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

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

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

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

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

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

The Dow, which had slid as much as 77 points in the morning trading, closed down 11.11 points, or 0.1%, to 10,426.31.  The broader S&P 500 index slipped 0.52, or 0.1%, to 1,109.80, while the Nasdaq, hurt by the weakness in tech shares, fell 10.64, or 0.5%, to 2,193.14.  Bond prices fell, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.37% from 3.33% late Tuesday.  Crude prices advanced 44 cents to settle at $79.58 per barrel.  Volume remained light, with only 1.063 billion shares trading on the NYSE, and declining issues ahead of advancers by an 8 to 7 margin.

Technology shares were under pressure after Autodesk Inc. (NASDAQ:ADSK) and Salesforce.com (NYSE:CRM) gave grim forecasts and BMO Capital Markets noted Research in Motion (NASDAQ:RIMM), the maker of Blackberry phones, faces increased pressure as consumers opt for cheaper phones.  However, shares in Sprint Nextel(NYSE:S) continued their forward run, jumping 6.7% after the previous session's 13% surge, on reports the company had paid off $1 billion in debt.

A weak housing report fuelled recovery concerns but shares in the sector managed to move higher after Citigroup (NYSE:C) raised Pulte Homes (NYSE:PHM) to “buy," saying the shares are "undeservedly out of favor." Citigroup raised its price target on the firm to to $12 from $11.  DR Horton (NYSE:DHI) rose 1.9% and Ryland (NYSE:RYL) advanced 0.8%, while Toll Brothers (NYSE:TOL) fell 0.9%. 

Financials also helped stem the retreat as hedge fund operator John Paulson noted in a quarterly post to shareholders that Bank of America shares will reach $29.81 by the end of 2011.

Seven of the ten S&P500 industry sectors moved lower Wednesday.  Tech shares slipped 0.6%, followed by 0.5% declines in basic materials, industrials, and utilities, 0.4% drops in oil and gas, 0.2% retreat in consumer services, and a 0.01% fall in consumer goods.  Stemming the retreat in the sector were financials, up 0.8%, and telecommunications, up 0.2%.  In a quarterly post to shareholders, hedge fund operator John Paulson said he expects Bank of America (NYSE:BAC) shares to double over the next few years.

Waning risk appetites sent gold prices up 20 cents to a fresh all-time high of $1,139.40.  Treasuries rose, pushing corresponding yields lower.  The yield on the benchmark 10-year note slipped to 3.33% from 3.34% late Monday.  Crude prices closed above $79 per barrel.  Copper prices rose to 14-months highs on expectations that China demand will remain robust.

A perpetual decline in the value of the dollar and record low interest rates in the US have driven stocks higher as investors, seeking higher return on their investments, have sought refuge in equities.  A subdued inflation has also proved welcome for the economy. 

This morning’s stock futures show a mixed opening on the Street.  Dow Jones industrial average futures are down 2 points, or about 0.1%, at 10,396.  Standard & Poor's 500 index futures are up 0.10, or nearly 0.1%, at 1,107.50, while Nasdaq 100 index futures are down 5.50, or 0.3%, at 1.803.25.

On Tuesday, the 30-share Dow Jones industrial average rose 30.46 points, or 0.3%, to 10,437.42, its highest close since October 2, 2008.  The Dow had jumped 136 points Monday after the retail sales report.  The broad Standard & Poor's 500-stock index inched up 1.02 points, or 0.09%, at 1,110.32 and the tech-heavy Nasdaq composite index gained 5.93 points, or 0.27%, to 2,203.78.  Meanwhile, the price of US Treasuries continued to gain, with the 10-year up 7/32 as its yield eased to 3.323%.  On the New York Stock Exchange, volume slowed to 972,000 shares with declining shares ahead of advancing issues by an 8 to 7 margin. The Vix volatility measure fell 2.1% to 22.41.

