Jan 20, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

Increased “Risk Of Secession” In European Union

Posted: 20 Jan 2010 01:15 PM PST

Ambrose Evans-Pritchard has recently pulled some noteworthy quotes from the European Central Bank's December 2009 guide on expulsion from the EU, such as, "recent developments have, perhaps, increased the risk of secession…"
The new document is part of a legal working paper series and is entitled, "Withdrawal and expulsion from the EU and EMU: some reflections" (PDF). With the ongoing economic upheaval throughout the industrialized world, and especially in the PIGS (Portugal, Italy, … [visit site to read more]


ETFs To Play The Major US Stock Indices

Posted: 20 Jan 2010 01:01 PM PST

You always hear news commentators talking about “the market.” But what you may not realize is that what they are really talking about is an index, and there are exchange traded funds (ETFs) that track them.

Investors usually use indexes to track the performance of the stock market, according to Investopedia. An index is a statistical measure of changes in a portfolio of stocks that represent an overall market, and most indexes weigh companies based on their market capitalization.

The main … [visit site to read more]

Meredith Circulating In Indonesia

Posted: 20 Jan 2010 01:00 PM PST

Meredith Corporation (MDP), a media and marketing company, recently declared that it has entered into a licensing deal with Kompas Gramedia Magazine Group to publish and distribute More magazines in Indonesia. This marks the twentieth licensing agreement of the company for its popular media brands.
Des Moines, Iowa based company, Meredith said an edition of More, published in the local language of Bahasa will be on the newsstands in major Indonesian cities by July 2010.
The deal is accretive … [visit site to read more]

Alcon Strengthens Pipeline

Posted: 20 Jan 2010 12:46 PM PST

Alcon, Inc. (ACL) continues to work on expanding its product portfolio. The company recently entered into an agreement with Sirion Therapeutics, Inc. for the purchase of rights to two topical eye care products, Durezol and Zirgan. Both products have been approved by the US Food and Drug Administration (FDA). The deal is scheduled to close in the first quarter of 2010.
While Durezol is approved for the treatment of inflammation and pain associated with eye surgery, Zirgan is approved for the … [visit site to read more]

Conoco Foresees R&M Loss

Posted: 20 Jan 2010 12:33 PM PST

ConocoPhillips (COP) yesterday released its fourth quarter 2009 interim update. The company sees a loss for Refining and Marketing (R&M) segment due to weak secondary product margins, narrow light-heavy crude differentials and a low utilization due to turnaround activity and economic conditions.
While Conoco's average worldwide crude oil refining capacity utilization rate for the quarter is anticipated to be in the high 70% range, the domestic and international utilization rates are … [visit site to read more]

Video: 01/20 FX Options Report

Posted: 20 Jan 2010 12:16 PM PST

The USD and JPY extended gains against the major currencies. U.S. equities pared earlier losses, but continued to see downward pressure. … [visit site to read more]

Northern Trust Outdoes Consensus

Posted: 20 Jan 2010 12:14 PM PST

Northern Trust Corporation's (NTRS) fourth quarter earnings of 82 cents per share were ahead of the Zacks Consensus Estimate of 67 cents. Last year, the company reported a gain of $1.47 per share. Net income was $200.3 million versus $342.3 million last year. Earnings were dragged down by lower foreign exchange trading income as well as diminished net interest income due to a poor interest rate environment.
Northern Trust reported full year earnings of $3.16 per share, down 9% from $3.47 … [visit site to read more]

New York Cage Fighting

Posted: 20 Jan 2010 12:01 PM PST

How low can we go?

