• Palm (NASDAQ:PALM) reported a narrower-than-expected quarterly loss, but its outlook disappointed.  The company also announced plans for a 16 million common share offering.  The firm reported a loss ex-items of 10 cents a share, under Zacks estimates of a 25 cent per share loss, on revenues of $360.7 million versus estimates of $289.1 million

• Valero Energy (NYSE:VLO) topped the list of yesterday's S&P500 gainers, up 6.6%, as Credit Suisse's (NYSE:CS) analyst asserted US refiners likely to see renewed interest based on the increase expected in energy demand

• Citigroup (NYSE:C) analysts upgraded Procter & Gamble (NYSE:PG) shares to "buy" from "hold," lifting the price target to $66 from $54 

• Piper Jaffray raised its rating on Starbucks (NASDAQ:SBUX) to "overweight" nad upped the price target to $24 from $13. The analyst expects earnings to grow at least 17% over the next two years

• JP Morgan (NYSE:JPM) raised its rating on KB

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Since the stock market bottomed out in March, the Nasdaq 100 index has led the way forward, with a 55% rally, with the Dow and S&P 500 not far behind.

As the standout index (based on a percentage retracement off the March lows), the Nasdaq 100 is the most important one to focus on here. The weekly chart below reveals that it’s clawed back around 50% of its losses since late 2007.

Correction Coming

The late 2007 sell-off and subsequent rally looks like a classic 5-wave Elliott Wave Theory move, with the current rally perhaps being the fourth wave of a 5-wave downside move.

If that’s the case, the Nasdaq 100 shouldn’t close much above the trendline before the fifth wave to the downside begins. At this point, with all

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A dip in consumer confidence for the second straight month and disappointing earnings reports weighed on sentiments as stock markets closed mostly lower Tuesday.  However, some late-session bargain hunting helped the indices pare some losses but investors remained concerned that a recovery could be sluggish.  To add to the caution, San Francisco Fed President Yellen painted a picture of a "painfully slow" economic recovery. 

The Dow Jones industrial average lost 12 points, or 0.1% and the broader S&P 500 index declined 3 points, or 0.3% to 979.  The technology-focused Nasdaq rose 7 points, or 0.4%.  On the NYSE, 1.24 billion shares exchanged hands and 16 stocks ended lower for every 14 that advanced. 

Among the ten industry groups in the S&P 500, six ended in the red.  Leading the decliners were oil & gas equipment & services (-3.88%), followed by gold miners (-3.15%), industrial REITs (-3.15%), advertising (-2.86%), and

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Two Big Reasons to Dump your Oil Refinery

Tony Daltorio, The Investment U Research Team

Quite simply, this is not a good time to be in the business of refining oil in the United States.

The obvious reason for this is the continuing recession which has led to lower demand for gasoline and other refined products. With the summer driving season past the halfway point, having the word ’staycation’ become commonplace is not good news for the refiners.

But that’s not all. And it goes well beyond simple economic downturn.

There are other factors at work. And unfortunately, many have escaped the notice of many investors and much of Wall Street.

While everyone was focused on the sharp rise recently of the price of WTI crude oil, other things have been conspiring against domestic refiners of all sorts. Here’s what you need

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• Mattel (NYSE:MAT) reported second quarter earnings of 6 cents a share, ahead of estimates of breakeven results, despite a 19% revenue fall to $898.2 million

• UBS (NYSE:UBS) initiated coverage of Valero Energy (NYSE:VLO) with a "buy" rating, citing the anticipated cyclical recovery in the industry as well as the firm's structural changes

• A news agency reported Brazilian mining firm Vale is eyeing Mosiac (NYSE:MOS) as a possible acquisition target

• Goldman Sachs (NYSE:GS) cut its rating on Motorola (NYSE:MOT) shares to "neutral" from "buy," citing the recent appreciation stock's price

• Ryder (NYSE:R) increased its quarterly dividend 8.7% to 25 cents

• According to Bank of America (NYSE:BAC) CEO Lewis, "Difficult challenges lie ahead from continued weakness in the global economy, rising unemployment and deteriorating credit quality that will affect our performance for the rest of the year and into 2010." The firm's second quarter, however, bettered estimates of 28 cents a

