Jan 13, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

The Second Shoe Is About To Drop On The Banks

Posted: 13 Jan 2010 12:01 PM PST

“I live in luxury and I haven’t made a mortgage payment in almost two years,” Don bragged. He sipped his chardonnay, leaned against the country club’s bar, and shared with me the story of his real estate prowess…

“I paid $3.4 million for the house in 2006, and it was worth every penny at the time. It’s 6,700 square feet with a pool and a one- acre lot. I’m on the hill overlooking the fourth fairway, and I can see all the way to [the next city] from my bedroom window,” Don … [visit site to read more]


China Sneezes, World Gets Sick

Posted: 13 Jan 2010 11:00 AM PST

"When China sneezes," the new saying goes, "the world catches cold." It used to be the United States in the role of the sniffly grump, but events over the last 24 hours are yet another sign of world power shifting eastward.
The People's Bank of China tightened reserve requirements for its member banks yesterday. We gave you a heads-up the day before Thanksgiving this was in the works. Now it's a done deal.
The "consensus" view is that China's aggressive stimulus is coming to … [visit site to read more]

Video: GM Ready To Halt Hummer Sales

Posted: 13 Jan 2010 10:59 AM PST

General Motors is ready to halt production of its Hummer brand next week until the brand sale to Sichuan Tengzhong is finalized. … [visit site to read more]

Starwood Plans 12,000 New Jobs

Posted: 13 Jan 2010 10:58 AM PST

Starwood Hotels & Resorts Worldwide Inc. (HOT) plans to add over 12,000 jobs in 2010. The news comes at a time when many companies are still shedding costs through job cuts. Additionally, the U.S. Bureau of Labor Statistics reported last Friday that the unemployment rate remained high at 10% in Dec. 2009, with over 15.3 million in the U.S. population having no jobs.
Approximately half of these new jobs will be in U.S. markets, ranging from New York to California. These jobs will include … [visit site to read more]

Fitch: US Must Make “Difficult Decisions” On “Spending And Tax”

Posted: 13 Jan 2010 10:58 AM PST

Credit rating agency Fitch Ratings is indicating that it sees the US on the wrong path when it comes to spending and taxes. From The Telegraph, here's a quote from the head of its sovereign ratings division, Brian Coulton:
"'Difficult decisions will have to be made regarding spending and tax to underpin market confidence in the long-run sustainability of public finances. In the absence of measures to reduce the budget deficit over the next three to five years, government indebtedness will … [visit site to read more]

Video: Market Movers: BIDU, GOOG, OEH, DIS, TWX, CBS, HR. VTR

Posted: 13 Jan 2010 10:57 AM PST

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

Video: Front Month Crude Slides On Inventory

Posted: 13 Jan 2010 10:43 AM PST

Front month crude prices slid this session following a larger-than-expected build in crude stockpiles for last week. … [visit site to read more]

Video: Risk Aversion Eases On Global Economic Growth

Posted: 13 Jan 2010 10:41 AM PST

Risk aversion continued to ease this session following an improvement in global economic outlook. … [visit site to read more]

H-P Pays CEO $24M For 2009

Posted: 13 Jan 2010 10:40 AM PST

At a time when several other companies have drastically reduced their top executive and CEO compensations, Hewlett-Packard (HPQ) has paid $24.0 million as compensation for fiscal year 2009 to CEO Mark Hurd. As per company records, this is a 30% reduction from the prior year figure.
The main reason for the reduction is a much lower bonus for 2009, as the technology major went through a tough year, with companies lowering their IT spending budgets to drastically lower levels. Hurd received a … [visit site to read more]

MetLife To Sell Taiwan Business

Posted: 13 Jan 2010 10:23 AM PST

Taking a step to shore up its finances post the global financial crisis, MetLife Inc. (MET) has recently decided to vend its insurance business in Taiwan. On Tuesday, Taiwan Life Insurance Co. offered $122 million to buy MetLife's insurance wing in Taiwan. However, the final decision by MetLife is expected in a couple of days.
Incidentally, Taiwan Life Insurance is not the first one to approach MetLife. Formerly, Waterland Financial Holdings Co., Hontai Life, Chinatrust Financial Holding … [visit site to read more]

Bank ETFs In Focus Ahead Of Earnings, Bonuses

Posted: 13 Jan 2010 10:19 AM PST

The banking industry has been on a wild ride over the past few years, as the unprecedented economic environment of 2008 resulted in a wave bankruptcies and bailouts that many figured would forever change the business. But less than two years removed from the disaster, many financial institutions have staged an impressive return to glory, delivering record profits and approving massive bonuses that have reignited the "Wall Street vs. Main Street" debate. Despite its best efforts to sidestep … [visit site to read more]

