Investors Wary Ahead of Fed Meeting; ACCO Brands and Mercury General Surge on Earnings

Stocks fluctuated on Monday morning as investors try to digest Friday's sharp -280 point Dow selloff as well as gauge the Fed meeting tomorrow afternoon.  The Fed is expected to keep rates steady at 5.25%, so the markets will be watching closely for the Fed's policy statement concerning inflation and the credit markets.

Among the premarket movers this morning are a number of stocks with attractive PowerRatings (for Investors). A PowerRating of 10 is highest, and our data from 1995 through 2006 show that stocks with high PowerRatings have historically outperformed over the next twelve months. Below are the price movement in premarket trading. The theme this morning for all three stocks was strong earnings and weak guidance. All three stocks are trading lower in premarket activity. But since these stocks all have attractive PowerRatings, this morning's weakness could be a short-term pullback that signals a buying opportunity.

• ACCO Brands Corp. (ABD@ABD | Quote | Chart | News | PowerRating) is up 8.4% on Monday morning to $22.49. This branded office product manufacturer announced second quarter net income of $4.5 million, or $0.08 per share, compared to a loss of $9.8 million, or $0.18 per share in the prior-year quarter. Adjusted net income for the quarter was $11.7 million, or $0.21 per share, up from $3.3 million or $0.06 per share in the previous-year quarter.
  
  On average, 6 analysts polled by First Call/Thomson Financial expected earnings of $0.14 per share.

  ABD has a high PowerRating of 8 and a market cap of $1.2 billion.
   

• Triumph Group Inc. (TGI@TGI | Quote | Chart | News | PowerRating) is up 5.4% on Monday to $483.49 and has the highest PowerRating of 10.

  Triumph Group reported first quarter income from continuing operations of $1.04 per share after the bell Wednesday, compared to the consensus estimate of $0.83 last week. The stock is seeing continuing momentum after last week's earnings report.

  TGI's market cap is $1.4 billion and its shares are up 58% year-to-date.
   

• Mercury General Corp. (MCY@MCY | Quote | Chart | News | PowerRating) shares rose 5.2% to $53.22 on Monday morning. Mercury General Corp. announced a surge in second quarter net income to $69.5 million from $37.8 million in the prior year. Earnings per share for the quarter rose to $1.27 from $0.69 last year. The recent quarter results includes net realized investment gains, net of tax, of $6.5 million or $0.12 per share compared with net realized investment gains, net of tax, of $2.8 million or $0.05 per share last year.
  
  On average, six analysts polled by First Call/Thomson Financial expected the company to earn $1.08 per share.
  
  Quarterly net premiums written declined 2.2% to $737.394 million from $753.826 million recorded in the previous year. Net premiums earned increased to $754.076 million from $753.350 million in the year ago quarter. Net investment income climbed to $35.0 million from the last year.
  
  Further, the company declared third quarter dividend of $.52 per share to shareholders of record September 14, 2007, payable on September 27, 2007.
  
  MCY has a high PowerRating of 8 and has a market cap of $2.9 billion.