This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Market Preview: Bulls on Break

UBS was one of Wendy's few bulls until Friday, when it downgraded the stock to neutral from buy and dropped its price target to $5.50 from $6.30. The firm also cut its earnings estimate for fiscal 2012 to 23 cents a share from 30 cents a share, citing slowing sales momentum from the rollout of the company's W burger and higher beef costs. UBS thinks Wendy's may have introduced its next new burger offering a bit too soon.

"We believe that Wendy's Dave's Hot n Juicy burgers had the advertising to drive trial and the quality to warrant repeat purchase," the firm said. "However, we wonder if the introduction of the W so soon after the Hot n Juicy seems to have created confusion and trade down. While we had hoped that the W might cause trade up from the $0.99 menu, it appears to be cannibalizing premium burgers."

Still, UBS is bullish on Brolick taking over as CEO, saying his leadership bodes well for the long term.

"We believe that new CEO Emil Brolick will ultimately steer Wendy's to success, and we look forward to hearing about his vision and plans at the analyst day on Monday," the firm said. "We expect to hear about premium innovation and reimaging testing."

Check out TheStreet's quote page for Wendy's International for year-to-date share performance, analyst ratings, earnings estimates and much more.

Early reports are also due from Banco Santander (STD), Canon (CAJ), Gannett (GCI), Ryanair Holdings (RYAAY), Thomas & Betts (TNB), and Wolverine World Wide (WWW).

The late roster features Actuate (BIRT), Baidu.com (BIDU), Integrated Device Technology (IDTI), McKesson (MCK), and Rent-A-Center (RCII).

Monday's economic calendar is pretty light with just personal income and spending for December at 8:30 a.m. ET. The consensus is for a 0.4% increase in personal income and a 0.1% rise in personal spending, according to Briefing.com. Credit Suisse is in line with the consensus on income but thinks spending could be a bit soft.

"We expect nominal consumer spending to be flat, with an expected rise in service spending offset by declines in control group retail sales, auto sales, and gas prices," the firm said. "Inflation should be flat on the month, so real spending should also be unchanged."

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,970.60 -11.99 -0.07%
S&P 500 1,977.08 -1.83 -0.09%
NASDAQ 4,455.4080 +10.4990 0.24%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs