Mar 11, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

What’s Next For U.S. Stock Markets In Light Of Greece’s Troubles?

Posted: 11 Mar 2010 10:01 AM PST

The recent month of February was quite interesting for U.S. stocks, because while the Dow Jones Industrial Average rose 2.6%, it didn’t exactly take a direct route to those gains: There were eight separate triple-digit moves in the Dow, both up and down.

At the root of that volatility were political and economic developments that challenged the rationale for the huge rally out of the March 2009 low. Bulls were basically rethinking their beliefs that the home-price plunge had abated, … [visit site to read more]


Initial Jobless Claims Edge Down

Posted: 11 Mar 2010 09:12 AM PST

Initial Claims for Unemployment Insurance fell by 6,000 this week to 462,000. However, the 4-week moving average, which is generally considered a better measure given the high degree of volatility in the weekly numbers, rose by 5,000 to 475,500.
Starting about a year ago, when the weekly level was at 657,000 and the 4-week average was at 646,750, initial claims began a steep decline that lasted until about the end of 2009, but so far this year they have been trending higher again.
The shape and … [visit site to read more]

BP Acquires Devon Assets

Posted: 11 Mar 2010 09:05 AM PST

UK oil super major, BP plc. (NYSE:BP) is buying a bunch of assets of US independent oil and gas producer Devon Energy Inc (DVN) for $7.0 billion in cash. These include properties in offshore Brazil, Azerbaijan and the US deepwater Gulf of Mexico (GoM). 

Offshore Brazil assets include interests in ten exploration blocks of Brazil, including seven in the prolific Campos basin. For Azerbaijan assets, BP will acquire Devon's interest in the Azeri-Chirag-Gunashli (ACG) development in the … [visit site to read more]

What Does The Increase In Chinese Inflation Mean For The Global Economy?

Posted: 11 Mar 2010 09:01 AM PST

News this morning that China’s inflation rate has hit a 16-month high is garnering significant attention.

China’s economy is only one-fifth the size of the U.S. economy while China’s population is more than four times that of the United States. In fact, China’s population is approximately one-fifth of the entire world’s population. Clearly, the People’s Republic of China represents a huge growth opportunity in this century.

Bloomberg highlights this inflation news this morning in … [visit site to read more]

Genomic Health Stays At Neutral

Posted: 11 Mar 2010 08:50 AM PST

We maintain our Neutral recommendation on Genomic Health Inc. (NASDAQ:GHDX) with a target price of $20.00.
 
Genomic Health, founded in 2000 and headquartered in Redwood City, California, is an oncology-based biotech company focused on the development and commercialization of genome-based clinical tests to diagnose cancer that allow physicians and patients make individualized treatment decisions. 

The company's first product, Oncotype DX launched in January 2004, is used for early stage … [visit site to read more]

Liberty Global Expanding Wideband

Posted: 11 Mar 2010 08:35 AM PST

Liberty Global Inc. (NASDAQ:LBTYA) is rapidly deploying Wideband network based on EuroDOCSIS 3.0 technology in several European markets. Liberty Global, the largest cable MSO in Europe is facing intensified competition in several European markets from growing fiber-to-the home network deployment. Implementation of Wideband will enable the company to deliver superfast100 Mbps downstream speed. 

Management has undertaken a plan to deploy EuroDOCSIS 3.0 in 80%-90% of all UPC broadband divisions … [visit site to read more]

Forex Trading: EUR/USD Also In Large Wedge Formation

Posted: 11 Mar 2010 08:34 AM PST

The EUR/USD can also be seen in a large wedge formation setting up since March 2nd, 2010. The pair has been in a tightening range since that time with lows getting higher and highs getting lower. This pattern typically indicates a powerful move in one direction or the other. The pair has currently broken just above the top trendline and traders are trying to see if the pair will hold above the 1.3670 level. This would pave the way for further movements to the upside. The next level of … [visit site to read more]

Direxion Launches Six New Leveraged ETFs

Posted: 11 Mar 2010 08:30 AM PST

Direxion, a pioneer in the 3x leveraged ETF space, announced Thursday the launch of six new funds, bringing the firm's total product offerings to 34, and represent firsts for both the company and the ETF industry. The leveraged ETFs beginning trading on Thursday include:

