Today's Stories for 7/22/08

Wachovia (WB) Post a $8.86 billion loss in the second quarter, slashing its dividend, and cutting 6,350 jobs after losses tied to mortgages soared. But this this into perspective, WB has less than a $25 billion enterprise value.

Stock is down over 10.5% to $11.80.

WB released news last night that they will quit the wholesale lending business. My theory is if a company releases bad news within the quiet period before earnings, earnings will be BAD. It tells me they are simply trying to stretch out the news over a series of days. True to theory, this report was just awful. I am surprised not to have heard of them raising cash this Q. The acquisition the company completed last year of California-based Golden West seem to be the bulldozer that is clearing shareholder value. Although non-performing assets are "only" 2.41%, this continues to be a must sell until they raise boatloads of money and/or break the company apart.

Time to take profits in Circuit City (CC) at $2.30. 15% gain in a retail stock in this terrible market is a gift- don't give it back!

Natural Gas breaks below $10 for the first time in a long time. Good news for stocks like Owens-Illinios (OI) which is up slightly today to $46.43 but up almost $1.00 from low of the day.

Big news for Caterpillar (CAT):

Caterpillar's 2Q profit rises 34 percent as stronger sales outpace material, freight costs PITTSBURGH (AP) -- Caterpillar Inc.'s second-quarter profit jumped 34 percent as stronger international sales outpaced higher raw material and freight costs for the maker of backhoes and other heavy equipment.

The Peoria, Ill.-based company on Tuesday reported profit of $1.11 billion, or $1.74 per share, for the three months ended June 30, compared with $823 million, or $1.24 per share, a year earlier.

The results easily beat Wall Street expectations.

Quarterly revenue rose 20 percent to $13.62 billion from $11.36 billion, with sales shifting outside North America. Caterpillar generated 60 percent of quarterly sales and revenues outside North America, up from 55 percent a year earlier.

Analysts polled by Thomson Financial, on average, expected profit of $1.54 per share on revenue of $12.69 billion.

Because price increases outpaced material and freight costs, I see continued pricing power in those 2 sectors. Steel stocks seems strong and so do the rails like CSX.

Wal-Mart (WMT) rallies 2.34% to $58.65. This stock has faced a lot of resistance in the $59-60 range. If you got into this stock as a quick trade, it is time to start scaling out. If you're in as an investment, I am still bullish on WMT- they are doing brilliant things with their stores.

First Solar (FSLR) is down 3.7% to $270.80. I am still bearish on this stock. I realize that California is a huge catalyst but I think that California may have one of the largest budget shortfalls in the Union with the current housing market. Also, the slow down in Europe should definitely effect FSLR given most of their business come from a new major clients from Germany.