Special Reports

Here is a recap of the top news items from this week on Wall Street:

1. Data on producer and consumer prices this week showed that concerns related to inflation may have previously been overdone. PPI for February actually fell 0.6%, better than the 0.2% drop economists had been expecting, while CPI for the month was flat. Traders received mixed signals, however, as India's Reserve Bank chose to be one of the first central banks to raise key lending rates this week.

2. As promised by Fed Chairman Ben Bernanke, the Federal Reserve said Tuesday that it will hold key interest rates at record lows while the U.S. economy recovers and the labor market stabilizes. The Fed did, however, give a slightly brighter picture of the future as it said the job market is stabilizing, following a statement in January when the it said that the erosion of the labor market was easing. The Fed also added that, in an encouraging sign, businesses are spending more on equipment. The Fed still cautioned that consumer spending could continue to be weighed down by the high unemployment rate, sluggish income growth, lower wealth and tight credit.

3. On Friday Boeing (NYSE: BA) announced that it plans to accelerate the planned production programs for its 777 and 747 jetliner units, as the company is seeing increased customer demand in the recovering aircraft market. Specifically, Boeing will raise the number of 777's per month from 5 to 7 over the next 6 months and the number of 747's from 1.5 to 2 units. The stock rose about 1% on the news.

4. Shares of Nike (NYSE: NKE) surged about 5% on Thursday as the company reported better-than-expected Q3 results. Quarterly earnings came in at $1.01 on sales of $4.74 billion, which compares to the analyst consensus of $0.89 in earnings and $4.6 billion in sales. Also key to the earnings, Nike said that worldwide futures orders rose 6% ex-currency, which compared to the analyst estimate of up 2.4%.

5. Continuing recent week's move lower, shares of Palm (Nasdaq: PALM) tumbled almost 30% on Friday as even a recently-lowered sales outlook couldn't prepare investors for such horrendous Q3 results. The adj-loss came in at 61c, versus the consensus which was looking for a loss of 42c, on sales of $366 million. The maker of the Pre said it shipped 960,000 smartphones during the quarter, however, sell-through languished at around 400,000 units.

6. Traders cheered a deal at Teva Pharma (Nasdaq: TEVA) this week, bidding the stock up by more than 5% to close the week. On Thursday the world's largest maker of generic drugs announced a tentative agreement to purchase German generic drugmaker, Ratiopharm for 3.625 billion euro.

7. Shares of Phillips-Van Heusen (NYSE: PVH) jumped nearly 10% on Monday of this week as the company announced a deal to purchase Tommy Hilfiger for $3 billion. Private-equity firm Apax Partners will receive 1.92 billion euro in cash and 276 million euros' worth of Phillips-Van Heusen common stock.

8. Google (NASDAQ: GOOG) is being rumored to having decided to depart China sometime in April, as an announcement from the Internet giant is expected on Monday, according to a China Business News report on Friday. A business agent for Google's China unit was cited by the news report stated that the search engine company had yet to confirm its plans to close its operations in the country early in April. Shares of Google finished this week about 3% lower than last Friday's close.

9. After pricing at around $12 per share on Monday, shares of Financial Engines (Nasdaq: FNGN) surged more than 50% to close around $18 on Friday.

10. Apple (Nasdaq: AAPL) announced this week the passing of a director, Jerry York. York had been known for his work at many other company's including Chrysler and Kirk Kerkorian's Tracinda. York, age 71, suffered a brain aneurysm late Wednesday and pronounced dead early Thursday.

The Trading Radar highlights key earnings and economic announcements for tomorrow's trading session:

Before The Market Opens
Earnings:

China TransInfo Tech (Nasdaq: CTFO) - consensus EPS $0.22
GigaMedia (Nasdaq: GIGM) - consensus loss $0.04
Tiffany & Co (NYSE: TIF) - consensus EPS $1.13
Williams-Sonoma (NYSE: WSM) - consensus EPS $0.73

After Market Closes:
Earnings:

Phillips-Van Heusen (NYSE: PVH) - consensus EPS $0.59

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Notable ETF Movers of the Day :

Gainers

• PowerShares DB US Dollar Index Bullish (NYSE: UUP) up 0.81% to $23.74. Seeing upside from uncertainty in Europe as tensions between Germany and Greece rise, and Greece may need to talk to the IMF for assistance.
  
  
• iPath S&P 500 VIX Short-Term Futures ETN (NYSE: VXX) up 2.22% to $22.57. The CBOE VIX is seeing some upside today after hitting low after low. Also options are expiring.
  
