Daily Markets - Financial News & Opinions

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• Cold Snap Has Brought Out The Oil Bulls
• Weekly Rig Count Grows By 31
• Technical Outlook Of Gold, Silver, Natural Gas And Oil ETFs
• GOL Sees High December Traffic
• Running Out Of Financial Firepower
• Statoil Adds Feathers To Cap
• Dominion Boosts Customer Service
• WM Expands Recycling Services
• Chart Of The Week: Regional Banks Rising?
• Video: Market Movers: MMR, CVX, BP, GLW, DIS, CMG, PNRA, RUTH, BKC
• Plains Adds To Capline Stakes
• Video: Dollar Declines On Lack Of Economic Data
• St. Mary Offloads Rocky Holdings
• Forex Trading: USD/JPY Facing Pressure On The Top Side Of The Goalposts
• New Market For Abbott’s XIENCE V
• Swiss Franc: Rebound In Sight
• TAM Expands Codeshare Deal
• The Seven Investment Risks You Should Avoid In 2010
• Congo Adopts US-Style Economic Stimulus, With A Twist
• SMFG To Buyback $1.1B Shares
• GPN Tops, Guides In Line
• ETF’s To Buy, Sell, Or Hold
• Australian Dollar: The Bias Remains Bullish
• Canadian Dollar: Caution
• Japanese Yen: The Upside Prevails
• British Pound: The Upside Prevails
• Euro: The Upside Prevails
• Morgan Stanley Initiated As Neutral
• Jobs Losses A Continued Drag On The Economy
• Cornerstone Provides Guidance
• Video: NYSE Opening Bell Market Monitor: AA, BP, CVX
• Aeropostale Guides Higher
• Roche Eyes COPD Market
• Forex Trading: EUR/USD Eyes Possible Upside Target At 100 Day MA 1.4671
• Video: Asian Markets Start Week Mixed
• Forex Trading: GBP/USD Haunted By The 1.6158 Level

Cold Snap Has Brought Out The Oil Bulls Posted: 11 Jan 2010 11:17 AM PST Fundamentals Crude Oil has risen to 15-month highs on a failing greenback and cold weather, which could tighten Heating Oil supplies in the Northeast. Russia has also failed to reach an agreement with Belarus on Oil supplies, which could cut off Russian exports to continental Europe. This suggests supplies may tighten more quickly than previously anticipated. Dollar bulls hoping that the strength of the currency would follow through into 2010 have had their hopes dashed. The weaker than … [visit site to read more]

Weekly Rig Count Grows By 31 Posted: 11 Jan 2010 11:03 AM PST In its weekly release, Houston-based oilfield services company Baker Hughes Inc. (BHI) reported a rise in the U.S. rig count (number of rigs searching for oil and gas in the country), reflecting ramped-up drilling activity by producers in response to the recent optimism about an economic recovery and higher commodity prices. Rig count in the U.S. climbed to 1,220 for the week ended Jan. 8, 2010 (as clear from the first chart below from Baker Hughes). This is up by 31 from the previous … [visit site to read more]

Technical Outlook Of Gold, Silver, Natural Gas And Oil ETFs Posted: 11 Jan 2010 11:01 AM PST The purpose in owning commodities like gold, silver and oil is to protect oneself from the effect of inflation that I believe will begin to assert itself in the coming months. Unfortunately, the United States has taken a monetary policy of printing massive amounts of money to attempt an escape of deflation. In just the past 16 months, the monetary base has ballooned from $908 billion to $2.0 trillion. Bailout funds in the past 2 years total $8.1 trillion….. That is 78 times more than what … [visit site to read more]

GOL Sees High December Traffic Posted: 11 Jan 2010 11:00 AM PST On Friday, GOL Linhas Aereas Inteligentes S.A. (GOL) announced its preliminary passenger traffic figures for December 2009.  In December, Gol’s total passenger traffic grew by 34.8% in relation to the same period last year, reflecting Gol's better positioning in its markets in 2009 and increased demand due to recovery in Brazil’s economy.   Domestic passenger traffic increased 36.2% in relation to December 2008, and international passenger traffic increased 23.9% year over … [visit site to read more]

Running Out Of Financial Firepower Posted: 11 Jan 2010 11:00 AM PST The fight goes on! We mean the fight between greed and fear, boom and bust, expansion and contraction. This is a fight that goes on all the time. But it is usually kind of a 'cold war.' Years go by without much activity. Stocks meander. A few companies go bust. A few boom. Interest rates…the dollar…and commodities are fairly steady. Then, there are periods when all Hell seems to break loose. We've been in a shooting war for many years – since the bubble blew up in the tech sector at … [visit site to read more]

