American, US Air cleared to land merger

US Airways and American Airlines are now set to merge into the largest airline company on Dec. 9.

NEW YORK (CNNMoney) A federal bankruptcy court judge has cleared the way for American Airlines and US Airways to merge into the world's largest airline company, dismissing a final objection from a group of airline passengers trying to block the deal.

Judge Sean Lane approved an antitrust settlement reached earlier this month between the airlines and the Justice Department. Justice's earlier objections to the deal had been the major impediment to the merger.

But the department believes that concessions made as part of the settlement, including the transfer of some key airport slots to low-cost carriers such as JetBlue (JBLU, Fortune 500) and Southwest, (LUV, Fortune 500) will provide for increased competition

While the passenger group has indicated that it intends to pursue a private antitrust case against the merger, Lane ruled that should not stop American parent AMR (AAMRQ, Fortune 500) from emerging from bankruptcy and combining with US Airways. The passengers still believe the merger will result in higher fares and reduced choice.

The merger of the two companies is now set to take place Dec. 9, with the shares in the new combined American Airlines trading under the symbol AAL.

Passengers will still be booking flights under both the American Airlines and US Airways (LCC, Fortune 500) names for some time. Details about when the airlines will combine reservations and ticketing, frequent flier clubs and other operations are still being worked out, and those combinations are not likely until the beginning of 2014, at the earliest.

The formal combination of the companies' two separate operating certificates with the Federal Aviation Administration ! might not take place until 2015. But the combined company that will exist on Dec. 9 will be the largest airline in the world in terms of revenue, passengers carried and the number of miles flown by paying passengers, surpassing United Continental Holdings (UAL, Fortune 500), which was also formed by a merger.

Is Spotify REALLY Worth $4B Against Pandora and Sirius?

The world around venture capital sometimes creates some very interesting reading when you look at private company valuations versus public company valuations. In this case, it is in the online streaming music service of Spotify. It is hard to know what the valuation should be without having access to the books, but a $4 billion valuation should catch the eyes of Pandora Media Inc. (NYSE: P) and also of Sirius XM Satellite Holdings Inc. (NASDAQ: SIRI).

Reuters, the Wall Street Journal, and others have thrown some figures out showing that a $250 million capital raise gave Spotify a value of more than $4 billion. When currencies are translated, we have seen that Spotify generated revenue of close to $570 million in 2012 with what may be a loss of about $77 million. Spotify is also shown to have 24 million active users and 6 million who pay for a premium service. So how does this add in a relative value basis?

Pandora Media Inc. (NYSE: P) recently released its earnings and disclosed that it had 70.9 million active users and it said it is on track to generate roughly $660 million in revenue this year after having generated $427 million in 2012. Pandora just became profitable on normalized operations this year. Its market cap is $5.1 billion, but keep in mind that shares have tripled off their lows this year.

Sirius XM Holdings Inc. (NASDAQ: SIRI) is in a different class because it is almost all subscriber-generated. It is the big kahuna with a market cap of over $22 billion and its latest press release showed has that it has 25.6 million subscribers. Sirius is also profitable, and sales were $3.4 billion in 2012 and expected to be almost $3.8 billion in 2013.

Again, a problem in analyzing the current value is not knowing the current financial expectations of Spotify. That being said, Spotify is valued at close to $166 per active user versus close to $72 per active user of Pandora. We do not truly want to do the direct comparison for Sirius XM due to its subscriber only model, but that would be worth about $882 per subscriber in case you really had to know.

On Pandora, we would also point out that in the first nine months of 2013, some $85.2 million of the revenue came from subscribers versus its $463 million in total revenue. We do not have any comparable breakdowns for Spotify.

Here is where the rub comes in on valuing a company like Spotify at $4 billion. We cannot use a Sirius XM comparison as of now, but Pandora’s $5.1 billion is after its shares tripled this year. We will have to wait to see final sales and income numbers before making any final verdict here. Just keep in mind that for a venture-backer to pay a $4 billion valuation today it means they expect the value to be $5 billion, $6 billion, or far more when it comes time to sell or go public tomorrow.

Walmart Ups the Ante on Black Friday Yet Again

Daniel Acker/Bloomberg via Getty Images Not to be outdone by other large retailers, Walmart Stores announced Tuesday that it will kick off its Black Friday deals one week early. The retailer said it will mark down prices on a number of toys and electronics starting Nov. 22, in stores and online. "Black Friday is our Super Bowl, and we plan to win," said Duncan Mac Naughton, chief merchandising and marketing officer for Walmart U.S. The news follows Sears and Kmart's (SHLD) announcement last week that they would offer Black Friday deals to "Shop Your Way" rewards customers one week early. Walmart (WMT) had said just a week ago that it would kick off its Black Friday sales at 6 p.m. on Thanksgiving Day. The list of retailers pushing Black Friday sales earlier may not be over, and it appears consumers are responding. According to a study by the National Retail Federation last week, 53.8 percent had already started their holiday shopping. Paired with a shorter holiday calendar this year, with six fewer days between Thanksgiving and Christmas, retailers are doing anything they can to remain competitive.

Major charities raise millions for Typhoon Haiyan victims

Red Cross volunteers help deliver emergency water supplies to typhoon victims.

NEW YORK (CNNMoney) Americans have donated millions of dollars to relief efforts in the week since Typhoon Haiyan struck the Philippines.

More than a dozen charities are raising funds to help victims of the storm, which left hundreds of thousands displaced from their homes and millions in need of basic necessities like food and water.

International fundraising totals have yet to be released, but initial U.S. numbers show that more than $27.8 million has been raised so far.

The American Red Cross said it had received $11 million from U.S. donors by Thursday morning, a figure that is likely to climb once donations received through iTunes and Facebook are tallied.

"We are grateful for the American public's generosity and compassion following what has been called one of the strongest storms in world history," David Meltzer, chief international officer for the American Red Cross, said in a statement.

  World Bank Pres.: Act on climate change

The relief organization is working with the Philippine Red Cross and other agencies to transport relief supplies to the Philippines and provide disaster responders, he said.

The United Nations Children's Fund, or UNICEF, said it had raised $4.7 million from U.S.-based donors by Thursday. The organization is aiming to raise more than $34 million to help the children and families affected by the disaster.

CNN Impact Your World: How to help

Save the Children, which has its own $30 million fundraising goal, said it had received $3.6 million in donations by Thursday, while AmeriCares said it had raised $1.5 million from mainly U.S. donors. The Salvation Army had taken in more than $1.3 million by Thursday morning.

The International Rescue Committee's U.S. headquarters said it had raised $1.3 million by Friday from mainly U.S. donors. Doctors Without Borders said $2.5 million out of the $11.2 million it has raised so far has come from U.S. donors.

Oxfam America said it had raised more than $1.9 million. According to Oxfam, an $80 donation can provide 100 emergency health kits, while ! $192 can provide temporary shelter for a family.

"The coming days and weeks are critical," Michael Delaney, director of humanitarian response for Oxfam America, said in a statement. "Families are drinking contaminated water from wells. The threat of disease and malnutrition is high. The need for life-saving emergency aid is immense."

5 Stocks Set to Soar on Bullish Earnings

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

>>5 Stocks Ready to Break Out

This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

>>5 Big Stocks to Trade for Big Gains

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

>>5 Stocks Under $10 Set to Soar

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

Herbalife

My first earnings short-squeeze play is network marketing and personal products player Herbalife (HLF), which is set to release numbers on Monday after the market close. Wall Street analysts, on average, expect Herbalife to report revenue of $1.19 billion on earnings of $1.14 per share.

If Herbalife can report a 10% growth in earnings for the third quarter, that would extended its streak of double-digit growth for a 16th consecutive quarter. Revenue is projected to rise by 19%, which would be also mark the 16th consecutive quarter of double-digit sales growth.

>>5 Rocket Stocks Worth Buying This Week

The current short interest as a percentage of the float for Herbalife is extremely high at 21.1%. That means that out of the 84.19 million shares in the tradable float, 30.21 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then this stock could easily see a monster short-squeeze develop post-earnings.

From a technical perspective, HLF is currently trending well below its 200-day moving average and just below its 50-day moving average, which is bearish. This stock has been uptrending modestly for the last month, with shares moving higher from its low of $61.70 to its recent high of $68.60 a share. During that uptrend, shares of HLF have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of HLF within range of triggering a near-term breakout trade post earnings.

If you're bullish on HLF, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $68.60 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 3.31 million shares. If that breakout hits, then HLF will set up to re-test or possibly take out its 52-week high at $74.94 a share. Any high-volume move above that level will then give HLF a chance to tag $80 to $90 a share post-earnings.

I would simply avoid HLF or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $63.07 to $61.70 a share with high volume. If we get that move, then HLF will set up to re-test or possibly take out its next major support levels at $57 to $50 a share.

