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Samsung projects Q1 profit jump of 53%. Samsung (SSNLF.PK) has estimated that its Q1 operating profit surged 53% to 8.7T won ($7.7B), beating estimates for 8.38T won, while sales rose 15% to 52T vs consensus of 53T. Samsung didn't provide a break-down by unit, nor a net profit figure. Seoul-based analyst Lee Sei Cheol said: "In addition to the Galaxy S3, mini models sold well in emerging markets, including China, Brazil and India."

H-P Chairman Ray Lane quits following sustained criticism. H-P (HPQ) Chairman Ray Lane has resigned after coming under fierce criticism from investors and shareholder advisory firm ISS, which opposed Lane's recent re-election as chairman because of his role in the Autonomy debacle. Lane will remain as a director, although John Hammergren and G. Kennedy Thompson, who were also the target of disgruntled shareholders, are departing. H-P's shares were flat pre-market.

Jobs growth seen

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Eurozone enters double-dip recession. Eurozone GDP contracted by an expected 0.1% on quarter in Q3 after falling 0.2% in Q2, marking the bloc's entry into its second recession since 2009. Germany's growth fell to 0.2% from 0.3%, signalling that the eurozone's debt crisis is fast catching up with the country, with Commerzbank economist Joerg Kraemer forecasting that GDP will shrink in Q4. On the bright side, France's economy expanded 0.2% vs expectations for zero growth.

BP, DOJ near deal over Gulf oil spill. BP (BP) has confirmed that it's in talks with the Department of Justice to settle all criminal charges and claims by the SEC in connection with the 2010 Gulf oil spill. BP may reportedly pay a record criminal fine - i.e., at least $1.3B - and admit criminal misconduct. However, the deal, which could be announced today, isn't expected to cover federal civil

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Investors give thumbs down to $48B BAE-EADS merger. BAE Systems (BAESF.PK) dropped 6.2% and EADS (EADSF.PK) 8.65% in European trading following news yesterday that they're in advanced talks to merge in a deal that would create a company worth $48B and supersede Boeing (BA) as the world's largest aerospace and defense firm. Reuters reports that the U.S. is unlikely to block the deal, although the FT reckons it could face much regulatory aggravation.

Not everyone gasping for the Fed's liquidity rush. After a failed QE1, then a failed QE2, legendary investor Jim Rogers isn't sure why the Fed wants to announce a QE3 after the FOMC's policy meeting today. "They'll look like fools," he exclaims. Add into the mix that Europe is also bent on initiating its own version of QE, the Western world has just guaranteed itself "unanimity towards mutual destruction,"

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Cisco profit jumps 56%. Cisco Systems' (CSCO) FQ4 earnings beat expectations as net profit soared 56% to $1.9B, EPS came in at $0.47 and revenue edged up 4% to $11.69B. Cisco increased its quarterly dividend by 75% to $0.14 a share and promised to return at least 50% of free cash flow to investors. The company gave guidance that was in line with Wall Street, and it was upbeat about some parts of the U.S. market but not about Europe. Shares were +5.6% premarket.

Corzine & Co. set to escape criminal charges. Authorities are unlikely to file criminal charges against Jon Corzine and other top MF Global (MFGLQ.PK) executives after concluding that weak risk controls and chaos rather than fraud led to the disappearance of around $1B in customer money, the NYT reports. Regulators are still mulling civil action, while Corzine & Co. also

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MF clients to be repaid in full - trustee. MF Global Holdings' (MFGLQ.PK) brokerage clients will eventually get their money back, Louis Freeh, the trustee carrying out the parent company's liquidation has predicted. Freeh made the forecast in written testimony for a Senate hearing scheduled for today. James Giddens, the trustee for MF's brokerage unit, expects lawsuits against former MF officials, including CEO Jon Corzine, as a way to recover money for creditors.

