Wall Street rebounds

Wall Street has managed its second straight comeback, but the rebound was more a sign of the market's turmoil than strength.

Stocks closed moderately higher Friday after an erratic session that had investors tussling with concerns about the ongoing problems in the banking industry in response to more billion-dollar losses at Citigroup Inc. and Bank of America Corp. Yet investors were also heartened by plans for both banks to restore themselves to profitability, and they were also willing to place bets on a range of consumer and industrial stocks.

It's that tug of war between problems and promise," said Alan Gayle, senior investment strategist at RidgeWorth Investments. "I think there is a bit of a sigh of relief that there is assistance coming for Citi and Bank of America, but it seems like there is an ongoing need for this assistance."

The companies' fourth-quarter losses -- Citi said it lost $8.29 billion, while Bank of America lost $2.39 billion -- were sobering reminders that the sagging economy is aggravating the problems that began with the mortgage crisis in 2007.

Still, the market drew some reassurance from the fact that Bank of America reached a deal late Thursday to receive an additional $20 billion in capital from the government. The bank will also receive guarantees to cover up to $118 billion in losses on loans and securities backed by residential and commercial real estate as it incorporates recently acquired Merrill Lynch & Co. into its operations. Bank of America's deal with the government is similar to one Citigroup reached with the government last fall.

Meanwhile, Citigroup, among the hardest hit by the ongoing credit and mortgage market turmoil, said it plans to separate its traditional banking business from its riskier operations. Earlier in the week, Citi agreed to sell a majority stake in its brokerage business to Morgan Stanley as it looks to streamline and shed assets.

Amid the uncertainty about financials, investors were buying consumer stocks like Wal-Mart Stores Inc., McDonald's Corp. and Procter & Gamble Co. Some tech stocks were among the gainers, including Intel Inc. and Microsoft Corp. After two weeks of selling, many stocks are looking much more attractive.

The Dow Jones industrial average rose 68.73, or 0.84 percent, to 8,281.22. The Dow was down 103 points in early afternoon. On Thursday, it recovered from a 205-point loss to close up 12.35; before its rebound, the Dow fell below 8,000 for the first time since Nov. 21.

The Standard & Poor's 500 index rose 6.38, or 0.76 percent, to 850.12, while the Nasdaq composite index rose 17.49, or 1.16 percent, to 1,529.33.

The indexes were down for the week, the result of selling in response to weak economic data and fears that fourth-quarter earnings reports, which begin next week in earnest, will point to a prolonged recession.

For the week, the Dow fell 3.7 percent, the S&P 500 lost 4.5 percent and the Nasdaq skidded 2.7 percent.

"We continue to see a tug of war between what has been some really bad economic data in recent weeks and optimism that the economy and financial markets are likely to stabilize and improve as we head through 2009," said Michael Sheldon, chief market strategist at RDM Financial. "There clearly are a lot of crosscurrents in the market."

Alexander Paris, economist and market analyst for Chicago-based Barrington Research, said the price swings seen in the past few days are likely to continue until all the earnings data is in.
"We're going into a test of the market, given the bad numbers coming out," Paris said. "It's a battle between sentiment and ugly fundamentals."

John Merrill, chief investment officer of Tanglewood Wealth Management, said the market will be eyeing results outside the financial industry to see if banking troubles are seeping further into the broader economy. If non-financials can show some growth, it could restart the late 2008 rally that stalled in the first week of January.

"There's no sustained buying," Merrill said. "The follow through just isn't there."
Some of Friday's price movements were exacerbated by the expiration of stock options.
Bank of America shares tumbled $1.14, or 13.7 percent, to $7.18. Citi fell 33 cents, or 8.6 percent, to $3.50.

Steven Goldman, chief market strategist, Weeden & Co., said Bank of America was down in part over concerns that government financial support will diminish shareholders' stake in the company.

"Bank of America equity holders have a new partner and are being diluted," Goldman said, adding that the bank cut the quarterly dividend to 1 cent per share, making it less attractive, and will have to cede some managerial rights to the government.

Wal-Mart rose 21 cents to $51.56, McDonald's rose $1.69 to $59.67 and Procter & Gamble rose 27 cents to $57.73. Intel rose 45 cents $13.74 and Microsoft gained 47 cents to $19.71.

The market had little reaction to the government's latest reports showing the economy remains weak.

The Labor Department said the consumer price index fell 0.7 percent in December as energy prices slid. Economists polled by Thomson Reuters forecast a 0.9 percent drop. Meanwhile, the Federal Reserve said industrial production from the nation's factories, mines and utilities fell a larger-than-expected 2 percent in December. Economists expected a 1 percent.

Advancing issues outnumbered advancers by about 2 to 1 on the New York Stock Exchange, where consolidated volume came to 5.92 billion shares, down from 6.84 billion Thursday.
The Russell 2000 index of smaller companies rose 3.83, or 0.83 percent, to 466.45.

Crude oil for March delivery fell 97 cents Friday to settle at $42.57 on the New York Mercantile Exchange. The February contract, which expires Tuesday, rose $1.11 to settle at $36.51 a barrel in very light trading. The dollar fell against other major currencies, while gold prices rose.

Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 2.34 percent from 2.20 percent late Thursday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.11 percent from 0.10 percent.

Overseas, Japan's Nikkei stock average rose 2.6 percent. Britain's FTSE 100 gained 0.9 percent, Germany's DAX index rose 0.7 percent, and France's CAC-40 was rose 0.7 percent.

For the week, the Dow Jones industrial average fell 317.96, or 3.70 percent, to close at 8,281.22. The Standard & Poor's 500 index lost 40.23, or 4.50 percent, to close at 850.12. The Nasdaq composite index slid 42.26, or 2.70 percent, to 1,529.33.

The Russell 2000 index, which tracks the performance of small company stocks, fell 14.85, or 3.1 percent, to 466.45.

The Dow Jones Wilshire 5000 Composite Index -- a free-float weighted index that measures 5,000 U.S. based companies -- ended at 8,603.21, down 382.59 points, or 3.72 percent, for the week. A year ago, the index was at 13,308.47.

McDonald's

Type
Public (NYSE: MCD)
Founded
May 15, 1940 in San Bernardino, CaliforniaMcDonald's Corporation, 1955 in Des Plaines, Illinois
Founder(s)
Dick and Mac McDonald McDonald's restaurant conceptRay Kroc, McDonald's Corporation founder.
Headquarters
Oak Brook, Illinois, USA
No. of locations
31,000+ worldwide[1]
Area served
Worldwide
Key people
James A. Skinner(Chairman) & (CEO)
Industry
Restaurants
Products
Fast Food(hamburgers • chicken • french fries • soft drinks • milkshakes • salads • desserts • breakfast)
Market cap
US$ 60.07 billion (2008)
Revenue
▲ US$ 22.79 billion (2007)[2]
Operating income
▼ US$ 3.879 billion (2007)[2]
Net income
▼ US$ 2.359 billion (2007)[2]
Total assets
▲ US$ 29.391 billion (2007)
Total equity
▼ US$ 15.279 billion (2007)
Employees
390,000 (2008)[2]
Website
McDonalds.com

JPMorgan Chase posts small profit

JPMorgan Chase has managed to avoid a loss in the fourth quarter, indicating that it is weathering the financial crisis better than some of the other big banks.

The company, however, added $4.1 billion to loan loss reserves, proving that it is not immune to the deepening global recession.

The New York-based company Thursday reported a profit of $702 million, or 7 cents per share, down sharply from $2.97 billion, or 86 cents per share, a year ago.

Analysts, who have been trimming their estimates in recent weeks, expected break-even results.

CEO Jamie Dimon calls the results "very disappointing."

Viewed as one of the stronger U.S. banks for several quarters now, JPMorgan Chase & Co. is in the midst of absorbing the two weaker banks it bought last year: Bear Stearns and Washington Mutual.

U.S. airline Mesa Air Group

Struggling U.S. airline Mesa Air Group (MESA.O) on Tuesday said US Airways Group (LCC.N) plans to reduce the number of aircraft it pays Mesa to fly regionally.The carrier said the flight cuts, which are planned for January, July and next January, could continue, putting new strain on the company.

Mesa said that US Airways said it would eliminate three CRJ-200 flights by next year."We anticipate US Airways will continue to further reduce the number of covered aircraft in accordance with the agreement," the company said in a regulatory filing.Mesa said that as of September 30, it operated 38 CRJ-900, 11 CRJ-200, and 6 Dash-8 aircraft for US Airways under a code-share agreement.

Mesa, which provides regional service for US Airways, Delta Air Lines (DAL.N) and other carriers has been looking to shore up its finances for months as it tries to ride out volatile fuel prices and a drop in travel demand.

Mesa said on Monday it received a letter from Nasdaq warning the company its stock is subject to delisting because Mesa was not in compliance with some listing requirements.Mesa shares were down 10 percent at 26 cents in afternoon trade on the Nasdaq.

Alitalia airline seeks bankruptcy protection

Alitalia said Friday it has sought bankruptcy protection, taking the first step in a plan to reshape Italy’s debt-laden national carrier.

The company said in a statement that its board had asked the government to appoint an administrator and had declared insolvency to a Rome court.

Alitalia has been losing $3 million a day — hurt by labor unrest, competition from budget airlines and high fuel prices. Its shares have been suspended from trading since June.

The airline said its net debt at the end of July amounted to $1.73 billion. The figure does not include a $442 million loan that the government made in April to keep the cash-strapped carrier flying.

The government has been secretive about efforts to save the carrier, but the plan reportedly calls for the breakup of Alitalia into two parts. The profitable assets would be taken over by Italian investors ready to inject $1.5 billion into the airline. The other assets would be spun off into a separate company for liquidation

Qatar Airways eyes more service in US, South America and Australia

A Qatar Airways executive said Tuesday the carrier will look to expand further in the Americas and Australia as part of a long-term growth plan.

The Middle Eastern carrier began U.S. service with flights to Washington last year from its base in Qatar's capital city of Doha. The carrier also added flights to New York. But a plan to expand to Houston stalled after deliveries of long-range Boeing-777 aircraft were delayed because of a machinists strike at Boeing. The airline now expects to launch that route in March.

Executive Vice President Ali M. Al Rais told a press luncheon Tuesday he sees future growth in the North American market, but did not specify which cities the carrier is eyeing next. He also said the carrier is looking to add service to South America and Australia -- two continents where it does not currently fly.

Qatar currently has 64 aircraft, only 4 of which are Boeing 777s. The rest are made by Airbus. It has 168 Boeing aircraft on order, and 13 Airbus. The jets on order are worth about $40 billion.
The carrier said it hopes to grow its fleet eventually to 120 to 150 jets, with an average fleet age of about 3 to 3.5 years.

Al Rais said the company will "visualize and adjust" its growth plan according to global economic conditions.

But he shrugged off suggestions that the carrier might be affected by the slowing global economy.

"There is a bit of uncertainty in the global economy," Al Rais said. But there had been an "overheating taking place over the last few years. We knew it had to burst, it had to stop."

Investing Activities for Kids

Are you convinced that your kids should start investing? Or that you should be investing for them?

Or maybe you're considering quietly parking some money in a few stocks or a mutual fund and then forgetting about it. Think again. You can use this opportunity to help your kids learn about investing and the stock market.

Can you really get your kids interested in this stuff? You bet. Most kids are interested in money and in how they can position themselves to get more of it. That serves as a good initial motivation, and once they get their feet wet, they're quite likely to discover that they enjoy it. But before plunking your kids' allowance into stocks, it's a very good idea to play and experiment with investing. Here are some activities you and your kids can do together.

Build a mock portfolio. Have your kids make a list of the companies that interest them most. They can get ideas by looking in their closets, in their classrooms, in the mall, on TV, etc. Look at companies your kids know, such as Disney (NYSE: DIS), McDonald's (NYSE: MCD), Coca-Cola (NYSE: KO), and Abercrombie & Fitch (NYSE: ANF), for example. Write down the names of 10 to 20 interesting companies, then record the current stock price of each. Every day, week, or month you can check the prices together, see how the stocks are doing, and record the latest prices. Foolish investors focus on long-term performance, so day-to-day or month-to-month stock price movements aren't terribly important to us, but it can still be very interesting to see how stock prices move.

Follow your stocks together. Along with updating the prices periodically, you can scan newspapers, magazines, Fool.com, and other websites for stories about your companies. Is McDonald's promoting $0.75 burgers? Will this help the company by bringing in more sales, or will it hurt by decreasing the total profit? And how did the stock market react when it heard of this announcement? Did the stock go up or down?

Do some math as you follow your stocks. Pretend that you bought 10 shares of a company's stock. How much did it cost you? (You can include broker commission costs, if you want to be more precise.) What are the shares worth now, a few months later? How much money have you made? What return percentage is that? (Hint: Here's one way to figure the percentage. If the stock went from $50 to $60 per share, take 60 and divide by 50. You'll get 1.20. Subtract 1 (always 1) and you get 0.20. Multiply by 100 and you get 20. The answer is 20%.) Following stocks is great way to develop basic math skills.

