Jan 7, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions


Is There A Decennial Pattern In Stock Returns?

Posted: 07 Jan 2010 04:01 AM PST

Does the number in which a year ends play a role as far as stock market performance goes? Take a look at the charts below (courtesy of The Big Picture blog via The Chart Store) for a bit of pop analysis.
The first chart shows the average annual performance of the Dow Jones Industrial Average since inception for years ending in 0, 1, 2, etc., whereas the second chart indicates the performance of each of the zero years. Voodoo? Perhaps, but nevertheless … [visit site to read more]


Can The UK Government Really Make It To A June Election Without A Sovereign Crisis?

Posted: 07 Jan 2010 03:21 AM PST

The events at Westminster yesterday make the comic The Thick of It, look quite tame in its parody. Some now quite pathetic ex-ministers hope a simple letter will be enough to get rid of a tenacious and street-fighting Prime Minister.

That the plot failed is not much of a surprise, neither the the lack of solid backing for Brown by his enemies. Brown too did not have the stomach to go for a vote and therefore renew his mandate ahead of an election and get a boost for his personal rating … [visit site to read more]


Warren Buffett Reminds Wall Street That Shareholders Come First, With His Rebuke Of Kraft

Posted: 07 Jan 2010 02:58 AM PST

A decade ago, investing guru Warren Buffett helped torpedo a $15.3 billion Coca-Cola Co. (KO) bid for Quaker Oats Cos., arguing that the terms were lousy and the proposed price way too high.

Now Buffet is causing similar complications with a Kraft Foods Inc. (KFT) plan to buy Britain’s Cadbury PLC (CBY), announcing that he’s wholly opposed to a plan to issue as many as 370 million Kraft shares to get the deal done. As Kraft’s largest shareholder - Buffett’s Berkshire Hathaway Inc. … [visit site to read more]


Forex Review For 7 January

Posted: 07 Jan 2010 02:36 AM PST

USD Dollar (USD)

The Dollar weakened against most majors owing to the ADP Employment Change that came out worse than expected showed that Companies in the U.S. cut an estimated 84,000 jobs in December, also ISM Non-Manufacturing PMI came out worse than expected at 50.1 vs. 50.5 forecast . NASDAQ decreased by 0.33% and Dow Jones rose by 0.02%. Crude oil traded near a 14-month high in New York as an industry report showed a decline in U.S. crude inventories, strengthened by 1.7% closed at … [visit site to read more]


Stock News Briefs: GMAC To Post Record Loss; Markman Calls Dow Surge; Harley’s Hogs To Rumble In India

Posted: 07 Jan 2010 02:31 AM PST

Dodd’s Departure; Cybersitter Files Suit; ADP: Service Sector Added Jobs in Dec.; Harley’s Hogs to Rumble in India; GMAC to Post Record Loss; Markman Calls Dow Surge

U.S. Sen Christopher Dodd, D-CT, said yesterday (Wednesday) that he will not seek re-election in November, potentially altering the debate over financial reform. Dodd, who is chairman of the Senate Banking Committee, in November released an 1,136-page draft bill for reform that would create several new protection agencies, … [visit site to read more]


Indian Stock Market: Sensex Snaps 4 Day Winning Streak Down 85.41 Points On Thursday

Posted: 07 Jan 2010 02:11 AM PST

Sensex fell 85.41 points or 0.08 to 17615.72
Nifty fell 13.70 points or 0.07% to 5263.10
Mid Cap fell 0.7%. Small Cap fell 0.4%.
BSE 500 fell 0.3%. Sensex losers: 21

Of 13 BSE Sectoral indices, 10 posted losses.
Advancers: 1584, Decliners: 1280, Unchanged: 95
Advance/Decline Ratio: 5:4

Sensex Day’s Range: 17733.34 - 17566.54
Nifty Day’s Range: 5302.55 - 5244.75
Nifty 52-Wk Range: 5310.85 - 2539.45
Sensex 52-Wk Range: 17790.33- 8047.17

Sensex gainers were: Hindalco +2.1%, Rel … [visit site to read more]


US Nonfarm Payrolls This Friday Could Dampen Commodities

Posted: 07 Jan 2010 02:01 AM PST

Overall this week has not been that exciting. Volume is below average as the big money traders slowly get back into action and wait for Friday’s economic data to come out.

We have seen gold, silver and oil put in a nice rally this week but they are still not in the clear. If we get flat or better unemployment numbers we should see the US dollar rally. This seems to be exactly what the chart is telling us when using technical analysis. Here are the numbers for Friday.

Friday … [visit site to read more]


Definitive Guide To Palladium ETF Investing: Palladium ETFs 101

Posted: 07 Jan 2010 02:00 AM PST

In recent weeks, news that London-based ETF Securities is preparing to launch physically-backed platinum and palladium ETFs rolled through the financial markets, causing tremendous excitement among bulls and inflation bugs alike and sending prices of these metals soaring in anticipation. There are currently multiple exchange-traded products offering exposure to platinum through futures-based strategies (see this guide for an in-depth look at these funds), but the proposed palladium ETF would be … [visit site to read more]


How Chile Got Amazingly Rich: Free Trade

Posted: 07 Jan 2010 01:01 AM PST

INVESTOR’S BUSINESS DAILY -
Chile was formally invited to OECD’s club of developed countries on Dec. 15 - a great affirmation for a once-poor nation that pulled itself up by trusting markets. One thing that stands out here is free trade.

Chile is the first country in South America to win the honor, and in a symbolic way its OECD membership card seals its exit from the ranks of the Third World to the First. For the rest of us, it’s a stunning example of how embracing free … [visit site to read more]


Video: Google Launches ‘Nexus One’ Mobile Phone

Posted: 07 Jan 2010 06:00 AM PST

Google unveiled its new mobile phone, the HTC Nexus One. The smartphone is being compared to Apple’s iPhone. … [visit site to read more]


Forex Trading: Eurozone Retail Sales Poor

Posted: 07 Jan 2010 12:58 AM PST

Eurozone retail sales m/m came in at -1.2%, weaker than the 0.0% expected and 0.0% prior reading.
Earlier in the session German retail sales came in very poor setting the stage for poor eurozone figures. Eur/Usd sold off 10 minutes prior to release. the market was surely anticipating a negative number.
The pair currently trades at … [visit site to read more]


Will The US Ever Recover From The Great Recession?

Posted: 07 Jan 2010 12:01 AM PST

An interested reader asks, “One question I would like to ask is whether you see the US ever fully recovering from this recession?”

Good question.  In the common sense of the term, yes we’ll fully recover.  The level of economic activity will fully recover all lost ground, and then hit new record highs.  No problem.  Let’s take a look at the long-run history:

(Data note: the chart shows the logarithm of real GDP.  For those of you who don’t usually live with logs, the key … [visit site to read more]


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