Chevron suffers setback in $18B Ecuador ruling. Chevron (CVX) has failed to convince a NY federal judge to find unenforceable an $18B judgment against the company by an Ecuadorian court. However, the judge did leave an injunction against the award in place, pending further litigation. The $18B verdict was for alleged pollution in the Amazon rain forest. As part of his ruling, the judge found that an expert report recommending billions in damages

Near zero interest rates are wreaking havoc among FCMs. I recall reading something about that. Heck, I remember writing something about that about a week ago.

There is a puzzle here, though. Why don't commissions vary inversely with interest rates? The FCM business is pretty competitive, meaning that FCMs should earn the competitive rate of return, i.e., roughly speaking, revenues should equal costs plus a fair return on capital. If interest rates rise, generating more revenues for FCMs, competition should lead them to cut commissions in order to attract customers. Conversely, if interest rates fall, reducing FCM revenues, competitive pressures should induce them to raise commissions. Why have commissions remained at rock bottom levels despite the loss of revenues from interest on customer funds that the FCMs hold and invest?

One possible explanation is that due to technological change (e.g., the expansion of electronic trading) there is excess

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Net worth of U.S. family plummets. The net worth of the American family plunged 39% from 2007-2010 to $77,300, the lowest since 1992 as the financial crisis destroyed 18 years of gains. Leading the decline was a 42.3% dive in the average equity in Americans' homes. "What you see is an economy that’s really very, very stressed for the bottom 60%-70%,” Streettalk's Lance Roberts tells Bloomberg. Now read: Housing Optimists May Have To Wait Another Decade »

Spanish, Italian yields well into danger territory. Yields on 10-year Spanish and Italian bonds have continued yesterday's climb, which came after the euphoria over Spain's bank bailout dissipated. Spain was +15 bps to 6.65% and Italy +10 bps to 6.13%, although Monument Securities' Marc Ostwald argues that the two countries aren't comparable. "Italy is in fact rather like Japan rather than...Spain, Ireland, Portugal, let alone Greece." (Quoted by the

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Spain sends out mayday signal. Spanish Treasury Minister Cristobal Montoro today said that because of the risk premium, Spain is shut out of the markets. Montoro added that the EU should help capitalize the country's banks, departing from PM Mariano Rajoy's line that it doesn't need external help. A big test will come tomorrow, when Spain will try to sell €1B-€2B in bonds. Opinion: Spain and the banking union.

Marriott to go on hiring spree. Marriott (MAR) intends to hire up to 10,000 workers in the U.S. this year and open 150 hotels, Chairman Bill Marriott tells Bloomberg, despite concerns about the U.S. recovery and the eurozone debt crisis. Having agreed to buy Gaylord Entertainment last week, Marriott is also planning to make further acquisitions. Opinion: Hotels back on a profitable path.

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MF Global's liabilities estimated at $3B. MF Global Holdings Ltd.

In our update last week (Market Update: The New Trading Range And How To React) we discussed the trading range on the S&P 500 from approximately 1,350 to 1,425, which corresponds to 135 to 142.5 on the SPDR S&P 500 ETF (SPY), as depicted in the chart below. Interestingly, the bottom end of this year's range was the high end of the range during the first part of last year.

Last week we expected that the market would test the bottom of the current range, which is where it spent most of the last few trading sessions. The market will now either maintain the range or breakdown from it. We are preparing for either scenario to play out and will adjust our portfolios accordingly.

(Click to enlarge)

(Source: www.FreeStockCharts.com)

Before we discuss our investing plan, we want to provide an update on some key data points that we

Facebook plans IPO for May. Facebook (FB) intends to hold its IPO in May, The Wall Street Journal reports, with the company planning to release another amended S-1 prior to its offering after filing one on Tuesday. The speculation adds to reports that Facebook has halted the trading of its shares on secondary exchanges.

German jobless rate hits record low. German unemployment dropped to 6.7% in March, the lowest since comparable records began in 1998, from 6.8% in February. The decline came despite the eurozone debt crisis and indicates that the German economy may be recovering from its dip. And while new orders fell 16% in February on an annual basis, industry group VDMA expects production to pick up again in H2.