Consider school subjects other than math as you explore stocks. Investing can relate to most subjects in school and can give kids a bit of a new perspective on their studies. There's obviously math involved, since they multiply share prices by how many shares they want to buy and perform other calculations with numbers from annual reports. There's history, too, as they examine how venerable companies like AT&T (NYSE: T) or Ford (NYSE: F) got to where they are now. Science? Sure -- knowing or learning a little science is important when you try to understand what some of today's technology and health care companies are doing. English? Well, there's a bit of reading involved in researching stocks, and it's always a good idea to write out exactly why you are buying a particular stock and why the company seems so promising.

Start actually investing. Once you've become comfortable with the idea of investing in stocks, it's time to consider buying some shares. Likewise, your child(ren) might also want to begin. How can a young person actually do so? There are a number of ways. Of course, you can open a joint brokerage account, with you acting as custodian, but you don't have to go this far. You can informally "sell" some of your own shares to your child.

For example, if you're about to buy 100 shares of ExxonMobil (NYSE: XOM) and your child wants to buy a share or two herself, you can just place the order together -- and order 101 or 102 shares through your broker. You don't have to buy round numbers of shares -- "odd lots" are okay. If you do these things, you'll want to keep a good record of which shares belong to whom. Once your child turns 18, she can open her own account at a brokerage and you can transfer her shares to it.

There's a lot more to investing, of course, and a lot more that you can do with kids to explore the stock market together. The learning process should prove rewarding -- and fun -- to both parent and child alike.

Oil falls below $37

Oil prices fell below $37 a barrel Tuesday in Asia on expectations crude demand will weaken amid a severe global economic slowdown.

Light, sweet crude for February delivery was down 92 cents at $36.67 a barrel by afternoon in Singapore in electronic trading on the New York Mercantile Exchange

Crude prices have fallen more than 25 percent since reaching just above $50 a barrel last week as traders returned from the holiday break to find evidence of falling manufacturing and consumer spending across the globe.

The February contract fell 8 percent on Monday, or $3.24, to settle at $37.59 after Alcoa Inc., the world's third-largest aluminum company, reported a quarterly loss of $1.19 billion.
Alcoa, the first component of the Dow Jones industrial average to post results, said last week it plans to lay off about 13 percent of its global work force by the end of 2009 amid sinking prices and demand for the metal.

The Dow fell 1.5 percent Monday and has dropped 3.5 percent this year.

"The negative sentiment we're seeing reflects the broad international macroeconomic outlook, which is considerably weaker, and what that means for energy consumption," said David Moore, commodity strategist at Commonwealth Bank of Australia in Sydney.

Prices have fallen despite continued fighting between Israel and Hamas in Gaza. Israeli troops advanced into Gaza suburbs for the first time Tuesday, after Prime Minister Ehud Olmert warned Islamic militants of an "iron fist" unless they agree to Israel's terms to end the fighting. About 900 Palestinians and 13 Israelis have died since the conflict started on Dec. 27.

After initially spurring a jump in oil prices, the Gaza conflict has been largely ignored by traders because it hasn't affected major supplies and no oil-rich Middle East neighbors have become directly involved.

"The impact on oil supply is obviously limited," Moore said.

Prices of futures contracts for later this year are higher than the February contract on investor expectations that announced production cuts of 4.2 million barrels a day since September by the Organization of Petroleum Exporting Countries will begin to reduce global supply.
The June contract trades at $50.40 a barrel.

"There's some wariness that the OPEC actions may cause markets to tighten up," said Moore, who expects oil to average $55 a barrel this year.

Investors are also looking for signs that demand from emerging markets, which helped drive oil's rise to $147.27 a barrel in July, will rebound.

"Growth concerns will dominate for the next few months," said Robert Prior-Wandesforde, co-head of Asian economic research at HSBC in Singapore. "Commodity prices will start to improve as sentiment about China and India starts to turn later this year."

In other Nymex trading, gasoline futures fell 0.41 cent to $1.08 a gallon. Heating oil dropped 0.24 cent to $1.47 a gallon while natural gas for February delivery slid 1.4 cents to $5.53 per 1,000 cubic feet.

GM

General Motors Corp. turned its opening news conference at the Detroit auto show into a pep rally touting the health of the company and its products, unveiling plans Sunday to build a 40-mile-per-gallon minicar for the U.S. market and a Cadillac concept car powered by electricity like the Chevrolet Volt

The Chevrolet Spark subcompact was called the Beat when GM unveiled the front-wheel-drive three-door hatchback as a concept car in 2007, powered by a 1.2-liter turbocharged gasoline engine. It's about the size of a Honda Fit or Toyota Yaris and is set to go on sale in Europe next year and in the U.S. in 2011.

GM also announced that the Chevrolet Orlando seven-passenger crossover vehicle will go on sale in North America in 2011.

The company ended its showcase of 17 new and upcoming vehicles at the North American International Auto Show with a surprise: the Cadillac Converj concept car, which is designed to go 40 miles on electric power alone after being recharged from a standard wall outlet. A small gasoline engine would extend the range to hundreds of miles.

It's the same powertrain technology GM is using in the Chevrolet Volt, a much-anticipated extended range vehicle that is set to go on sale next year.

Several hundred GM employees, dealers and retirees gathered inside the convention center for the unveilings, cheering and waving signs that said "Here to Stay" as they flanked the vehicles driving through the show floor.

GM Chief Executive Rick Wagoner told the crowd the vehicles are smaller, smarter and more fuel efficient, with "enough towing capacity" to pull GM out of its current troubles.

The government granted the struggling automaker $13.4 billion in federal loans in December so the company could stay in business, and GM wants to show off innovations to demonstrate to people that the loans were a good investment.

"We've made tremendous progress in the past several years of making cars and trucks that consumers really want to buy," Wagoner said.

GM also is showing off new versions of the Buick LaCrosse sedan, and the Chevrolet Equinox and Cadillac SRX crossover SUVs at the show. Those new 2010 models are set to go on sale later this year.

Yahoo!

Yahoo! is getting closer to picking a new chief executive to replace Jerry Yang and investors are abuzz about who might be on top. While two names are riding the rumor circuit, Yahoo! might need something that neither of the named candidates has: youth.

On Friday speculation began circulating about possible CEO picks after a report said the Internet company narrowed its search to Carol Bartz, the current chairwoman of Autodesk (nasdaq: ADSK ), Susan Decker, Yahoo! (nasdaq: YHOO )’s president, and one other candidate.

Yahoo! is expected to make a decision before its earnings report on Jan. 27. Yahoo’s shares rose 0.5% to $13.13, at the close on Friday.

Global Equities Research analyst Trip Chowdhry said that the ideal candidate is neither Bratz nor Decker, but a 25 to 30 year-old Steve-Jobs-like-wunderkind who is brash and product savvy. The problem with Yahoo! he said is products, technology, and motivation, and the new leader will have to be able to deal with all three. “If Bartz becomes CEO, investors should run the other way,” said Chowdhry.

“Autodesk is a prehistoric company when it comes to technology. We want someone who can cut through the generation gap and who can take the company to the next level.”

Chowdhry doesn’t see an outside candidate taking the reins of Yahoo! and said that any internal promotion would probably come from the engineering ranks. “If someone is super bright Yahoo! is not going to be their first choice, it’s not going to be their second choice and it’s not going to be their third choice,” said Chowdhry. “I haven’t seen any person externally who can change the fortunes of Yahoo!”

Chowdhry isn’t happy with Decker as a pick either. “She oversaw three failed CEO’s and under her leadership the stock has gone down more than 80.0%,” he said.

Fool Awards

Talk about a tough Fool Awards category. Coming up with candidates for the biggest opportunity of 2008 isn't easy when it felt like the only opportunity investors had was to lose money.
But throughout the year, we've looked for silver linings in the bear market. And while the vast majority of stocks fell in 2008, there were a few bright spots. So, without further ado, here are five nominees for your voting pleasure.

Discount retailers For companies that offer low-cost alternatives on necessities like food and clothing, a struggling economy is actually a good thing. Discounters like McDonald's (NYSE: MCD), Wal-Mart (NYSE: WMT), and Family Dollar (NYSE: FDO) all posted gains in a losing market thanks to a growing base of budget-conscious customers. Investors who foresaw the recession got a nice reward.

Short selling After years of taking it in the shorts, short-sellers finally got their revenge in 2008. Popular bear-market ETFs delivered amazing returns as stock markets tanked. And for those who bet against stocks like Sirius XM (Nasdaq: SIRI) and General Motors (NYSE: GM), the profits were especially sweet.

Cash With interest rates at historic lows during much of the decade, cash got a reputation for being a waste of investment capital. Not so during 2008, though, as the credit crunch made having money on hand attractive again. While liquidity-starved companies suffered to raise capital, cash-rich giants like Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) swooped in to pick up assets on the cheap.

Tax-loss selling No one ever said losing money was fun. But at least it'll give you a break on your tax return come April. Yes, in portfolios full of red ink, the best many investors could do to salvage something amid the carnage was to sell and grab valuable capital losses to offset past gains and other income.

Stocks Wait a minute -- stocks did terribly in 2008! Yes, but for those still looking to buy stocks both now and in the future, lower share prices meant more bargains for value-conscious investors. Although you may not see quick gains on shares you bought last year, cheap stocks may prove to be the most valuable long-term opportunity you could find in 2008.

Profit in 2009

If, after 2008, you're still

looking at the stock market as a way to fund your retirement, most people probably consider you a few congressmen short of a bailout. (Zing!) It's probably progressed far beyond the point of people refusing to make eye contact with you. In all likelihood, your dog is, too.

Yes, it's tough proclaiming yourself a bull after a year in which every bull became a steer.
But there are a few perks. Like getting the profits that come from buying stocks at what could be some of the best prices you'll ever see.

A brief history of 2008 Last year was a fantastic demonstration of what happens when, in a highly leveraged world, everyone needs liquidity at the same time.

Anyone who borrowed to buy mortgage-backed securities needed cash as mortgage values plummeted. Ambac (NYSE: ABK) and the other bond insurers needed cash as the mortgage-backed securities they were guaranteeing fell. Banks needed cash to maintain their capital ratios as defaults escalated. AIG (NYSE: AIG) needed cash to balance its losses in credit default swaps. Hedge funds needed cash to fund redemptions and reduce leverage as assets declined.

The problem is, when everyone needs cash, the only way to get it is to sell off assets. And that's what investors did, dumping almost every asset class with the exception of ultra-safe Treasuries. The stock market took it on the chin.

An overreaction That's not to say that the market collapsed simply because everyone cashed out. The problems in our economy are real. We've seen huge bankruptcies, the unemployment rate has spiked to almost 7%, and consumer confidence is low. Companies that need cash are finding it tough raising money at reasonable costs.

But the carnage in the market isn't limited to the shaky companies that are likely to suffer the most. The S&P 500 contains the biggest, most successful, and most stable businesses in America. Yet more than 94% of the companies in the S&P 500 fell during 2008. Over 30% lost more than half their value! Certainly, deteriorating business prospects are responsible for some of that drop. But based on valuations, it seems likely that stock investors are selling because they must. Like everyone else, they need the cash.

And that's a really great thing if you're not one of Wall Street's forced sellers.
The sweet spot Large-cap value stocks could be the best way to exploit this opportunity. I'm not just talking about slow-growing companies trading at low single-digit earnings multiples, but also compellingly cheap growth stocks.

For instance, these days, the universe of large-cap value stocks includes Google (Nasdaq: GOOG). Google has huge barriers to competition, $14 billion of cash on its balance sheet, an innovative culture, a 21% estimated annual growth rate going forward, and is trading for about 19 times earnings. At these prices, Google is a large-cap value stock.

So why are large-cap value stocks a great investment these days? Not because these stocks are certain to outperform the other categories under all circumstances, but because they present the ideal trade-off between risk and reward in these troubling times.

While there's a good chance that the economy will start showing signs of life sometime in 2009, there's a possibility that things will get even worse. When you're betting your retirement, you should own businesses that can survive the worst-case scenario.

Low risk, high reward Generally, large-cap stocks fit that criterion. They have the most stable cash flows, the most well known brands, the greatest economies of scale, and the best chance of recovering from mistakes.

Would you put your money on McDonald's (NYSE: MCD) to withstand a depression, or Krispy Kreme (NYSE: KKD)? Would you bet on Wal-Mart (NYSE: WMT), or Dillard's (NYSE: DDS)? These two examples may be somewhat hyperbolic, but it's absolutely true that powerhouses like McDonald's and Wal-Mart are far more likely to survive than companies with smaller moats because they have the financial clout, the economies of scale, and the proven, winning business models.

In normal times, you'd really have to pay up for these sorts of dominant companies. But thanks to forced selling from investors struggling to raise cash, right now you can buy some excellent businesses extremely cheaply. The S&P 500 is trading at just over 12 times 2009 earnings estimates, its lowest earnings multiple since the 1980s. What's more, due to the poor economy, the earnings of these powerhouse companies will be depressed in 2009, which means that the normalized earnings multiple is even more compelling. Large-cap stocks are extremely cheap, and I believe will offer superior returns over the next few years.

The Foolish bottom line Of course, you still have to be careful -- as 2008 has shown us, you can't just throw a dart at the S&P 500 and expect to avoid a blow-up. You still need to pay attention to balance sheets and how much cash companies are bringing in during these troubling times.