Six of the ten S&P500 industry sectors managed gains yesterday, led by gains in basic material shares (+1.1%), technology (+0.5%), and telecommunications (+0.5%).  Consumer service shares (-0.4%), oil and gas (-0.2%), utilities (-0.2%) led on the downside, with industrials shedding 0.04%.

The US dollar gained against a basket of currencies yesterday in a delayed reaction to Fed Chairman Bernanke's remarks that the Fed is "attentive to implications of changes in the value of the dollar," as well as indications the Fed may be inching toward more restrictive policy measures as financial markets show signs of improvement.

A cautious holiday season guidance from major retailers such as Target (NYSE:TGT) and Home Depot (NYSE:HD) weighed on retail shares. Target (NYSE:TGT), down 3.0% on Tuesday, said average transaction size has dwindled in November, adding it sees lower fourth quarter same-store-sales.  Home Depot (NYSE:HD), off 2.4%, provided below-consensus fourth quarter guidance, saying its markets remain under pressure.  Ford (NYSE:F) shares, meanwhile, rose to their two-year high on news its Fusion hybrid was named Motor Trend's 2010 Car of the Year.

Bove of Rochdale Securities said earnings at Well Fargo (NYSE:WFC) were helped by mortgage-servicing fees rather than improving business trends, and trimmed his rating on the bank to “sell" from “hold."  However, Well Fargo and Morgan Stanley (NYSE:MS), which reported its first quarterly profit in a year, were behind the market’s strength earlier in the session.  Bove also cited accelerating loan losses at the firm for the downgrade.  After Bove’s cut, FBR slashed its rating on the firm to "underperform," questioning Well Fargo's earnings quality.

The Dow Jones industrial average fell below the psychologically important 10,000 level, declining 92.12 points, or 0.9%, to close at 9949.36.  Earlier in the session, the index had risen to as high as 10,119.47.  The broader S&P 500 index declined 9.66 points, or 0.9%, to 1081.40 and the tech-laden Nasdaq was off 12.74 points, or 0.6%, to 2150.73.  The Treasury’s 10-year note fell 12/32, to 101 31/32. The yield rose to 3.39%, from 3.34% late Tuesday.

Meanwhile, China said its economy grew 8.9% during the third quarter, up from 7.9% in the second quarter and 6.1% in the first.

Eight of the ten S&P500 sectors finished lower, led by declines in consumer services (-1.8%), financials (-1.8%), health care (-1.4%) and industrials (-0.9%). Utilities remained flat, and telecommunications edged up 0.01%.  Selling was broad-based.  The weakness in financial sector saw shares of JPMorgan Chase & Co. (NYSE:JPM), Bank of America Corp. (NYSE:BAC) and Goldman Sachs Group Inc. (NYSE:GS) each declining at least 2.9%.  Merck & Co. (NYSE:MRK) led the Dow average lower, declining 3.1% to $32.68. 

The greenback fell to fresh 12-month lows against a basket of currencies, falling through $1.50 against the euro for the first time in 14 months.  The greenback's fall sent crude prices higher, with prices touching an intraday high of $82 yesterday, its highest since October 9, 2008.  Government inventory figures showed a large drawdown in US gasoline stockpiles to 2.3 million barrels last week - more than the 800,000 anticipated.  Price cuts from Wal-Mart (NYSE:WMT) also dampened holiday sales hopes.  Wal-Mart declined 2.1% to $50.63.

Today's calendar covers another heavy dose of corporate reports including before-the-open releases from: 3M (NYSE:MMM), Black & Decker (NYSE:BDK), Bristol-Myers Squibb (NYSE:BMY), Dow Chemical (NYSE:DOW), McDonald's (NYSE:MCD), Schering-Plough (NYSE:SGP), and UPS (NYSE:UPS). Also reporting are American Express (NYSE:AXP), Amazon.com (NASDAQ:AMZN), and AT&T (NYSE:T).

Chicago, IL – October 9, 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: Ciena Corporation (CIEN), Nortel Networks (NRTLQ), Ericsson (ERIC), Nokia (NOK) and Siemens (SI).

