Jan 8, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

Gold Stocks And The Stock Market Forecast For 2010

Posted: 08 Jan 2010 12:01 AM PST

I wrote a post here for ATP called “The bull case is not dead yet”. This ended up as an article on 321Gold.com, which you can review here: Bull Not Dead Article- Banister. I stuck my neck out, which I love to do once in awhile when the contrarian mood strikes me. I wrote a Feb 25th article this year going very bullish on the markets when everyone was bearish. I wrote an article in early August going very bullish gold and gold stocks, when they were not in bull mode. Obviously, if you stick your … [visit site to read more]


Fed, Under Tim Geithner, Pressured AIG To Keep Quiet On “Back Door Bailouts”

Posted: 07 Jan 2010 11:01 PM PST

The Federal Reserve Bank of New York, while headed by current Treasury Secretary Timothy Geithner, pressured American International Group Inc. (AIG) to withhold information about payments it made to banks during the peak of the financial crisis, according to a report by Bloomberg News yesterday (Thursday).

A series of emails between the Federal bank and AIG lawyers show that the insurer was told to delete details from public disclosures about payments it made on credit default swaps to … [visit site to read more]

US M2 Growth Falls Below 3%, Lowest Rate Since 1995

Posted: 07 Jan 2010 10:01 PM PST

M2 growth (data here) fell to 2.7% (on an annual basis) in the week ending December 21, 2009, the first time since the summer of 1995 that annual M2 growth was below 3%, and the lowest growth rate since a 2.4% reading in late July 1995 (see chart above).

The growth rate of the monetary base (data here) has also been falling, and is now below 20% for the first time since early October 2008 (see graph below):

MP: For those worried about inflation, I think you better tell the … [visit site to read more]

Rise In US Steel Stock Prices Could Mean Economic Growth Ahead

Posted: 07 Jan 2010 09:01 PM PST

I found the daily chart of US Steel (X) very interesting, in that it showed a good example of a Head and Shoulders which triggered a tradeable move into support, and then we’ve had a non-stop rally to fresh recovery highs - that’s bullish for stocks in general.  If steel demand is a leading indicator for economic growth, then this is certainly a move to watch.

Let’s take a look.

Let’s start with the Head and Shoulders pattern that formed from August until October, with the … [visit site to read more]

Who Is Willing To Stand Up For The Disenfranchised Auction-Rate Securities Investors?

Posted: 07 Jan 2010 08:01 PM PST

A friend of Sense on Cents informed me the other day that Tom James, chairman and chief executive of Raymond James, issued an apology to the firm’s clients involved in the auction-rate securities fiasco. Wow! Given my keen interest in this topic and my empathy for the investors who have been abused by the industry, my heart raced. An apology by the head of a firm the size and scope of Raymond James is deeply meaningful.

Upon review of the article, Tom James Apologizes for Auction Rate … [visit site to read more]

Get Agriculture Exposure With This ETF

Posted: 07 Jan 2010 07:01 PM PST

A conservative and long-term approach to investing in agriculture stocks through an exchange traded fund (ETF) is possible with Market Vectors Agribusiness (MOO).

MOO has rallied 86% since its March lows, says Kevin Cook for ONN tv. MOO is an interesting way to play commodity shares because it does not use futures contracts or commodity swaps to invest.

The latest crackdown on the regulation for commodity-focused ETFs that invest in futures contracts is another reason investors who … [visit site to read more]

Video: The Day Ahead: U.S. Employment Report

Posted: 08 Jan 2010 12:00 AM PST

The stories, data, and stocks that may have the greatest impact during the next trading session. … [visit site to read more]

Fully Played Out?

Posted: 07 Jan 2010 06:46 PM PST

Few would argue with the notion that many aspects of life have pendulum-like properties. Markets and social moods, for example, might swing for a while in one direction, but more often than not, they eventually head back the other way.
The mistake that people make, however — and I am occasionally guilty of this as well — is to assume that they know just when the transition point will be or has been reached, maybe because they’ve studied past patterns.
While that knowledge would no doubt be … [visit site to read more]

Updates On US Bank Lending

Posted: 07 Jan 2010 06:01 PM PST

The theme for this edition’s top 5 graphs is US lending. I sourced some data from the US Federal Reserve on Aggregate lending by US commercial banks over the last 30-odd years, the data is seasonally adjusted, and is originally on a weekly basis. It is useful to look at this information to see how loan growth has unfolded over time; has it changed in composition? has it changed in patterns? how has it tracked recently?

