Daily Markets - Financial News And Opinions

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• More Pressure On Bond Prices
• In Search Of…
• Steel Dynamics Raises Debt
• DuPont Focus On Plant Genetics
• Cartoon: Is Gasoline Headwind To Economic Recovery?
• The Glut In The Mortgage Market: Self-Reinforced And Going Down
• Ford Receives Grants
• HD To Roll Out Spring Black Friday
• PPL Awards $70M Contract, Builds Jobs
• PVR Expands Marcellus Footprint
• ArcelorMittal Signed MoU
• Using Scans To Hit The Bull’s Eye
• The IMF, The EMF And All The Worthless Money In Between
• GDP Doesn’t Do This Slump Justice
• AAR Corp. On Hold For Now
• CRA International Lags Estimates
• No Surprise Here
• Amdocs Wins Telenet Contract
• Turkcell Exceeds, Fitch Affirms
• US Treasury Bonds - What’s Up?
• Video: Palm Announces Weak Fiscal 3Q Smartphone Sales
• Declining Dollar To The Fed: Et Tu, Bernanke?
• Video: NYSE Closing Bell Market Monitor: CVX, BA, BBY, LYD
• Comcast Firms SMB Footprint
• ITT Wins U.S. Army Deal
• Nabi Vaccine Program Advances
• ProLogis Signs Leases In Mexico
• Live From Investment U: The Early Bird Catches The Profits
• Sprint To Unveil 4G WiMax Phone
• Has The U.S. Housing Market Turned Yet?
• MGM Mirage Raises $826 Million
• Theravance Raises Funds
• ACE Limited Reports Losses
• Alkermes Pipeline Advances
• Acergy Stays Outperform
• Bombay Dreams
• Big Mac Index: China’s Yuan Undervalued, Canadian And Aussie Dollars Strong
• Forex Trading: USDJPY A Disappointment

More Pressure On Bond Prices Posted: 19 Mar 2010 05:31 PM PDT It should be pretty clear that I’m bearish on the bond market. The massive budget deficits and debts we’re racking up should hammer Treasury prices. So should the steadily growing concern about the credit quality of sovereign debts. In fact, Moody’s Investors Service just weighed in again on that front. It warned that both the U.S. and the U.K. are “substantially” closer to losing their AAA debt ratings. A key reason? Debt servicing costs - ongoing interest and principal payments - are … [visit site to read more]

In Search Of… Posted: 19 Mar 2010 04:42 PM PDT Here’s some things people have long been searching for: Bigfoot   Loch Ness Monster   Yeti (The Abominable Snowman)   The Holy Grail Based on the following report (and others like it), perhaps we should add “The So-Called Recovery” to the list…? “Box Makers Wait for Signal of Economic Growth” (Cincinnati Enquirer) Some economic indicators suggest the worst of the Great Recession is behind us, but Jim Cory at Pax Corrugated Products, isn’t seeing any signs of … [visit site to read more]

Steel Dynamics Raises Debt Posted: 19 Mar 2010 04:40 PM PDT Steel Dynamics Inc. (NASDAQ:STLD), the fifth largest US steel producer, has raised $350 million by issuing 8% senior notes due 2020 through a private offering. The company intends to use the proceeds from the notes to finance capital expenditure and acquisitions as well as debt repayment. As of December 31, 2009, Steel Dynamics' balance sheet reflected a total debt of $2.6 billion. The company's debt-equity ratio was comfortable at 1.03 times that of December 31, 2009. The company's net cash … [visit site to read more]

DuPont Focus On Plant Genetics Posted: 19 Mar 2010 04:20 PM PDT Chemical manufacturer EI DuPont de Nemours & Company (NYSE:DD) is spending $40 million on advanced plant genetics business under its Iowa-based Pioneer Hi-Bred subsidiary. DuPont is planning to open new research facilities on advanced plant genetics, which would help farmers boost agricultural productivity. DuPont's research and development (R&D) efforts are geared to double agricultural productivity by 2050 and pep up the Iowa economy. DuPont is focused on increasing food production. … [visit site to read more]

Cartoon: Is Gasoline Headwind To Economic Recovery? Posted: 19 Mar 2010 04:01 PM PDT Source: John Deering, GoComics.com, March 15, … [visit site to read more]

