorola (MOT), Google, HTC, and LG Electronics are other new entrants in this market.

The next-generation technology of converged mobile computing enables a smart-phone to function like a fully operational computing device with the help of a strong web browser. Consumers are increasingly using their mobile handset to browse the Internet. This creates a growing market for third party software. Acquisition of Torch Mobile will now give RIMM a solid foothold in the WebKit development community.

It now appears that I have to do nothing, I just open a Yahoo finance/mail/or any other Yahoo page and there it is. But would I still continue using Google (GOOG)? I think not, especially if Google is not my home page and the content is more or less the same. This basically means that the focus has now shifted from use to content.

Microsoft has also introduced a freely downloadable version of MS Office, facilitating the use of the company’s word processing, spread sheet and PowerPoint products. Although Google already offers similar products, it was more of a defensive measure to protect the company’s market share.

The company recently signed an agreement with Nokia (NOK) to offer Word, Excel and PowerPoint features on select mobile phones from 2010. The revenue potential could be substantial, considering Nokia’s market share. While the deal should generate incremental earnings, many observers feel that it would mark the end of the Windows-based mobile operating system.

But Microsoft came up with yet another strategy to prove its adaptability to changing market dynamics. The company’s newly announced OneApp feature will use clouds to offer programs on GPRS phones in emerging markets. While smartphone penetration in these markets has been limited, feature phones have huge potential.

Microsoft has already entered into an agreement with South Africa’s Blue Label Telecoms, offering a dozen OneApp-powered applications. The initial package includes popular programs like Facebook, Twitter, Windows messenger and games. It would soon add other useful programs to enable bill payments and even health diagnosis.

The existing mobile operating systems from Research In Motion (RIMM), Apple (AAPL), Google and Nokia have made headway in the U.S. and other developed markets. Microsoft’s intention to target emerging markets makes sense to us.

As Google’s Android-based phones are just making their appearance felt, the new Microsoft solution could divert some buyers. The deal with Nokia, which is firmly entrenched in these regions, would play a key role in bringing Microsoft applications a superior foothold. We believe that offering the smartphone experience to existing cell phones is a smart strategy, as users are allowed to continue using handsets of their choice.

This is not all. Management also expects to launch a windows mobile apps store for cell phone users by the end of this year. Apple’s app store is very popular, although the most frequently downloaded applications are the ones that cost 99 cents. Microsoft’s ploy is to allow developers to fix their own prices, encouraging them to continue writing programs for Win Mo. We are encouraged by the company’s recent initiatives as we believe these are likely to improve its competitive position in both the search and mobile markets.

• Apple (NASDAQ:AAPL) told US regulators that Google's (NASDAQ:GOOG) voice app was not approved for use on Apple's (NASDAQ:AAPL) iPhone because it interferes with "user experience"

• According to Nokia (NYSE:NOK) the firm expects to regain market share against Apple's (NASDAQ:AAPL) rival iPhone and Research in Motion's (NASDAQ:RIMM) Blackberry, mentioning a new device with a Linux operating system and a netbook product likely

• Southwest Airlines (NYSE:LUV) promised Wi-Fi in all of its planes by next year

US stock futures rose moderately Friday, pointing to a higher open on Wall Street as investors turn their focus towards Federal Reserve Chairman Ben Bernanke who speaks at the Jackson Hole conference.

The Dow Jones industrial average climbed 71 points, or 0.8% and the S&P 500 index added 11 points, or 1.1%. The Nasdaq composite (COMP) rose 20 points, or 1%.  On the New York Stock Exchange, advancing stocks beat those that fell seven to three on volume of 1.05 billion shares.

In another sign that investors are being careful, treasury prices gained with the yield on the benchmark 10-year note falling to 3.43% from 3.46%.  The dollar was mixed against other major currencies, while gold prices declined.

Yesterday all ten S&P500 industry sectors advanced, led by financials (+2.4%), industrials (+1.1%), and tech shares (+1.0%).  Among the financial issues, AIG (NYSE:AIG) jumped 21.25% after the firm noted it will likely be able to repay government bailout funds.  Citigroup (NYSE:C) soared 8.5% after analyst Richard Bove said Citi shares would triple in three years on increasing expectations sale of sour assets will enable its profitability. Also helping sentiments was news on next week's budget expectations, pointing to lowered budget deficit expectations after the elimination of a $250 billion provision for bailing out more banks.