  
• iShares MSCI Thailand Invest Mkt Index (NYSE: THD) up 1.57% to $46.70. Shares are up though the country appears to be dividend at election time. Exports from Thailand rose 23..2% to $14.4 billion Y/Y for February 2010. Additionally, the baht made its sixth consecutive weekly advance.

• Energy Select Sector SPDR (NYSE: XLE) down 2.02% to $56.80. As oil is down today, energy stocks are continuing a downward slide. In the spotlight is Nexen, Inc. (NYSE: NXY) which announced a discovery in the Gulf of Mexico today.
  
  
• United States Oil (NYSE: USO) down 2.25% to $39.02. The dollar is "strong-like-bull" today, and putting some pressure in on oil prices. Some believe that today, due to no real new economic news, is a good day for sellers to capitalize on gains.
  
  
• Claymore/MAC Global Solar Energy (NYSE: TAN) down 2.43% to $8.03. Initially triggered by Trina Solar (NYSE: TSL) announcing a 7.9 million common share follow-on order, now sees some weakness with SunPower (Nasdaq; SPWRA) as the company reported earnings that were off what the Street expected, and alluded to some accounting problems.
  
  
• Semiconductor HOLDRs (NYSE: SMH) down 1.94% to $27.31. Shares in the semi's are showing some weakness today, along with the broader market as the Philadelphia Semiconductor Index is also down about 1.9% today, with nothing really leading the charge back up.

A.P. Pharma, Inc. (NASDAQ: APPA) 52.2% LOWER; today announced that it received a Complete Response Letter from the U.S. Food and Drug Administration regarding its New Drug Application for APF530 in the prevention of both acute and delayed onset chemotherapy-induced nausea and vomiting. APF530 is a long-acting formulation of granisetron utilizing the Company’s proprietary Biochronomer™ drug delivery system. A conference call has been scheduled for Friday, March 19, 2010 at 9:00 a.m. Eastern Time.

Gentium S.p.A (Nasdaq: GENT) 37.4% HIGHER; shares are surging higher this morning on no news. Volume is already more than 15x normal. Notably, shares have broken over the $2 level today.

Addus Healthcare, Inc. (NASDAQ: ADUS) 24.4% LOWER; reports Q4 adjusted EPS of $0.07, versus the analyst estimate of $0.20. Revenue for the quarter was $65.7 million, which compares to the estimate of $66.52 million.

Palm (NASDAQ: PALM) 18.1% LOWER; reports Q3 adj-loss of $0.61, versus the analyst estimate of ($0.42). Revenue for the quarter was $366 million, which compares to the estimate of $316.19 million. Shipped 960,000 smartphones during the quarter. Sees Q4 sales of about $150 million, which compares to the Street estimate of $305.8 million. This morning the stock has been downgraded at Kaufman and Morgan Joseph.

City Telecom (Nasdaq: CTEL) 17.7% HIGHER; no news today except that the company's CEO rang the opening bell at the NASDAQ this morning.

BankAtlantic (NYSE: BBX) 15.9% LOWER; the stock is continuing lower today following 6 straight sessions of upside on 3/10 through 3/17. Shares fell about 12% yesterday.

PolyOne Corporation (NYSE: POL) 13.2% HIGHER; today announced expectations for first quarter 2010 revenue and earnings performance. Here is the full report.

The Medicines Company (Nasdaq: MDCO) 12.9% LOWER; has lost its bid to extend AngioMax patent term.

China Armco Metals (Nasdaq: CNAM) 11.4% HIGHER; shares appear to be bouncing off the 20-day SMA today. The stock has already surpassed its normal full-day trading volume. Not hearing any company-specific news.

Lloyd's (NYSE: LYG) 7.9% HIGHER; the company issued an update on current trading late last night, calling 10-WK trading performance "strong."

RXi Pharma (Nasdaq: RXII) 6.7% HIGHER; momentum and technical traders are likely buying the stock today on a possible breakout. Shares have not trading above the $7 range since late 2008.

To get this report daily visit http://www.streetinsider.com/entities/Unusual+11+Mid-Day+Movers.

• Icahn announced today that the offer by certain of his affiliated entities to purchase up to 13,164,420 common shares of Lions Gate Entertainment Corp. (NYSE: LGF) has been amended to provide that the Icahn Group is now offering to purchase UP TO ALL of Lions Gate's outstanding common shares. In addition, the expiration date of the Offer has been extended to April 30, 2010.
  
