BetterTrades After Market Commentary - May 13, 2008

As the major market indices closed their Tuesday sessions, the markets concluded the day mixed after a report on retail sales led investors to see little incentive to extend the previous session's big advance. Investors remain concerned that higher energy and food prices will curtail consumer spending, which makes up more than two-thirds of the U.S. economy. By the end of late-day trading, the Dow Jones industrial average dropped 44.13 points, or 0.34%, to 12,832.18, in-spite of the blue chip index soaring 130 points on Monday as oil prices pulled back and alleviated some concerns about accelerating inflation. The broader indexes were mixed on the day as the S&P 500 index slid 0.44 points, or 0.04%, to 1,403.04, and, the NASDAQ composite index gained 6.63 points, or 0.27%, to 2,495.12.

Median home prices declined in two-thirds of the cities surveyed during the first three months of this year while 46 states experienced declining sales. The National Association of Realtors stated that median prices for existing single-family homes dropped in 100 of 149 metropolitan areas in the January-March period, while 48 metropolitan areas saw prices increase and one reported no change. The price declines in 67% of the areas surveyed was the largest percentage of areas reporting declining prices in the history of the Realtors' survey, which goes back to 1979. Prices had fallen in 34% of the cities surveyed in the October-December survey. Nationally, the median home price dropped to $196,300 in the 1Q, down by 7.7% from the same period a year ago, when the median sales price was $212,600. Nationally, sales declined by 22.2% in the 1Q compared with the same period a year ago.

Consumers, battling soaring gasoline prices and a slumping economy, cut back further on their spending in April. The Commerce Department reported Tuesday that retail sales dipped 0.2% last month, right in line with economists' expectations. It was the second drop in the past three months and was led by a 2.8% decline in auto sales, the biggest setback in this category in 10 months. Excluding autos, retail sales increased by 0.5%, a better performance than had been expected as sales at general merchandise stores, a category that includes big chains such as Wal-Mart, posted a 0.5% increase, much better than the 0.1% rise in March. However, sales at department stores were down 0.1%, indicating that tough economic times may be pushing people to seek out bargains at giant discount stores. The 0.2% drop in retail sales in April followed a 0.2% jump in March and a 0.5% decline in February. Sales at clothing and specialty stores posted a 0.7% gain in April while sales at electronics and appliance stores were up 1.4%. Sales at furniture stores edged up a slight 0.1%. This sector has been under pressure, reflecting the prolonged two-year slump in home sales.

Wal-Mart Stores Inc. (WMT), the world's largest retailer, announced Tuesday that their profits increased 6.9% in its 1Q on higher sales as lower prices helped boost its results, topping analyst's expectations. Wal-Mart earned $3.02B, or $0.76 per share, in the three months, up from $2.83B, or $0.68 per share, a year earlier. Analysts had projected earnings of $0.75 per share. The company had overall revenues of $95.30B, up 10.3% from $86.41B in the prior year. Net sales excluding membership fees advanced to $94.1B from $85.4B a year ago, while analysts were projecting revenues of $93.47B for the quarter. Without fuel, same-store sales for the quarter were up 2.9% at Wal-Mart's domestic properties, rising 2.7% in the Wal-Mart Stores division and 3.6% at Sam's Clubs. Wal-Mart said that for the 2Q the company expects sales in stores open at least a year to be between flat and up 2%. The company expects to earn between $0.78 per share and $0.81 per share. Shares dropped $1.37, or 2.4%, to $56.65 in trading.

Apparel retailer, Liz Claiborne Inc. (LIZ) made it known Tuesday that the business posted a loss in the 1Q due to expenses from the company's streamlining plan which includes store closures and asset write-downs. For the quarter, the company reported a loss of $31M, or $0.33 per share, compared with profits of $16.2M, or $0.16 per share in the 2007 quarter. Excluding discontinued operations and expenses related to streamlining initiatives including payroll, lease terminations, asset write-downs and store closures, the company said it earned $0.28 per share. Meanwhile, analysts were expecting profits of $0.10 per share. Revenues for LIZ increased 5% to $1.12B from $1.07B in the 1Q of 2007, with analysts predicting sales of $955.2M for the quarter. The revenue increase came from stronger international sales, which grew 16%, while domestic sales were virtually flat. By the close of the markets today, shares of LIZ were higher on the day, up $0.38, or 2.1%, to finish at $18.75.