Airlines Best Fares

Just about every air-travel trend is getting worse, driven largely by soaring jet-fuel prices. To save money, strapped carriers are adding every surcharge they can get away with, raising fares, eliminating perks, and cutting back flights.

That means air travel is going to get more stressful than ever. Most flights will be full, with crammed overhead bins and no chance for a better seat. Delays have hit record levels recently and will probably get worse. And there will be less margin for error, so a problem with one flight could quickly cascade to others.

Frequent fliers who spend a lot on air tickets, of course, get the best seats and other preferential treatment--and often know the best tricks for traveling smoothly. The rest of the flying public has less recourse. But there are a few things you can do to reduce the odds of a middle seat, a lost bag, a surprise surcharge, or a nightmare trip:

Book directly with the airline. Use websites like Orbitz, Travelocity, and Expedia to research flights, but once you've found the one you want, book through the airline's website or a live agent. That's often where you'll find the best fare and have the best chance of getting an aisle or window seat. And if something goes wrong, the airline is more likely to help if you originally made the reservation through it.

Use every automated service available. Airlines have replaced many of their live agents with online services and machines at the airport--one trend that actually benefits travelers. Fliers with no bags to check can avoid lines by printing their boarding pass either at the airline's website up to 24 hours in advance or at an airport kiosk. This is also a chance to check whether a better seat is available. The sooner you check in, the better--all your fellow travelers are doing the same thing, and if any choice seats are still left, they'll go to whoever claims them first.

Pack light--really light. Most airlines allow one checked bag at no extra charge but now tack on $25 for a second checked bag. That's meant to bring in a bit of extra revenue--but also to encourage passengers to pack less, to help cut down on the weight in the plane and reduce fuel use. Some fliers try to skirt the surcharge by packing two bags' worth of stuff into one huge suitcase. Bad idea--many airlines also charge $100 for an overweight bag.

Then there are fliers who stuff a week's worth of gear into an oversize carry-on. That can backfire, too. On full flights, the overhead bins are often full before half the passengers have even boarded, and that bulging duffel won't fit under a seat, either. That means it will end up getting checked, costing you--and those around you--lots of added inconvenience.

Better to underpack and pick up spare socks or underwear at your destination if you really need them. If you're transporting gifts or anything that can be shipped by mail or UPS, do that ahead of time. It'll cost less than that $100 surcharge.

Fly off-off-peak. A red-eye or crack-of-dawn departure might cost you some sleep--but buy you some comfort. The only flights these days with any chance of a light load are those at the start or end of the day, when airlines are often moving planes into position for a long shift of full-capacity hauling.

Consider paying for a more comfortable seat. Some airlines now charge an extra $15 or $20 for exit-row seats or other spots in coach that tend to have a bit more legroom or are closer to the front of the plane. Get over the outrage, and pay up. "It's not such a terrible amount to pay to be comfortable," says David Stempler, president of the Air Travelers Association. Paying the extra fee might also entitle you to board before the rest of the horde, ensuring an overhead spot for your bag and less jostling.

Look into the government's Registered Traveler program. Fliers who enroll in this new program agree to supply personal info and submit to a background check, in exchange for an ID that allows them to pass through expedited security lines at the airport. Road warriors who have VIP status with their airline often get access to express security lines, anyway, and wouldn't need it. And so far, just a few airports and carriers participate, so it makes sense only for certain travelers. But this program is likely to grow quickly, and for people who travel once or twice per month, the cost--about $100 upfront, plus a $28 annual fee--might seem quite reasonable if it takes one long line out of the usual airport experience.

Be a low-maintenance traveler. Flights go more smoothly for people who do what they're supposed to. Check the Transportation Security Administration's website before your trip for the latest baggage rules. Use a regulation-size carry-on. Pack snacks. Most important, with so many things that can go wrong, arrive early, and have a backup plan. "Time is your friend," says Stempler. "Getting there late only puts you at a disadvantage." And no traveler wants to start a flight like that.

Microsoft and News Corp Bid for Yahoo

Yahoo and AOL are reportedly on the verge of announcing a surprise merger plan, as part of a brilliant Yahoo counter-attack. And now Andrew Ross Sorkin and Miguel Helft of the NYT report that Microsoft and News Corp (NWS) are in talks to make a joint bid for Yahoo:

Rupert Murdoch’s News Corporation (NWS) is in talks with Microsoft (MSFT) about joining in its contested bid for Yahoo, according to people involved in the discussions. The pairing, which would combine Yahoo (YHOO), Microsoft’s MSN and News Corporation’s MySpace, would create a behemoth that would upend the Internet landscape.

If News Corporation throws its weight behind Microsoft’s offer, it could allow Microsoft to raise its bid, putting even more pressure on Yahoo and its shareholders. At the same time, the alignment of Microsoft and News Corporation would remove a possible alternative for Yahoo, leaving it with fewer opportunities to escape Microsoft’s grasp.

The talks between Microsoft and News Corporation are at a sensitive stage, people involved in the discussions said. “There’s a long way to go before anything is definite,” one person involved in the talks said.

Would this combination make sense? Sure it would make sense. Owning MySpace standalone isn't doing Rupert any good--he's getting his clock cleaned by Facebook. MSN's dead in the water. But throw all that together with Yahoo and you could build a pretty honkinging global communications, social networking, and advertising platform.

Rupert's got some cash, too, which means that the two might be able to pay more without infuriating their own shareholders bases.

In any event, at this point, you gotta believe Yahoo's stock is going up.

Don't Miss

AOL and Yahoo May Announce Merger Next Week

American Airlines Cancels Flights

Business trips and vacations were disrupted for tens of thousands of travelers Wednesday as American Airlines canceled more than 1,000 flights -- nearly half its schedule -- to fix faulty wiring that could cause a short-circuit or even a fire and explosion.

Executives at American said safety was never compromised, and they suggested the nation's biggest airline was the victim of suddenly stepped-up scrutiny by federal regulators.

American estimated that more than 100,000 travelers were booked on the canceled flights. Many had to scramble to book new flights and were stranded at hotels far from home.

The airline had already scrubbed 460 flights on Tuesday after federal inspectors found problems with wiring work done two weeks ago, during the first set of shutdowns.

A top executive said the cancellations would be a "significant" cost to American, and shares of parent AMR Corp. fell 11.1 percent, down $1.15 to $9.17.

The issue stems from an order that the Federal Aviation Administration gave airlines in September 2006 -- and gave airlines until last month to meet -- about the bundling of wires in the backup power system for the fuel pump of the MD-80 airplanes. The fear is that improperly bundled wires could rub, leading to an electrical short or even fire. However, no serious incidents have been blamed on the bundles, the FAA said.

American officials thought they had fixed the problem last month. But this week, FAA inspectors found problems with the work done on more than a dozen planes. American said it had no choice but to ground all 300 of its MD-80s to deal with the wiring bundles.

American operates about 2,200 daily flights, more than one-third with MD-80s. Nearly half the cancellations were concentrated at two airports, in Dallas and Chicago.

At New York's LaGuardia Airport on Wednesday, hundreds of passengers stood in check-in lines or milled about, using cell phones to get updates on their flights. The airline offered free doughnuts, coffee and orange juice, but there were few takers.

"They should be able to predict these kinds of things," said Laura Goodman, whose flight home to Dallas was canceled. She said would miss an important meeting because the airline couldn't rebook her until Thursday.

New Yorker Michelle Soss had hoped to steal a few days in Albuquerque, N.M.

"I covered my kids' schedules, I covered my work schedule to get away for a few days," she said. "I don't know if I'm getting anywhere."

American's cancellations came after similar delays at Southwest, Delta and United. Last week, hundreds of travelers were marooned when Aloha Airlines and ATA Airlines shut down and filed for bankruptcy protection.

Alaska Airlines said Wednesday it canceled 14 flights to inspect the wiring on its nine MD-80s.

For travelers, the bad news might not be over. Daniel Garton, American's executive vice president, said flights would be canceled Thursday -- he said it was too early to say how many -- and possibly on Friday, too.

A return to normal operations depends on how quickly mechanics can inspect and fix the wire bundles. As of Wednesday morning, only 30 MD-80s had been cleared to fly by the FAA.

Garton acknowledged that the bundling of wires had not met FAA standards, but he said "these were not huge errors" and posed no threat to safety. He said the agency used to give airlines "latitude" in interpreting safety regulations, but no longer.

The FAA began looking more closely at airlines' compliance with safety directives in recent weeks, after it was criticized for letting Southwest operate planes that had missed inspections for cracked fuselages.

In the past few weeks, the FAA levied a $10.2 million penalty against Southwest and conducted new inspections at all U.S. airlines, leading to flight cancellations at Southwest, Delta and United.

FAA spokeswoman Diane Spitaliere said inspectors found problems with the wiring bundles at 15 of 19 American MD-80s that it checked this week.

The 2006 safety order from the FAA directs airlines in how to pack and stow wiring to a hydraulic pump in the wheel well to prevent the wires from rubbing together.

According to the FAA, shorted wires could ignite fuel vapors and cause a fuel-tank explosion that could destroy a plane.

The explosion of TWA Flight 800 off New York's Long Island that killed all 230 people aboard in July 1996 was blamed on fuel vapors ignited by wiring. But it was a Boeing 747, not an MD-80, and investigators believe the disaster involved different wiring from the bundles now under scrutiny.

Brian Stirm, an aircraft-maintenance expert at Purdue University, said airlines had plenty of time for the inspections and that even an untrained mechanic could spot a problem.

The cancellations could hardly come at a worse time for American. Its parent, AMR Corp., is scheduled to report first-quarter earnings in two weeks, and analysts are forecasting a loss of more than $300 million. High fuel prices and the downturn in the economy are hurting the industry.

American officials said the company would give $500 travel vouchers to anyone stranded overnight. It also paid for hotel rooms and meals for an undisclosed number of passengers.

Bob McAdoo, an airline analyst, said passengers might soon forget the debacle, especially since several other major airlines have canceled flights recently. But he said passengers who missed big events like weddings might avoid American again.

Kathy Neer of Santa Fe, N.M., was caught up in both waves of cancellations to and from a vacation in Paris. She and her husband were stranded in Dallas on Tuesday on the final leg of their journey home. American gave the Neers a voucher for a hotel room and seats on another flight home Wednesday.

"They say our flight is leaving at 3:55 p.m., but do you think we trust them?" Neer said. "After being burned twice, we're a little skeptical."

Hewehi Market Updates

The major indices are holding near their best levels of the session. Financials (+1.9%) led the recent buying interest, taking the leadership spot from the energy sector (+1.5%).

Market breadth leans bullish. Advancers outpace decliners by more than 2-to-1 on the NYSE and by 4-to-3 on the Nasdaq. New 52-week highs outpace new lows by 61-to-1 on the NYSE, and are even on the Nasdaq. Volume is on the light side.DJ30 +93.30 NASDAQ +14.61 SP500 +12.43 NASDAQ Dec/Adv/Vol 1180/1616/802 mln NYSE Dec/Adv/Vol 951/2097/530 mln

The stock market has maintained last week’s bullish bias. At midday, the stock market is posting a substantial gain, with all ten economic sectors in positive territory. Market moving news has been relatively slow this session, with only one economic report set for release later in the afternoon, and no earnings reports.

Shares of Washington Mutual (WM 23.99, +2.44) have soared 24% on reports that it is close to a deal that will supply the struggling company with $5 billion in capital. The Wall Street Journal reports the deal will be funded by private-equity firm TPG and other investors.

Meanwhile, UBS (UBS 35.29, +1.64) is posting a healthy gain after being upgraded to Buy from Neutral at Merrill Lynch.

As a result, the financials sector has climbed 1.7%, and is providing leadership.

Microsoft (MSFT 29.27, +0.11) sent Yahoo! (YHOO 27.81, -0.55) a letter, warning that if Yahoo does not accept its Jan. 31 $44.6 billion offer, Microsoft will take its offer hostile by going directly to shareholders, according to reports. Yahoo responded that it is open to a deal with Microsoft, but feels the current offer undervalues the company.

In other deal news, Novartis (NVS 50.82, -1.30) is paying $11 billion to acquire a 25% stake in Alcon (ACL 153.61, +5.17) from Nestle.

Crude oil has rallied 2.9% to $109.25 per barrel. There does not appear to be a specific catalyst for the gains. As a result, the energy sector (+1.7%) has been a standout.
DJ30 +86.87 NASDAQ +13.81 SP500 +11.96 NASDAQ Dec/Adv/Vol 1138/1641/710 mln NYSE Dec/Adv/Vol 914/2095/471 mln

The stock market is trying to recover back to its session highs. The recent gains have been broad-based, with all ten economic sectors making it back to positive territory. Treasuries are facing some selling interest, with the 10-year note shedding 24 ticks.DJ30 +68.55 NASDAQ +10.16 SP500 +9.25 NASDAQ Dec/Adv/Vol 1140/1608/601 mln NYSE Dec/Adv/Vol 927/2046/396 mln

The Nasdaq fell to the unchanged mark, but has since recovered a bit as it posts a modest gain. All sectors have slipped off their best levels. Materials is now up only 0.8%, after being up as much as 1.9%. It remains the only sector in positive territory year-to-date, with a 3.7% advance.DJ30 +47.17 NASDAQ +8.46 SP500 +7.75 NASDAQ Dec/Adv/Vol 1167/1555/505 mln NYSE Dec/Adv/Vol 921/2005/328 mln

The major indices continue to post a gain, but are off their best levels of the morning. Four of the ten economic sectors are in negative territory, although their losses are modest.

