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Crude Prices Edge Ahead

Updated from 4:05 p.m. EST

U.S. stocks were stuck near the flat line for another session Tuesday as investors failed to find any catalysts to drive the action.

The Dow Jones Industrial Average was up 4.57 points, or 0.04%, at 12,666.31, and the S&P 500 rose 1.01 points, or 0.07%, to 1448. The Nasdaq Composite added 0.89 point, or 0.04%, to 2471.49.

The market also struggled for traction on Monday, and the Dow tacked on just 8.25 points, or 0.07%, to 12,661.74, while the Nasdaq slipped 5.28 points, or 0.21%, at 2470.60.

“The overriding question for investors is whether this is a consolidation before further gains or a topping process that may lead to a long overdue period of profit-taking,” said Michael Sheldon, chief market strategist with Spencer Clarke LLC.

On the Dow, General Motors (GM) was the best performer, rising 2.2%. However, that gain was offset by Hewlett-Packard (HPQ) , which fell by 1.9%.

Meanwhile, Akamai Technologies (AKAM) was one of the worst performers on the Nasdaq, falling 5.2%. On the other hand, Nvidia (NVDA) rose 3.6%.

Roughly 2.11 billion shares changed hands on the New York Stock Exchange. Advancers beat decliners by a 5-to-3 margin. Volume on the Nasdaq topped 2.14 billion shares, with winners outpacing losers 8 to 7.

As the economic calendar is light this week, investors were hoping to find more clues about the health of the economy in several speeches from Federal Reserve officials. All three speakers Tuesday, Chairman Ben Bernanke, San Francisco Fed President Janet Yellen, and Chicago Fed President Michael Moskow, provided no comments about the economy or interest rate policy.

Treasury prices were gaining ground after Treasury Secretary Henry Paulson said that the U.S. economy is slowing to a more sustainable rate of growth. He made his comments during a speech to the House Ways and Means Committee.

The 10-year note was up 11/32 and yielding 4.76%. The 30-year bond rose 18/32 in price to yield 4.86%. The dollar strengthened against both the euro and the yen.

Commodities prices were mostly higher as a cold snap continued in the Northeast. Crude oil futures were up 14 cents to close at $58.88 a barrel, while natural gas slipped 2 cents to $7.61 per million British thermal units. Gold rose by $2.60 to $658.70 an ounce, and silver tacked on 11 cents to $13.67 an ounce.

Even though the busiest days of earnings season have passed, a few key names continue to stream in. One was Tyco (TYC) , who topped analysts’ first-quarter profit expectations and guided in line for the second quarter. Revenue for the quarter rose to $10.33 billion from $9.6 billion a year earlier and exceeded estimates. Tyco lost 62 cents, or 1.9%, to close at $32.59.

Following the prior close, National Semiconductor (NSM) cut its fiscal third-quarter sales guidance, saying revenue will drop 14% to 15% from $501.6 million in the second quarter. The chipmaker had previously forecast a decline of 8% to 11%. The stock shed 64 cents, or 2.7%, to $22.68.

At BP (BP) , lower energy prices and a drop-off in production led to a 22% decline in fourth-quarter earnings to $2.9 billion. BP slid 54 cents, or 0.9%, to $63.25.

After the close, Cisco (CSCO) reported better-than-expected profits.

Wal-Mart (WMT) made headlines again after the world’s largest retailer said it is launching a beta version of its own video download service.

On Monday, the stock rose nearly 1% after Wal-Mart said that January same-store sales rose 2.2%, higher than the retailer’s prior forecast of a 1% to 2% gain. Wal-Mart added 6 cents, or 0.1%, at $48.58.

Overseas, London’s FTSE rose 0.5% at 6346, and Frankfurt’s Xetra DAX tacked on 0.1% at 6876. Tokyo’s Nikkei climbed 0.4% overnight to 17,406, and Hong Kong’s Hang Seng added 1% to 20,655.

Stocks Add To Early Gains On Highside Volume

Solar stocks and computer manufacturers led a double-shot jump in early trading, squeezing indexes higher.

At 11:09 a.m., the Nasdaq led with a 0.6% gain. The S&P 500 and the NYSE composite rose 0.1% while the Dow climbed 0.4%. Mid caps saw some selling pressure, with the S&P 400 slipping 0.1%. Volume was sharply lower on both exchanges.

