Dec 29, 2009

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

MoneyGram Partners In Serbia

Posted: 29 Dec 2009 09:00 AM PST

Expanding its presence in Serbia, on Monday, MoneyGram International Inc. (MGI) announced its partnership with Alpha Bank Srbija A.D. to enhance its money transfer service business by adding more than 165 locations in Serbia. This alliance will double the existing locations in Serbia that the company initiated in 2008.
 
The money transfer business remains the driving force for MoneyGram, and going forward management projects a strong remittance market in Serbia. Hence, the company is … [visit site to read more]


Duke Energy Settles With EPA

Posted: 29 Dec 2009 03:45 AM PST

Duke Energy Corporation (DUK) has reached a settlement with the U.S. Environmental Protection Agency, and the U.S. Department of Justice on a lawsuit pertaining to a clean air violation at Duke Energy's coal-fired power Gallagher plant in southern Indiana. 

Duke Energy will spend about $93 million to settle clean air violations at the plant. Also, as part of the settlement, the company will continue to operate the 560 megawatts (MW) Gallagher facility. Duke Energy plans to … [visit site to read more]

DPL Reduces Debt Load

Posted: 29 Dec 2009 03:30 AM PST

DPL Inc. (DPL) purchased $52.4 million principal amount of 8.125% DPL Capital Trust II Capital Securities in a privately negotiated transaction. DPL paid $56.1 million or 7% premium for the buyback. 

This transaction will result in annual interest cost savings of approximately $4.2 million for DPL. The remaining principal balance on the Capital Securities of approximately $142.6 million is scheduled to mature on Sep 1, 2031. 

DPL had a strong balance sheet among its peers with a … [visit site to read more]

Affiliated Extends IT Contract

Posted: 29 Dec 2009 03:15 AM PST

Affiliated Computer Services, Inc. (ACS) announced an extension of a three-year information technology (IT) contract through 2015 with DCP Midstream, a Denver-based energy company. The contract is worth $72 million. 

Based in Dallas, ACS delivers comprehensive business process outsourcing (BPO) and IT outsourcing solutions as well as system integration services globally to commercial and government clients. 

ACS will provide DCP with customized IT solutions such as end user and … [visit site to read more]

12b-1 Fees And ETFs – What Do They Mean For You?

Posted: 29 Dec 2009 08:01 AM PST

Hidden fees!? In the corner of the exchange traded fund (ETF) world, some people are whispering about the clauses that a few fund providers put in their prospectus that would let the providers charge a 12b-1 fee. But wait…what is a 12b-1 fee?

12b-1 fees are a way for fund companies to pass on the costs of marketing, record-keeping and commissions to the investor, writes Scott Burns for Seeking Alpha. The fees are capped at 0.25%, and the investor could keep on paying the fee as long … [visit site to read more]

IBM Signs Contract With Indian Bank

Posted: 29 Dec 2009 08:00 AM PST

International Business Machines Corp. (IBM) announced the signing of a 10-year information technology (IT) services agreement with Sardar Bhiladwala Pardi People’s Co-operative Bank Ltd. (SBPPCB), a leading co-operative bank in Gujarat, India. 

Under the agreement, IBM will provide Managed Continuity Services for server management, network and security management, backup and database management. 

The bank chose IBM for its enhanced Core Banking solution to manage its IT … [visit site to read more]

Cell Therapeutics Guards Itself

Posted: 29 Dec 2009 02:45 AM PST

In an attempt to guard itself against hostile takeover, Cell Therapeutics (CTIC) adopted a shareholder rights plan. The plan, to be effective from Jan 7, 2010, has been designed so that a potential buyer has to discuss any offer with Cell Therapeutics’ board of directors before approaching the shareholders directly. Cell Therapeutics will give out options that would enable its shareholders to buy a fraction of a share of preferred stock in case of an acquisition of more than 20% of the … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: MS, JPM

Posted: 29 Dec 2009 12:37 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: Asian Market Rally Continues

Posted: 29 Dec 2009 12:34 PM PST

The major Asian/Pacific markets picked up where they last left off by closing out their sessions in the green once again. … [visit site to read more]

Toyota Makes Chinese Recall

Posted: 29 Dec 2009 02:31 AM PST

In a near rerun of its U.S. fiasco, the Chinese unit of Toyota Motor (TM) will recall 43,000 vehicles, including models such as Lexus ES350, Lexus RX350, Highlander sports utility vehicle and Previa minivan. The vehicles are reported to have engine oil leaks. The recall, accounting for about 1 percent of Toyota’s projected global annual sales, will begin on Dec 30. 
In late September, Toyota recalled the largest ever U.S. batch of 3.8 million vehicles, triggered by a high-speed crash in … [visit site to read more]

Good News For Lilly

Posted: 29 Dec 2009 02:15 AM PST

Recently, Eli Lilly (LLY) received US Food and Drug Administration (FDA) approval for Zyprexa Relprevv (olanzapine), the new extended release injectable version of its blockbuster drug Zyprexa for the treatment of schizophrenia in adults. The new version carries its own patent and may act as a cushion to Zyprexa's sales when the main patent expires in 2011. However the approval comes with the requirement of patient monitoring by health care professionals for three hours after they get the … [visit site to read more]