It is particularly interesting to look at this information now for … [visit site to read more]

Singapore Stock Market: Our Focus For Today Is On Property, Oil & Gas, Technology And Commodity Sector

Posted: 07 Jan 2010 05:18 PM PST

Morning Highlights
Our Focus For Today Is On Property, Oil & Gas, Technology and Commodity Sector
Singapore Shares opened higher with the STI up 11.35 points to 2924.60.

Wilmar broke high of 7

Singapore News Updates:

Singapore's official foreign reserves stood at US$ 187.81 billion in December, down from US$188.90 billion in the previous month, said by MAS on Thursday. A year ago, the foreign reserves were US$174.19 billion.

News Updates:

U.S. Initial Jobless Claims edge up 1000 … [visit site to read more]

How Tim Geithner Screwed American Taxpayers

Posted: 07 Jan 2010 05:01 PM PST

Tim Geithner, then head of the New York Fed, blinked and screwed the American taxpayer out of billions of dollars in the process. How so?

Geithner and his cronies in Washington have misrepresented-if not outright lied-about the payments to both domestic and foreign banks in settling exposures to then failing AIG (AIG). While politicians and pundits alike will reference the precarious nature of the time and heat of the moment to defend Geithner and his cronies, the simple fact is the … [visit site to read more]

Forex Traders Anticipating Friendly U.S. Non-Farm Payrolls Report

Posted: 07 Jan 2010 04:29 PM PST

The U.S. Dollar held on to most of its gains as traders await Friday’s U.S. employment report. On Thursday, the Weekly U.S. Initial Claims report showed that fewer workers filed for unemployment benefits last week. This news helped boost an already strong Dollar. The ability to hold on to its gains into the close may be an indication that investors are anticipating a friendly U.S. Non-Farm Payrolls Report Friday. Volume has dropped off noticeably which is a strong indication that the ranges for … [visit site to read more]

How Long Will The Stock Market Rally Last? 12 Months, At Best

Posted: 07 Jan 2010 04:11 PM PST

The charts, the electoral cycle and classic monetary theory all agree: The bulls have 12 months - max!

The endless parties are over, the lights are put away, the tree is already covered in snow out by the woodshed, and the kids are all back in school. Our three-month interval of obsessive, perhaps even feverish, fantasy is finally (blessedly?) over.

Now, I am not one of those people who make a lot of resolutions this time of year. While I am (gladly!) cutting back on rich food and drink … [visit site to read more]

Invesco PowerShares Announces Zero Capital Gains Distributions For 2009 On 116 Of 117 ETFs

Posted: 07 Jan 2010 04:01 PM PST

Invesco PowerShares Capital Management LLC, a leading provider of exchange-traded funds (ETFs), today announced that 116 out of 117 of its ETFs paid zero capital gains distributions for 2009.

Only one PowerShares ETF - the PowerShares NASDAQ-100 BuyWrite Portfolio (PQBW) - realized a small capital gains distribution (see table below), due largely to the unique underlying index methodology, which writes covered calls on the NASDAQ-100 Index. This is the first distribution for any … [visit site to read more]

Should Uncle Sam Bailout California?

Posted: 07 Jan 2010 04:01 PM PST

Should 49 states bail out one? Should the American public be compelled to cover the fiscal disaster of our largest state? Will America ever face reality?

The ticking time bomb that is the fiscal disaster of the state of California is making its way to Washington. As reported in yesterday’s Wall Street Journal, the Governator Arnold Schwarzenegger Seeks U.S. Funds. If Uncle Sam bails out California, then who is next?