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Here are highlights from Thursday’s Analyst Blog:

Ciena Takes Over Nortel Unit

Yesterday, telecommunications and network equipment company Ciena Corporation (CIEN) announced the acquisition of substantially all of the optical networking and carrier Ethernet assets of its rival Nortel Networks’ (NRTLQ) Metro Ethernet Networks (MEN) division, for a total of $521 million ($390 million in cash and 10 million in shares worth $131 million based on the Oct. 6 market price).

Ciena will take over Nortel’s long-haul optical transport portfolio, metro optical Ethernet switching and transport solutions, Ethernet transport, aggregation and switching technology, multiservice SONET/SDH product families and network management software products.

Moreover, Ciena expects to incur integration-related costs of approximately $180 million, the majority of which will be paid in 2010 and expects the transaction to be significantly accretive in fiscal 2011.

Nortel had filed for bankruptcy protection back in January in Canada, and has since then planned to sell off its assets. Nortel had sold its wireless carrier business to Sweden's Ericsson (ERIC) for $1.13 billion in July. This was followed by the sale of its Enterprise unit to Avaya for $915 million.

Ciena is expected to employ at least 2,000, or 85% of Nortel employees. The acquisition would significantly enhance Ciena’s existing Canadian development resources, making Ottawa the company’s largest product and development center. Deutsche Bank Securities Inc. and Foros Securities LLC served as financial advisors in the deal.

Ciena’s Carrier Ethernet platform enables differentiation and provides a competitive advantage to the company. We believe the deal could provide strong growth potential to Ciena’s rapidly expanding metro Ethernet business and optical networking products.

For the third quarter, Ciena generated approximately 14% of total revenue from metro Ethernet products. The company expects the Ethernet division to be a major contributor to growth, going forward. Besides, the merger could double Ciena’s revenue. Ciena had total revenue of f $902 million in 2008, while Nortel’s Ethernet business generated $1.36 billion in revenue in 2008 and $556 million in the first six months of 2009.

Moreover, the acquisition would provide tough competition to other players in the networking industry such as Ericsson, Nokia (NOK) and Siemens (SI). Longer-term, we view the deal to be positive for Ciena.

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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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Investors can find such funds by checking out the entire list of the Zacks #1 Rank Utilities Equity Funds.

3 Electrifying Picks

Van Kampen Utility A (VKUAX) seeks to provide its shareholders with capital appreciation and current income. It may focus on securities that it believes offer capital appreciation and current income at a reasonable risk.

The fund may invest in income securities which include preferred stock and debt securities, including convertible securities, of various maturities which are considered "investment-grade" quality at the time of investment. At the end of March, its portfolio turnover was 120%.

The fund’s top holdings include Exelon Corp. (EXC - Snapshot Report), FPL Group (FPL - Snapshot Report) and Southern Co. (SO - Snapshot Report).

Flex-funds Total Return Utilities (FLRUX) was incepted in June 1995. The investment seeks total returns.

The fund generally invests at least 80% of net assets in securities of domestic or foreign utility companies that provide electricity, natural gas, water, telecommunications or sanitary services to the public. It may also invest in debt securities of public utility firms.

Lowell Glaser Miller has been lead manager at the fund since its inception. The fund distributes dividends monthly and capital gains annually.

Putnam Global Utilities A (PUGIX) seeks capital growth and current income. The fund invests mainly in midsized and large firms but can invest in companies of any size.

The fund uses fundamental research and disciplined quantitative analysis with macroeconomic views to choose a combination of stocks and bonds of companies in the utilities industries that have favorable investment potential.

Shareholders have to make a minimum initial investment of $500 to enter this Zacks#1 Rank (“Strong Buy") fund. It has an expense ratio of 0.59%.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

While financial details of the deal were not disclosed, the company expects to close the transaction later this year, subject to statutory approvals and regulatory reviews.

IBM’s analytics services offerings will get a boost from this acquisition as RedPill has a strong foothold in research and analytical services in key growth markets such as financial services, telecommunications, technology and hospitality.

