Zacks Analyst Blog Highlights: Hewlett-Packard and Huaneng Power.

CHICAGO -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Hewlett-Packard (NYSE: HPQ) and Huaneng Power

See the latest posts to the Analyst Blog by visiting: http://at.zacks.com/?id=2673

Here are highlights from Friday's Analyst Blog:

Rebound and Rate Cut

Given that yesterday was a day of remembrance for Elvis Presley, it was somewhat fitting that stocks swung like the King's hips.

The late-afternoon rebound occurred when the S&P 500 fell to the lows it established in March following the problems in China. In technical terms, this is known as a "bounce off of support levels". Several trading firms likely had the support level preset as a target to come in test the waters - and it worked better than a pair of blue suede shoes.

The question is what happens today? Asia seemed unimpressed with the rebound as both the Nikkei and the Hang Seng posted material drops overnight. Hewlett-Packard (NYSE: HPQ), however, posted good earnings. Most importantly, the Fed lowered the discount rate by one-half percent. The move by the Fed is designed to give banks confidence that they will continue to have access to capital and thereby encouraging lending. This was a surprise move by the Fed and represents an about face for a group that has been hawkish on inflation. Whether the cut will work remains to be seen, but a fed funds rate cut at the September meeting now seems likely.

Huaneng a Chinese "Power" Play

Huaneng Power's (NYSE: HNP) interim results exceeded market consensus. There are still concerns about utilization rates, variable fuel and transportation costs, future tariff rates and exchange rates. Even so, the following points should keep HNP viable: the growing demand for power in China, and the company's unique relationship with the Huaneng Group and China's government.

The company should remain competitive in the production of power in China, which, in turn, should lead to a higher valuation. Therefore, we are maintaining our Buy recommendation on the stock.

See the latest posts to the Analyst Blog by visiting http://at.zacks.com/?id=2645.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=2674.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.