Last week the S&P closed at a 17-month high at around 1,150. After living through excessive volatility, investors get scared and are decreasing allocations to equity and searching for yield in this near zero rate environment. Investors had never seen anything like this before and lots of them are more focused on preserving capital today.

Main REITs

This weekend I have a bigger than usual list of Alert HQ BUY signals based on daily data so I began to browse through them. Clicking on the column headings allows you to sort by that data element. I started by sorting by Signal Strength. I was surprised to see a bunch of REITs at the top of the list.

After spending last fall in a trading range, many REITs surged into the end of December and then fell back in the new year.They now appear to be making an effort to climb back to new highs.

Q4 2009 Earnings Call

January 27, 2010 10:00 a.m. ET

Boston Properties (Baa2/A-/BBB)

Highlights from the BXP Q4 2009 release:

FFO for the year ended December 31, 2009 were $606.3 million, or $4.63 per share basic and $4.59 per share diluted. This compares to FFO for the year ended December 31, 2008 of $403.8 million, or $3.37 per share basic.

• Toyota halts U.S. sales. In an unprecedented move, Toyota (TM) has halted U.S. production and sales of eight models, including its top-selling Camry and Corolla models, on mounting concerns that defects might cause the cars to accelerate unintentionally. The eight models represented 57% of Toyota's 2009 sales. A Toyota spokesman didn't specify how long the sales suspension will last, but the move will no doubt be costly both in terms of lost revenue and damage to a once-strong reputation for safety.
• Geithner defends position on AIG. Geithner testifies today before a congressional oversight panel investigating AIG's (AIG) counterparty payments. In prepared testimony, Geithner denied any role in disclosures about the payments. He also defended the decision to pay full price on AIG's credit default swaps, saying protracted demands for concessions could have triggered devastating credit downgrades, causing an AIG collapse with 'catastrophic' consequences for the economy.
• Burgeoning budget. The deficit will come in at $1.35T in 2010, according to a report by the Congressional Budget Office, a slight drop from the $1.4T deficit in 2009 but still high enough to make the budget outlook 'bleak.' Economic growth will remain 'muted' for several years and unemployment won't return to 5% until the middle of the decade. The aggregate deficit projection for the next decade is $6T, but the CBO is likely underestimating the deficit problem because of its assumption that annual spending won't outpace inflation.
• FOMC to decide on mortgage-debt purchases. The FOMC will release its statement today at 2:15 PM, and will likely acknowledge that while growth accelerated last quarter, tight credit and elevated unemployment still pose risks to the country's economic recovery. Officials are expected to keep interest rates low for "an extended period." One issue to keep an eye on is whether the Federal Reserve will stick to its plan of ending its $1.25T mortgage-debt purchase program in March; regional Fed presidents have expressed varying opinions as to whether the housing market can rebound without this extra federal support.
• Spyker saves Saab. General Motors sold its Saab unit to Spyker Cars for $400M in cash and stock, ending months of uncertainty about the Swedish brand's fate. The Swedish government will guarantee loans from the European Investment Bank which are crucial for completion of the deal.
• Berkshire joins S&P 500. Berkshire Hathaway (BRK.A, BRK.B) will be added to the S&P 500 index, replacing Burlington Northern (BNI), the railroad operator it's acquiring. In after hours trading yesterday, BRK.A +8.8% and BRK.B +7.4%. Separately, Munich Re disclosed that Berkshire's holding in the reinsurance giant had reached 3.045%, a stake valued at around $1B.
• Liberty Media wants bigger Live Nation stake. Following merger approval for Live Nation (LYV) and Ticketmaster (TKTM), Liberty Media (LCAPA) offered to buy up to 34.5M shares in the new Live Nation Entertainment at a 14% premium. If the tender offer is fully subscribed, Liberty will end up with a 34.9% stake in the company. The offer sent Live Nation up 15.6% in after hours trading.
• Nestle-Hershey tie-up? Now that the Cadbury (CBY) - Kraft (KFT) deal is moving forward, all eyes turn to Nestle (NSRGY.PK), the world's largest food group which will drop to No. 3 in the chocolate market behind Mars-Wrigley and Kraft-Cadbury. Many analysts expect Nestle to set a long-term goal to buy Hershey (HSY), which would put Nestle back in the No. 1 spot. It would also benefit Hershey, which is facing increased U.S. competition and exposure to commodity price fluctuations.