Earlier, IBM had agreed to acquire data-analysis and statistical software maker SPSS Inc. (SPSS) for about $1.2 billion in cash to expand its Information on Demand (IOD) software portfolio and business analytics capabilities, including Business Analytics and Optimization Consulting organization and network of Analytics Solution Centers.

We believe IBM has been successfully executing a strategy through acquisition to accelerate initiatives such as Smarter Planet and Business Analytics and Optimization and are generating incremental revenues, strengthening its technology leadership.

The company will benefit from the growing business analytics services. According to Interactive Data Corp. (IDC), the market for business analytics software will increase by 7.8% to $26.1 billion in 2009.

IBM’s growing analytics acquisition spree will also hurt its major mega-vendor enterprise software rivals like Oracle (ORCL) and SAP AG (SAP), who provide strong analytics capabilities.

Investors can find such funds by checking out the entire list of the Zacks #1 Rank Utilities Equity Funds.

3 Great Picks

Van Kampen Utility A (VKUAX) seeks to provide its shareholders with capital appreciation and current income. It may focus on securities that it believes offer capital appreciation and current income at a reasonable risk.

The fund may invest in income securities which include preferred stock and debt securities, including convertible securities, of various maturities which are considered "investment-grade" quality at the time of investment. At the end of March, its portfolio turnover was 120%.

The fund’s top holdings include Exelon Corp. (EXC), FPL Group (FPL) and Southern Co. (SO).

Flex-funds Total Return Utilities (FLRUX) was incepted in June 1995. The investment seeks total returns.

The fund generally invests at least 80% of net assets in securities of domestic or foreign utility companies that provide electricity, natural gas, water, telecommunications or sanitary services to the public. It may also invest in debt securities of public utility firms.

Lowell Glaser Miller has been lead manager at the fund since its inception. The fund distributes dividends monthly and capital gains annually.

Putnam Global Utilities A (PUGIX) seeks capital growth and current income. The fund invests mainly in midsized and large firms but can invest in companies of any size.

The fund uses fundamental research and disciplined quantitative analysis with macroeconomic views to choose a combination of stocks and bonds of companies in the utilities industries that have favorable investment potential.

Shareholders have to make a minimum initial investment of $500 to enter this Zacks#1 Rank (“Strong Buy") fund. It has an expense ratio of 0.59%.

Discover Many More Funds

Learn more about the new Zacks Mutual Fund Rank and discover some of the best market-beating mutual funds by browsing our new mutual funds section. This part of Zacks.com offers a variety of tools, including mutual fund research, a new mutual fund screener, helpful answers to frequently asked questions and quick access to prospectuses and other information.

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward.

Company Description

Corning makes specialty glass and ceramics. The company creates components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences.

Corning's products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy and metrology.

Solid Quarterly Results

Corning reported second-quarter results in late July. Earnings per share of 39 cents eclipsed the Zacks Consensus Estimate by 30%.

Sales of $1.4 billion topped the previous quarter's total by 41% and came in 18% below the year-prior result.

"The resurgent demand for LCD glass is propelling us to restore much of our previously idled production capacity as quickly as possible to meet our customers' needs," said James B. Flaws, vice chairman and chief financial officer. "Approximately 40% of our second-quarter shipments came from existing inventory. We need to- and have- restarted tanks to replace this inventory drawdown to meet third-quarter demand. We believe our third-quarter glass shipments will be flat to up slightly, compared to the very strong second-quarter level."

A few weeks after reporting, the company announced that there was a production disruption due to an earthquake at its LCD glass manufacturing facility in Shizuoka, Japan. Management said that this will result in lower glass volume for the third quarter, but should not have a material impact on fourth-quarter shipments. GLW promised to provide updates on any significant changes to this outlook.

Bullish Forecasts

Corning continues to see bullish Zacks Consensus Estimates. Analysts polled by Zacks are forecasting year-over-year earnings growth of 25.5% for 2010.