Statoil Adds Feathers To Cap Posted: 11 Jan 2010 10:45 AM PST Statoil ASA (STO), the Norwegian oil major, has decided to invest $1.4 billion in the Iraqi West Qurna Phase 2 oil field over the next four to five years and anticipates booking some reserves from the field.   Located in the Basra Governorate, Iraq, the huge West Qurna Phase 2 oil field holds approximately 12.8 billion barrels of proven crude oil reserves. Statoil and its Russian partner Lukoil owns 25% and 75%, respectively, in this oil field.  While Lukoil intends investments … [visit site to read more]

Dominion Boosts Customer Service Posted: 11 Jan 2010 10:29 AM PST Dominion Virginia Power, a subsidiary of Dominion Resources Inc. (D) announced plans to spend $4 billion over three years to improve and expand its ability to provide reliable electric service to its customers.   In a letter to the company’s 2.3 million customers, management pointed out that Dominion is focused on areas where service reliability did not meet the company’s systemwide average, which reached 99.9% in 2009. As part of its efforts improve service to customers, the Dominion … [visit site to read more]

WM Expands Recycling Services Posted: 11 Jan 2010 10:13 AM PST Waste Management, Inc. (WM) announced the acquisition of City Wide Recycling LLC, which further expands the company's recycling services provided to construction and demolition contractors. The company said that the transaction was closed on Dec 31, 2009.   Waste Management pointed that the City Wide Recycling developed southeastern Wisconsin’s largest, and the only automated, processing facility for recyclable wastes collected at construction and demolition job … [visit site to read more]

Chart Of The Week: Regional Banks Rising? Posted: 11 Jan 2010 10:01 AM PST In 2010 I have a bunch of indicators I will be looking at in order to get a sense of how the economy and the stock market are performing. One of the ones I am choosing to profile in this week’s chart of the week is the relative performance of regional banks (KRE) to the broader banking sector (KBE). The rationale is fairly simple. While the money center banks have benefited disproportionately from various crisis-related government programs and policies over the course of the past … [visit site to read more]

Video: Market Movers: MMR, CVX, BP, GLW, DIS, CMG, PNRA, RUTH, BKC Posted: 11 Jan 2010 09:59 AM PST The latest news and information on U.S. stocks that are moving the market. … [visit site to read more]

Plains Adds To Capline Stakes Posted: 11 Jan 2010 09:55 AM PST Master limited partnership, Plains All American Pipeline L.P. (PAA) announced that it has acquired additional 21% stakes in the Capline Pipeline system and 100% stake in 720,000 barrels of tankage at Patoka, Illinois. The Capline assets were acquired for an aggregate consideration of approximately $64 million. The partnership acquired these assets from Chevron, Marathon Oil Corporation and Shell Pipeline Company L.P. in a series of direct or indirect transactions.   The deal makes … [visit site to read more]

Video: Dollar Declines On Lack Of Economic Data Posted: 11 Jan 2010 09:39 AM PST The US dollar dropped this session, most specifically against the euro to a three-week low, on a lack of economic data. … [visit site to read more]

St. Mary Offloads Rocky Holdings Posted: 11 Jan 2010 09:39 AM PST St. Mary Land & Exploration Co. (SM) has entered into three different transactions to sell its non-core Rocky Mountain properties for a total consideration of $307 million.   In the first transaction, St Mary sold acreage in Wyoming to Legacy Reserves LP (LGCY) for $130 million. The deal is expected to close in February this year. In the second transaction, the company sold its North Dakota properties to a private buyer for $137 million. This transaction is anticipated to close in … [visit site to read more]

Forex Trading: USD/JPY Facing Pressure On The Top Side Of The Goalposts Posted: 11 Jan 2010 09:31 AM PST The USD/JPY is facing pressure from the top side of the goalpost. The pair failed to break above the 200 Day moving average at 93.49 and has since moved lower into the middle of the two moving averages. We have followed this pair up from the break above the 100 Day MA in late December. The current weak dollar sentiment from Friday's NFP releases to today's Chinese data, have pushed the USD/JPY lower. The pair is holding just above support at the 91.71 area. A move below this could take the … [visit site to read more]

