Mar 15, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

PSUN Beats, Outlook Disappoints

Posted: 15 Mar 2010 07:45 AM PDT

Pacific Sunwear of California Inc. (NASDAQ:PSUN) posted fiscal 2009 fourth quarter results after the closing bell on Thursday. The company recorded a wider GAAP net loss of $36.5 million, or 56 cents per share, compared to a loss of $27.0 million, or 42 cents per share in the prior year quarter. Excluding special items, adjusted loss per share came in at 26 cents, ahead of the Zacks Consensus Estimate of a 29-cents loss. 

However, Pacific Sunwear offered a disappointing fiscal 2010 … [visit site to read more]


Wider Loss For Novavax

Posted: 15 Mar 2010 07:30 AM PDT

Novavax's (NASDAQ:NVAX) fourth quarter net loss per share came in at 15 cents, wider than the Zacks Consensus Estimate of a loss of 5 cents. The year-ago loss was 16 cents. For 2009, the company reported a loss per share of 45 cents compared to a loss of 53 cents in 2008.
The decline in net loss per share was primarily due to an increase in the number of shares. Total net loss increased to $13.95 million during the reported quarter compared to $11.08 million in the year ago period.
Novavax, a … [visit site to read more]

EUR/USD Pulled Back From 1.3800

Posted: 15 Mar 2010 07:18 AM PDT

Price action on EUR/USD as of Monday morning (3/15/2010) New York session has pulled back substantially after reaching a high late last week approaching key resistance in the 1.3800 price region. 1.3800 continues to provide strong resistance for the pair. Any subsequent breakout back above that level would place the current overall downtrend at risk of trend change. For now, however, the current pullback keeps the downtrend in place. The downside level to watch continues to be the … [visit site to read more]

Are Soybean Prices On The Verge Of A Major Breakdown?

Posted: 15 Mar 2010 07:17 AM PDT

Fundamentals
Soybean futures prices have stagnated, holding in a relatively narrow 75-cent range the past few weeks, as conflicting fundamentals have neither bulls nor bears in control. The USDA March crop report was deemed neutral by trader, as a drop in the ending stocks estimate was countered by rising estimates of the South American Soybean crop. The USDA lowered the 2009-10 U.S. Soybean carryout by 20 million bushels to 190 million bushels. The drop in ending stocks was tied to a … [visit site to read more]

Hibbett Sports Earnings Soar

Posted: 15 Mar 2010 07:15 AM PDT

Hibbett Sports Inc. (NASDAQ:HIBB), a leading sporting goods company in the U.S., reported fourth quarter fiscal 2010 earnings of $11.8 million or $0.40 per share, compared to $7.6 million or $0.26 in the year-ago quarter. The quarterly earnings surpassed the Zacks Consensus Estimate of $0.31.
For fiscal 2010, the company reported a net income of $32.5 million or $1.12 per share compared to $29.4 million or $1.02 in the previous fiscal. The earnings came in ahead of the fiscal Zacks Consensus … [visit site to read more]

Forex Trading: EURUSD Tests Key Support At 1.3691.

Posted: 15 Mar 2010 07:14 AM PDT

The 1.3691 level has been a key level of support and resistance from March and also the first spike high on February 23rd. (see prior post).  This level should find some support. A break would target a move toward the 100 hour MA at the 1.3665 … [visit site to read more]

ReneSola Slips Below Consensus

Posted: 15 Mar 2010 07:00 AM PDT

ReneSola Ltd. (NYSE:SOL) reported a fourth-quarter loss of 23 cents per share, worse than the Zacks Consensus Estimate of a loss of 8 cents. However, fiscal 2009 loss of 86 cents was in line with fiscal 2008 results.
 
Operational Results
 
ReneSola in the reported quarter shipped 202.9 MW of solar products, an increase of 38.1% from 146.9 MW in the third quarter of fiscal 2009. Solar wafer and module shipments were 187.4 MW and 14.6 MW, respectively, representing increases of 39.5% and … [visit site to read more]

Chart Of The Week: Russell 2000 VS Dow Jones Industrial Average

Posted: 15 Mar 2010 06:57 AM PDT

Among the many ways to evaluate the speculative activity in stocks is to evaluate the relative interest in small cap stocks versus blue chips. I like to do this by simply comparing the Russell 2000 index of small cap stocks (RUT) to the Dow Jones Industrial Average.

