MARKET BEAT, August 24

In Friday’s first-half, a couple of decent reports countered by extended market and beach-like conditions have the bulls and bears baking in directionless and lazy summer trade. As of 10:45 ET the S&P500 “SPYder” () and Naz’100 () are each fractionally higher by .08% to .12% on conditions suitable for hedge hogs.

On the officially sanctioned “we’re so nervous and waiting” side of investment decisions, durable orders and housing data relieved some early anxieties, well sort of. The former came in well-above expectations with an increase of 5.9% versus forecasts of 1.0%, reversing light premarket weakness into an equally tepid show of strength. Additionally, an intraday report on new home sales showed a gainer of 870K versus a forecasted 1.4% drop to 820K annually adjusted units. Unfortunately, while no “R” word today is being muttered by an overly tanned and likely sunning CEO from Countrywide (), another “R” word is also M.I.A., namely “relief” from very lethargic and doggish summer conditions.

On the credit front, some bullish-sounding news, well sort of, is hitting the tape. A day after worried investment bankers were seen backing down from Home Depot’s () not done as of yet building supply unit sale, an even fresher story suggests that for $1.2 billion less, a handshake might be possible. Investors for their part are showing some relief that “something is better than nothing”, with shares of HD up .40 cents at 34.42.

Earnings reports are light and mixed, but some retailers are providing investors with a reason to shop. Ann Taylor () is tacking on 1.80 to 31.44 after posting a two-cent beat of .50 cents, announcing a share buyback of $300M and offering upbeat guidance for the second half of 2007. Gap Stores () is up .93 cents after beating estimates by two-cents, upping its buyback by $1.5B, raising FY07 guidance to match analysts’ forecasts and implementing an aggressive cost cutting program.

Elsewhere on the corporate landscape, Marvell () is nearing 52-week lows, down 2.05 at 15.80. The semiconductor concern missed estimates with a surprise quarterly loss of .10 cents-a-share on sales growth of about 14% to $657M, while beating expectations by $12M. The shortfall was attributed to increased spending on R & D and slightly leaner gross margins. For the bulls and obviously a minority player today, the company did up its revenue guidance to $710M and above Street forecasts of $693M.

And finally, are the bulls really having it their way Friday? Burger King () served up investors .27 cents a share on strong sales. However, after receiving an out-the-gate bid, the results, which also fell short of estimates by a penny, are finding “I’ll have a shake with that” move, with shares down 1.02 at 23.90.

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INDICES & MARKET MOOD

The dog days of summer have kind of, sort of arrived. Half way through the Noon Balloon, investors are finding a second day of well-deserved, well-respected profit-taking just too much too bear as the major averages move to their best levels of the session. Gains though are still limited to the fractional and “inside” variety with footprints in the sand heavier than today’s volume levels. There’s not much to add on top of yesterday’s words of caution and paring down of endorphin levels associated with the bull at this juncture. Well, that’s not entirely true. There is today’s freshly baked Growth Stock report, which if investors are so lucky, they can hopefully enjoy alongside other mandatory summer reading material.

Chris Tyler
Staff Writer & Options Strategist
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The information offered here is based upon Christopher Tyler’s observations and strictly intended for educational purposes only, the use of which is the responsibility of the individual.