Most Asian markets moved higher, led by Hong Kong’s Hang Seng index which jumped 2.5%. The Shanghai composite eked up 0.6%. Tokyo’s Nikkei 225 slipped 0.6% as the yen gained strength vs. the dollar, pressuring export-based stocks. European stocks were mixed. A run-up in mining stocks, and news reports of a possible bidder for troubled mortgage lender Northern Rock buoyed London’s FTSE 100 a slight 0.1% in afternoon trading.

Advances and declines ran nearly even on both exchanges.

Dry bulk carrier fleets continued their recent run-up after Dryships () announced a 20 cent per share quarterly common dividend. The stock gained 3.43 t0 85.08 on huge volume, putting it 30% above its most recent 65.48 buy point. That buy point came on a pullback to its 10-week moving average. The smaller Excel Maritime () also gapped up, adding 3.12 to 53.79. Aegean Marine Petroleum (), a supplier of fuels and lubricants to ship fleets, also gapped up. It gained 2.10 to 33.80. That pushed the stock to 43% above its most recent buy point of 23.65, also on a pullback.

Handheld navigational instrument maker Garmin () jumped 3.94 on solid volume, to 112.64. The stock hasn’t paused since a May breakout, and is now 89% above a 59.80 buy point, on its most recent pullback to its 10-week line.

GM () shares were up 1%, but off their highs. A UAW local leader in Lansing, Mich., said about 11 a.m. that a strike vs. the auto giant is on.

Among the few leaders got caught up in downside selling, FC Stone () dropped 1.35 to 46.75. The six-month-old stock has been consolidating since July, and is 27% off its July 17 peak.

10:15 a.m. Update: Stocks Little Changed In Early Trade

By Vincent Mao

Stocks were mixed early Monday, seeking direction after the prior week’s gains.

At 10:09 a.m. ET, the Dow, NYSE composite and Nasdaq were mostly unchanged. And the S&P 500 eased 0.2%.

A number of Chinese-based companies did well in the opening minutes.

PetroChina Co. () gapped up and flew 14.76, or 8%, to 181.98. The oil and gas firm won approval to list is A shares in Shanghai. It currently trades in Hong Kong and New York.

Baidu.com () added 10.40 to a new high of 295. The Chinese Internet search firm has surged nearly 40% in the past two weeks. Baidu is on pace to extend its win streak to 11 sessions.

JA Solar Holdings () added 1.58 to a new high 47.52. The Chinese maker of solar cells is now 16% past a 41.09 buy point of a cup-with-handle pattern.

However, China Southern Airlines () gapped down, plunging 11.80, or 13%, to 79.03 on huge trade. China Southern shares had skyrocketed in recent weeks.

Harman International () gapped down 6, or 8%, to 79 on heavy trade. The maker of audio and electronic products guided fiscal Q1 and full-year 2008 results below consensus estimates. Due to a number of factors, including rising costs, it pegged first-quarter earnings of 50 cents a share vs. views of $1.02. Full-year income is expected at $4.14 vs. views of $4.87.

On Friday, Kohlberg Kravis Roberts and Goldman Sachs’ () private equity arm backed out of plans to buy Harman.

9:15 a.m. ET Update: Futures Point To Mixed Open

By Vincent Mao

Stock futures pointed to a mixed open Monday. Nasdaq futures rose 2 points vs. fair value, the S&P 500 fell 0.5 point, while the Dow rallied 18 points.

Foreign markets were mostly higher. Hong Kong’s Hang Seng index surged 2.5%. The Shanghai composite rose 0.6%. But the Nikkei slipped 0.6%. The FTSE 100 added 0.4%.

The greenback hit yet another record low against the euro. Gold futures traded higher. And crude oil futures slipped below the $81-a-barrel mark as storm fears eased.

There are no economic reports for the session. But several Fed officials including Chairman Ben Bernanke are slated to give speeches.

Key reports this week: existing home sales Tues, durable orders Tues, GDP Wed, new home sales Wed, personal income and spending Thurs and PCE deflator Thurs.

