Jan 8, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

China Boom, Or China Bust?

Posted: 08 Jan 2010 11:13 AM PST

Is the great hope of the investment world little more than hype? We like to visit the "China boom or China bust?" debate every once in a while, and the argument today is pretty one-sided… the "busts" have it.
"Bubbles are best identified by credit excesses, not valuation excesses," famous short seller Jim Chanos begins, "and there's no bigger credit excess than in China." He's clearly made up his mind, calling China "Dubai times 1,000." Given his history with Enron, … [visit site to read more]


LMT To Downsize Electronics

Posted: 08 Jan 2010 11:07 AM PST

Lockheed Martin Corporation (LMT) announced that it plans to downsize its workforce by 1,200 to reorganize its Electronics Systems segment. The downsizing is however less than 1% of the company’s workforce of 140,000. Lockheed Martin plans to carry out the downsizing in April 2010.
 
Through the reorganization, Lockheed Martin plans to form a new business unit called Mission Systems and Sensors that will operate within its Electronic Systems segment. The new business unit will include … [visit site to read more]

Solar ETFs Soar As The Energy Is Embraced By The US

Posted: 08 Jan 2010 11:01 AM PST

While solar energy might be employed more in other countries (think Germany and China), many states on our own turf have been pushing  to use the energy source more. Even if you don’t install your own panels, you can play the growth with solar exchange traded funds (ETFs).

Availability of sunlight, social and political values, disposable income, as well as state and local incentives all provide the necessary push for consumer interest in home solar power, writes Brian Clark Howard for The … [visit site to read more]

TranS1’s Preliminary Revenues

Posted: 08 Jan 2010 05:48 AM PST

TranS1 Inc. (TSON) has reported preliminary revenues for the fourth quarter of 2009. Revenues are expected to be approximately in the range of $6.2 million to $6.3 million, lower than the company's previous guidance of $6.7 million to $7.2 million. The company expects to report its full fourth quarter results in late February 2010.
 
TranS1 has lowered its guidance on revenues due to concerns in the market regarding reimbursement for its AxiaLIF procedure. The company is addressing … [visit site to read more]

Video: Crude Trades Flat As Week Approaches End

Posted: 08 Jan 2010 10:47 AM PST

Front month crude prices were trading within a tight range this session despite a slide in jobs data with the week coming to a close. … [visit site to read more]

Mexico Confirms Spectrum Auction

Posted: 08 Jan 2010 05:31 AM PST

The Mexican government has finally announced that it will complete the much-awaited wireless spectrum (radio bandwidth) auctions in the country by the end of June 2010. In November 2009, the Mexican telecom regulator Cofetel divulged the bidding rules for the radio-electric spectrum to be offered to qualified bidders in two separate auctions.
 
The regulator will announce the winners within 30 days of the submission of bids on May 25, 2010. Interested bidders have to be approved by the … [visit site to read more]

Market Overreacts To BLS Numbers

Posted: 08 Jan 2010 05:20 AM PST

Looking at the market's reaction to this morning's payroll numbers — equities and dollar down, Treasuries and gold up — you would think that the bottom was falling from the U.S. economy. I see no evidence in today's report that would justify such a glum mood.
In fact, I see more positives than negatives in today's report about the direction of the U.S. labor market and underlying economy. As such, I am looking forward to a turnaround in sentiment as today's report is reassessed … [visit site to read more]

Video: UPS To Deliver More Job Cuts

Posted: 08 Jan 2010 10:17 AM PST

UPS announced that it will soon cut 1,800 workers while raising its earnings guidance for the fourth quarter. … [visit site to read more]

Video: Market Movers: KO, BA, CMG, WOR, HTX

Posted: 08 Jan 2010 10:14 AM PST

The latest news and information on U.S. stocks that are moving the market. … [visit site to read more]

Jacobs Wins Sasol Deal

Posted: 08 Jan 2010 10:12 AM PST

Earlier this week, Jacobs Engineering Group Inc. (JEC) received a contract from Sasol, an integrated oil, gas and chemical company operating worldwide, to provide basic engineering services for the first commercial installation of Sasol’s proprietary tetramerization technology. However, Jacobs did not disclose the contract value.
 