Not surprisingly, the general media is not giving this story even … [visit site to read more]

Hewlett-Packard In Good Shape

Posted: 07 Jan 2010 03:30 PM PST

Leading computer maker Hewlett-Packard Company (HPQ) recently introduced a range of environment-friendly desktops, notebooks and displays targeted at business users.
The one that appears to show the most promise is the HP Compaq 8000f Elite Ultra Slim Desktop, which H-P claims to be the first Windows-based desktop PC that does not generate brominated flame retardants (BFRs) and polyvinyl chloride (PVC) from the mouse.
The consistent roll out of quality new products at regular intervals is … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: AA, LEN, GME

Posted: 07 Jan 2010 08:10 PM PST

The latest in news, commentary, and information on what’s moving the US equities markets. … [visit site to read more]

Seagate Grows With Innovation

Posted: 07 Jan 2010 03:09 PM PST

One of the eminent players in the hard drive and storage solutions space, Seagate Technologies (STX), unveiled the BlackArmor PS110 USB 3.0 portable external hard drive performance kit for notebook computers at the consumer electronics show (CES) in Las Vegas.
This all-in-one USB 3.0 toolkit has the ability to generate speeds that are up to three times higher than its USB 2.0 predecessor. The high-speed USB 3.0 takes just four minutes to transfer a 25GB HD movie as compared to 14 minutes … [visit site to read more]

Stocks To Watch On Friday 8 January

Posted: 07 Jan 2010 03:03 PM PST

( click to enlarge )
Tellabs (TLAB) had a strong day, as the stock is closing in on the top of a 2-month resistance level. The way the stock is trading, leads me to believe it's going to make a big move up. The technical chart still showing a bullish bias. KD line shows positive signs as K line is rising on top over D line and RSI continue moving up. I suspect the stock may continue to appreciate over the coming days.

( click to enlarge )
EnteroMedics (ETRM) was very strong … [visit site to read more]

UnitedHealth To Retire Debt

Posted: 07 Jan 2010 09:45 AM PST

Yesterday, UnitedHealth Group (UNH) announced the commencement of its cash tender offer to purchase $200 million of short-term notes and $550 million of intermediate-term notes. The offer will expire on Feb 3, 2010.
The buyback, which will be funded by cash in hand and proceeds from the sale of commercial paper, will be made through a modified Dutch auction. The notes buyback will reduce the company's interest burden, thereby strengthening the balance sheet.
UnitedHealth has been active in … [visit site to read more]

Fred’s Comp Store Sales Improve

Posted: 07 Jan 2010 09:25 AM PST

Fred's Inc. (FRED) reported total sales of $209.3 million for December 2009, up 4% from $201.4 million in December 2008. Comparable store sales for the month increased 1.3%. This was an improvement compared to the comparable store sales growth of 1% reported in the third quarter. The company had posted flat comparable store sales in December 2008.
Fred witnessed increased customer traffic, continued pharmacy department script growth and better clearance of seasonal inventory during the … [visit site to read more]

Daily ETF Roundup: XLF Jumps, UNG Slides

Posted: 07 Jan 2010 02:25 PM PST

The year's hot start continued on Thursday, as impressive results for retail stores and upbeat analyst comments on the financial sector pushed most benchmarks higher. Even the automotive sector is looking up, as GM predicted that it would turn a profit in 2010. Across the world, China inched up a key interest rate, a move that could be a sign of things to come for the global growth engine. 
The ETFdb 60 Index declined 1.52 points, or 0.1%, to close the day at 1,052.31. Thursday's loss … [visit site to read more]

Steel Dynamics Guides Lower

Posted: 07 Jan 2010 02:07 PM PST

Steel Dynamics Inc. (STLD), the nation’s fifth-largest producer of carbon steel products, has recently announced that it expects to earn between 10 cents and 20 cents per share in the fourth quarter of 2009, compared with the Zacks Consensus Estimate which is pegged at 23 cents. A year earlier, the company had reported a loss of 45 cents per share. Steel Dynamics had lost $83 million in the fourth quarter of 2008 as customers ordered less steel and the company had to lower steel … [visit site to read more]

Does The Size Of Your Portfolio Matter?

Posted: 07 Jan 2010 02:01 PM PST

In the natural resource and precious metals sectors there are literally thousands of companies available from which to choose to include in one’s portfolio. There are a lot of great companies and some, well, questionable choices. Screening out favorites might mean subscribing to several investment services and listening to the views of professionals. Then you must decide on how many of these companies in which to actually purchase shares.