• China tries to quell fears. China said it would not try to curb Google's (GOOG) Android platform in the Chinese market, despite the ongoing showdown between Google and China over internet censorship and cyber-attacks. China also played up a comment by Bill Gates (MSFT) who called the country's internet censorship 'very limited.' The moves are meant to calm the fears of many U.S. firms concerned over 'alarming' measures against foreign high-tech firms in China.
• Greece puts hopes on China. Debt-laden Greece has turned to China to buy up to €25B ($35B) of bonds, reported the Financial Times, and has rejected the suggestion that a Chinese bank acquire a strategic stake in National Bank of Greece, the country's flagship commercial lender. Greek officials deny the report.
• Clawback clauses get new claws. Amid the bonus backlash, many banks are tightening their clawback rules. Previously, the rules were applied only to top executives or in cases of fraud. However, last week JPMorgan (JPM) expanded the provision to cover any employee who receives stock as compensation, and to cases not just of fraud but of excessive risk-taking, or even failure to report excessive risk-taking. Bank of America (BAC) will now claw back pay if profit projections fall short, and Goldman Sachs (GS) will do so in cases of excessive risk. Compensation experts say this is a step in the right direction, but worry the rules will be less effective than the banks make them seem.
• Oracle sees a new future. With its acquisition of Sun Microsystems nearly complete, Oracle (ORCL) is preparing for a significant mission shift. CEO Larry Ellison said he plans to turn Oracle into a company that's as serious about server systems as it is about business software. To that end, Oracle will hire 2,000 new sales and engineering employees, and will work on developing a line of high-end computer systems.
• Yahoo turns to profit. Yahoo (YHOO) posted better-than-expected earnings yesterday, swinging to a Q4 profit of $153M from a loss of $303M the year before. There were further signs of stabilization in advertising, and CFO Timothy Morse said product enhancements like better ad-matching technologies were helping to grow revenue. (Read Yahoo's earnings call transcript)
• Quad's colorful deal. As expected, privately held Quad/Graphics Inc. announced its plans to acquire World Color Press in an almost all-stock deal. The companies said they had not yet placed an exact value on the deal, though sources estimate it's worth $1.3-1.4B.
• Mortgage apps fall. Mortgage applications fell 10.9% vs. +9.1% last week, reported the Mortgage Bankers Association this morning. Thirty-year fixed mortgage rate rose to 5.02% from 5%.
• Seasonal sway for retail sales. ICSC retail store sales were down 2.5% from the previous week, vs. +2% prior. Sales were up 1.9% from the previous year, vs. 2.6% prior. The decline was attributed to seasonal fluctuations which magnified the effects of weather and inventory. Redbook reported a 1% Y/Y rise in chain store sales, vs. +0.9% last week. Redbook stressed that sales this time of year are thin, which accounted for the relatively soft reading.
• Mixed messages on home prices. The S&P Case-Shiller Home Price Index was down 0.2% M/M in November vs. 0% prior. On a yearly basis, prices were down 5.3%, in-line with consensus and vs. -7.3% prior. November's index marked approximately ten months of improvement in the annual data, although many markets experienced price declines that month. According to the FHFA Housing Price Index (.pdf), prices rose 0.7% M/M in November, vs. +0.6% in October. Year-on-year, prices rose 0.5%.
• Mild improvement in confidence levels. Several confidence indicators were released yesterday. The Conference Board's Consumer Confidence Index registered a small gain in January, coming in at 55.9 vs. 54 expected and 53.6 in December. Although "consumers were less dire about their income prospects than in December, the number of pessimists continues to outnumber the optimists." According to ABC's Consumer Comfort Index, confidence held steady for the third week in a row at -48, hovering a bit above an all-time low of -54. State Street's Investor Confidence Index showed a slight improvement, coming in at 104.5 in January vs. 104.3 the month before. North America was more confident than Europe, reflecting ongoing concerns about fiscal difficulties in some European countries.