Passing Grades From The Stock Market Schoolteacher

Posted: 13 Jan 2010 10:10 AM PST

Like an inner-city schoolteacher, the stock market has been handing out high marks to the economy…just for showing up. Unfortunately, the economy never scores a passing grade on any of its achievement tests.
Maybe it doesn't matter that this F-student strolls home from Wall Street each day with an A+ and a smiley-face stamped on his homework. But we do worry that the stock market might begin handing out grades the economy actually DESERVES. So we would not be a very aggressive buyer of US … [visit site to read more]

Jacobs Wins $29 Million Contract

Posted: 13 Jan 2010 10:05 AM PST

Jacobs Engineering Group Inc. (JEC) won a task order contract from the Information Systems and Infrastructure Product Group at Marine Corps Systems Command in Quantico, VA. The order's value is estimated at $9.7 million through December 2010, with an option for extension of two more years, bringing the total potential value to $29 million.
 
According to the contract, Jacobs will provide technical services at Marine Corps Major Commands and at bases and stations in the United States … [visit site to read more]

Wall Street Scrambles Its “Contango Convoy” To Capitalize On Higher Oil Demand

Posted: 13 Jan 2010 10:01 AM PST

A 26-mile-long line of idled oil tankers, enough to blockade the English Channel, are firing up their engines and jockeying for position in a race to cash in on the bone-chilling deep-freeze plaguing the North America, Europe, and Asia.

The supertankers, each of which can hold over 2 million barrels of oil, are steaming “all ahead full” to deliver their stores of crude, heating oil and other distillates to the United States.

Their clients - which include several huge Wall Street … [visit site to read more]

Forex Trading: GBPUSD Tests 100 Day MA And Comes Off.

Posted: 13 Jan 2010 09:50 AM PST

The 100 day MA was tested at the 1.6309 level (see prior post). The high reached 1.6305 and came off, THe price moved down to the old trendline support from the bull flag and bounced.  This was the second correction to this line.  The price is now back above the 100 bar MA on the 5 minute chart as the market struggles with the key MA resistance and an underlying demand to buy.  I would continue to watch the 100 bar MA on the 5 minute chart. That level comes in a the 1.6273 … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: GOOG, KFT

Posted: 13 Jan 2010 09:47 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]

Preliminary Data From Nektar

Posted: 13 Jan 2010 09:45 AM PST

Recently, Nektar Therapeutics (NKTR) announced preliminary results from the first stage of phase II study of its experimental ovarian cancer drug, NKTR-102. It has been observed that the drug, tested in women with platinum-resistant ovarian cancer, achieved an overall response rate of 32% and 35% in two dosage schedules – once every 14 days and once every 21 days. Common side effects such as diarrhea and neutropenia were observed during the trial.
Nektar announced that enrollment of … [visit site to read more]

Newfield To Buy TXCO Assets

Posted: 13 Jan 2010 09:31 AM PST

Newfield Exploration Company (NFX) and Anadarko Petroleum Corporation (APC) have joined hands for the purchase of properties in the Maverick Basin of Southwest Texas from TXCO Resources Inc. (TXCO). The total consideration for the deal is nearly $310 million.
 
The final amount is expected to be determined at the closing of the deal during mid-February 2010. The transaction is subject to the bankruptcy court's approval. San Antonio-based TXCO Resources, an oil and gas exploration … [visit site to read more]

ProLogis Leases Strong

Posted: 13 Jan 2010 09:15 AM PST

ProLogis (PLD), a leading global provider of distribution facilities, signed 56 new leases and leased about 4.0 million square feet of its worldwide development portfolio during the fourth quarter of 2009. The static global development portfolio (development portfolio properties in place) was 68.2% leased at year-end 2009, which was at the higher end of its earlier target of 60%−70%.
 
About 381,000 square feet were leased to Hitachi Transport System Ltd., a leading third-party … [visit site to read more]

Update: New, Expanded List Of Banks Where Your Money Is Not Safe

Posted: 13 Jan 2010 09:05 AM PST

We last posted an unofficial list of troubled banks back in October of 2009. Since then, the list has grown to 576 financial institutions with aggregate assets of over $300 billion. Banks have been both added and removed so it's definitely worth checking out the updated list.
As we wrote in October:
"There are simply too many banking options out there to keep your hard-earned money in a bank that's already having problems. Several recently failed banks were highlighted before going under, … [visit site to read more]