Questcor Pharmaceuticals

Another potential earnings short-squeeze trade idea is biopharmaceuticals player Questcor Pharmaceuticals (QCOR), which is set to release its numbers on Tuesday after the market close. Wall Street analysts, on average, expect Questcor Pharmaceuticals to report revenue of $199.70 million on earnings of $1.29 per share.

>>5 Biotech Stocks Under $10 for Your Watch List

The current short interest as a percentage of the float for Questcor Pharmaceuticals is very high at 22.3%. That means that out of the 54.61 million shares in the tradable float, 13.05 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 12.6%, or by about 1.45 million shares. If the bears are caught pressing their bets into a bullish quarter, then shares of QCOR could rip sharply higher post-earnings as the bears rush to cover some of their bets.

From a technical perspective, QCOR is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last month, with shares moving higher from its low of $53.09 to its intraday high of $69.40 a share. During that uptrend, shares of QCOR have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of QCOR within range of triggering a near-term breakout trade.

If you're in the bull camp on QCOR, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $69.40 a share, and then once it clears its 52-week high at $74.76 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.94 million shares. If that breakout triggers, then QCOR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $85 to $90 a share.

I would simply avoid QCOR or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $63.32 a share with high volume. If we get that move, then QCOR will set up to re-test or possibly take out its next major support levels at $58 to $53 a share.

Blue Nile

One potential earnings short-squeeze candidate is online retailer of diamonds and jewelry Blue Nile (NILE), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Blue Nile to report revenue of $99.82 million on earnings of 16 cents per share.

>>4 Big Stocks to Trade (or Not)

The current short interest as a percentage of the float for Blue Nile is very high at 17.8%. That means that out of the 11.58 million shares in the tradable float, 2.18 million shares are sold short by the bears. This is a large short interest on a stock with a very low tradable float. Any bullish earnings news could easily spark a big short-squeeze for shares of NILE post-earnings.

From a technical perspective, NILE is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending for the last few weeks, with shares moving high from its low of $36.56 to its recent high of $40.99 a share. During that uptrend, shares of NILE have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NILE within range of triggering a near-term breakout trade.

If you're bullish on NILE, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $40.99 to $42.34 a share to its 52-week high at $43 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 116,368 shares. If that breakout triggers, then NILE will set up enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $60 a share.

I would avoid NILE or look for short-biased trades if after earnings it fails to trigger that move, and then drops back below its 50-day moving average of $38.73 a share with high volume. If we get that move, then NILE will set up to re-test or possibly take out its next major support levels at its 200-day moving average of $35.86 a share to $34 to $33 a share.

Walter Energy

Another earnings short-squeeze prospect is coal producer and exporter Walter Energy (WLT), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Walter Energy to report revenue of $454.81 million on a loss of $1.02 per share.

>>5 Stocks Insiders Love Right Now

The current short interest as a percentage of the float for Walter Energy is extremely high at 33.9%. That means that out of the 59 million shares in the tradable float, 21.06 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 2.1%, or by about 436,000 shares. If the bears are caught pressing their bets into a strong quarter, then shares of WLT could easily rip sharply higher post-earnings as the shorts rush to cover some of their bets.

From a technical perspective, WLT is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last two months and change, with shares moving higher from its low of $9.96 to its recent high of $16.30 a share. During that uptrend, shares of WLT have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of WLT within range of triggering a big breakout trade post-earnings.

If you're bullish on WLT, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $16.29 to $16.30 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 7.77 million shares. If that breakout triggers, then WLT will set up to re-test or possibly take out its next major overhead resistance levels at $20 to $22.50 a share.

I would simply avoid WLT or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day moving average at $14.24 a share to more support at $13.50 a share with high volume. If we get that move, then WLT will set up to re-test or possibly take out its next major support levels at $12 to $11.50 a share.

WebMD Health

My final earnings short-squeeze play is online health care information services player WebMD Health (WBMD), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect WebMD Health to report revenue of $129.74 million on earnings of 9 cents per share.

>>Do You Own These Blue-Chips? Sell Them!

The current short interest as a percentage of the float for WebMD Health is pretty high at 9.7%. That means that out of the 42.26 million shares in the tradable float, 4.26 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of WBMD could spike sharply higher post-earnings as the bears jump to cover some of their bets.

From a technical perspective, WBMD is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $28.03 to its recent high of $36.22 a share. During that move, shares of WBMD have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of WBMD within range of triggering a big breakout trade post-earnings.

If you're in the bull camp on WBMD, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $36.22 a share (or Tuesday's intraday high if greater), and then above some past resistance at $40.24 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 841,772 shares. If that breakout triggers, then WBMD will set up to enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $48 to $50 a share.

I would avoid WBMD or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some near-term support at $34 a share with high volume. If we get that move, then WBMD will set up to re-test or possibly take out its next major support levels at its 50-day moving average of $31.65 a share to $30 to $28 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

RELATED LINKS:

>>Own Gold? Here's Why It's Time to Sell

>>3 Hot Stocks on Traders' Radars

>>5 Sin Stocks to Protect Your Portfolio

Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

Top Warren Buffett Companies For 2015

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Top Warren Buffett Companies For 2015: STR Holdings Inc(STRI)

STR Holdings, Inc., together with its subsidiaries, designs, develops, manufactures, and sells encapsulants for the solar industry worldwide. Its encapsulants protect the embedded semiconductor circuits of solar panels. The company sells its products to crystalline silicon and thin-film solar module manufacturers. STR Holdings, Inc. was founded in 1944 and is headquartered in Enfield, Connecticut.

Top Warren Buffett Companies For 2015: Cornerstone OnDemand Inc.(CSOD)

Cornerstone OnDemand, Inc. provides learning and talent management solution delivered as software-as-a-service. The company offers three integrated cloud-based solutions for learning management, performance management, and extended enterprise. Its Cornerstone Learning Cloud helps clients deliver and manage enterprise training and development programs, as well as links employee development to other parts of the talent management lifecycle, including performance management and succession planning. The company?s Cornerstone Performance Cloud allows clients to direct and measure performance at the individual, departmental, and organizational level through competency management, organizational goal setting, performance appraisal, compensation management, and development planning. Its Cornerstone Extended Enterprise Cloud helps clients extend learning and talent management to their customers, vendors, and distributors. The company also offers consulting services comprising impl ementation, integration, content, business consulting, and educational services; and account services, as well as resells third-party e-learning content. Its clients include multi-national corporations, large domestic enterprises, mid-market companies, public sector organizations, higher education institutions, and non-profit entities. The company sells its solution and services directly through its own sales force in North America and Europe; and indirectly through domestic and international network of distributors. Cornerstone OnDemand, Inc. was founded in 1999 and is headquartered in Santa Monica, California.

Advisors' Opinion:

• [By Lee Jackson]

  Cornerstone OnDemand Inc. (NASDAQ: CSOD) is a company that provides talent management on the cloud via recruiting, learning, performance and outreach. During its most recent quarter, sales grew 66% year-over-year, but looking ahead, the company expects top line growth of 56% this year. Deutsche Bank has not started coverage, however the consensus target is at $55.

Hot Cheap Companies To Buy For 2015: GenVec Inc.(GNVC)

GenVec, Inc. operates as a biopharmaceutical company that uses differentiated, proprietary technologies to create therapeutics and vaccines. The company principally develops and commercializes its product candidates through collaborations. GenVec is working with various companies and organizations, such as Novartis, Merial, and the U.S. Government to support a portfolio of product programs that address the prevention and treatment of human and animal health concerns. Its development programs addresses various therapeutic areas, including hearing loss, balance disorders, and cancer; and vaccines against infectious diseases, which include respiratory syncytial virus, herpes simplex virus type 2, dengue fever, influenza, malaria, and human immunodeficiency virus. In the area of animal health, the company is developing vaccines against foot-and-mouth disease. GenVec was founded in 1992 and is based in Gaithersburg, Maryland.

Top Warren Buffett Companies For 2015: Orion Marine Group Inc(ORN)

Orion Marine Group, Inc. operates as a marine specialty contractor serving the heavy civil marine infrastructure market. The company provides a range of marine construction and specialty services on, over, and under the water along the Gulf Coast, the Atlantic Seaboard, the West Coast, Canada, the Caribbean Basin, and the Pacific Northwest. The company?s marine construction services include construction of marine transportation facilities, marine pipelines, bridges and causeways, and marine environmental structures. Its marine transportation facility construction projects comprise public port facilities for container ship loading and unloading; cruise ship port facilities; private terminals; recreational use marinas and docks; and other marine-based facilities. Orion Marine Group?s marine pipeline service projects consist of the installation and removal of underwater buried pipeline transmission lines; installation of pipeline intakes and outfalls for industrial facilities ; construction of pipeline outfalls for wastewater and industrial discharges; river crossing and directional drilling; and creation of hot taps and tie-ins. Its bridge and causeway projects include the construction, repair, and maintenance of bridges and causeways, as well as the development of fendering systems in marine environments; and marine environmental structure projects primarily comprise the installation of concrete mattresses to ensure erosion protection, and the installation of geotubes for wetlands and island creation. In addition, the company offers dredging services; specialty services, including salvage, demolition, surveying, towing, diving and underwater inspection, excavation, and repair; and survey services comprising surveying pipelines and performing hydrographic surveys. Its customers include federal, state, and municipal governments, as well as private commercial and industrial enterprises. The company was founded in 1994 and is headquartered in Houst on, Texas.