Favorable Industry Comparisons

Corning boasts a return on equity (ROE) of 13%, well ahead of the industry average of 1%. Corning's net profit margin of 33% compares favorably to a negative industry average. The Growth and Income pick also pays an industry-leading dividend yield of 1.3%. Zacks Investment Research

Chicago, IL – August 27, 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: United Heathcare Group (UNH), Aetna (AET), Wet Seal Inc. (WTSLA), VeriSign Inc. (VRSN) and Syniverse Holdings Inc. (SVR).

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:

CBO Overstates Healthcare Costs

Some of the more outrageous types of misconduct by the likes of United Heathcare Group (UNH) and Aetna (AET) might be curbed, such as the cancelling of policies as soon as someone gets sick and puts in a substantial claim. Morally, that is just plain fraud ("You didn't tell us that you went to see a dermatologist for your acne when you were 16, so we will not cover your cancer treatment at age 55"), although the insurance companies have very good lawyers who write the contracts to make sure they can get away with it.

It might even end the practice of discriminating against sick people (aka pre-existing conditions). It will come at the expense of using the force of law to get the young and the healthy to buy coverage. Since the young, on average, seldom make expensive claims, those customers would be a gold mine for the insurance companies.

None of those things are likely to stop the relentless rise in Health Care costs as a share of GDP. The nation may go bankrupt, but the health insurance companies will not. They will be even more prosperous than they are today. Their investment in people like Sen. Max Baucus (D-MT) and Kent Conrad (D-ND) has to go down as one of the most profitable in history.

Wet Seal Reports Modest Results

Wet Seal Inc. (WTSLA) reported modest results for the second quarter with earnings of 3 cents per share, which was in-line with the Zacks Consensus Estimate. However, earnings were down 9 cents year-over-year. Wet Seal is a specialty retailer, operating apparel and accessory items stores for female customers in the U.S.

Net sales for the quarter declined 8.5% year-over-year to $136.4 million. However, Internet sales grew 12.7% year-over-year. Overall comparable same-store sales declined 10.6%. Comparable same-store sales in the Wet Seal segment declined 11.9%, and at the Arden B segment it declined 4.1% year-over-year.

VeriSign Divests Messaging Biz

VeriSign Inc. (VRSN) yesterday agreed to sell its messaging business to Syniverse Holdings Inc. (SVR) for $175 million. The transaction is subject to certain closing conditions and regulatory approvals.

Headquartered in Mountain View, California, VeriSign provides essential Internet infrastructure services to companies, service providers and website owners.

Tampa, Florida-based Syniverse provides wireless voice and data services for telecommunications companies worldwide. The company said that the deal will expand its mobile messaging capabilities and increase its global footprint through nearly 300 additional employees in the United States and Asia Pacific.

The messaging business has had an annual revenue run-rate of approximately $140 million over the last 12 months. With this divestiture, VeriSign will be left with only one of its thirteen businesses to divest. From November 2007 to date, the company has sold twelve non-core units for $750 million. The business which remains to be sold is Global Security Consulting.

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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

The provider of optical networking equipment, software and services diversified beyond emerging carriers, and now counts the world's largest telecom service providers as its customers, including Verizon (VZ), AT&T (T), BT Group (BT) and Qwest Communications (Q).

Ciena's cost cutting efforts will trim operating expenses, helping it achieve breakeven results in the coming quarters.

Moreover, the company has a healthy balance sheet with improving cash metrics. The company exited the current quarter with $922.6 million in cash and short-term investments, compared to $917.0 million in the previous quarter. Long-term debt (convertible notes payable) at the end of the quarter remained at $798.0 million.

However, the company's sales cycle is lengthening, as Tier 1 carriers proceed with caution, given the economic uncertainty. Moreover, the telecommunications market is full of competitors, such as Alcatel-Lucent (ALU), Cisco (CSCO), Ericsson (ERIC), Nokia Corp. (NOK), Nortel Networks (NT) and Tellabs (TLAB), which are premier companies in the telecommunication space posing a threat to Ciena.