New Market For Abbott’s XIENCE V Posted: 11 Jan 2010 09:24 AM PST Abbott's (ABT) XIENCE V Everolimus Eluting Coronary Stent System recently received approval from the Japanese Ministry of Health, Labor and Welfare (MHLW) for the treatment of coronary artery disease (CAD). Abbott is looking to launch the product shortly.   In our opinion, the launch of XIENCE V in Japan should bring in significant incremental revenues for the company's Vascular Product division which posted sales of $2.2 billion in 2008. Japan is the second-largest drug eluting … [visit site to read more]

Swiss Franc: Rebound In Sight Posted: 11 Jan 2010 09:17 AM PST Update on supports and resistances. … [visit site to read more]

TAM Expands Codeshare Deal Posted: 11 Jan 2010 09:07 AM PST Last week, TAM S.A. (TAM) decided to expand its codeshare agreement with TRIP Linhas Aereas. Initially, the agreement was signed on January 11, 2009. With it, Sao Paulo-based TAM is able to sell flights operated by TRIP, under the code JJ*, to the cities of Bonito, via Campo Grande and Lencois and Petrolina, via Salvador. TAM and TRIP currently maintain a codeshare agreement for the operation of flights to 39 destinations within Brazil. The partnership enlarges TAM’s domestic network from 79 … [visit site to read more]

The Seven Investment Risks You Should Avoid In 2010 Posted: 11 Jan 2010 09:01 AM PST Spurred by its best annual performance since 2003, U.S. stocks stampeded into the New Year, with the Dow Jones Industrial Average, the Nasdaq Composite Index and Standard & Poor’s 500 Index posting gains of 1.49%, 1.73% and 1.60%, respectively. And while that’s certainly a respectable beginning, investors shouldn’t assume it signals that a bull market run its course for the full year. Indeed, while Money Morning’s outlook for 2010 is generally positive, there are at least seven major … [visit site to read more]

Congo Adopts US-Style Economic Stimulus, With A Twist Posted: 11 Jan 2010 08:54 AM PST Congo's new economic stimulus package of distributing one AK-47 to each citizen certainly sounds — in a humanitarian sense — morally inferior to the various good-natured but ill-conceived measures applied by the US government. On a positive note… at least Congo's stimulus isn't directly contributing to bloated government payrolls. See the Onion's morbid humor clip in the video below: Congo Approves Economic Stimulus Package Of AK-47 For Every … [visit site to read more]

SMFG To Buyback $1.1B Shares Posted: 11 Jan 2010 08:51 AM PST Tokyo-based Sumitomo Mitsui Financial Group Inc. (SMFG) recently announced that it will buyback its preferred share capital worth about $1.1 billion from Goldman Sachs Group Inc. (GS) to convert into common stock. SMFG has offered the conversion to Goldman Sachs in the wake of its $9.6 billion capital raising strategy, as it plans to use the proceeds to purchase preferred and other debt securities in order to diminish interest expense of the company.   Sumitomo Mitsui, the second … [visit site to read more]

GPN Tops, Guides In Line Posted: 11 Jan 2010 08:34 AM PST Global Payments Inc. (GPN) recently posted fiscal 2010 second-quarter earnings from continuing operations of $58 million, compared to $45.9 million in the year-ago period. Earnings per share came in at 71 cents, topping the year-ago figure of 57 cents and the Zacks Consensus Estimate of 61 cents.   Global Payments offers electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), financial institutions, government agencies and … [visit site to read more]

ETF’s To Buy, Sell, Or Hold Posted: 11 Jan 2010 08:31 AM PST This is a follow up to the list of ETF’s that I had presented with buy, hold or sell recommendations. See Table 1. Table 1. ETF’s The list was last presented on December 20, 2009, and at the time, there was a predominance of hold and sell signals. All of these ETF’s on this list had a clustering of negative divergence bars, and in the absence of having a crystal ball to predict market direction, the high odds play was to sell something, anything. This was an insurance policy so to speak of … [visit site to read more]

Australian Dollar: The Bias Remains Bullish Posted: 11 Jan 2010 08:17 AM PST Update on supports and resistances. … [visit site to read more]

Canadian Dollar: Caution Posted: 11 Jan 2010 08:17 AM PST Update on supports and resistances. … [visit site to read more]

Japanese Yen: The Upside Prevails Posted: 11 Jan 2010 08:17 AM PST Update on supports and resistances. … [visit site to read more]

