Dec 25, 2009

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions


Vix At Its Lowest In Over A Year

Posted: 24 Dec 2009 10:01 PM PST

1) As we approach the end of the decade, we take stock of The Daily Reckoning’s beloved “Trade of the Decade.” You know it by heart, right? “Buy gold on dips, sell stocks on rallies.” Bloomberg News has tallied up and reported the satisfying results…

“A $100 investment in gold would now be more than $380,” Bloomberg calculates, “while the same sum in commodities would have grown to about $357, according to the Standard & Poor’s GSCI Enhanced Total Return Index.”

How will this … [visit site to read more]


America Abuses Its “Exorbitant Privilege”

Posted: 24 Dec 2009 09:01 PM PST

Exactly one month ago, The New York Times ran a front-page headline, “Wave of Debt Payments Facing US Government,” and punctuated the point of the accompanying story with the chart below:

The following day, we tipped our hat to the Grey Lady and re-produced the chart for the benefit of all Daily Reckoning readers who do not also read The New York Times. We also highlighted some of the disturbing New Math that this chart implied. Specifically, we reported, “The government will have to … [visit site to read more]


US November Durable Goods Exceed Annual GDP Of Chile

Posted: 24 Dec 2009 08:22 PM PST

CENSUS BUREAU - Shipments of manufactured durable goods in November, up three consecutive months, increased $0.5 billion or 0.3 percent to $175.9 billion.
For the entire year of 2008, the entire output (GDP) of these countries was:

Singapore: $181.9 billion

Ukraine: $179.6 billion

Chile: $169.5 billion

Philippines: $166.9 billion

Pakistan: $164.5 billion

Bottom Line: In just the single month of November (a month following a severe recession and with durable goods about … [visit site to read more]


The Holiday Season Is Good For Oil Stocks

Posted: 24 Dec 2009 05:01 PM PST

If 2010 follows the pattern of the past 15 years, we are approaching the start of a seasonal climb in the price of crude oil that could present a good investment opportunity in energy-related stocks.

Oil is down from its 2009 peak of $81 per barrel seen in October, but we remain constructive on energy stocks given the improving economy and positive seasonal factors heading into the New Year.

As the 15-year chart above illustrates, much of the recent drop in the price of oil lately … [visit site to read more]


Cash In On China’s Winning Streak Through SmartHeat’s Success

Posted: 24 Dec 2009 04:05 PM PST

Clean technology… Energy saving opportunities… A $12 billion, worldwide industry…

That’s what SmartHeat (HEAT) has to offer through its energy efficient, heat exchanger solutions to industrial, residential and commercial markets.

By aggressively expanding its Plate Heat Exchanger (PHE) market and rapidly growing its heat meter sector, the company has attracted such illustrious customers as Motorola Inc. (MOT) and The Coca-Cola Company (KO).

But while that kind of … [visit site to read more]


Detroit Houses For Less Than $100, Starting At $10

Posted: 24 Dec 2009 04:05 PM PST

Price = $10 (2 bedrooms, 1 bath)

Price = $15 (3 bedrooms, 2 baths)

Price = $75 (3 bedrooms, 1 bath)

Price = $99 (3 bedrooms, 1 … [visit site to read more]


Bernanke’s Betting The House On His War On Recession

Posted: 24 Dec 2009 11:01 AM PST

The vast majority of economists now say that the recession is over. Many expect nominal GDP growth as high as four percent in 2010. Now, with the economy assumed to be back on stable footing, some in the private sector are starting to talk about inflation.

While agreeing that growth has returned, the Federal Reserve and the Obama administration do not see inflation as a threat. To them, the political costs of ongoing recession far outweigh any medium-term considerations about the value of … [visit site to read more]


Video: Ford Hopes Sales Will Fly To The Sky With WiFi

Posted: 24 Dec 2009 03:43 PM PST

The Ford Motor Company announced this week that specific upcoming models of its vehicles will be equipped with WiFi access that will utilize the use of a personal modem via usb port in the vehicle. … [visit site to read more]


Video: NYSE Closing Bell Market Monitor: C, CHK

Posted: 24 Dec 2009 03:39 PM PST

The latest in news, commentary, and information on what’s moving the US equities markets. Watch this broadcast LIVE at 4:00 pm EST daily @ “http://www.nyx.com/marketmonitor” … [visit site to read more]


Video: Oil Prices Rise Just Before The Holidays

Posted: 24 Dec 2009 03:28 PM PST

Front month crude prices rose during the abbreviated Christmas Eve trading session as the US dollar continued to weaken. … [visit site to read more]


Video: Dollar Slides On Fed Speculation

Posted: 24 Dec 2009 03:28 PM PST

Growing speculation that the Federal Reserve will keep its current measures in tact asthe economy recovers paved the way for investors to shy away from the greenback this session. … [visit site to read more]


Retail ETFs: A Lump Of Coal Or A Nice Surprise?