Advisors' Opinion:

• [By Seth Jayson]

  When judging a company's prospects, how quickly it turns cash outflows into cash inflows can be just as important as how much profit it's booking in the accounting fantasy world we call "earnings." This is one of the first metrics I check when I'm hunting for the market's best stocks. Today, we'll see how it applies to Orion Marine Group (NYSE: ORN  ) .

Top Warren Buffett Companies For 2015: Providence Capital Corp(PV.V)

Providence Resources Corp., a junior mining exploration company, engages in the evaluation, acquisition, exploration, and development of precious and base mineral properties. The company focuses on exploring for copper, gold, silver, lead-zinc, and iron-oxide copper-gold metals. It holds an option to acquire a 60% interest in the Iron Range property located in south‐eastern British Columbia near the community of Creston. The company was formerly known as Providence Capital Corp. and changed its name to Providence Resources Corp. in January 2011. Providence Resources Corp. was incorporated in 2006 and is based in Vancouver, Canada.

Top Warren Buffett Companies For 2015: China Pharma Holdings Inc.(CPHI)

China Pharma Holdings, Inc. develops, manufactures, and markets generic and branded pharmaceutical products primarily to hospitals and private retailers in the People?s Republic of China. Its products include Bumetanide to treat edema diseases; Gastrodin injection for tiredness, loss of concentration, poor sleep, and traumatic syndromes of brain; Cerebroprotein Hydroloysate injection for the treatment of memory decline and attention deficit; Buflomedil Hydrochloride for blood vessel diseases; Propylgallate and Ozagrel Sodium for the treatment of cerebral thrombosis, coronary heart disease, and thrombus deep phlebitis; and Alginic Sodium Diester injection for ischemic heart, cerebrovascular, and lipoprotein blood diseases. The company also offers Cefaclor Dispersible tablets for tympanitis, lower respiratory tract, urinary tract, and skin/skin tissue infection; Roxithromycin dispersible tablets for pharyngitis and tonsillitis; Clarithromycin granules and capsules for nasoph arynx, respiratory tract, and skin tissue infections; Naproxen Sodium and Pseudophedrine Hydrochloride Sustained Release tablets to relieve cold, sinus, and flu symptoms; Cefalexin capsules for acute tonsillitis; and Anhydroandrographolide for ischemic heart, cerebrovascular, and lipoprotein blood diseases. In addition, it provides Hepatocyte growth-promoting factor to treat viral hepatitis symptoms; Tiopronin to treat acute chronic Hepatitis B and relieve liver injury; Omeprazole to treat gastroesophageal reflux disease; Granisetron Hydrochloride injection for nausea and vomiting; Vitamin B6, an vitamin supplement; Thymopolypetides injection for treating diseases and tumors of various cells with reduced immunological function; and Recombined Human Fibroblast Growth Factor for the production of cosmetics. The company distributes its products through independent regional distributors and sales representatives. China Pharma Holdings, Inc. is based in Haikou, the People?s Repub lic of China.

Top Warren Buffett Companies For 2015: Heijmans NV (HEIJM)

Heijmans NV is a Netherlands-based engineering and construction company that provides solutions ranging from concept and design to maintenance and management. It divides its activities into five divisions: Property Development, Residential Building, Non-Residential Building, Technical Services, and Roads and Civil. The Property Development division focuses on the development of projects, as well as develops and sells housing. The Residential Building division includes new build developments, as well as the reconstruction and renovation of housing. The Non-residential Building division is engaged in the reconstruction and renovation of schools, care institutions, airports and offices. The Technical Services activity is operated by the subsidiary Burgers Ergon BV. This company develops and maintains electrical engineering and mechanical systems. The Roads and Civil division�� activities involve designing and maintaining infrastructure above and below the ground.

Top Warren Buffett Companies For 2015: Hasbro Inc.(HAS)

Hasbro, Inc. engages in the design, manufacture, and marketing of games and toys. The company principally provides children?s and family leisure time and entertainment products and services. It offers various games, including traditional board, card, hand-held electronic, trading card, roleplaying, and DVD games, as well as electronic learning aids and puzzles. Hasbro?s toy products include boy?s action figures, vehicles and playsets, girl?s toys, electronic toys, plush products, preschool toys and infant products, electronic interactive products, creative play products, and toy related specialty products. The company also licenses certain of its trademarks, characters, and other property rights to third parties for use in connection with consumer promotions and for the sale of noncompeting toys and games, and non-toy products. It offers its products primarily under PLAYSKOOL, TRANSFORMERS, NERF, MY LITTLE PONY, LITTLEST PET SHOP, TONKA, G.I. JOE, SUPER SOAKER, MILTON BRAD LEY, PARKER BROTHERS, CRANIUM, AVALON HILL, TIGER, FURREAL FRIENDS, BABY ALIVE, STRAWBERRY SHORTCAKE, and WIZARDS OF THE COAST brand names. The company markets its products to various customers, including wholesalers, distributors, chain stores, discount stores, mail order houses, catalog stores, department stores, and other retailers, as well as Internet-based e-tailers. It has a strategic licensing agreement with Electronic Arts Inc. (EA), which provides EA with the worldwide rights to create digital games for various platforms, including mobile phones, personal computers, and game consoles, as well as; and a strategic relationship with Universal Pictures to produce approximately three motion pictures based on certain of company?s brands. Hasbro sells its products through its own sales force and distributors primarily in the United States, Canada, Mexico, Europe, the Asia Pacific, Latin America, and South America. The company was founded in 1923 and is headquartered in Paw tucket, Rhode Island.

Advisors' Opinion:

• [By Eric Volkman]

  Hasbro (NASDAQ: HAS  ) is rolling the dice on mobile gaming. The company announced that it has bought a 70% stake in Backflip Studios, a Colorado-based producer of titles for that segment of the market. The price was $112 million in cash.

• [By Dan Caplinger]

  Hasbro (NASDAQ: HAS  )
  Hasbro shares many of the same features that Mattel sports, including a 29% average rate of annual dividend increases over the past 10 years and a current yield of 3.4%. If anything, Hasbro's prospects are even brighter than Mattel's, because Hasbro has done a better job of connecting with the highly popular Marvel line of movies and related entertainment. In addition, plans to reenergize the popular Star Wars franchise could lead to a brand-new wave of toy sales for Hasbro.

• [By Ben Levisohn]

  There’s no toying with Hasbro (HAS)–at least not its stock.

  European Pressphoto Agency

  Shares of Hasbro have surged 5.5% to $49.84 after the toy maker reported better than forecast earnings. Hasbro reported a profit of $1.31, beating expectations of $1.29, while revenue also beat.

  The Wall Street Journal reports that the good news was all overseas:

  Hasbro today said U.S. sales were down 5%, while international sales grew 11%, thanks to brand-hungry consumers in Latin America, Russia and Turkey…

  ��he two toughest areas around the world I�� say from a consumer sentiment continue to be Australia and the U.S.,��Hasbro Chief Executive Brian Goldner said on Monday�� conference call to discuss a 17% jump in profit. ��e��e seeing enthusiasm in Latin America and major areas of Europe particularly in Russia and Turkey.��/p>

  Girl’s toys also saw big gains, as My Little Pony helped that division grow by 29%. PiperJaffray’s Stephanie Wissink and Maria Vizuete explain why toys for boys could be the big driver of growth in 2014:

  The boys category exhibits more variability year to year based on key licensed properties, which account for near 40% of total sales. The category declined 17% in Q3 with the two year comparables to 2011 still reflected in recalibration back to more normalized revenue rates. The outlook for 2014 continues to support significant upside to models, in our view, with total boys category revenues modeled (currently) to be 40% less than 2011 – the last peak movie year – despite 2014 bearing significantly more box office tie-ins with Transformers, 3 Marvel properties, and what we think could be early sales in holiday 2014 of Star Wars (movie release 2015).

  Hasbro’s strength hasn’t necessarily translated into gains for other toy makers. Mattel (MAT) has fallen 0.5% to $42.50, while Build-a-Bear Workshop (BBW) has dropped 2.1% to $7.03. LeapFrog

Top Warren Buffett Companies For 2015: Powerwave Technologies Inc.(PWAV)

Powerwave Technologies, Inc. designs, manufactures, and markets end-to-end wireless solutions for wireless communications networks worldwide. It offers antennas, boosters, combiners, cabinets, shelters, filters, radio frequency power amplifiers, remote radio head transceivers, repeaters, tower-mounted amplifiers, and coverage solutions to improve coverage, capacity, and data speed in cellular, PCS, 3G, and 4G wireless communications networks. The company sells its products to wireless original equipment manufacturers and individual wireless network operators through its direct sales force, independent sales representatives, and resellers. The company was formerly known as Milcom International, Inc. and changed its name to Powerwave Technologies, Inc. in June 1996. Powerwave Technologies, Inc. was founded in 1985 and is headquartered in Santa Ana, California.