The Glut In The Mortgage Market: Self-Reinforced And Going Down Posted: 19 Mar 2010 04:00 PM PDT The law of supply and demand is trumping the homebuyer tax credit. The glut of housing we mentioned on Tuesday is making itself evident with this news: The number of mortgage applications fell 1.9% last week. Both new purchases and refinances are down. At this rate, Congress could repeal the homebuyer tax credit today, instead of allowing it to lapse on April 30, and no one would notice. Adding to the housing glut: An increase in the number of foreclosed homes that banks are looking to unload. … [visit site to read more]

Ford Receives Grants Posted: 19 Mar 2010 04:00 PM PDT The U.K. government announced that it will provide £360 million ($550 million) in loan guarantees from its Automotive Assistance Program to Ford Motor Co. (NYSE:F) to support its research and development for commercial vehicles and low carbon emission diesel and petrol engines. The grant will also back Ford’s investment in new production facilities for low-carbon engines across the U.K. The grant will be provided in response to the company’s bid for a £450 million ($687 million) loan from the … [visit site to read more]

HD To Roll Out Spring Black Friday Posted: 19 Mar 2010 03:50 PM PDT Similar to the traditional Black Friday that kick-starts the Christmas holiday shopping season, The Home Depot Inc. (NYSE:HD), the world's largest home improvement specialty retailer, has decided to implement Spring Black Friday in March and April to mark the beginning of the busiest shopping season of the home improvement industry. Home Depot will selectively implement Spring Black Friday in each market. In the warmer, Southern and Western states, Spring Black Friday will begin on March 18, … [visit site to read more]

PPL Awards $70M Contract, Builds Jobs Posted: 19 Mar 2010 03:40 PM PDT Recently, PPL Electric Utilities, a subsidiary of PPL Corporation (NYSE:PPL) awarded a contract of over $70 million to Valmont Industries Inc. for the Susquehanna-Roseland power line. The contract is expected to create more than 50 new jobs and pump millions of dollars into the regional economy. Valmont on the Project Valmont Industries Inc., with plants in Hazleton and West Hazleton, will design and manufacture the steel poles for the 101-mile Pennsylvania segment of the line. Valmont officials … [visit site to read more]

PVR Expands Marcellus Footprint Posted: 19 Mar 2010 03:25 PM PDT Penn Virginia Resource Partners L.P. (NYSE:PVR), through its midstream division PVR Midstream, has agreed to construct and operate gas gathering pipelines and compression facilities for a private firm in the Marcellus Shale of northern Pennsylvania. Under the agreement, PVR Midstream will construct 12-inch gathering pipeline and compression facilities with 25 million cubic feet (MMcf) per day of throughput capacity for the firm’s natural gas production in Wyoming County, Pennsylvania. PVR … [visit site to read more]

ArcelorMittal Signed MoU Posted: 19 Mar 2010 03:10 PM PDT Recently, ArcelorMittal (NYSE:MT) signed a memorandum of understanding (MoU) to form a joint venture with Turkish partner Dayen to build a steel mini-mill with electric furnace in Sulaimaniyah, Northern Iraq.  In its initial phase, the mill will produce up to 250,000 tons per year of bars from locally sourced scrap and require investment of $100 million to $130 million, jointly contributed by ArcelorMittal and Dayen.   Construction is expected to start in the second quarter of fiscal … [visit site to read more]

Using Scans To Hit The Bull’s Eye Posted: 19 Mar 2010 03:01 PM PDT A reader asked a fair question: “You give us a lot to choose from but which do you think is the best?” That’s a question we’d all love the answer to. But no one can predict the future with 100% certainty, even me. And if I could, I probably would be on the beach on my own private Caribbean island instead of writing this blog. What we can do, though, is try to reduce the risks involved in stock investing while at the same time maximizing the probabilities for profit. I do this by: 1) … [visit site to read more]

The IMF, The EMF And All The Worthless Money In Between Posted: 19 Mar 2010 03:00 PM PDT There are those (me) who think that the International Monetary Fund (IMF) is a huge load of worthless, corrupt crap, not only because their dismal record pretty much shows that they are miserable failures, but because that is the way things always end up when someone is given power and money in huge amounts, or even in moderate amounts. Or, it turns out, even in small amounts, as I prove each week when the kids, over whom I have absolute, awesome power right up until the exact moment when the … [visit site to read more]

