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Non-Tech : Banks--- Betting on the recovery -- Ignore unavailable to you. Want to Upgrade?

To: Asymmetric who wrote (788)	4/14/2010 11:25:45 PM
From: Asymmetric	Respond to of 1428

US HOT STOCKS: JPMorgan, Intel, Dialysis Corp, Linear Tech 4/14/10 \| Dow Jones U.S. stocks rose Wednesday as the Dow Jones Industrial Average climbed 64 points to 11083, the Standard & Poor's 500 gained 8 points to 1205 and the Nasdaq Composite rose 27 points to 2493. Among the companies whose shares are actively trading are J.P. Morgan Chase & Co. (JPM), Intel Corp. (INTC) and Dialysis Corp. of America (DCAI). J.P. Morgan Chase's ($47.40, +$1.53, +3.34%) first-quarter earnings rose a larger-than-expected 55% on a 30% drop in credit-loss provisions as the giant bank continued to post improved results. The decline in provisions is a welcome sign to investors, because the bank had been very conservative in building its balance sheet. Chief Financial Officer Michael Cavanagh said the bank would likely raise its dividend during the second half of 2010 and Chief Executive Jamie Dimon said the economy is moving further away from the possibility of a "double dip" in the recession. Other large banks, who are also reporting over the next few weeks, also rose on the strong profit, as financials were the second-strongest sector in the S&P 500. Bank of America Corp. (BAC, $19.28, +$0.61, +3.27%), which reports Friday, Citigroup Inc. (C, $4.87, +$0.25, +5.30%), Morgan Stanley (MS, $31.20, +$0.72, +2.36%) and Goldman Sachs Group Inc. (GS, $184.86, +$5.61, +3.13%) all climbed as did Wells Fargo & Co. (WFC, $33.01, +$0.86, +2.66%). And regional banks Regions Financial Corp. (RF, $8.66, +$0.32, +3.84%), Huntington Bancshares Inc. (HBAN, $5.84, +$0.15, +2.64%), KeyCorp (KEY, $8.41, +$0.27, +3.32%) and Zions Bancorp (ZION, $26.29, +$1.72, +7.00%) all rose too. Intel ($23.45, +$0.68, +2.96%) reported its first-quarter profit jumped sharply, pushing the chip maker to the best first quarter in its history thanks to strong demand for its new line of chips and a return of business spending on technology. During a conference call to discuss the chip maker's first-quarter results, Chief Executive Paul Otellini also said Intel plans to speed up the rollout of two new chip factories and said he thinks PC sales will be stronger through the rest of the year than he expected a few months ago. Intel's bullishness also boosted the rest of the chip sector, with information technology the strongest sector in the S&P 500. Those gaining included Advanced Micro Devices Inc. (AMD, $9.89, +$0.33, +3.45%), KLA-Tencor Corp. (KLAC, $33.08, +$1.10, +3.44%), Texas Instruments Inc. (TXN, $26.66, +$0.79, +3.05%), Xilinx Inc. (XLNX, $27.42, +$0.58, +2.16%) and TriQuint Semiconductor Inc. (TQNT, $7.88, +$0.14, +1.82%). Flash memory makers were also kicking higher, with SanDisk Corp. (SNDK, $37.81, +$1.85, +5.14%), Micron Technology Inc. (MU, $11.31, +$0.55, +5.11%) leading. Hutchinson Technology Inc. (HTCH, $6.93, +$0.45, +6.94%) and Analog Devices Inc. (ADI, $30.96, +$1.18, +3.95%) were also strong as was Teradyne Inc. (TER, $12.20, +$0.77, +6.74%), which makes testing equipment for the sector. Companies that rely on corporate information-technology spending will likely see similar rebounds as Intel, particularly as customers upgrade older computers to Microsoft Corp.'s (MSFT, $30.77, +$0.32, +1.04%) new Windows 7 system, including Dell Inc. (DELL, $16.61, +$0.89, +5.66%), Microsoft, Hewlett-Packard Co. (HPQ, $54.49, +$0.71, +1.32%) and International Business Machines Corp. (IBM, $130.90, +$1.87, +1.45%). U.S. Renal Care Inc. said it will buy Dialysis Corp. of America (DCAI, $11.19, +$4.67, +71.63%), paying Dialysis shareholders a huge premium in a deal valued at about $112 million. Under the agreement, USRC will pay Dialysis Corp. shareholders $11.25 a share, a 73% premium over Tuesday's closing price. Meanwhile, Linear Technology Corp.'s (LLTC, $30.82, +$1.17, +3.95%) fiscal third-quarter earnings more than doubled on record high quarterly revenue and the chip maker also projected current-quarter earnings above analysts' estimates. Kulicke & Soffa Industries (KLIC, $9.27, +$1.41, +17.96%) reported its fiscal second-quarter revenue topped Wall Street's expectations, as the maker of semiconductor-assembly equipment also issued a bullish fiscal third-quarter revenue outlook on strong orders. Other Stocks In Focus: Medical-device company Accuray Inc. (ARAY, $6.79, +$0.78, +12.98%) can thank its competitor Varian Medical Systems Inc. (VAR, $55.45, -$0.11, -0.20%) for a nice share bump Wednesday. Accuray had been slumping for weeks ahead of Varian's anticipated release of a next-generation radiation device, a machine expected to cut into sales of Accuray's CyberKnife. But after Varian's official launch Wednesday, Accuray shares are running up. While Varian has made a step forward with its new device, investors may be thinking Accuray can remain competitive, Jefferies said. Also, Accuray was due for some relief after a 20% drop since early March. Adtran Inc.'s (ADTN, $29.02, +$1.70, +6.22%) first-quarter results came in above analysts' expectations. The maker of high-speed digital communication components saw strong revenue growth in its broadband access category. BB&T Capital upgraded Advance Auto Parts Inc. (AAP, $44.88, +$2.62, +6.20%) to buy from hold saying they believe that sales have accelerated "materially" in March and April. March may have even been better than any single month last year. That caused the analysts to rethink their concerns about the first-quarter, which they had been expecting to be disappointing, but now believe will be stronger. Other auto-parts dealers rose too, including Pep Boys-Manny Moe & Jack (PBY, $11.97, +$0.60, +5.28%) and O'Reilly Automotive Inc. (ORLY, $43.16, +$1.01, +2.40%). Goldman Sachs took a look at the Irish banking sector and said improved clarity on capital shortfall reduces key "tail" risk in the restructuring process of the Irish banks. It expects both Allied Irish Banks PLC (AIB, $4.34, +$0.38, +9.60%) and Bank of Ireland (IRE, $9.47, +$0.36, +3.95%) to ultimately emerge as smaller, more focused financial institutions. It upgraded AIB to buy from neutral, saying flexibility on asset disposals improves the risk-reward balance and Bank of Ireland at buy, saying that bank is now one step away from raising equity and putting its capital concerns behind it. Bank of America Merrill Lynch raised its investment rating on retailers AnnTaylor Stores Corp. (ANN, $22.74, +$1.56, +7.37%) and Chico's FAS Inc. (CHS, $15.32, +$0.65, +4.43%) to buy from neutral, saying "the adult female shopper is beginning to respond well to more modern assortments, leading to sales growth." CSX Corp. (CSX, $55.24, +$1.96, +3.68%), the first of the major U.S. railroads to report first-quarter results, cited "gradual and steady" growth in the economy for a 20% rise in profit that topped Wall Street's expectations.