Top Warren Buffett Companies For 2015: Capital Radio (CAP.L)

Capital Radio, broadcasting all across Great BritainCapital FM is the most listened-to radio station in the British capital. It is the flagship of the Capital Radio group.The group operates a total of 19 radio frequencies all across the national territory. Looking to the future, it is also working on building a digital network, and already owns one digital frequency, Life.On the other hand, it broadcasts the output of its stations over the Internet, through its subsidiary Capital interactive, and has set up its own on-line music store, MusicCapital.com. It has also forged several partnerships enabling it to branch out further: For example with Emap, it has obtained multiplexing licenses (to broadcast several different channels on one network), and with Telstar it has taken over the record label Wildstar.Finally, it also sells advertising space via its subsidiary Capital Radio Interactive.

Top Warren Buffett Companies For 2015: Black Hills Corporation (BKH)

Black Hills Corporation, together with its subsidiaries, operates as a diversified energy company in the United States. The company’s Electric Utilities segment generates, transmits, and distributes electricity to approximately 202,000 electric customers in South Dakota, Wyoming, Colorado, and Montana; and distributes natural gas to approximately 35,000 gas utility customers in Cheyenne, Wyoming. It owns 859 Megawatts of generation capacity and 8,530 miles of electric transmission and distribution lines. The company’s Gas Utilities segment distributes natural gas to approximately 532,000 natural gas utility customers in Colorado, Nebraska, Iowa, and Kansas. It owns 624 miles of intrastate gas transmission pipelines and 19,979 miles of gas distribution mains and service lines. The company’s Oil and Gas segment is involved in the acquisition, exploration, development, and production of crude oil and natural gas primarily in the Rocky Mountain region. This s egment’s principal assets include the operating interests in the properties in the San Juan basin, the Powder River basin, and the Piceance basin; and non-operated interests in wells located in the Williston, Wind River, Bear Paw Uplift, Arkoma, Anadarko, and Sacramento basins. As of December 31, 2012, it had total reserves of approximately 81 billion cubic feet equivalent of natural gas and crude oil. The company’s Power Generation segment produces electric power and sells the electric capacity and energy primarily to other utilities under long-term contracts. Its Coal Mining segment produces coal at its coal mine located near Gillette, Wyoming. The company also provides appliance repair services to approximately 62,000 residential customers; and constructs gas infrastructure facilities for gas transportation customers. Black Hills Corporation was founded in 1941 and is headquartered in Rapid City, South Dakota.

Advisors' Opinion:

• [By Laura Brodbeck]

  Monday

  Earnings Releases Expected: Black Hills Corporation (NYSE: BKH), CME Group Inc. (NASDAQ: CME), Leapfrog Enterprises (NYSE: LF), Hill International, Inc. (NYSE: HIL) Economic Releases Expected: eurozone manufacturing PMI, British construction PMI, US factory orders, Chinese services PMI, Indian services PMI

  Tuesday

Top Warren Buffett Companies For 2015: MICRO FOCUS ORD GBP0(MCRO.L)

Micro Focus International plc provides enterprise application management solutions worldwide. The company offers software that allows companies to develop, test, deploy, assess, and modernize business-critical enterprise applications. Its product portfolio includes i.Sight, an application portfolio management and analysis tool that enable strategic planning, and application overhaul and modernization; Caliber, a enterprise software requirements definition and management tool, which is used to drive the development and testing of applications to the exact and changing needs of end users; and Rumba, a terminal emulation and user interface modernization tool that streamlines and modernizes key business processes. The company also offers Enterprise, a platform modernization tool, which modernizes application portfolios and platforms; StarTeam, a software change and configuration management tool that tracks changes across the software development lifecycle; and VisiBroker, a CO RBA middleware and application server. In addition, it provides Micro Focus Developer COBOL and software developer tools to modernize business-critical enterprise applications; and Silk software test management, test automation, and performance testing suite. Further, the company offers professional services comprising value profile day services; test process, portfolio, language, platform, and resource modernization services; test data management; value assurance; health check; field development solutions; software process improvement; project review services; customer care and education; and training services. Micro Focus International plc was founded in 1976 and is headquartered in Newbury, the United Kingdom.

Top Warren Buffett Companies For 2015: First Niagara Financial Group Inc.(FNFG)

First Niagara Financial Group, Inc. operates as the holding company for First Niagara Bank, N.A. that provides retail and commercial banking, and other financial services to individuals, families, and businesses. It offers retail deposit accounts, which include savings, negotiable order of withdrawal, checking, money market, and certificate of deposit accounts, as well as provides business savings and checking, money market, cash management accounts, and municipal deposit accounts. The company?s loan portfolio comprises commercial real estate and multi-family loans; commercial business loans; residential real estate loans; home equity loans; and consumer loans consisting of indirect mobile home loans, and personal secured and unsecured loans. It also sells insurance products, including commercial and personal insurance, surety bond, life, disability, and long-term care coverage products. In addition, the company offers risk management consulting services comprising altern ative risk and self-insurance services, claims investigation and adjusting services, and third party administration services for self insured workers? compensation plans. Further, it provides employee benefits plan and compensation consulting services. Additionally, First Niagara Financial Group offers wealth management services that manage client funds utilizing various third party investment vehicles consisting of stocks, bonds, mutual funds, and annuities, as well as other investment products, such as individual retirement accounts, education savings plans, and retirement plans. As of December 31, 2010 it operated 257 bank branches, including 115 in Upstate New York and 142 branches in Pennsylvania. The company was founded in 1870 and is based in Buffalo, New York.

Advisors' Opinion:

• [By John Maxfield]

  Given that you clicked on this article, it seems safe to assume you either own stock in First Niagara Financial (NASDAQ: FNFG  ) or are considering buying shares in the near future. If so, then you've come to the right place. The table below reveals the nine most critical numbers investors need to know about First Niagara Financial stock before deciding whether to buy, sell, or hold it.

• [By Jake L'Ecuyer]

  First Niagara Financial Group (NASDAQ: FNFG) was down, falling 9.86 percent to $9.32 on Q4 results. The company issued weak FY14 earnings outlook.

  Commodities
  In commodity news, oil traded down 0.70 percent to $96.64, while gold traded up 0.23 percent to $1,265.20.

Top Warren Buffett Companies For 2015: American Municipal Income Portfolio(XAA)

American Municipal Income Portfolio, Inc is a closed ended fixed income mutual fund launched and managed by FAF Advisors, Inc. It is co-managed by Nuveen Fund Advisors, Inc. and Nuveen Asset Management, LLC. The fund invests in fixed income markets. It seeks to invest in fixed income securities including various municipal securities, which include municipal derivative securities, such as inverse floating rate and inverse interest-only municipal securities. The fund also invests in futures contracts, options on futures contracts, and options, as well as interest rate swaps, caps, and floors. American Municipal Income Portfolio, Inc was formed on June 25, 1993 and is domiciled in United States.

Top Warren Buffett Companies For 2015: AutoNavi Holdings Limited(AMAP)

AutoNavi Holdings Limited provides digital map content, and navigation and location-based solutions in the People?s Republic of China (PRC). The company offers digital map data to various automobile manufacturers for in-dash navigation systems; and navigation solutions for use in in-dash navigation system to portable navigation device manufacturers based on their specific needs, which range from digital map data only to a digital map data, a navigation engine, and an user interface. It provides mobile/Internet location-based solutions to a mobile operator; mobile and Internet-based map application solutions that allow Web sites to embed location-based services capabilities into their Internet and enterprise applications; and MiniMap, an user-end map application software. The company also offers aerial digital maps and 3-D modeling applications to certain PRC government agencies and enterprises to meet their land usage survey, specific needs for 3-D geographic information, and other needs pursuant to a service contract arrangement. In addition, it has collaboration with certain mobile phone and tablet computer manufacturers and mobile operators to pre-install its navigation solutions. The company is headquartered in Beijing, China.

Advisors' Opinion:

• [By Belinda Cao]

  The Bloomberg US-China gauge climbed 0.3 percent May 3 to 92.48 in New York, capping its second weekly advance. AutoNavi Holdings Ltd. (AMAP), a digital map content provider based in Beijing, led gains on the index, climbing 15 percent in the week to a three-month high of $12.03.

• [By Sean Williams]

  I think we're lost
  I'm not sure if anyone's told China yet, but the navigation market is so last decade! Shares of China-based AutoNavi Holdings (NASDAQ: AMAP  ) have soared over the past week on essentially no news despite the glaring fact that its product portfolio is in a highly commoditized and easily replaceable industry.

Top Warren Buffett Companies For 2015: FutureFuel Corp. (FF)

FutureFuel Corp., through its subsidiary, FutureFuel Chemical Company, engages in the manufacture and sale of specialty chemicals and bio-based products primarily in the United States. The company operates in two segments, Chemicals and Biofuels. The Chemicals segment provides custom chemical manufacturing services for specific customers, such as bleach activators for detergent and consumer products manufacturers; proprietary herbicide and intermediates for life sciences companies; agrochemicals; and industrial and consumer products, such as cosmetics and personal care products, ink colorants, adhesion promoters, polymer additives, polymer and specialty dyes, specialty polymers, photographic and imaging chemicals, and food additives. This segment also manufactures and sells a range of performance chemicals, including a family of polymer (nylon) modifiers and small-volume specialty chemicals for various applications; a family of acetal-based solvents, consisting of diethoxy methane, dimethoxymethane, dibutoxymethane, and glycerol formal; and phenol sulfonic acid that build on sulfonations technology. Its chemical products are used in various markets and end uses, including detergents, agrochemicals, automotive, photographic imaging, coatings, nutrition, and polymer additives. The Biofuels segment produces and sells biodiesel, as well as petrodiesel in blends with or without biodiesel. This segment also operates a granary in central Arkansas that involves in the purchase and sale of agricultural commodities, primarily soybeans, rice, and corn. This segment markets its biodiesel products by truck and rail directly to customers. FutureFuel Corp. was formerly known as Viceroy Acquisition Corporation and changed its name to FutureFuel Corp. in 2006. FutureFuel Corp. was incorporated in 2005 and is based in St. Louis, Missouri.

Advisors' Opinion:

• [By Maxx Chatsko]

  3. Focus on efficiency
  A combination of factors plays a role in efficiently producing biodiesel. FutureFuel (NYSE: FF  ) , which owns an annual capacity of 59 million gallons to complement its niche chemical business, relies heavily on location. The company's two biorefineries don't have a nationwide infrastructure to aid in getting product to the market and are dependent on rail and barge access. Despite the FutureFuel's amazing progress is improving its process -- annual capacity jumped from just 35 million gallons in 2011 to 59 million gallons today -- the company admits that its relatively small operations may cease to exist given changes in feedstock prices, government mandates, and tax credits. �

Earnings Scheduled For October 23, 2013

Caterpillar (NYSE: CAT) is estimated to report its Q3 earnings at $1.67 per share on revenue of $14.32 billion.

Airgas (NYSE: ARG) is expected to report its Q2 earnings at $1.22 per share on revenue of $1.28 billion.

The Boeing Company (NYSE: BA) is estimated to report its Q3 earnings at $1.55 per share on revenue of $21.68 billion.

Dr Pepper Snapple Group (NYSE: DPS) is expected to report its Q3 earnings at $0.83 per share on revenue of $1.56 billion.

AT&T (NYSE: T) is projected to post its Q3 earnings at $0.65 per share on revenue of $32.19 billion.

Eli Lilly and Company (NYSE: LLY) is estimated to report its Q3 earnings at $1.04 per share on revenue of $5.76 billion.

Owens Corning (NYSE: OC) is projected to report its Q3 earnings at $0.65 per share on revenue of $1.39 billion.

E*TRADE Financial (NASDAQ: ETFC) is expected to post its Q3 earnings at $0.17 per share on revenue of $419.41 million.

Wyndham Worldwide (NYSE: WYN) is estimated to report its Q3 earnings at $1.36 per share on revenue of $1.41 billion.

Northrop Grumman (NYSE: NOC) is expected to report its Q3 earnings at $1.82 per share on revenue of $5.96 billion.

The Nasdaq OMX Group (NASDAQ: NDAQ) is projected to report its Q3 earnings at $0.62 per share on revenue of $502.62 million.

Lorillard (NYSE: LO) is expected to report its Q3 earnings at $0.81 per share on revenue of $1.27 billion.

Motorola Solutions (NYSE: MSI) is estimated to report its Q3 earnings at $1.02 per share on revenue of $2.13 billion.

WellPoint (NYSE: WLP) is projected to report its Q3 earnings at $1.82 per share on revenue of $17.62 billion.

F5 Networks (NASDAQ: FFIV) is estimated to post its Q4 earnings at $1.19 per share on revenue of $384.61 million.

US Airways Group (NYSE: LCC) is expected to report its Q3 earnings at $1.12 per share on revenue of $3.84 billion.

O'Reilly Automotive (NASDAQ: ORLY) is estimated to post its Q3 earnings at $1.65 per share on revenue of $1.75 billion.

Whiting Petroleum (NYSE: WLL) is projected to post its Q3 earnings at $1.06 per share on revenue of $678.69 million.

Skechers USA (NYSE: SKX) is expected to post its Q3 earnings at $0.61 per share on revenue of $518.22 million.

Terex (NYSE: TEX) is estimated to post its Q3 earnings at $0.59 per share on revenue of $1.95 billion.

Bristol-Myers Squibb Company (NYSE: BMY) is projected to report its Q3 earnings at $0.44 per share on revenue of $4.00 billion.

Tupperware Brands (NYSE: TUP) is expected to report its Q3 earnings at $1.03 per share on revenue of $623.34 million.

Varian Medical Systems (NYSE: VAR) is projected to post its Q4 earnings at $1.12 per share on revenue of $779.02 million.

Thermo Fisher Scientific (NYSE: TMO) is estimated to report its Q3 earnings at $1.28 per share on revenue of $3.18 billion.

General Dynamics (NYSE: GD) is expected to report its Q3 earnings at $1.68 per share on revenue of $7.76 billion.

Posted-In: Earnings scheduleEarnings News Pre-Market Outlook Markets

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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Caterpillar Inc. (CAT) Q4 Earnings Preview: A Fifth Wheel About To Come Off?

Caterpillar Inc. (NYSE:CAT) will release 2013 full-year and fourth-quarter financial results at 6:30 a.m. Central Time on Monday, January 27, 2014. The release will be available at http://www.caterpillar.com/earnings, and the full text of the news release will also be available on PR Newswire at about 6:30 a.m. Central Time.

Wall Street anticipates that the Dow Jones member will earn $1.28 per share for the quarter, which is down 12.33% from last year's $1.46 per share. iStock expects the industrial goods company to miss Wall Street's consensus number. The iEstimate is $1.24; four pennies below the street's outlook.

[Related -9 Stocks That Have Paid Dividends For Over 100 Years]

If the iEstimate is correct or at least on the right side of the surprise, it would be the fifth consecutive bearish surprise from the CAT.  In the twelve previous quarters, Caterpillar delivered 11 bullish surprises with just one misstep. The trend is your friend until it is no longer the trend.

While the heavy/farm equipment maker's bottom-line appears to be streaky, CAT's earnings-driven, stock price performance has split right down the middle for the last 16 quarters with eight red and eight green reactions. However, the January announcement has favored a price increase over a decline by three to one in the last four years.

That being said, gains weren't Earth moving at 1.6%, 2.6% and 3.6% in the three days surrounding earnings. What's with the point six? The lone January dip violated the .6 rule but was tame at -2.40%. Could they find another 0.20%?

[Related -International Business Machines Corp. (IBM): More Potholes In The Road To $20 In 2015]

Caterpillar shareholders have to be concerned with an economic slowdown in China and International Business Machines Corp.'s (NYSE:IBM) Chinese woes. Last quarter, CAT's sales in China improved in a quarter where sales decreased 18% year-over-year. If China starts to slow, the wheels could come off, as they say.

According to the Equipment Leasing & Finance Foundation, agricultural equipment demand is falling;   industrial machinery is growing slightly above average; transportation equipment is experiencing slow to average growth; construction equipment is forecasted for slow to average growth, too.  That's not an encouraging montage, is it? 

On the positive side, Caterpillar's management appears to be readying for slower times as inventory fell 13.86% in Q3. Management also is doing their part to manage the income statement and squeeze as much as possible out of sales. In the third quarter, total operating costs fell 12.27% as sales dropped at a faster clip of 18.16% year-over-year.

Overall: The iEstimate and current market conditions suggest Caterpillar Inc. (NYSE:CAT) is likely to make it five, five misses in a row. However, CAT's January EPS price-sensitivity could mean the price stays close to home despite another earnings miss.

Wall Street profit may drop 37%, bitten by laws, Congress

Wall Street's profit may fall 37% this year, hurt during the second half by rising interest rates, legal costs and budget turmoil in Washington, New York State Comptroller Thomas DiNapoli said.

Mr. DiNapoli forecast securities industry earnings at $15 billion in 2013, compared with $23.9 billion the year before, while employment has fallen near a post-recession low, in a report released Tuesday. A drop in profit may crimp bonuses, which reached an estimated $20 billion for 2012, he said.