Earnings: Wednesday Before Open

• Praxair (PX): Q4 EPS of $1.09 in-line. Revenue of $2.4B (+0.2%) in-line. (PR)
• Rockwell Automation (ROK): FQ1 EPS of $0.54 beats by $0.18. Revenue of $1.1B (-10%) vs. $1B. (PR)
• SAP AG (SAP): Q4 EPS of $0.67 beats by $0.01. Revenue of $3.1B (-9%) in-line. Shares +0.8% premarket (7:00 ET). (PR)
• Smith International (SII): Q4 EPS of $0.09 in-line. Revenue of $2B (-35%) vs. $1.9B. (PR)
• Tyco Electronics (TEL): FQ1 EPS of $0.47 beats by $0.08. Revenue of $2.9B (+7%) vs. $2.8B. (PR)
• WellPoint Health Networks (WLP): Q4 EPS of $1.16 beats by $0.14. Revenue of $15.1B (-2%) in-line. (PR)

Earnings: Tuesday After Close

• Altera (ALTR): Q4 EPS of $0.34 beats by $0.05. Revenue of $365M (+16%) vs. $335M. Sees Q1 revenue up 5-10% from Q4. Expects Q1 gross margins of 67.5-68.5%. (PR)
• Boston Properties (BXP): Q4 FFO of $1.04 misses by $0.02. Revenue of $378M (-3%) vs. $359M. Sees fiscal 2010 FFO of $4.10-4.25 vs. $4.10. (PR)
• Callaway Golf Company (ELY): Q4 EPS of -$0.27 beats by $0.01. Revenue of $186M (+9%) vs. $171.5M. Sees fiscal 2010 revenue of $990M-1.05B vs. $980M. (PR)
• Canadian National Railway Company (CNI): Q4 EPS of C$1.23 beats by C$0.30. Revenue of C$1.9B (-14%) in-line. (PR)
• Gilead Sciences (GILD): Q4 EPS of $0.93 beats by $0.08. Revenue of $2B (+42%) vs. $1.9B. (PR)
• Integrated Device Technology (IDTI): FQ3 EPS of $0.10 beats by $0.01. Revenue of $142.5M (-15%) vs. $140.5M. (PR)
• McKesson (MCK): FQ3 EPS of $1.19 in-line. Revenue of $28.3B (+4%) vs. $27.7B. Sees full-year EPS of $4.55-4.70 vs. $4.55. (PR)
• Molex (MOLX): FQ2 EPS of $0.24 beats by $0.02. Revenue of $730M (+9%) vs. $709M. Sees Q3 revenues of $715M-735M vs. $691M. (PR)
• Pactiv (PTV): Q4 EPS of $0.53 beats by $0.03. Revenue of $854M (-3%) vs. $849M. Sees Q1 EPS of $0.38-0.42 vs. $0.51. Expects fiscal 2010 sales growth of 7-9%. (PR)
• QLogic (QLGC): FQ3 EPS of $0.31 beats by $0.02. Revenue of $149M (-9%) vs. $147M. (PR)
• RF Micro Devices (RFMD): FQ3 EPS of $0.14 beats by $0.02. Revenue of $250M (+24%) vs. $252M. Sees full-year non-GAAP margins approaching 15%. (PR)
• STMicroelectronics (STM): Q4 EPS of $0.04 beats by $0.02. Revenue of $2.6B (+14%) in-line. Sees Q1 revenue down 7-13% from Q4, but up 35-45% Y/Y. (PR)
• Stryker (SYK): Q4 EPS of $0.82 in-line. Revenue of $1.8B (+7%) in-line. Sees fiscal 2010 revenues up 1.5-2%. (PR)
• The South Financial Group (TSFG): Q4 EPS of -$0.90 misses by $0.43. Net interest income of $81M (-12%). (PR)
• Yahoo (YHOO): Q4 EPS of $0.15 beats by $0.04. Revenue of $1.7B (-4%) vs. $1.2B. Revenue ex-traffic acquisition costs: $1.26B vs. $1.23B. Sees Q1 sales of $1.58B-1.68B vs. $1.16B. Sees Q1 income from operations of $90M-110M. Owned & operated display ad revenue up 26%; O&O search ad revenue up 4%. Free cash flow $220M (flat Y/Y). CEO Bartz: "We're pleased that the midpoint of our Q1 revenue outlook marks the first quarter of year-over-year growth in six quarters." (PR)

Today's Markets

• In Asia, Nikkei -0.7% to 10,252. Hang Seng -0.4% to 20,033. Shanghai -1.1% to 2,987. BSE -2.9% to 16,290.
• In Europe at midday, London -0.5%. Paris -0.6%. Frankfurt -0.1%.
• Futures: Dow +0.2%. S&P +0.2%. Nasdaq +0.2%. Crude flat at $74.69. Gold -0.6% to $1,091.