Desperate times certainly require desperate measures but just how low will America sink in an attempt to address its massive fiscal deficits and budgetary pressures. Well, it would appear that New York State is ready to sink pretty low. New York Governor David Paterson released his proposed budget yesterday. WCBS TV in New York provides a comprehensive summary in reporting, Paterson: Budget Has $1 Billion in New Taxes. Let’s navigate.
Governor David Paterson said … [visit site to read more]

Made In Japan: A New Bull Market

Posted: 20 Jan 2010 12:00 PM PST

Japan has now been through a 20-year bear market. Tokyo's Nikkei – think of it as Japan's Dow Jones Industrial Average – put in a new low last year. Even though it's rallied a bit since then, it's still down about 75% from its all-time high in 1989. That's a brutal bear market.
After all that, there is still no shortage of bad news on Japan. There are plenty of problems, including a ballooning pile of government debt. Some think a debt crisis is inevitable.
Yet even the most … [visit site to read more]

M&T Bank Misses Estimates

Posted: 20 Jan 2010 11:59 AM PST

Earlier today, M&T Bank Corporation (MTB) reported earnings of $1.04 per share in the fourth quarter of 2009. Excluding a series of special items in the quarter, the company earned 83 cents per share. The results were well short of the Zacks Consensus estimate of 89 cents.
Taxable-equivalent net interest income came in at $565 million, up 15% year over year and up 2% sequentially. The sequential growth in such income was primarily due to a widening in the net interest margin, which … [visit site to read more]

Producer Price Increases Slow

Posted: 20 Jan 2010 11:47 AM PST

The Producer Price Index (PPI) rose in December by 0.2% on a headline basis, and was unchanged after you strip out volatile food and energy prices to get the core index. This is down sharply from November when they rose 1.8% on headline and 0.5% on a core basis.
However, the deflationary readings of a year ago are starting to roll off, so the year-over-year change in the Producer Price Index rose to 4.4% from 2.4% in November. That tells you much more about a year ago — when the economy was on … [visit site to read more]

Is China Following America Into A Real Estate Bubble?

Posted: 20 Jan 2010 11:39 AM PST

This analysis if from Martin Denholm, Senior Editor, Investment U
"Progress, far from consisting in change, depends on rententiveness. Those who cannot remember the past are condemned to repeat it." — George Santayana
China would do well to remember the lessons from the real estate collapse in the United States – because it's heading down the same rocky path.
China's National Bureau of Statistics just reported that property sales in the country surged by a massive 75.5% in 2009, … [visit site to read more]

Marshall & Ilsley Falls Short

Posted: 20 Jan 2010 11:33 AM PST

Marshall & Ilsley Corporation (MI) reported a 2009 fourth quarter net loss of $259.5 million, or 54 cents per share, as compared to a net loss of $1,891.7 million, or $7.25 per share, in the fourth quarter of 2008.
M&I’s average loans and leases totaled $45.3 billion for the fourth quarter of 2009, decreasing $4.9 billion or 10% compared to the fourth quarter of 2008. When adjusted for the targeted reduction in the Corporation’s construction and development portfolio, loans fell $1.2 … [visit site to read more]

Forex Trading: USDCAD Moves Above 1.0405/15 Resistance And Stays There

Posted: 20 Jan 2010 11:32 AM PST

The USDCAD moved above the key resistance at the 1.0405/15 level and continued the trend move higher. The move is in reaction to sharply lower commodity price which has seen oil fall $1.34 currently and Gold shed some $26 dollars.  
From a technical perspective, the price has tracked the 100 bar MA on the 5 minute chart nicely. The last few hours have seen a consolidation which has brought the moving average closer to the current price, it also left a … [visit site to read more]

Hudson City Meets Estimates

Posted: 20 Jan 2010 11:18 AM PST

Hudson City Bancorp's (HCBK) fourth quarter 2009 operating earnings came in at 28 cents per share, in line with the Zacks Consensus Estimate. This was an increase over the 25 cents reported last year. The company continued to experience strong lending revenues, even though provisions for losses increased and other credit quality metrics worsened.
For full year 2009, net income increased 18.3% to $527.2 million and earnings per share increased 18.9% to $1.07.
Hudson City reported a 9.9% … [visit site to read more]

Progressive Exceeds Expectations

Posted: 20 Jan 2010 11:04 AM PST

Progressive Corp.'s (PGR) fourth quarter earnings of 46 cents per share were ahead of the Zacks Consensus Estimate of 37 cents and almost double the prior-year quarter's earnings of 24 cents. Investment gains coupled with increased premium writings have contributed to this result. Furthermore, the results included the impact of an additional week's activity in December 2009.
For the full year 2009, Progressive earned $1.1 billion, or $1.57 per share, compared to a loss of $70.0 million, … [visit site to read more]

Successful Investing Isn’t About “Buy And Hold” - It’s About “Buy And Manage”

Posted: 20 Jan 2010 11:01 AM PST

When it comes to the global financial crisis, many so-called “experts” think the worst is behind us. But I don’t buy it.