“The political gridlock in Washington may take a bite out of the securities industry's profits for the fourth quarter,” Mr. DiNapoli, 59, said in a statement. “Washington's inability to resolve budget and fiscal issues is bad for business.”

An impasse over spending and raising the nation's borrowing limit led to a partial shutdown of U.S. government operations this month, as Republicans in Congress fought with Democrats over paring back the Affordable Care Act. The resulting turmoil rocked equities and pushed prices higher in the $4.1 trillion market for federal debt. That may lower earnings in the securities industry, which helps drive the city's economy, Mr. DiNapoli said.

“Failure to resolve the federal budget and debt ceiling impasse could disrupt the economy and hurt New York City and New York state,” said Mr. DiNapoli, a Democrat. Congress put off both issues with short-term fixes setting new deadlines next year.

Economic tax

“The impasse in Washington over the last several weeks was an unfortunate tax on the economy,” Ruth Porat, chief financial officer at Morgan Stanley, said on an Oct. 18 conference call with securities analysts. She said the end of the logjam, reached late Oct. 16, would restore growth and “broader market activity” to the pace both had reached before the shutdown that began Oct. 1.

Also an issue this year are legal expenses such as a proposed $13 billion settlement from JPMorgan Chase & Co. to end federal probes of its mortgage-bond sales. On Oct. 11, the biggest U.S. bank reported a loss, its first under chief executive Jamie Dimon, after a $7.2 billion charge to cover rising costs tied to litigation and regulatory probes.

Trading slump

Citigroup, the third-biggest U.S. bank, reported third-quarter profit that missed analysts' estimates as bond trading slumped and U.S. mortgage revenue fell -- the result of a rise in interest rates during the three months ending Sept. 30.

The industry's earnings in 2012 were the third-highest since 1995, and higher than any year before the economic crisis, Mr. DiNapoli said. The profits helped push bonuses up by 8%, he estimated in a February report.

Employment has tumbled on Wall Street. The number of jobs, at 163,400, rema! ined more than 13% lower than before the financial crisis, Mr. DiNapoli said Tuesday. Growth that followed the end of the recession in 2009 halted in the second half of 2011, according to his report.

The average salary for workers in the securities industry reached about $361,000 last year, compared with about $69,000 for the city's 3.4 million nongovernment jobs, the report shows. Total wages paid by securities firms fell 2.4% to $59.3 billion in 2012, yet still accounted for almost 22% of all pay received by nongovernment employees in the city.

Tax revenue

Taxes on the securities industry and its workers delivered $10.3 billion to state coffers, or almost 16% of all state revenue, the report showed. That was up slightly from fiscal 2012. New York City collected about $3.8 billion from levies on the businesses and their employees, up almost 27% from 2012 and amounting to 8.5% of all receipts.

Mr. DiNapoli said he expects state collections from the industry to be much higher in fiscal 2014, because taxpayers shifted their earnings to 2012 to avoid federal tax increases that took effect this year.

If earnings reach Mr. DiNapoli's projection for this year, that will top the $13.4 billion forecast in the city's four-year financial plan, even while falling from 2012, according to the report. Mr. DiNapoli said he expects the industry will continue to

Big-Box Retailers With the Blues Today

Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.

With the noise from Washington finally quieting down, investors can get back to focusing on what really matters: earnings. And as they do so today, the major indexes are mixed. As of 12:45 p.m. EDT the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is flat, while the S&P 500 is up 0.4% and the Nasdaq has jumped 0.9% higher. For more on which recent earnings reports are hurting the Dow today, click here.

Let's see which big retailers are struggling this afternoon.

Shares of Costco (NASDAQ: COST  ) are down 0.9% this afternoon, likely because of a Salmonella scare at one of the company's stores in San Francisco. Yesterday that location recalled 14,000 units of rotisserie chicken products that may have been contaminated according to the Department of Agriculture. The company initially recalled chicken products on Oct. 12, but after Costco consulted the California Public Health Department, the recall was expanded yesterday. As a result of the chicken scare, investors have sold off food producers today: Tyson Foods is down 4.2%, Sanderson Farms has lost 2.8%, and Pilgrim's Pride is off by 5.4%.  

Two other retail giants are struggling today: Shares of Home Depot (NYSE: HD  ) are down 0.7%, while Lowe's (NYSE: LOW  ) is off by 2.5%. With little news pertaining directly to the companies today, it's hard to say what's affecting the stocks, but they have received some bad news over the past few days in terms of housing data. On Wednesday the Mortgage Bankers Association reported that refinancing and home mortgage applications increased a mere 0.3% the previous week after rising 1.3% the week of Oct. 4. Additionally, purchase applications using government assistance fell 7% during the week, which was the lowest level we had seen since December 2007. 

This data could be causing investors to question the strength of the home improvement stores and whether they can live up to the growth that has been built into their the stock prices. Home Depot currently trades at 24 times trailing-12-month earnings and 17 times forward earnings, while Lowe's trades at 24 times trailing earnings and almost 18 times future earnings, which looks pricey compared to other big-box retailers.

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Sony downgraded to 'junk'

Moody's is concerned that Sony will not be able to maintain the profitability levels it had experienced years ago.

LONDON (CNNMoney) Sony's debt rating has been downgraded to "junk" status by Moody's, with the agency warning that profitability would likely remain "weak and volatile."

Shares in Sony (SNE) dipped by 3% in Japan as most Asian markets experienced significant losses Monday.

Moody's (MCO) explained that the Japanese company was facing extreme pressure in its TV and PC units, due to "intense global competition, rapid changes in technology, and product obsolescence."

Ultimately, Moody's concluded that it would be difficult for Sony to improve and stabilize its profitability.

"We expect the majority of [Sony's] core consumer electronics businesses -- such as TVs, mobile, digital cameras and personal computers -- to continue to face significant downward earnings pressure," Moody's wrote.

  Sony's hottest CES gadgets in 90 seconds

Sony released its Playstation 4 ahead of the Christmas period and recently announced it would introduce streaming games. While Moody's acknowledged that the successful launch of the Playstation 4 would help boost profitability, this wasn't enough to push profitability back to 2010 levels.

Sony shares rose 57% in 2013 as the Japanese markets rallied, though investors acknowledge that the company faces many competitive pressures from the likes of Microsoft (MSFT, Fortune 500) and Apple (AAPL, Fortune 500).

The downgrade comes in the same month that Nintendo (NTDOF) warned investors that it was expecting an operating loss of 35 billion yen ($335.2 million) for the fiscal year ending in March, following disappointing software and hardware sales in the busy end-of-year buying season.

Morning Briefing: 10 Things You Should Know

NEW YORK (TheStreet) -- Here are 10 things you should know for Monday, Sept. 23:

1. -- U.S. stock futures were pointing to gains on Wall Street Monday after a survey found an uptick in manufacturing in China.

European stocks were marginally lower. Asian shares ended mixed. Japan's stock market was closed for a public holiday. A powerful storm forced Hong Kong markets to close in the morning. In the afternoon, Hong Kong's Hang Seng fell 0.6%.

The Shanghai Composite Index rose 1.3% after HSBC said the preliminary version of its monthly purchasing managers' index for China rose to 51.2 from 50.1 in August. Numbers above 50 indicate an expansion in activity. 2. -- The economic calendar in the U.S. Monday includes the Markit PMI manufacturing index flash at 9 a.m. EDT. 3. -- U.S. stocks on Friday finished in the red but were able to eke out a third week of gains following the Federal Reserve's surprise decision Wednesday to keep its current $85 billion a month bond-buying program intact. Enthusiasm turned out to be short-lived as investors retreated to the sidelines on a host of uncertainties heading into the coming, data heavy week. The S&P 500 finished down 0.72% to 1,709.91 on Friday but closed 1.3% higher for the week. The Dow Jones Industrial Average fell by 1.19% to 15,451.09, but finished up 0.49% for the week. The Nasdaq edged down 0.39% to 3,774.73, but concluded the week up 1.41%. 4. -- Chancellor Angela Merkel's conservatives triumphed in Germany's election Sunday, and could even win the first single-party majority in more than 50 years. But while Merkel was headed for a third term, her center-right coalition partners risked ejection from parliament for the first time in post-World War II history. Depending on what parties end up in parliament, Merkel could also find herself leading a "grand coalition" government with the left-leaning Social Democrats or -- less likely -- with the environmentalist Greens. "This is a super result," said Merkel, Germany's chancellor since 2005 and the de facto leader of the response to Europe's debt crisis over the past three years. Merkel said it was "too early to say exactly how we will proceed" in forming a government. 5. -- Apple's (AAPL) online stores in each of the 11 countries participating in the iPhone 5s launch are showing stock outs until October, according to Apple Insider. As of late Saturday, Apple's online storefronts in Australia, Canada, China, France, Germany, Hong Kong, Japan, Puerto Rico, Singapore, the U.K. and US all show no available inventory for all nine iPhone 5s variations, with delivery dates pushed back into October, the report said. Apple launched the iPhone 5s and a less expensive version, the iPhone 5c, on Friday. 6. -- BlackBerry (BBRY) shares on Friday tumbled 17% to $8.73 after announcing a major restructuring that cuts 40% of its work force. Late on Friday, BlackBerry said in a pre-announcement of second-quarter earnings that it will refocus on its enterprise users after falling far short of expectations on its handset sales. The announcement marks a stark change of course for BlackBerry, which kicked off the year by ending lucrative charges to telecom carriers for its IT services, in a bid to win over consumer smartphone users. While BlackBerry's newest line of handsets such as its Z10 and its Q10 made it on Verizon (VZ) and AT&T (T) displays, the strategy backfired and left the company with about $2 billion in total unsold smartphone inventory that will now be written off. 7. -- Citigroup (C) has suffered a significant decline in trading revenue that threatens to depress its earnings, The Financial Times reported, citing to people familiar with conversations between investors and the bank in recent days. With a week to go before the end of the quarter, Citigroup, the third-largest bank in the U.S. by assets, appears ready to join several of the powerhouses of bond trading in reporting a slide in trading revenue after a sharper-than-expected summer slowdown in markets businesses, the FT reported. Those familiar with Citigroup's discussions with its investors said the bank had highlighted a market-wide slowdown in activity. Some investors believe revenue will fall by more than 10%. Citigroup declined to comment for the FT.