Hewlett-Packard Co. (HPQ) has agreed to buy Electronic Data Systems Corp. (EDS) for approximately $12.6B in cash to build a technology-services company that could challenge IBM. The companies announced Tuesday that their boards had unanimously approved the deal, in which EDS shareholders would get $25 per share. That is a premium of almost 25% over what EDS had been trading on Friday, as word of the talks emerged late-Monday before the close of the markets. The sale is expected to close in the second half of this year and more than double HP's revenues from services, which were $16.6B in 2007, while EDS had $22.13B in revenues last year. Their combined services business would have 210,000 employees and operations in more than 80 countries. In Tuesday's announcement, the companies said the deal would have an enterprise value of $13.9B without defining what that included. But based on 502.6 million EDS shares outstanding as of April 25th, the acquisition would be worth $12.57B. If the deal is completed, it would be HP's biggest acquisition since it bought Compaq Computer Corp. for $19B in 2002. That acquisition paved the way for HP to supplant Dell Inc. as the world's largest PC maker. HP earned $7.3B on $104B in revenues last year while EDS made $716M on $22.1B in revenue. At the close, shares of Hewlett-Packard were down $2.56, or 5.5%, to finish at $44.27.

Shares of Canadian Solar Inc. (CSIQ) surged in trading Tuesday after solar cell maker managed to post a profit in the 1Q on a big increase in its European business. The results easily surpassed analyst expectations along with a surprisingly large forecast for 2Q revenues. The company reported net income for the recent quarter of $19M, or $0.61 per share, compared with a loss in the year-earlier quarter of $3.9M, or $0.14 per share. Analysts, on average, expected earnings per share of $0.31. The per-share results reflect an 18% higher number of shares outstanding in the recent quarter versus last year. Revenues for CSIQ jumped to $171.2M from $17.5M, with analysts expecting revenues of $151.9M. Revenues from Europe, especially Spain and Germany, soared to $167.6M from $12.1M in the year-earlier period. Shares jumped $6.68, or 19.6%, to $40.78 in trading, in relation to the stock closing Monday’s trading at $34.10.

Watch maker Fossil Inc. (FOSL) stated Tuesday that their 1Q profits climbed 21%, helped by international growth and strong watch and jewelry sales, however, falling short of expectations. For the recent quarter, earnings advanced to $30.2M, or $0.43 per share, compared with $25M, or $0.36 per share, in the corresponding quarter last year. Quarterly revenues increased 17% to $356.2M, from $304.8M in the year-ago quarter. Analysts, on average, predicted net income of $0.40 per share on sales of $348.2M. Gross profit margins were helped by a weaker dollar, lower product costs, and higher-margin international sales. This was partially offset by higher freight costs and an increased mix of lower margin mass market and third-party distributor shipments. Despite a positive earnings report, shares of Fossil were down today lower by $3.03, or 8.1%, at $34.22.

Oil prices surged to a new record near $127 a barrel Tuesday on reports that Iran is planning to cut crude oil production. Light, sweet crude for June delivery advanced as high as a record $126.98 a barrel in midday trading on the New York Mercantile Exchange before retreating slightly to trade up $1.57 at $125.80. In other NYMEX trading Tuesday, June gasoline futures gained $0.0358 to settle at $3.20 a gallon, and June heating oil futures added $0.1391 to settle at $3.6989 a gallon after earlier rising to a record $3.7146. Analysts said heating oil futures were boosted by reports that supplies of distillates, which include heating oil and diesel, fell last month in Europe. June natural gas futures increased $0.121 to settle at $11.422 per 1,000 cubic feet.

Gas prices, meanwhile, advanced to a new record over $3.73 a gallon Tuesday, and their surge shows little sign of slowing with Memorial Day weekend, the traditional start of the summer driving season, just 10 days away. At the pump, the national average price of a gallon of regular gas added $0.014 overnight to a record $3.732, according to a survey of stations by AAA and the Oil Price Information Service. Prices have now risen to the level at which the Energy Department forecasts they'll peak in June, on a monthly average basis. That means prices may still go higher, but their average will peak at around $3.73. Retail diesel prices jumped $0.029 Tuesday to a national average of $4.39 a gallon, according to AAA and the Oil Price Information Service. The high price of diesel has helped drive up costs for goods and services throughout the economy.

