Jan 26, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

FPL Group Ahead Of Expectations

Posted: 26 Jan 2010 01:11 PM PST

Power producer FPL Group Inc. (FPL) reported better-than-expected fourth quarter results, helped by a robust performance from its utility subsidiary on the back of favorable weather conditions. Adjusted net earnings came in at 79 cents per share, 6 cents above the Zacks Consensus Estimate.
However, on a year-over-year basis, FPL Group's adjusted earnings per share was down approximately 12.2%, hurt by a planned outage at one of its nuclear plant, a poor wind resource across its fleet of … [visit site to read more]


Waters Corp. Matches Estimates

Posted: 26 Jan 2010 12:56 PM PST

Waters Corporation (WAT) reported earnings per share of $1.10, excluding restructuring charges, for the fourth quarter of 2009, which matched the Zacks Consensus Estimate.
The company reported fourth quarter 2009 sales of $429 million, an increase of 3% from sales of $418 million in the fourth quarter of 2008. In the quarter, foreign currency translation increased the sales growth rate by 4%. For the full year, sales for the Company were $1.50 billion, a decrease of 5% from sales of $1.58 … [visit site to read more]

Peabody Tops, Outlook Robust

Posted: 26 Jan 2010 12:34 PM PST

Peabody Energy Corporation (BTU) reported fourth-quarter and full-year 2009 earnings of 43 cents and $1.92 per share, respectively, beating the Zacks Consensus Estimate of 30 cents and $1.78. However, the quarterly and yearly results were down 53% and 43% from the respective year-ago earnings of 91 cents and $3.36 per share.
Peabody's revenues declined to $1.55 billion in the quarter from $1.89 billion a year ago. The company's revenue for 2009 declined 8% to $6.01 billion from $6.56 … [visit site to read more]

Goldman-Bulls Foresee Greener Pastures By July

Posted: 26 Jan 2010 12:31 PM PST

GS - Goldman Sachs Group, Inc. - Option traders assumed medium- and long-term bullish stances on the global investment banking and management firm today to position for a rebound in shares in the next six to twelve months. Shares edged 1.65% lower during the session to stand at $152.43 as of 2:45 pm (EDT). One optimistic individual sold 2,500 put options for a premium of $8.90 apiece at the July $140 strike in order to finance the purchase of 2,500 calls at the higher July $175 strike for … [visit site to read more]

Fed In Focus For Wednesday

Posted: 26 Jan 2010 12:13 PM PST

The Federal Reserve is meeting today and tomorrow, and tomorrow afternoon they will announce if they are going to change the Fed funds rate from its current range of 0 to 25 basis points. As the graphs below (from http://www.clevelandfed.org/research/data/fedfunds/index.cfm) show, not only is there almost no chance of them raising rates at this meeting, but even out to April it looks very unlikely that they will do so.
In my opinion, the market has this right; the Fed should keep interest rates … [visit site to read more]

Why Junk Is On Bond ETF Investors’ Minds

Posted: 26 Jan 2010 12:01 PM PST

In the second week of this month, companies with debt rated as junk issued a record $11.7 billion in bonds. The issues were met by eager investors looking for yield and feeling more at ease with risk. Is the frenzy sending early warning signs of an exchange traded fund (ETF) bubble?

Standard & Poor’s expects defaults among junk-rated companies to decline to 6.9% of total junk bond issuance by September, down from 10.9% in December. S&P reports that there are 151 U.S. companies with … [visit site to read more]

Buy Oil Stocks… No Matter What

Posted: 26 Jan 2010 12:00 PM PST

We really don't know as much about the oil market as we think we do.
There are many numbers out there, but most of these involve a lot of guesswork. For example, we really don't know just how much oil the world will need. The US Department of Energy says we'll need 106.6 million barrels a day by 2030, but how does it know? It can't know. The DOE can't know what the world will look like in 2030.
We don't really know how much oil we're discovering or how much will actually come to … [visit site to read more]

RF Misses On Higher Provisions

Posted: 26 Jan 2010 11:55 AM PST

Regions Financial (RF) reported a fourth quarter loss of $606.0 million or 51 cents per share, worse than the Zacks Consensus Estimate of a loss of 35 cents per share. Last year, the company reported a net loss of $244 million or a loss of 35 cents per share. Results suffered mainly due to increased loan loss provisioning, reflective of continued underlying economic weakness and the related loss implications to Regions’ loan portfolio restructuring. 
Regions reported a net interest … [visit site to read more]