Genzyme’s Revenues Decline

Posted: 13 Jan 2010 09:01 AM PST

Genzyme Corp. (GENZ) recently reported preliminary revenues for the fourth quarter and full year ended December 31, 2009. With the company facing manufacturing problems from mid 2009, we were not surprised to see fourth quarter revenues decline 8% to $1.08 billion. Full year revenues declined 2% to $4.5 billion.
Genzyme's Genetic Diseases segment was the most adversely affected by the temporary shutdown of the company's Allston Landing facility in June 2009. The production and supply of … [visit site to read more]

Forex Trading: USDCAD Testing Key Support At The 1.0291 Level

Posted: 13 Jan 2010 08:52 AM PST

The 1.0291 was a floor on the 6th and 7th of January. Then became a ceiling on the 11th, and the market is now back down testing this important level.  The market should find support against the level, with resistance now at 1.0335 where the 100 hour MA is currently found (blue line in the chart … [visit site to read more]

DDR Updates Guidance For 2009

Posted: 13 Jan 2010 08:47 AM PST

Developers Diversified Realty Corporation (DDR), a leading real estate investment trust (REIT), recently provided an update on its 2009 accomplishments along with an outlook for 2010. The company expects 2010 FFO (funds from operations) to range between $1.05 and $1.15 per share. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
 
Despite the challenging … [visit site to read more]

US Trade Deficit Widens

Posted: 13 Jan 2010 08:46 AM PST

The price of oil has dropped from $83.18 a week ago, to $79.80 this morning… Why did this spoil my day? Well, like Lloyd Bridges in Airplane, I must have picked a bad day to fill my gas tank – the other day, when oil was so high!
Well… Even with oil backing off, the Canadian dollar/loonie (CAD), remains well bid this morning… That's strange… But, in the whole scheme of things, not too strange… I mean, not Tiny Tim strange… Just strange enough to make someone think for a moment … [visit site to read more]

Legends Are Born Behind This Closed-Door Healthcare Conference

Posted: 13 Jan 2010 08:32 AM PST

Wednesday, January 13, 2010: Issue #1174
Cautiously optimistic. Very cautiously optimistic.
That's how I'd describe the overall mood at this year's JP Morgan Healthcare Conference in San Francisco.
While folks are certainly in a better frame of mind than this time last year (when it seemed like we were in the middle of financial Armageddon), they're still a bit gun-shy.
But with the huge stock market rally and partnership/financing deals available again, the tone is more upbeat. As … [visit site to read more]

Big Lots Raises Outlook

Posted: 13 Jan 2010 08:29 AM PST

Big Lots Inc. (BIG) recently raised its fourth quarter 2009 guidance encouraged by better-than-expected sales results. By categories, electronics, furniture and hardlines experienced an improvement in demand.  
 
The Columbus, Ohio based company Big Lots now expects quarterly comparable-store sales to increase in the range of 3.5% to 4.5%, up from 1.5% to 2.5% forecasted earlier. The shares of Big Lots rose 1.8% or 52 cents to close at $30.21 on Tuesday.
 
The company's … [visit site to read more]

Orange/T-Mobile Seeks Approval

Posted: 13 Jan 2010 08:15 AM PST

European telecom giants Deutsche Telekom (DT) and France Telecom (FTE) have reportedly filed their appeals to the European Commission for approval of the proposed merger of their UK units in a 50-50 joint venture. 

The European Commission will review the merger proposal and is expected to provide an initial ruling in February 2010. If eventually approved, Deutsche Telekom's British subsidiary T-mobile UK will combine with France Telecom's Orange UK in a historic merger (expected to … [visit site to read more]

SIRIUS XM To Underperform

Posted: 13 Jan 2010 08:00 AM PST

We downgrade our recommendation for SIRIUS XM Radio Inc. (SIRI) to Underperform following the emergence of alternative technology of commercial-free Internet radio and extremely poor financial condition of the company. According to our view, SIRIUS XM's business model is going to face serious competition from the upcoming subscription-free Internet radio programming which will have the facility of automatically getting customized to one’s personal tastes. 

Despite being a virtual … [visit site to read more]

Video: MetroPCS Receives A Boost

Posted: 13 Jan 2010 07:58 AM PST

MetroPCS (PCS) receives a rating upgrade from Deutsche Bank after favoring its new pricing plans. … [visit site to read more]

Shareholders - Not Obama - Should Be Objecting To Big Bank Bonuses

Posted: 13 Jan 2010 07:45 AM PST

Wall Street bonuses are back in the news again, as the Obama administration scores cheap political points by bashing bankers.

Wall Street’s investment-banking houses correctly claim that they are paying out a much-lower-than-usual percentage of their profits in the form of bonuses - in some cases, less than 50%.