Treasury prices declined Tuesday as signs of modestly better-than-expected consumer spending and rising inflation made safe government securities less attractive to investors. The prospect of high inflation particularly dampens the value of long-term bonds. The benchmark 10-year Treasury note slipped 24/32 to 99 28/32 and its yield grew to 3.89% from 3.80% late Monday, while the 2-year note dropped 7/32 to 99 13/32 and its yield advanced to 2.43% from 2.32%. The 30-year long bond declined 1 6/32 to 96 4/32 and yielded 4.61%, up from 4.54% late Monday.

The U.S. Dollar strengthened against most major currencies Tuesday despite gloomy U.S. economic data. The 15-nation Euro dropped to $1.5480 in late trading from $1.5540 on Monday, while the British pound declined to $1.9459 from $1.9566. The Dollar also climbed to 105.26 Japanese yen, up from 104.17 yen late Monday. In other New York trading, the Dollar advanced to 1.0529 Swiss francs from 1.0444 francs, but fell to 1.0033 Canadian dollars from 1.0050 late Monday.

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BetterTrades After Market Commentary - May 12, 2008

Wall Street rose sharply Monday as a rising dollar cooled some concerns about inflation and helped keep oil prices in check. The Dow Jones industrials at times gained more than 155 points. The dollar's advance against other major currencies appeared to help ease some concerns about inflation. The market's unease about rising inflation and its effect on consumer spending receded somewhat. Monday's gains showed investors are still willing to lay some bets, although some market watchers said Wall Street will still likely see stocks fluctuate as investors try to determine the economy's direction. Monday's advance follows a week in which the major indexes all fell as worries about the impact of inflation weighed on investors. By the conclusion of late-day trading, the Dow Jones gained 130.43 points, or 1.02%, to 12,876.31, as the broader stock indicators advanced as well. The S&P 500 index advanced 15.30 points, or 1.10%, to 1,403.58, and the NASDAQ composite index added 42.97 points, or 1.76%, to 2,488.49.

Cablevision Systems Corp. (CVC) is buying the Long Island-based newspaper Newsday from Tribune Co. for $650M, the companies announced Monday. The deal brings Newsday back to local ownership on Long Island. Tribune Co., under Sam Zell, had been seeking to sell Newsday decreasing an $8.2B debt load it took on last year when it went private. Tribune will retain a 3% stake in a joint venture to be formed containing Newsday as well as several related assets, including Newsday.com, some regional magazines and the free daily newspaper in New York City, amNewYork. Cablevision will hold the remaining 97%. Cablevision, which is controlled by the Dolan family, runs one of the most advanced cable TV operations in the industry and has about 3.1 million subscribers in the New York metro area. The company also owns Madison Square Garden, the NBA's New York Knicks, the NHL's New York Rangers, and a group of cable TV networks. Cablevision stated that owning Newsday will allow the company to better market the newspaper to the many households on Long Island that don't yet subscribe to it, while tapping Newsday's expertise in ad sales to help Cablevision's own cable TV advertising business. Shares of CVC traded relatively flat on the day, trading down $0.45, or 1.8%, at $24.52.

Wireless carrier Sprint Nextel Corp. (S) made it known Monday that the company had a larger 1Q deficit as revenues declined as they lost more than a million subscribers and they absorbed charges for severance and other costs. Sprint said its loss totaled $505M, or $0.18 per share, in the past three months compared with a loss of $211M, or $0.07 per share, during the 1Q of last year. Not including a number of one-time charges, including $231M for severance and asset impairment and $86M in deal-related costs, the company said it earned $0.04 per share, compared to $0.18 per share in the year-ago quarter. Revenues, meanwhile, dropped 7.5% to $9.3B from $10.1B a year earlier, while analysts were expecting earnings of $0.02 per share on $9.4B in sales. Sprint, which has struggled since buying Nextel Communications Inc. in 2005, said its total subscriber base slipped by 1.09 million to 52.8 million, including the loss of 1.07 million post-paid customers who pay a monthly bill. The two companies said they will combine their wireless broadband units to create a $14.55B communications company, to be called Clearwire, which will continue developing a mobile network based on WiMax technology. Its shares fell $0.14, or 1.5%, to $9.24 in trading.