Shares of Ciena, surged 2.5% to $13.53 in after-hours trading yesterday and closed at $13.20, a rise of 3.04%. In our view, the sharp increase in price is due to a recovery in the telecommunications sector.

Among key industry indexes, the Dow Jones U.S. Fixed Line Telecommunications Total Stock Market Index increased 0.8% to 904 points, while the Dow Jones U.S. Telecommunications Equipment Total Stock Market Index increased 1.1% to 5,169 points yesterday.

This $4.5 billion program is part of the DOE's Electricity Delivery and Energy Reliability Recovery Plan to support modernization of the electrical grid. The Lockheed – Black & Veatch partnership is well placed to cater to other DOE funding applications, such as loan guarantees for employing innovative energy efficiency, renewable energy and advanced transmission and distribution.

Together, the companies complement each other in assisting utilities plan projects and in requesting federal grants from the DOE. Lockheed Martin will provide its expertise in information management, business process reengineering, cyber security expertise, modeling and simulation and demand-response tools. Black & Veatch, a premier US contractor, will chip in with design and construction of telecommunications as well as transmission and distribution infrastructure.

Lockheed Martin is strategically spreading its wings outside the traditional defense-focused arena. The company recently saw a number of its high-value platform programs coming under the axe of the Obama administration, with the F-22 program being most noteworthy. Considering these, we maintain our Neutral recommendation on LMT.

Company Description

Corning makes specialty glass and ceramics. The creates components that enable high-technology systems for consumer electronics, mobile emissions control, telecommunications and life sciences.

Corning's products include glass substrates for LCD televisions, computer monitors and laptops; ceramic substrates and filters for mobile emission control systems; optical fiber, cable, hardware & equipment for telecommunications networks; optical biosensors for drug discovery; and other advanced optics and specialty glass solutions for a number of industries including semiconductor, aerospace, defense, astronomy and metrology.

Solid Quarterly Results

Corning, which was the subject of a recent analyst upgrade, reported second-quarter results in late July. Earnings per share of 39 cents eclipsed the Zacks Consensus Estimate by 30%.

Sales of $1.4 billion topped the previous quarter's total by 41% and came in 18% below the year-prior result.

"The resurgent demand for LCD glass is propelling us to restore much of our previously idled production capacity as quickly as possible to meet our customers' needs," said James B. Flaws, vice chairman and chief financial officer. "Approximately 40% of our second-quarter shipments came from existing inventory. We need to- and have- restarted tanks to replace this inventory drawdown to meet third-quarter demand. We believe our third-quarter glass shipments will be flat to up slightly, compared to the very strong second-quarter level."

A few weeks after reporting, the company announced that there was a production disruption due to an earthquake at its LCD glass manufacturing facility in Shizuoka, Japan. Management said that this will result in lower glass volume for the third quarter, but should not have a material impact on fourth-quarter shipments. GLW promised to provide updates on any significant changes to this outlook.

Bullish Forecasts

Analysts polled by Zacks are upbeat on GLW's earnings. The current year Zacks Consensus Estimate of $1.18 per share is a penny above last week's forecast and 12 cents higher than last month's projection.

For 2010, the Zacks Consensus Estimate of $1.48 tops last week's $1.46 and the month-prior $1.36.

Favorable Industry Comparisons

Corning boasts a return on equity (ROE) of 13%, well ahead of the industry average of 1%. Corning's net profit margin of 33% compares favorably to a negative industry average. The Growth and Income pick also pays an industry-leading dividend yield of 1.3%. Zacks Investment Research

Volume at the company's Dalian facility in China increased 25.0% year over year, reflecting higher 3G-related demand, better government spending on infrastructure projects in China and continued expansion into the utility market. We believe the 3G build out in China will provide tremendous opportunities for Fushi over the next few years.

Apart from the telecommunications market, Fushi is witnessing increased shipments to the utility market. The company believes that the Chinese electrical utility market for bimetallic is underdeveloped and provides significant growth potential for the Dalian facility. In addition, the company expects to benefit from ongoing infrastructure projects resulting from the $586 billion government stimulus package in China.