And I’m not alone.

Just look at what some other big-name investors - each also known for their independent thinking - are saying or doing right now:

Bond king Bill Gross is nervous and raising cash.
Author, commentator and global-markets guru Jim Rogers has repeatedly said that he’s not investing in stocks anywhere in the world right now.
Hedge-fund … [visit site to read more]

Autoliv Acquires Japanese JV

Posted: 20 Jan 2010 10:50 AM PST

Autoliv Inc. (ALV) has decided to acquire the remaining 40% of shares in its joint venture (JV) Autoliv Nichiyu Co. Ltd, located in Aichi Prefecture, Japan. The JV, formed in 1988, manufactures airbag inflators for the domestic market and is one of Autoliv's five manufacturing facilities in the country.
 
Autoliv Nichiyu has annual sales of about $35 million, the lion's share of which is generated internally from sales to other Autoliv companies. Apart from this JV, all other … [visit site to read more]

Navistar Downgrades 2010 Outlook

Posted: 20 Jan 2010 10:35 AM PST

Navistar International Corp. (NAV) projected earnings per share of $1.75 to $2.25 for fiscal 2010 ended Oct 31, 2009, in a filing with the U.S. Securities and Exchange Commission. This was narrower than the Zacks Consensus Estimate of $3.45 per share for the fiscal.
 
Navistar seems to be bogged down by the economic slump, which has resulted in lower revenues at its military-truck unit due to a decline in freight volumes and the expiration of a contract with its largest customer, Ford, … [visit site to read more]

Video: Market Movers: CBS, IBM, BIG, DOW, DD

Posted: 20 Jan 2010 10:33 AM PST

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

Coach Tops Zacks Consensus

Posted: 20 Jan 2010 10:21 AM PST

Amid a weak retail environment, Coach, Inc. (COH), the designer and marketer of fine accessories and gifts, recently reported second-quarter 2010 results that topped Zacks’ expectations.
Coach's quarterly earnings of 75 cents a share outdid the Zacks Consensus Estimate of 72 cents, and jumped 11.9% from 67 cents delivered in the prior-year quarter. Coach was buoyed by positive comparable-store sales achieved at North American stores, competitive pricing and innovative products, which lured … [visit site to read more]

BNY Mellon Beats Expectations

Posted: 20 Jan 2010 10:17 AM PST

The Bank of New York Mellon Corp.'s (BK) fourth-quarter earnings of 59 cents per share came in above the Zacks Consensus Estimate of 52 cents. The company saw an increase in assets under custody and administration during the quarter.
 
On Non-GAAP basis, total revenues for the quarter were $3.3 billion, down 1% sequentially and 20% year over year. Non-interest expense (Non-GAAP) increased 6% sequentially but declined 1% year over year to $2.3 billion.
 
Assets under management … [visit site to read more]

A Stock Rally On Accounting Errors?

Posted: 20 Jan 2010 10:15 AM PST

It seems nothing can keep a bad market down. If this bounce goes much higher, we're going to have to review the laws of financial gravity.
The Dow Jones Industrial Average rallied 115 points in yesterday's session, bucking Friday's loss of about the same amount. The S&P 500 and the NASDAQ were stronger still, ending the day up 1.25% and 1.4% respectively.
"What was the good news catalyst for all this optimism?" readers wonder. Glad you asked…
The surge in prices came as … [visit site to read more]

Video: USD And JPY Gain On Safe-Haven Demand

Posted: 20 Jan 2010 10:05 AM PST

The U.S. dollar extended gains vs. the Euro, as U.S. equities extended losses. EUR/USD broke below $1.41 level. … [visit site to read more]