MBIA Inc. (MBI) posted a $2.41B loss during the 1Q as the bond insurer faced ongoing deterioration in the credit markets and recorded billions in write-downs. The loss equated to $13.03 per share during the quarter, compared with year-ago profits of $198.6M, or $1.46 per share. MBIA was forced to reduce the value of its insured derivatives holdings by $3.58B, leading to $2.96B in total lost revenues, compared with revenues of $729.9M a year ago, along with net premiums written tumbling to $97.3M from $171.3M last year. The derivatives lost were not the only problems plaguing bond insurers in recent months. They have also been hit hard by the deterioration in the mortgage markets that began in late 2007. Unlike traditional insurance on corporate or municipal bonds, the value of derivatives holdings must be priced at the end of each quarter at current market value. Because the value of such products has plummeted in recent months, MBIA was forced to cut the value of its holdings, thus recording an unrealized loss. Throughout the quarter, MBIA raised about $2.6B in new capital through the issuance of common stock and other investments. Despite the capital raising efforts, Fitch Ratings cut MBIA's financial strength rating to "AA" from "AAA" in early April. MBIA's capital reserves range between $3.4B and $3.8B short of what is needed for Fitch to consider the bond insurer worthy of being rated "AAA." Despite that, shares advanced 4.5%, or $0.42, to $9.85 in trading.

Petroleum refiner Holly Corp. (HOC) announced Monday that the firm’s 1Q earnings plummeted 87%, as soaring crude oil prices squeezed margins. The company stated that they earned $8.6M, or $0.17 per share, compared with $67.5M, or $1.20 per share, in the 1Q of 2007. For the recent quarter, sales leaped 60% to $1.48B, from $925.9M in the year-ago period. Analysts, on average, expected profits for Holly Corp. to be $0.15 per share on revenues of $1.35B. The company also made it known that its pressured margins were helped somewhat by rising sales of refined petroleum products and higher selling prices. Overall, production for the firm increased 7%, mostly due to a refinery expansion. Shares of Holly Corp rocketed forward, despite their earnings report, trading up $3.17, or 7.7%, to close at $44.19 a share.

XM Satellite Radio Holdings Inc. (XMSR) proclaimed Monday that the company’s 1Q loss increased by nearly 6% despite a 17% jump in revenues. XM, which is seeking regulatory approval for an acquisition by rival Sirius, stated that they lost $129.3M, or $0.42 per share, compared with $122.4M, or $0.40 per share, a year ago. Analysts, meanwhile, expected the loss to narrow to $0.39 per share. XM says revenues climbed 17% to $308M from $264M last year, but that falls short of the $313M expected by experts. The company finished March with 9.33 million subscribers, up from 7.9 million a year earlier. XM added a nearly identical number of subscribers, about 1.4 million, in the 12 months from April 2006 to March 2007. In the last 12 months, the factory-installed subscriber base increased 36% to 3.9 million, while the retail market increased just 1% to 4.5 million. The rest of the subscriber base comes from smaller categories like subscriptions held by rental-car companies. The cost to acquire a new customer jumped to $73 from $65 a year ago. By the close of the trading day, XM shares added $0.50, or 4.2%, to close at $12.30.

Imax Corp., (IMAX) a maker of large-screen movie systems, announced Monday that their fiscal 1Q loss expanded on increased expenses. Toronto-based Imax reported a loss of $10.3M, or $0.25 per share, for period, compared with a loss of $4.7M, or $0.12 per share, a year earlier. Selling, general and administrative expenses climbed to $12.4M from $10.3M, while research and development costs grew to $2.5M from $1.5M. Quarterly sales declined 12% to $23.5M from $26.8M. Imax said it signed deals for 66 of its theater systems during the quarter, compared with 13 in the prior-year period. On the day, shares of IMAX traded on the lower side, down $0.13, or 1.8%, to conclude the session at $7.09 a share.