Forex Trading: GBPUSD Falls Sharply. Tests 1.5900

Posted: 29 Dec 2009 07:10 AM PST

The GBPUSD is falling sharply, picking up momentum on the break of the weeks low at 1.5931 and the low from Dec 22nd at the 1.5920 level.   Now a move back up toward the 1.5931 level should find sellers as the spike lower has caught the buyers off … [visit site to read more]

Forex Trading: AUDUSD Moves Toward Support At 0.8962

Posted: 29 Dec 2009 02:04 AM PST

The AUDUSD peaked at our upside resistance level at 0.8990 (see prior post). The price is now back down testing the 100 bar MA on the 5 minute chart. Look for support against this level at the 0.8962 level.  A break below targets the 0.8939 level.  Look for profit taking buyers against the support level … [visit site to read more]

Stock Market Momentum Is Slowing

Posted: 29 Dec 2009 07:01 AM PST

This Weekly chart of the S&P500 SPX  shows slowing momentum, most of the indicators on a weekly basis are showing either overbought, but they have been for quite a while.  Indicators all suggest that the market could be ready to correct, but IMO, it won’t correct until we have some type of “news” event, that creates a sharp down move and provides a “rationale change”.  The market is overbought and everyone knows it.  Everyone is waiting for a sell-off to begin, and they want … [visit site to read more]

JPMorgan Sues Former Executive

Posted: 29 Dec 2009 07:00 AM PST

JPMorgan Chase & Company (JPM) said on Monday that it has sued a former banking executive who was arrested on criminal charges last year in Argentina. The executive was accused of stealing $2.8 million from a customer's account. JPMorgan fired the executive on May 30, 2008, and reimbursed its customer.
JPMorgan, the second-largest U.S. bank, filed its civil lawsuit on Monday against the former vice president Hernan Arbizu after his arrest in Jul 2008. JPMorgan accused Arbizu for … [visit site to read more]

Forex Trading: USDJPY Inches Up To Test The 91.86 Resistance Ceiling

Posted: 29 Dec 2009 01:54 AM PST

The USDJPY has been in a narrow range and is testing upside resistance at the 91.86 level.  A break should solicit additional buying interest with the next target coming in at the 92.32 level. 
Look for momentum on the break as the price has been non-trending in a narrow range predominantly between 91.42 and 91.86.  There was a 8 hour move below the floor area on December 24th, but the price moved back into the consolidated range. 
The stop on a failed break come in … [visit site to read more]

Forex Trading: GBPUSD Breaks Lower. Third Time A Charm For The Pair.

Posted: 29 Dec 2009 01:47 AM PST

The GBPUSD tested the 100 hour MA twice this NY morning. The 3rd test of the key MA was the charm and led to a  break at 1.5977.  Look for sellers against the level now (stop at 1.5987), with the next target coming in at the low for the week at 1.5931 and the low from Dec 22 at the 1.5920 … [visit site to read more]

RBS Selling Non-Core Assets

Posted: 29 Dec 2009 01:45 AM PST

Pursuant to the European Commission (EC) approval of its restructuring plan, the Royal Bank of Scotland (RBS), is selling its non-core businesses in select markets to shore up its financial standing. 

As part of the restructuring plan, Royal Bank intends to sell its 51% stake in commodities trading firm RBS-Sempra, which it jointly owns with Sempra Energy (SRE). The deal is expected to fetch about £2.5 billion. Macquarie has been named along with JPMorgan Chase & Co. (JPM) and … [visit site to read more]

AIG To Pay Severance To Counsel

Posted: 29 Dec 2009 01:29 AM PST

American International Group Inc. (AIG) intends to pay millions toward severance to its departing general counsel Anastasia Kelly. Kelly recently resigned due to federal pay restraints on her compensation.
Kelly was among the five executives who notified on Dec 1, 2009, that they would resign and collect severance benefits if their pay was cut significantly by the U.S. pay czar. The other four executives withdrew their notices later.
The pay czar is in charge of deciding compensation packages … [visit site to read more]

Forex Trading: US Dollar Weakens On European Open

Posted: 29 Dec 2009 06:17 AM PST

European equity indices have opened higher today, following on the momentum from the Asian session and shaking off some of the holiday staleness in the markets. The USD is somewhat lower with the DXY at 77.40; but there seems to be very little news behind the sell-off at the start of the London open, and instead it seems to be a very flow-driven market in thin liquidity. The major news release of the day so far has been the Swedish Retail Sales which came in dramatically lower than expectations … [visit site to read more]

UAL Applies For Antitrust Immunity

Posted: 29 Dec 2009 01:16 AM PST

United Airlines, a unit of UAL Corporation (UAUA), announced last week that it would soon file an antitrust immunity application for a trans-Pacific joint venture with All Nippon Airways Co. and Continental Airlines Inc. (CAL). The joint venture would strengthen United Airline’s Pacific network and increase seats and cargo capacity.
The antitrust approval, which could take six months from the Department of Transportation (DoT), would enable the three airlines to engage in deeper and more … [visit site to read more]