Wednesday's Economic Calendar

• 7:00 MBA Mortgage Applications
  10:00 New Home Sales
  10:00 Hearing: AIG Counterparty Payments
  10:30 EIA Petroleum Inventories
  1:00 PM 5-Yr Note Auction
  2:15 PM FOMC Announcement
  9:00 PM Obama: State of the Union
• Notable earnings before Wednesday's open: ABT, AAI, ATI, BA, CAT, COP, GD, HES, ITW, MNI, MWV, NYB, PX, ROK, SAP, SEIC, SII, SO, STJ, SWK, TEL, UAUA, UTX, VLO, WLP
• Notable earnings after Wednesday's close: ACF, AF, AMLN, BMC, CCI, CTXS, DRE, ETFC, EWBC, FLEX, FTNT, GMCR, ISIL, JAVA, LRCX, LSI, MUR, NE, NFLX, NSC, OI, QCOM, RYL, SYMC, TER

Seeking Alpha editors Eli Hoffmann and Jason Aycock contributed to this post.

Seeing trends in options activity has led to many great trades for me, and while looking through my nightly data set I noticed that a number of REITs showed up as having the highest put/call ratios in the market yesterday.

After some more digging I noticed that the trend was option traders hitting the bid (sellers) in February and March dated puts in a variety of stocks.

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday December 3.

Ford (F), Vornado Realty (VNO), Simon Property Group (SPG), Boston Properties (BXP), Federal Realty Trust (FRT)

Q3 2009 Earnings Call Transcript

October 28, 2009 10:00 am ET

Boston Properties (BXP) reported strong third quarter results with FFO (funds from operations) of $158.5 million or $1.13 per share compared to $132.5 million or $1.09 per share in the year-earlier quarter. Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.

During the quarter, Boston Properties placed in service a 235,000 net rentable square feet Class A office property in Reston, Virginia. Subsequent to the end of the quarter, the company placed in service a 120,000 net rentable square feet Class A office property in Princeton, New Jersey. Both the properties are currently 100% leased. Also during the quarter, Boston Properties obtained mortgage financing of $50 million collateralized by its Reservoir Place property in Waltham, Massachusetts.

