Stock News - Barclays (NYSE: BCS), American Eagle (NYSE: AEO), Munich Re

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(Tickers: NYSE: BCS, NYSE: AEO, NYSE: ANF, NYSE: GS, NYSE: BAC, NYSE: DIA, NYSE: SPY, Nasdaq: QQQQ, NYSE: DOG, NYSE: SDS, NYSE: QLD)

Stock News - Barclays, American Eagle & Munich Re

Today's headline stock news included reports from Barclays Bank, American Eagle Outfitters and Munich Re.

American Eagle Outfitters

American Eagle (NYSE: AEO) jumped 6+% today, after posting an 81% increase in profits. The company benefited from a significant decrease in markdowns versus the distressed prior year. AEO is managing inventory for the tougher environment it is now accustomed to. In a situation like this, it's wise to look at the change in sales to get a better idea of how business is. The company claims that it benefited from increased demand for its lower cost goods, as compared to competitor Abercrombie & Fitch (NYSE: ANF). As a result, sales gained 7% over the prior year's depressed tally. Same-store sales improved 5%, versus a 16% decline last year. The market found favor in AEO's outlook as well, as it projected first quarter non-GAAP EPS of $0.15 to $0.17, versus the analysts' consensus for $0.15.

Munich Re

Warren Buffet's latest insurance interest (5+% interest), Munich Re (MUVGn.DE), reported today that it expects to earn a net profit of 2 billion euros ($2.7 billion) in 2010, despite two big claims hits in Chile and Europe. Last year, the company earned 2.5 billion euros. The claims are expected to cost about 500 million euros. Still, the hit was less than feared, and the company is well-capitalized. It reported today expectations for a stronger 2011, and share repurchases are being weighed as well.

Barclays Eyes US Banks - But Buyer Beware

Barclays (NYSE: BCS) shares slipped fractionally on Wednesday, as rumors surfaced the company may be seeking a US institution with a solid deposit base. Barclays would theoretically be doing so to better fit in the current regulatory environment, or to prepare for the changing environment. The move would also fit in with Barclays' general growth plan. However, this would be at the same time "The Greek" expects American banks to be forced to make difficult decisions to operate as traditional banks or as investment banks (where they would be allowed to continue proprietary trading).

Barclay shot down the rumors, perhaps for this very reason, or to keep the shares of its prospects from appreciating prematurely before making its deal. I expect Goldman Sachs (NYSE: GS), Bank of America (NYSE: BAC) and others to be indirectly forced to reverse their crisis inspired acquisitions, spinning off the acquired businesses (or portions of them) or otherwise losing the benefits of emergency level borrowing costs and the right to trade for their own interests.

Now that the crisis is over and those cost and safety benefits are going away anyhow, it seems it would be a simple decision. The banks would still make out like bandits in spinning off assets acquired at panic level lows, and they would retain the right to operate as they have in the past. The only catch would be the likelihood of forced downsizing, below government imposed "too-big-to-fail" limits.

Because Barclays seems a bit different a story than the US names mentioned, you might still note that the targets rumored were PNC Financial (NYSE: PNC), SunTrust (NYSE: STI) and Fifth Third Bancorp (Nasdaq: FITB). Barclays is said to also be eyeing Asian ideas, but valuations are further stretched in the region.

Earnings Reporters

The day's earnings reports included Abovenet Inc. (Nasdaq: ABVT), Administradora de Fondos de Pensiones Provida (NYSE: PVD), American Eagle Outfitters (NYSE: AEO), Arena Pharmaceuticals (Nasdaq: ARNA), Asset Acceptance (Nasdaq: AACC), Blackrock Kelso Capital (Nasdaq: BKCC), Bon-Ton Stores (Nasdaq: BONT), Capital Senior Living (NYSE: CSU), Carrizo Oil & Gas (Nasdaq: CRZO), Chelsea Therapeutics (Nasdaq: CHTP), China Nuokang (Nasdaq: NKBP), Citizens (NYSE: CIA), Clarient (Nasdaq: CLRT), Clayton Williams Energy (Nasdaq: CWEI), Clean Energy Fuels (Nasdaq: CLNE), CombiMatrix (Nasdaq: CBMX), Dara Biosciences (Nasdaq: DARA), Datalink Corp (Nasdaq: DTLK), Dialysis Corporation of America (Nasdaq: DCAI), Elbit Systems (Nasdaq: ESLT), Emerging Global Shares (NYSE: EMT), EMS Technologies (Nasdaq: ELMG), Entorian Technologies Inc. (Nasdaq: ENTN), FuelCell Energy (Nasdaq: FCEL), Fushi Copperweld (Nasdaq: FSIN), General Communication (Nasdaq: GNCMA), Gushan Environmental (NYSE: GU), Gymboree (Nasdaq: GYMB), Harbin Electric (Nasdaq: HRBN), Hawk (AMEX: HWK), Hill International (NYSE: HIL), Hot Topic (Nasdaq: HOTT), I.D. Systems (Nasdaq: IDSY), iGo, Inc. (Nasdaq: IGOI), Inter Parfums, Inc. (Nasdaq: IPAR), Interval Leisure Group (Nasdaq: IILG), Jo-Ann Stores (NYSE: JAS), Kohlberg Capital (Nasdaq: KCAP), Kratos Defense & Security Solutions (Nasdaq: KTOS), Life Quotes (Nasdaq: QUOT), Linktone (Nasdaq: LTON), Mannatech (Nasdaq: MTEX), Men's Wearhouse (NYSE: MW), Metabolix (Nasdaq: MBLX), Newtek Business Services (Nasdaq: NEWT), Oil-Dri Corporation (NYSE: ODC), Optelecom-NKF (Nasdaq: OPTC), Ore Pharmaceuticals (Nasdaq: ORXE), Perma-Fix Environmental (Nasdaq: PESI), Presstek (Nasdaq: PRST), Providence Service (Nasdaq: PRSC), QLT, Inc. (Nasdaq: QLTI), Quality Distribution (Nasdaq: QLTY), Quigley (Nasdaq: QGLY), RAE Systems (AMEX: RAE), ReneSola (NYSE: SOL), Rockville Fin'l (Nasdaq: RCKB), Semtech (Nasdaq: SMTC), SMTC Corporation (Nasdaq: SMTX), SouthWest Water (Nasdaq: SWWC), Speedway Motorsports (NYSE: TRK), Standard Parking (Nasdaq: STAN), TechTarget (Nasdaq: TTGT), The Children's Place (Nasdaq: PLCE), The Descartes Systems (Nasdaq: DSGX), US Concrete (Nasdaq: RMIX), Vail Resorts (NYSE: MTN), ViewPoint Fin'l (Nasdaq: VPFG), Vimpel Communications (NYSE: VIP), Western Gas Partners (NYSE: WES), Willbros Group (NYSE: WG) and ZST Digital Networks (Nasdaq: ZSTN).


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