As the chart of the week below shows, for all of January and most of February, these two indices were tracking fairly closely. During the last two plus weeks, however, the Russell 2000 has begun to significantly … [visit site to read more]

Citi Trends Earnings Improve

Posted: 15 Mar 2010 06:45 AM PDT

Citi Trends Inc. (NASDAQ:CTRN), a leading value-priced retailer of urban fashion apparel and accessories, reported fiscal 2009 fourth quarter earnings of $11.3 million or $0.78 per share compared to $10.1 million or $0.69 in the year-earlier quarter.
For fiscal 2009, the company reported a net income of $19.7 million or $1.36 per share compared to $17.4 million or $1.20 in the previous fiscal. While fourth quarter earnings exceeded the Zacks Consensus Estimate by three cents, fiscal 2009 earnings … [visit site to read more]

Forex Trading: USDCAD Moves Above The Old Trendline And Eyes The Key Resistance Area At 1.0207/23

Posted: 15 Mar 2010 06:43 AM PDT

The USDCAD is moving above the old trendline support at the 1.0192 level as the market corrects from the new lows established on Friday. There is key upside resistance at the 1.0207-23 level which were the lows off the daily chart. This becomes key upside support now for the pair. The 1.0192 will be watched as support now. If the price can find support above this level there may be some upward corrective momentum for the pair.  The 100 hour MA (blue line in the chart above ) is also … [visit site to read more]

Empire State Index: Positive Reading For 8th Month

Posted: 15 Mar 2010 06:42 AM PDT

The Empire State Manufacturing Survey was released today and indicates that conditions for New York manufacturers continued to improve at a steady pace in March. Highlights include:

1. The General Business Conditions Index posted its eighth consecutive positive reading in March, following 15 consecutive months of negative readings (see chart). The General Business Index, at 22.9, remained close to its February level, with 43% of respondents reporting that conditions had improved … [visit site to read more]

U.S. Bank Failures Inch To 30

Posted: 15 Mar 2010 06:30 AM PDT

Although the economy is showing signs of a gradual recovery, tumbling home prices, soaring loan defaults and rising unemployment continue to take their toll on small banks. As a result, U.S. regulators on Friday shuttered three more banks in New York, Florida, and Louisiana. This brings the total number of bank failures to 30 so far in 2010, compared to 140 in 2009, 25 in 2008 and 3 in 2007.
 
These failures on Friday follow the failure of New York-based LibertyPointe Bank just the day … [visit site to read more]

Swiss Franc: The Upside Prevails

Posted: 15 Mar 2010 06:17 AM PDT

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

Japanese Yen: Rebound

Posted: 15 Mar 2010 06:17 AM PDT

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

British Pound: The Upside Prevails

Posted: 15 Mar 2010 06:17 AM PDT

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

Euro: Rebound Expected

Posted: 15 Mar 2010 06:17 AM PDT

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

Positive Correlation Between Short Term Rates And The US Dollar Index

Posted: 15 Mar 2010 06:01 AM PDT

I wanted to highlight a few quick recent charts of how the US Dollar Index positively correlates (moves in the same direction) with the 3-month Treasury Bill Discount Rate.

It’s not the most fascinating topic, but it’s definitely important to know of this relationship, so let’s take a look at a couple of recent charts.

First, a 'zoomed in’ view of the recent action:

You can view this comparison in StockCharts with symbols:

$IRX for the 3-month T-Bill Discount Rate … [visit site to read more]

Forex Trading: EURCHF Continues Move Lower As Market Tests SNB

Posted: 15 Mar 2010 05:56 AM PDT

The Swiss National Bank (SNB) said last week that they would not tolerate excessive strength in the SwissFranc. That opened the window for traders to probe what excessive means. The level used to be 1.4630.  Now the pair is down to 1.4527. This is the lowest level since October 2008.  The daily lows in October reached 1.4409, 1.4319 and 1.4209 . I would doubt the SNB would look to have the currency strengthen to these levels - risking a sharp fall on breaks of the levels.  What … [visit site to read more]

Forex Trading: Chinese Prime Minister Wen Jiabao Halts CNY Appreciation Speculation

Posted: 15 Mar 2010 05:48 AM PDT

Putting aside the plethora of important economic data releases, this should still be an important event filled week to say the least. In the Eurozone, The Eurogroup of 16 Eurozone Finance Ministers is due to convene in Brussels today, then the wider Ecofin group of 27 on Tuesday.

Obviously, the issue of Greece and potential solutions will be high on their agenda. The media buzz / speculation has been mixed, with a slight lean (perhaps it makes for better news) that some bailout solutions … [visit site to read more]

Forex Trading: EURUSD Watching The 1.3735 Level Above. Below Key Support At 1.3691

Posted: 15 Mar 2010 05:20 AM PDT

The high from March 3rd comes in at 1.3735 this level was the high from March 3rd and should provide upside resistance for today. On the downside the 1.3704 level which was the March 8th high but below that level is more important support at the 1.3691 level.  This level has been a key support/resistance level in the month of March.  Back on February 23rd the high spiked higher and stopped at 1.3691 as … [visit site to read more]

Forex Trading: GBPUSD Rebounds To Resistance In Early NY Trade

Posted: 15 Mar 2010 04:56 AM PDT

The GBPUSD rebounded to resistance in early NY trade as the pound comes under pressure from the bearish comments from BOE Barker, debt concerns and Moody concerns.  The resistance for the pair comes in at the the 1.5054 level where the 200 hour MA is found (green line in the chart above). The high reached 1.5060 on the early NY corrective move, but the price has quickly moved back lower.
A move back below the 1.5034 (blue line in the chart above) which is the 100 hour MA should pave the … [visit site to read more]

Factors Likely To Support And Drive Gold Prices

Posted: 15 Mar 2010 04:45 AM PDT

As sovereign debt fears shift to the fore, governments continue to spend money and global central banks keep interest rates relatively low, gold remains appealing and for good reason.