Better Quarter For Sherwin-Williams

Posted: 26 Jan 2010 11:37 AM PST

Sherwin-Williams (SHW) has posted a profit of 69 cents per share (before special items) for the fourth quarter of 2009 compared to 60 cents per share (before special items) in the same quarter a year ago. The profit was higher than the Zacks Consensus Estimate of 53 cents per share.
Sherwin-Williams believed the appropriate steps taken by operating segments to control costs and improve efficiencies have led to the improvement in profit. However, the profit declined to $3.82 per share in 2009 … [visit site to read more]

My Best Performing ETF

Posted: 26 Jan 2010 11:34 AM PST

Sorry for the catchy headline, but the SPDR KBW Regional Bank ETF (symbol:KRE) has been my best performing ETF since I first highlighted the sector back on November 18, 2009. KRE is up about 16% since then while the S&P500 has remained flat.

I bring KRE up not because I want to pat myself on the back, but because CNBC’s Maria Bartiromo made this comment last Thursday as she was going to a commercial break and I paraphrase:

“When we come back from the break, we will discuss whether it is … [visit site to read more]

Baltimore-based Agora Financial Stepping Up Efforts To Aid Haiti’s Hospital Albert Schweitzer

Posted: 26 Jan 2010 11:23 AM PST

BALTIMORE, MD — Economic Research Firm Rallies Newsletter Subscribers for Haitian Hospital — Aid from across the U.S. and world is pouring in to support the relief efforts taking place in Haiti. Monetary support is going to the American Red Cross and other organizations, but the people of Haiti are looking to local hospitals for medical care. Unfortunately, many of those facilities have been damaged and their resources have been exhausted.
Agora Financial, a leading economic … [visit site to read more]

Forex Trading: AUDUSD Moves Back Up To Test The 100 Day MA

Posted: 26 Jan 2010 11:20 AM PST

 
The AUDUSD is back up looking to test the 100 day MA at the 0.9030 level.  The pair is also up testing the 61.8% retracement of the days range (chart below) and 50% retracement of the move up from the December low to the January high (chart above).  The high reached 90.26 and the price has moved back down. 

 I would expect sellers against the level with stops on a move back above.  Support comes in at 0.9010 and … [visit site to read more]

Baker Hughes Tops Ests, Net Sinks

Posted: 26 Jan 2010 11:18 AM PST

Baker Hughes Inc. (BHI), one of the largest oilfield service companies in the world, reported fourth-quarter 2009 earnings of 43 cents per share, compared to the Zacks Consensus Estimate of 34 cents and year-ago earnings of $1.49.
The substantial fall in earnings year-over-year was due to significantly lower activity levels, contraction in customer spending and price deterioration. Including one-time items, Baker Hughes' earnings were 27 cents per share.
Similar to Baker Hughes, sector … [visit site to read more]

Travelers Beats Zacks Estimate

Posted: 26 Jan 2010 11:17 AM PST

The Travelers Companies Inc. (TRV) has reported fourth quarter 2009 earnings of $2.12 per share, exceeding the Zacks Consensus Estimate of $1.49 per share. The results were driven by a significant increase in investment income and favorable prior years' reserve development. The company had earned $1.58 per share in the prior-year period.
Including the impact of realized investment gains, Travelers reported a net income of $1.3 billion or $2.36 per share, compared to $801 million or $1.35 … [visit site to read more]

Wall Street’s Stranglehold On The Economy Chokes Americans And The Future Of A Truly Democratic Republic

Posted: 26 Jan 2010 11:01 AM PST

America’s Founding Fathers were afraid of any concentration of power in the republic. They were particularly afraid that banking interests could hijack our fledgling democracy.

And yet today, 234 years later, our Founding Fathers’ worst fears have come true. Wall Street’s stranglehold on the economy threatens our very prosperity, and the future of a truly democratic republic.

It’s high time we address the truth about Wall Street’s tyranny and set a course for a more secure economic future … [visit site to read more]

Atheros Posts Healthy Growth

Posted: 26 Jan 2010 11:00 AM PST

Atheros Communications Inc. (ATHR) reported revenues of $185.7 million in the fourth quarter of 2009, up 19% sequentially and a growth of 89% year over year.
Management stated that both Mobile WLAN and Ethernet product lines demonstrated strong revenue growth in the reported quarter. The recent acquisition of Intellon expanded the company's technology portfolio to include leadership powerline communication products. Atheros now has a diverse product portfolio including seamless Wi-Fi, PLC … [visit site to read more]