Sanctions bite as Iranian oil exports fall sharply. By the end of March, Iran's oil exports are expected to have fallen by 300,000 barrels

Tyco to merge $4.9B Flow Control unit with Pentair. Tyco's (TYC) Flow Control unit will merge with Pentair (PNR), a provider of fluid-processing solutions, in an all-stock deal that values Tyco Flow at around $4.9B, including debt. After the closing, Tyco's shareholders will have 52.5% of the combined Flow-Pentair business and Pentair holders 47.5%. The pro-forma 2012 revenue of the new entity is forecast at $7.7B.

MF's O'Brien talks to DOJ but not to Congress. MF Global (MFGLQ.PK) Assistant Treasurer Edith O'Brien, who's at the center of attempts to find out what happened to client money at the firm, has provided Department of Justice investigators details about transactions that dipped into customer funds, The Wall Street Journal reports. However, O'Brien is still expected to invoke the fifth when she appears before a House panel today.

AMR seeks to throw out staff contracts. The parent of American

We believe trading is combat. We only wish that the men and women in command of financial intuitions in our country felt the same way. They don't.

On the night of April 26, 1952, the aircraft carrier USS Wasp was conducting flight operations approximately seven hundred miles west of the Azores. Escorting the Wasp as part of the carrier group was the USS Hobson, a small destroyer-minesweeper. The escort ship is there for rescue purposes in the event of a crash or a man overboard. The Wasp turned into the wind to recover her aircraft from night operations.

It was dark, and the ships were running with minimum lights. This was protocol for a carrier at night back then for two reasons. The Cold War was just underway, and Soviet subs were doing their best to keep track of our carriers. Sailing with minimum lights

Seeking Alpha passes 1M members. We are excited to announce that Seeking Alpha has passed 1M registered users, a doubling of size in less than two years. And as we're adding over 2,000 members per market day, we expect to double it again in even less time. Congratulations to founder and CEO David Jackson, the team at Seeking Alpha, and, most importantly, to our fantastic contributors and users. To honor the occasion, we've published a list of SA authors' favorite articles (here) and a letter from David Jackson (here), with more celebratory surprises on the site to follow...

Obamacare goes to the Supreme Court. The Supreme Court is due to today begin hearings on the constitutionality of President Obama's healthcare overhaul in a case that could have implications for dozens of companies in the sector, and could define the limits of Congress' power. A

Yahoo sues Facebook. Yahoo (YHOO) is suing Facebook (FB) in federal court, alleging a number of FB's products infringe on its patents and trespass on technologies that are "the foundation of our business." Among the charges is that Facebook's News Feed is an infringement of Yahoo's Customization Patents. In addition, privacy is addressed by using Yahoo's Privacy patents.

HSBC denies Asia exit. HSBC (HBC) says it has no plans to exit any markets in Asia, denying earlier reports that it might pull out of seven countries in the region as it focuses on higher growth. According to the Financial Times, HSBC is considering the sale or closure of seven Asia-Pacific retail businesses in order to focus on six key Asian growth markets outside of Hong Kong (Australia, China, India, Indonesia, Malaysia and Singapore) and two long-term strategic markets (Taiwan and Vietnam).

Fed fights Bernanke subpoena. The

By Yigal Grayeff and the Market Currents team

Greek endgame may be in sight. Matters look like they could be soon coming to a head over Greece as European finance ministers hold back on the country's €130B rescue package, putting the nation under pressure to offer further cuts or exit the euro. But with the economy in its fifth year of recession and possibly even in a "death spiral," and Greek workers striking today over austerity, how much more can the country take?