The stock market is now up 9.6% from its 52-week low that was reached on March 17, with financials rebounding 17.8%.DJ30 +34.36 NASDAQ +7.02 SP500 +6.55 NASDAQ Dec/Adv/Vol 1190/1409/364 mln NYSE Dec/Adv/Vol 954/1903/235 mln

After dipping a bit, the major indices are trading near their opening highs. Washington Mutual (WM 11.95, +1.78) is spiking 17.5% on the capital infusion report.

The energy sector (+1.7%) is showing strength as crude rallies 2.1% to $108.45 per barrel. There is not a specific catalyst for the gain in crude oil prices. The materials sector (+1.8%) is providing leadership, as the fertilizer & agricultural chemicals group extends its rally.

Defensive oriented utilities (-0.2%), consumer staples (flat) and healthcare (+0.2%) are underperforming on a relative basis.

This session's economic calendar is light, with only the February consumer credit report at 15:00 ET.DJ30 +56.18 NASDAQ +13.14 SP500 +8.26 NASDAQ Dec/Adv/Vol 937/1516/229 mln NYSE Dec/Adv/Vol 780/2002/159 mln

The major indices open on a high note. Financials (+0.9%) are outperforming after the Wall Street Journal reported Washington Mutual (WM) is close to getting a $5 billion capital infusion from a private equity group and other investors.

Also topping headlines, is news that Microsoft (MSFT) sent Yahoo! (YHOO) a letter that stated Yahoo has three weeks to accept Microsoft's offer. Yahoo responded it is not against a deal with Microsoft, but the current offer is not in the best interest for Yahoo's shareholders.

DJ30 +43.90 NASDAQ +9.97 SP500 +6.91

S&P futures vs fair value: +9.7. Nasdaq futures vs fair value: +6.2.

S&P futures vs fair value: +9.4. Nasdaq futures vs fair value: +6.0.

S&P futures vs fair value: +11.9. Nasdaq futures vs fair value: +10.8. Current indications suggest a positive start to trading. In commodity trading, crude oil is up 1.1% to $107.38 per barrel. Gold is up 0.7% to $915.40 per ounce.

S&P futures vs fair value: +11.3. Nasdaq futures vs fair value: +10.3. Futures suggest a higher open to the trading day. Washington Mutual (WM) is close to completing a deal to get a $5 billion capital infusion from private-equity firm TPG and other investors, according to the Wall Street Journal. Microsoft (MSFT) has threatened a hostile takeover of Yahoo!(YHOO), if Yahoo does not agree to a merger within the next three weeks, according to the Wall Street Journal. Yahoo responded that it is not opposed to a deal with Microsoft, but feels the current offer undervalues Yahoo. In other deal news, pharmaceutical company Novartis AG (NVS) is buying a 25% stake in eye-care product maker Alcon (ACL), and may purchase another 52%.

06:13 am : S&P futures vs fair value: +12.0. Nasdaq futures vs fair value: +12.0.

06:13 am : FTSE...5990.30...+43.20...+0.7%. DAX...6826.34...+62.34...+0.9%.

06:13 am : Nikkei...13450.23...+157.01...+1.2%. Hang Seng...24578.76...+314.13...+1.3%.

Stocks Head to Higher Open

Stocks were poised to open higher Monday after several reports of potential corporate deals, including speculation Washington Mutual Inc. will get a $5 billion investment from private equity firms.

The nation's largest thrift is in talks with buyout shop TPG Inc. about a possible capital injection, according to The Wall Street Journal. The company, which has suffered big losses tied to subprime mortgages, would become the latest U.S. financial institution to reach such a deal.

In addition, Microsoft Corp. gave Yahoo Inc. a three week deadline to agree to a takeover, or Microsoft would launch a proxy fight for control of the company. Yahoo said Monday the deal isn't in the best interests of its shareholders, and called the proxy threat counterproductive.

And Swiss pharmaceutical maker Novartis AG said it will spend about $38 billion in a two-step bid for a majority stake in U.S. eye-care company Alcon Inc.

Earnings season unofficially begins after the closing bell when Alcoa Inc., the world's third-largest aluminum producer, is scheduled to release first-quarter results.

Dow Jones industrial average futures rose 69, or 0.70 percent, to 12,679. Standard & Poor's 500 index futures advanced 11.90, or 0.87 percent, to 1,383.80. Nasdaq 100 index futures rose 15.75, or 0.84 percent, to 1,885.50.

Bond prices fell. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.52 percent from 3.47 percent late Wednesday.

Light, sweet crude rose $1.16 to $107.39 in premarket electronic trading on the New York Mercantile Exchange. Gold was higher, and the dollar was mixed against other major currencies.

There were no major economic reports scheduled to be released during the session.

Overseas, Japan's Nikkei stock average rose 1.18 percent. Britain's FTSE 100 added 0.95 percent, Germany's DAX index rose 0.32 percent, and France's CAC-40 added 1.13 percent.

investors Await 1Q Earnings

The fear of the unknown that has rattled the stock market for months appears to be fading. The question now is whether upcoming corporate financial reports and readings on the housing market will further calm Wall Street's anxieties or rekindle them.

Stocks rose early last week and, despite data showing that U.S. employers are eliminating more jobs than they have in five years, held onto their gains. There was a palpable relief that some banks such as Merrill Lynch & Co. feel they have enough cash, while others in need of capital -- namely Lehman Brothers Holdings Inc. and Switzerland's UBS AG -- are able to sell stock to raise cash.

Now that JPMorgan Chase & Co. has offered to buy Bear Stearns Cos. and the Federal Reserve has lent hundreds of billions of dollars to banks, investors are more confident that the financial system can bounce back from what looked last month like a worst-case scenario: a big bank on the brink of collapse.

Wall Street knows other problems could arise, but at this point the overriding sentiment is that troubles down the road won't pull the whole market and economy down with them.

"There's been so much talk of recession for so long now. If anything, I get the sense that people are looking to get back in," said Brian Gendreau, investment strategist for ING Investment Management. But they're apprehensive, he added. "There's bad economic news still coming in. It takes some pretty steely nerves."

The Dow Jones industrial average finished last week up 3.22 percent, the Standard & Poor's 500 index rose 4.86 percent, and the Nasdaq composite index ended up 4.20 percent.

The stock market's recovery was aided by selling exhaustion among big investors. Although it's impossible to predict the market's direction, it's likely that stocks are going to be driven less by investors' need to cash out, and more by the fundamentals underlying each stock. Those fundamentals will be determined mostly by profit reports.

Alcoa Inc. on Monday reports first-quarter results, and analysts, on average, predict the aluminum company's earnings per share fell 36 percent from where they were last year. Another Dow component, General Electric Co., reports on Friday, and the average analyst estimate is for a 16 percent gain in per-share earnings.

The big headliners, however, are likely to be next week's bank earnings.

Last week, the various banks traded more divergently from one another than they have in months, indicating that there is less fear about the sector as a whole. This is not to say the battered financial sector's troubles are over. Rather, there are winners and losers emerging, and market participants know that buying the winners now could bring huge returns in the months and years to come.

Meanwhile, the Fed on Tuesday is scheduled to release minutes from its March 18 meeting, when it lowered the key interest rate to 2.25 percent. Though the minutes will be regarded to some extent as old news -- they precede the Bear Stearns buyout -- investors will want to see evidence that the Fed remains ready to come to the financial system's rescue if the credit markets deteriorate further.

It's certainly possible the credit markets, though they've loosened up over the past week, could seize up again. The reason is the housing market is anticipated to take at least another year to recover. On Tuesday, economists expect the National Association of Realtors to report that pending sales of homes in February were only slightly higher than in January -- which saw the second-lowest reading on record.

"The core, the kernel, of the credit problems are mortgages," said Quincy Krosby, chief investment strategist at The Hartford. She said defaults in Alt-A mortgages may spike higher since they became popular relatively late in the mortgage boom. Alt-A mortgages are loans to individuals with cleaner credit records than subprime borrowers, but who are not considered prime.

Hewehi Market Overview

Textainer Group reports refrigerated container market update (TGH) 15.90 +0.60 : Co reported that 770 units out of the 800 reefer containers, initially purchased in January 2008, have been committed to leases with various shipping lines. Co says, "we expect a fairly modest capital expenditure of $30 mn for reefers in 2008. Based on our initial success with the first units produced, and the recent new order, we may exceed that goal for the year."

Cliffs North American coal declares force majeure on coal shipments from Pinnacle Mine (CLF) 132.99 +5.53 : Co announced its Cliffs North American Coal, LLC subsidiary has declared force majeure on coal shipments from its Pinnacle Mine in Pineville, W. Va. Cliffs indicated the longwall plow is currently mining through a sandstone intrusion into the coal seam, which has caused coal production at the mine to significantly slow, as well as reduced shipments. The sandstone intrusion is a continuation of the same geology that slowed production at Pinnacle Mine in August 2007.

Baker Hughes announces in an 8-K, on April 2, 2008, the co increased by $500 mln its commercial paper program (BHI) 72.05 +1.56 : In an 8-K, co says as of April 2, 2008, the co may issue from time to time unsecured commercial paper notes up to a maximum aggregate amount outstanding at any time of $1 bln.

Patriot Coal announces agreement to acquire Magnum Coal (PCX) 46.95 -0.76 : Co today announced that it has signed an agreement to acquire Magnum Coal ("Magnum"). Magnum is one of the largest and lowest-cost coal producers in Central Appalachia, operating 12 mines and 7 preparation plants. Magnum sold 18.4 mln tons of coal in 2007 and has over 600 million tons of proven and probable reserves in southern West Virginia. On a pro forma basis, the combination of PCX and Magnum would have sold more than 40 mln tons in 2007 and generated revenues of just under $2.0 bln. Proven and probable reserves on a combined basis will exceed 1.9 bln tons. The combined assets will provide Patriot a more balanced production mix, with ~70% underground and 30% surface mining.

MI Developments rejects mischaracterizations in Greenlight press release (MIM) 28.94 -0.13 : Co responded to the press release issued by Greenlight Capital (Greenlight) with respect to the reorganization proposal received on March 31, 2008 on behalf of various MID shareholders, including entities affiliated with Frank Stronach, MIM's controlling shareholder, and institutional shareholders. MIM shareholders owning an aggregate of more than 50% of the outstanding Class A Subordinate Voting Shares and 95% of the outstanding Class B Shares have signed support agreements in favour of the reorganization proposal. MIM rejects the mischaracterizations contained in the Greenlight press release concerning the manner in which MID has conducted its affairs.

Selectica: Leading Government contractor chooses selectica contract lifecycle management solution (SLTC) 1.37 -0.03 : Selectica (SLTC), a provider of enterprise contract lifecycle management solutions, announced that ManTech International (MANT) plans to implement SLTC Contract Performance Management.

First Place Finl announces definitive agreement to acquire OC Financial for $12.86 (FPFC) 13.93 -0.06 : Co First Place Financial (FPFC), the holding co for First Place Bank headquartered in Warren, Ohio, and OC Financial (OTC Bulletin Board: OCFL), the holding co for Ohio Central Savings headquartered in Dublin, Ohio, today announced that they have reached a definitive agreement for First Place to acquire OC Financial in a stock merger transaction. This transaction is valued at ~$7.2 mln, based on the average closing price of FPFC common stock for the 10 business days ended April 1, 2008 of $13.37 which would result in a value of $12.86 for each OC Financial share. The transaction is expected to contribute positively to FPFC's EPS, excluding one-time merger-related costs, in its fiscal year ending June 30, 2009.

Chevron cites bias and improper collaboration in rejecting conclusions of report submitted to Ecuadorian Court (CVX) 87.51 +0.77 : Co said that it will petition the Superior Court in Lago Agrio to strike from the record a flawed and patently partisan report submitted in the ongoing environmental lawsuit filed by Ecuadorian citizens against Chevron.

Helix Energy Sells Interest in Deepwater Fields for $165 mln (HLX) 31.42 +0.43 : Energy Resource Technology GOM, Inc. (ERT), a wholly owned subsidiary of Helix Energy Solutions (HLX), has agreed to sell a 30% working interest in its Danny Noonan discoveries (Garden Banks Blocks 463, 506 and 507) and other Outer Continental Shelf oil and gas properties (East Cameron Blocks 371 and 381), in two separate transactions to a private independent oil and gas co for total cash consideration of ~$165 mln (which includes their share of past capital expenditures on these fields), and additional cash payments of up to $20 mln based upon certain field production milestones.

City Holding Co announces issuance of $16 mln trust preferred securities and redemption of trust preferred securities (CHCO) 41.84 +0.50 :

City Holding Co announces it has received proceeds of $2.3 mln from the Visa IPO (CHCO) 41.84 +0.50 : The co announces that it received proceeds of $2.3 million on the partial redemption of its equity interest in Visa. In addition, City expects to reverse approximately $1.0 million of liabilities previously established that represented City's share of legal judgments and settlements related to Visa litigation. As a result, City's first quarter 2008 results are expected to benefit by $2.1 million after-tax, or $0.13 per diluted common share.