The Go-Nowhere Housing Market Recovery

Posted: 26 Jan 2010 11:00 AM PST

US stocks bounced a little yesterday, despite the news that home sales tumbled a lot. Sales of existing US homes plunged 17% in December, the biggest decline since record-keeping began in 1968. This disheartening news item shocked economic forecasters, but hardly anyone else.
Most of us non-experts understand that folks without incomes or credit buy very few houses. But for some reason, the experts shun this intuitive logic. Instead, they study their econometric models, tweak their spreadsheets … [visit site to read more]

Corning Sees Higher Volumes

Posted: 26 Jan 2010 10:42 AM PST

Corning Inc. (GLW) reported fourth quarter 2009 results than beat the Zacks Consensus Estimate by 2 cents. However, shares are down since the earnings announcement, as the company continues to see flat pricing.
Revenue
Revenue of $1.53 billion was up 3.6% sequentially, 41.3% year over year and 5.7% over consensus expectations. The year-over-year increase was very encouraging and came after three consecutive quarters of decline. The sequential increase included a $33 million … [visit site to read more]

My Confrontation With Ben Bernanke: The Question He Refused To Answer

Posted: 26 Jan 2010 10:42 AM PST

Tuesday, January 26, 2010: Issue #1183
"The Federal Reserve continues to work actively to prepare for the possibility of financial stress." – Ben Bernanke, January 5, 2007
The Secret Service watched me warily as I approached Federal Reserve Chairman Ben Bernanke.
I didn't waste any time. After introducing myself, I showed him a copy of the talk he gave at the American Economic Association (AEA) meetings in January, 2007. I circled all the times he used the words "panic," … [visit site to read more]

Forex Trading: EURUSD Back Below The 200 Bar MA At 1.4093

Posted: 26 Jan 2010 10:29 AM PST

And now needs to move below the 100 bar MA in order to turn the bias back down for the pair.  The pair remains contained on the topside by the 1.4117 level (high only could reach 1.4106 on the last move). However, activity remains … [visit site to read more]

Video: Market Movers: BKS, GBP, LYV, WMT, TNB, AXP, MS, HSY

Posted: 26 Jan 2010 10:26 AM PST

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

U.S. Steel Underperforms

Posted: 26 Jan 2010 10:20 AM PST

Shares of United States Steel Corporation (X) tumbled more than 9% after the company recorded its fourth consecutive loss of $267 million or $1.86 per share in the fourth quarter of 2009. By contrast, the company had reported a net income of $2.90 million or $2.50 per share in the corresponding quarter of the previous year.
Excluding non-recurring charges, net loss totaled $1.65 per share, which was worse than the loss of $1.44 as per the Zacks Consensus Estimate. For the full year 2009, U.S. … [visit site to read more]

AquaKnox Closes In Atlanta

Posted: 26 Jan 2010 10:13 AM PST

AquaKnox Restaurant, the dinner-only restaurant serving seafood and steaks, has recently closed its operations in Atlanta. The restaurant, spanning 13,000 square feet, was opened in Nov 2007 and was one of the several restaurants on the Terminus Building owned and operated by Cousins Properties Inc. (CUZ).
 
AquaKnox is a restaurant brand owned by E-Brands Restaurants LLC, a multi concept restaurant group which owns and operates 17 restaurants – 6 Timpano Chophouose and Martini Bars, … [visit site to read more]

Video: Risk Aversion Climbs On Chinese Bank Speculation

Posted: 26 Jan 2010 10:09 AM PST

Risk aversion continued to climb this session following growing speculation that Chinese banks will soon limit their lending procedures. … [visit site to read more]

Is It Time For The Canadian Economy To Strike Out On Its Own?

Posted: 26 Jan 2010 10:01 AM PST

Recently the Bank of Canada reiterated its promise to keep borrowing rates unchanged through June 2010. While there are many valid arguments in favor of the decision and some against, an underlying theory is that the Bank of Canada is waiting for the US Federal Reserve to increase rates. While concern about what the Fed is going to do is acceptable, Canada doesn’t need to make its policy based on US actions.