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U.S. stocks slumped for the first time in five sessions after a report showed U.S. employers cut more jobs than expected.  A government report showing factory orders grew less than expected also dragged shares lower.  Meanwhile, Fed Chairman Ben Bernanke cautioned that the government cannot borrow indefinitely to finance the shortfall and urged lawmakers to work towards reducing the fiscal deficit. The DJIA declined more than 65 points to 8675, and the S&P, while holding above a key technical level of 928, closed the day 1.4% down.  Technology focused NASDAQ was off 0.6%.  Trading continued to remain light with only 1.3 billion shares exchanging hands.  Market breadth was negative as declining stocks outpaced advancing issues by a seven-to-three margin. The US dollar gained versus other major currencies, closing up 1.1% against a basket of currencies.

Stock futures point to a higher opening on the Wall Street, amid ECB and

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At the outset of the summer driving season, we are downgrading Valero (VLO) shares to Sell to reflect our weak outlook for margins and a growing list of medium- to long-term macro challenges. A combination of weak demand, excess production capacity, and narrowing crude quality spreads are expected to weigh on near-term margins.

The medium- to long-term outlook also remains cloudy, with unfavorable regulatory changes weighing on demand growth and capacity creep limiting margin gains.

Being the largest independent refiner, Valero remains particularly exposed to this unfavorable macro backdrop. Our current target price is $15 per share.Zacks Investment Research

The nation’s refining industry is taking a nosedive today thanks to a report from Valero. The markets are reacting like all refiners are going down in flames. It is not the case by any means. Take advantage of the mistake.

It is not every day we see a $10 billion company like Valero Energy (NYSE:VLO) shed 20% of its value. When it happens, it is certainly action worth investigating.

The sudden decline comes thanks to the company’s executives estimating a fifty-cent per share Q2 loss, versus $0.59 per share earlier estimates and $0.74 per share consensus projections. The jaw-dropping news sent shares of competing refiners into the dumpster as well.

Frontier Oil (NYSE:FTO) is down over 15%. CVR Energy (NYSE:CVI) is down over 17%. And Suncor (NYSE:SU) is down by 8%.

The more a company’s profits rely on refining revenues, the deeper the decline.

The day’s

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Valero Energy (VLO) guided towards a $0.50 per share loss in the second quarter of 2009 due to a very weak operating environment and longer than expected downtime at two of its refineries.We had downgraded Valero shares to Sell on May 26 to reflect the challenging macro backdrop for refiners. The guided $0.50 per share loss for the second quarter would compare to earnings of $1.37 per share in the second quarter of 2008. We also have a Sell rating on Tesoro (TSO).Valero's results were adversely affected by extended downtime at its Delaware City and McKee refineries, very weak refining margins, and narrow crude quality spreads. Crude quality spreads refer to the discount at which lower quality grades of crude oil trade relative to higher quality crudes, such as the U.S. benchmark, West Texas Intermediate (WTI). Capable refiners, such as Valero, would use ...

* Valero Energy (NYSE:VLO) announced plans to offer 40 million common shares with the option for an additional 6 million shares

* China's Tengzhong and General Motors (OTC:GMGMQ) affirmed talks regarding sale of the Hummer brand

* Aetna (NYSE:AET) lowered its 2009 earnings forecast, citing higher medical costs from its commercial plans and lower-than-estimated revenues from its Medicare business. The firm dropped its 2009 operating earnings guidance to $3.55 to $3.70 a share, from its prior view of $3.85 to $3.95 a share.

* Williams-Sonoma (NYSE:WSM) reported a fiscal first quarter loss of 14 cents per share, beating estimates by 7 cents a share, as revenues plunged 21.7% year-over-year to $612 million. The firm issued inline revenue guidance of $2.81 billion to $2.93 billion, versus the Street estimates of $2.87 billion

* Joy Global (NASDAQ:JOYG) reported fiscal second quarter earnings of $1.17 per share, beating estimates by 28 cents, as revenues jumped 9.6% year-over-year

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