Word of the Day

Exchange-Traded Fund

In the wide and varied family of the thousands and thousands of funds out there, the exchange-traded fund is one of the more consumer-friendly ones.

Unlike mutual funds, exchange-traded funds, or ETFs, behave more like stocks. You can buy into an ETF at any time, and sell it whenever you feel like it. And like a stock, an ETF's value can rise and fall--depending on what the ETF is invested in.What do ETFs invest in? Well, they're typically linked to an index like the Dow Jones Industrial Average or the S&P 500. So, if you had an ETF that trades the same companies that make up the Dow or the S&P, it will rise and fall in value pretty much the same amount as the Dow or S&P.

You can also buy ETFs that invest in other types of products, like bonds, currencies, gold or other commodities. The ETF market has grown considerably in the past few years, so there is no shortage of ETFs to invest in.

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Wednesday, August 06, 2008

Stocks In Focus For Thursday

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MarketWatch

SAN FRANCISCO -- Among the companies whose shares are expected to see active trading in Thursday's session are Sara Lee, Warner Music, and Vonage.

Sara Lee (SLE) is expected to report fourth-quarter earnings of 26 cents a share, according to analysts surveyed by FactSet Research.

Warner Music Group (WMG) is projected to post a loss of 16 cents in the third quarter, according to analysts surveyed by Thomson Reuters.

Analysts polled by Thomson Reuters are predicting Vonage Holdings Corp. (VG) to report a loss of 6 cents a share in the second quarter.

Assured Guaranty (AGO) is forecast to post earnings of 49 cents a share in the second quarter, according to analysts surveyed by FactSet Research.

Analysts are estimating Blockbuster Inc. (BBI) to report a loss of 20 cents a share in the second-quarter, according to a survey by FactSet Research.

Consolidated Edison (ED) is likely to report second-quarter earnings of 50 cents a share, according to analysts polled by FactSet Research.

Hertz Global Holdings (HTZ) is expected to post earnings of 27 cents a share in the second quarter, according to analysts surveyed by FactSet Research.

MetroPCS Communications Inc. (PCS) is projected to post earnings of 16 cents a share in the second quarter, according to analysts surveyed by FactSet Research.

MF Global (MF) is forecast to report first-quarter earnings of 21 cents a share, according to analysts surveyed by Thomson Reuters.

Analysts polled by Thomson Reuters are projecting PMI Group (PMI) to report a loss of $1.79 a share in the second quarter.

Analysts are estimating Sirius Satellite Radio (SIRI) to post a loss of 7 cents a share in the second quarter, according to FactSet Research.

Barr Pharmaceuticals (BRL) is likely to report second-quarter earnings of 54 cents a share, according to analysts surveyed by FactSet Research.

Crocs Inc. (CROX) is forecast to report second-quarter earnings of 6 cents a share, according to analysts surveyed by FactSet Research.

A number of high-profile international companies are expected to report earnings overnight. In Asia, Japan's Toyota Motor Corp. (TM) and China's Lenovo Group (992) will release first-quarter earnings. In Europe, U.K.'s Barclays PLC (BCS) and Switzerland's Nestle SA (NSRGY) will provide mid-quarter updates while German-based Deutsche Telekom (DT) , the parent of T-Mobile, is scheduled to report second-quarter earnings.

After Wednesday's closing bell, American International Group (AIG) reported a $5.36 billion second-quarter net loss late Wednesday as the insurance giant was hit again by write-downs and impairments on mortgage-related exposures. The net loss was $2.06 per common share. A year ago, AIG reported net income of $4.28 billion, or $1.64 a share. The quarterly net loss included $5.57 billion of unrealized market valuation losses on AIG's super senior credit default swap portfolio. See full story

Watch list

Advance Auto Parts Inc. (AAP) reported a fiscal second-quarter net income of $75.4 million, or 79 cents a share, up from $68.4 million, or 64 cents, in the year-ago quarter. Revenue rose 5% to $1.23 billion from $1.17 billion a year ago. Analysts polled by FactSet Research had predicted the auto parts retailer would earn 72 cents a share on $1.2 billion in sales.

Allianz Group (840400) reported its second-quarter net income fell to 1.54 billion euros ($2.37 billion) from 2.14 billion euros in the second quarter of 2007. On a per-share basis, the German financial services group earned 3.44 euros, down from 4.85 euros a year earlier. Its second-quarter operating profit totaled 2.1 billion euros, down from 3.29 billion euros in the year-earlier period. Revenue slid 9.5% to 22 billion euros. Analysts surveyed by Thomson Reuters had forecast earnings of 2.69 euros a share on revenue of 23.88 billion euros. Allianz also lowered its operating profit growth outlook, noting that it is unable to meet its long-term compound annual growth rate of 10%. See full story

Avis Budget Group Inc. (CAR) reported its second-quarter net income fell to $15 million, or 15 cents a share, from $24 million, or 23 cents a share, in the year-ago period. Revenue increased to $1.58 billion from $1.52 billion a year ago, said the car rental company. Analysts surveyed by FactSet Research had forecast Avis to earn 8 cents a share on revenue of $1.5 billion. The company said it sees 2008 revenue exceeding 2007 revenue of $6 billion. Analysts expect $6.14 billion.

Hot Topic Inc. (HOTT) said its July sales at stores open at least one year fell 2.1%. Analysts polled by Thomson Reuters, on average, had expected same-store sales to drop 1.3%. Total July sales increased 1% to $56.2 million. The retailer also revised its second-quarter net loss outlook to a range of a penny to 2 cents a share from 2 cents to 4 cents a share previously. Analysts surveyed by FactSet Research are expecting the company to report a loss of 3 cents a share.

Murphy Oil Corp.'s (MUR) president and chief executive, Claiborne Deming will retire on Dec. 31. He will be succeeded by David Wood, currently executive vice president of worldwide exploration and production operations. Deming will remain on Murphy's board and will succeed William Nolan as chairman of the executive committee while Nolan will remain chairman.

Nationwide Financial Services Inc. (NFS) reported its second-quarter net income fell to $85.4 million, or 62 cents a share, from $197.3 million, or $1.37 a share, in the year-ago period. Results for the latest quarter include non-operating realized investment losses of 29 cents a share. Revenue slid to $1.08 billion from $1.17 billion in the second quarter of last year. Analysts surveyed by FactSet Research estimated a quarterly profit of $1.15 a share on revenue of $1.13 billion. The financial services company also separately announced that Nationwide Mutual Insurance will buy all of Nationwide Financial's outstanding publicly held Class A common stock at $52.25 a share for a total of about $2.4 billion.

Oil refiner Sunoco Inc. (SUN) reported its second-quarter net income fell to $82 million, or 70 cents a share, from $509 million, or $4.20, a year ago. Excluding one-time items, income was $61 million, or 52 cents a share. There were no special items in the year-ago quarter. Revenue rose to $16.08 billion from $10.76 billion. Analysts surveyed by FactSet Research predicted the company would post earnings of 72 cents a share on $12.47 billion in revenue.

VeriSign Inc. (VRSN) saw its net losses widen in the second quarter to $68 million, or 35 cents a share, from a net loss of $4.7 million, or 2 cents a share, for the same period last year. Excluding charges related to restructuring, the company said it would have earned $50 million, or 25 cents a share, for the recent period. Revenue grew to $303.2 million compared to $259 million last year.