GDP Doesn’t Do This Slump Justice Posted: 19 Mar 2010 03:00 PM PDT We're all relatively familiar with Gross Domestic Product, or GDP, which measures the aggregate expenditure, or output of the economy. However, we tend to hear much less about its unloved cousin, Gross Domestic Income, or GDI, which tracks the economy's total income. A Federal Reserve economist, Jeremy Nalewaik, recently decided to look at the US downturn from a GDI perspective — which he determined to be more accurate — and the findings were much more negative than GDP … [visit site to read more]

AAR Corp. On Hold For Now Posted: 19 Mar 2010 02:55 PM PDT AAR Corp. (NYSE:AIR) was selected by Bombardier Aerospace, Belfast to design and manufacture composite flap track fairings for the wings of the new CSeries family of commercial aircraft. The contract is expected to exceed $90 million over the life of the program.  The contract will be executed by AAR Composites, which develops and fabricates advanced composite structures for a wide range of aviation and aerospace applications.   The CSeries aircraft, Bombardier’s newest platform, is … [visit site to read more]

CRA International Lags Estimates Posted: 19 Mar 2010 02:40 PM PDT On Thursday, CRA International Inc. (NASDAQ:CRAI) reported operating earnings of $0.5 million or 4 cents per share for the fiscal first quarter of 2010 ended Feb 19, 2010, which substantially fell short of the Zacks Consensus Estimate of 27 cents and from 18 cents reported in the year-ago period.   GAAP net income, including NeuCo-related activity, was $0.3 million or 2 cents per share compared to $0.5 million or 5 cents in the first quarter of fiscal 2008.  Total revenues, excluding … [visit site to read more]

No Surprise Here Posted: 19 Mar 2010 02:39 PM PDT Given that 20 percent of the population is “underemployed” and there is no real sign of a recovery (outside of the stock market, that is), is it any wonder, as the following reports suggest, that those who have jobs are becoming more conscientious, loyal, and willing to keep working longer than in the past? “Recession Scares Workers into Showing Up on Time” (Memphis Business Journal) A bad economy has a good side for managers — more employees are showing up on time. Sixteen percent of … [visit site to read more]

Amdocs Wins Telenet Contract Posted: 19 Mar 2010 02:25 PM PDT Amdocs Corp. (NYSE:DOX), a leading developer of customer relationship management and billing software for communications service providers, has won a contract to deploy the Amdocs Enterprise Product Catalog for Belgian cable MSO Telenet. The Amdocs Enterprise Product Catalog is a part of the company's industry leading new state-of-the-art software suite called 'Amdocs CES 8'.   Specially designed for the broadband industry, CES 8 provides a single platform capable of supporting complex … [visit site to read more]

Turkcell Exceeds, Fitch Affirms Posted: 19 Mar 2010 02:10 PM PDT Turkcell Iletisim Hizmetleri AS (NYSE:TKC) reported fourth quarter 2009 earnings per share of 38 cents per share, up from the Zacks Consensus Estimate of 34 cents per share.   Revenues  In the quarter, revenue contracted by 3.0% year on year to TRY2,260.6 million ($1,473 million) as a result of customer reimbursements to the tune of TRY39 million and repayments to other operators of TRY 21 million based on the Telecommunications Authority's decisions, and lower contributions from its … [visit site to read more]

US Treasury Bonds - What’s Up? Posted: 19 Mar 2010 02:01 PM PDT Government bonds have been trading sideways since the middle of last year as market participants wax and wane about the prospects of the nascent economy recovery. Also, it has not quite been the one-way traffic for yields many pundits have been forecasting as seen from the US Treasury being able to sell paper across the yield curve at lower-than-expected yields. Not subscribing to a meaningful economic recovery under his “new normal” scenario, Bill Gross, the manager of the world’s … [visit site to read more]

Video: Palm Announces Weak Fiscal 3Q Smartphone Sales Posted: 19 Mar 2010 02:01 PM PDT Palm announced that smartphone sales fell drastically during its fiscal 3Q. … [visit site to read more]