8. -- Red Hat (RHT), a provider of open source software solutions, is expected by analysts to report after Monday's closing bell fiscal second-quarter earnings of 33 cents a share on revenue of $372.1 million.

9. -- Microsoft (MSFT) is expected to announce new Surface tablet computers, including a version with a smaller screen to compete with Google's Nexus 7 and Apple's iPad Mini. Microsoft has an announcement event scheduled in New York on Monday. 10. -- AMC's "Breaking Bad" won the Emmy Award for best drama series at Sunday night's awards show, while ABC's "Modern Family" won the prize for best comedy series. -- Written by Joseph Woelfel >To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: tips@thestreet.com.

Copyright 2013 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

The Deal: Huntsman Buys Rockwood's Titanium Dioxide Business

NEW YORK (TheStreet) -- Chemicals company Huntsman (HUN) said Tuesday it would acquire the performance additives and titanium dioxide assets of Rockwood Holdings (ROC) in a deal valued at $1.1 billion.

Terms of the deal also call for Huntsman to assume unfunded pension liabilities estimated at $225 million. The Woodlands, Texas-based acquirer said it intends to combine some of the assets to be acquired with its existing titanium dioxide unit with the hope of launching an initial public offering for the combined business within two years. [Read: Fall of the Bank Titans]

Huntsman said that post-deal it would be the world's second-largest producer of titanium dioxide, which is used to create white paint and coatings. Huntsman is also buying Princeton, N.J.-based Rockwood's color pigment business and chemicals that are used in the forestry, water treatment and rubber industries.

"This acquisition provides a unique opportunity to unlock value within our pigments business and builds on the strong improvements we have made to its competitiveness," company CEO Peter R. Huntsman said in a statement. "The transaction announced today is the next step in our long-term value creation strategy for our pigments business." Huntsman said the company believes it can extract about $130 million in annual cost savings from the combination by the end of 2015. The deal values the Rockwood assets at about 5.5 times 2014 estimated adjusted Ebitda, or 3.3 times Ebitda should the cost saving targets be hit. For Rockwood, the deal continues an aggressive campaign to sell assets and revamp its business. The company in January 2013 announced plans to repurchase $400 million in common shares, pay down debt, increase the dividend and divest noncore businesses. The company in the months since has announced sales totaling $3.9 billion, including shedding its clay-based additives to British buyout firm Cinven Ltd. for 1.49 billion pounds ($1.98 billion) and its rheology business to Germany's Altana AG for $635 million. "With the sale of these businesses, we have successfully completed, ahead of schedule, all of our key objectives for 2013," Rockwood chairman and CEO Seifi Ghasemi said in a statement. "We remain committed to a disciplined approach in implementing our long-term business strategy, which is to further enhance shareholder value by creating a premier global specialty chemical company with market leading positions in all of its businesses." Bank of America Merrill Lynch was financial adviser to Huntsman and represented by Weil, Gotshal & Manges LLP. Vinson & Elkins LLP advised Huntsman. The Vinson & Elkins team consisted of Jeff Floyd, Steve Gill, Kai Haakon Liekefett, John Rosenkild, Han Gao, Bobak Fatemizadeh, Kelly Sanderson and Matthew Greenberg. [Read: Investment Ideas From Day 1 of the NY Value Investing Congress] In addition, V&E's Ted Stockbridge, Adam Lyons, Mark Wang, Larry Nettles, Matt Dobbins, David D'Alessandro, Jared Whalen, Billy Vigdor, Sean Becker, Martin Luff, John Lynch, Lina Dimachkieh, Peter Mims, Devika Kornbacher, Lavonne Hopkins, Scot Dixon, Sandy Weiner, Prentiss Cutshaw, Rochelle Thomas, Dave Johnson, Bill Lawler, Kevin Davis, Guy Gribov and Zach Rider also assisted in the transaction. Rockwood received financial advice from Lazard and legal counsel from Hughes Hubbard & Reed LLP and a team from Willkie Farr & Gallagher LLP. consisting of Georg Linde, Patrick Meiisel, Christian Rolf, Annette Peron, Gregory F. de Saxc� and Maurizio Delfino. The Hughes Hubbard team included Jim Modlin, Dan Litowitz, Wayne Josel, Christine Lamsvelt, Alison Peyser, Michael Traube, Jillian Kane, Justin Greenbaum, Andrew Braiterman, Spencer Harrison, Susan Campbell, Alex Anderson and Erin DeCecchis. -- Written by Lou Whiteman in New York

Tesla Slips As Musk Says Short Sellers Slightly Less Crazy Than Before

Shares of Tesla (TSLA) were down about 0.3% at recent check; the stock was also down after hours yesterday, when Elon Musk told Fox Business Network that short sellers are "not as crazy" to bet against the stock as they were in the past, given its recent rally.

From the interview: "In the past I said it's really crazy to short Tesla. Is it so crazy to short Tesla right now? I mean it's not as crazy but I still think it's probably not a good idea."

So, not exactly a damning review of his own company, but enough to send the shares down a bit at midday. Although with the shares up more than 440% in the past twelve months, it might have been crazier of Musk not to acknowledge that the rally could leave some investors skeptical (however unjustifiably, in his view).

Or maybe investors are signaling their disapproval of potentially naming a child after the electric car company.

Earlier this week, Bloomberg weighed in on Tesla's plan to offer buybacks.

Rising Prices Stymie New Home Sales

The U.S. Census Bureau this morning released data on new single-family home sales for July. Sales dropped 13.4% month-over-month to a seasonally adjusted annual rate of 394,000, from a downwardly revised June sales figure of 455,000. Economists had expected a seasonally adjusted annual rate of 487,000. The July rate is 6.8% above the rate for July 2012. At the peak in 2005, new home sales posted a seasonally adjusted annual rate of nearly 1.4 million.

The Census Bureau also reported that the median sales price for new homes sold in July was $257,200, about 3% above the June median, and the average sales price was $322,700, up about 9.3% from June. The median sales price for a new house in June was $249,700 and the average sales price was $295,000.

At the end of July, the number of new homes for sale totaled 171,000, a supply of 5.2 months, up from a supply of 3.9 months at the end of June.

Higher median prices and sharply higher average prices likely had a lot to do with the drop in new home sales in July. Coupled with higher mortgage interest rates, the incentives for buyers have begun to fade away. House prices are still well below their peak in 2005 to 2006 and interest rates remain below 5%. The perception among buyers, however, may be that houses are getting too expensive again.

Santander Consumer USA (SC) Opens at $25.75

NEW YORK (TheStreet) -- Santander Consumer USA priced 75 million shares at $24 for its initial public offering with Citigroup  (C) and J.P. Morgan (JPM) as joint book running managers for the offering.

The stock opened at $25.75 on Thursday and had a high of $26.48 as of 10:30 a.m., by which point it had already amassed a volume of more than 17 million. The company originally intended to offer 65,217,391 shares priced between $22 and $24 a share and was indicated to open between $24.25 and $24.50.

Santander also announced Thursday that it had initiated a letter of intent with Maserati North America to provide multiple auto financing services to Maserati customers and dealers in the U.S. Santander will offer dealer floor plan financing, consumer retail and lease financing for Maserati vehicles and other appropriate services and products. Both Santander and Maserati can decide to initiate a definitive contract at a later date.

SC data by YCharts

Stock quotes in this article: SC,, C,, JPM 

Is Big Blue's Run Over?

In this video from Wednesday's edition of Investor Beat, host Chris Hill and Motley Fool analysts Matt Koppenheffer and Mike Olsen dig into the biggest investing stories from the market today.