RenaissanceRe acquires Claims Management Services (RNR) 53.25 -0.54 : Co announces that its indirect wholly-owned subsidiary, Glencoe Group Claims Management, has acquired the assets of Claims Management Services, a privately-held provider of claims Perini and Tutor-Saliba Corp to combine (PCR) 38.21 +0.15 : Co announces that they have signed a definitive agreement to merge with Tudor-Saliba Corp. The transaction has been structured as a tax-free, all-stock merger. Under the agreement, Tutor-Saliba shareholders will receive shares equal to approximately 45% of the common stock of PCR in exchange for their interests in Tutor-Saliba. The total transaction value will be approximately $862 mln based on PCR's closing price of $38.10 on April 1, 2008, including assumed adjusted net cash of Tutor-Saliba as of December 31, 2007. The transaction, which is expected to close during the third quarter of 2008, is expected to be accretive to diluted earnings per share beginning in the first full fiscal year of combined operations. PCR is maintaining its existing guidance for fiscal 2008 of diluted earnings per share of $3.50 to $3.75. Co is now targeting fiscal 2009 revenue and diluted earnings per share in the range of $7.3 to $7.8 bln and $4.00 to $4.20, respectively, and targeting diluted earnings per share growth in 2010 of between 10% to 20%.

Fisher Companies appoints Joseph Lovejoy as acting CFO (FSCI) 32.10 -0.20 : The co announces that following the resignation of S. Mae Fujita Numata from her position as SVP, CFO and Corporate Secretary on April 1, 2008, Joseph L. Lovejoy has been named Acting CFO effective today. Lovejoy has been a senior vice president of the co since December 2006, responsible for strategic planning, financial analysis and business development.

Amgen: Pivotal Phase 3 Data Show Denosumab Increased Bone Density at Multiple Skeletal Sites in Early and Later Stage Postmenopausal Women (AMGN) 42.45 +0.29 : The co announces the publication of results from its 24-month, 332-patient Phase 3 pivotal study in women with early and late stage postmenopausal osteoporosis in the Journal of Clinical Endocrinology and Metabolism. In this Phase 3 study, twice-yearly subcutaneous injections of denosumab increased bone mineral density at all sites measured, including in highly cortical areas of the skeleton. Cortical bone comprises 75% of skeletal mass and is a primary determinant of overall strength in vertebral and non-vertebral sites throughout the skeleton... Amgen expects the results of its large, pivotal Phase 3 registrational study, which will evaluate denosumab's impact on fracture risk reduction, in women with postmenopausal osteoporosis, in the second half of this year.

Robbins & Myers announces $5.4 mln gain; increases Q3 2008 EPS guidance to $0.53-0.58 vs. $0.47 and FY08 EPS guidance to $1.92-2.03 vs. $1.94 consensus (RBN) 33.64 -0.41 : The co announces that certain contingency obligations relating to the sale of two of its Romaco product lines in fiscal year 2006 expired on March 31, 2008. As a result, the co expects to recognize an additional pretax gain on that sale of approximately 3.5 mln euros, or $5.4 mln at current exchange rates, in its third fiscal quarter ending May 31, 2008. This gain, which was not included in the co's previously issued earnings guidance, is expected to increase diluted earnings per share for its third quarter and full year of fiscal 2008 by approximately $0.11 per share. Therefore, the co increased its third quarter fiscal 2008 DEPS guidance to $0.53-0.58, including an $0.11 gain, vs. $0.47 First Call consensus, from $0.42-$0.47, and its full year fiscal 2008 guidance to $1.93-$2.03, including the $0.11 gain, vs. $1.94 First call consensus, from $1.82-$1.92.

Solutia raises price on all Ascend and Vydyne nylon plastics and polymers (SOA) 13.96 +0.16 : Co announced a price increase of $0.10 per pound across its Ascend and Vydyne polyamide 66 resins in the North American market. This increase applies to orders shipped on or after April 15, 2008, and will be applied across the Ascend and Vydyne product families.

AMR Corp: American Eagle Airlines reports March traffic; traffic decreased 9.5% YoY (AMR) 9.59 -0.26 : American Eagle reports a March load factor of 73.4%, down 0.7 points compared to the same period last year. Traffic decreased 9.5% YoY as capacity decreased 8.6%. American Eagle boarded 1.7 mln passengers in March.

Isilon Systems reports Q3 and Q4 results, has completed its restatement of financial statements (ISLN) 4.91 -0.11 : Co announces its financial results for the fiscal year ended December 30, 2007, including the third and fourth quarters of 2007. Co also announced that its Audit Committee has concluded its independent review of the timing and treatment of revenue recognition and the co has completed the restatement of financial statements for certain previous periods. ISLN reports Q3 EPS ($0.10) vs ($0.09) First Call consensus; revs $21.6 mln vs $23.88 mln First Call consensus. Co also reports Q4 EPS ($0.11) vs ($0.06) First Call consensus; sees revs $26.60 mln vs $26.63 mln First Call consensus.

Synthesis Energy Systems regains complaince with NASDAQ listing requirements (SYMX) 8.47 +0.47 :

BEA Systems: SEC notifies BEA Systems of termination of inquiry (BEAS) 19.19 +0.00 : Co announces that on March 31, 2008, it received a letter from the San Francisco Regional Office of the Securities and Exchange Commission stating that the inquiry concerning the Company's historical stock option granting practices has been terminated and that no enforcement action has been recommended to the Commission. Briefing note: BEAS has been acquired by ORCL.

KBR Inc. joint venture awarded engineering and procurement management services (KBR) 28.66 +0.30 : Co announces that its "Eos" joint venture with WorleyParsons has been awarded contract options for the detailed engineering and procurement management services for Woodside's North Rankin 2 project. The Eos Joint Venture has completed Front-End Engineering Design for the North Rankin B platform and the North West Shelf Venture participants have recently announced final approval of the complete NR2 project. The combined revenue of the Front-End Engineering Design and contract options for the Eos Joint Venture is ~$320 mln.

AngioDynamics reports EPS in-line, revs in-line; guides FY08 EPS above consensus, revs in-line (ANGO) 11.55 -0.04 : Reports Q3 (Feb) earnings of $0.12 per share, excluding $0.08 gain from Diomed settlement which was announced today, in-line with the First Call consensus of $0.12; revenues rose 52.4% year/year to $40.7 mln vs the $40.7 mln consensus. Co issues mixed guidance for FY08, sees EPS of $0.58-0.61 vs. $0.50 consensus; sees FY08 revs of $165-167 mln vs. $164.82 mln consensus. "The co also announced it has entered into a settlement agreement with Diomed. AngioDynamics reduced its litigation provision and recorded a gain, net of costs, of approximately $3.2 million pre-tax, $2.0 million after-tax, and $0.08 in earnings per share, as reflected in the fiscal third quarter results."

EXFO to acquire Brix Networks for $28.5 mln in cash plus earn-out (~$37.5 mln) (EXFO) 5.90 +1.05 : Co announced today that it has signed an agreement to acquire all the shares of Brix Networks, a global provider of open and extensible converged service assurance solutions. Consideration to be paid consists of $28.5 mln in cash and an additional earn-out based upon the achievement of bookings levels exceeding $16 mln in the 12 months following the closing date of the transaction. Total purchase price could reach $37.5 mln, including a maximum earn-out and other acquisition-related costs. The deal is expected to be negative to earnings for the remainder of fiscal 2008, neutral in fiscal 2009 and accretive in 2010, excluding stock-based compensation costs and after-tax amortization of intangible assets.

Ruby Tuesday beats by $0.05, misses on revs; guides FY08 EPS in-line (RT) 7.87 +0.05 : Reports Q3 (Feb) earnings of $0.23 per share, $0.05 better than the First Call consensus of $0.18; revenues fell 7.1% year/year to $351.2 mln vs the $367.9 mln consensus. Co issues in-line guidance for FY08, sees EPS of $0.40-0.50, includes expenses incurred in our remodel initiative of $0.18 to $0.20 per diluted share, vs. $0.45 consensus.

HNI warns of weakening first quarter revenue and profit (HNI) 27.76 +0.41 : Co announces it expects Q1 2008 revenue and operating profit in its office furniture segment to experience a significant decline over previously communicated expectations. The co estimates Q1 office furniture revenue declined 6% as compared to the prior year. The revs decline resulted from substantial weakness in the supplies-driven channel, which consists primarily of small office and home office customers and represents ~50% of HNI's total office furniture revenue. The supplies-driven channel weakness will have a significant impact on profitability. Escalating input cost pressures and plant consolidation costs are also negative contributing factors.

LDK Solar signs a ten-year wafer supply agreement with Moser Baer Photo Voltaic (LDK) 30.09 +2.59 : Co announced that it has signed a ten-year contract which is a blend of "Take or Pay" linked with market-based pricing to supply multicrystalline solar wafers to India-based Moser Baer Photo Voltaic Limited, a subsidiary of Moser Baer India Limited. Under the terms of the agreement, LDK Solar will deliver 640 MW of multicrystalline solar wafers to MBPV over a ten-year period commencing in mid 2008 through 2017. MBPV will make a suitable advance payment reflecting the contract value to LDK Solar.

Landec delays Q3 release and provides preliminary Q3 results (LNDC) 8.13 -0.34 : Co announces that its newly appointed independent registered public accounting firm need additional time to complete the preparation and review of financial statements for Q3. The public accounting firm has raised some questions regarding the interpretation of certain complex technical accounting rules affecting the accounting treatment for the transactions entered into with Monsanto and its subsidiaries. Co had expected to report Q3 EPS of approx $0.15 vs $0.15 consensus with revs of approx $59.6 mln vs $58.8 mln consensus, but these numbers are subject to adjustment depending on the outcome of the ongoing review.

La-Z-Boy announces consolidation; to take charge of $0.20-0.24 (LZB) 8.85 +0.16 : The co will consolidate all of its domestic cutting and sewing operations in Mexico and will transfer production from its Tremonton, Utah plant, which will be closed, to its five remaining La-Z-Boy branded upholstery manufacturing facilities. As a result of these actions, La-Z-Boy will take a pre-tax restructuring charge in the range of $17 - $20 mln, or $0.20 to $0.24 per share. This charge will be principally for severance and other benefit costs and will also include training costs to begin production in the other facilities, the write-down of certain fixed assets and other associated costs. As the plant is closed and the cut-and-sew operations are transferred, these charges will be incurred as follows: $2.0 - $2.5 mln in the fourth quarter of fiscal 2008; $9.0 - $10.0 mln in fiscal 2009; and the balance in 2010. Once these moves are completed, the co expects to realize in excess of $25 mln in annual cost savings, with the full benefit beginning in fiscal 2011.

Design Within Reach announces multi-year employment agreement with CEO Ray Brunner (DWRI) 3.05 +0.01 :

Wireless Xcessories intends to cease trading on Amex and to deregister its common stock with the SEC (XWG) 1.31 +0.06 :

Triad Guaranty: Fitch downgrades Triad's IFS to 'BBB-'; watch negative (TGIC) 3.60 -1.65 : Fitch has downgraded the following ratings on Triad Guaranty and its mortgage insurance subsidiary: Triad Guaranty Insurance Corporation Insurer financial strength (IFS) to 'BBB-' from 'AA-', Long-term Issuer to 'BB-' from 'A-' and $35 million 7.9% fixed coupon senior notes due Jan.15, 2028 to 'BB-' from 'A-'. This action follows the publication of Triad Guaranty's yearend 2007 10-K filing in which the company disclosed that it has not been successful in obtaining any new capital commitments to date. The company also disclosed that it is considering placing its operating company Triad into 'run-off', and creating a newly formed mortgage insurance subsidiary that would underwrite all future business.

VCG Holding CFO no longer with the co; co engages financial consultants to assist in accounting until the search for a CFO is completed (VCGH) 5.22 -1.33 : Co announced that its Chief Financial Officer and Chief Accounting Officer, Mr. Brent Lewis, is no longer with the Company effective March 31, 2008. The Company is conducting a search for a Chief Financial Officer and has engaged financial consultants on an interim basis to assist with the preparation of the Company's Form 10-K for the period ended December 31, 2007, as well as other accounting issues.

CBOT Agriculture and Ethanol Closing Prices (COMDX) : May corn closed higher by 12 cents to $5.96 per bushel, May soybeans closed higher by 32 1/4 cents to $12.43 1/4 per bushel, May wheat closed higher by 41 cents to $9.36 per bushel, May Ethanol closed higher by $0.063 to $2.480 per gallon.

NYMEX Energy Closing Prices (COMDX) : Crude closed the session up $3.87 to $104.85, nat gas settled higher by 11.6 cents to $9.84, heating oil ended up 7.23 cents to $2.9520 and RBOB gasoline finished higher by 13.46 cents to $2.7738.

TechTeam wins USA contact program award with the GSA office of Citizen Services and Communications (TEAM) 9.32 +0.15 : Co announces it has won a government-wide indefinite delivery, indefinite quantity contract for multi-channel contact center services with the General Administration Services' Office of Citizen Services and Communications. The program, called USA Contact, has a potential value over ten years of up to $2.5 bln. Eight other companies were also awarded program contracts.

