• Circuit City Stores Inc. (CC) announced yesterday (Monday) that Chairman, Chief Executive and President Philip Schoonover would resign from all posts, effective immediately. Schoonover was the subject of increasing criticism as Circuit City posted slipping financial results over the past year. Vice Chairman James Marcum will serve as acting Chairman and CEO, Reuters reported.

• Microsoft Corp. (MSFT) yesterday (Monday) announced a $40 billion share repurchase program. The buyback plan – the largest ever on record – is slated to run through September 2013, MarketWatch reported. Microsoft gained 24 cents on the news to close at $25.40 on an otherwise down market day.

• McAfee Inc. (MFE) agreed to buy Secure Computing Corp. (SCUR) in a deal valued at $465 million. The second-largest maker of security software plans to expand its product line for protecting corporate networks and e-mail systems, Bloomberg News reported. The price of $5.75 per common share is a 27% premium over Secure Computing’s closing price on Friday.

• Electricite de France SA (PINK: ECIFF) yesterday (Monday) announced that it had offered to purchase Constellation Energy Group Inc. (CEG) for $6.2 billion, a 32% premium over Warren Buffett’s offer. The offer, made in conjunction with private equity firms KKR & Co. (KKR) and TPG Capital LP, was not accepted due to Buffett’s MidAmerican Energy Holdings Co.’s promise of an immediate $1 billion cash infusion. “The offer accepted provided immediate liquidity and a strategic transaction that we think is executable,” Constellation Chief Executive Officer Mayo Shattuck said on the call. “That, amongst other variables considered, represents a superior offer.”

• Moody’s Investors Service (MCO) yesterday (Monday) downgraded the financial strength rating of Washington Mutual Inc.’s (WM) main bank subsidiary to “E,” its lowest rating, saying the bank’s capital is insufficient to absorb its mortgage losses, The Associated Press reported. Moody’s also cut its rating on WaMu’s preferred stock further into junk status to “Ca” from “B2.”

• CarMax Inc. (KMX) said yesterday (Monday) that second-quarter earnings fell 78%, as a weak economy, high gas prices, and losses the company’s financing arm proved too much to overcome. Earnings for the quarter ended Aug. 31 fell to $14 million, or 6 cents per share, from $65 million, or 29 cents per share, last year. Total sales fell 13% to $1.84 billion from $2.12 billion a year ago.

• Sallie Krawcheck, head of Citigroup Inc’s (C) wealth management unit, will step down from the company, The Wall Street Journal said yesterday (Monday). According to the report, Citigroup will move the wealth management unit under the umbrella of its institutional clients group.

• Legg Mason Inc. (LM) yesterday (Monday) denied a report by The New York Post that it plans to go private to escape tumultuous markets and a deepening credit crisis. “While we don’t normally comment on market rumors, in this uncertain time we want to be clear that The New York Post story is not true and Legg Mason’s strategy has not changed,” Legg Mason spokeswoman Mary Athridge said in a statement.

Source: Global Investing Roundups Tuesday, September 23rd, 2008

NEW HIGHS OF NOTE LAST WEEK

Halliburton (HAL)… oil services
Patterson-UTI (PTEN)… oil services
Carbo Ceramics (CRR)… oil services
Atwood Oceanics (ATW)… oil services
Key Energy Services (KEG)… oil services
National Oilwell Varco (NOV)… oil services
Spectra Energy (SE)… gas pipelines
U.S. Steel (X)… you guessed it
Schnitzer Steel (SCHN)… scrap steel
Fluor (FLR)… infrastructure
Quanta Services (PWR)… infrastructure
Crude oil, Natural gas, Gasoline, Corn, Soybeans, Cocoa