Historically, the performances of the two economies are linked. The GDP growth … [visit site to read more]

If Bernanke Told The Truth…

Posted: 26 Jan 2010 10:00 AM PST

Ben Bernanke seems to be sailing to another term as the nation's chief central banker. Obama gave him a big push. When it looked like that might not be enough, Tim Geithner tried blackmail.
Failure to return Bernanke to the Fed could cause market instability, he told the Senators.
These poor dumbos…all of them. Larry Summers, Ben Bernanke, Tim Geither…Barack Obama…and all the House and the Senate (the only exception we know of is our old friend Ron Paul)…
…None of them has a clue. … [visit site to read more]

Textron Gets Army Contract

Posted: 26 Jan 2010 09:51 AM PST

Textron Inc.'s (TXT) subsidiary Textron Systems has been awarded a U.S. Army contract for software development, training and support for the future intelligence framework. This Distributed Common Ground System-Army (DCGS-A) Indefinite Delivery/Indefinite Quantity (IDIQ) contract has been awarded by the U.S. Army Intelligence, Electronic Warfare & Sensors (IEW&S) Program Executive Office (PEO) for a maximum amount of $48.5 million over a period of five years.
 
Textron … [visit site to read more]

Time For A Real Estate ETF?

Posted: 26 Jan 2010 09:41 AM PST

Historically, no portfolio was complete without a material allocation to real estate. Consistently high real returns and low correlations to stocks and bonds made it easy to overlook the out-of-whack fundamentals that ultimately led to an unprecedented collapse. But when real estate markets got a reality check in late 2008, many investors swore off the asset class for good. Or so they thought.
After losing their shirts in real estate investments during the financial crisis, many investors … [visit site to read more]

Forex Trading: EURUSD Tests The 200 Bar MA At The 1.4097. In Between The “Goal Posts”

Posted: 26 Jan 2010 09:33 AM PST

The 200 bar MA on the 5 minute chart comes in at the 1.4097 level.  The price has been trading between the "goal posts" as defined by the 100 and 200 bar MA on this chart ( blue line and green line in the chart above).  A move above the level will likely lead to  some further short covering in the pair  with 1.4117 acting as the next key target level.  This level is the 38.2% of the move up from the 2009 low of 1.2456 to the 2009 high of 1.5144.  Keep the … [visit site to read more]

DuPont Swings To Profit

Posted: 26 Jan 2010 09:33 AM PST

Chemical giant DuPont EI De Nemours & Co. (DD) reported fourth quarter 2009 earnings of 48 cents as opposed to a fourth quarter loss of 70 cents a year ago. Excluding non-recurring charges, DuPont earned 44 cents, beating the Zacks Consensus Estimate of 41 cents. Earnings were helped by significant cost cuts and lower raw material, energy and freight expenses.
Full-year 2009 earnings were $1.92 per share versus $2.20 in 2008. Excluding non-recurring charges, 2009 earnings were $2.03 per … [visit site to read more]

Duke Energy Buys Solar Project

Posted: 26 Jan 2010 09:28 AM PST

Duke Energy Corporation (DUK) has brought a commercial solar photovoltaic power project under development in San Antonio, Texas. The company purchased the project titled Blue Wing Solar Project from Juwi Solar Inc. based in Boulder, Colorado. The 14 MW project will consist of 214,500 ground-mounted First Solar Inc.'s (FSLR) thin film panels.
 
Duke Energy also got a 30-year power purchase agreement to sell all of the output from the solar farm and associated renewable energy credits … [visit site to read more]

Home Prices Edge Up

Posted: 26 Jan 2010 09:23 AM PST

In November, housing prices increased by 0.24% on a seasonally adjusted basis for both the Case Schiller (CS) Composite 10 (CS-10) and Composite 20 (CS-20) city indexes. The CS indexes are considered the gold standard of housing price indexes, and track actual repeat sales, and are thus not influenced by mix changes the way that median prices can be.
Over the last year, the CS-10 is down 4.5% while the CS-20 is down 5.3%. However, prices appear to have bottomed out for both measures in May and … [visit site to read more]

Swiss Franc: Continuation Of The Rebound

Posted: 26 Jan 2010 09:17 AM PST

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

McGraw-Hill Beats Zacks Estimates

Posted: 26 Jan 2010 09:04 AM PST

The McGraw-Hill Companies, Inc. (MHP), a publisher and provider of financial information and media services, recently reported better-than-expected fourth-quarter 2009 results on the heels of improved performance at S&P's Credit Market Services, and growth in higher education, professional and international markets. The quarter marks the first quarterly increase in both the top and bottom lines since the third-quarter 2007.
The quarterly earnings of 51 cents a share outdid the Zacks … [visit site to read more]

Sears’ Subsidiary To Lay Off

Posted: 26 Jan 2010 09:02 AM PST

Land's End, a subsidiary of Sears Holding Corporation (SHLD), has recently announced plans to lay off about 30 employees in Dodgeville, Wisconsin, and another 30 employees in the U.K. and Germany.
 