Alpha Pro Tech announces $2 mln stock buy back program (APT) 1.22 +0.05 :

Brush Engineered Materials awarded $9.8 mln in new orders to produce infrared window assemblies and hybrid circuits (BW) 27.09 +0.28 :

Packeteer: Elliott Associates reaffirms offer to acquire PKTR, sends merger agreement to seek consensual transaction (PKTR) 5.92 +0.69 : Elliott Associates sent the following letter to the Board of Directors of PKTR: "On March 20, 2008, we commenced a tender offer to acquire all of the outstanding shares of Common Stock of Packeteer for $5.50 per share. We were extremely disappointed to have read in your press release and Schedule 14D-9 filed April 1, 2008 that you have advised shareholders to reject our offer and that you have instituted a poison pill. Our offer provides shareholders with quantifiable, certain value that can be realized in an extremely short timeframe. As we informed you weeks ago, we were -- and remain -- prepared to negotiate a consensual transaction on customary terms immediately. To this end, we sent your counsel a merger agreement yesterday... Our offer and the transaction set forth in the draft merger agreement we sent to you provides a level of certainty far in excess of the alternatives you described to your shareholders, which alternatives consist only of: 1) a sale of the company or business combination transaction which you acknowledge are only "potentially attractive" and which your Board has not yet determined whether to pursue; or 2) pursuing your newly devised operating plan, which you refer to as being able to deliver "materially higher numbers than are anticipated by Wall Street consensus estimates," without any explanation of how this is to be achieved. These nebulous alternatives of a potential sale or the promise of improved operating performance contrast sharply with the speed and surety of our offer."

Westmoreland Coal announces Kevin Paprzycki has been named Chief Financial Officer (WLB) 14.23 +0.53 : Co announces Kevin Paprzycki has been named Chief Financial Officer, replacing David Blair who is leaving the co. Paprzycki has served as the co's Controller and Principle Accounting Officer since June 2006.

Schering-Plough: Fitch places ratings on rating watch negative (SGP) 14.23 -0.52 : Fitch Ratings has placed Schering-Plough ratings on Rating Watch Negative. The action applies to ~$11.98 bln of outstanding debt. The Rating Watch reflects Fitch's concern that Schering-Plough will be unable to reduce leverage, total debt-to-EBITDA, to below 2.0x by the end of 2009 given potential sales erosion of the cholesterol-lowering medicines, Vytorin and Zetia.

China Security and Surveillance reaffirms Q1 and FY08 guidance in 8-K presentation (CSR) 18.68 +0.37 : Co sees Q1 revs of $68-70 mln, EPS of $0.31-0.34 and FY08 revs of $350-370 mln, EPS of $1.50-1.75. (no consensus)

Golden Star Resources appoints D. Scott Barr as Executive Vice President and Chief Operating Officer (GSS) 3.42 +0.08 : Co announces that it has appointed D. Scott Barr as Chief Operating Officer commencing on April 2, 2008.

OMNI Energy Srvs announces appointment of Brian Recatto as President and Chief Executive Officer (OMNI) 3.69 -0.08 : Co announces that its Board of Directors has approved the appointment of Brian Recatto as the President and Chief Executive Officer, effective July 1, 2008. Recatto has significant operational and public company experience and has served as the Chief Operating Officer since December 2007.

Trinity Biotech announces the launch of new GeneSys Neonatal Haemoglobin Variant Screen (TRIB) 4.53 -0.05 :

RLI Corp expands small fleet trucking program (RLI) 50.83 +0.30 : Co announces the expansion of its small fleet trucking program to include new retail agents. The program had previously been limited to existing, appointed agents. The expansion is intended to provide more retail agents with direct access to RLI.

Commonwealth Biotech subsidiary announces two new major drug discovery collaborations (CBTE) 2.05 -0.04 : Co announces that it has entered into two new drug discovery collaborations: one with a leading US pharmaceutical company and one with a major European pharmaceutical company. Given the proprietary nature of the collaborations both partners declined to be named. "With our new European partner, we have entered into a broad-based collaboration to discover and develop novel small-molecule therapeutics for use in the fields of CNS; Alzheimer's disease, neuro-inflammation and type-2 diabetes... Under the terms of the agreement, based on compounds discovered by Exelgen, our partner will receive an option to license the compounds and collaborate in specific programs. With the signing of the agreement, our partner will make an initial up-front cash payment to Exelgen for exclusivity on certain program assets and have the option to continue development of the assets in collaboration with Exelgen." If this collaboration proves successful and a drug candidate is identified, Exelgen would receive ongoing support through additional research funding and, more importantly, will be eligible to receive success-based milestones of up to $25 million and additional royalties on any product sales.

Computer Task announces extension of 10b5-1 plan to facilitate share repurchases (CTGX) 3.37 -0.11 : Co announces that it extended a stock repurchase plan under Rule 10b5-1 of the SEC to facilitate the repurchase of its common stock under its outstanding repurchase authorizations. The Company has approx 1.1 mln shares available for repurchase as of April 2, 2008 under previous authorizations.

Abraxas Petroleum provides operational results on exploratory Wilcox Well (ABP) 3.27 -0.03 : Co provided operational results on the Gisler #1, an exploratory well targeting the Wilcox formation, located in Karnes County of South Texas. The Gisler #1 was drilled vertically to a total depth of approx 13,000', completed without stimulation and placed on-line approx two weeks ago. This well is currently producing at a gross rate of approx 2.9 MMcf of gas and 55 Bbl of condensate per day, or 3.2 MMcfepd. This well may be fracture stimulated in the future. Abraxas Petroleum owns a 63% working interest in this well. "The production rates from the Gisler #1 are above our expectations. Even though a typical Wilcox well has a relatively steep initial decline rate, these wells are very economic and pay out quickly. We intentionally limit our exploratory budget to 20% of our overall capital expenditure budget. Our upcoming capital projects will focus on projects that are more development and exploitation in nature,"

Hearst-Argyle TV announces the acquisition of Map of Medicine (HTV) 20.73 +0.11 : Co announces the acquisition of Map of Medicine, a provider of evidence-based health-care resources designed to help health practitioners make sound decisions by following accessible clinical information on a range of relevant medical issues. Terms not disclosed.

Summary of Bernanke's prepared comments to the Joint Economic Committee : "In response to deterioration in the near-term outlook for the economy and intensified strains in financial markets, in recent months the Federal Reserve has eased monetary policy substantially further and taken strong actions to increase market liquidity. In my remarks today, I will first offer my views on conditions in financial markets and the outlook for the U.S. economy, then discuss recent actions taken by the Federal Reserve... Although our recent actions appear to have helped stabilize the situation somewhat, financial markets remain under considerable stress. Pressures in short-term bank funding markets, which had abated somewhat beginning late last year, have increased once again... Notably, in the housing market, sales of both new and existing homes have generally continued weak, partly as a result of the reduced availability of mortgage credit, and home prices have continued to fall. Starts of new single-family homes declined an additional 7 percent in February, bringing the cumulative decline since the early 2006 peak in single-family starts to more than 60 percent. Residential construction is likely to contract somewhat further in coming quarters as builders try to reduce their high inventories of unsold new homes... The unemployment rate edged down in February and remains at a relatively low level; however, in light of the sluggishness of economic activity and other indicators of a softer labor market, I expect it to move somewhat higher in coming months... I expect the tax rebates associated with the fiscal stimulus package recently passed by the Congress to provide some support to consumer spending in coming quarters... Overall, the near-term economic outlook has weakened relative to the projections released by the Federal Open Market Committee (FOMC) at the end of January. It now appears likely that real gross domestic product (GDP) will not grow much, if at all, over the first half of 2008 and could even contract slightly. We expect economic activity to strengthen in the second half of the year, in part as the result of stimulative monetary and fiscal policies; and growth is expected to proceed at or a little above its sustainable pace in 2009, bolstered by a stabilization of housing activity, albeit at low levels, and gradually improving financial conditions. However, in light of the recent turbulence in financial markets, the uncertainty attending this forecast is quite high and the risks remain to the downside... Inflation has also been a source of concern. We expect inflation to moderate in coming quarters. That expectation is based, in part, on futures markets' indications of a leveling out of prices for oil and other commodities, and it is consistent with our projection that global growth--and thus the demand for commodities--will slow somewhat during this period. And, as I noted, we project an easing of pressures on resource utilization. However, some indicators of inflation expectations have risen, and, overall, uncertainty about the inflation outlook has increased. It will be necessary to continue to monitor inflation developments carefully in the months ahead... I turn now to the Federal Reserve's policy responses to these financial and economic developments. On March 13, Bear Stearns (BSC) advised the Federal Reserve and other government agencies that its liquidity position had significantly deteriorated and that it would have to file for Chapter 11 bankruptcy the next day unless alternative sources of funds became available. This news raised difficult questions of public policy. Normally, the market sorts out which companies survive and which fail, and that is as it should be. However, the issues raised here extended well beyond the fate of one company. Our financial system is extremely complex and interconnected, and Bear Stearns participated extensively in a range of critical markets. With financial conditions fragile, the sudden failure of Bear Stearns likely would have led to a chaotic unwinding of positions in those markets and could have severely shaken confidence. The company's failure could also have cast doubt on the financial positions of some of Bear Stearns' thousands of counterparties and perhaps of companies with similar businesses. Given the current exceptional pressures on the global economy and financial system, the damage caused by a default by Bear Stearns could have been severe and extremely difficult to contain. Moreover, the adverse effects would not have been confined to the financial system but would have been felt broadly in the real economy through its effects on asset values and credit availability. To prevent a disorderly failure of Bear Stearns and the unpredictable but likely severe consequences of such a failure for market functioning and the broader economy, the Federal Reserve, in close consultation with the Treasury Department, agreed to provide funding to Bear Stearns through JPMorgan Chase (JPM)... Clearly, the U.S. economy is going through a very difficult period. But among the great strengths of our economy is its ability to adapt and to respond to diverse challenges. Much necessary economic and financial adjustment has already taken place, and monetary and fiscal policies are in train that should support a return to growth in the second half of this year and next year. I remain confident in our economy's long-term prospects."

Republic Airways reports a 30% increase in March 2008 traffic (RJET) 22.07 -0.47 : Co reported preliminary passenger traffic results for March 2008. The co generated 874.0 mln revenue passenger miles, a 30.2% increase over the same month last year, while available seat miles increased 28.7% to 1.1 bln. Block hours were 65,457 in March 2008, a 22.8% increase over March 2007. Load factor was 76.7% versus 75.8% in March 2007. A total of 1,674,324 passengers were carried during the month, a 31.8% increase over the same month last year.

Spire receives contract for combined solar module and cell line in China (SPIR) 16.77 +0.41 : Co announces it has won a contract in China for a combined solar module and solar cell facility. This order includes a 25-megawatt module factory and an adjacent 25MW solar cell factory designed to produce high efficiency multi-crystalline cells. "We are delighted to be selected, after a very competitive bidding process, by Jiangxi Gemei Sci-Tech LTD for this groundbreaking project..."

Newspaper Notable Mentions (WIRES) : FT: First Direct has suspended new mortgage lending after being swamped by applications. The decision was taken after rival banks withdrew their mortgage deals because of worsening conditions in the money markets. The bank, part of HBC, yesterday withdrew all loans to homeowners who were not already customers after it received five times the normal level of applications... WSJ: As the largest specialty-electronics retailers get set to report year-end results, recent consumer surveys and comments from a TV supplier and from club stores point to slowing TV demand. TV sales were expected to slow this year after a couple of big years tied to technology improvements and following the usual surge around the holidays, but some industry watchers suspect sales have slowed even more than anticipated... DigiTimes: Despite some industry players projecting a possible shortage of 32-inch LCD TV panels in 2008, the recent adjustments in strategy at leading panel makers and branded vendors means the situation may not be as dire as previously thought. Industry players earlier projected a shortage of 32-inch LCD TV panels because of the limited fresh capacity from major suppliers. Some even estimated that supply would fall short of demand by 30%... Oversupply of LCD panels for the TV segment, coupled with demand from top LCD TV vendors for lower-price panels to facilitate their second-quarter marketing campaigns, may prevent overall price increases for LCD panels in April, as suppliers are likely to adjust their capacity to put out more PC-use panels that offer higher profits, according to industry sources.

UniFirst beats by $0.30, beats on revs (UNF) 38.08 : Reports Q2 (Feb) earnings of $0.79 per share, $0.30 better than the First Call consensus of $0.49; revenues rose 21.6% year/year to $270.3 mln vs the $259.5 mln consensus.

S&P futures vs fair value: +1.0. Nasdaq futures vs fair value: -0.2. : Futures have come off their previous levels and now indicate a mixed start as S&P Futures lead fair value and Nasdaq Futures lag fair value.

On The Wires (WIRES) : Goodrich (GR) has been selected by Lockheed Martin to supply the air data system for the F-35 Lightning II program, which has the potential of generating $300 mln in revenue over the life of the program... Energy Partners (EPL) announces its second discovery in 2008 in the Bay Marchand field located in its Central core area on the Gulf of Mexico Shelf and has begun drilling its third well in the program.

