Filed under: Law, Competitive strategy, Exxon Mobil (XOM), Venezuela, Oil

Exxon Mobil (NYSE: XOM) has gotten courts to freeze $12 billion in assets in Venezuela, which might have been sold by the government there.

According to Reuters, “Exxon — which last week posted the largest ever year’s profit by a U.S. company — said on Thursday it has received court orders in Britain, the Netherlands and the Netherlands Antilles each freezing up to $12 billion in assets of Venezuela state oil firm PDVSA.”

While oil companies rarely get public sympathy, the move is more than fair to Exxon. The government of unstable Venezuelan president Hugo Chavez had taken the assets from Exxon as part of a nationalization process. The move could complicate operations of Venezuela’s local oil company, which co-owns some of the properties.

As more oil continues to come from unstable regions like Nigeria and Venezuela, the court decisions may give U.S. companies some leverage in keeping overseas assets. With the price of oil so high, local governments are going to find it more and more attractive to take a piece of Big Oil’s pie.

Douglas A. McIntyre is an editor at 247wallst.com.

Read | Permalink | Email this | Comments

Share This

Filed under: Newspapers, Market matters, Federal Reserve, Cramer on BloggingStocks, Recession

TheStreet.com’s Jim Cramer says to ignore the inflation worrywarts; the Fed needs to keep easing to keep things in check.

“Mounting Inflation Concerns Weigh on Fed’s Next Move.”

Here’s where we need Rupert Murdoch to exert control over the Journal. Here’s where we need some real intervention from someone with business sense.

That’s right, because we have seen a “mounting inflation concerns” headline about the Fed pretty much every week since the easing began. It’s become something like “DA Probes Rackets,” when there’s nothing else to write about.

Do you realize that we have had gigantic easings right after Fed frets of inflation or when some Fed head says nothing’s wrong and the fundamentals are sound? Do you realize that even under Murdoch, there is no accountability for this stuff for anyone — neither Fed nor the WSJ?

Continue reading Cramer on BloggingStocks: Fed will cut because it has to

Permalink | Email this | Comments

Share This

Filed under: Before the bell, Earnings reports, Analyst upgrades and downgrades, Forecasts, Rumors, Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Amazon.com (AMZN), Merrill Lynch (MER), Urban Outfitters (URBN)

There are those who counterfeit money and those who make near-perfect knockoffs of 21 different Microsoft programs. Well, Microsoft Corp. (NADSAQ: MSFT) pushed an investigation through 22 countries and local law enforcement officials seized software, equipment and records, and made arrests. Microsoft estimates the retail value of the software the operation generated at $900 million.

The buzz over the $44.6 billion unsolicited bid Microsoft made for Yahoo! Inc. (NASDAQ: YHOO) is far from over with new items as well as speculations coming daily. The Financial Times reports that Softbank yesterday said it had no intention of selling its 41% stake in Yahoo Japan. Meanwhile, Trip Chowdhry of Global Equities Research speculated Thursday that Microsoft made the stunning proposal as a way to block a possible alliance between Yahoo and Amazon.com, Inc. (NASDAQ: AMZN).

The Wall Street Journal reports that federal prosecutors, looking into the mortgage businesses, have asked the Securities and Exchange Commission for information on Merrill Lynch & Co. (NYSE: MER).

Continue reading Before the bell: MSFT, YHOO, MER, MGM, RNWK …

Permalink | Email this | Comments

Share This

Filed under: Before the bell

Cognizant Technology (NASDAQ: CTSH) is up 14% on good earnings.

Aruba Networks (NASDAQ: ARUN) is trading down 23% on a weak quarterly report.

MBIA (NYSE: MBI) is off 12% on news of a secondary offer to raise money.

comScore (NASDAQ: SCOR) is selling off 13% on a weak quarter.

Stocks may trade differently in the pre-market than they do in the regular session.

Douglas A. McIntyre is an editor at 247wallst.com.

Permalink | Email this | Comments

Share This

Filed under: Newspapers, Magazines, Google (GOOG), Merrill Lynch (MER)

MAJOR PAPERS:

• Increasing credit card delinquencies have caused banks to tighten their lending standards, which the Wall Street Journal said could result in a sharp pullback in consumer spending that would further weaken the slowing U.S. economy.
• The Wall Street Journal also reported that U.S. criminal prosecutors have informed the Securities and Exchange Commission that they are seeking information gathered through its civil investigation of Merrill Lynch & Co Inc (NYSE: MER). The regulators will examine whether the securities firm booked inflated mortgage bond prices held despite knowing the valuations had dropped.

OTHER PAPERS:

• The major Hollywood studios and the Writers Guild of America are close to concluding a deal that could end the writers’ strike as early as Monday, the LA Times reported.

WEB SITES:

• According to Wired, online contact management service Plaxo has accepted an offer for nearly $200M. Sources believe the purchasing company is “most likely” Google Inc (NASDAQ: GOOG).

