Mar 4, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

General Dynamics Ups Dividend

Posted: 04 Mar 2010 11:14 AM PST

General Dynamics (NYSE:GD) raised its quarterly dividend to 42 cents per share on the company’s common stock, payable May 7, 2010, to shareholders of record as on April 9.  The dividend represents a 10.5% increase on the previous quarterly dividend of 38 cents.
 
General Dynamics is a well-run company that is likely to continue to deliver on expectations driven by strong revenue growth, margin expansion and cash flow generation. Strong defense outlays should further improve the … [visit site to read more]


Profit From Rising Interest Rates With These 3 ETFs

Posted: 04 Mar 2010 11:01 AM PST

Wall Street is obsessed with interest rates. Many consumers are, too, especially anyone who wants to buy a home or car.

There’s a good reason for this: Debt - or you might call it “leverage” - is the lubricant that keeps the financial markets moving. Imagine a car without oil … it would soon grind to halt. The same is true of the modern economy.

We’ve been enjoying historically low interest rates for the last decade … even more so in the last two years. You know the party is going … [visit site to read more]

Conexant’s Refinancing Plan

Posted: 04 Mar 2010 10:57 AM PST

Conexant Systems, Inc. (NASDAQ:CNXT) announced a comprehensive refinancing plan designed to improve its balance sheet and address its liquidity needs.
Conexant is offering new 11.25% senior secured notes due 2015 aggregating $175 million. The company is also offering approximately 14 million shares of its common stock.
Management expects that this plan will provide sufficient financial flexibility to refinance its outstanding 4% convertible subordinated notes due 2026.
The proceeds from these … [visit site to read more]

On Productivity

Posted: 04 Mar 2010 10:44 AM PST

The nation’s productivity, or output per hour worked, increased at a seasonally adjusted annual rate of 6.9% in the fourth quarter. That is up substantially from the preliminary estimate of a 6.2% increase.
The 6.9% is a slowdown from the 7.8% rate in the third quarter and the 7.6% rate in the second, but is still extremely impressive. Actually, all the more impressive coming on top of the previous gains.  Meanwhile, unit labor costs, or how much it costs a business in wages and fringe … [visit site to read more]

Video: Anheuser-Busch InBev Pours Out 4Q Profits Despite Weak Beer Sales

Posted: 04 Mar 2010 10:40 AM PST

Assisted by cost cuts and price hikes, Budweiser brewer Anheuser-Busch InBev reported a 4Q profit. However, global beer sales were on the downside. … [visit site to read more]

Nasdaq To Do Share Buyback

Posted: 04 Mar 2010 10:39 AM PST

After seeking approval from its Board on March 2, Nasdaq OMX Group Inc. (NASDAQ:NDAQ) announced plans to repurchase its common stock worth $300 million that will be funded from its existing cash balances. However, the stock buyback program may be conducted at intervals depending upon market conditions through various strategies such as open market purchase, privately-negotiated transactions or block purchase techniques.
 
Additionally, the Board of Nasdaq has also decided to shell out another … [visit site to read more]

Stagflation Ahead?

Posted: 04 Mar 2010 10:36 AM PST

Repeating a familiar pattern, U.S. nonfarm productivity surged in the fourth quarter as unit labor costs fell, indicating that businesses are making the most of a weak jobs market and squeezing more profit out of each worker.

Not surprisingly, many economists viewed the report as a positive sign. If companies keep earning more money, the logic goes, then the economy’s return to growth won’t be far behind.
But is that the most likely outcome? Isn’t it also possible that if hiring remains … [visit site to read more]

Zions’ Stock Update

Posted: 04 Mar 2010 10:23 AM PST

Zions Bancorporation (NASDAQ:ZION) recently announced the beginning of an exchange offer to replace any or all of its currently outstanding non-convertible subordinated notes into shares of Zions’ common stock. This will be based on the relevant price, the applicable note price and the ratio of applicable note price to the relevant price. Additionally, the company will also pay cash for any accrued and unpaid interest up to but excluding the settlement date on any notes accepted in the exchange … [visit site to read more]

Video: Market Movers: ANF, KO, ZUMZ, FDX, DIS, DIN

Posted: 04 Mar 2010 10:14 AM PST

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

Hot Topic Comp Sales Down

Posted: 04 Mar 2010 10:07 AM PST

Hot Topic Inc. (NASDAQ:HOTT) – a shopping mall-based specialty retailer operating the Hot Topic and Torrid store concepts across the U.S. as well as the e-space music discovery concept ShockHound – reported a 7% decrease in February 2010 same-store sales, compared to a 10.8% increase in the year-ago period.
 
Total net sales during the month decreased 5.3% to $54.2 million, compared to the previous year. Net sales in the Hot Topic segment fell 10.2% year over year, and increased 10.4% in … [visit site to read more]

Borrow And Spend Economics To Pay For Borrowing And Spending

Posted: 04 Mar 2010 10:00 AM PST

Okay, I will admit that we had a little accidental gunfire around here recently, but nobody was hurt, and all that really happened is that I wasted a lot of very expensive ammunition and scared the hell out of a lot of people, including myself, a commotion which instantly activated my Amazing Mogambo Reflexes (AMR), making me drop the delicious Hostess Cupcake that I was noisily eating and take cover on the floor, falling, as I did, on top of the aforesaid cupcake, smashing it all over myself, … [visit site to read more]

What’s Pushing Gold Up, Down And All Around These Days?

