Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Deals, Google (GOOG), Apple Inc (AAPL), General Motors (GM), Market matters, Aon Corp (AOC), Federal Natl Mtge (FNM), Gap Inc (GPS), Verizon Communications (VZ), Oil, Lehman Br Holdings (LEH), Federal Reserve

U.S. stock futures were higher this morning, pointing to a potential positive start on Wall Street. Investors this morning await Federal Reserve Chairman Ben Bernanke speech on financial stability scheduled for 10:00 a.m. from the Fed’s annual retreat at Jackson Hole. In the face of recent financial turmoil, namely talk of a government bailout for Fannie and Freddie, as well as troubles at Lehman, Bernanke’s speech will likely be today’s highlight. Meanwhile, oil dropped a little from Thursday’s advance.

Indeed, the Wall Street Journal reports that Freddie Mac (NYSE: FRE) “executives are sounding out private-equity firms and other investors about the possibility of buying new common or preferred shares in the mortgage company.” But of course, investors are worries their investments in Freddie or Fannie Mae (NYSE: FNM) may be lost in case of a government bailout. Even Warren Buffett opined on the matter on CNBC this morning, saying he expects the government to take action to support troubled mortgage financiers.

Lehman Brothers (NYSE: LEH) is rebounding this morning after an analyst at Ladenburg Thalmann upgraded LEH to Buy Thursday, saying it is vulnerable to a hostile takeover.

Verizon Communications (NYSE: VZ) is close to an agreement with Google (NASDAQ: GOOG), according to the Wall Street Journal. Conceding they need help with search, the deal could make Google the default search provider on Verizon devices.

Apparel retailer The Gap, Inc. (NASDAQ: GPS) reported a 51% jump in quarterly profit after the market close Thursday. Cost-cutting efforts and tight inventory controls helped offset a drop in sales. Gap topped estimates on both earnings and sales. Gap shares climbed 3.7% in after-hours trading.

Apple Inc. (NASDAQ: AAPL) is having some controversial news these days. It seems that Orange, Poland’s largest mobile operator, paid people to line up in front of stores as it rolled out the iPhone there Friday. While at least it wasn’t Apple that paid these “actors,” it begs the question of how iPhone sales are faring outside the U.S.
Meanwhile, BusinessWeek clues us into Apple’s ambitious plans for the iPhone, which include making at least 40 million iPhones in the next year. Could Apple plans succeed in light of the global economic downturn?

Big movers this morning include Foot Locker (NYSE: FL) whose shares are climbing over14% in premarket trading after the athletic apparel retailer posted better-than-expected results for the second quarter. Pacific Sunwear (NASDAQ: PSUN) shares, on the other hand, are down over 26% in premarket trading after “the teen retailer issued a weak outlook that resulted in a series of investment downgrades.”

In deal news, Aon (NYSE: AOC) said on Friday it’s going to buy Britain’s Benfield Group for 738 million pounds ($1.4 billion) — a 29% premium to Thursday’s close — as the reinsurance brokerage tries to expand its operations. Meanwhile, General Motors Corp. (NYSE: GM) actually had “initial expressions of interest from potential buyers of its Hummer brand,” Chief Executive Rick Wagoner said Thursday.

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Filed under: Good news, Google (GOOG), Apple Inc (AAPL), Marketing and advertising

Google, Inc. (NASDAQ: GOOG) and Apple, Inc. (NASDAQ: AAPL) were named as two of the top companies in customer satisfaction recently by an ACSI index released out of the University of Michigan. This is the same study that pounded U.S. automakers in favor of foreign auto brands.

In the index that measured e-business companies, two of the most powerful brands in technology rose to the top. It’s no surprise Apple made the top of the list, with its capability to mesmerize iPod, iTunes and iPhone customers. The company is also selling more Macintosh computers than ever — and customers are buying them as fast as Apple can make them.

It’s also hard to think that any web company can catch Google. The world’s largest internet search company has such a large first-mover advantage that it’s next to inconceivable that any competitor will be able to offer a better product in such a way that Google will lose a decent chunk of market share. It, along with Apple, has an extremely high customer satisfaction rating. Even if there are better products, perception is reality — and the perception is that Google offers the information as fast as it can and connects the searcher with the information they need, and with quality.

At least two U.S. brands top their respective list, while U.S. automakers slide further down the pile of irrelevancy in a changed age of fuel efficiency and the perception of better foreign brand auto quality.

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Filed under: Google (GOOG), Marketing and advertising

Google, Inc. (NASDAQ: GOOG) has finally started trying to monetize its YouTube service through video ads, and now the world’s largest internet search service is toying with advertising at its mobile video website as well. So far, Google is only testing display advertising (small banners) on its mobile website and only on select pages for U.S. and Japanese visitors.