Ticker
ETF
Index
Leverage

(BRIL)
Daily BRIC Bull 2x Shares
BNY Mellon BRIC Select ADR Index
200%

(INDL)
Daily India Bull 2x Shares
Indus India Index
200%

(SOXL)
Daily Semiconductor Bull 3x Shares
PHLX … [visit site to read more]

Motorola’s Strategic Move In China

Posted: 11 Mar 2010 08:20 AM PST

Motorola Inc. (NYSE:MOT) has taken a strategic decision to enable the smooth sailing of its newly launched 3G smartphones in China. The company has entered into a global agreement with Microsoft Corp. (NASDAQ:MSFT) to deploy the latter's Bing services on its 3G smartphones. Users will enjoy a pre-loaded Bing bookmark on their mobile browser and an enhanced search widget with Bing integration. Search and Map capabilities through Microsoft will initially be available in China, starting in the first … [visit site to read more]

Sony Out With Playstation `MOVE’

Posted: 11 Mar 2010 08:05 AM PST

Sony Corp. (NYSE:SNE) plans to launch its new motion-control video game device named 'PlayStation Move' in late 2010. The company displayed the new device at a Game Developer's event in San Francisco . The shares of Sony surged 1.35% (or $0.50) following the company's announcement.
 
The new 'PlayStation Move' includes a motion controller that allows game players to control their games via body movements. It also includes the PlayStation Eye, a camera that helps in the movement … [visit site to read more]

Kodak Finalizes Tender Offer

Posted: 11 Mar 2010 08:00 AM PST

Eastman Kodak Company (NYSE:EK) announced the expiration and final results of its tender offer to purchase up to $200 million of its outstanding 7.25% Senior Notes due 2013. The tender offer was made pursuant to an offer to purchase on February 3, 2010. The tender offer expired on March 9, 2010.

Holders of 2013 notes who validly tendered their 2013 Notes will receive $950 per $1,000 principal amount of 2013 notes accepted in the tender offer. Holders of 2013 Notes who validly tender their 2013 … [visit site to read more]

Traders Fear Chinese ‘Bubbles’

Posted: 11 Mar 2010 07:55 AM PST

The big story on the screens this morning comes to us from China where inflation has reached a 16 month high. These dramatic headlines have sent currency investors heading back to the Japanese yen and US$ as many of these stories suggest the Chinese will be stepping in to slow the Chinese economy. But if you look beyond the '16 month high' headlines, you will find that consumer prices rose just 2.7% in February from a year earlier, and increase yes, but hardly the stuff of a 'bubble … [visit site to read more]

Hug A Tree… Bag Some Profits

Posted: 11 Mar 2010 07:54 AM PST

Over the past two decades, the world's most wealthy and powerful people – pension funds, endowments and insurance companies – have plowed $40 billion into this asset class. That's up from just $1 billion in 1989.
In fact, the so-called "smart money" has invested heavily in this area ever since the days of Robin Hood.
And there's your hint…
Historically, timber is one of the market's best-performing areas.
As Louis Basenese says, "I'll confess that trees hardly lend … [visit site to read more]

CME Collaborates With India ’s NSE

Posted: 11 Mar 2010 07:50 AM PST

In an attempt to expand its presence in the emerging markets, CME Group Inc. (NASDAQ:CME) has partnered with India's largest stock exchange National Stock Exchange (NSE) for a cross-listing pact that includes license agreements covering benchmark indexes for the U.S. and Indian equities. Besides, CME and NSE have also entered into a Memorandum of Understanding (MoU) for impending collaboration related to development and distribution of financial products and services.

According to the … [visit site to read more]

Forex Trading: GBP/USD Looks Like A Giant Coil Spring - Is It Ready To Pop?

Posted: 11 Mar 2010 07:49 AM PST

The GBP/USD looks like a giant coil spring, or a wedge formation on the 1 Hour chart, as we start to see signs of the three's a crowd rule. This rule states that when the price and both the 100 and 200 MA's converge, there is bound to be a move in one direction or another. As traders we now do our analysis and get prepared in either direction as the market loads up pressure on the GBP/USD to move.