Oil prices briefly spiked to a new record above $126 a barrel Monday but later retreated with some investors buying on worries of a falling supply, while others sold in response to a stronger dollar. Light, sweet crude for June delivery jumped to a new record of $126.40 a barrel on the New York Mercantile Exchange before falling back to $124.23, down $1.73. The contract first advanced above $126 on Friday. In other NYMEX trading Monday, June gasoline futures dropped $0.037 to settle at $3.1642 a gallon after earlier rising to a trading record of $3.218 a gallon. June natural gas futures slipped $0.0236 to settle at $11.301 per 1,000 cubic feet after earlier rising to its own trading record of $11.675. Heating oil for June delivery declined $0.0762 to settle at $3.5598 a gallon on the NYMEX.

Retail gas prices, meanwhile, increased to another record above $3.70 a gallon, again following crude's recent path higher. The national average price of a gallon of regular gas added $0.011 overnight to a record $3.718 a gallon according to a survey of stations by AAA and the Oil Price Information Service. The Energy Department expects prices to peak at a monthly average of $3.73 in June, though many analysts say national average prices could rise as high as $4. Consumers in many regions, including parts of California and Hawaii, are already paying that much. Demand for diesel fuel is also growing worldwide, but supplies of distillates, which include diesel and heating oil, fell unexpectedly earlier this month. That's pushing U.S. diesel prices to record highs and inflating heating oil prices in the futures market. In response, retail diesel prices jumped $0.031 overnight to a record national average of $4.361 a gallon.

Treasury prices declined Monday as fixed-income investors secured positions before a number of key economic reports to be released in the coming days. Investors are looking towards Tuesday's Commerce Department report on April retail sales to get a better idea of consumers' ability to spend. The market's concern is that record-high energy and food prices have cut into consumer spending, which accounts for two-thirds of the U.S. economy. The benchmark 10-year Treasury note dropped 6/32 to 100 21/32 and its yield advanced to 3.79% from 3.78% late Friday, while The 30-year long bond slid 4/32 to 97 12/32 and yielded 4.54%, up from 4.53% Friday. The 2-year note was also lower, down 4/32 at 99 21/32 and its yield moved to 2.31% from 2.24%.

The U.S. Dollar furthered a modest rally Monday as markets awaited hints from the U.S. Federal Reserve about interest rate moves. The Euro purchased $1.5440 in afternoon trading, down from $1.5480 late Friday in New York. The Dollar also moved to 104.17 Japanese yen from 103.09 yen on Friday, while the British pound advanced to $1.9566 from $1.9519 in New York. In other New York trading, the Dollar gained to 1.0444 Swiss francs from 1.0410 francs, but slumped to 1.0050 Canadian dollars from 1.0067. The Dollar has now risen 3.6% since hitting an all-time low of $1.6018 against the Euro on April 22nd, climbing on the belief that the U.S. Fed may be done cutting interest rates and that the U.S. economy may avoid a severe recession.

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BetterTrades After Market Commentary - May 9, 2008

The major stock markets retreated Friday as investors contended with wider-than-expected losses at insurer American International Group Inc. and another worrisome spike in oil prices. The Dow Jones industrial average, at one points, declined more than 150 points. The market has pulled back this week after a sizable rebound in the last two months and some investors might be eager to lock in profits while Wall Street irons out some concerns about the financial sector. By the conclusion of late-day trading, the Dow Jones dropped 120.90 points, or 0.94%, to 12,745.88, while the broader stock indicators were also lower, a day after the stock market notched a modest advance. The S&P 500 index slipped 9.40 points, or 0.67%, to 1,388.28, while the NASDAQ composite index declined 5.72 points, or 0.23%, to 2,445.52.

The U.S. trade deficit narrowed sharply in March as demand for imports fell by the largest amount since the last recession was ending. The Commerce Department reported Friday that the deficit totaled $58.2B, down 5.6% from February, a larger improvement than had been expected. The smaller deficit reflected spreading weakness in the U.S. economy, which cut demand for imports by 2.9%, the largest one-month decline since December 2001, one month after the last recession ended. The decline, which pushed imports down to $206.7B, was led by a 5.9% decrease in America's foreign oil bill. The amount of petroleum fell as the average price for crude oil jumped to an all-time high. Imports of autos and a wide variety of other consumer goods from furniture to toys and clothing also fell, reflecting the hard economic times facing U.S. consumers. Exports, which have been one of the few strong points in this period of weakness, suffered a setback in March, falling to $148.5B, still the second highest level on record but down 1.7% from the all-time high set in February. Sales of commercial airliners, cars, computers and machinery were all down.