Among tech issues, Google (NASDAQ:GOOG) advanced 3.7% after Goldman Sachs (NYSE:GS) noted higher revenue growth for the company.  Goldman Sachs (NYSE:GS) also added the firm to its Conviction Buy List.

Today's corporate results include JM Smucker (NYSE:SJM) and Ann Taylor (NYSE:ANN).

We therefore favor IBM for its wide range of products and large international exposure. IBM generates over a billion dollars in revenue from the Indian market. Revenue at IBM was driven by double-digit growth in markets such as India and China, which were up 10.0% in 2008. IBM expects these growing markets to drive revenue and increase growth beyond 2009.

In comparison to the slowing U.S. markets and weak IT spending, the Indian market is still relatively healthy as are other emerging markets. Specifically, the 'BRIC' region ( Brazil, Russia, India and China ) is developing rapidly and should outpace spending growth of developed countries.

According to research firm Gartner, global IT spending is expected to decline 6% to $3.2 trillion, while Indian IT spending is forecasted to grow 5.5% in 2009.

The demand for software products and solutions is showing signs of a strong comeback in the Indian market. IBM's software business is positive on its new projects, which will help various firms lower costs and improve productivity.

Due to an economic recession, large IT service providers such as Amazon (AMZN), Google (GOOG) and Sun Microsystems (JAVA) are turning their attention to the Indian domestic market to produce goods and services at a much lower cost, resulting in intense competition for IBM, who has long dominated the local market.

The Indian market is the cost cutting center for large international corporations. IBM faces a significant number of competitors, ranging from traditional players such as Hewlett Packard (HPQ) and Microsoft (MSFT) to an increasing number of relatively small, rapidly growing and highly specialized organizations.

While competition is intense in the Indian market, IBM remains positive through its focus on asset-based services. IBM has invested in developing templates, asset-based solutions and reusable components exclusively for Indian clients. The company has partnered with SAP AG (SAP) for developing templates.

With the strength of its global on-demand model (responding to customer demand with flexibility and speed), IBM is experiencing strong revenue growth in all geographies, with robust growth in emerging markets worldwide. We maintain our Outperform rating IBM.

Chicago, IL – August 10, 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: Apple (AAPL), Google (GOOG), Amazon (AMZN), eBay (EBAY) and EOG Resources Inc. (EOG).

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 Friday’s Analyst Blog:

Apple's New Foray

Rumor has it that Apple (AAPL) might extend its digital payment processing business by allowing current iTunes Store account holders to purchase digital goods, including movies, TV shows and iPhone apps from third-party wholesalers, resellers, and value-added resellers.

We believe that Apple’s idea is to expand the iTunes platform to other third party vendors selling through other gateways in order to earn a sideway income from these purchases. This new line of business may not be good for Apple as payment processing fees are relatively low particularly for cheaper goods. As a strategy, Apple drives higher-margin business and has succeeded in this respect so far. However, even if this new line of business helps in increasing volumes, we feel that cost per transaction is likely to be high and this might hurt the company’s profitability.

Further, this move would put Apple in direct competition with services offered by recognized players in the payment processing industry such as Google’s (GOOG) Checkout, Amazon’s (AMZN) One-Click-Buying, eBay’s (EBAY) PayPal and Facebook's ‘Pay with Facebook’ platform payment processing solutions.

EOG: Mixed Bag in Second Quarter

EOG Resources Inc. (EOG) reported second quarter earnings of 73 cents per share, compared with the Zacks Consensus Estimate of 43 cents per share and a year-ago profit of $2.52 per share.

The severe year-over-year downfall in earnings was due to a significant decrease in commodity-price realizations, partially offset by sound domestic volumes. Including one-time items, EOG posted a loss of 7 cents per share versus 71 cents per share in the year-earlier quarter.

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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.

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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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Chicago, IL – August 6, 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: Microsoft (MSFT), Yahoo (YHOO), Google (GOOG), Capital One (COF) and American Express (AXP).

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Here are highlights from Wednesday’s Analyst Blog:

Microsoft: The Bing Thing

Recent numbers put out by analytics firm StatCounter indicate that Microsoft’s (MSFT) new search engine, Bing, gained market share in July. The company’s share of U.S. search engine users increased 14.3%, mostly at the cost of Yahoo (YHOO) and smaller players. Google (GOOG) continues to dominate, with a three-quarter’s share of the market.