So what’s the problem?

After all, Wall Street earned the money legitimately (aided and abetted by foolishly lax monetary policy, which will come back to bite us). So these … [visit site to read more]

Aetna’s Outlook Disappoints

Posted: 13 Jan 2010 07:45 AM PST

In a major disappointment, Aetna (AET) lowered its outlook for 2010, which sent its shares down by 6.51% on Tuesday to close at $30.61. Aetna expects its 2010 operating earnings to be lower than its 2009 earnings, expected to come in at $2.76 per share. The lower than expected forecast is primarily based on the apprehension that companies might cut back plan benefits to keep costs under control. In addition, the possibility of lower medical reimbursements made Aetna slash its outlook. We are … [visit site to read more]

Biogen’s Tysabri A Blockbuster!

Posted: 13 Jan 2010 07:30 AM PST

Biogen Idec Inc. (BIIB) recently announced that its multiple sclerosis (MS) drug Tysabri achieved blockbuster status in 2009. Sales of the drug, which is approved for relapsing forms of MS in the US and for relapsing-remitting MS in the EU, achieved $1 billion in sales in 2009. Tysabri is marketed by Biogen in collaboration with Elan Corp. (ELN).
 
In addition to reporting Tysabri sales, Biogen provided an update on other products and pipeline candidates. The company stated that it … [visit site to read more]

Video: Asian Markets Mostly In The Red

Posted: 13 Jan 2010 07:26 AM PST

Once again, a slide in commodity prices paved the way for a decline in commodity-related stocks while pushing most markets on the downside. … [visit site to read more]

Forex Trading: EURUSD Can’t Hold Support And Falls As London/Europe Look To Exit For The Day

Posted: 13 Jan 2010 07:25 AM PST

The 200 bar MA on the EURUSD could not hold support (correction took the price up to the 1.4509 level only) and the price quickly fell. New lows are being made and the market seems caught long as London and Europe look to exit for the day.  The lows over the last few days now come back into focus. They are centered at the 1.4457/63 level.  The 100 hour MA is also moving higher and a test of it cannot be ruled out 1.4446.
On the topside, the 1.4504 will be watched now as the … [visit site to read more]

Strong AMMD Preliminary Report

Posted: 13 Jan 2010 07:15 AM PST

American Medical Systems Holdings, Inc. (AMMD) reported strong preliminary revenues for the fourth quarter and full fiscal 2009. For the fourth quarter, total revenues were $146.0 million, an increase of 9% year over year. Excluding a favorable foreign exchange translation (FX), net sales increased 6.1% year over year. Total revenues in the fourth quarter were ahead of American Medical's previous guidance of $136 million to $142 million.
 
For full fiscal 2009, American Medical … [visit site to read more]

Forex Trading: GBPUSD Holding It’s Own As It Tests Intraday Support

Posted: 13 Jan 2010 07:07 AM PST

The GBPUSD is holding it's own as the US dollar corrects off the low levels reached earlier today.The market pair moved briefly below the 100 bar MA but move back higher rather quickly.  The last 30 minutes or so has seen the market hold the MA level which is currently at the1.6257 level.  A break through the 1.6272 level (trendline) should increase the bullish sentiment but until then the market continues in the consoldative range. 
A break of the 100 bar MA would target the … [visit site to read more]

Forex Trading: EURUSD Corrects Off The Test Of The Retracement Resistance

Posted: 13 Jan 2010 06:38 AM PST

As per the earlier post, the EURUSD tested the 38.2% retracement level and found profit taking sellers (at 1.4571 area).  The correction did stall near the 1.4545 level which was the low from yesterday, but gathered downward momentum when the 100 bar MA on the 5 minute chart was breached. 

Now, the price has stalled around the 200 bar MA at the 1.4504 level after an exhaustion fall to a low of 1.4591.  The market closed at 1.4585 yesterday so I would expect some buying … [visit site to read more]

A Better-Than-the-Real-Thing Back Door Into A Top Hedge Fund

Posted: 13 Jan 2010 05:00 AM PST

By Dr. Steve Sjuggerud

Usually, only the super-rich can get into hedge funds…

But I found a “backdoor” way we can invest with one of the best-performing hedge-fund managers out there.

It offers better terms than the real-deal fund and it trades at a big discount. If you’re ready to do a little homework, I think it’s an enormous deal. Let me show you why…

Meet fund manager Daniel Loeb… Wall Street’s “Merchant of Venom.”

“Daniel Loeb has positioned himself as Wall Street’s merchant of … [visit site to read more]

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