While Garmin's global-positioning gear can pierce the fog to pinpoint your location, the company's financial officers can't see through the murky economic scenario, and the electronics maker said Monday it would not offer guidance for its 2009 results until the clouds clear.

In the current climate, that, combined with a fourth-quarter earnings report that missed estimates by a nickel, wasn't so bad.

Investors were so impressed, they pushed Garmin's stock up 9.6%, or $1.46, to $16.63, in midday trading. That's still a far cry from the $120 level near which it peaked in 2007.

The highlight of the the quarter ending Dec. 27 was Garmin's ability to maintain margins, despite its sales falling by a fifth. It recorded a gross margin of 41.1%, down only modestly from 44.3% in the third quarter, and 41.8% in the fourth quarter of 2007.

Times have been tough for Garmin (nasdaq: GRMN - news - people ). Though its car-navigation systems were hot items for the 2007 holiday season, prices fell fast last year as consumers pulled back and spent their electronics dollars on laptops and televisions.

For the quarter, Garmin's sales totaled $1.0 billion, 20.0% below the $1.2 billion reported in the previous year's corresponding period, and just shy of the $1.1 billion Wall Street had forecast.

Earnings dropped 48.7%, to $157.7 million, or 78 cents per share, from $307.3 million, or $1.39 per share. Excluding foreign-exchange considerations, earnings only fell 93 cents per share, from $1.31 cents per share. That, however, was below the 98 cents analysts had predicted.

Earlier this month Garmin and Asustek Computer announced they will make phones based on global-positioning satellite technology, which is what powers Garmin's navigation devices

Mounting criticism has forced the social network to revert to its old terms of service.

With the first wave of iPhone contracts expiring in June, consumers have plenty of other options.

U.S. stock futures are trading mixed this morning, pointing toward a somewhat positive open, despite weakness on the Nasdaq due to poorly received earnings from Hewlett-Packard (HPQ). The leading PC and computer peripherals manufacturer reported a 13% plunge in first-quarter earnings after the close last night. Other companies in focus this morning include Whole Foods market (WFMI), which is 16% higher ahead of the open following solid quarterly results, and Sprint Nextel (S), which gained about 3% in pre-market activity due to a narrowed quarterly loss. Wall Street's mood could shift dramatically, however, as key economic data, including the January producer price index (PPI), are slated for release later this morning.

Checking in on currencies and commodities, the U.S. Dollar Index is taking a breather following a strong rally earlier this week. At last check, the index was off 0.92% at 87.19 in pre-market activity. Gold futures, meanwhile, have gained a mere $2.40 an ounce to trade at $980.60 in London, with traders closely watching the equity markets for signs of strength. Finally, crude oil futures are on the mend, with the March contract up 3.32% at $35.77 per barrel in electronic trading.

After the close last night, Hewlett-Packard (HPQ: sentiment, chart, options) reported a fiscal first-quarter profit of $1.9 billion, or 75 cents per share, compared with a profit of $2.1 billion, or 80 cents per share, last year. Revenue rose 1% to $28.8 billion from $28.5 billion. Excluding 1-time items, HPQ earned 93 cents per share. Analysts were looking for earnings of 93 cents per share on $31.9 billion in sales. For its second quarter, the company expects earnings of 70 cents to 72 cents per share, or an adjusted 84 cents to 86 cents per share. Sales should fall 2% to 3% from a year earlier, which would equal $27.5 billion to $27.7 billion. The figures were well below the current consensus estimate for 89 cents per share on $30.95 billion in sales.

Whole Foods Market (WFMI: sentiment, chart, options) reported that net income fell 17% from the year-earlier quarter due to slowing store traffic and legal costs. Whole Foods posted a first-quarter profit of $32.3 million, or 20 cents per share, down from $39.1 million, or 28 cents per share, last year. However, earnings topped analyst expectations for 19 cents per share. Sales were flat at $2.5 billion. Comparable-store sales fell 4% compared with a 9% gain last year.

Finally, Sprint Nextel (S: sentiment, chart, options) said it lost $1.62 billion, or 57 cents per share, narrowing its loss from the same quarter last year of $29.31 billion, or $10.31 per share. Revenue for the quarter was $8.43 billion, compared to $9.85 billion. Analysts had expected sales of $8.55 billion. "In tough economic times, we're generating substantial cash and reducing costs to ensure we remain financially sound. We already have the cash on hand to be able to meet our debt service requirements at least through the end of 2010," said Dan Hesse, Sprint Nextel chief executive.

