BetterTrades After Market Commentary

Stocks pulled off another late-day turnaround Friday as lingering concerns about the banking sector and the health of the overall economy punctured several attempts at a rally. Stocks had fallen in six of the past seven sessions as investors have fretted about whether consumers would succumb to higher energy prices, rising mortgage costs and an anemic dollar. The Dow Jones industrial average rose 66.74, or 0.51%, to 13,176.79. Broader stock indicators also recovered by the close of the bell. The S&P 500 index rose 7.59, or 0.52%, to 1,458.74. The NASDAQ composite index rose 18.73, or 0.72%, to 2,637.24.




Cisco Systems Inc. (CSCO), the world's largest network equipment company, said Friday it plans to buy back up an additional $10B of its shares, expanding its total stock repurchase program to $62B. Since launching its repurchase program in September 2001 through Oct. 27, 2007, Cisco has repurchased and retired 2.3 billion shares at an average price of $19.89 each for a total price of $46.2B. CSCO shares traded modestly today, up only $0.64 at $29.94.




FedEx Corp. (FDX), citing soaring fuel costs and a troubled U.S. freight market, cut its earnings expectations for the fiscal 2Q and for the full year guidance. Since September, fuel costs have increased more than 8%, or $85 million. For the 2Q ending Nov. 30, the company expects to earn $1.45 to $1.55 per share, compared with a previous forecast of $1.60 to $1.75 per share. For the fiscal year ending in May, the company forecast earnings of $6.40 to $6.70 per share, down from a prior range of $6.70 to $7.10 per share. Analysts polled had expected the company to earn $1.71 per share for the quarter and $6.87 per share for the year. Fed Ex shares sank $4.57 to $96.80 in trading Friday after sinking to a 52-week low of $96.10 earlier.




The Federal Reserve said that output at the nation's factories, mines and utilities fell by 0.5 percent last month, a much worse outcome than had been expected. This is the largest drop in nine months, reflecting a big drop in utility output and continued troubles in autos and housing-related industries. Analysts believe that the economy will slow significantly in the current quarter and the first three months of next year, with many raising the odds for a recession. Manufacturing output fell by 0.4% in October, the biggest drop since a 0.4% decline in August. Output at the nation's utilities was down 1.6%. Mining output, a category that includes oil production, fell 0.6%. The declines left factories, mines and utilities operating at 81.7% of capacity last month, down from an operating rate of 82.2% in September.




Oil prices rose above $95 a barrel Friday amid expectations that global crude supplies will remain tight, despite a U.S. oil inventory report that showed a surprising increase in domestic crude stockpiles. Light, sweet crude for December delivery on the New York Mercantile Exchange gained $1.67 to $95.10 a barrel in electronic trading by mid-afternoon in Europe. The contract expires at the end of Friday. NYMEX heating oil futures added $0.0284 to $2.5871 a gallon while gasoline prices increased $0.0392 to $2.3754 a gallon. Natural gas futures gained $0.301 to $8.001 per 1,000 cubic feet.




Treasury prices fell Friday after comments from Federal Reserve officials curtained a powerful rally that sent the benchmark 10-year note's yield to its lowest point in more than two years. The 10-year Treasury note fell 5/32 to 100 24/32 with a yield of 4.16%, up from 4.14% late Thursday. The 30-year long bond dropped 7/32 to 107 20/32 with a yield of 4.54%, up from 4.52% late Thursday. The 2-year note dropped 3/32 to 100 16/32 with a 3.35% yield, up from 3.32% late Thursday.




Alltel Corp.(AT), the nation's fifth-largest wireless carrier, was taken private Friday to complete a $24.7B buyout by two private equity groups. TPG Capital, formerly Texas Pacific Group, and GS Capital Partners, a subsidiary of Goldman Sachs, are paying Alltel shareholders $71.50 per share in cash, according to the terms of the deal. The $71.50 purchase price is 22.6% higher than the last closing share price of $58.31 before news of a possible buyout leaked. Alltel entered the transaction with only $2.7B in debt and was near completion of a $3B share repurchase program. The new private company will now carry an estimated $23B in debt to finance the buyout. Alltel shares are to trade through the close of business and then be suspended.





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