The move is aimed at streamlining the operations of the company amid stringent cost-cutting measures. The employees to be laid off hold diverse positions in the company, and do not include seasonal workers.
 
Based in Dodgeville, Wisconsin, Land's End is one of the world's largest … [visit site to read more]

The S&P 500 And The 85-Day Moving Average

Posted: 26 Jan 2010 09:01 AM PST

In the beginning of November, in Chart of the Week: Reverse Engineering a Critical Moving Average, I talked about the importance of being able to “develop customized moving averages that circumscribe past price action in order to get a better understanding of how current forces acting on stock prices compare to past forces.”

After looking at various ways to optimize moving averages that were critical support levels (at least retrospectively), I arrived at an 85 day moving average for … [visit site to read more]

FMC Wins Statoil Subsea Deal

Posted: 26 Jan 2010 08:49 AM PST

Oil drilling equipment maker FMC Technologies Inc. (FTI) announced the receipt of a $40 million contract from Norway-based oil and gas company StatoilHydro ASA (STO). The deal calls for FMC Technologies to design and provide subsea production systems to Statoil-operated Snorre field in the North Sea.
 
FMC Technologies said that the contract includes 10 production risers, tieback connectors and installation tools. The company expects delivery to begin in 2011 and continue through … [visit site to read more]

Picture Your Portfolio Bigger And Better With 3D Technology

Posted: 26 Jan 2010 08:48 AM PST

After three decades of experiments, false starts and broken promises, high quality, low cost, 3D TV seems to be right around the corner.
With the industry beginning to set the necessary standards to support the technology, movies, games, Blueray disc players and Sony ADR (SNE) PS3 consoles could hit store shelves by the middle of this year… all equipped with 3D capabilities.
Meanwhile, with recent smash-hit Avatar's success burned in their memories, content creators, distributors, … [visit site to read more]

Goldman Caps UK Compensation

Posted: 26 Jan 2010 08:26 AM PST

On Monday, anonymous sources at Forbes and Reuters reported that Goldman Sachs Group Inc. (GS) has finally capped the compensation of its 100 partners in the UK at £1 million ($1.6 million) each. The ceiling on total compensation comprises all salaries and bonuses.
 
The decision of restricted compensation for its 5,500 UK staffers was taken by Goldman following the announcement of the Britain’s 50% tax on bonuses exceeding £25,000 ($40,810), in Dec 2009. Hence, Goldman countered the … [visit site to read more]

Australian Dollar: Bounce

Posted: 26 Jan 2010 08:18 AM PST

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

Canadian Dollar: Continuation Of The Rebound

Posted: 26 Jan 2010 08:18 AM PST

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

Japanese Yen: The Upside Prevails

Posted: 26 Jan 2010 08:17 AM PST

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

British Pound: The Upside Prevails

Posted: 26 Jan 2010 08:17 AM PST

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

Euro: Bounce

Posted: 26 Jan 2010 08:17 AM PST

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

Traders Not Souring On Sugar

Posted: 26 Jan 2010 08:17 AM PST

Fundamentals
Sugar futures are higher in overnight trading, on expectations that demand for the sweetener will remain robust for the foreseeable future. The fact that India has had a relatively dry monsoon season indicates that the world’s largest user of Sugar will continue to ramp-up imports to deal with demand and output shortfalls. Brazil is also experiencing weather concerns on the other end of the spectrum, with too much rain possibly cutting output. Buyers are also racing to secure … [visit site to read more]

VMware Tops, Offers Upbeat Guidance

Posted: 26 Jan 2010 08:10 AM PST

VMware Inc. (VMW) reported fourth quarter results after the closing bell on Monday. The company posted a 49.4% decline on GAAP net income to $56.4 million from $111.5 million in the year-ago period. Excluding certain non-recurring items, adjusted earnings per share came in at 16 cents, beating the Zacks Consensus Estimate by 2 cents.
 
VMware, majority owned by EMC Corp. (EMC), is a provider of virtualization solutions from the desktop to the data center. The company's … [visit site to read more]

Commodity Currencies Take A Hit

Posted: 26 Jan 2010 08:08 AM PST

Front and center this morning, we have the dollar back in the catbird's seat, as the risk aversion campers were out again late yesterday and overnight. The euro (EUR) is one whole figure lower than yesterday morning, as it goes back and forth around the 1.41 figure. The risk aversion campers came out of the woodwork again late yesterday when S&P cut Japan's outlook to negative, citing diminishing flexibility to cope with the nation's "swelling debt load." Hmmm… HEY! S&P! … [visit site to read more]

Video: IMF Statements Play No Role In The Markets

Posted: 26 Jan 2010 08:04 AM PST

According to floor trader Alan Valdes, today’s IMF statement has had little to no influence on the US markets at all. … [visit site to read more]

What Does Market Breadth Say About Where Stocks Are Heading?