• GMAC needs third lifeline. GMAC Financial Services and the Treasury are reportedly in advanced talks to prop up the auto-lender with its third helping of taxpayer money, making it the first of the stress-tested banks to need additional government capital. Treasury will likely inject another $2.8-5.6B into GMAC in exchange for preferred shares, bringing its total investment in GMAC thus far to $15.3-18.1B, for which it currently owns 35.4% of the firm. Sources say the FDIC has also agreed to backstop another $2.9B of GMAC's debt to facilitate day-to-day lending. The government's willingness to deepen taxpayer exposure to GMAC reflects the troubled lender's importance to the revival of the auto industry.
• Consumer confidence dips. A lower-than-expected consumer confidence reading sent a chill through markets Tuesday. Conference Board's index came in at 47.7, down from 53.4 a month ago, and lower than consensus estimates of 53.2. A plunge in expectations (65.7 vs. 73.3 in Sept.) led the way down. "Consumers' assessment of present-day conditions has grown less favorable, with labor market conditions playing a major role in this grimmer assessment," the group said, noting its Present Situation Index is now at a 26-year low. Analysts struggled to find an obvious explanation for the decline, but noted the drop didn't bode well for recovery hopes.
• Risk appetite withers. State Street's investor confidence index fell 10 points to 108.4, the lowest since April, with the most pronounced decline seen among North American investors (-12.8 to 101.1). European investors were also much more subdued (-9.3 to 101.8), but confidence rose among Asian investors, albeit to a level that still trails the U.S. and Europe (+2.4 to 95.3). "Institutional investors have paused to take stock," index co-developer Ken Froot said. "While the U.S. earnings season has been relatively robust so far, the number of positive surprises that have been observed in employment, retail sales, manufacturing and trade figures has diminished considerably, and this may be influencing investor risk appetite."
• Easing Hilton's towering debt load. Sources say Blackstone (BX) is in talks with lenders to shave about $5B off Hilton Worldwide's $20B debt load. Specifically, Blackstone is considering coughing up another $800M in equity to buy back debt at a discount (on top of its $5.6B original investment), and would like to extend debt maturing in 2013 to 2016. With capital markets reopening over the past six months, private-equity firms are using a variety of schemes (exchange offers, repurchases, tender offers) to refinance and extend the maturities on highly-leveraged debt taken on during the heyday, staving off default.
• Panel backs hedge-fund clampdown. The House Financial Services Committee overwhelmingly passed a bill that would require advisers to hedge funds, private equity and offshore funds to register with regulators, bringing some transparency to the loosely-policed industry. The bill, however, exempts venture capital funds and funds with less than $150M - which SEC chief Mary Schapiro warned "could come back to haunt investors in later years."
• Tackling too-big-to-fail. Rep. Barney Frank unveiled legislation to monitor and dissolve systemically critical financial institutions. Under the proposal, costs for taking over and euthanizing a failed bank would be paid for by shareholders and bondholders, with taxpayers temporarily covering the overflow until an assessment is rendered against the failed bank's surviving peers. A council of regulators - including the FDIC, Treasury, Fed and SEC - would be in charge of monitoring the conglomerates and invoking a wind-down if necessary.
• That's a good czar. While so-called pay czar Kenneth Feinberg's new rules for TARP backed firms cut compensation by about half, they also boosted base salaries by 14% to an average of $438K/year after executives complained, according to an analysis in today's WSJ. The move appears to contradict Feinberg's stated goal of tying pay to long-term performance, and "deepens the confusion and skepticism" surrounding the types of pay systems the government is promoting.
• Ford shows why it's #1. Consumer Reports' much-awaited yearly car reliability survey held few surprises, with foreign automakers dominating its top-10 list, and domestic brands prominently featured on its least-reliable tally. Scion took top spot, followed by Honda (HMC), Toyota (TM) and Infiniti (NSANY). Ford (F), at #10, was the only U.S. carmaker to make the grade. Least reliable brands were Chrysler, Cadillac, Dodge and Jeep. Media reports yesterday claimed Fiat models will drive Chrysler's turnaround efforts, but with new cars not due until 2012, it's unclear whether Chrysler has enough staying power in its balance sheet.
• Ruiz pegged as AMD insider. Sources say former AMD (AMD) CEO Hector Ruiz is the insider government officials have identified as providing nonpublic information to Galleon's insider trading scheme. Prosecutors released fragments of recorded conversations between an unnamed AMD executive and a Galleon employee in which they allegedly discuss the timing of the spinoff of AMD’s plants before the deal was announced in Sept. 2008. Ruiz hasn’t been charged, and prosecutors don’t say he profited from insider trading.
• Gloom on economy spreads. Americans are growing increasingly pessimistic about the economy after a mild upswing in September, according to WSJ/NBC's monthly poll released Wednesday. For the first time during the Obama presidency, a majority of those polled now see the country as being on the wrong track. Fifty-eight percent think the economic slide still has a ways to go, up from 52% in September, while only 29% think we've hit bottom, down from 35%.
• Mortgage apps drop for second straight week. Mortgage applications fell another 12.3% following a 13.7% drop last week, even as the average rate for 30-year mortgages inched down to 5.04% from 5.07% a week ago. Refinancing was 16.2% lower.
• Ford picks Geely. Ford (F) selected a group led by China's Geely as the preferred bidder for its Volvo unit, a senior Geely executive said. Geely and Ford will now enter into exclusive negotiations over Volvo.

