Google--Lori (slow)
>> the dollar had its biggest two-day develop against the euro in five years today after the fed suggested it’s closer to halting rate increases. a report today showed inflation exceeded the central bank’s target for an 11th consecutive month. also today, u.s. factory orders increased for a second consecutive month in november. airlines ordered more plains and other businesses recovered from the gulf coast hurricanes and rebuilt inventories. factory orders gained 2 ½%, the biggest increase since august, following a 1.7% rise in ocket. that number was was at 2.1%. the 10-year up. the yield down to 4.35%.
>> the u.s. chamber of commerce said today the economy will continue to perform well in 2006. but the business trade association says legislative changes are needed to keep it that way. the chamber, which represents three million businesses says the economy will grow at 3.5% this year. the forecast of job growth of 449,000 a -- 149,000 a month. officials also spelled out their legislative priorities. the list includes defeating an immigration bill passed by the house. the chamber says is unfair to business. and extending the 15% tax rate on dividends and capital gains. reporters asked about the current law in the investigation in washington after jack abramoff’s guilty plea on tuesday and the impact that could have on the chamber’s efforts to push the business agenda in congress.
>> i expect we’ll see some changes. do i think it’s going to affect what this organization does? no, because what this organization does is not what i’m reading about in the papers over the past several weeks. that was done in terms of how business was conducted by these individuals.
>> he says he does not expect any law being lemlated to affect the chamber because it conducts its business differently. shares of google gained today after an upgrade from bear stearns. checking google shares, they are up $10.01. that’s a 2 1/3% gain. robert peck upgraded shares to outperform from peer perform along with that, peck says he believes the stock will rally 33% this year to $550 a share. the move comes a day after piper jaffery said google will jump to $600 a share. peck talked about what he calls the google eco system. he defined that concept as google’s ability to development new industries and subeconomies, which should ultimately help the internet search engine grow and stave off competition. google’s earnings have beaten estimates for five straight companies as the company increased advertising revenue and won customers by adding new features. if you look at the past year, wall street’ profit estimates have proved to be pessimistic about google. one said those estimates could still be conservative.
>> they are saying that the incremental dollar, 80% is going to google, only about 18% going to yahoo. so they continue to take a lot of share for every dollar coming into search marketing .
>> google shares have jumped about 8% from yesterday and have gained 124% in the last 12 months. the relative strength index on google is around 65 now. we spoke with chris johnson and he says as the r.s.i. gets closer to 70, it could indicate the stock moves sideways. and earnings from monsanto. they reported a profit of $59 million, 22 cents a share, three sents ahmed of estimates. that has surged 51% over the past year. sales jumped 31% to 1.41 billion dollars. also, as companies purchase -- in march boosted results.
>> and aetna says its c.e.o. is stepping down, that’s john roe, leaving after a five-year turn around. aetna is the third biggest health insurance company and he game chairman in 2001. he will be replaced by current president ronald williams. aetna shares have jumped six fold during his tenure. aetna is among insurance companies benefits as consumers pay a larger share of their health bills. as of september 30, the company had 14.7 million people enrolled in its medical plans. and it said it planned to add one million customers in 2005 and 900,000 in 2006. this year is part of its plans to boost profit. the year was 1981, the year of the first nasa space shuttle flight. i.b.m. laumpled its first personal computer and it was the last time gold reached levels it’s reached today. so why is gold glittering for investors? stay tuned for more on “after the bell.”
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Listen Market briefing --- Lori (slow)
Interview: Lee Munder Capital Group---Davis, Jeff---Chief
>> for now, let’s get right to jeff davis, chief investment officer at lee munder captain in boston. welcome, jeff. ok, we’re going to check back in with jeff momentarily. for more of an outlook on today’s session and see what happened with that choppiness and whether we have a new year’s rally underway. the 2006 international consumer electronics show opens tomorrow in las vegas and bob bowden joins us live from the convention floo with edward corginen to talk about the company’s new products.
>> thank you, lori. welcome to bloomberg television. let’s talk about the last 12 months. your stock up 13%. for a lot of people it has to do with the problems over at rem, because they’ve had difficulty with the suits, the m.t.p. company claiming they had taken property away from them. for many there was a chilling effect that some companies may be moving toward home with that. have you seen that?
>> no. i think the result of our growth is as a result of our products. we had a 34% growth last year. we have great revenue growth this year. it’s really driven by people turning to the treeo, mostly in competition with rem. certainly we’ve seen some companies who become aware of those suits and certainly are more interested to look at our solutions, but they have been for sometime. good technology has more than 8,000 installations of treeo good combinations, which is a come pet nive product.