  The amended Offer is conditioned on, among other things, there having been validly tendered and not withdrawn a number of Lions Gate common shares which, together with the common shares already owned by the Icahn Group, would constitute at least 50.1% of Lions Gate's common shares (taking into consideration options and restricted stock). The Icahn Group has the right to waive this condition and any other condition, subject to applicable law. In addition, the amended Offer is conditioned on: (i) all rights issued or issuable under the poison pill adopted by Lions Gate's board of directors on March 11, 2010 having been cease-traded, found to be illegal or unenforceable, redeemed by the board, or otherwise eliminated; and (ii) the receipt by the Icahn Group of all government or regulatory approvals necessary to complete the amended Offer (including Investment Canada Act approval) on terms and conditions satisfactory to the Icahn Group in its reasonable judgment.
  
  The Icahn Group has determined not to increase the previously announced Offer price of $6.00 per share in cash. The Offer price is $1.15 higher than the $4.85 closing price of the common shares on February 4, 2010 (the last trading day prior to the first date in 2010 that the Icahn Group resumed purchasing Lions Gate common shares), representing a premium of more than 23%. The amended Offer will not be subject to financing.
  
  Mr. Icahn also announced that the Icahn Group intends to pursue legal proceedings to set aside the poison pill adopted by Lions Gate, which restricts the rights of Lions Gate shareholders to accept the Offer. The adoption of the poison pill represented a failure of certain conditions to the Offer. The Icahn Group waived the breached conditions in this particular instance so as to proceed with the amended Offer.
  
  Mr. Icahn stated:
  
  "Due to management's recent actions, I am now convinced that Lions Gate shareholders will never have the right to make important decisions. I am dismayed that Lions Gate's board of directors chose to implement a poison pill and thus deny their shareholders the opportunity to participate in our Offer. I believe these tactics serve only to strip shareholders of an opportunity and entrench management. Lions Gate previously criticized our tender offer for being partial. That is no longer the case.
  
  I believe that Lions Gate's management should not further leverage up the company to purchase a film library without allowing shareholders the opportunity to decide whether increasing exposure to this segment is wise. I believe library values are currently declining due to, in part, weak DVD sales. Lions Gate already has a major investment in a library – its own. It should be up to the shareholders to determine if they wish to more than "double down" on another library, especially in light of the company's admitted "substantial degree of leverage".(1) Lions Gate's latest actions convince me that the current management and board will never allow shareholders to make their own determination on this extremely important decision.
  
  We therefore intend, if our offer is successful, to replace Lions Gate's board of directors with our nominees, several of whom would be Canadian citizens. I believe that the best course for Lions Gate is to pursue a strategy aimed more at the consolidation of film and television distributors, as opposed to the acquisition of library assets. Once in place, we are hopeful that our nominees would guide Lions Gate in that strategic direction. I also believe that it may be desirable to replace top management with several individuals who more closely share our vision for the future of the company. In addition, we expect to propose that the new board form a committee to oversee the retention of a third party consultant tasked with dramatically reducing Lions Gate's overhead.
  
  I understand that such a dramatic shift in management and growth strategy may thrust Lions Gate into a potentially volatile period of transition, but I believe the company will emerge much stronger on the other end."
  
  The Icahn Group looks forward to working productively with the Canadian authorities to obtain approval for the amended Offer. To that end, the Icahn Group intends to discuss with the Minister of Canadian Heritage various commitments it would be prepared to make in order to ensure that any acquisition of control of Lions Gate as a result of the amended Offer would be of net benefit to Canada, which may include the divestiture of Lions Gate's shares of Maple Pictures Corp. ("Maple") to one or more Canadians such that the film distribution business currently carried on by Maple in Canada will be operated independently from Lions Gate (as was similarly undertaken by Lions Gate in 2005). Lions Gate disclosed in SEC filings made prior to the Offer that: (i) there is a risk that the Minister of Canadian Heritage could determine that Lions Gate is out of compliance with the Investment Canada Act, or that events beyond Lions Gate's control could result in its ceasing to be Canadian-controlled pursuant to the Investment Canada Act; (ii) if Lions Gate ceases to be Canadian-controlled under the Investment Canada Act, it and Maple may no longer qualify for or be entitled to access refundable tax credits and other Canadian government and private motion picture industry incentives that are restricted to Canadian-controlled corporations; and (iii) such a change in status could also cause Lions Gate to be required to repay certain tax credits and other government incentives previously received and default on certain distribution obligations, thereby adversely affecting its financial results. The Icahn Group believes that these risks could be substantially reduced or eliminated through the agreements it will seek to reach with the Minister of Canadian Heritage in connection with any acquisition of control of Lions Gate as a result of the amended Offer. In addition, if the amended Offer is successful, the Icahn Group intends to cause Lions Gate to remain a Canadian incorporated entity for a period of not less than five years.
  