Gold is so attractive due to its ability to offer protection without the volatility of other metals like copper, or commodities like crude oil, which are highly dependent on the overall health of global economies.

Additionally, it appears like the shiny metal is reaping benefits in more ways than it is used … [visit site to read more]

The Building Blocks Of Infrastructure ETFs

Posted: 15 Mar 2010 04:01 AM PDT

For any country to grow or at least remain stable, there needs to be significant investment in infrastructure. That means it’s good news for infrastructure exchange traded funds (ETFs) that financing for such projects could stabilize or grow this year.

According to Fitch Ratings, global infrastructure and project finance rating outlooks in 2010 for most sectors are stabilizing and improving, writes Brian Bertsch for RiskCenter. The outlook is dependent on the anticipated gradual global … [visit site to read more]

Bear Of The Day: FTI Consulting (FCN)

Posted: 14 Mar 2010 10:00 PM PDT

We are downgrading our recommendation on FTI Consulting (NYSE:FCN) to Underperform from Neutral as a dramatic deceleration is expected in Corporate Finance and Restructuring through the remainder of 2010.
The company’s fourth quarter earnings came in only a couple of pennies short of the Zacks Consensus Estimate due to disciplined expense management and fewer share count. However, any significant growth was restricted by declining revenues from Technology and Strategic Communication … [visit site to read more]

Stock Buy: Urban Outfitters

Posted: 14 Mar 2010 10:00 PM PDT

Urban Outfitters (NASDAQ:URBN) just beat earnings expectations and went on to set new 52-week highs.
Beat the Street
On Mar 4 Urban Outfitters reported earnings per share of 45 cents, topping estimates by a nickel. This was the fourth consecutive earnings surprise.
Sales were up 16%, year-over-year, to $589 million. Same-store sales rose 4% company wide. This was a record-setting quarter as earnings nearly doubled during the fourth quarter.
Estimates Still Rising
There have been more than 40 upward … [visit site to read more]

Stock Buy: Gymboree Corporation

Posted: 14 Mar 2010 10:00 PM PDT

Gymboree Corporation (NASDAQ:GYMB) saw sales rise 4% in the fiscal fourth quarter and expects mid single digit sales growth in the first quarter.
Gymboree is a specialty children’s retailer operating 629 Gymboree stores, 140 Gymboree Outlet stores, 119 Janie and Jack shops and 72 Crazy 8 stores in the United States, Canada and Puerto Rico.
The company is rapidly expanding the Crazy 8 brand as it plans to open 28 Crazy 8 stores in the fiscal 2010 first quarter. That would bring the total stores to … [visit site to read more]

Stock Buy: Lufkin Industries, Inc.

Posted: 14 Mar 2010 10:00 PM PDT

Lufkin Industries, Inc. (NASDAQ:LUFK) recently hit a new 52-week high on rising estimates, a bullish next-year growth projection and better than expected Q4 results from mid February.
First-Quarter Results
Shares of LUFK surged higher on Feb 11 after the company reported better than expected Q4 results. Revenue was up 8% from the previous quarter to $127 million, producing earnings of 28 cents per share, 65% ahead of the Zacks Consensus Estimate of 17 cents.
Lufkin’s results are largely driven by … [visit site to read more]

Stock Buy: Bucyrus

Posted: 14 Mar 2010 10:00 PM PDT

Bucyrus (NASDAQ:BUCY) beat fourth-quarter consensus estimates by 16%, prompting analysts to boost their estimates for 2010 and 2011.
Company Description
Bucyrus is a leading manufacturer of large-scale excavation equipment used in surface mining. Bucyrus machines are used throughout the world by customers mining copper, coal, oil sands, iron ore and other minerals.
Recent Results
Bucyrus reported better-than-expected results for the fourth quarter. While its sales decreased 10% to $645.8 million, … [visit site to read more]

Bull Of The Day: Family Dollar Stores (FDO)

Posted: 14 Mar 2010 10:00 PM PDT

Family Dollar’s (NYSE:FDO) strategic initiatives to improve merchandising and store operations have helped grow the top and bottom lines. The company’s point-of-sale technology and store realignment initiatives are helping to drive traffic.
There is tremendous opportunity to increase gross margins by a renewed effort on its store brand portfolio. These initiatives helped the company post better-than-expected second-quarter 2010 sales results, and prompted management to raise its earnings … [visit site to read more]

Mutual Funds: Top 5 High Yield Bond Funds

Posted: 13 Mar 2010 07:27 AM PST

Including high yield bonds in a portfolio can offer diversification benefits which may outweigh the risks involved in many cases. High yield investments generally offer better returns than investment grade fixed income investments. The low level of correlation of these bonds with investments rated higher could even improve the overall alpha in a portfolio. High yield funds are often the preferred choice of investors for investing in this category, since they reduce the risk involved appreciably … [visit site to read more]
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