Morgan Stanley Underperforms

Posted: 20 Jan 2010 10:05 AM PST

Morgan Stanley (MS) reported fourth-quarter 2009 net income of $413 million or 14 cents per share, compared to net income of $498 million or 48 cents per share in the prior quarter and net loss of $10.5 million or $10.92 per share a year ago. The results missed the Zacks Consensus Estimate of 36 cents per share. Morgan Stanley marked the second consecutive quarter of income this year.
Results were aided by robust underwriting revenues in the investment banking operation, resulting from higher … [visit site to read more]

Japanese Yen’s Kamikaze Flight Trajectory

Posted: 20 Jan 2010 10:01 AM PST

Forget about the flight to the dollar at the peak of the financial crisis: the yen was the ultimate beneficiary. The endlessly quoted unwinding of the carry trade was a factor, but there may have been a more important force at play. As that force may now be under increased pressure, the yen may be in trouble. The force we are talking about is the free market.

How can market forces drive up the yen when Japan has been a leader in quantitative easing, the “art” of printing money? Japan … [visit site to read more]

ONEOK Provides 2010 Outlook

Posted: 20 Jan 2010 10:00 AM PST

Yesterday, ONEOK Inc. (OKE) and its limited partnership ONEOK Partners L.P. (OKS) updated their 2009 outlook and provided 2010 earnings guidance.
 
ONEOK raised its 2009 earnings guidance in the range of $2.85 -$2.89 per share, on the high end of its previous guidance of $2.65 -$2.85. ONEOK Partners expects its 2009 earnings to be at the high end of its previous guidance of $3.40 -$3.60 per share. The partnership also revised its 2009 distributable cash flow (DCF) guidance to $556 … [visit site to read more]

Wells Fargo Beats Estimates

Posted: 20 Jan 2010 09:51 AM PST

Wells Fargo & Co.’s (WFC) fourth quarter 2009 net income applicable to common stock came in at $394 million or 8 cents per share, compared to a net loss of $3.02 billion or 84 cents in the prior-year quarter. Results were soundly ahead of the Zacks Consensus Estimate of break-even.
Results included $450 million in merger costs, a $261 million previously disclosed expense provision for an auction rate securities (ARS) settlement and $150 million employee benefit-related expenses for 401(k) … [visit site to read more]

Forex Trading: AUDUSD Fall Below The 38.2% Retracement At 0.9101

Posted: 20 Jan 2010 09:46 AM PST

The AUDUSD has fallen through the 38.2% retracement of the move up from the December low to the January high. The price comes in at the 0.9101 level. The low has reached 0.9076. 
As long as the price can remain below this level, there should be selling pressure with 0.9030 the next target. 
The AUDUSD is getting hit today on the back of lower commodity prices and the intention of China to slow bank lending.  There are a slew of China statistics out later today including GDP … [visit site to read more]

KT Chalks Out 2010 Target

Posted: 20 Jan 2010 09:44 AM PST

South Korea's incumbent fixed-line carrier KT Corp. (KT) has outlined its guidance for 2010. The carrier expects revenues to increase 2.8% in 2010 to KRW19.5 trillion (US$17.3 billion) from the estimated KRW18.96 trillion (US$16.8 billion) in 2009. KT is expected to release fourth-quarter 2009 results on Jan 29, 2010.
KT plans to boost capital expenditure by 8% to KRW3.2 trillion (US$2.8 billion) in 2010. The company will spend more in 2010 to expand its fiber-to-the-home network coverage … [visit site to read more]

Intuit Sells Off Real Estate

Posted: 20 Jan 2010 09:27 AM PST

Intuit, Inc. (INTU) recently completed the sale of Intuit Real Estate Solutions (IRES) to Vista Equity Partners for $128 million.
Based in Ohio, IRES was a part of Intuit's global business division and a leading provider of software and services to companies in the real estate management and investment industry. This division generated revenues of approximately $74 million in fiscal 2009 and was expected to contribute approximately $80 million to top-line in fiscal 2010.
As a result of the … [visit site to read more]