Posted: 26 Jan 2010 08:01 AM PST

“Where breadth goes, the market usually follows,” goes an old market saying. Breadth indicators are useful tools to assess the inner workings of the market’s rallies or corrections, and are used to identify strength or weakness behind market moves, i.e. to assess how the bulls and the bears are exerting themselves.
First, a quick review of the stock market scoreboard. The MSCI World Index and the MSCI Emerging Markets Index have declined by 4,8% and 6,7% respectively since the highs of … [visit site to read more]

Tellabs Exceeds Expectations

Posted: 26 Jan 2010 07:56 AM PST

Tellabs Inc. (TLAB) declared its fourth quarter 2009 financial results today. Supported by huge cash generation from operations, management has decided to pay a quarterly dividend of 2 cents per share for the first time in the company's history. The first dividend will be payable on Feb 26, 2010.
Total revenues of $389.3 million were down 4.7% on a year-over-year basis. This was almost at par with the Zacks Consensus Estimate of $390 million. The year-over-year revenue decline was a result … [visit site to read more]

Video: Verizon Communications Posts 4Q Loss

Posted: 26 Jan 2010 07:46 AM PST

Due to heavy layoffs in its shrinking landline business, Verizon Communications Incorporated (VZ) posted a heavy loss during the 4Q. … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: JNJ, DD, TRV

Posted: 26 Jan 2010 07:42 AM PST

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

Forex Trading: USDJPY Falls After Testing Resistance. Longer Term Support At The 89.28 Level Below.

Posted: 26 Jan 2010 07:38 AM PST

The USDJPY has moved lower after testing the 100 bar MA at the 89.74 level. The price has tested this moving average on a number of occasions in NY trade today.  As a result, the level will be watched going forward with a break looking toward a test of the 200 bar MA on the same chart as the next target.
On the downside, the low for the day at the 89.37 is the next target level to get through and 50% midpoint support at the 89.28 level looms below that level.  We should see buyers … [visit site to read more]

ABC Surpasses, Ups Outlook

Posted: 26 Jan 2010 07:35 AM PST

This morning, AmerisourceBergen Corp. (ABC) posted first quarter fiscal 2010 earnings of 52 cents per share, beating the Zacks Consensus Estimate by 6 cents. Earnings increased 44% from the year-ago period. Performance was driven by strong revenues, successful generic drug launches, and continued expense management.
 
Total revenues for the quarter increased 11.5% to $19.3 billion. This was attributable to a 12.9% growth in AmerisourceBergen Drug Corp. revenues and a 7.7% rise in … [visit site to read more]

To Start Your Day…1/26/2010

Posted: 26 Jan 2010 07:24 AM PST

I am fortunate enough to have a good friend, TL, who sends me his excellently prepared “Morning News Notes” on a daily basis. He has graciously allowed me to reproduce them on the blog, and I hope to include this on a daily basis.

Just click on the link or the coffee mug below.

“Morning News Notes”: January 26, … [visit site to read more]

EMC Beats, Guides Higher

Posted: 26 Jan 2010 07:17 AM PST

EMC Corp.'s (EMC) fourth-quarter 2009 results exceeded the Zacks Consensus Estimate as well as the company's own expectations.
 
EMC reported record revenues for the quarter, growing year over year after four consecutive quarters of year-over-year declines, driven by cost-cutting and a recovery in corporate IT spending. The improvement in results is mainly attributable to the continued focus on technology, increased execution efforts and operational efficiencies.
 
Revenues of … [visit site to read more]

J&J Beats, Guidance Disappoints

Posted: 26 Jan 2010 07:15 AM PST

Johnson & Johnson (JNJ) reported fourth quarter earnings of 79 cents, which was impacted by a restructuring charge. However, excluding extraordinary items, the company's earnings per share came in at $1.02, surpassing the Zacks Consensus Estimate of 97 cents and 94 cents from the year-ago period.