The Dow index was singlehandedly dragged down by one stock today, as IBM (NYSE: IBM  ) reported fourth-quarter earnings. Despite growing profits by 6%, overall revenue fell by more than 5%, which sent the stock tumbling. In the lead story from today's Investor Beat, Matt and Mike discuss just how bad this quarter was for Big Blue, and whether investors should be optimistic about the company's turnaround plan.

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5 Stocks Set to Soar on Bullish Earnings

DELAFIELD, Wis. (Stockpickr) -- Short-sellers hate being caught short a stock that reports a blowout quarter. When this happens, we often see a tradable short squeeze develop as the bears rush to cover their positions to avoid big losses. Even the best short-sellers know that it's never a great idea to stay short once a bullish earnings report sparks a big short-covering rally.

>>5 Stocks to Buy for a Short Trading Week

This is why I scan the market for heavily shorted stocks that are about to report earnings. You only need to find a few of these stocks in a year to help enhance your portfolio returns -- the gains become so outsized in such a short time frame that your profits add up quickly.

That said, let's not forget that stocks are heavily shorted for a reason, so you have to use trading discipline and sound money management when playing earnings short-squeeze candidates. It's important that you don't go betting the farm on these plays and that you manage your risk accordingly. Sometimes the best play is to wait for the stock to break out following the report before you jump in to profit off a short squeeze. This way, you're letting the trend emerge after the market has digested all of the news.

Of course, sometimes the stock is going to be in such high demand that you risk missing a lot of the move by waiting. That's why it can be worth betting prior to the report -- but only if the stock is acting technically very bullish and you have a very strong conviction that it is going to rip higher. Just remember that even when you have that conviction and have done your due diligence, the stock can still get hammered if The Street doesn't like the numbers or guidance.

>>4 Big Stocks to Trade (or Not)

If you do decide to bet ahead of a quarter, then you might want to use options to limit your capital exposure. Heavily shorted stocks are usually the names that make the biggest post-earnings moves and have the most volatility. I personally prefer to wait until all the earnings-related news is out for a heavily shorted stock and then jump in and trade the prevailing trend.

With that in mind, here's a look at several stocks that could experience big short squeezes when they report earnings this week.

United Rentals

My first earnings short-squeeze trade idea is industrial equipment and rental player United Rentals (URI), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect United Rentals to report revenue of $1.33 billion on earnings of $1.47 per share.

The current short interest as a percentage of the float for United Rental is very high at 12.5%. That means that out of the 92.36 million shares in the tradable float, 11.57 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of URI could easily spike sharply higher post-earnings as the bears rush to cover some of their bets.

>>5 Stocks Ready to Break Out

From a technical perspective, URI is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares moving higher from its low of $52.39 to its recent high of $82.57 a share. During that uptrend, shares of URI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of URI within range of triggering a big breakout trade post-earnings.

If you're bullish on URI, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $82.57 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.33 million shares. If that breakout hits, then URI will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $95 to $100 a share.

I would simply avoid URI or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some key near-term support levels at $77 to $75 a share high volume. If we get that move, then URI will set up to re-test or possibly take out its 50-day moving average of $72.74 a share. Any high-volume move below that level will then give URI a chance to tag $67.50 to $65 a share.

Cree

Another potential earnings short-squeeze play is semiconductor player Cree (CREE), which is set to release its numbers on Tuesday after the market close. Wall Street analysts, on average, expect Cree to report revenue $412.46 million on earnings of 39 cents per share.

>>4 Tech Stocks Rising on Unusual Volume

Just recently, Wedbush said it expects Cree to report roughly in-line second quarter results and thinks the company could provide weak third quarter guidance. However, the firm believes the company's margins and revenue can expand over the longer term, as LED chip prices increase. The firm maintains its $77 price target and outperform rating on shares of CREE.

The current short interest as a percentage of the float for Cree stands is pretty high at 9.3%. That means that out of the 116.96 million shares in the tradable float, 10.99 million shares are sold short by the bears. This is far from a huge short interest, but it's more than enough to spark a solid short-covering rally on shares of CREE post-earnings if the company can deliver the earnings news the bulls are looking for.

From a technical perspective, CREE is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently gapped down sharply from around $68 to $60.14 a share with above-average volume. Following that gap down, shares of CREE have held support just above its 200-day moving average of $61.72 a share.

If you're in the bull camp on CREE, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $64.75 to $67.72 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.28 million shares. If that breakout hits, then CREE will set up to re-fill some of its previous gap-down-day zone from last October that started at $75.98 a share.

I would simply avoid CREE or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below both its 200-day moving average at $61.72 a share to its 50-day moving average of $59.21 a share with high volume. If we get that move, then CREE will set up to re-test or possibly take out its next major support levels at $55 to $52 a share. Any high-volume move below those levels will then put its next major support level at $48 into range for shares of CREE.

Fusion-IO

Another potential earnings short-squeeze candidate is database solutions provider Fusion-IO (FIO) which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Fusion-IO to report revenue of $89.28 million on a loss of 10 cents per share.

>>5 Stocks Under $10 Set to Soar

The current short interest as a percentage of the float for Fusion-IO is very high at 16.8%. That means that out of the 90.93 million shares in the tradable float, around 16.55 million shares are sold short by the bears. This is a very high short interest on a stock with relatively low tradable float. If the bulls get the earnings news they're looking for, then shares of FIO could easily skyrocket higher post-earnings as the bears jump to cover some of their bets.

From a technical perspective, FIO is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last five months, with shares plunging lower from its high of $15.50 to its recent low of $8.32 a share. During that downtrend, shares of FIO have been consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of FIO have recently formed a double bottom chart pattern at $8.40 to $8.32 a share. Following that bottom, shares of FIO have now started to move within range of triggering a major breakout trade post-earnings.

If you're bullish on FIO, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $9.33 to $9.82 a share and then once it clears some more key overhead resistance at $9.95 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 3.39 million shares. If that breakout hits, then FIO will set up to re-test or possibly take out its next major overhead resistance levels at $11.17 to $11.31 a share. Any high-volume move above those levels will then give FIO a chance to re-fill some of its gap-down-day zone from last October that started at $13.50 a share.

I would avoid FIO or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 52-week low at $8.32 a share with high volume. If we get that move, then FIO will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible downside targets off that move are $7 to $6 a share.

Umpqua

Another earnings short-squeeze prospect is banking stock Umpqua (UMPQ), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Umpqua to report revenue of $137.08 million on earnings of 25 cents per share.

>>5 Stocks With Big Insider Buying

The current short interest as a percentage of the float for Umpqua is extremely high at 23%. That means that out of the 110.56 million shares in the tradable float, 25.45 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 9.2%, or by about 2.15 million shares. If the bears get caught pressing their bets into a bullish quarter, then shares of UMPQ could easily rip sharply higher post-earnings as the bears rush to cover some of their positions.

From a technical perspective, UMPQ is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last four months and change, with shares moving higher from its low of $15.43 to its recent high of $19.50 a share. During that uptrend, shares of UMPQ have been making mostly higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of UMPQ within range of triggering a big breakout trade post-earnings.

If you're bullish on UMPQ, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $19.21 to its 52-week high at $19.65 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.17 million shares. If that breakout hits, then UMPQ will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $25 to $27 a share.

I would simply avoid UMPQ or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day moving average of $18.21 a share to more key near-term support at $18 a share with high volume. If we get that move, then UMPQ will set up to re-test or possibly take out its next major support levels $17 to $16 a share, or even its 200-day moving average at $15.77 a share.

BancorpSouth

My final earnings short-squeeze play is banking player BancorpSouth (BXS), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect BancorpSouth to report revenue of $165.72 million on earnings of 28 cents per share.

Recently, RBC Capital raised its price target on shares of BancorpSouth to $27 from $23. The firm thinks BancorpSouth will look for additional acquisitions after it agreed to buy Ouachita Bancshares.

The current short interest as a percentage of the float for BancorpSouth stands at 8.1%. That means that out of the 83.47 million shares in the tradable float, 6.73 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 14.8%, or by about 870,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of BXS could easily spike sharply higher post-earnings as the bears rush to cover some of their positions.

From a technical perspective, BXS is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last five months, with shares moving higher from its low of 18.84 to its recent high of $25.54 a share. During that uptrend, shares of BXS have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of BXS within range of triggering a big breakout trade post-earnings.

If you're in the bull camp on BXS, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance levels at $25.08 to its 52-week high at $25.54 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 733,608 shares. If that breakout hits, then BXS will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $33 to $35 a share.

I would avoid BXS or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day moving average of $24.11 a share to more key near-term support levels at $24.07 to $23 a share with high volume. If we get that move, then BXS will set up to re-test or possibly take out its next major support levels at $22 to $21 a share, or even its 200-day moving average of $20.01 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short-Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com.

You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.