Earnings: Wed. Before Open

• ArcelorMittal (MT): Q3 income of $1.59B vs. consensus of $1.78B. Sees Q4 income of $2-2.4B. "We have seen the first signs of recovery in Q3... We should continue to see further gradual improvement through 2010, although the operating environment remains challenging." Shares -0.8% premarket. (PR)
• Ashland (ASH): FQ4 EPS of $0.96 beats by $0.06. Revenue of $2.11B (-4.6%) in-line. "Demand appears to be showing some signs of growth in many end markets." (PR)
• BorgWarner (BWA): Q3 EPS of $0.15 beats by $0.05. Revenue of $1.03B (-22%) in-line. "We continue to be cautiously optimistic about Q4." (PR)
• ConocoPhillips (COP): Q3 EPS of $1.00 beats by $0.06. Shares -0.1% premarket. (PR)
• Enterprise Products Partners L.P. (EPD): Q3 EPS of $0.36 misses by $0.06. Revenue of $4.6B (-27%) vs. $4.73B. (PR)
• CenterPoint Energy (CNP): Q3 EPS of $0.31 misses by $0.01. Revenue of $1.58B (-37.3%) in-line. (PR)
• Coca-Cola Enterprises (CCE): Q3 EPS of $0.51 beats by $0.05. Revenue of $5.57B (-3%) vs. $5.71B. (PR)
• General Dynamics (GD): Q3 EPS of $1.48 beats by $0.08. Revenue of $7.72B (+8.1%) in-line. (PR)
• Goodyear Tire & Rubber (GT): Q3 EPS of $0.45 beats by $0.05. Revenue of $4.38B (-15.2%) in-line. Shares +1.8% premarket. (PR)
• Hess (HES): Q3 EPS of $1.05 vs. consensus of $0.55. Revenue of $7.27B vs. $7.75B. Shares +1.8% premarket. (PR)
• Jones Apparel Group (JNY): Q3 EPS of $0.46 beats by $0.19. Revenue of $856M (-11.3%) vs. $867M. "We are cautiously optimistic that the holiday season will generate better financial results across the industry." Shares -13.8% premarket. (PR)
• International Paper (IP): Q3 EPS of $0.37 beats by $0.13. Revenue of $5.92B (-13.1%) in-line. "At the end of Q3, we began to see some modest improvements in demand in some segments of our paper and packaging businesses." Shares +3.8% premarket. (PR)
• Lazard (LAZ): Q3 EPS of $0.41 beats by $0.04. Revenue of $431M (-1.3%) vs. $400M. Believes corporate defaults will remain at high levels, on a more global scale than during the last cycle, and therefore expects that its restructuring business will continue to be very active. (PR)
• Level 3 Communications (LVLT): Q3 EPS of -$0.10 in-line. Revenue of $916M (-14.4%) vs. $926M. Shares -4.4% premarket. (PR)
• MeadWestvaco (MWV): Q3 EPS of $0.50 beats by $0.23. Revenue of $1.63B (-10.2%) in-line. "Given continued global economic uncertainty, future results are difficult to predict." (PR)
• Newell Rubbermaid (NWL): Q3 EPS of $0.38 beats by $0.03. Revenue of $1.45B (-17.7%) in-line. (PR)
• New York Community Bancorp (NYB): Q3 EPS of $0.26 in-line. "Although certain economic data suggests that the recession has ended, the Metro New York region we serve continues to be under duress." (PR)
• Nexen (NXY): Q3 EPS of C$0.23 beats by C$0.08. Revenue of C$1.1B (-50.4%) vs. $924M. Shares -0.1% premarket. (PR)
• Nomura (NMR): Q2 net income of ¥27.7B ($303M) vs. consensus of ¥11.5B. Revenue of ¥355B vs. ¥258B last year. Resumes ¥4/share dividend. (Bloomberg)
• Owens Corning (OC): Q3 EPS of $0.61 beats by $0.22. Revenue of $1.35B (-17.2%) in-line. On track to surpass $160M in cost savings this year. Shares +1.5% premarket. (PR)
• Praxair (PX): Q3 EPS of $1.02 beats by $0.02. Revenue of $2.29B (-19.8%) in-line. "Business conditions stabilized globally during the quarter... The strongest pick-up was in Asia and South America, where government stimulus programs have increased domestic demand and industrial production." (PR)
• Qwest Communications International (Q): Q3 EPS of $0.09 beats by $0.02. Revenue of $3.05B (-9.6%) in-line. Shares +3.5% premarket. (PR)
• SAP AG (SAP): Q3 net income of €435M vs. consensus of €454M. Sales of €2.51B vs. €2.63B. "While we are seeing signs of stabilization in the general environment, the market remains difficult. Q3 software and software-related service revenues came in lower than we expected mainly because of a particularly challenging environment in the emerging markets and Japan." Shares -7.6% premarket. (PR)
• Southern Company (SO): Q3 EPS of $0.99 beats by $0.01. Revenue of $4.68B (-13.8%) vs. $5.5B. (PR)
• SPX Corp. (SPW): Q3 EPS of $ beats by $. Revenue of $1.17B (-20.8%) in line. Sees full-year EPS of $3.80-4.00 vs. $3.96 consensus. "The global economic environment remains difficult and continues to impact our performance. Although some macroeconomic trends appear to be pointing toward a recovery, we expect our recovery to lag the broader economy." (PR)
• United Microelectronics (UMC): Q3 EPS of $0.08 beats by $0.04. Revenue of $853M (+11.1%) vs. $809M. (PR)
• WellPoint (WLP): Q3 EPS of $1.78 beats by $0.40. Revenue of $15.21B (+784%) in-line. Medical enrollment fell 1.5M to 35.3M, primarily due to the recession and a rise in unemployment. Shares -14.3% premarket. (PR)
• Wyndham (WYN): Q3 EPS of $0.58 beats by $0.02. Revenue of $1.02B (-17.1%) in-line. Shares +1% premarket. (PR)