Stocks To Watch On Tuesday 29 December

Posted: 29 Dec 2009 06:07 AM PST

( click to enlarge )

Ocean Freight (OCNF) is bouncing off lows that were set last week and could be ready to move much higher. Resistance is $1.01, which reflects Monday’s high of the day. Looking at the daily chart, I see a bullish divergence signal as the stock makes lower lows in price, while stochastics climb out of oversold conditions with higher lows. I will watch the stock closely on Tuesday as this stock will move quickly and I want to keep it on our screen throughout the … [visit site to read more]

Morgan To Revamp Bonuses

Posted: 29 Dec 2009 06:00 AM PST

Working on its strategy to defer the major part of bonus payment to longer term, Morgan Stanley (MS) on Monday announced its plans to revamp its bonus payout structure for the company's top executives. The company charted out a compensation plan according to which the top 30 executives would be offered one quarter of their 2009 pay in cash. The rest will be converted to stock currently to defer payment to a future date. However, a final decision is expected as soon as next … [visit site to read more]

Stock Market News Briefs: Cosan Limited, Fairchild Semiconductor International, Inc., General Motors Corporation, J P Morgan Chase & Co, Piper Jaffray Companies, Apple Inc., Imax Corporation, STEC, Inc.

Posted: 29 Dec 2009 12:57 AM PST

 STEC (STEC) shares moved higher for the tenth session, gaining on takeover speculation. Moreover, Broadpoint AmTech posted a “buy” rating on the shares with a $23 priced target.

 Apple (AAPL) shares remained on an upward path, up 1.2% on Monday, as rumors circulated regarding the timing of its “iSlate” product launch, with several analysts believing introduction likely by first quarter’s end.

 JP Morgan (JPM) upgraded Cosan (CZZ) to “overweight” with a $10 … [visit site to read more]

Forex Trading: AUDUSD Tests Fibonacci Resistance At 0.8990

Posted: 29 Dec 2009 12:24 AM PST

The AUDUSD moved sharply higher today after breaking back above the 100 day moving average earlier.  The price is now testing the 38.2% retracement level of the corrective move lower from the November high price of 0.9405 to the low last week at the 0.8733 level. That level comes in at 0.8990.  The price is currently at this key level. 

Look for profit taking sellers against the level. However, a move above will likely lead to a quick cover.  
Below look for  … [visit site to read more]

Forex Trading: EURUSD Trends Higher Today. Support Comes In At 1.4413/18.

Posted: 28 Dec 2009 11:35 PM PST

The EURUSD has come off the high for the day at the 1.4458 in early NY trade. The support comes in at the 1.4413/18 level this morning.  The 38.2% retracement of the days range, the 100 bar MA on the 5 minute chart and the low correction floor come in at that area.  A break would be a disappointment for the days bulls who have seen the pair trend higher today after breaking above the 100 and 200 bar MAs on the 5 minute chart in early London … [visit site to read more]

Forex Trading: USDJPY Continues To Coil In A Narrow Range. Is A Move Coming?

Posted: 28 Dec 2009 11:10 PM PST

The USDJPY is continuing to coil and consolidate.  The non-trending nature of the market action tends to transition to a trend like move.  As a result, we are on alert for a break out. 
On the topside, the 91.76/86 area has been a ceiling over the last 5 trading days.  Back in July the low reached 91.72 (see daily chart below). The market is using the area as a level to pause the move higher which has seen the price move from a low of 84.80 on November 27th to the high of … [visit site to read more]

Forex Trading: GBPUSDs Rise And Fall. What Lies Ahead For The Pound Today?

Posted: 28 Dec 2009 10:42 PM PST

The GBPUSD moved above the 200 day MA at the 1.6040 level today, reached a high of 1.6067 and reversed.  There was a report that JP Morgan was scraping a plan to build a new European headquarter in London citing the unfairness of the 50% tax on bonuses above 25,000 pounds.  London's economy is largely driven by the financial district.   The fleeing not only by large banks like JP Morgan but also hedge fund managers to more favorable tax havens is a real … [visit site to read more]

Traders Still On A Sugar Rush!

Posted: 29 Dec 2009 01:44 AM PST

Fundamentals
Sugar futures have been one of the best performing markets of 2009, as prices have more than doubled since the start of the year. It has been nearly 30 years since world Sugar prices have been this high, with the most active March contract trading above the 27 cents per pound level as of this writing. Tight cash market supplies have been the driving force behind the price surge, as the market has been in a deficit situation for the past two years. Delays in the harvest out of … [visit site to read more]

Stock Buy: T. Rowe Price Group

Posted: 28 Dec 2009 04:00 PM PST

T. Rowe Price Group, Inc. (TROW) continues to outperform the market on strong fundamentals that include a return on equity (ROE) of 12.7% and a net profit margin of 17.5%.
Company Description
T. Rowe Price Group, Inc. is a global investment management organization that provides a broad array of mutual funds, subadvisory services and separate account management for individual and institutional investors, retirement plans and financial intermediaries.
The company offers a variety of … [visit site to read more]
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