The location for the first unit has not been determined, however Sasol’s chemical complex, located near Lake Charles, La., is a leading candidate. The basic … [visit site to read more]

Excavating A Winner: Great Lakes Dredge And Dock

Posted: 08 Jan 2010 10:01 AM PST

What is a dredging and demolition business doing headquartered in upscale Oak Brook, Illinois? The only thing that needs dredging and demolition in that locale are some worn out restaurants and a permanent fix for the pot holes and traffic stagnation off Cermak, Wolf and Butterfield Roads. The Kingery, too, as it spurts and stops to the frustration of commuters anxious to get home to their apartment,bungalows or mansions ringing the area.

Great Lakes Dredge and Dock (GLDD) has a … [visit site to read more]

Video: Dollar Declines On Surprising Job Cut Figures

Posted: 08 Jan 2010 10:00 AM PST

The US dollar continued to slide against both the euro and yen this session following an unexpected drop in US nonfarm payrolls for December. … [visit site to read more]

Forex Trading: USDJPY Moves To Test 100 Hour MA At 92.47

Posted: 08 Jan 2010 09:55 AM PST

The price dipped below the 100 hour MA earlier after the NFP report. This is the second test.  The level comes in at the 92.47 level.   Look for profit taking buyers with stops on a move below.   Confirmation of a break comes on a break of the 200 bar MA in the same chart (green line above).  This level comes in at … [visit site to read more]

ASUR Passenger Traffic Dips

Posted: 08 Jan 2010 04:53 AM PST

Yesterday, Grupo Aeroportuario del Sureste, S.A.B. de C.V. (ASR) announced a 4.1% decrease in total passenger traffic for December 2009 compared to last year's figure.
 
Domestic passenger traffic decreased 3.5%, while international passenger traffic decreased 4.6% compared to December 2008.
 
The lower international passenger traffic resulted mainly from a decline of 5.3% in international traffic of 5.3%, 12.0%, and 14.5% at the Cancun, Tapachula and Huatulco airports … [visit site to read more]

Tetra Tech Gets Contract

Posted: 08 Jan 2010 04:37 AM PST

Tetra Tech Inc. (TTEK) announced that it has been awarded the $200 million Navigation Technical Assistance Contract (NAVTAC) with the Federal Aviation Administration (FAA). The initial contract is for $70 million, but would grow to $200 million over seven years if all options are exercised.
 
Tetra Tech will provide engineering and technical support services for the planning, research, development, implementation and decommissioning of FAA's navigation, landing, and lighting … [visit site to read more]

KGS Buys Alliance Assets

Posted: 08 Jan 2010 04:19 AM PST

Recently, Quicksilver Gas Services L.P. (KGS) bought the Alliance midstream gathering and treating assets from Quicksilver Resources Inc. (KWK) for a total purchase price of approximately $95 million. The purchase was funded through draws on the company’s senior secured revolving credit facility.
The acquired Alliance assets consist of gathering systems and compression facilities with a total capacity of 115 million cubic feet per day (MMcfd) and a plant with amine treating capacity of 180 … [visit site to read more]

Turkcell To Link Lighthouses

Posted: 08 Jan 2010 09:03 AM PST

Turkcell (TKC) announced that that it will collaborate with Turkey’s Directorate General of Coastal Safety for its “Remote Management of Lighthouses” project.
 
During the first phase of the project, Turkcell will provide communication between 185 lighthouses and the control center based in Istanbul. The number will go up to 430 by the end of 2011. Turkcell’s best quality, wide coverage will allow seamless data transfer between lighthouses while decreasing the communication distance … [visit site to read more]

Bill Gross: “Let’s Get Fisical”

Posted: 08 Jan 2010 09:01 AM PST

Bill Gross, co-founder and co-CIO of PIMCO, is to my mind one of the sharpest investment brains around. His monthly newsletter, this month entitled “Let’s Get Fisical”, therefore always makes for thought-provoking reading.
The following are excerpts from the January newsletter:
“Explaining the current state of global fiscal affairs is often confusing - it’s much like Robert Palmer’s 1980s classic song where he laments that 'She’s so fine, there’s no telling where the money went!’ Where … [visit site to read more]

Google In The Energy Market

Posted: 08 Jan 2010 03:47 AM PST

Google Inc's (GOOG) application to the U.S. Federal Energy Regulatory Commission (FERC) seeks to authorize the company to procure and market electricity. While some may view the initiative as a play in a new market, Google's intention appears fairly obvious to us.
 