Declining Dollar To The Fed: Et Tu, Bernanke? Posted: 19 Mar 2010 02:00 PM PDT Still on the road to moksha… Prices are rising in India – pushed up by the high cost of food. Thanks partly to a disastrous government policy of encouraging the over-use of chemical fertilizer, food prices are shooting up. In a poor country, food is a bigger part of the family budget than in a rich country. India's CPI is rising at about 11%. Flash from the TIMES of India: A man brought his wife to Mumbai from Augangabad. He then took her to the house of someone she didn't know and told … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: CVX, BA, BBY, LYD Posted: 19 Mar 2010 01:59 PM PDT The latest in news, commentary, and information on what’s moving the US equities markets. Watch this broadcast LIVE at 4:00 pm EST daily @ “http://www.nyx.com/marketmonitor” … [visit site to read more]

Comcast Firms SMB Footprint Posted: 19 Mar 2010 01:55 PM PDT Comcast Corp. (NASDAQ:CMCSA), the largest cable MSO of the world, recently completed its proposed acquisition of Cimco Communications Inc, after receiving FCC approval. Cimco is a privately held competitive local exchange carrier in the Chicago area with more than 23,000 customers in the small & medium sized (SMB) commercial business segment. The FCC cleared Comcast for taking over all of Cimco’s operations except Detroit region.  In addition to bringing in a new base of customers, Cimco … [visit site to read more]

ITT Wins U.S. Army Deal Posted: 19 Mar 2010 01:37 PM PDT ITT Corp. (NYSE:ITT) has been awarded a contract by the U.S. Army Contracting Command to provide supplies, food service, transportation, public works, community service, medical, safety, environmental, fire, and postal operations support at Camp As Sayliyah and other facilities in Qatar.   The contract is for a one-year period with options for four additional years and has a total value of $125 million when all options are exercised.  Work will be performed by ITT Systems, based in … [visit site to read more]

Nabi Vaccine Program Advances Posted: 19 Mar 2010 01:21 PM PDT Nabi Biopharmaceuticals (NASDAQ:NABI) has initiated the second phase III clinical trial for NicVAX, an investigational vaccine being developed for the treatment of nicotine addiction and preventing smoking relapse. Results from the first phase III trial are expected at the end of 2010.   An agreement with the US Food and Drug Administration (FDA) has been reached on the study design, protocol and end points for the trial. Nabi has also received confirmation from the European Medicines Agency … [visit site to read more]

ProLogis Signs Leases In Mexico Posted: 19 Mar 2010 01:19 PM PDT ProLogis (NYSE:PLD), a leading global provider of distribution facilities, recently signed 3 new lease agreements spanning about 168,000 square feet of its development portfolio in Mexico. The continued leasing activities show signs of stabilization in the industrial property market fundamentals after a prolonged recession that pushed down the sector. About 108,000 square feet were leased to Steelcase Inc. (NYSE:SCS), a leading office furniture manufacturing company, in Reynosa in the Mexican state … [visit site to read more]

Live From Investment U: The Early Bird Catches The Profits Posted: 19 Mar 2010 01:12 PM PDT Friday, March 19, 2010: Issue #1220 To heck with catching the worm… Following an elegant cocktail reception on Wednesday evening, about 200 "early birds" rolled into Thursday's opening session of the Investment U Conference at 7:00 AM. They weren't interested in catching worms, though. They wanted some contrarian moneymaking ideas in the natural resources area. And they weren't disappointed. When it comes to natural resources, look no further than Rick Rule. He's the founder of … [visit site to read more]

Sprint To Unveil 4G WiMax Phone Posted: 19 Mar 2010 01:05 PM PDT Sprint Nextel (NYSE:S) is on the verge of revolutionizing the US smartphone marketplace as the operator has revealed its plans to introduce its first 4G handset at the CTIA wireless trade show on March 24, 2010, in Las Vegas.   The dual-mode (3G/4G capable) smartphone, called "HTC Supersonic”, will run using Google's (NASDAQ:GOOG) Android platform. The device, which is set to be the first 4G compatible phone in the US, has been reportedly included in Sprint's handset inventory … [visit site to read more]

Has The U.S. Housing Market Turned Yet? Posted: 19 Mar 2010 01:01 PM PDT David Rosenberg, chief economist and strategist of Gluskin Sheff & Associates, yesterday made the following observation: “To be sure, the Case-Shiller index has yet to roll over. But it has slowed, and being a three-month average, it may take time to show deflation again. The LoanPerformance home price index is down for four months running. Freddie Mac’s (NYSE:FRE) conventional home price index fell 0.7% in Q4. RadarLogic’s 25-city house price index is down for two months in a row and in … [visit site to read more]