The company reported revenues of $16.6 billion, an increase of 9% compared to the fourth quarter of 2008. Operational factors and foreign exchange movement contributed equally to the growth. … [visit site to read more]

Forex Trading: GBPUSD Squeezes Higher To Resistance Level. 1.6182 Comes More Into Focus

Posted: 26 Jan 2010 07:13 AM PST

The GBPUSD has squeezed higher to test the 38.2% retracement and th 100 bar MA on the 5 minute chart.  A move above targets the 1.6182 level where the 200 day MA is found.  This is key resistance. On the downside, the move above the 1.6144 level now makes that level the support level to get through for the sellers up here.   We will be watching that level on the … [visit site to read more]

Video: Chinese Lending Worries Hurt Asian Markets

Posted: 26 Jan 2010 07:08 AM PST

The major Asian/Pacific markets were on the downside this session following growing speculation that Chinese banks will soon limit lending practices. … [visit site to read more]

Philips Beats Estimates

Posted: 26 Jan 2010 07:00 AM PST

Koninklijke Philips Electronics N.V. (PHG) reported earnings per share of 39 cents, beating the Zacks Consensus Estimate of 18 cents for the fourth quarter of 2009. Revenues were $10.727 billion for the quarter.
Comparable sales improved for a third consecutive quarter, returning to a level at par with the fourth quarter of 2008. The rebound in emerging markets where sales were up by 8% and a solid improvement in Western Europe were tempered by weaker albeit sequentially improving sales … [visit site to read more]

Verizon Earnings A Penny Shy

Posted: 26 Jan 2010 06:58 AM PST

US wireless kingpin Verizon (VZ) reported operating results for fourth-quarter 2009 with adjusted (non-GAAP) earnings per share (EPS) of 54 cents, falling short of the Zacks Consensus Estimate by a penny while declining from 61 cents reported a year-ago. The company’s shares fell 78 cents or 2.5% to $29.90 in early trading Tuesday.

Adjusted EPS excludes one-time severance, pension and benefit charges associated with workforce reduction, merger integration and acquisition costs and expenses … [visit site to read more]

Key Price Levels: EEM

Posted: 26 Jan 2010 06:51 AM PST

Figure 1 is a weekly chart of the i-Shares MSCI Emerging Market Index Fund. This is the third largest ETF in the market with $39 billion of assets.

Figure 1. EEM/ weekly

Before breaking down EEM, let me set up the chart. The pink labeled price bars are negative divergence bars between price and an oscillator that measures price, and as we know, a cluster of these negative divergence bars is consistent with waning price momentum. The red dots are key price points, which are points where … [visit site to read more]

Zions Loss Slims, Beats Estimates

Posted: 26 Jan 2010 06:45 AM PST

On Monday, Zions Bancorporation (ZION) reported a fourth quarter 2009 net loss of $176.5 million or $1.26 per share, compared to a net loss of $179.5 million or $1.41 in the prior quarter and a net income of $498.1 million or $4.37 in the prior-year quarter. Results were substantially lower than the Zacks Consensus Estimated loss of $1.66. 

Results were helped by declining loan loss provision and net loan charge-offs, increase in average non-interest bearing demand deposits and strong … [visit site to read more]

Japan ETFs In Focus As S&P Downgrade Looms

Posted: 26 Jan 2010 06:33 AM PST

In a generally strong global economic recovery, Japan has been one of the weakest links, struggling to gain any sort of traction while battling deflation and ineffective policies from a government elected with hope for great changes. An already tough road back to sustainable economic growth got even tougher on Tuesday when Standard & Poor's Ratings Services threatened to cut Japan's government debt rating as the world's second largest economy struggles to address deteriorating public … [visit site to read more]

Weatherford Misses Badly

Posted: 26 Jan 2010 06:30 AM PST

Weatherford International Ltd (WFT), a leading oilfield services company, reported a significantly weaker-than-expected fourth-quarter 2009 recurring earnings of 2 cents per diluted share, compared to the Zacks Consensus Estimate of 12 cents and year-ago earnings of 53 cents. Including one-time charges, the loss was 4 cents per share. Earnings for full year 2009 were 50 cents per share versus $2.00 in 2008. 

Unlike Weatherford, sector leaders Schlumberger Ltd (SLB) and Halliburton … [visit site to read more]

Forex Trading: EURUSD Breaks To New Lows. Does It Have The Downward Momentum?

Posted: 26 Jan 2010 06:26 AM PST

The EURUSD has broken below the low floor at the 1.4066 level reaching a low at 1.4054 but has pushed back toward the break level (1.4066 - SEE PRIOR POST).  The quick reversal is not necessarily the best reaction for the bears.  However, risk remains up to the 100 bar MA on the 5 minute chart which comes in at the 1.4085 level (and moving lower - blue line in the chart above).   We should see sellers against the level with stops above the moving … [visit site to read more]

ERIC’s Quarterly Profit Falls 82%

Posted: 26 Jan 2010 06:15 AM PST

LM Ericsson Telephone Company (ERIC) reported 82% year-over-year drop in fourth quarter 2009 net income at SEK 0.7 billion ($100 million) on revenues of SEK 58.3 billion ($8.3 billion). 