Google is moving a step closer to its stated intention of becoming "carbon neutral”.  The company has been buying carbon offsets for the purpose. Offsets are instruments that may be purchased by carbon emitting … [visit site to read more]

Forex Trading: EURUSD Moves Above The 100 And 200 Hour MA

Posted: 08 Jan 2010 08:43 AM PST

The range trading in the EURUSD continues.  The price has been moving above and below the 100 and 200 hour MA now for the last 9 days.  The two moving averages are converged, the topside is defined by the 1.4484 level and the downside is defined by the 1.4217 level. The inside range is 1.4261 and 1.4446 with the bullish/bearish pivot being the 100 and 200 hour MAs at the 1.4373 area. 
The price has just squeezed back higher above the moving averages which gives the pair a … [visit site to read more]

Saks Reports Higher Sales

Posted: 08 Jan 2010 03:31 AM PST

Saks Inc. (SKS) reported total sales of $393.6 million for the month of December 2009, which was 11.1% higher than $354.4 million in the same period a year ago. The company's comparable store sales grew 9.9% for the five weeks ended Jan 2, 2010, as it benefited from a designer clearance event.
 
During the five week period, the company saw growth in women's designer and "gold range” apparel, men's sportswear, women's shoes, and handbags. According to Saks, the weakest … [visit site to read more]

Video: JP Morgan Sees Coca-Cola Losing Its Fizz

Posted: 08 Jan 2010 08:20 AM PST

JP Morgan announced Thursday that it downgraded Coca-Cola shares on weak volume growth. … [visit site to read more]

Japanese Saber Rattling

Posted: 08 Jan 2010 08:19 AM PST

The dollar held the hammer over the non-dollar currencies yesterday, although the usual suspects of Aussie (AUD), Canada (CAD), kiwi (NZD) and Norway (NOK) didn't really lose that much ground… The real weakness has been seen in the three majors… Euro (EUR), yen (JPY) and sterling (GBP)…
There was a report that the Fed Reserve issued yesterday reminding banks to manage their interest rate risk, that reminded the markets that banks do have interest rate risk, and sparked a flood of … [visit site to read more]

Australian Dollar: The Bias Remains Bullish

Posted: 08 Jan 2010 08:17 AM PST

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

Canadian Dollar: Caution

Posted: 08 Jan 2010 08:17 AM PST

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

Genomic Health Provides Guidance

Posted: 08 Jan 2010 03:15 AM PST

Genomic Health, Inc. (GHDX) announced recently that it is confident of meeting the annual revenue guidance for the fiscal year 2009, ended Dec 31. The company expects to report revenues of $149.5 million for fiscal 2009. 

This represents a 35% increase on revenues of $110.6 million reported by Genomic Health in fiscal 2008. Genomic Health further announced that it expects to report revenues of $39.5 million in the fourth quarter of fiscal 2009. This represents a 26% increase on … [visit site to read more]

Employment Numbers Disappoint

Posted: 08 Jan 2010 03:13 AM PST

The employment report for December came in weaker than expected with 85,000 jobs lost, versus consensus expectations of a loss of 35,000 jobs. It is worth noting, however, that the consensus expectations had been moving down over the course of the week, especially in reaction to the ADP numbers, which proved to be very accurate this month.