All investors whether novice or professionals need to … [visit site to read more]

Business As Unusual

Posted: 07 Jan 2010 02:00 PM PST

It's business as unusual here in Asia; unusual compared to business in the West, that is.
For every spender in the West, there are ten savers in the East. For every Wal-Mart shopper and Snuggie-clad sofa surfer in the US, there exists a team of manufacturers in Viet Nam…and Cambodia…and right here in Taiwan, toiling away to improve their workaday lot. And as the West goes borrowing, the East goes lending…for now, anyway. It's the yin and the yang, if you will.
Markets in this region … [visit site to read more]

Berkshire Finance To Issue Notes

Posted: 07 Jan 2010 08:46 AM PST

Yesterday, Berkshire Hathaway Finance Corporation, a subsidiary of Berkshire Hathaway Inc. (BRK.A, BRK.B) announced the issue of $1.0 billion notes, out of which $750 million will be senior notes due 2040 and $250 million will be floating rate senior notes due 2012.
 
The $750 million senior notes will carry an interest rate of 5.75%, which will be paid semi-annually, with the first payment due on July 16, 2010. Interest on the $250 million of floating rate senior notes is set at 115 basis … [visit site to read more]

Macy’s Lifting Outlook

Posted: 07 Jan 2010 08:30 AM PST

Macy's Inc. (M) reported a 0.7% growth in total sales for the 5-week period ended Jan. 3, 2009. Total sales for the month were $4.43 billion, compared to $4.40 billion posted in the same month last year.
Bolstered by the performance, Macy's lifted its fourth-quarter earnings guidance to a range between $1.14 and $1.18 per share, compared to an earlier prediction of $1.00 to $1.05 per share. The guidance is in line with the Zacks Consensus Estimate of $1.14 per share derived from 14 … [visit site to read more]

Autodesk Settles Lawsuit

Posted: 07 Jan 2010 01:14 PM PST

Autodesk, Inc. (ADSK) announced the settlement of a lawsuit against Dassault Systèmes SolidWorks Corp. (SolidWorks) pending in the U.S. District Court for the Northern District of California. Autodesk had alleged that SolidWorks inappropriately used its trademarks AutoCAD and DWG in 2008.
However, SolidWorks made counterclaims against Autodesk. SolidWorks is a unit of Dassault Systèmes S.A, a 3D design software maker. To resolve the matter, Autodesk and SolidWorks have each agreed to … [visit site to read more]

BBBY Reports Stronger Q3

Posted: 07 Jan 2010 07:56 AM PST

Bed Bath & Beyond Inc. (BBBY) recently reported better-than-expected third quarter 2009 results with double-digit growth in both the top-line and the bottom-line.
The company's quarterly earnings of 58 cents a share was below the Zacks Consensus Estimate of 62 cents, but was up 71% year-over-year from 34 cents reported in the prior-year quarter.
Net sales for the quarter increased 10.8% to $1.97 billion compared to the prior-year quarter. Comparable same-store sales increased 7.3% from … [visit site to read more]

Immucor Beats Estimates

Posted: 07 Jan 2010 07:40 AM PST

Immucor (BLUD) announced second quarter 2010 earnings per share of 28 cents, which was better than the Zacks Consensus Estimate of 26 cents and the year-ago quarter's 24 cents. Net income for the quarter was $19.7 million, compared with $17.3 million for the same quarter last year.
The company reported $82.6 million in revenues, an increase of 13% from $73 million in the corresponding period last year. The increase in revenues was based on both price and volume contributions, as well as a … [visit site to read more]

Surprise Build In Crude Inventories

Posted: 07 Jan 2010 07:23 AM PST

The U.S. Energy Department’s weekly inventory release showed a surprise build in crude and gasoline stockpiles. The agency's bearish report further added that distillate supplies logged a narrower-than-expected decline, while refinery run-rates also decreased from the previous week.
The federal government's Energy Information Administration (EIA) reported an unexpected 1.3 million barrel rise in crude inventories for the week ending January 1, 2010 (against expectations of a drawdown), as … [visit site to read more]

Pervasive Narrows Guidance

Posted: 07 Jan 2010 12:06 PM PST

Pervasive Software Inc. (PVSW) recently narrowed its guidance for the second quarter. The company now expects revenues to come between $11.5 million and $11.7 million compared to the previous guidance of revenues between $11.0 million and $12.0 million. Earnings per share (EPS) are now projected between $0.06 and $0.07 compared to the earlier projection of $0.05 – $0.08.
 