>> you don’t think it’s the main reason?
>> it hasn’t been a driver for our business. we’ve seen some recently good wins in the enterprise market place.
>> can you give us an example?
>> but frankly―well rem had a reasonable quarter this quarter. so it’s not―i don’t see them not having some success as well. i think what you’re seeing is jore all growth of people turning to solutions like this as productivity tools in their enterprise.
>> give us an example of some of the --
>> oh, boy. starbucks, cisco, companies that have deployed this to their sales forces. they use them to get instant access to email. but it makes it really easy to • it’s a powerful computer in your pocket that allows you to do all the cor activities.
>> you’re a good sport for continuing through this. let me ask you about the product you’re working with microsoft.
>> it’s windows mobile based. c.e. is an old term they use. their platform. they name it all windows mobile. it’s a windows mobile 5.0 version of the platform. and one of the great advantages of it is we’ve been able to differentiate on top of it. so we bring the palm user experience to that windows mobile platform, which is unique. most take this offer from microsoft and put it in there and whatever you get is what you get. we’ve added our secret sauce on top of that to make it easier to be a phone.
>> talk about the―i understand you plan on continuing to sell the treeo 650, which will you be developing further the palm based treeo?
>> absolutely. we’ll have further products. we think one of the advantages is the multiplatform nature of our business, especially in regard to our carrier partners, the operators that sell our products like verizon and sprint. they want to come to a company that has both of those platforms so they can offer solutions to the customers but have a consistent user experience. so that their training and their call centers and all these guys know how these devices work.
>> we’re out of time. ed, thanks for being with us. lori, back to you.
>> bob, thank you very much. from the consumer electronics show. let’s give you more on today’s market move. jeff davis joins us from boston. with his thoughts on today’s market moves. hi, jeff. welcome.
>> great to be here.
>> a new year’s rally, two days old. how much of the gabes can be credited to the fed minutes which revealed the fed might be closer to stopping raising interest rates?
>> well, just about all of it. it felt a little contrived it was released on the first day of trading, but it’s nice to have a rally the first few days of the year.
>> benchmark indexes showed some choppiness today. what was behind that?
>> i think there’s not a lot of news yet breaking out for the year and i think the market is trying to find some solid leadership, looking closely at oil prices and looking at asia and more and more you’ll start looking more closely at the international markets and the directions being taken there for some leadership and thoughts and directions the market is moving this year.
>> so do you think these gains will give you or give us any indication of what to expect through the duration of 2006?
>> well, it’s funny. the u.s. markets―it was funny last year, had solid growth in sales and growth in profits. and yet the prices went nowhere for 2005. so i think there’s a lot of skepticism about the durability and about the direction of interest rates. and also some pricing pressures. are we going to experience wage price inflation this year? it’s been benign and that’s good for the market . profit margins are high. it just isn’t showing up in movement in stock valuations and margin expansion. excuse me, valuation expansions. so i think a good psychology could give ause boost. i think you’ve got some strong earnings in the first half, some tough comparisons. but i feel optimistic going into 2006.
>> what’s your stock picking strategy here for the year?
>> well, you know, it was so wrong to say it was a stock picker’s market about a year and a half ago, but i think a lot of people felt that way because it was all about industries, energy and utilities. and i think at this point it’s probably going to be a very interesting year for technology. but it’s going to be very picky and choosey within that group. you have a lot of older technology now that needs to be replaced but a new wave of initiatives and expenditures that would be very profitable over the long-term in web-based software, software companies are very cheap and sometimes for good reasons. but i think there’s some interesting stock picking in that area. and what’s now kind of a value area what once used to be a big growth area. so technology is going to be the most interesting part of the market for stock picking.
>> you think of the google story with―calling for $550 a share in a year.
>> google, i keep thinking about qualcomm back in 1999, but google is a real business now. google is a business i think and there are a lot of other businesses that have potential domination of important areas throughout technology that i think deserves multiples, not like google’s, but certainly deserves some revaluation upwards. google is sort of the -- google, e-bay and amazon is sort of the center piece of everybody’s excitement about business to consumer, consumer toyota consumer businesses. with you there’s a lot more out there that i think is much cheaper than those three.
>> jeff, thanks a lot for joining us.
>> thank you.
>> three months in a row, automakers losing streak is mirrored by gains with the asian automakers. we’ll see what’s next with dan pool, analyst with national city. .