Networks’ sales in the quarter declined by 16% year-over-year. Full year sales declined by 3%. The mobile infrastructure market share was maintained well in 2009. During the second half of 2009, Networks’ sales were impacted by reduced operator spending in a number of markets. 

Professional … [visit site to read more]

TI Beats, Lead Times Stretch

Posted: 26 Jan 2010 06:00 AM PST

Texas Instruments (TXN) reported fourth quarter results that beat the Zacks Consensus Estimate by 5 cents. Revenue was in line with the consensus, exceeding by 0.8%. 

Revenue 
Revenue of $3.01 billion was up 4.3% sequentially, up 20.6% year over year and at the high-end of the guided range of down 3.5% to up 4.9% sequentially. There have been no year-over-year revenue increases since the first quarter of 2008. The sequential trend is also encouraging, as the December quarter is … [visit site to read more]

Forex Trading: GBPUSD Moves Back. Holds The 1.6144 Level Above

Posted: 26 Jan 2010 05:58 AM PST

 
As per the prior post (see post by clicking here), the price tested the 1.6144 resistance target and reversed. The pair is back down, looking to test the 1.6101 low for the day. A break below will target lower levels with the 1.6088 low for the week and the 1.6076 low from last week as the obvious next targets. Longer term a more substantial move lower can not be ruled out given the break back below the 200 day moving average … [visit site to read more]

Amgen Misses But Guides Higher

Posted: 26 Jan 2010 05:45 AM PST

Amgen (AMGN) reported fourth quarter earnings per share of $1.03, well below the Zacks Consensus Estimate of $1.11 and a cent below the year-ago earnings of $1.04. Full year earnings came in at $4.83, 8 cents below the Zacks Consensus Estimate but 7.8% above the year-ago earnings of $4.48. 

While fourth quarter total revenues increased 2% to $3,809 million, revenues for the full year declined 2% to $14.6 billion. 

Total product revenues increased 2% to $3,743 million in the … [visit site to read more]

Forex Trading: EURUSD Tests Support At 1.4066. The 1.4029 Is The 2010 Low.

Posted: 26 Jan 2010 05:32 AM PST

The EURUSD is testing support at the 1.4066 level. The level was a low price on January 21st and January 22nd.  A move below will look toward the 2010 low of 1.4029 for the pair.  Below that level is support at 1.4000 to 1.4007.
The pairs move down today, is a break from the corrective phase that took the pair up to the 38.2% retracement resistance of the move down from the January 19th high to low range today.  The level came in at the 1.4176. The high today reached 1.4178 … [visit site to read more]

Apple Beats On All Fronts

Posted: 26 Jan 2010 05:30 AM PST

Apple Inc.'s (AAPL) first-quarter of 2010 earnings, margins and revenues were much better than expected. The results were a record in the company's history and surpassed expectations on all fronts. Apple's share price rose 2.69% and closed at $203.07 and increased 1% after hours. AAPL posted impressive results fueled by strong Mac and iPhone sales. We believe the company will continue to post solid results due to continued resurgence of its Mac computer line, increased sale of iPods … [visit site to read more]

Stock Buy: GeoResources, Inc.

Posted: 25 Jan 2010 09:00 PM PST

GeoResources, Inc. (GEOI) recently hit a new 52-week high on rising estimates and the company’s strong Q3 results from early November.
Company Description
GeoResources, Inc. operates as an independent oil and gas company involved in the production and exploration of crude and natural gas in Texas, Louisiana, Oklahoma, Montana and North Dakota. The company was founded in 2004 and has a market cap of $216 million.
Third-Quarter Results
With energy prices remaining in elevated territory, … [visit site to read more]

Stock Buy: Xilinx Inc.

Posted: 25 Jan 2010 09:00 PM PST

Xilinx Inc. (XLNX) recently reported record fiscal third-quarter sales of $513.13 million, a 24% sequential increase and a 12% jump year-over-year. Earnings came in at 40 cents per share, eclipsing the Zacks Consensus Estimate by 14%.
Company Description
Xilinx Inc. designs, develops and markets programmable logic solutions. It offers advanced integrated circuits in the form of programmable logic devices (PLDs).
Record Results and Strong Momentum
The company recently reported record … [visit site to read more]
posted by

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)