British Pound: The Upside Prevails Posted: 11 Jan 2010 08:17 AM PST Update on supports and resistances. … [visit site to read more]

Euro: The Upside Prevails Posted: 11 Jan 2010 08:17 AM PST Update on supports and resistances. … [visit site to read more]

Morgan Stanley Initiated As Neutral Posted: 11 Jan 2010 08:16 AM PST We recently initiated coverage on Morgan Stanley (MS) with a Neutral recommendation. The company's third-quarter earnings of 38 cents per share was substantially ahead of the Zacks Consensus Estimate of 30 cents per share. Net revenues for the quarter were $8.7 billion, up 60% sequentially but down 52% year over year. Results were helped by robust underwriting and wealth management revenues that were partially offset by losses in commercial real estate. Though a low level of activity was … [visit site to read more]

Jobs Losses A Continued Drag On The Economy Posted: 11 Jan 2010 08:11 AM PST The non-dollar currencies and commodities are flying high this morning, hammering the dollar. The Aussie (AUD) and Canadian (CAD) dollars are heading to parity once again, the euro (EUR) is back over the 1.45 handle, and gold is up $20! It's "all good" for non-dollar investors this morning… I don't want to sound like a cheerleader – of which I have in the past – but, this is a currency/economy letter, and it's geared to non-dollar currency investors… So, take that as it may … [visit site to read more]

Cornerstone Provides Guidance Posted: 11 Jan 2010 08:00 AM PST Recently, Cornerstone Therapeutics Inc. (CRTX) forecasted net revenues exceeding $112 million for the year ending December 31, 2010. The guidance for fiscal 2010 assumes that its branded products will contribute more than 75% of net revenues in 2010 compared to the 2009 contribution of 40%. The company expects to report net revenues greater than or equal to $104 million in fiscal 2009. Cornerstone expects to earn more than $10.2 million or 38 cents per share in 2010.   Cornerstone … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: AA, BP, CVX Posted: 11 Jan 2010 07:49 AM PST The latest in news, commentary, and information on what’s moving the US equities markets. … [visit site to read more]

Aeropostale Guides Higher Posted: 11 Jan 2010 07:47 AM PST Aeropostale Inc. (ARO) – a specialty retailer of casual apparel and accessories targeting young women, men and children – recently reported sales results for the five-week period ended January 2, 2010.   Aeropostale's comparable-store sales for December climbed 10% compared to an increase of 12% posted in the same month last year. Year-to-date comps increased 10% compared to an increase of 8% in the same period last year.   Net sales for December jumped 17% to $460.8 million … [visit site to read more]

Roche Eyes COPD Market Posted: 11 Jan 2010 07:32 AM PST Roche (RHHBY.PK) has entered into an alliance with the Belgian biotech company Galapagos to develop new therapies for the treatment of chronic obstructive pulmonary disease (COPD). While Galapagos will be responsible for the development of COPD targets and drug candidates for these targets, Roche will have an exclusive option to license each Galapagos development program at an early stage. On exercising the option, Roche will be responsible for further development of the drug candidates and … [visit site to read more]

Forex Trading: EUR/USD Eyes Possible Upside Target At 100 Day MA 1.4671 Posted: 11 Jan 2010 07:28 AM PST It appears that traders are eyeing the EUR/USD for a possible upside target at the 100 Day MA 1.4671. The pair has broken cleanly over the 1.4448 level and is well between the goalposts. As with everything in life, there are no sure things, but frequently, when key levels are broken, this gives the market the confidence to try for further levels in the same direction. The next level of short term resistance will come in at 1.4585. Above this will be the 100 Day MA at 1.4671. On the downside if … [visit site to read more]

Video: Asian Markets Start Week Mixed Posted: 11 Jan 2010 07:09 AM PST The major Asian/Pacific markets kicked off a new trading session mixed as the Hang Seng rose while the Sensex fell. … [visit site to read more]

Forex Trading: GBP/USD Haunted By The 1.6158 Level Posted: 11 Jan 2010 06:30 AM PST GBP/USD appears to be haunted by the 1.6158 level. At the same time, the pair has re-entered the "goalposts," as defined by the 100 day (1.6314) and 200 day (1.6103) moving averages. The 1.6158 level is just above the current price and has acted as a brake numerous times over the past six months. Looking at the 1 hour timeframe, the bias would be considered to the upside, but the pair has failed to break over the 1.6192 level for the time being. Directly below this level is the 1.6158 … [visit site to read more]

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