Earnings Preview

Today, Apache (APA), CVS Caremark (CVS), Newmont Mining (NEM), and Crocs (CROX) are slated to step into the earnings confessional. Keep your browser at SchaeffersResearch.com throughout the day for more.

Economic Calendar

On the economic front, the Street must digest the January producer price index (PPI), the core PPI, January's leading economic indicators, the February Philadelphia Fed's manufacturing index, and the weekly reports on U.S. petroleum supplies and jobless claims. We round out the week on Friday with the consumer price index (CPI) and the core CPI.

Market Statistics

Equity option activity on the CBOE saw 1,251,244 call contracts traded on Wednesday, compared to 1,098,962 put contracts. The resultant single-session put/call ratio slipped to 0.88, while the 21-day moving average held at 0.75.

**The volume data shown above is from the Nasdaq and NYSE exchanges only. It does not include regional volume activity, which means that other daily volume quotes you see may be higher.**

Priceline.com Soars Following Earnings Report, Threatens Short Sellers

Leading discount travel company impresses Wall Street with solid earnings report

by Joseph Hargett (jhargett@sir-inc.com) 2/19/2009 10:50 AM

Shares of priceline.com Incorporated (PCLN: sentiment, chart, options) have soared more than 17% so far this morning, as traders react to the company's stronger-than-expected quarterly report. After the close last night, Priceline said that fourth-quarter profit rose to $33.3 million, or 73 cents per share, from $32.9 million, or 68 cents per share, last year. On an adjusted basis, earnings arrived at $1.29 per share. Revenue rose to $406 million from $334.9 million last year. Analysts were looking for a profit of $1.05 per share on revenue of $378.1 million.

Looking ahead, Priceline said it sees first-quarter adjusted earnings of 85 cents to 95 cents per share. Wall Street's consensus first-quarter estimate currently stands at 58 cents per share.

"We are in the midst of a period of unprecedented economic turbulence that is significantly impacting travel demand, pricing and currency exchange rates," said President and Chief Executive Jeffrey H. Boyd. But Boyd noted that the company continued to grow and acquire market share during the quarter.

Analysts were quick to weigh in on the performance, with S&P Equity Research upgrading the shares to "buy" from "hold," and Citigroup boosting its price target to $105 per share from $83 per share. Furthermore, Piper Jaffray said "Despite the macroeconomic slowdown, we expect Priceline to continue to grow through domestic market share gains and a dominant international business."

Digging into the brokerage bunch, we find that 5 of the 9 analysts following PCLN rate the shares a "buy" or better, leaving only a modest amount of room for potential upgrades. Meanwhile, Thomson Reuters reports that the average 12-month price target for PCLN rests at $86.89 per share - a mere 7.5% premium to the stock's current trading range near $80 per share. Should more brokerage firms upgrade the equity or increase their price targets, we could see PCLN extend its recent rally.

Checking the Charts

Speaking of technical strength, PCLN has enjoyed a solid run higher since rebounding from its October 2008 lows. Specifically, the shares have added more than 79% since hitting a low of $45.15 on Oct. 28. The stock has been aided in its run higher by support at its 10-week and 20-week moving averages. Furthermore, today's earnings-induced rally has placed PCLN above formerly staunch resistance at the round-number 80 level. If the equity can close the week above this area of long-term resistance, it could be a bullish sign for the shares.

Such a bullish technical move could be trouble for short sellers. Following a 4.27% increase in the number of PCLN shares sold short during the most recent reporting period, more than 23% of the stock's float is now sold short. If the security can establish a foothold above the 80 level, it could spook these bearish investors into buying back their positions, potentially resulting in a short squeeze, or short-covering rally, for PCLN.

Unless demand for cars can be revived, it may not matter how much fat GM and Chrysler cut.

Stocks faltered again in New York Wednesday, as investors wrestled with viability plans from two of Detroit's automakers, digested the Commerce Department's latest report on the housing market and mulled the Obama administration's housing market plan.

After Tuesday's close, Chrysler and General Motors (nyse: GM - news - people ) filed restructuring updates with the Treasury Department. The reports were a condition of a $13.4 billion loan package that the carmakers received from the government late in 2008. Both companies said they are making progress, but will need additional loans to outlast the downturn in consumer spending that has crippled domestic auto sales. GM, which said it could need more than $30.0 billion by 2011 in order to remain on pace for sustainable profitability by 2012, gained 6 cents, or 2.8%, to $2.24 Wednesday. (See "Loans Can't Bridge Detroit Disconnect.")