SAP AG appoints Leo Apotheker Co-CEO (SAP) 49.65 : Co announces the appointment of SAP Deputy CEO Leo Apotheker as the company's co-CEO alongside SAP CEO Henning Kagermann, effective immediately.

Commscope reaffirms FY08 outlook at industy conference (CTV) 36.99 : Co reaffirms guidance for Q1 (Mar), sees Q1 (Mar) revs of $950-970 mln vs. $964.72 mln First Call consensus. Co reaffirms guidance for FY08 (Dec), sees FY08 (Dec) revs of $4.1-4.3 bln vs. $4.23 bln consensus.

Harris Stratex awarded $9.1 mln emergency communications network wireless transmission contract by the city of San Jose, CA (HSTX) 10.23 : Co announces a new $9.1 mln contract with the City of San Jose, California to engineer, install, integrate and provision the Emergency Communications private microwave radio network. Under the terms of the agreement, Harris Stratex Networks also will supply full maintenance support and services for the ECOMM network during its first year of operation.

Sempra Energy initiates a $1 bln share repurchase program (SRE) 54.31 :

S&P futures vs fair value: +1.8. Nasdaq futures vs fair value: +2.0. : U.S. stocks are on track to begin the session for the better. The major Asian indices registered an impressive performance Wednesday. The Nikkei finished up 4.2% and the Hang Seng finished 3.2% higher. Optimism is also prevailing in Europe, the DAX is up 0.8% and the FTSE is up 0.6%.

On The Wires (WIRES) : Reliance Steel & Aluminum (RS) announces that on April 1, 2008, it acquired Dynamic Metals International. Dynamic's 2007 revs were approximately $11 mln... Kenexa (KNXA) announces its acquisition of Quorum International, a co providing recruitment process outsourcing services in Europe, the Middle East and Africa. Financial details of the transaction were not disclosed.

Southwest Air announced today it flew 6.7 bln revenue passenger miles in March 2008, a 9.8% increase YoY (LUV) 12.75 : Co announces that it flew 6.7 bln revenue passenger miles in March 2008, a 9.8% increase from the 6.1 bln RPMs flown in March 2007. Available seat miles increased 5.3% to 8.7 bln from the March 2007 level of 8.3 bln. The load factor for the month was 76.5%, compared to 73.3% for the same period last year.

On The Wires (WIRES) : In connection with Clear Channel Communications' (CCU) previously announced tender offer for its outstanding 7.65% Senior Notes due 2010 and its subsidiary AMFM Operating's previously announced tender offer for its outstanding 8% Senior Notes due 2008, the co announces that it has extended the date on which the tender offers are scheduled to expire from 8:00 a.m. New York City time on April 4, 2008 to 8:00 a.m. New York City time on April 11, 2008... St. Jude Medical (STJ) announces regulatory approval from the Japanese Ministry of Health, Labour and Welfare for the Merlin Patient Care System... Raser Technologies (RZ) announces that it has initiated the development of an additional geothermal project in Utah... Deere & Company (DE) announces plans to significantly expand its presence in Russia...China Direct (CDS) announces it has received approval from the NASDAQ Stock Market for its common shares to be listed on the NASDAQ Global Market... EnerNOC (ENOC) announces a 5-yr contract with the Ontario Power Authority to provide demand response capacity in the Greater Toronto Area, Waterloo Region and City of Hamilton.

Alfacell updates status of ONCONASE phase III clinical program; confirms 316 deaths (ACEL) 2.41 : Co announced that it has confirmed that 316 evaluable events (patient deaths) have occurred in the confirmatory Phase IIIb clinical trial of its lead compound, ONCONASE, for the treatment of patients with unresectable malignant mesothelioma. In accordance with the statistical plan for the trial, the company has begun the process necessary to conduct the formal statistical analyses required to complete the final sections of the ONCONASE rolling New Drug Application.

S&P futures vs fair value: +3.5. Nasdaq futures vs fair value: +2.5. : Futures continue to indicate an upside open. Both Best Buy (BBY 43.47) and Monsanto (MON 113.13) announced EPS results this morning that topped consensus EPS estimates.

IntercontinentalExchange reports record ADV and OTC commissions for First Quarter 2008; ADV future volume exceeds 1 mln (ICE) 139.11 : Total ADV for all ICE Futures contracts reached 1,031,683 in March 2008, an increase of 42% over March 2007. Total ADV for all ICE Futures contracts reached 1,004,713 in the first quarter. Average daily commissions for ICE's global OTC business more than doubled to $1,324,510, a 124% increase over March 2007, and the third consecutive month surpassing $1 mln per day.

CGI Group: Revenu Quebec awards CGI $40 mln in consulting contracts (GIB) 10.95 : Co announces that it has won consulting contracts awarded by Revenu Quebec worth more than $40 mln. Under the terms of the contracts, GIB will work with Revenu Quebec to improve the government's existing personal income tax system and will develop a new system.

Hain Celestial announces the acquisition of Daily Bread; expected to be accretive (HAIN) 30.35 : Co announces the acquisition of Daily Bread, a London-based producer of branded fresh prepared foods for the foodservice channel in the United Kingdom. Daily Bread generated ~ $24 mln in continuing sales in its last fiscal year. Terms of the acquisition were not disclosed. The transaction is expected to be accretive to Hain Celestial's earnings during its fiscal year 2009.

S&P futures vs fair value: +4.4. Nasdaq futures vs fair value: +2.8. : Futures indicate a more positive start following the latest ADP Employment Report. The March ADP Employment Report indicated jobs grew by 8,000 in the private sector. The consensus estimate called for a loss of 45,000. February's rate was revised to a drop of 18,000 from a drop of 23,000.

Equity futures tick up to pre-mkt highs on better than expected ADP Employment number... SPX futures gain about 4 pts on the data, now +5 pts :

On The Wires (WIRES) : Park Electrochemical (PKE) announces that its new wholly owned subsidiary, Park Aerospace Structures, has purchased substantially all the assets and business of Nova Composites... Veeco Instruments (VECO) announces that Millenium Communication of Hsinchu, Taiwan has ordered a TurboDisc E450 arsenic phosphide Metal Organic Chemical Vapor Deposition System for production of high-efficiency III-V compound multi-junction solar cells... Chartered Semiconductor Manufacturing (CHRT) announces the extension of its joint development collaboration with IBM (IBM) to include 22-nanometer bulk complementary metal oxide semiconductor technology. Financial terms were not disclosed... Abraxis BioScience (ABII) announces it has initiated enrollment in its Phase II clinical trial to evaluate the efficacy and safety of Coroxane for the prevention and reduction of restenosis following revascularization of the superficial femoral artery... Brightpoint North America, a subsidiary of Brightpoint (CELL), has entered into a Logistics Fulfillment and Services agreement with Sprint's XOHM business unit in support of their upcoming launch of a next generation mobile WiMAX network.

Monsanto beats by $0.07, beats on revs; reaffirms FY08 EPS guidance (MON) 113.13 : Reports Q2 (Feb) earnings of $1.79 per share, excluding non-recurring items, $0.07 better than the First Call consensus of $1.72, compared to 03/25 guidance of EPS in the range of $1.75; revenues rose 44.8% year/year to $3.78 bln vs the $3.6 bln consensus. Co reaffirms guidance unchanged from the guidance given 3/25 when MON raised 2008 guidance, sees EPS of $3.15-3.25, excluding non-recurring items, vs. $3.20 consensus. Between Y07 and the end of Y12, co expects to effectively double the gross profit potential of its business. Co also announces its intention to make an investment of up to $196 mln over the next 18 months at its glyphosate manufacturing facility in Luling, Louisiana. The planned development will increase its global capacity to produce Roundup and other glyphosate-based herbicides.

S&P futures vs fair value: +0.3. Nasdaq futures vs fair value: -1.0. : Futures currently indicate a mixed start, but the major world indices extend their rallies into Wednesday. The Dow Jones World Index, excluding the U.S., is up 1.9%. The Wall Street Journal reports that National City (NCC $9.99) is considering selling itself to KeyCorp (KEY $23.49).

Monsanto announces planned expansion at its facility in Louisiana (MON) 113.13 +0.18 : The co announces its intention to make an investment of up to $196 mln over the next 18 months at its glyphosate manufacturing facility in Luling, Louisiana. The planned development will increase its global capacity to produce Roundup and other glyphosate-based herbicides. In addition to the planned expansion, Monsanto announces that it will be undertaking an energy-reduction project at its Luling facility. The co will be implementing a hydrogen-recovery project, a step that will enable it to reduce natural gas costs and better conserve and utilize hydrogen, a by-product of the glyphosate manufacturing process.

iMergent reaches settlement with the state of Connecticut; continues doing business in Connecticut (IIG) 11.83 : Under the terms of the settlement and without an admission of any liability, iMergent refunded certain customers approximately $65,000 and agreed to pay the state of Connecticut's costs of approximately $65,000. The company also agreed to make certain disclosures regarding the software sold and certain disclosures related to sales representations made by the company.

Suntech Power to supply 4MW of modules to 'leading' Italian PV system developer Enerray (STP) 41.47 : Co announces a 4MW module supply agreement with Enerray, an Italian designer, developer and manager of photovoltaic systems. The Suntech modules will be installed by Enerray in PV systems for the rooftops of large Italian industrial complexes. "We are experiencing significant demand for the deployment of commercial rooftop solar systems," said Eng. Marco Ghirardello, CEO of Enerray. "As one of Italy's leading installers of photovoltaic systems, we have chosen to partner with the well respected Suntech brand to bring their superior quality solar products to key projects in high commerce cities across Italy."

Optimer Pharma announces peer-reviewed publication of OPT-80 Phase 1 clinical results for the treatment of clostridium difficile infection (OPTR) 6.29 : Co announces the publication of its Phase 1 clinical trials of OPT-80 in the April 2008 edition of Antimicrobial Agents and Chemotherapy published by the American Society for Microbiology. The results from these studies support the development of OPT-80 as an oral therapy for Clostridium difficile infection, or CDI. OPT-80 is currently being tested in Phase 3 clinical trials for CDI, also known as Clostridium difficile-associated diarrhea. The paper highlights previously reported data from a Phase 1a single-dose and a Phase 1b multiple-dose trial of OPT-80 for the treatment of CDI. In both the single-dose and the multiple-dose studies, OPT-80 was well tolerated by all subjects and no drug-related adverse events were observed. OPTR believes that in the Phase 1 studies, OPT-80 also exhibited a favorable pharmacokinetic profile for CDI treatment.

InterMune provides additional information on ITMN-191 MAD study results (ITMN) 17.29 : The co provides additional information on its Phase 1b multiple-ascending-dose study of ITMN-191 to facilitate comparison with previously published data describing other HCV protease inhibitors. For cohort 1, the dose was 100 mg q12h, total daily dose was 200, mean maximum reduction was 1.6 (97.49%) and day 14 median reduction was 0.7 (80.05%).

Chevron: Independent expert has proposed that Chevron pay a minimum of $7 bln and up to $16 bln to compensate for environmental contamination (CVX) 86.74 : In a long-awaited court report submitted as part of the final phase of a trial, an independent expert has proposed that Chevron (CVX) pay a minimum of $7 bln and up to $16 bln to compensate for environmental contamination caused to Ecuador's Amazon rainforest during a 26-year period when the oil giant operated a large concession in the country. If the assessment is accepted by the court, the subsequent judgment likely would be the largest civil damages awards in an environmental case. The higher $16 bln figure could result if the court accepts an "unjust enrichment" penalty tied to Chevron's actual cost savings over several

Emcore receives $4.6 mln follow-on order for concentrator solar cell receiver assemblies from Concentration Solar la Mancha (EMKR) 5.90 : The co announces that it has been awarded a $4.6 mln follow-on production order for solar cell receiver assemblies from Concentration Solar la Mancha of Manzanares, Spain. The receivers will be incorporated into CS la Mancha's 500X concentrator photovoltaic system and will be deployed throughout Spain and other locations in fully licensed and funded projects. Shipments are scheduled to commence in the September quarter and complete in early 2009.

Sinovac Biotech receives China State Food and Drug Administration approval for pandemic influenza H5N1 vaccine (SVA) 3.83 : Co announces that Panflu, its pandemic influenza H5N1 whole viron inactivated vaccine, has been granted a production license by the China State Food and Drug Administration. Panflu is the first and only approved vaccine available in China against the H5N1 influenza virus. The vaccine is approved for production solely to be supplied to the Chinese national vaccine stockpiling program and will not be sold directly to the market. The license also indicates that the Chinese government has the exclusive right to initiate Panflu vaccinations in an emergency or in the event of an influenza pandemic.

Sirtris Pharma receives orphan drug designation from FDA for Resveratrol in Mitochondrial Disorder, MELAS syndrome (SIRT) 13.85 : Co announces that the United States Food and Drug Administration has granted the co orphan-drug designation for resveratrol in the treatment of MELAS syndrome. Orphan-drug designation for resveratrol in MELAS syndrome provides Sirtris with seven years of marketing exclusivity upon receipt of FDA approval.

On The Wires (WIRES) : Trina Solar Limited (TSL) announced that the co has signed a long-term polysilicon supply agreement with a subsidiary of GCL Silicon Technology Holdings... CBIZ (CBZ) announces that it has acquired EFL Associates, effective April 1, 2008. EFL recorded approx $4.8 mln in revenue during 2007 and has approx 34 associates.