Inspections Add To Wheat Woes

Posted: 20 Jan 2010 09:18 AM PST

Fundamentals
Wheat futures are lower this morning, following weaker grain inspection figures indicating that demand for US Wheat continues to weaken. Overall world demand for the grain does remain fairly stout, but the stronger US Dollar has hurt exports of domestic grain. The weekly inspections figure shows 9.4 million bushels inspected for export, which is the lowest figure this marketing year. This is also 24% lower than last week’s figure. Wheat continues to feel outside pressure from the … [visit site to read more]

Some Interesting Reading

Posted: 20 Jan 2010 09:17 AM PST

Here are several articles that I have read over the last two days that I thought were noteworthy.

The first is an editorial from the Wall Street Journal by John Bogle, who is the founder and former chief executive of the Vanguard Group. Mr. Bogle is an investor (as opposed to a trader) and a big idea kind of person who has the interest of investors on Main Street. I believe Mr. Bogle is sincere when he talks about “Restoring Faith in Financial Markets”.

The second article comes from Gary … [visit site to read more]

Another Deal For Novartis

Posted: 20 Jan 2010 09:12 AM PST

Recently, Novartis (NVS) entered into a collaboration with GenVec (GNVC) for the development of treatments for hearing loss and balance disorders. Earlier, preclinical results have found strong potential in GenVec’s adenovector technology for the restoration of hearing and balance functions.
Per the agreement, Novartis has acquired worldwide rights to the program, for which it has paid $5 million upfront. GenVec is also eligible to receive up to $213.6 million in the form of milestone … [visit site to read more]

PowerShares Plans Small Cap Sector ETFs

Posted: 20 Jan 2010 09:06 AM PST

After launching more than 120 new funds last year, the ETF industry seems poised to continue its rapid growth in 2010. Numerous issuers have big plans for this year, with the number of new product launches expected to once again exceed 100 and perhaps even top last year's results. A recent SEC filing shed some light on PowerShares' plans for future growth, revealing that the Chicagoland issuer may be looking to launch as many as ten sector-specific small cap ETFs. The funds highlighted in … [visit site to read more]

Permits Rise, But Starts Fall

Posted: 20 Jan 2010 09:04 AM PST

We got a very mixed picture on the housing front this morning. Housing Starts were down but Building Permits were up, and while permits are a leading indicator of starts, they usually move in the same direction.
It was not simply a case of the very volatile apartment and condo (5 or more until structures) numbers causing this anomaly. Single-family permits were up while single-family starts were down.
The regional data was also very mixed. While the data is seasonally adjusted, I suspect a … [visit site to read more]

Are Free Markets Free?

Posted: 20 Jan 2010 09:00 AM PST

Speech for the Conservative Leadership Conference (New York City, January 22, 2010)
How many of you are in favor of free markets? In my book Endless Money: The Moral Hazards of Socialism, I make the case that free markets and capitalism are threatened by our monetary system. Our central bank operates by the decree of government. It administers the U.S. dollar, which it has printed with abandon. This makes government spending uncontrollable, and it can, once enough credit has been extended, … [visit site to read more]

O2 UK Enters Wireline Voice

Posted: 20 Jan 2010 08:57 AM PST

O2 UK, the British subsidiary of Spanish Telecom giant Telefonica (TEF), recently announced that it will offer fixed-line voice services to residential customers in the UK starting March 2010. The mobile carrier, which was once the wireless arm of BT Group (BT), aims at complementing its existing wireless and broadband Internet services with wireline voice.
 