Posted: 24 Dec 2009 10:01 AM PST

Despite a massive snowstorm that brought the East coast to a halt last week, many retailers are showing improved year-over-year results and the holiday shopping season is not quite wrapped up. Exchange traded funds (ETFs) are feeling the love.

This season has already shown stronger shopping results, with e-commerce, electronics and jewelry all posting gains, according to MasterCard Advisors in its SpendingPulse report. According to Dow Jones Newswires, the results highlight … [visit site to read more]


Swiss Franc: Bullish Bias Above 102

Posted: 24 Dec 2009 09:10 AM PST

Update on supports and resistances. … [visit site to read more]


Australian Dollar: Continuation Of The Rebound

Posted: 24 Dec 2009 09:10 AM PST

Update on supports and resistances. … [visit site to read more]


Japanese Yen: Up Turn

Posted: 24 Dec 2009 09:10 AM PST

Update on supports and resistances. … [visit site to read more]


British Pound: Continuation Of The Rebound

Posted: 24 Dec 2009 09:10 AM PST

Update on supports and resistances. … [visit site to read more]


Euro: The Upside Prevails

Posted: 24 Dec 2009 09:10 AM PST

Update on supports and resistances. … [visit site to read more]


‘Overvalued, Check. Overbought, Check. Overbullish, Check….’

Posted: 24 Dec 2009 09:01 AM PST

I’ve written a fair number of posts highlighting the disconnect between Wall Street and Main Street (far more than I can remember, in fact). But even if you ignore what is happening in the real economy (you know, like Wall Street usually does), share prices are out of whack — with their own history. In “Clarity and Valuation,” John P. Hussman, President of Hussman Investment Trust, discusses that very issue in this week’s edition of Hussman Funds’ Weekly Market Comment:
Last week, the … [visit site to read more]


Why Russia ETF May Extend Gains Into 2010

Posted: 24 Dec 2009 08:01 AM PST

Russia’s economy got a nod from Standard & Poor’s when its rating service upgraded the country from negative to stable. What it means for the country’s exchange traded fund (ETF) could be determined in the next year.

The Russian financial system may still need two things to improve its budget and balance sheet: less dependency on oil prices and capital injections, reports Tess Stynes for The Wall Street Journal.

S&P said they still might downgrade Russia if its government fails … [visit site to read more]


Video: Chevron Agrees To Pay For Underpaid Royalties

Posted: 24 Dec 2009 12:35 PM PST

The Chevron Corporation (CVX) announced Thursday that it will pay $45.5 million ino rder to resolve claims that it underpaid natural gas royalties. … [visit site to read more]


Video: NYSE Opening Bell Market Monitor: CVX, C

Posted: 24 Dec 2009 12:27 PM PST

The latest in news, commentary, and information on what’s moving the US equities markets. Watch this broadcast LIVE at 9:30 am EST daily @ “http://www.nyx.com/marketmonitor” … [visit site to read more]


Video: Positive Results Throughout Asia

Posted: 24 Dec 2009 12:21 PM PST

The major Asian/Pacific markets were all on the upside this session following another rise in domestic shares and commodity-related stocks. … [visit site to read more]


Cartoon: Xmas List - Change You Can Believe In

Posted: 24 Dec 2009 07:01 AM PST

Source: Nate Beeler, Comics.com, December 22, … [visit site to read more]


Sara Lee - Momentum Stock Buy

Posted: 24 Dec 2009 06:29 AM PST

Sara Lee Corp. (SLE) gapped open on its strong Q1 results from early November on lower costs and strong North American sales, driving shares to a new 52-weke high above $12.
Company Description
Sara Lee develops and manufactures a wide range of branded packaged food products under brands like Sara Lee, Ball Park and Jimmy Dean worldwide. The company was founded in 1939 and has a market cap of $8.61 billion.
Shares of SLE have posted big gains this year, rallying with the market after … [visit site to read more]


Del Monte Foods Company - Value Stock Buy

Posted: 24 Dec 2009 06:28 AM PST

Del Monte Foods Company (DLM) has surprised on estimates 4 quarters in a row by an average of 260.60%. DLM is trading with a forward P/E of 11.
Company Description
Del Monte Foods distributes food and pet products in the United States and South America. It owns many well-known brands such as Del Monte, Contadina, Meow Mix, Kibbles ‘n Bits, 9Lives and Milk-Bone.
The company is not affiliated with Fresh Del Monte, the fruit and vegetable provider.
Del Monte Posted Another Big Beat in … [visit site to read more]


Stock Market News: Google, Apple, Pfizer, Sanofi-Aventis

Posted: 24 Dec 2009 06:11 AM PST

Pfizer (PFE) Lyrica anti-anxiety drug was rejected by the FDA as data showed the drug was insufficient for treatment of anxiety disorder
The FDA approved a new Sanofi-Aventis (SNY) high-dose, flu vaccine for individuals aged more than 65 years
The Senate passed the healthcare package this morning by a vote of 60 to 39
According to a news report, Apple (AAPL) has rented San Francisco space for late January in advance of a major product announcement, with its new tablet … [visit site to read more]


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