Earnings: Tue. After Close

• Ace (ACE): Q3 EPS of $2.07 beats by $0.10. Revenue of $3.39B (-6%) vs. $3.33B. Expects meaningfully stronger revenue growth in Q4. Shares +2.3% AH. (PR)
• Amkor Technology (AMKR): Q3 EPS of $0.12 misses by $0.07. Revenue of $616M (-14%) vs. $604M. Sees Q4 EPS of $0.17-0.23 vs. $0.16. Shares -1.5% AH. (PR)
• Apollo Group (APOL): FQ4 EPS of $1.06 beats by $0.02. Revenue of $1.08B (+30%) vs. $1.03B. Announces an informal SEC inquiry into revenue recognition practices. Shares -19.8% AH. (PR)
• Boston Properties (BXP): Q3 FFO of $1.13 beats by $0.03. Revenue of $359M (+6%) vs. $353M. Sees Q4 FFO of $1.04-1.06 vs. $1.09. (PR)
• Century Aluminum Company (CENX): Q3 EPS of $0.45. Revenue of $229M (-59%) vs. $225M. Results impacted by $55.6M net after-tax benefit related to contract replacement. Shares +3.8% AH. (PR)
• Cephalon (CEPH): Q3 EPS of $1.62 beats by $0.21. Revenue of $549M (+10%) vs. $559M. Sees full-year sales of $2.125B-2.175B vs. $2.22B. Shares +1.4% AH. (PR)
• Chicago Bridge & Iron (CBI): Q3 EPS of $0.42 beats by $0.03. Revenue of $1B (-38%) vs. $1.1B. Shares +5.4% AH. (PR)
• Dreamworks Animation (DWA): Q3 EPS of $0.23 beats by $0.07. Revenue of $135M (-10.6%) vs. $129M. Shares +0.4% AH. (PR)
• E*TRADE Financial (ETFC): Q3 EPS of -$0.05 beats by $0.01. At-risk delinquencies declined by 10% and provision for loan losses decreased by $57M to $347M. Shares +0.6% AH. (PR)
• Fiserv (FISV): Q3 EPS of $0.92 in-line. Revenue of $992M (-5%) vs. $1.05B. Shares -2.6% AH. (PR)
• Harris (HRS): FQ1 EPS of $0.83 beats by $0.06. Revenue of $1.2B (-3%) in-line. Shares +5.4% AH. (PR)
• Illumina (ILMN): Q3 EPS of $0.17 misses by $0.03. Revenue of $158M (+5%) vs. $167M. Shares -14.8% AH. (PR)
• Integrated Device Technology (IDTI): FQ2 EPS of $0.07 beats by $0.05. Revenue of $140M (-30%) vs. $131M. Shares +4.2% AH. (PR)
• Massey Energy Company (MEE): Q3 EPS of $0.19 beats by $0.01. Revenue of $642M (-16%) vs. $677M. Shares -7.4% AH. (PR)
• McKesson (MCK): FQ2 EPS of $1.11 beats by $0.09. Revenue of $27.1B (+1.9%) vs. $26.75B. Sees full-year EPS of $4.45-4.60 vs. consensus of $4.29. Shares +1.9% AH. (PR)
• Molex (MOLX): FQ1 EPS of $0.18 beats by $0.03. Revenue of $674M (-20%) vs. $661M. Sees Q2 EPS of $0.11-0.15 vs. $0.19, including pretax restructuring charge of about $0.07 after tax. Shares -1% AH. (PR)
• Nalco Company (NLC): Q3 EPS of $0.20 misses by $0.05. Revenue of $957M (-14%) vs. $961M. (PR)
• Norfolk Southern (NSC): Q3 EPS of $0.81 beats by $0.03. Revenue of $2.1B (-29%) in-line. Shares +1.8% AH. (PR)
• Panera Bread Company (PNRA): Q3 EPS of $0.61 beats by $0.03. Revenue of $335M (+6%) vs. $334M. Same-store sales increased 3.3%. Sees Q4 EPS of $0.85-0.87 vs. $0.85, and full-year EPS of $3.05-3.15 vs. $3.04. Shares +5.2% AH. (PR)
• Pharmaceutical Product Development (PPDI): Q3 EPS of $0.32 in-line. Revenue of $341M (-13%) vs. $334M. Sees full-year EPS of $1.38-1.40 vs. $1.34, on revenue of $1.29B-1.32B vs. $1.34B. Shares +0.2% AH. (PR)
• RF Micro Devices (RFMD): FQ2 EPS of $0.13 beats by $0.04. Revenue of $255M (-6%) vs. $234M. Shares +7.1% AH. (PR)
• ValueClick (VCLK): Q3 EPS of $0.15 beats by $0.01. Revenue of $130M (-12.1%) vs. $129M. Sees Q4 EPS of $0.15-0.16 vs. consensus of $0.17 on revenue of $128-138M vs. $142M. Shares +1.8% AH. (PR)
• Visa (V): FQ4 EPS of $0.74 beats by $0.02. Revenue of $1.9B (+10%) vs. $1.8B. Sees 2010 revenue growth at lower end of 11-15% range. Sees 2011 growth of more than 20%. Shares +1.9% AH. (PR)