Last month, Microsoft announced a ten-year agreement with Yahoo that allows it to power, control and process search-related information. Yahoo gets to collect advertisements and keep 88% of the revenue. While management of both companies expressed enthusiasm on the deal, investor responses varied.

Microsoft shareholders were happy since the company was not making any upfront payment, while Yahoo shareholders were disappointed for the same reason. Meanwhile, shareholders of market leader Google appeared concerned at the prospect of increased competition.

Consumer Bankruptcies Soar

Since the start of the year, 802,000 individuals have filed for bankruptcy. The July rate would equate to 885,000 people going bankrupt, so clearly we are still in an uptrend, and historically the number of bankruptcies peaks well after a recession is over.

The report did not specify the causes of the bankruptcies, but clearly the rapidly rising unemployment rate and uninsured medical expenses are likely to be significant factors. The ABI is predicting there will be 1.4 million filings this year. I suspect it will be higher than that.

One of the major problems in the economy is that the consumer has too much debt. If there is not enough income to service and repay the debt, then debt will come down through bankruptcy. Rising levels of delinquencies on all forms of consumer credit, such as mortgages and credit cards indicate that there will be more filings in the future. This is not good news for the credit card heavy banks like Capital One (COF) and American Express (AXP).

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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 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.

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

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

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

• Time Warner (NYSE:TWX) reported second quarter adjusted earnings 45 cents a share, ahead of consensus estimates of 37 cents a share, on revenues of $6.81 billion, versus estimates of $6.97 billion. The firm maintained its 2009 earnings guidance of flat adjusted results from continuing operations versus $1.98 a year ago

• Moody's (NYSE:MCO) second quarter earnings exceeded estimates by 3 cents at 43 cents as revenues fell 7.6% to $451 million

• Medco Health Solutions (NYSE:MHS) reported second quarter earnings of 69 cents, 4 cents ahead of estimates

• Qwest Communications (NYSE:Q) reported earnings of 13 cents, 3 pennies above estimates, on in-line revenues of $3.1 billion, that was off 9% from a year ago

• Textron (NYSE:TXT) reported second earnings of 8 cents ex-items, 11 cents above Street estimates of a loss as revenues fell 29.1% to $2.61 billion. The firm said it now sees full-year earnings of 33 cents to 63 cents a share, compared with its prior view of 45 cents to 75 cents a share and ahead of consensus estimates of 22 cents

• General Dynamics (NYSE:GD) reported earnings of $1.60, topping estimates of $1.57 and upped its guidance for the full year by a nickel to $6.05-$6.15

• Sprint Nextel (NYSE:S) reported a second-quarter loss of 13 cents a share, an 11-cent miss, on in-line revenues, down 10%, to $8.1 billion

• ArcelorMittal (NYSE:MT) reported a 57 cent per share, or $792 million, second quarter loss versus $4.19 a year ago and estimates of a $336 million profit, as revenues fell 60% to $15.18 billion from $37.84 billion

• Barry Ritholtz and Robert Reich believe investors should not be pleased with recent positive corporate earnings surprises.
• Hal Varian reports that Google Trends predicts further reductions ahead in new claims for unemployment insurance.
• Felix Salmon [1], [2] describes how Larry Summers lost a billion dollars for Harvard.
• ExxonMobil is investing big bucks in some radical new tools for controlling carbon emissions.
• Lucian Bebchuk worries that the proposed Goldman Sachs compensations represent a return to a dangerously flawed incentive structure.
• Dave Altig has a very interesting graph showing just how pessimistic consensus estimates are about this economic recovery.
• And here's one of the reasons I always try to find something that doesn't come from AP as a source any time I want to link to something in the news.

We expect the company to continue with its share repurchase program, which will also help boost its bottom line in future quarters. Marchex generated $4.2 million cash from operating activities and ended the March quarter with $25.8 million in cash and zero long-term debt. It also expects to generate positive cash flow in every quarter of 2009.
 
A strong balance sheet, sustainable dividends and focus on reducing operating expenses facilitate the company’s efforts to weather economic volatility. Marchex is poised to benefit from the shift in demand to performance-based advertising as the company differentiates itself from other search providers focusing on local advertisers. The company continually improves its operating leverage through increased investment in new products.
 
On a negative note, large companies such as Yahoo! (YHOO) and Google (GOOG) limit Marchex’s competitive advantage. Additionally, global advertising spending for 2009 is expected to be much lower than expected, which is expected to hurt MCHX’s advertising business, going forward.
 
Discounting all the above factors, we maintain our Hold rating on the shares.