For the first two three months of this year, the trade deficit is running at an annual rate of $715.5B, up slightly from last year's imbalance of $708.5B, which had been the first decline after the deficit set records for five consecutive years. For March, the deficit with Canada, America's biggest trading partner, edged up 0.4% to $6.5B, while the deficit with the European Union increased by 9.1% to $7.5B even though U.S. exports to the EU edged up 1.2% to a record $24.1B. This reflected the boost that American products have gotten as the U.S. dollar fell to a record low against the Euro. The deficit with Japan climbed 8.9% to $7.5B while the imbalance with the Organization of Petroleum Exporting Countries (OPEC) totaled $14.1B, an increase of 6.8% from February. The deficit with Japan jumped 8.9 percent to $7.5B.

American International Group Inc. (AIG) says it will raise $12.5B in the coming months as the insurer looks to shore up a capital base that has been rocked by deterioration in the credit markets. The capital raising effort will be a two-step process, with the first portion estimated to raise $7.5B through an offering of common stock and equity units. The equity units will consist of subordinated debt securities and contracts that require the holders to purchase AIG stock at a future date. Once the $7.5B offering is completed, AIG will raise an additional $5B through an offering of high equity fixed-income securities. AIG, the world's biggest insurer, has yet to disclose a timetable for when it will offer the securities. In its most recent quarter, AIG lost $7.81B, or $3.09 per share, compared with earnings of $1.58 per share, or $4.13B, during the year-ago period. It lost more than $5B during the final quarter of 2007. AIG lost $9.11B in its credit-default swaps portfolio during the 1Q. The swaps promise to cover losses on $579B in bonds or other kinds of debt. Losses in its investment portfolio, which includes debt backed by troubled mortgages, totaled $6.09B, while the company also announced that they lost $352M in its mortgage insurance business. Overall, the insurance writing business at AIG was relatively flat compared with the 1Q last year. Net premiums written fell less than 1% during the 1Q to $12.08B. AIG's net premiums written totaled $12.11B during the same quarter last year. AIG shares tumbled $3.87, or 8.7%, to $40.28

Clear Channel Communications Inc. (CCU) reported Friday that their 1Q profits surged due to asset sales, an investment gain and higher revenue, but earnings from continuing operations were flat. The radio broadcaster and outdoor advertising company, which is battling its lenders as it struggles to complete a deal to go private, earned $799.7M, or $1.61 per share, in the first three months of the year, while in the same period a year earlier, the company earned $102.2M, or $0.21 per share. Revenues for the firm edged up 4% to $1.56B from $1.51B, but excluding the effects of foreign exchange swings the earnings would have increased 1%. Excluding discontinued operations and gains from asset sales, including a $67.2M gain from selling an interest in a South Africa-based outdoor advertising company, earnings from continuing operations were $94.2M or $0.19 per share in the latest period, versus $95.1M, also $0.19 per share, a year earlier. Analysts had expected $0.21 per share. Its shares gained $0.16, or 0.5%, to $30 in trading.

Dril-Quip Inc. (DRQ) made it known Friday that the company’s 1Q earnings gained 6% on higher demand for its offshore drilling and production equipment, but the results still missed analysts’ expectations. The company earned $25.4M, or $0.62 per share, compared with $24.1M, or $0.59 per share, in the year-ago quarter. Revenues for the firm jumped 13% to $132.4M, from $117.7M in the prior-year period, while analysts expected profits of $0.69 per share on revenues of $136.1M. The company said its order backlog at the end of the 1Q was about $438M, compared to $345M a year earlier. The company also issued a 2Q earnings prediction below expectations. The company expects to earn $0.60 per share to $0.70 per share for the quarter ending June 30th. Analysts, on average expect a profit of $0.72 per share for the 2Q. Shares of Dril-Quip were beaten down today, falling 2.3%, or $1.38, at $59.54.