BHP Billiton Ltd. () jumped 6% in pre-open trading. The mining firm is expected to announce a large gold find at its Olympic Dam mine in South Australia.

EMC () rose 4% before the bell after getting upgrades from Bear Stearns and Citigroup. Both cited the data storage firm’s own prospects as well as a way to play hot recent IPO VMWare (). EMC still owns 86% of the virtualization software maker.

General Motors () climbed 3% in the preopen. The United Auto Workers union gave the auto giant an 11:00 a.m. ET deadline for a new contract. If a deal isn’t reached, workers will go on a nationwide strike.

Apple () rose 2% in the premarket after Citigroup raised its price target to $185.

Meridian Gold () agreed to be bought by Yamana Gold () after a raised offer. Yamana will pay about $3.56 billion in cash and stock for the Canadian mining firm.

Stocks Mixed In Early Trade

Weakness in tech issues spilled over into the broader markets in early trade Friday, leaving stocks mixed.

At 9:59 a.m. EDT, the Nasdaq was down 0.8% and the Dow lost a fraction. A 6% slump in Microsoft () weighed on both indexes. The NYSE composite rose 0.4% and the S&P 500 0.1%.

Volume was tracking a tad higher on both exchanges.

Deckers Outdoors () gapped up and surged 18.65 to 136.10. Late Thursday, the footwear maker said Q1 profit rose 18% to 86 cents a share, a dime above views. Sales climbed 34% to $97.5 million, also above views. Results were boosted by solid demand for its Ugg and Simple brands. The company raised its full-year outlook for profit and revenue growth of 27% and 31%, respectively, from 20% and 25%.

Potash Corp. of Saskatchewan () rose 2.21 to 196.11 in fast trade. Credit Suisse raised the Canadian fertilizer maker’s price target to 210 from 157. Potash slumped 10% Thursday despite reporting strong earnings and raising its full-year outlook.

Visa () gapped up and gained 3.09 to a new high of 75.35. The credit card issuer reports fiscal Q2 earnings Monday. Analysts see profit rising 92% to 46 cents a share. Visa came public in March at 44.

On the downside, NBTY Inc. () gapped down below its 200-day and 50-day moving averages. Shares plunged 7.31, or 21%, to 26.93 in busy trading. After Thursday’s close, the nutritional supplements maker said fiscal Q2 earnings fell 19% to 67 cents a share, hurt by higher costs. That was also 8 cents below views.

Western Digital () gapped down and sliced its 50-day moving average, shedding 2.73 to 28.52 in heavy trading. Late Thursday, the hard drive maker delivered a 132% surge in fiscal Q3 earnings and a 50% gain its sales. But it guided fiscal Q4 profit below views.

9:15 a.m Update: Stocks Set For Split Open

By VINCENT MAO

Stock futures pointed to a mixed open Friday following another round of earnings reports. Nasdaq futures eased a fraction of a point vs. fair value, S&P 500 futures climbed 4 points and Dow futures rose 58 points.

Crude oil bounced back from Thursday’s 2% loss after militants attacked another oil pipeline in Nigeria. The June contract rose 94 cents to $117 a barrel.

The sole piece of economic data is the revised University of Michigan sentiment index due out at 10 a.m. EDT.

Baidu.com () rallied 6% in the pre-market on strong sales and a bright outlook. Late Thursday, the Chinese Internet search firm delivered Q1 earnings of 67 cents a share, excluding items, up from 32 cents a year before and in line with views. Sales more than doubled to $81.9 million, above views. It also guided Q2 sales ahead of analysts’ estimates.

Citigroup upgraded Baidu.com shares to buy from hold and raised its price target to 415 from 350. Baidu is forging a new base and might be adding a handle.

American Express () climbed 4% in the pre-open despite a dip in its latest quarterly earnings. After Thursday’s close, the Dow component reported Q1 profit of 81 cents a share, down 5% from a year ago but in line with views. The credit card firm’s bottom line was hurt as more cardholders missed payments amid rising prices and tough economic conditions. Provisions for loan losses rose 52% to $881 million.

Group mate and recent IPO Visa () rallied 5% in the pre-market.