For now, this is only a “test” for YouTube. Google’s Christine Tsai indicated that there are “millions of people who visit YouTube every day” on their phones. Google CEO Eric Schmidt has repeatedly said that Google’s mobile presence is the key to the future, since there are a disproportionately larger number of internet-capable cellphones in use globally than PCs.

Schmidt has even called finding the right advertising model on YouTube the “holy grail.” He’s right — but the only problem is that Google still has not found a mass advertising model for YouTube (mobile or not) that works when deployed property-wide. While Google continues to seek other revenue sources outside text advertising — currently its only real cash cow — YouTube probably presents the next best revenue source for the online search leader. That is, if it can make the YouTube ad model as unobtrusive as the search advertising model.

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Filed under: Other issues, Google (GOOG), Citigroup Inc. (C), Politics

As he prepares to accept the Democratic presidential nomination, Barack Obama’s allies in organized labor are worried that he is becoming too friendly with Wall Street types such as former Treasury Secretary and current Citigroup, Inc. (NYSE: C) senior executive Robert Rubin.

According to Bloomberg News, a recent presentation by Richard Trumka of the AFL-CIO argued that unfettered global traded and inadequate government regulation resulted in lost manufacturing jobs. “It will do us little good if, when the next Democrat moves into the White House, Wall Street takes command of our country’s economic policy,” Bloomberg quotes Trumka’s presentation as saying. The story adds that there is no doubt that Trumka is taking a shot at Rubin.

Trumka is unapologetic. The AFL-CIO already is flexing its political muscle and began looking at candidates for cabinet posts including the Treasury and Energy Departments along with the Federal Reserve. Obama’s advisors deny that Rubin or anyone else has any particular sway over his economic policies. But there definitely is a tilt toward the center going on.

Obama, who backs union goals such as reopening NAFTA and universal health care, recently raised a few eyebrows when he seemed to accept the notion that he can’t pay for these programs only through the capital gains tax. Last week, two Obama advisers wrote in the Wall Street Journal that the Illinois senator would only consider raising capital gains taxes from 15% to 20% instead of as high as 28%. That’s no cause for celebration for investors, but the prospect of an Obama presidency is no reason to panic, either.

This weekend, the New York Times chronicled the battle between Obama and John McCain for the hearts and minds of businesses both large and small. Corporate types are not enthusiastic backers of McCain but are backing him since their favored candidate Mitt Romney got out of the race. Obama, though, does have his share of backers in the corporate world including Google Inc. (NASDAQ: GOOG) Chief Executive Eric Schmidt. Warren Buffett has also advised him.

Organized labor knows that Obama needs their support. They are going to hold the Illinois senator’s feet to the fire to make sure that he doesn’t forget them even as he tries to make new friends at the boardroom level. It will be a tricky balance to maintain through the general election.

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Filed under: Industry, Competitive strategy, Google (GOOG), Motorola (MOT)

The FCC is looking at using part of the TV signal spectrum to provide wireless high-speed internet. It is a brilliant idea that is being opposed by a large part of the television industry.

According to The Wall Street Journal, “The Federal Communications Commission will have the final say in the battle between the broadcasters — which fear interference on the airwaves they’ll still be using — and the companies including Google Inc (NASDAQ: GOOG). and Motorola Inc. (NYSE: MOT) that want to share the television airwaves.”

The fight is a classic example of old media not wanting to give up something that it has “owned” for years because it may help new competition.

Tough luck. Broadband adoption in the U.S. is behind several countries in Europe and Asia, and if the FCC can offer an inexpensive solution to that, it should. The new over-the-air system would have many of the benefits of Wi-Fi, but would be more broadly available.

TV broadcasters say that the new technology could interfere with their signals, but testing can demonstrate whether that is true or not. The FCC has the chance to move broadband adoption forward with one spectacular decision. It should not balk at the chance.

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

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Filed under: Analyst reports, Google (GOOG), CBS Corp ‘B’ (CBS)

There is a divide along age lines in terms of how people get their news. TV is still in the lead, but that may not last for long.

A Wall Street Journal story looks at the Pew Research Center’s biannual survey on news-consumption habits. Pew’s most important conclusion of the survey is that it “found that 46% of those polled have a “heavy reliance” on TV for news at all times of the day.”

But the median age of the TV loving crowd was 52-years-old. Another group, with a median age of 35, relies primarily on the internet as its news source.

Just as newspapers have faltered as major providers of information, it looks like TV may be seeing its best days. The next generation of people who are moving into their forties and fifties are unlike to migrate to the Tube just because they are aging. Their “internet heavy” habits are likely to stay with them for the balance of their lives.