7:37AM Verifone reaffirms Q4 and FY07 revenues (PAY) 16.83 : Co expects to report revenues for the three months ended October 31, 2007, of $238.9 mln (vs $237.27 mln First Call consensus), consistent with its December 3, 2007, announcement of the anticipated restatement. For the full year ended October 31, 2007, VeriFone expects to report net revenues of $903.9 mln (vs $903.15 mln First Call consensus), also consistent with the information reported on December 3, 2007.

On The Wires (WIRES) : ZBB Energy (ZBB) announces that as part of its efforts in the alternative energy sector, its ZESS 50 fuel cell zinc energy storage system has been chosen to provide a key element in the Zero Net Energy, Future House USA home that will be on display at the Beijing Olympic Games in August 2008... CBIZ (CBZ) announces that it has acquired EFL Associates, effective April 1, 2008. EFL recorded approx $4.8 mln in revenue during 2007 and has approx 34 associates.

Lululemon Athletica beats by $0.02, beats on revs; guides FY09 EPS in-line; appoints new COO & CEO designate (LULU) 31.57 : Reports Q4 (Jan) earnings of $0.21 per share, $0.02 better than the First Call consensus of $0.19; revenues rose 101.3% year/year to $105.1 mln vs the $92.7 mln consensus. Co issues in-line guidance for FY09, sees EPS of $0.72-0.74, excluding $0.02 charge resulting from the Company's planned closure of its four stores currently operating in Japan, vs. $0.72 consensus. Co said, "While the current overall consumer environment may be challenging, the increasing loyalty of our guests and our unique positioning in the historically resilient active and healthy-lifestyle market, are providing for continued acceptance of our brand." Co also announced the appointment of Christine Day as President, Chief Operating Officer and CEO designate. Robert Meers will be retiring from his position as CEO on June 30, 2008, at which time Ms. Day will assume this role.

Verifone completes independent investigation (PAY) 16.83 : The co announces that its Audit Committee has completed its independent investigation into certain accounting and financial control matters... The restatements will correct the accounting errors that were identified by mgmt... the restatements are expected to have the following effects: 1) Previously reported inventories will be reduced by approximately $13.3 mln, $23.9 mln and $40.6 mln as compared to originally reported amounts at January 31, 2007, April 30, 2007, and July 31, 2007; Previously reported operating income will be decreased by approximately $12.5 mln, $9.8 mln and $14.7 mln as compared to originally reported amounts for the three months periods ended January 31, 2007, April 30, 2007, and July 31, 2007, principally due to higher cost of net revenues as compared to originally reported amounts. 3) The aggregate decrease in operating income for the nine months ended July 31, 2007, of approximately $36.9 million, as determined through the Audit Committee investigation, represents an increase of approximately $7.2 mln compared to the original estimate of approximately $29.7 mln reported on December 3, 2007.

Medcath announces acquisition of ownership in Arizona Cath Lab; anticipates joint venture will add ~$0.05/share in earnings annually (MDTH) 18.78 : Co announces that MedCath Partners has acquired a 27.4% interest in a joint venture known as Southwest Arizona Heart and Vascular Center. The joint venture provides cardiac catheterization lab services to Yuma Regional Medical Center under a Management and Service Agreement with the Hospital. Co acquired its 27.4% interest for $8.5 mln and anticipates that the joint venture will add ~$0.05 in diluted earnings per share annually.

LaserCard says the US Dept of Homeland Security orders its encoding solution for green cards (LCRD) : Co announced that it has received a purchase order to supply a next generation card encoding solution for the Department of Homeland Security's (DHS) U.S. Permanent Resident Card ("Green Card") Program. Under the terms of the purchase order, received from DHS U.S. Citizenship and Immigration Service's Prime Contractor, LaserCard will supply 40 next generation encoders, associated software and services. The new solution will replace "Green Card" personalization equipment which is more than a decade old. The encoders and software, valued at approximately $170,000, are expected to be delivered over the next six months.

Medical Action announces the hiring of Charles Kelly as Chief Financial Officer (MDCI) 17.00 : Co announced that it has hired Charles Kelly as its Chief Financial Officer. A certified public accountant with over 25 years of financial management experience, including more than 10 years with a big four public accounting firm, Mr. Kelly will be joining Medical Action as of April 7, 2008.

On The Wires (WIRES) : THQ (THQI) announced the acquisition of the Elephant Entertainment casual and online games business. In conjunction with this acquisition, THQI also announced an exclusive, worldwide retail publishing agreement with Oberon Media, the world's leading cross-platform casual games company. Terms not disclosed... Smith Micro Software (SMSI) announced it has received a Notice of Allowance from the U.S. Patent and Trademark Office for a patent on technology that enables management of computer systems and network infrastructure from handheld mobile devices... Aetna (AET) announced that it has closed a new $1.5 bln five-year credit facility with 21 domestic and foreign financial institutions. The new bank facility amends, restates and supersedes Aetna's existing $1.0 bln five-year revolving credit agreement.

On The Wires (WIRES) : iRobot (IRBT) disclosed in 8-k that Colin Angle, Chief Executive Officer of the Company, entered into trading plans for himself and his family trust adopted pursuant to Rule 10b5-1... General Mills (GIS) disclosed in 8-k that the Chief Executive Officer, Kendall J. Powell, established a trading plan in accordance with Rule 10b5-1... Nordic American Tanker Shipping (NAT) announced that earnings and dividend payments for the Q1 of 2008 can be expected to be appreciably higher than Q4 of 2007. NAT will be able to declare dividend to shareholders which can be expected to exceed $1.00 for the first quarter, up from previous dividend of $0.50.

Thompson Creek announces Davidson Deposit feasibility study (TC) 18.46 : The Davidson Deposit feasibility study estimates that the development of the Davidson Deposit would require a capital expenditure of C$109 mln. Molybdenum production is estimated at approximately 4 mln pounds per year over a 10-year period. The average annual cash costs are estimated to be US$9.46 per pound. The estimated pre-tax I.R.R is 20% and payback is 3.4 years from the start of full production at the assumed molybdenum prices including a long-term price of US$14 per pound starting in 2012. The sensitivity analysis shows the I.R.R would increase to 43% if molybdenum prices are 20% higher than assumed.

PMC-Sierra appoints President and CEO Greg Lang (PMCS) 6.05 : The co announces that Greg Lang has been appointed as the co's president and chief executive officer. The position will become effective immediately upon the resignation of Robert Bailey as the co's president and chief executive officer following the filing of the Company's first quarter 2008 financials Form 10-Q, which will be on or before May 9, 2008. Prior to his appointment at PMC-Sierra, Mr. Lang was president and CEO at Integrated Device Technology.

On The Wires (WIRES) : Caterpillar (CAT) announced price actions of up to 5% on products worldwide. This action includes adjustments to list prices and merchandising support. This price action is a result of current general economic conditions and industry factors... Century Aluminum Company (CENX) announced that it has entered into a joint venture agreement with Pingguo Qiangqiang Carbon to acquire a 40% stake in Baise Haohai Carbon, which owns a newly constructed carbon anode and cathode facility located in the Guangxi Zhuang Autonomous Region of south China... Cell Therapeutics (CTIC) announced that the European Medicines Agency has accepted for review CTI'Cs Marketing Authorization Application for XYOTAX for first-line treatment of patients with non-small cell lung cancer with Eastern Cooperative Oncology Group performance status 2.

Alaska Comms to acquire Crest Communications (ALSK) 12.48 : Co announces that it has entered into an agreement to purchase Crest Communications, owner and operator of the North Star submarine fiber-optic cable. ALSK expects the acquisition will provide it with a new source of cash flows: $11 mln in annual recurring revenue; an EBITDA contribution from recurring revenue of $3 mln annually; and additional non-recurring IRU sales that have averaged approximately $9 mln per annum. The co expects the Crest acquisition to provide cost synergies of approximately $1 mln per annum in operating expenses for AKORN. ALSK plans to fund a substantial portion of the purchase price from cash on hand, cash flow from operations and by drawing up to $20 million on its existing revolving credit facility.

Synnex completed acquisition of New Age Electronics, raised guidance (SNX) 22.08 : Co updated its guidance to include the New Age acquisition. New Age will contribute approximately nine weeks of financial results to SYNNEX' fiscal 2008 second quarter. Co raised Q2 guidance, sees EPS $0.51-0.53 vs $0.51 First Call consensus (up from previous guidance of $0.50-0.52 ); revs $1.845-1.915 bln vs $1.75 bln First Call consensus (up from previous revs guidance of $1.715-1.785 bln).

On The Wires (WIRES) : Nanogen (NGEN) and Thermo Fisher Scientific have entered into an agreement in which Thermo Fisher will be the exclusive provider of a variety of products used in gene-expression experiments...China Nepstar Chain Drugstore (NPD) announces that it has signed an agreement with Shenzhen Tong TransCard under which Nepstar will install TransCard POS equipment in all Shenzhen outlets to enable customers to make purchases with or recharge their TransCards... EntreMed (ENMD) announces that it has commenced a Phase 1, open-label, continuous dosing study with its oral cell cycle inhibitor, MKC-1, in patients with advanced or metastatic solid tumors.

Great Plains Energy announces definitive agreement for sale of Strategic Energy (GXP) 25.16 : Co announces that it has today signed an agreement to acquire Strategic Energy, a subsidiary of Great Plains Energy Inc. (GXP), for a total cash consideration of $300 mln. The transaction is debt free and includes an amount of working capital which will be subject to a subsequent true-up.

MF Global names J. Randy MacDonald Chief Financial Officer (MF) 10.54 +0.63 : Co announces that its Board of Directors has named J. Randy MacDonald chief financial officer. Ira Polk, who has been serving as interim CFO, will continue his role as chief administrative officer.

Argonaut Group announces offer for Heritage Underwriting Agency (AGII) 3619 : Co announces an offer to acquire Heritage Underwriting Agency in a $272 mln all-cash transaction.

UAL Corp advises customers of some delays and cancellations today (UAUA) 23.13 : United Airlines is informing customers traveling on April 2, 2008 on United's Boeing 777 aircraft that they may experience flight delays or cancellations as a result of a functional check being performed on the aircraft. As part of a regular review of maintenance records, the co discovered that the functional test that checks the firing system on one of the five bottles in the cargo fire suppression system on the Boeing 777 was not performed, and this was voluntarily disclosed to the FAA. United is in the process of checking this part of the system. This system is regularly tested as part of the pre-flight safety checks. These checks are related to compliance. United will not operate these aircraft until the tests are complete.

Pharsight Corp announces that two 'Top 25' global pharmaceutical companies have become customers for its Drug Model Explorer software (PHST) 5.15 :

S&P futures vs fair value: -7.5. Nasdaq futures vs fair value: -12.0. :

European Markets : FTSE...5852.40...-0.20...0%. DAX...6738.03...+17.70...+0.3%.

Asian Markets : Nikkei...13189.36...+532.94...+4.2%. Hang Seng...23872.43...+734.97...+3.2%.

6:13AM Frontline announces resignation of Chief Executive Officer Bjorn Sjaastad (FRO) 47.07 :

On The Wires (WIRES) : Double Eagle Petroleum (DBLE) announces it reached a record level of gross sales volumes for a month from its Catalina Unit in the Atlantic Rim of Wyoming... SVB Financial (SIVB) announces that it has priced $200 mln aggregate principal amount of 3.875% convertible senior notes due in 2011.

Baidu.com appoints Peng Ye as Chief Operating Officer, effective April 25, 2008 (BIDU) 273.25 :

On The Wires (WIRES) : CryptoLogic Limited (CRYP) confirms the co will not be affected materially by a narrow vote by Dutch parliamentarians that will prevent Holland Casino from establishing an Internet gaming site... Clean Diesel Technologies, Inc. (CDTI) announces approval for the inclusion of their Purifier e4 retrofit technology in the Scottish Government Emissions Reduction Register program.

STMicroelectronics announces its Board has authorized the co repurchase up to 30 mln common shares (STM) 11.17 :

12:40AM On The Wires (WIRES) : Capital Corp of the West (CCOW) annnounces co is in the process of finalizing its audit and preparation of the 2007 Form 10-K and was unable to complete this in time for the extended deadline following its filing of Form 12b-25... CastlePoint Holdings (CPHL) doubles its quarterly dividend to $0.05 per share.

OMNOVA Solutions reports Q108 results (OMN) 3.75 : Reports Q1 (March) loss of $0.07 per share, $0.03 worse than the First Call consensus of ($0.04); revenue increased 15.7% year/year to $190.6 mln vs the $207.0 mln consensus.

Hansen Medical prices its offering of 3.0 mln shares of common stock (HNSN) 14.58 : Co announces offering was increased to 3.0 mln from 2.5 mln shares.

Alpha Natural Resources announces pricing of concurrent offerings of common stock and convertible notes (ANR) 41.29 : Co prices its 3,636,363 common share offering at $41.25/share. Co also announces pricing of its $250 mln aggregate principal amount of 2.375% convertible senior notes due 2015.

AM Monotype Imaging announces secondary offering of 6.0 mln shares of common stock (TYPE) 15.42 :