MGM Mirage Raises $826 Million Posted: 19 Mar 2010 01:00 PM PDT On Wednesday, MGM Mirage (NYSE:MGM) closed a debt offering and raised approximately $826 million. The company used the proceeds from this offering to fulfill certain requirements for its amended credit facility agreement.   The company closed the private offering of $845 million of its 9% senior secured notes due March 2020. This generated net proceeds of $826 million.   MGM Mirage used the proceeds for the prepayment of approximately $820 million of loans under its senior credit … [visit site to read more]

Theravance Raises Funds Posted: 19 Mar 2010 12:50 PM PDT Theravance (NASDAQ:THRX) has decided to raise funds by offering 7.5 million shares. Net proceeds are expected to be utilized for general corporate purposes including research expenses and debt reduction. However, the offer will increase the number of outstanding shares by 12%. We believe the need for additional funds has arisen primarily due the advancement of the company's Relovair Program in collaboration with GlaxoSmithKline (NYSE:GSK). The program, currently in phase III studies, aims to develop … [visit site to read more]

ACE Limited Reports Losses Posted: 19 Mar 2010 12:45 PM PDT Yesterday, ACE Limited (NYSE:ACE) announced its first quarter loss estimates related to the recent catastrophes across its geographical footprint. ACE Limited said that the losses are estimated to be approximately $125 million, including reinstatement premiums, for the natural disasters. This includes losses from the earthquakes in Chile and Haiti, European windstorm Xynthia, the Madeira floods in Portugal, the Australian hailstorms, U.S. winter storms and other catastrophe events across the … [visit site to read more]

Alkermes Pipeline Advances Posted: 19 Mar 2010 12:33 PM PDT Recently, Alkermes Inc. (NASDAQ:ALKS) initiated a multidose early-stage study of its candidate of ALKS 37. ALKS 37 is an orally active, peripherally-restricted opioid antagonist, which has the potential to block the effects of opioid agonists on gastrointestinal motility, commonly termed as opioid-induced constipation (OIC).   The randomized, double-blind, placebo-controlled, repeat-dose early-stage trial is designed to assess the safety, tolerability and pharmacokinetics of daily oral … [visit site to read more]

Acergy Stays Outperform Posted: 19 Mar 2010 12:17 PM PDT Acergy S.A. (NASDAQ:ACGY) is a leading oilfield contractor engaged in the designing, procurement, building, installation and servicing of a range of offshore surface and sub-surface equipment for the oil and gas industry.   In recent times, the company has successfully pursued a strategic shift towards the relatively high-margin deepwater markets (engineering and construction) that have braved commodity pricing and credit market turmoil. Deepwater drilling and subsequent construction … [visit site to read more]

Bombay Dreams Posted: 19 Mar 2010 12:00 PM PDT We have come to Bombay to get a good look at India – at least the part of it you can see from a 10th floor room at the Taj Mahal Hotel. Which isn't much. The air is too dense. Still, we can make out the figures of whole families eating and sleeping on the pavement near the dock. We have never seen families sleeping on the pavement on Regent Street…nor on 5th Avenue. New York and London are great success stories. Turning the pages here, on the other hand, we read a failure story. It is the … [visit site to read more]

Big Mac Index: China’s Yuan Undervalued, Canadian And Aussie Dollars Strong Posted: 19 Mar 2010 11:45 AM PDT The Economist has recently released its latest Big Mac Index, where Norway still reigns supreme with the most expensive burger around. When I was in Oslo a few months ago I tried desperately to get my hands on one of these must be better than average, almost $7 burgers, but to no avail. When hunger struck there was no McDonald's in sight, and I ended up eating at Burger King instead. Clearly not quite the same… More important than my failed expensive burger eating attempt is what the new … [visit site to read more]

Forex Trading: USDJPY A Disappointment Posted: 19 Mar 2010 11:18 AM PDT In a week that saw the BOJ "ease" by raising the liquidity available in the banking sector, the upside move for the USDJPY has been a disappointment.  The pair reached a high in the first hour of trading for the week at 90.83.  On Thursday the high reached 90.77. Today, the high could only reach 90.70.  The low extended to 89.75 but that was for a single hour.  The good news is the price was able to close above the 100 day MA on each of the days but not without a few … [visit site to read more]

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