P&G looks to end Pringles sale. Procter & Gamble (PG) plans to try to terminate the sale of its Pringles business to scandal-plagued Diamond Foods (DMND), Bloomberg reports, but must determine how best to exit the deal and whether to expect pushback from Diamond. If the sale goes forward, P&G shareholders will end up owning a majority of Diamond's stock, which fell

By Yigal Grayeff and the Market Currents team

Facebook may file for IPO today. Facebook is expected to file a preliminary prospectus for a $5B IPO this morning, IFR reports, although the company could eventually raise that lower-than-anticipated figure. Facebook plans to finalize the listing process by May, and while it's unclear what its valuation will be, recent trading in the social network's stock on private exchanges indicates a market cap of over $80B.

Sony names Kazuo Hirai as CEO. Sony (SNE) has appointed frontrunner Kazuo Hirai to replace Howard Stringer as CEO in April, with Stringer to remain at the company as Chairman. Hirai is credited with reviving Sony's loss-making videogame business; following his appointment, the struggling company is expected to accelerate its strategy of aligning its consumer-electronics operations with its music, movie, games and services businesses.

NYSE to stay American after EU blocks tie-up.

By Yigal Grayeff and the Market Currents team

ABB to buy Thomas & Betts for $3.9B. Swiss engineering group ABB (ABB) has agreed to buy U.S. electrical components maker Thomas & Betts (TNB) for $3.9B in a deal that will expand ABB's North American distribution network and ramp up its presence in the market for low-voltage equipment. The $72-a-share offer represents a 24% premium to Thomas' close on Friday.

Exxon to sell Japan refining unit for $3.9B. Exxon (XOM) has agreed to sell its Japanese refining and marketing business to TonenGeneral Sekiyu for $3.9B. Under the deal, Exxon will lose its controlling stake in TonenGeneral but will retain a 22% voting share. The divestment underscores a larger trend of oil companies shedding refining businesses and turning to exploration in the hope of boosting profits.

Large U.S. bank exposure to GIIPS $80B+. Five major banks - JP

Back in July of last year, I did a series of articles about companies with relatively cheap valuations that were expecting the fastest earnings growth in 2012 (See 1, 2, 3, 4). These companies offered the potential for huge stock gains if earnings estimates were met.

Unfortunately, just as I wrote those articles the global economy went into a tailspin due to the European debt crisis and stock prices collapsed along with the earnings estimates of the majority of those stocks

Now as global stock markets appear ready to head upwards, it seemed like a good time to revisit this list. It is always a good idea to check the outcome of a previous concept. How did the stocks perform? Were earnings estimates met? What about the valuation now?

The general answer is that earnings expectations were horribly off leading to general underperforming of the group.

By Yigal Grayeff and the Market Currents team

Fitch threatens Italy but reassures France. Fitch has warned that it could downgrade a number of eurozone countries, including Italy, by one or two notches by the end of the month. The agency called Italy the greatest risk to the euro amid the sovereign-debt crisis. However, Fitch said it won't cut France's AAA credit rating during 2012 unless there's a major economic shock.

Alcoa swings to net loss. Alcoa (AA) got the Q4 earnings season off to a disappointing start, missing expectations with an adjusted EPS loss of $0.03 vs. a profit of $0.24 last year despite revenue rising to $6B from $5.65B. Nonetheless shares were +1.9% premarket. The company, a bellwether for the economy, suffered from falling aluminum prices, and higher energy and transport costs. Looking ahead, CEO Klaus Kleinfeld predicted that production cutbacks would lead to

By Yigal Grayeff and the Market Currents team

German industrial orders plummet. German new industrial orders for November have indicated more woe for the eurozone's economic engine with a monthly fall of 4.8%, well below a rise of 5% in October and a forecast of -1.7%. The euro had been higher against the dollar today but was flat premarket. Separately, eurozone unemployment remained unchanged in November at 10.3%.

Hacker group threatens Symantec. A hacker group called Lords of Dharmaraja has posted on the Internet a file explaining how Symantec’s (SYMC) flagship Norton Antivirus program is designed to work and threatened to release the source code. Symantec says that the post is an outdated document from 1999 but that "there is no actual source code present."

CFTC turns scrutiny onto CME over MF's bankruptcy. The CFTC has widened its probe of MF Global's (MFGLQ.PK) collapse to include