In the 5 Min chart, we can see the pair testing trend line resisntance in the past hour. The … [visit site to read more]

McDermott Inks JV With Indian Firm

Posted: 11 Mar 2010 07:35 AM PST

Energy-focused engineering and construction company McDermott International (NYSE:MDR) announced the formation of a joint venture with India-based power solutions provider Thermax Ltd. to manufacture highly efficient sub-critical and super-critical boilers and pulverizers for the Indian power sector. The venture, to be based in the Indian city of Pune , will be 51% owned by Thermax, while Babcock & Wilcox Power Generation Group (a subsidiary of McDermott) will control the remaining … [visit site to read more]

Timberland Stocks: Why It’s Time To Knock On Wood For Profits… Literally

Posted: 11 Mar 2010 07:32 AM PST

Thursday, March 12, 2010: Issue #1214
If you're not following the money into timberland stocks, you should. Here's why…

Timberland has outperformed the S&P 500 since 1910.
In recent history, timber has outperformed the market significantly. Since 1987, the NCREIF Timberland Index climbed by an average of 15% per year, compared to roughly 11% for the S&P 500.

Such strong outperformance boils down to one factor – biology.
Biology accounts for 65% to 75% of timberland's … [visit site to read more]

Skechers To Outperform

Posted: 11 Mar 2010 07:30 AM PST

We recently upgraded the recommendation on Skechers U.S.A., Inc. (NYSE:SKX) the designer, marketer and distributor of footwear, to Outperform from Neutral. 

We believe, Skechers' sustained focus on new lines of products, opening of new retail stores and distribution channels, and the development of new international distribution agreements, should facilitate the increase in sales and profitability. With growing operations in Brazil, China, Hong Kong and Chile, the company remains on … [visit site to read more]

Nordstrom To Open New Rack Stores

Posted: 11 Mar 2010 07:30 AM PST

Nordstrom Inc. (NYSE:JWN), a leading fashion specialty retailer, recently announced plans to open a new 35,351 square feet Nordstrom Rack at Burbank Empire Center, a premier shopping center in California. Burbank Empire Center spans across 900,000 square feet of space and hosts leading retailers such as Target Corp. (NYSE:TGT), Best Buy (NYSE:BBY), and Costco (NASDAQ:COST).
 
The new Nordstrom Rack is expected to open in Oct 2010 and would offer merchandise at fire-sale prices with discounts of … [visit site to read more]

Video: Asian Markets Mostly Positive

Posted: 11 Mar 2010 07:29 AM PST

The major Asian/Pacific markets were mostly on the upside this session following significant gains in commodity-related stocks. … [visit site to read more]

AIG Sees $490M On Stake Sale

Posted: 11 Mar 2010 07:15 AM PST

American International Group Inc.'s (NYSE:AIG) expects $490 million from its stake sale in the reinsurance company Transatlantic Holdings Inc. (NYSE:TRH).
 
Last Friday, the company announced its plan to sell its remaining 14% stake in Transatlantic owned by American Home Assurance Company (AHAC), an AIG subsidiary. 

Last Tuesday, the offering of 8,466,693 shares of Transatlantic's common stock was priced at $53.35 each. The underwriters of the offering include Goldman Sachs Group … [visit site to read more]

Arrow To Repurchase Shares

Posted: 10 Mar 2010 03:00 PM PST

Arrow Electronics, Inc. (NYSE:ARW) recently announced that its Board of Directors has approved a share repurchase program of $100 million. The company expects to repurchase shares in calibrated amounts to offset the dilution from the granting of equity-based compensation plans.
Arrow had previously announced similar programs in 2006 and 2007, which resulted in the repurchase of $200 million of common stock.
Fourth Quarter Results Beat Expectations
Last month, results for the fourth quarter beat … [visit site to read more]

General Dynamics Wins Contract

Posted: 10 Mar 2010 02:45 PM PST

General Dynamics Land Systems-Canada, a business unit of General Dynamics (NYSE:GD), was awarded a $41.5 million contract for spare parts for the RG-31 Mk5E vehicles under the Mine Resistant Ambush Protected (MRAP) vehicle program. The contract was awarded by the U.S. Marine Corps Systems Command (MCSC).
General Dynamics’ Combat Systems performance was affected in fiscal 2009 due to lower volume on the group’s mine-resistant, ambush-protected (MRAP) vehicle deliveries. However growth in the MRAP … [visit site to read more]
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