  Lions Gate stated in its Schedule 14D-9 filed with the SEC on March 12, 2010 that the Offer could result in the acceleration of approximately $516 million of its indebtedness if lenders were to elect to declare events of default relating to certain "change in control" provisions contained in its debt documents. If such acceleration occurs (which will not be a condition allowing the Icahn Group to withdraw the amended Offer), the Icahn Group believes that Lions Gate should seek a replacement source of funding in order to continue to operate its business in the ordinary course. The Icahn Group is prepared to begin discussions with Lions Gate immediately regarding a bridge facility that the Icahn Group would be willing to provide – without a commitment fee – at the expiration of the amended Offer, should these "change of control" provisions be triggered as a result of the Icahn Group's purchase of Lions Gate shares in the amended Offer. The Icahn Group expects that such bridge facility would be required to be repaid through a combination of new debt and the proceeds of the sale of Lions Gate equity through a rights offering in which all Lions Gate shareholders would be invited to participate, thus de-levering the company. The Icahn Group would be willing to backstop any such rights offering.
  
  The terms and conditions of the amended Offer are set forth in the Offer to Purchase dated March 1, 2010, as amended by the Notice of Variation and Extension dated March 19, 2010, to be distributed to holders of Lions Gate's common shares and filed with the SEC as exhibits to the Icahn Group's amended Schedule TO and with the Canadian securities authorities on SEDAR.
  
  
• Morningstar, Inc. (NASDAQ: MORN) has entered into a definitive agreement to acquire Realpoint, LLC, a Nationally Recognized Statistical Ratings Organization (NRSRO) that specializes in structured finance. The purchase price is $52 million, subject to post-closing adjustments, and includes approximately $42 million in cash and $10 million in restricted stock. Realpoint had revenue of approximately $12 million in 2009. Morningstar expects to complete the transaction in the next few months.
  
  "We believe there's strong demand for unbiased ratings and research in the structured credit market, and we think the time is ripe to bring more competition to this market. This acquisition also builds on our recent entry into corporate credit ratings," said Joe Mansueto, chairman and chief executive officer of Morningstar. "Realpoint has earned the respect of investors, and has built a solid business by being a reliable source for structured finance ratings and analysis. Realpoint and Morningstar share a strong commitment to investors. Together, we want to restore credibility to the credit ratings business and be a positive force in rating structured products."
  
  Realpoint currently offers securities ratings, research, surveillance services, and data to help institutional investors identify credit risk in commercial mortgage-backed securities. More than 225 institutional investment firms subscribe to Realpoint's trusted ratings and analytics, including the majority of money managers who invest in commercial mortgage-backed securities.
  
  "Realpoint and Morningstar have highly complementary values and are focused squarely on the best interests of investors," said Robert Dobilas, chief executive officer of Realpoint. "Becoming part of a well-respected firm like Morningstar will give us the resources to expand our business on a global level, with a company that is equally focused on transparency and reliable ratings and analysis. At a time when market uncertainty is unprecedented, Morningstar's acquisition of Realpoint demonstrates a firm commitment to re-establishing faith in structured finance ratings."
  
  On Dec. 2, 2009, Morningstar announced its entry into credit ratings and now publishes ratings on approximately 150 of the largest U.S. companies. Its corporate credit rating business and pending acquisition of Realpoint support one of the company's growth strategies, which is to continue building thought leadership in independent investment research.
  
  Once the acquisition is completed, Realpoint will become a business unit of Morningstar, reporting to Catherine Odelbo, Morningstar's president of equity research. Over time, the company will be rebranded under Morningstar. Dobilas will continue to run the business, and the company will retain its offices in Horsham, Pa.
  
  
• Diamond Foods, Inc. (NASDAQ: DMND) received notice of early termination of the antitrust waiting period for its pending acquisition of Kettle Foods, and now anticipates the transaction will close by March 31, 2010.
  
  Based on the accelerated close, the company now expects to generate $0.47 to $0.50 in non-GAAP EPS during the second half of FY2010, compared to $0.44 to $0.48 reflected in previous guidance. The new guidance reflects continuing strong Diamond operating results and the addition of Kettle operations for four months. In addition, this updated guidance does not reflect costs associated with the transaction and integration, but does include higher interest expense and the dilutive impact of the recent equity offering.
  
  Under the previously announced terms of the transaction, Diamond will pay $615 million in cash for Kettle. Transaction-related costs, estimated to be $29 million, are expected to be recorded in Diamond's fiscal 2010 third quarter.