Over the next decade, major TV network and TV station stocks are likely to be damaged by the trend.

Sell CBS (NYSE: CBS) and buy Google (NYSE: GOOG). Google News taps 4,500 sources and that is going to grow.

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

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Filed under: Before the bell, Earnings reports, Deals, Google (GOOG), Apple Inc (AAPL), Dell (DELL), Berkshire Hathaway (BRK.A), Market matters, Penney (J.C.) (JCP), Merrill Lynch (MER), Kohl’s Corp (KSS), Abercrombie and Fitch (ANF), Economic data, Nordstrom, Inc (JWN), Oil, Union Pacific Corporation (UNP), MBIA Inc (MBI)

U.S. stock futures were higher Friday morning, indicating stock markets could possibly extend Thursday’s rally as the dollar rose and oil prices fell further. The dollar continues to make gains on the back of growing evidence of global economic softness. Still, several economic readings are due out today, including the New York Empire State manufacturing index , capacity utilization and industrial production — all before the opening bell.

Retail will be in focus today after two Kohl’s Corp (NYSE: KSS) and Nordstrom (NYSE: JWN) reported late Thursday, and J.C. Penney (NYSE: JCP) and Abercrombie & Fitch (NYSE: ANF) are due to report before the opening bell.

Kohl’s Corp shares could start higher as premarket indication has them trading 2.3% higher, while Nordstrom’s are trading 4% lower in premarket action. Kohl’s quarterly profit fell 12% from a year ago, but the retailer lifted its fiscal year profit forecast. Meanwhile, upper scale Nordstrom, reported a 21% drop in second-quarter profits and cut full year outlook.

ANF said second-quarter profit fell on lower sales of jeans and T-shirts and forecast full-year earnings per share that trailed some analysts’ estimates. JCP also saw profit decline but beat estimates and issued lower guidance.

Autodesk (NASDAQ: ADSK) shares are trading 10% higher in premarket action after the design software maker reported stronger-than-forecast second-quarter earnings Thursday after the close.

Bond insurers MBIA (NYSE: MBI) and Ambac (NYSE: ABK) spiked 7.7% and 16.2% respectively premarket after Standard & Poor’s affirmed its AA credit rating on the two companies and said further downgrades were unlikely.

Berkshire Hathaway (NYSE: BRK.A), the investment firm run by billionaire Warren Buffett, revealed a stake in the energy wholesaler NRG Energy (NYSE: NRG) and acquired additional shares of train operator Union Pacific (NYSE: UNP). NRG is climbing 5.7% in premarket trading.

Merrill Lynch (NYSE: MER) will institute a hiring freeze for the remainder of 2008, and will avoid paying UK taxes for decades after it charged $29 billion of losses to its London-based subsidiary, the Financial Times wrote.

Republic Services (NYSE: RSG) overnight rejected the takeover bid from Waste Management (NYSE: WMI), saying its proposed merger with Allied Waste Industries (NYSE: AW) is more favorable. It also is declining to have discussions and negotiations with Waste Management.

BuisnessWeek has an interesting article on the man Dell Inc. (NASDAQ: DELL) has put in charge of its entry to the digital entertainment market. The former Apple Inc. (NASDAQ: AAPL) executive will try to overtake Apple’s dominant hold of the market.

The New York Times reports that T-Mobile will be the first carrier to offer a mobile phone powered by Google (NASDAQ: GOOG)’s Android software.

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Filed under: Rumors, Launches, Google (GOOG)

Google, Inc. (NASDAQ: GOOG) has been touting its Android mobile operating system platform for over a year. Still without a product to showcase its efforts, many are beginning to wonder if Google has classified Android as “vaporware.” Even though the company is itself not making a single piece of hardware, a mobile handset is the product the customer will use. So, Google, where is it?

Apple, Inc.’s (NASDAQ: AAPL) iPhone 3G, which admittedly has a few issues, but is still selling like hotcakes, is stealing any thunder Android would have created. T-Mobile USA, the fourth-largest mobile operator in the U.S., may have an Android phone on the market sometime in September, according to TMoNews. Still, is it too late for Android to make a huge splash in the mobile pool?

The reported manufacturer of such a phone will be Taiwanese smartphone heavyweight HTC. Reported pricing will be $399 without a contract, or near $150 with a two-year contract. Google may be taking the Apple route, as this Android phone will tightly feature most of Google’s consumer services, and you may even need a Google Gmail account to set up service for the Android phone.

Yes, this sounds like Apple’s locked-into-the-manufacturer procedure, doesn’t it? If T-Mobile uses the Apple iPhone model for requiring an expensive data plan and with spotty 3G service (who knew?), then the Android phone won’t make a splash, but a trickle. Many of us are looking to Google to provide an excellent mobile operating system that is open, flexible and robust. Perhaps we may be waiting a bit longer — and so will Google shareholders.