Specialty chemical company Huntsman Corp. (HUN) stated Friday that the company’s 1Q profits plummeted 84% on costlier raw materials and feed-stocks and dollar weakness. Net income for the three months declined to $7.3M, or $0.03 per share, compared with $46.6M, or $0.20 per share, in the prior year's 1Q. Excluding one-time gains, Huntsman earned $0.07 per share in the recent quarter. Analysts expected, on average, earnings per share of $0.22. Revenues for the company during the recent quarter jumped 13% to $2.54B from $2.25B, while analysts had expected revenues of $2.37B By the close of the day, shares of Huntsman were down slightly, lower by $.0.58, or 2.5%, at $22.65.

Sotheby's (BID) announced Friday that the company posted a loss in the 1Q, as the auction house reported a decrease in single owner sales and lower commission margins. For the three months, the company reported a loss of $12.4M, or $0.19 per share, compared with a profit of $24.3M, or $0.37 per share, in the year-ago period. Analysts were estimating earnings of $0.10 per share on sales of $141.4M. Revenues dropped 12% to $129.3M from $147.4M in the 1Q of 2007. Revenue declined due to lower auction commissions margins, the company said, which were required to win consignments. Net auction sales increased 2%, but this was offset by a significant decrease in single owner sales. Total auction and related revenues declined 17% to $107.9M, while total expenses increased 10% to $147.7M which included a 12% increase in salaries and related costs, and a 20% increase in general and administrative expenses due to higher professional fees and travel and entertainment expenses. Additionally, Sotheby's announced plans to increase pricing, effective June 1st. The change will represent an increase of 2% or less in the final purchase price for more than 95% of the lots the company sells. Shares of Sotherby declined sharply on the day, down $2.56, or 9.3%, at $24.91.

Southern Union Co.'s (SUG) 1Q net income jumped 5.6% on higher revenue from the interstate natural gas pipeline company's gathering and processing segment. Net income for the three months climbed to $78.6M, or $0.64 per share, compared with $74.4M, or $0.62 per share, in the year-earlier period, the company announced late Thursday. Analysts had expected, on average, earnings per share of $0.61. Excluding one-time gains from the prior year's quarter, including a litigation gain, adjusted earnings per share were $0.53 in the 1Q of 2007. Revenues for the firm jumped to $610.2M from $483.1M, while analysts expected revenues of $830.9M. These results benefited from higher contributions from its gathering and processing and transportation and storage segments, the company said. Additionally, Southern Union reaffirmed their full-year 2008 outlook within range of market expectations. The company said it expects 2008 earnings per share to be in a range of $1.80 to $1.90, while analysts expect $1.86 per share, on average. By the close of today’s trading session, shares of SUG were slightly lower, down $0.59, or 2.2%, at $25.45.

Oil advanced above $126 a barrel for the first time Friday, bringing its advance this week to nearly $10, as investors questioned whether a possible confrontation between the U.S. and Venezuela could cut exports from the OPEC member. Light, sweet crude for June delivery vaulted to a new record of $126.20 in morning trading on the New York Mercantile Exchange before retreating to trade up $2.27 at $125.96 a barrel, a new closing record. In other NYMEX trading Friday, June gasoline futures added $0.0634 to $3.2012 a gallon, and June natural gas futures gained $0.148 to $11.411 per 1,000 cubic feet. Heating oil for June delivery inched up $0.1262 to $3.636 on the NYMEX after earlier setting a trading record of $3.6524.

Gas prices, meanwhile, increased above an average $3.67 a gallon at the pump, following oil's recent path higher. The national average price of a gallon of regular gas jumped $0.026 overnight to a record $3.671 a gallon according to a survey of stations by AAA and the Oil Price Information Service. The Energy Department expects prices to peak at a monthly average of $3.73 in June, though many analysts say national average prices could rise as high as $4. Consumers in many regions, including parts of California and Hawaii, are already paying that much. At truck stops, retail diesel prices gained $0.018 overnight to a record national average of $4.269 a gallon,

Treasury prices mostly advanced Friday after fresh concern about strains still taxing the global financial system and as stocks retreated following another advance in oil prices. The benchmark 10-year Treasury note advanced 3/32 to 100 28/32 and its yield dropped to 3.77% from 3.78% late Thursday, while the 2-year note was down 1/32 at 99 25/32 and yielded 2.24%, up from 2.22%. The 30-year long bond gained 10/32 to 97 16/32 and yielded 4.53%, down from 4.54% late Thursday.

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