Today's Markets

Overseas markets moved lower Wednesday and futures are under pressure.

CreditSights analyst Craig Guttenplan believes Real Estate Investment Trusts will be one of the the biggest beneficiaries of the commercial property crisis.

Guttenplan acknowledges that “commercial real estate is a ticking time bomb waiting to explode all over the banks, insurance companies, pension funds, hedge funds, opportunity funds, private real estate owners, and basically anyone who bought or lent against commercial property with aggressive leverage at the height of the market. But, as they say, with times of great stress come great opportunities.”

Prices of Treasury coupon securities pirouetted about today as a variety of forces buffeted the market.

I think that the strongest influence on prices this week is the supply tsunami from Timothy Geithner and his acolytes ( and various subalterns) at the Treasury. So it is all about shooting the taxpayer in the big toe and padding the P & L as the year draws to a close.

Stocks discussed on the in-depth session of Jim Cramer's Mad Money TV Program, Thursday October 1.

The Next Fleet Bank: First Niagara (FNFG) CEO John Koelmel

Look out below!

I warned yesterday that the end of the quarter may well mark the end of Goldman (GS) and their Gang of 12's Global pump job and what better way to pull the rug out from under the markets than for Goldman Sachs themselves to issue a report that warns that REIT valuations seem "stretched" and they are projecting "flat to down 15% returns next year" with concerns that they are "just beginning what could be a multi-year down-cycle."

The Market Week Ahead

First, US Employment Rate Report is Friday. October is almost here. This bear market rally looks like it’s ready to reverse once they take the bull off the stage. S&P500 going to 400 like some say and I think? Europe is releasing bank stress test results. There’s talk that the US Fed might start raising rates sooner than later. I’ve been saying all along, we have not seen the lows for stocks or real estate prices yet. I see them much lower in the years ahead. Then again I could be wrong. The market always shows the way through its fear and greed social mood.

“If you look at the real estate investment trusts, or REITs, they’ve been soaring. All the real estate gets worse articles, Boston Properties (BXP) up 38% since March 30. Really, that’s the mall guys. Federal Realty (FRT), up 44% since March 30 and up 12% since the company’s great CEO Don Wood came on the show and said the worse was over. There was a big secondary. He did well on that. Those aren’t even the biggest moves. Brandywine, that’s boy dog nancy for you home gamers, a commercial real estate investment trust with class A suburban and office properties all over the country. B is worse than A, B is bad, and C is near flunking…

That’s why you’ve seen REITs move so aggressively not just shoring up the balance sheet, but they start programs to take advantage of opportunities in the future…You say there are areas that are actually strong — New Jersey, Delaware, up 36% quarter-to-quarter. That area better than anyone else in real estate investment up 31%. Metro DC, the building mentioned today made it sound so up 4%. These are not the kind of numbers I expect to see when I read scary articles about commercial real estate getting much worse.” — CNBC’s Mad Money 8/19/2009