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Filed under: Before the bell, Earnings reports, Analyst reports, Analyst upgrades and downgrades, Google (GOOG), Apple Inc (AAPL), Wal-Mart (WMT), Intel (INTC), General Motors (GM), Market matters, Merrill Lynch (MER), Amgen Inc (AMGN), Economic data, Oil

Stock futures were higher Thursday morning, as bulls tried to answer to two bear days. Wal-Mart reported this morning, beating estimates and boosting guidance as well as Street sentiment. Still, coming ahead is inflation data at 8:30 a.m. Economists expect CPI to rise 0.4% in July, and could very well impact markets. Meanwhile, oil prices rose and the EU reported that euro-zone economy contracted 0.2% in the second quarter.

Wal-Mart Stores Inc. (NYSE: WMT), the world’s largest retailer, reported a second-quarter earnings growth of 17% to of $3.4 billion, or 87 cents a share, beating analyst estimates of profit of 84 cents a share. Revenue rose 10% to $101.6 billion, slightly below estimates. The company also boosted its full-year earnings forecast. The company benefited from the challenging economic conditions as shoppers looked for lower prices. Its cost cutting measures also helped. WMT shares are gaining nearly 1.5% in premarket trading.

As Apple Inc. (NASDAQ: AAPL) shares rose in recent years, many have tracked its progress as it surpassed one major company after another in market capitalization. Well, All Things Digital noticed that Apple can put another check mark, this time as it passed Google Inc. (NASDAQ: GOOG). Yes, Apple is now larger than Google.

Intel Corp. (NASDAQ: INTC) is announcing a new component with new technology that will let computers wake up from their power-saving sleep state when they receive a phone call over the Internet. No longer will computers have to remain full-powered to receive calls, enabling them to act as replacements for the telephone.

While Merrill Lynch & Co. (NYSE: MER)’s CEO John Thain vowed last week to maintain the firm’s 35-cent quarterly dividend, the options market doesn’t believe him and is pricing a significant cut of roughly 50% to the dividend. If it happens, it would the first since it went public in 1971.

Also battered by recent economic downturn and the slumping U.S. auto market, General Motors Corp. (NYSE: GM) is seeking to speed up the restructuring plan and said it may be able to reap more of the $10 billion in projected savings this year instead of in 2009. GM also had preliminary contact with Russian oligarch Oleg Deripaska on a possible sale of its Hummer brand, according to Reuters.

Analyst calls:

• Goldman Sachs added Amgen Inc. (NASDAQ: AMGN) to its Conviction Buy List.
• Merrill Lynch downgraded Credit Suisse (NYSE: CS) from Neutral to Sell, citing valuation and the potential for more write-downs.

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Filed under: After the bell, Major movement, Earnings reports, Deals, Google (GOOG), General Motors (GM), Market matters, Genentech Inc (DNA)

Today was another very volatile day with stocks posting triple-digit DJIA losses. Shares opened and traded lower, then recovered sharply before falling back down at the end of the day. Oil and commodities rose. Oil was up over $3.00 to over the $116 a barrel mark on soft inventory levels and reports Russia is seizing a Georgian pipeline. With gold rising almost $17.00 and the dollar falling, it almost felt like the commodity trades were coming back on. There was a drop in import prices, but that wasn’t enough to keep the bears from roaring today.

Here are Wednesday’s unofficial closing bell numbers:

DJIA 11,536.22 (-106.25)
S&P500 1,288.87 (-3.72)
NASDAQ 2,428.62 (-1.99)
10YR T-Bond 3.947% (+0.029%)
52-WEEK LOWS
ANALYSTS UPGRADES & DOWNGRADES

Google Inc. (NASDAQ: GOOG) saw shares down marginally today as the stock was down 0.8% at $498.53 in the final minutes before the close. Jim Cramer interviewed Google’s CEO & Chairman on CNBC today and he brought back that $750 Target.

General Motors Corp. (NYSE: GM) took a beating on another Moody’s debt downgrade. While everyone should have known this data, shares were down almost 8% at $10.22 in the final minutes ahead of today’s closing bell.

Genentech (NYSE: DNA) was up a little more than 0.5% at $98.43 in the final minutes after it rejected Roche’s $89.00 cash bid and offered Roche to choke up more cash.

NVIDIA Corporation (NASDAQ: NVDA) managed to escape the hangman after reporting disappointing earnings, recording a loss due to a $196 million charge to cover its technical issues in graphics processors. But a $1 billion share buyback plan compared to its market cap of $6 billion saved the day. This was a key trading alert stock today and shares were up over 10% at $12.24 in the final minutes.

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