NEW LOWS OF NOTE LAST WEEK

JetBlue (JBLU)… airline
US Airways (LCC)… airline
Continental Airline (CAL)… airline
MGM Mirage (MGM)… casinos
Boyd Gaming (BYD)… casinos
Wynn Resorts (WYNN)… casinos
Las Vegas Sands (LVS)… casinos
Monarch Casinos (MCRI)… casinos
Winnebago (WGO)… RVs
Thor Industries (THO)… RVs
Fleetwood Enterprises (FLE)… RVs
Goodyear Tire (GT)… tires
News Corp (NWS)… media
Hershey (HSY)… candy
Playboy (PLA)… eye candy
American Express (AXP)… credit cards
Capital One Financial (COF)… credit cards
International Gaming (IGT)… gambling machines
Circuit City (CC)… landfill stuffing continues to suffer
Veolia Environnement (VE)… world’s largest water stock
Honeywell (HON)… conglomerate
General Electric (GE)… conglomerate
United Technologies (UTX)… conglomerate
XM Satellite Radio (XMSR)… satellite radio
Legg Mason (LM)… asset management
Callaway Golf (ELY)… golf equipment
Whole Foods (WFMI)… expensive groceries
General Motors (GM)… read the letter from the Chairman
Lead, Nickel

Source: Brian Hunt’s Market Notes Monday, June 30, 2008

No active discussions have been held between the two companies, but Microsoft has been on the prowl since withdrawing its bid for Yahoo Inc. (YHOO).

Last year, Microsoft bought a 1.6% stake in Facebook Inc. for $240 million, has expressed an interest in buying the site over the past three years. But Facebook’s Chief Executive, Mark Zuckerberg, has been reluctant to sell, opting instead to work towards an initial public offering.

Facebook, with more than 70 million users, drew 109.2 million visitors in March, according to comScore Inc., an improvement of 240% from a year ago. The company expects between $300 million and $350 million in revenue this year, up from $150 million last year, the Journal reported.

A tie-up with Facebook is one of the options Money Morning previously identified as an avenue Microsoft could pursue as a means of drawing consumer traffic and advertisers to its online services.

The company may also look to Time Warner Inc.’s (TWX) AOL or News Corp.’s (NWS) Fox Interactive Media business units. Many analysts have also suggested Yahoo and Microsoft might return to the bargaining table. Legg Mason Inc. (LM) fund manager Bill Miller is one of those analysts.

“I’m more puzzled by Microsoft’s not going up to $37 than Yahoo’s wanting to walk away,” Miller said told Bloomberg News. “If they want to be a viable competitor, I would expect them to come back.”

Microsoft withdrew its bid for Yahoo Saturday after the country’s second largest web portal turned down its $33 a share, $47.5 billion offer.

At midday in New York, the blue-chip Dow Jones Industrial Average Index was down 45.43 points (-0.36%), to trade at 12,567.00. The tech-laden Nasdaq Composite Index decreased 12.87 points (-0.54%), to reach 2,351.96. And the broader Standard & Poor’s 500 Index shed 5.84 points (-0.43%), to hit 1,366.70.

“We’ll be lucky to see earnings be flat for the year and we’ll probably see earnings decline,” Steven Bleiberg, who helps manage about $6 billion as head of global investment strategy at Legg Mason Asset Management (LM) in New York, said in an interview with Bloomberg Television. “Ultimately you’ve got to have earnings growth, that’s the driver, and I just don’t see it happening. There are so many negative signs out there.”

Washington Mutual Inc. (WM) led financial shares lower as the thrift was forced to slash its dividend even after a $7 billion cash infusion, which was more than the $5 billion expected.

Aluminum manufacturer Alcoa Inc. (AA) dropped after announcing a 50% reduction in earnings after Monday’s close. Advanced Micro Devices Inc. (AMD) shares dropped after announcing a 22% decline in sales.

“Ultimately we’re still in a bear market, and it’s going to take some more digestion and some more sideways movement to get out,” Doug Sandler, chief equity officer at Riverfront Investment Group, told MarketWatch.

In overseas markets, Japan’s Nikkei Index reversed Monday’s gains with a loss of 199.80 points to close at 13,250.43. Hong Kong’s blue-chip Hang Seng Index had a 267.07-point decline, to close at 24,311.69.

European bourses were down with the Paris-based CAC40, London’s FTSE 100, Madrid’s IBEX 35 and the Frankfurt-based DAX all posting losses.

Source:http://www.moneymorning.com/2008/04/08/midday-market-update-stocks-head-lower-on-weak-first-quarter-earnings/