Fellow Dow member Microsoft () fell 4% in the pre-market on lower-than-expected sales. Late Thursday, the software giant reported fiscal Q3 profit of 47 cents a share, down 4% from a year earlier but 3 cents above views. Sales were mostly flat at $14.45 billion vs. views for $14.5 billion. The company guided current quarter results in line with estimates.

CF Industries () also lost 4% in the pre-open after it missed views. After Thursday’s closing bell, the fertilizer maker delivered first-quarter earnings of $1.99 a share, excluding items. That was

Stocks Down, But Paring Losses

The major stock indexes lingered in the red Friday, but they have come off session lows.

At 10:50 a.m. ET, the Nasdaq tumbled 2.1%. It was down 2.5% earlier. The NYSE composite lost 1.3%. Meanwhile, the Dow and S&P 500 gave up 1.2% each.

Volume was tracking slightly lower on both exchanges.

In economic news, the University of Michigan sentiment index dropped to 75 vs. 80.9 in October, the lowest since Oct. 2005.

Comtech Group () gapped below its 50-day moving average, dropping 3.49, or 17% to 17.35. The Chinese mobile handset maker got hit despite reporting better-than-expected earnings late Thursday.

JA Solar Holdings () gave up 7.36 to 62.20 in brisk trading. The solar cells maker is also down, despite stellar third-quarter earnings and sales. It also raised its full-year sales outlook.

On the upside, Merck () gapped up, gaining 1.85 to 56.62. The drug maker said it settled the bulk of its Vioxx lawsuits for $4.85 billion.

Manitowoc () jumped 1.06 to 42.96, nearing its 50-day line. Shares of the crane maker got a lift on news that it’ll be added to the S&P 500 index after the close Nov. 15.

Atheros Communications () bucked the tech sell-off. Share rose 0.76 to 32.60. The chipmaker rebounded after finding support at its 50-day moving average.

10:15 a.m. ET Update: Stocks Stumble At Open; Techs Hit Again

By Vincent Mao

Stocks were down big in early Friday trading.

At 10:01 a.m. ET, the Nasdaq dived 2.1%, taking out Thursday’s low. The NYSE composite dropped 1.6%, the S&P 500 1.4% and Dow 1.3%.

Tech and Internet leaders continued to bleed.

Research In Motion () gapped down 6.74, or 5%, to 117.74.

Google () fell hard for a third straight session. Shares gapped down, tumbling 28.31 to 665.81.

VMware () gapped down and dropped 6.88 to 85, sinking further below its 50-day moving average.

Meanwhile, Geo Group () gapped down, falling 4.07, or 14%, to 28.08 in huge trading. The prison operator reported Q3 earnings and sales ahead of views and it announced new contracts. But the company’s Q4 guidance disappointed.

On the upside, Dolby Laboratories () gapped up and rallied 4.30 to a new high of 43.72. Late Thursday, the audio technology firm smashed views with a 77% jump in fiscal Q4 earnings. It also guided full-year 2008 profit and sales ahead of analysts’ estimates.

9:15 a.m. ET Update: Stocks Set For Early Slide

By Vincent Mao

Stock futures pointed to a sharply lower open Friday amid continued credit woes. Nasdaq futures dropped 39 points vs. fair value, S&P 500 futures lost 18 points and Dow futures gave up 24 points. And that’s off their lows.

In economic news, the trade balance for September narrowed to -$56.3 billion, the lowest in over 2 years. Economists expected -$58.5 billion.

The preliminary read on the Michigan sentiment index for will be out at 10 a.m. ET. A dip to 80 is expected.

The dollar hit a new record low against the euro and was weaker against the yen.

Wachovia () is down about 3% in pre-open trading. The bank said in an SEC filing that its portfolio of collateralized debt obligations fell by $1.1 billion in October. And due to continued weakness in the credit markets, it plans to boost its provision for loan losses to between $500 and $600 million.

Merrill Lynch (), Citigroup () and Morgan Stanley () all have announced write-downs recently.

Gmarket () tumbled 11% in the premarket. Late Thursday, the South Korean ecommerce firm reported Q3 profit of 13 cents a share, up 8% from a year ago, missing views. Sales, which were affected by a holiday, also came in shy.