Permalink | Email this | Comments

Share This

Filed under: Before the bell, International markets, Earnings reports, Analyst upgrades and downgrades, Coca-Cola (KO), PepsiCo (PEP), Market matters, Alcatel-LucentADS (ALU), Economic data, Politics, Federal Reserve

Stock futures were lower this morning, pointing to a weaker open on Wall Street this morning to end the week. Recession concerns following retail data from Thursday as well as a low consumer confidence level only served to aggravate those concerns further.

On Thursday, stocks snapped a three-day losing streak when as some bargain hunters moved in to pick up some stocks. The Dow industrials finished nearly 47 points higher, or 0.38%, the S&P 500 added 10 points, or 0.79%, and the Nasdaq Composite rose 14 points or 0.63%.

On the economic calendar today is only a December reading on wholesale inventories due at 10 a.m. EST. Atlanta Federal Reserve President Lockhart also is due to speak.
Meanwhile, according to the RBC Cash Index, consumer confidence in the economy dropped further to a mark of 48.5 in early February — the worse reading since 2002 — from 56.3 last month. People fear shrinking job opportunities and the possibility the country is falling into recession. It seems that the Federal Reserve’s easing policy and rate cut didn’t serve to ease concerns, nor did the proposed economic stimulus package.

Speaking of the stimulus plan, Congress finally passed late Thursday a $170 billion economic stimulus bill. According to the package, most taxpayers will get rebate checks as soon as May in the amount of $600, while couples will receive $1,200 checks.

Continue reading Before the bell: Futures point to weaker open

Permalink | Email this | Comments

Share This

Filed under: Before the bell, Analyst upgrades and downgrades, Coca-Cola (KO), Walgreen Co (WAG), Level 3 Communications (LVLT)

Citigroup upgraded Moody’s (NYSE: MCO) to “buy” saying “the company’s earnings outlook is favorable,” according to MarketWatch.

Bear Stearns upgraded Coca-Cola (NYSE: KO) to “outperform” from “peer perform,” according to Briefing.com. The news service also reports that Merriman downgraded Level 3 (NASDAQ: LVLT) to “neutral” from “buy.”

Walgreen (NYSE: WAG) was raised to “buy” from “neutral” at UBS, according to Breifing.com.

Read | Permalink | Email this | Comments

Share This

Filed under: Consumer experience, Wal-Mart (WMT), Recession

Wal-Mart (NYSE: WMT) has announced that it will pay more for “green” products. The company is making a commitment to sourcing good quality products that will be better for the environment.

Reuters reports “bad quality products create waste, and so having tighter standards on the social side, on the environmental side and on the quality side will reduce waste,” Matt Koestler, Wal-Mart’s senior vice president of sustainability, said. The company has also been making a drive to use more renewable energy.

Wal-Mart already is feeling the stress of a slowing economy. Its same-store sales were weak last month, especially in the US. That means it is not likely that it will absorb these higher costs for “green” products. Customers are likely to get that privilege.

The news highlights the growing tensions about using “green” products and services, which very often have a higher price. Hybrid cars often cost as much as $5,000 more that their gas-driven counter-parts.

With money tight, especially for low- and middle-class shoppers at Wal-Mart, skipping the “green” would probably be their preference.

Douglas A. McIntyre is an editor at 247wallst.com.

Read | Permalink | Email this | Comments

Share This

Filed under: Deals, Launches, Law, Consumer experience, Competitive strategy, Apple Inc (AAPL)

There is no justice for the big record labels. Apple (NASDAQ:AAPL) dominates the music download business and pays the music publishers a modest fee. Since Apple controls most of the digital music business, what can the publishers do?

Universal Music has proposed creating a project called Total Music which would pull together the big music publishers including Sony BMG and Warner Music (NYSE:WMG). The Justice Department has decided to look into that. Perhaps it thinks of the new project as a monopoly.

According to The Wall Street Journal, “Universal and Sony BMG Music Entertainment, the No. 1 and No. 2 music companies world-wide by market share, have gotten letters of inquiry from the Justice Department.”

It is an example of where the law is perverse and justice is not served. Apple has a de facto lock on the digital music industry and can set prices almost at will. No one sees the Justice Department going after the company.

Douglas A. McIntyre is an editor at 247wallst.com.

Read | Permalink | Email this | Comments

Share This

Filed under: Earnings reports, Technical Analysis, YRC Worldwide (YRCW), Stocks to Buy

Old Dominion Freight Line (NASDAQ: ODFL) is a less-than-truckload multi-regional motor carrier, providing direct service to 47 states within the South, Northeast, Midwest and West regions of the U.S.A. and to parts of Canada. Through marketing and carrier relationships, it provides service to and from the remaining states, as well as international services around the globe. The company operates a fleet of some 4,600 tractors and 17,900 trailers from nearly 200 service centers. YRC Worldwide (NASDAQ: YRCW) is a major competitor.

Old Dominion surprised the Street last week, with Q4 EPS of 42 cents and revenues of $358.7 million. Analysts had been expecting 42 cents and $345.3 million. Management also guided FY08 EPS to $2.00-$2.05 ($1.93 consensus).

Continue reading Old Dominion Freight Line (ODFL): Shares defining bullish ‘flag’ pattern

Permalink | Email this | Comments

Share This