By Suzanne McGee

With earnings season coming to a close, and the Facebook (FB) IPO having delivered entirely the wrong kind of "pop," U.S. financial markets now are increasingly likely to find their fate being shaped by two unpleasant scenarios: "taxmageddon" and "drachmageddon."

A foretaste of things to come hit the market Tuesday, in the shape of two pieces of news that rocked investor confidence.  

Information provided by Theflyonthewall.com

Shares of Dell (DELL) plunged $2.66, or 17.64%, to $12.42 after the company reported weaker than expected first-quarter results and guided to second-quarter revenue below consensus.

The company's commentary on the challenging economic backdrop and how consumers have moved toward mobile devices and away from traditional PCs sunk peers as well, including Hewlett-Packard (HPQ), which is due to report after the close.  

When Michael Dell returned in 2007 to run the company he founded in his University of Texas dorm room more than two decades earlier, Wall Street hailed the return of the prodigal CEO.

One of the few voices of skepticism was that of Wharton professor Peter Cappelli.

 

By Richard Moroney, Dow Theory Forecasts

With spring storms washing away some of the market's first-quarter gains, investors should consider Oracle (ORCL), a company equipped to handle choppy waters.

Five of Oracle's six Quadrix category scores (our proprietary rating system) rank in the top 25% of our research universe, reflecting steady operating momentum, a strong balance sheet, and compelling valuation. 

By Mike Cintolo, Cabot Top Ten Trader

Medical practices in the U.S. are moving toward electronic record-keeping, workflow organization and billing, and Cerner (CERN) is riding the wave. 

The move toward the use of electronic records is partly a result of cost savings and increased efficiency and partly due to government mandates and subsidies for the changeover as a result of health care reform. 

Information provided by Theflyonthewall.com

Wednesday's noteworthy upgrades:  

• Aeropostale (ARO) upgraded to Outperform from In-Line at Imperial Capital 
• Applied Materials (AMAT) upgraded to Neutral from Sell at Goldman 
• Blackstone (BX) upgraded to Buy from Neutral at Sterne Agee 
• Bunge (BG) upgraded to Outperform from Market Perform at BMO Capital 

 

As Shaw Group (SHAW) prepares to sell its energy and chemicals unit to France's Technip, some investors expect the move will unlock the value of the company as a leader in nuclear plant design and construction for which global demand is starting to ramp up.

 

Shaw is a Louisiana-based major provider of engineering, procurement and construction services to both regulated and unregulated utilities, particularly for nuclear and fossil fuel generation projects. It also provides services in air quality control installations.

 

By Jeff Reeves

Back in 2006, after posting a staggering $12.6 billion loss, Ford Motor Co. (F) knew it was in trouble. Deep trouble.

So the company crafted an ambitious turnaround plan. It closed more than a dozen plants, suspended its dividend and killed the storied Mercury name. Ford even took the drastic step of putting its entire brand up as collateral to restructure the company -- offering up trademarks like its iconic blue oval and the Mustang name to win over bankers.

It was quite a gambit, but it paid off. Because not only did Ford remain the only Detroit automaker to avoid bankruptcy in the wake of the financial crisis, but the automotive powerhouse is now trading above 2006 valuations.

 

By Dan Burrows

Facebook (FB) and lead underwriter Morgan Stanley (MS) should've checked the calendar. It ain't 1999.

Lost amid the recriminations and finger-pointing over Facebook's faceplant of an IPO is that it was simply the wrong stock at the wrong time. Flooding the market with a near-record issue of shares at an epic valuation when everyone is trading risk-off? What were they thinking?

 

With growth slowing in a saturated wireless market, the incumbents are looking at ways to consolidate and grow through acquisitions. While none of the carriers has so far gone public with any such plan, the rumor mill has been at work ever since AT&T (T) called off its T-Mobile acquisition.

In the latest speculation, we have a Reuters report claiming that AT&T and Leap Wireless (LEAP) have held merger talks in the past few months. This comes on the back of a Bloomberg article that linked T-Mobile and MetroPCS (PCS) in another acquisition rumor early last week.  

After their first three days of trading, Facebook (FB) shares sank some 18% from their initial price offering of $38, closing Tuesday at $31. Since the IPO, the focus has shifted to the troubles with the Nasdaq's trading system as well as questionable actions by the underwriters, such as lowering estimates without telling the public. Facebook is certainly a stock to watch in the days ahead. It is unclear whether or not the social platform shares will surge back. Facebook shares are up 2% at $31.63 in pre-market trading.

 

Moody's Investors Service is satisfied with the progress of Ford Motor Company (F) and has accordingly upgraded its credit rating to investment grade Tuesday. At a time when Ford is experiencing praise from several research firms such as Fitch ratings, which upgraded the automaker last week, it has become clear that Ford's restructuring efforts have paid off. The company recently reported wholesale shipments that were 50% above the estimated breakeven point in North America. Ford closed Tuesday at $10.19.

 

This Facebook (FB) fiasco is a disgrace.

 

The idea that big clients were getting the skinny that estimates were too high, something that would justify immediately cancelling orders or dumping stock into the public frenzy, is just plain outrageous. Anyone who made such a call knew that was selective disclosure, a clear violation of SEC rules. Anyone who acted on it has to be subpoenaed immediately by the SEC to find out what happened. The repercussions should and must be severe, as such a number cut on the eve of the deal is something everyone had to know -- not just the big boys.

 

 

The controversies around Facebook's (FB) botched IPO just keep coming.

Now, word is emerging that Wall Street was getting warnings about Facebook's prospects in the lead-up to the IPO -- warnings that retail investors were clueless about. If regular mom-and-pop investors had heard about those warnings, maybe they wouldn't have jumped into the shares.

It's an extraordinary story, if true, and could heap further damage on an already disastrous IPO. 

Amazon (AMZN) is the leader in the cloud-computing space, thanks to the immense popularity of Amazon Web Services. The cloud-based infrastructure platform enables developers to create scalable Web-based software powered by the company's massive infrastructure.

Amazon competes primarily with Microsoft's (MSFT) Azure, Google's (GOOG) App Engine, Salesforce.com (CRM) offerings such as Heroku and Force.com, and Rackspace.