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Last Call: Shelter From the Storm

Wednesday, 8 Aug 2012 | 12:00 AM ET
Bob Dylan
Gary Miller | FilmMagic | Getty Images
Bob Dylan

Not a word was spoke between us there was little risk involved

Everything up to that point had been left unresolved
Try imagining a place where it's always safe and warm

"Come in" she said

"I'll give you shelter from the storm".

- Shelter From The Storm – Bob Dylan

— Below, seeking shelter from the equities storm? A Tennessee company is preparing a $300M bond offering backed by the music of (among others) Robert Zimmerman aka Bob Dylan

Market Musings With CNBC Market Guru Robert Hum

  • Recap: Dow +51.09 (+0.39%) at 13168.60, S&P +7.12 (+0.51%) at 1401.35, Nasdaq +25.95 (+0.87%) at 3015.86
  • Major averages up for 3rd straight day, close at 3-month highs
  • S&P 500 back above 1,400, Nasdaq regains 3,000 level for first time since early May
  • Crude oil, RBOB gasoline settle at 3-month highs

Bonus Musing:

Closing in on a 4.5-year high: today’s gain puts the Dow merely 110 points away from closing at its highest level since December 2007. During the past 4.5 years, Home Depot (HD) is the Dow’s best performer – nearly doubling in value with a 96% gain. Unsurprisingly, Bank of America (BAC), which wasn’t added to the Dow until February 2008, is the worst-performing member of the current Dow 30. The bank’s stock has fallen 81% over the past 4.5 years.

The Word on the Street Tonight

Disney Earnings Beat but Revenue Is Light/CNBC with Reuters: “Walt Disney reported quarterly earnings that beat Wall Street's expectations as revenue at its parks and resorts grew, but revenue still came up short of analysts' forecasts on Tuesday. After the earnings announcement, the entertainment company's shares fell slightly in trading after the closing bell.”

Disney CEO Iger: Still 'Room to Increase Pricing'/CNBC.com – Julia Boorstin: “Walt Disney’s fiscal third quarter was its best ever—earnings per share grew 31 percent to $1.01, beating Wall Street expectations by 8 cents. We sat down with CEO Bob Iger to talk about what drives the upside. Bottom line: People are still willing to spend for quality, Iger said, as people are flocking to Disney parks and spending more money there. The advertising business is looking better, though there’s not much visibility. And "The Avengers," which has grossed nearly $1.5 billion worldwide, drove massive growth at the studio division.”

S&P Cuts Greece's Outlook to 'Negative'/CNBC.com: “Standard & Poor's revised its outlook on Greece's long-term rating to "negative" on Tuesday, reflecting the potential for a downgrade if Greece fails to secure the next disbursement from the EU/International Monetary Fund financing program.”

Priceline Outlook Disappoints/Wires with CNBC.com: “Priceline.com , the online travel agency, posted a higher quarterly profit on Tuesday, but revenue missed and the company warned on third-quarter earnings. The company said it expects a profit excluding items of $11.10 to $12.10 a share for the current quarter. That's below the $12.76 expected by analysts, according to Thomson Reuters.”

Dean Foods to Spin Off Soy, Organics/WSJ – Marshall Eckblad: “Dean Foods Co. swung to a profit in the second quarter and said it would spin off a fast-growing unit that sells Horizon Organic dairy products and Silk soy milk. The company's shares jumped 21% to $15 in after-hours trading.”

The Bonds, They Are A-Changin'/WSJ – Liz Moyer & Al Yoon: “Bob Dylan's music was the soundtrack for the counterculture of 1960s America. Now it has become a selling point for an unusual bond offering being marketed to institutional investors and wealthy individuals. A privately held Nashville, Tenn., company is preparing a $300 million bond backed by the cut it receives as a middleman between music companies and songwriters and the outlets that broadcast their music. The company, Sesac Inc., has the exclusive rights to the public broadcast or performance of the music of Mr. Dylan, pop singer Neil Diamond, Canadian rock band Rush and jazz singer Cassandra Wilson.”

Best Buy Founder Would Cut Prices/WSJ – Anupreeta Das, Ann Zimmerman, Sharon Terlep: “Best Buy Co. founder Richard Schulze envisions a turnaround plan for the electronics retailer that involves cutting prices to better compete against Amazon.com Inc. and other online retailers while ensuring that the in-store customer-service experience is as good as Apple Inc.'s , according to people familiar with the matter. Such efforts would both reduce profit margins and turn back a cost-cutting plan already under way at the Minneapolis-based company. The company plans to shut 50 big-box stores, shrink its cavernous floor space, and cut $800 million in costs by the 2015 fiscal year."

iPad effect?: Of the Top 25 selling magazines for the first half of 2012 – 21 of 25 reported sales are down.

1. Cosmopolitan, 1.4 million (down 15.5 percent from the first half of 2011)

2. Woman's World, 1.1 million (down 3.7 percent)

3. First For Women, 1 million (down 6.3 percent)

4. People, 939,554 (down 18.6 percent)

5. Us Weekly 572,875 (down 11.4 percent)

The full list: http://cnb.cx/Ni5VJJ

Earnings

Before the bell:

Alpha Natural Resources, Avnet, BCE, Brookfield Infrastructures, Computer Sciences, Dean Foods, ING Group, Int. Flavors & Fragrances, Liberty Media Group, Liberty Media Interactive, Macy's, Molex, NRG Energy, PPL Corp, Ralph Lauren, Rio Tinto, Clean Harbors, SodaStream, Treehouse Foods

After the bell:

NewsCorp, CenturyLink, Continental Resources, Dun & Bradstreet, Integrys Energy, Kinross Gold, Monster Beverage, Nuance Comm., Sun Life Fincl

KEY GUESTS

Simon Willis, Daniel Stewart, Banking Analyst (4am)

Guy LeBas, Janney Montgomery Scott, Chief Fixed Income Strategist (5am)

Jim Keenan, BlackRock Head of Leveraged finance & High Yield (6am)

Henry Blodget, Business Insider, CEO & Editor-in -Chief (6:50am)

Jon Friedman, MarketWatch, Senior Columnist (6:50am)

Peter Cancro, Jersey Mike's CEO (7:40am)

Meredith Whitney, Meredith Whitney Advisory Group LLC (8am)

Neel Kashkari, PIMCO, Managing Dir & Head of Global Equities (8:30am)

Timothy Mayopoulos, Fannie Mae, Pres & CEO (8:40am)

Spencer Rascoff, Zillow, CEO (10am)

Joseph Saunders, Visa, Chairman & CEO (11:15am)

Howard Schultz, Starbucks, Founder, Chairman, Pres & CEO (11:15am)

Jack Dorsey, Square, CEO (11:15am)

Matt MacInnis, Inkling, Founder & CEO (11:40am)

Michael Murphy, Rosecliff Capital, Managing Partner & CEO (12n)

Michael Dudas, Sterne Agee, Senior Research Analyst (12:30pm)

Donald Drapkin, Casablanca Capital, Chairman & Founder (1pm)

James Paulsen, Wells Capital Management, Chief Investment Strategist (4pm)

Shahab Jalinoos, UBS Managing Director (4:50pm)

Follow Tom Rotunno on Twitter: @tomrotunno

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