BT Group (formerly British Telecom) is the incumbent fixed-line telephone service provider in the UK. By entering the … [visit site to read more]

Molina To Expand

Posted: 20 Jan 2010 08:42 AM PST

Molina Healthcare Inc. (MOH) announced recently that it will purchase information technology (IT) company Unisys Corp.’s (UIS) health information management (HIM) business for $135 million in cash.
The transaction is expected to close in the first half of 2010. The closure of the transaction will see 900 employees of the HIM division joining Molina Healthcare. As a part of the deal, the IT company will provide certain transitional and technology support services to Molina for up to a year … [visit site to read more]

Healthcare Stock Watch: My Short List Of Booming (and Busting) Companies

Posted: 20 Jan 2010 08:36 AM PST

Wednesday, January 20, 2010: Issue #1179
On my way out to San Francisco last week, I never thought that I'd compare the biggest healthcare conference of the year to the dating scene.
But that's the overall vibe that I took away from the JP Morgan Healthcare Conference. The investors I spoke with reminded me of jilted lovers – eager to get back on the market, but scared to get hurt again.
Rather than checking out the eligible candidates on Match.com, though, healthcare investors spend … [visit site to read more]

CSX Earnings Down On Rev Miss

Posted: 20 Jan 2010 08:32 AM PST

CSX Corporation's (CSX) fourth quarter earnings from continuing operations of 77 cents per share were only a penny ahead of the Zacks Consensus Estimate. Earnings were down 16% from 92 cents last year.
Results were dragged down by lower revenues due to volume declines in coal, construction and consumer-related markets caused by the weak economy. Lower fuel surcharge recovery caused by a decline in fuel costs also strained earnings.
Revenue declined 13% year-over-year to $2.3 billion due to … [visit site to read more]

Progress Energy Lowers Guidance

Posted: 20 Jan 2010 08:29 AM PST

Progress Energy Inc. (PGN) provided 2010 earnings and lowered its 2009 guidance, due to the lingering effects of the economic recession and the recent unfavorable regulatory decision.
 
The company expects 2010 earnings to be in the range of $2.85 to $3.05, which reflects the adjusted retail revenue expectations due to the challenging economy in Florida and the results of the decision in the company’s Florida rate case.
 
Last week, the Florida regulators unanimously rejected a … [visit site to read more]

I Could Not Help Myself

Posted: 20 Jan 2010 08:28 AM PST

Sorry, I couldn’t help myself on this one. This will only be a momentary diversion as I know the markets can be fickle if one is not … [visit site to read more]

Forex Trading: EURUSD Trades Below 1.4100. Below Support At 1.4117 Now

Posted: 20 Jan 2010 08:24 AM PST

 
The price has moved to 1.4100 below the 1.4117 level which is the 38.2% retracement of the move up from the 2009 low to the 2009 high reached in November.  The level is now upside resistance.  On the downside, the next target will become the 1.4045 level which was the low price in August.   
Be aware that London and Europe are exiting for the day.  As a result, there may be a bounce back. However, risk is a move back above 1.41117 and the bias does remain to … [visit site to read more]

Conexant Files Shelf Registration

Posted: 20 Jan 2010 08:13 AM PST

Conexant Systems Inc. (CNXT) has recently announced the filing of a universal shelf registration statement with the Securities and Exchange Commission (SEC). Once the shelf registration statement gets declared, Conexant will have the option to offer and sell up to $100 million of common stock, preferred stock and debt securities.
The company intends to use the net proceeds from the sale of securities under the shelf registration statement for general corporate purposes, which includes the … [visit site to read more]

BofA Disappoints On TARP Payback

Posted: 20 Jan 2010 08:11 AM PST

Bank of America Corporation's (BAC) fourth quarter 2009 loss came in at 60 cents per share, a nickel worse than the Zacks Consensus Estimate of a loss of 55 cents. This compares unfavorably with the loss of 48 cents in the prior-year quarter.
Results for the quarter included dividends on preferred stock and a $4.0 billion negative impact associated with repaying the bailout money. Since the end of 2009, BofA has been absolutely free from pay restrictions as it has repaid the full TARP … [visit site to read more]

What Scott Brown’s Victory Really Means

Posted: 20 Jan 2010 08:09 AM PST

Get ready for the bromides.
From the right: Just goes to show the country is against Democratic tax-and-spend. Obama's agenda is in ruins, heath-care is over, the GOP has a good chance of taking back Congress next November. Now, even congessional Democrats will move to the right.
From the left: Just goes to show Obama should never have cozied up to Wall Street, Big Pharma, and Big Insurance. He compromised too much. The Democratic base lost faith in him. The only answer is for Obama and … [visit site to read more]