To take advantage of the rapid growth in CCA, Fushi added 6,000 metric tons of CCA capacity at its Dalian facility in April. The company also plans to install another 8,200 metric tons of annualized CCS cladding capacity online at its Dalian plant. It expects the first 4,100 metric tons of annualized CCS cladding capacity to be fully operational by the end of the third quarter and the remaining 4,100 metric to be ready by the end of first quarter 2010.

For the third quarter, management expects adjusted EPS in the range of 26 cents to 30 cents. The company sees profitability improving sequentially throughout the second half of the year due to continued growth in demand for CCA-based telecom products, utility applications, increased profitability at the Fayetteville facility from cost-saving initiatives and increased sales from China’s 3G infrastructure investments and the government’s stimulus package.

Recurring revenue was $27.4 million, up 5% from $26 million in the first quarter and a 7.5% increase over the $25.5 million reported a year ago. On a constant currency basis, recurring revenue grew about 4% sequentially and 13% from the year-ago period.

Professional service revenue was $9 million for the quarter, a fall of nearly $1 million sequentially. The quarterly sales mix across geographies was 72% from the Americas, 19% from the Europe, Middle East and Africa region, and 9% from Asia Pacific.

For the second quarter, the average first-year contract value was approximately $100,000, up sequentially and from the fourth quarter of 2008. RightNow recorded ten deals of over $1 million, 60 deals worth between $100,000 and $1 million each and 421 deals for less than $100,000 each. The average contract length in the second quarter increased to 27 months. This increase reflects that several of the large transactions in the quarter were multiyear deals. Key verticals during the quarter included media and entertainment, high-tech, public sector, telecommunications and retail.

Total gross margins were 70% in the quarter compared to 67% in the first quarter and 64% a year ago. Quarterly operating margin was 7% of revenue, which is consistent with that achieved in the first quarter.

Cash generated from operations was $2.1 million for the quarter. Capital expenditures were $1.8 million for the second quarter. RightNow ended the quarter with total cash and investments of $94.6 million. The company does not have long-term debt and its shareowner’s equity is $30.6 million.

The company expects third-quarter sales in the range of $37 million to $38 million and breakeven earnings on a per-share basis. It sees revenue for the full year between $147 million and $151 million. The current Zacks Consensus Estimate for the third quarter is 2 cents a share. For 2009, the Zacks Consensus Estimate is pegged at 8 cents a share.

RightNow Technologies is a leading provider of on-demand customer relationship management (CRM) software solutions, designed to optimize customer service operations for businesses of all sizes.

The Dow Jones industrial average declined 39 points, or 0.4%, the Standard & Poor's 500 lost 3 points, or 0.3%, and the tech-heavy Nasdaq composite retreated 18 points, or 0.9% after disappointing data on private payrolls and the services sector dented some optimism.  However, the Commerce Department reported an unexpected 0.4% rise in orders for manufactured goods in June.  On the NYSE, volume was a moderate 1.53 billion as decliners outpaced advancing shares by 8 to 7

Treasuries fell, with the 10-year declining 19/32 and the corresponding yield rising to 3.762%. Commodity prices rose, with crude prices up 55 cents to $71.97 per barrel, rebounding from initial declines posted after weekly inventory stats showed a larger-than-estimated build of 1.67 million barrels.

Seven of the ten S&P industry groups declined.  Financials again were the leading gainers on the S&P 500, rising 2.9%, as investors assessed the favorable impact of gains in mortgage applications and expectations that loan losses may have reached their peak. On the DJIA, Bank of America (NYSE:BAC) rose 6.5% and was the leading gainer in the Dow average. American Express (NYSE:AXP) added 5.8% and JP Morgan (NYSE:JPM) increased 3.9%. American Express (NYSE:AXP) reported a 5.8% increase in credit card defaults, representing a smaller pace for the second straight month, due in part to a lower-than-anticipated number of bankruptcies.  This morning, Keefe, Bruyette & Woods analysts noted that Bank of America (NYSE:BAC) may report slight losses in the third and fourth quarter before turning profits in 2010.