Qualcomm () lost 7% in pre-open trading. After Thursday’s close, the wireless communications firm delivered fiscal Q4 earnings and sales ahead of expectations. But it guided full-year 2008 profit from $2.03 to $2.09 a share, below views of $2.18. That’s partly due to a patent dispute with Nokia (), which is affecting royalties.

Priceline.com () jumped 15% in pre-market trading. Late Thursday, the online travel firm trounced views with a 119% surge in third-quarter profit. Sales grew 33%, the best in many periods.

Perini () rallied 8%. Late Thursday, the construction services firm reported a 142% surge in Q3 earnings and a 61% rise in sales. It also guided raised its full-year earnings outlook to $3.30 to $3.45 a share vs. views of $3.10. Sales are pegged from $4.4 billion to $4.6 billion, also above views.

Bridgeway Beats Market With Numbers

Bridgeway’s aggressive growth funds aim to beat the market without taking any additional risk.

Since 1998, Bridgeway Aggressive Investors 1 has met its goal every year except 2006.

But fund manager John Montgomery doesn’t fret much about turning in a gain of just 7.1%. “It was a bad year for us on a relative basis,” Montgomery said. “But so what? Our bogey is three years.”

Aggressive Investors 1 going into Wednesday was up 12.01% year to date vs. 10.94% for its mid-cap growth peers tracked by Morningstar and 6.19% for the S&P 500. The fund produced an average annual return of 15.34% for the past three years vs. 12.97% for its peers and 11.43% for the S&P 500.

Bridgeway Aggressive Investors 2 was up 16.48% for the year and cranked out an average annual return of 17.74% the past three years.

Bridgeway Aggressive Investors 1 and 2 are pretty much the same, except Aggressive 2 shuns low-liquidity names, which tend to be small caps. Aggressive 1 is closed to new investors.

Montgomery uses several quantitative models to find stocks, including high-octane growth, deep-value large caps, growth at a reasonable price, momentum, and a combination of growth and technicals.

Taken together, the models are designed to find growth stocks trading at cheap prices.

“We use a proprietary measure of valuation that nobody uses,” said Montgomery. “It’s more sophisticated and is more than just a ratio.”

The six models work independently of each other. The fund buys the best ideas from each model.

Montgomery’s strategies remain the same regardless of market direction. He may not even know whether the market was up or down on a given day, nor does he care.

“If you’re invested in the market, it’s a long-term deal,” said Montgomery. “You should yawn through the downturns.”

Fund Turnover

Portfolio turnover comes out to 100% to 125% a year.

The company aims to keep costs low. All research is quantitative, so there are no expenses from company visits. Montgomery only listens to conference calls if he doubts the quality of the data provided by a company.

The firm donates half its fees to charity. More than $1 million has been donated to the firm’s pet causes: peacemaking and reconciliation, fighting genocide, community development, education, and Third World development such as potable water projects and microfinance.

Aggressive 1 has an expense ratio of 1.58%. Aggressive 2 charges 1.12% of assets a year.

Both funds’ biggest winner this year, Crocs, () is also among the top five largest holdings in both funds. Quarterly filings show both funds bought the stock in the third quarter of 2006. Shares of the specialty shoe maker jumped a whopping 113% year to date and 287% in the past 12 months.

On June 18, Crocs finalized a deal with comic book publisher Marvel Entertainment () to create a line of shoes that feature Spider-Man, X-Men, the Fantastic Four, the Incredible Hulk and Captain America. That day, Wedbush Morgan analysts raised Crocs’ 2007 and 2008 earnings estimates and rated the stock as a strong buy.

Crocs opened its first U.S. store in Santa Monica, Calif., this month.

The stock gapped lower Wednesday on nearly twice its average daily volume, though it finished in the upper half of its daily range.

Big Lots () accounts for nearly 6% of total assets in each fund. Filings show shares of the discount chain were added in Q3 of last year. Big Lots’ shares have climbed 30% this year and 83% in the past 12 months.

First-quarter earnings doubled from the year-ago period and topped analysts’ estimates by 30%. Sales overall rose 3%, while same-store sales sales at stores that have been open for at least a year gained 4.9%.

Big Lots has a $600 million stock buyback program; it bought back $13.7 million in shares in the first quarter. In addition, it repurchased $100 million in stock in a guaranteed share repurchase program.