To: Asymmetric who wrote (788)	4/14/2010 11:54:03 PM
From: Asymmetric	Read Replies (1) \| Respond to of 1428

J.P. Morgan Earnings Takeaways By Matt Phillips / Dow Jones April 14, 2010 Here are some of the early reads on J.P. Morgan earnings from Wall Street banking analysts. Short version: We’re at an inflection point for the loan losses that have dogged banks. * Goldman Sachs: “Capital markets was clearly better than expected, and consumer credit leverage is now evident with reserve releases in cards. Guidance for mortgage losses is starting to get more positive.” * Bank of America Merrill Lynch: “Credit news was largely positive, with delinquency down sharply and the company thus pulling down reserves by $1 b. Master Trust data correctly foreshadowed improvement. Guidance on Consumer Mortgage revised to say ‘if current trends continue, losses may not reach’ previously outlined expectations. * Deutsche Bank: “JPM was more upbeat regarding the macro outlook, noting that there has been ‘clear and broad-based improvements in underlying trends’ and that these will likely continue and gain momentum.” Just as a refresher, better credit trends can translate into better earnings for banks, as they move some of the cash they socked away to cover the losses they previously expected, and move that money back into the earnings column.

To: Asymmetric who wrote (788)	4/15/2010 1:31:39 PM
From: tejek	Respond to of 1428

Delinquent Borrowers Catch Up on Insured Mortgages In February, for the first time since March of 2006, mortgage cures topped new mortgage delinquencies. By Andrew Frye March 31 (Bloomberg) -- Borrowers who caught up on overdue mortgages outnumbered people who became newly delinquent on insured home loans for the first time in almost four years. PMI Group Inc. led mortgage insurers higher in New York trading. In February, 68,675 homeowners with privately insured mortgages fell into default, compared with 80,758 who got back on track, a report today from the Washington-based Mortgage Insurance Companies of America said. In January, MICA reported 52,528 new defaults and 31,616 cures. The trade group last reported that recoveries exceeded defaults in March 2006. “The significance is substantial, it’s enormous,” said Matthew Howlett, an analyst with Macquarie Group Ltd. Recoveries outpacing new defaults “signals a turning point” for mortgage insurers, he said. MGIC Investment Corp., the biggest U.S. mortgage insurer, No. 2 Radian Group Inc. and No. 3 PMI are facing fewer claims as the economy recovers and the Obama administration works with the nation’s biggest banks to prevent foreclosures. Philadelphia- based Radian, which has reported three straight annual losses, said in February that delinquencies were slowing and may fall this year. “We know there has been a slowdown in new defaults,” Radian Chief Financial Officer C. Robert Quint said on a Feb. 23 conference call with analysts and investors. “I actually expect it to be flat and slightly down throughout the year.” PMI, based in Walnut Creek, California, rose 88 cents, or 19 percent, to $5.42 in New York Stock Exchange composite trading. MGIC rose 84 cents, or 8.3 percent, to $10.97. Radian advanced $1.03, or 7.1 percent, to $15.64. More Foreclosures The U.S. Treasury Department reported on March 12 that lenders in the Home Affordable Modification Program led by Bank of America Corp. and JPMorgan Chase & Co. successfully converted 168,708 trial plans into permanent loan revisions through February, up from 116,297 a month earlier. More than 835,000 additional borrowers were in trial repayment plans, Treasury said. “The government modification programs are starting to have an impact,” said Howlett of Macquarie. Howlett said the improvement in the so-called cure rate may allow insurers to reduce reserves and he expects Milwaukee-based MGIC to report its first quarterly profit in more than two years in the first three months of the 2010. Mortgage insurers, which pay lenders when foreclosure fails to recoup costs, have suffered from a surge in claims as borrowers struggle to meet payments or refinance debts. About 2.82 million U.S. homeowners lost their properties to foreclosure last year and 4.5 million filings are expected in 2010, RealtyTrac Inc. said in January. --With reporting by Dawn Kopecki in New York. Editors: Erik Holm, William Ahearn businessweek.com