OGE Energy Hikes Guidance

Posted: 20 Jan 2010 08:01 AM PST

OGE Energy Corporation (OGE) expects its fiscal 2009 earnings to exceed the previously announced guidance range of $2.30 – $2.60 per share. This also exceeds the Zacks Consensus Estimate of $2.49 per share for fiscal 2009. The primary drivers for OGE Energy's higher 2009 earnings expectations are improved results for Enogex, colder than usual weather in December 2009 in the Oklahoma Gas and Electric Company (OG&E) service area, and lower operation and maintenance … [visit site to read more]

Jefferies Launches Wildcatters ETF (WCAT)

Posted: 20 Jan 2010 07:50 AM PST

The Jefferies | TR/J CRB Wildcatters Exploration & Production Equity ETF (WCAT) began trading this week, offering investors a way to gain exposure to equity securities of a global universe of companies engaged in the production of oil and natural gas sectors. The index underlying WCAT is a modified cap-weighted benchmark. To be eligible for inclusion, companies must maintain a market capitalization between $200 million and $2 billion and must generate at least 75% of annual revenues from … [visit site to read more]

Staples Initiated As A Neutral

Posted: 20 Jan 2010 07:45 AM PST

Recently, we initiated coverage on Staples, Inc., (SPLS) with a Neutral rating and a price target of $26.00.
 
Staples is a leading retailer of office products and services. The company distributes its products in North America and globally. The products sold by Staples include a wide range of office products, including supplies, technology, furniture, and business services. 

The services offered by Staples include high speed color and self service copying, other printing … [visit site to read more]

China Puts The Breaks On Lending

Posted: 20 Jan 2010 07:34 AM PST

The dollar has rebounded very quickly the past few days, and there are no roadblocks right now. The risk takers in the markets are running for safety again, sent running by China's decision to curb lending and attempt to slow growth before their economy overheats.
You see, China was the linchpin for risk taking, because with China growing, commodities were in need, and commodity countries were very happily sending those commodities to China. The commodity countries would then be flush with … [visit site to read more]

JNJ Tastes Success With Stelara

Posted: 20 Jan 2010 07:30 AM PST

Johnson and Johnson (JNJ) has been in news in the last few days, but for the wrong reasons – product recall and allegations of bribery. However, the company received some good news recently on one of its products. Johnson and Johnson announced findings from a phase III clinical study comparing the effectiveness and safety of Stelara (ustekinumab) with Amgen/ Wyeth's (now a part of Pfizer) (AMGN/PFE) Enbrel (etanercept) for the treatment of plaque psoriasis. 

Earlier in September … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: BAC, MS, WFC

Posted: 20 Jan 2010 07:21 AM PST

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

Jacobs Receives New Contract

Posted: 20 Jan 2010 07:15 AM PST

Jacobs Engineering Group Inc. (JEC) received a contract from Hyundai Engineering Co., Ltd. (HEC) to license and design its proprietary SUPERCLAUS® technology for a desulphurization unit at a new gas plant in Turkmenistan. However, the contract or investment value was not disclosed. 

South Korea-based HEC will design and build the new gas plant, which is scheduled to be operational in 2012. Gas produced from this plant will be supplied to China. Turkmenistan’s natural gas reserves, … [visit site to read more]

As A Corollary To A Higher Dollar….GLD, GDX, SLV

Posted: 20 Jan 2010 07:12 AM PST

As a corollary to a higher Dollar, it is my expectation that precious metals will be under pressure.

For example, I have had a sell signal on the SPDR Gold Trust (symbol: GLD) since January 11, 2010. Gold still remains in a secular bull market, but on the weekly time frame that I function on, technical studies suggest an opportunity to buy at lower prices. GLD should test the $104 to $105 area, which are the lows of the negative divergence bar on the monthly chart.

If gold will be weak, then … [visit site to read more]
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