Procter & Gamble (NYSE:PG) slid 2.8% after the company reported an 18% decline in quarterly profit.  World’s second-largest video game publisher Electronic Arts (NYSE:EA) fell 6.8%.

On the S&P 500, troubled-insurer AIG (NYSE:AIG) shares rallied 62.7% as Radian's (NYSE:RDN) $231.9 million quarterly profit helped sentiments.  Radian's (NYSE:RDN) shares surged 83%.  AIG is expected to report quarterly results on Friday.  Fannie Mae (NYSE:FNM) rose 29.8% and Freddie Mac (NYSE:FRE) jumped 31.1% on news of the impending resignation of the director of the Federal Housing Finance Agency. Citigroup (NYSE:C) trading action marked a one-day, single-stock NYSE record Wednesday as 347 million shares traded. The firm launched its $2.5 billion 5-year note sale.

Leading the decliners on the S&P 500 were telecommunications (off 1.6%), health care (-1.3%), oil and gas  (-1.1%), utilities, consumer goods and technology (-0.9%), industrials (-0.8%), consumer services (-0.5%).  Helped by a rise in commodity prices, only basic material shares showed some strength, adding 0.6%.

As expected, the Bank of England held benchmark interest rates unchanged at 0.5%; however, it also expanded its asset purchase plan $84 billion. Meanwhile a Chinese central banker indicated interest rates could go up, advising of plans to "fine tune" credit policy. As global rate talk swings between hawkish and accommodative, risk assumptions may sway as well, with the more hawkish tone suggesting brighter recovery prospects near at hand.

An unfavorable weather is expected to have hurt retailers' comparable sales results last month, with Costco's (NASDAQ:COST) sales down 7%, Big Lots’ (NYSE:BIG) declining 2.4%, Stage Stores’ (NYSE:SSI) declining 11.9% and Limited Brands’ (NYSE:LTD) decreasing 7%.

BT Group’s aim is to become the leading provider of networked IT services to mid and large-sized businesses and the public sector in general in Ireland. Vodafone will become the number-two player in the fixed broadband market and enjoy a 15% market share of the fixed broadband market. The value of the gross assets that are the subject of this transaction was 4.8 million euros at the end of March 2009.

In all its business segments, BT Group has been transforming itself from being a traditional telecom operator to a innovative provider of telecom solutions, and it is now taking advantage of future growth prospects, as it moves away from traditional businesses and into what it calls “New-Wave" businesses, such as broadband, Voice over Internet Protocol (VoIP), Wireless Internet Access, Networked IT services and IPTV. We believe BT Group’s New-Wave businesses are the drivers behind any growth the company will experience in the coming years, and BT Group understands that it has to constantly evolve with technology in order to stay ahead in the telecommunications business.

BT Group is an incumbent phone company providing fixed-line and data services to the United Kingdom. It owns or has stakes in operations in North America, the Asia/Pacific region, and Western Europe. BT Retail is the largest communications service provider by market share to consumers and businesses in the United Kingdom. It supplies a wide range of communication products, including voice, data, Internet, and multimedia services. The BT Wholesale segment provides network services and solutions within the United Kingdom, including its Asymmetric Digital Subscriber Line (ADSL) and Integrated Services Digital Network (ISDN) to BT Retail and BT Global Services, as well as to other communication companies, fixed and mobile network operators, and service providers.

Openreach was established in January of 2006 in response to OFCOM (UK Office of Communications) strategic review of the communications industry in the UK, and operates the physical assets of the local access and backhaul networks and provides the services which use those networks to communications providers, both internally and externally, and was spun out of BT Wholesale to become a completely independent entity from BT, although it remains wholly-owned by the BT Group. BT Global Services is BT Group’s managed services and solutions arm, serving multi-site organizations. 

We continue to maintain our Hold rating on BT Group.