The unemployment rate remained at 10.0%, but that was a function of a declining participation rate. The underemployment rate (U-6) ticked up to 17.3% … [visit site to read more]

RPM International’s Q2 Tops

Posted: 08 Jan 2010 03:00 AM PST

RPM International Inc. (RPM) recently reported fiscal 2010 second-quarter earnings of $55.9 million, or 43 cents per share, compared to $41.7 million, or 33 cents in the year-ago quarter. The result also came in ahead of the Zacks Consensus Estimate by 8 cents. The better-than-expected performance was mainly the result of management's cost reduction initiatives and stabilization in raw material prices.
 
RPM manufactures and markets specialty paints, protective coatings and roofing … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: KO, BAC, GIS

Posted: 08 Jan 2010 07:54 AM 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]

Morgan Picks ENOC To Save Energy

Posted: 08 Jan 2010 02:45 AM PST

In line with its constant energy saving efforts, on Thursday Morgan Stanley (MS) announced the purchase of Monitoring-Based Commissioning (MBCx), an energy efficiency software application from EnerNOC Inc. (ENOC). The MBCx application will be installed in the company's headquarters in Manhattan, New York; where leveraging the convergence of IT and energy data represents a huge prospect for efficiency and cost savings.
 
EnerNOC is a leading provider of clean and intelligent energy … [visit site to read more]

IShares Launches Muni Bond ETFs

Posted: 08 Jan 2010 07:39 AM PST

Following a tremendously successful 2009 that saw more than $40 billion flow into fixed income ETFs, the number of bond ETFs is expected to increase significantly in 2010. In what could be the first of many new product launches, iShares introduced a line of new municipal bond, or "muni," ETFs on Friday. Unlike existing muni bond products that are generally diversified across maturities, the iShares S&P AMT-Free Municipal Series includes six funds with a planned-end date and targeted … [visit site to read more]

Three Reasons Why You Should Add This Tech Titan To Your Portfolio

Posted: 08 Jan 2010 07:36 AM PST

Friday, January 8, 2010: Issue #1171
"It's all selling well. We can't replenish the stock fast enough."
A look around the store confirmed the employee's comments, in response to my question about how business was faring. I counted nearly 30 of his colleagues, helping throngs of people parked in front of every counter.
That was the scene at my local Apple (AAPL) store two days before Christmas. And one look at the company's share price suggests that it's a scene replicated at … [visit site to read more]

Video: Asian Markets Mixed To Close The Week

Posted: 08 Jan 2010 07:36 AM PST

The major Asian/Pacific markets closed out the trading week mixed as India’s BSE Sensex index posted a hefty loss. … [visit site to read more]

Pfizer Strides Into Generics Pact

Posted: 08 Jan 2010 02:30 AM PST

Pfizer, Inc. (PFE) recently joined hands with Indian company Strides Arcolab for the commercialization of off-patent sterile injectable and oral products in the United States. As per the agreement, these products will be commercialized through the company’s Established Products Business Unit. 

Strides and its joint ventures with Aspen, Onco Laboratories Limited and Onco Therapies Limited, will supply the finished products to Pfizer. About 40 off-patent products, mostly oncology … [visit site to read more]

Goldman Sued By Pension Fund

Posted: 08 Jan 2010 02:15 AM PST

On Thursday, Goldman Sachs Group Inc. (GS) was sued by the Central Laborers’ Pension Fund in Illinois, who had bought some Goldman stock in Jan, 2009. As an active investor the pension fund charged Goldman of distributing $22 billion to its employees as bonus payments for fiscal year 2009.
 
According to the pension fund, the excess bonus payments that amount to nearly 50% of the net revenue of the company are feared to be detrimental for Goldman investors. Such high payouts, especially … [visit site to read more]

Boeing Airplane Orders Down

Posted: 08 Jan 2010 02:00 AM PST

Boeing Company (BA) announced that in fiscal 2009 its commercial airplane order booking tumbled 61% to only 263 gross orders compared to 662 in fiscal 2008. However, hit by the recession a number of customers either cancelled or deferred their orders, bringing down the net order to a paltry 142. The pain is expected to be shared by Boeing's European competitor Airbus also who will release its numbers on Jan 12, 2010. 

Boeing on the other hand, witnessed its commercial airplane … [visit site to read more]
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