Pervasive expects to generate $2.3 million of cash flow from operating activities. The company repurchased … [visit site to read more]

Cold Snap In The US Lighting A Fire Under Energy Complex And Agri-Commodities

Posted: 07 Jan 2010 12:01 PM PST

A relentless surge of cold weather is slamming nearly every country in the Northern Hemisphere, disrupting travel, threatening crops and driving energy and commodity prices higher as investors look for ways to cash in.

In the United States, crude oil is trading near a 14-month high. Natural gas and heating oil prices have also surged, as the U.S. shivered under the onslaught of an arctic express that sent temperatures plummeting below zero across two-thirds of the country. Even Florida … [visit site to read more]

The Trade Of The Century

Posted: 07 Jan 2010 12:00 PM PST

When you think about hot commodities right now, you probably don't think of water. Yet the price of water in some parts of the world is rising…sometimes very quickly. Take California, for example.
Mark Swatek is CEO of Southwest Water Co., a water utility that serves California and the Southwestern US. You may accuse him of talking his book when he says: "One of the fastest growing commodity prices is the price of metropolitan water [in Southern California]."
It may be an exaggeration, … [visit site to read more]

Costco Comp Store Sales Up 9%

Posted: 07 Jan 2010 06:47 AM PST

Costco Wholesale Corporation (COST), one of the leading U.S. warehouse club operators, reported December sales of $8.26 billion, up 11% from $7.41 billion in the year-ago period.
Total comparable store sales for the 5-week period ended January 3 were up 9%. Costco posted a 5% comparable store growth in the U.S. and 25% in the International markets. This included a positive impact of rising gasoline prices and a weaker U.S. dollar.
Excluding the above effects, Costco's comparable store sales … [visit site to read more]

Motorola Unveils New Smartphone

Posted: 07 Jan 2010 06:45 AM PST

Motorola Inc. (MOT) yesterday introduced the latest addition to its smartphone portfolio, the BACKFLIP. This device has its keypad at the back, which can fold out rather than slide out. BACKFLIP will combine the social networking and personalization of MOTOBLUR software with the multitasking performance. Motorola will start shipment of this mobile phone in the current quarter. 

After Cliq and Droid, BACKFLIP is the third 3G smartphone of Motorola. All the three phones are using Google … [visit site to read more]

AAR Signs MoA With Sikorsky

Posted: 07 Jan 2010 06:30 AM PST

Yesterday, AAR Corp. (AIR) signed a Memorandum of Agreement (MoA) with Sikorsky Aircraft Corporation under which the two companies will work together to identify opportunities for expanding their business relationship. In addition to becoming an exclusive supplier of composite interiors for the Sikorsky S-92® helicopter program, AAR will provide precision machining services for S-92 helicopter flooring and a structural component of the H-60 helicopter airframe. The combined value of initial … [visit site to read more]

Video: Constellation Brands Pours Out A Loss

Posted: 07 Jan 2010 04:26 PM PST

Constellation Brands announced Thursday that its 3Q profit fell 47% on restructuring costs and weaker wine sales. … [visit site to read more]

Video: Crude Prices Slide On Profit Taking

Posted: 07 Jan 2010 04:24 PM PST

Front month crude prices were on the downside this session as investors believed crude’s recent rally was overdone. … [visit site to read more]

Snapdragon Enters PC World

Posted: 07 Jan 2010 06:15 AM PST

Yesterday Qualcomm Inc. (QCOM) announced that it has entered into an agreement with Hewlett Packard Co. (HPQ), to design a smartbook based on Qualcomm's Snapdragon platform. This smartbook will have Google Inc's (GOOG) Android operating system. The device will use the Snapdragon QSD8250 chipset with an integrated Scorpion central processing unit which will deliver speed up to 1GHz. The device will also support high-speed 3G wireless connectivity together with WiFi … [visit site to read more]

Forex Trading: GBPUSD Back Between The “Goal Post”. To Learn About It, Attend Our Webinar Scheduled For 4:00 PM NYT

Posted: 07 Jan 2010 10:59 AM PST

To register go … [visit site to read more]

No comments:

Post a Comment