The major averages opened higher on a reflex to a steep drop Tuesday, but less than an hour into the session stocks had slipped back into the red. The Dow Jones industrial average was down 60 points, or 0.8%, to 7,493; and the Nasdaq fell 11 points, or 0.8%, to 1,459; while the Standard & Poor's 500 lost 7 points, or 0.9%, to 782, threatening to test its Nov. 2008 lows.

The Treasury offered an outline of the housing plan Wednesday morning, which includes additional preferred stock purchase agreements with Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ), help with refinancing and $75.0 billion for loan modifications that would include government subsidies for certain homeowners at risk of foreclosure. President Obama is due to explain the plan in Arizona later in the day. Earlier Wednesday, the Commerce Dept. said housing starts and completions were down sharply in January, as were permits for new building. (See "Fannie And Freddie Redux.")

Bond insurer MBIA (nyse: MBI - news - people ) announced it will split itself in two, establishing a separate public finance guarantee insurance company that will concentrate on municipal bonds. The move would shield the firm's muni bond business from its activities in structured finance and international bonds. Shares of MBIA gained $1.33, or 38.2%, to $4.81, early in the session.

Deere & Company (nyse: DE - news - people ) lost $1.66, or 5.0%, to $31.83, after the farm equipment maker's first-quarter earnings fell short of analyst expectations. On an encouraging note, Deere said it has not had trouble accessing credit to fund its own needs and financing for customers.

Federal Reserve Chairman Ben Bernanke will make a speech on the central bank's balance sheet in Washington Wednesday afternoon, and the Fed's minutes from its January monetary policy meeting will be released shortly afterward.

Thomson Reuters contributed to this article.

In an about-face following a torrent of online protests, Facebook is backing off a change in its user policies while it figures how best to resolve questions like who controls the information shared on the social networking site.

The site, which boasts 175 million users from around the world, had quietly updated its terms of use - its governing document - a couple of weeks ago. The changes sparked an uproar after popular consumer rights advocacy blog Consumerist.com pointed them out Sunday, in a post titled "Facebook's New Terms Of Service: 'We Can Do Anything We Want With Your Content. Forever.'"

Facebook has since sought to reassure its users - tens of thousands of whom had joined protest groups on the site - that this is not the case. And on Wednesday morning, users who logged on to Facebook were greeted by a message saying that the site is reverting to its previous terms of use policies while it resolves the issues raised.

Facebook spelled out, in plain English rather than the legalese that prompted the protests, that it "doesn't claim rights to any of your photos or other content. We need a license in order to help you share information with your friends, but we don't claim to own your information."

Tens of thousands of users joined protest groups on Facebook, saying the new terms grant the site the ability to control their information forever, even after they cancel their accounts.

This prompted a clarification from Mark Zuckerberg, Facebook's founder, who told users in a blog post Monday that "on Facebook, people own their information and control who they share it with."

Zuckerberg, who started Facebook while still in college, also acknowledged that a "lot of the language in our terms is overly formal and protective of the rights we need to provide this service to you."

A would-be challenger to Google Inc. said Tuesday it is suing the Internet search leader for alleged abuses that include illegally rigging its prices to thwart potential competitive threats.

In a 38-page page complaint, TradeComet.com LLC accused Google (nasdaq: GOOG - news - people ) of manipulating its system for setting ad rates to make it too expensive for a specialty search engine called SourceTool to promote itself within Google's vast online marketing network.

In a press release, TradeComet said it filed its antitrust lawsuit in a New York federal court.

Google said it hadn't reviewed the allegations as of late Tuesday, but the Mountain View-based company reiterated its belief that there are plenty of other online advertising options, including networks run by rivals Yahoo Inc. (nasdaq: YHOO - news - people ) and Microsoft Corp. (nasdaq: MSFT - news - people )

"As we have consistently made clear, the advertising market in which Google operates is highly competitive, and advertisers have a huge range of choices," Google said in a statement.

TradeComet's lawsuit is the latest legal action to allege Google has used its widening market power to create a monopoly that enables it to bully rivals or squeeze out Web sites that it doesn't like.

Google processes nearly two-thirds of the Internet search requests in the United States and sells an even larger chunk of the text-based ad links that appear alongside search results and other content on millions of Web pages served up each day.

Chrysler asked government officials today for an additional $5 billion in loans to ride out the deepening economic slump.