Posted: 04 Mar 2010 09:55 AM PST

Uncertainty about the pace of the economic recovery both at home and abroad, as well as a currency that’s in flux, has gold and gold exchange traded funds (ETFs) responding in kind.

What’s pushing gold up, down and all around these days?

Concern about Greece. Thankfully, the debt-riddled country has pushed through billions in budget cuts. While they’ve sparked unrest in the form of strikes, this also means that the European Union could extend a bailout package to further assist the … [visit site to read more]

Video: Positive Jobless Claims Figures Boost Risk Appetite

Posted: 04 Mar 2010 09:54 AM PST

Higher-yielding, riskier assets were on the upside for a while this session following mostly positive economic data showing an improvement in US jobless claims figures. … [visit site to read more]

St. Jude Receives Approval

Posted: 04 Mar 2010 09:52 AM PST

St. Jude Medical Inc. (NYSE:STJ) recently received the CE Mark approval to market its Trifecta valve in Europe. The Trifecta valve is a pericardial aortic stented tissue valve used to repair a patient's diseased, damaged or malfunctioned aortic heart valve.
 
The valve has several features that make it the preferred choice for cardiac surgeons. The valve offers an excellent hemodynamic performance, or nearly unobstructed blood flow from the heart to the rest of the body. Available in … [visit site to read more]

Video: Crude Slides On Dollar Strength

Posted: 04 Mar 2010 09:40 AM PST

Front month crude prices were on the downside this session following strong gains for the US dollar. … [visit site to read more]

Altera Narrows Guidance

Posted: 04 Mar 2010 09:37 AM PST

Chipmaker Altera Corporation (NASDAQ:ALTR) revised its outlook for the first quarter of 2010. The company now expects revenues to be up 7% – 10% sequentially compared to the previous guidance of 5 – 10%. The new outlook implies a revenue guidance of $390.5 million – $401.5 million.
 
Altera expects solid growth from new products in the first quarter. All four vertical market segments (Telecom & Wireless, Industry Automation, Military&Auto, Networking, Computer & Storage and … [visit site to read more]

Red Robin Upgraded To Neutral

Posted: 04 Mar 2010 09:19 AM PST

We recently upgraded our recommendation on Red Robin Gourmet Burgers Inc. (NASDAQ:RRGB) to Neutral from Underperform with a target price of $21.00. After a difficult year, the company now expects a turnaround in 2010 as the economy gradually revives.
 
Red Robin will now emphasize more on brand awareness through a national advertising campaign, and focus on cost control initiatives in fiscal year 2010. Moreover, to enhance the perception of value and drive traffic, the company is remodeling … [visit site to read more]

ETFs - Why You Should Learn How To Invest Outside Of Stocks…Immediately

Posted: 04 Mar 2010 09:17 AM PST

By Chris Weber

A year ago I was getting calls from old friends saying that they were scared to be in stocks any longer.

These were people who just had bought and held for decades. In fact, a year ago was the right time to start buying stocks, not selling them.

Nowadays, I see the opposite comments. People are proud to own stocks. Of course they are… since they’ve risen 60% in the past year.

As one reader put it (in the February 24 review of my letter in www.stockgumshoe.com/reviews, a … [visit site to read more]

I’m Formally Declaring A Fiscal State Of Emergency…

Posted: 04 Mar 2010 09:05 AM PST

Thursday, March 4, 2010: Issue #1209
"Three years of record tax increases coupled with an economy on the mend have lifted the financial fortunes of all but six states."
That's an excerpt from an Associated Press article that ran on January 28, 1984.
Back then, the United States was emerging from the oil shortage-induced recession of the late 1970s, caused by the new regime in Iran. And U.S. states were leading the way back to prosperity, with only six of them running fiscal deficits. … [visit site to read more]

Are Oil And Stocks On The Verge Of “Decoupling”?

Posted: 04 Mar 2010 09:01 AM PST

Does this week’s price action herald an end to the “risk on/risk off” relationship between oil and equity prices?

Chances are you’ve heard about “the great decoupling.” This phrase has been in vogue for some years now. It describes the belief that emerging markets will break away, or “decouple,” from the aging West in terms of long-term economic results.

It used to be that emerging markets were tightly linked, or “coupled,” to the West in that, when a Western country sneezed, the … [visit site to read more]

BJ’s Misses By A Penny

Posted: 04 Mar 2010 08:57 AM PST

BJ's Wholesale Club Inc. (NYSE:BJ) recently reported fourth-quarter 2009 results. The quarterly earnings of 95 cents a share, missed the Zacks Consensus Estimate by a penny, but climbed 6.7% from 89 cents delivered in the prior-year quarter.
 
Management now expects earnings in the range of 40 cents to 45 cents a share for first-quarter 2010, and between $2.54 and $2.64 for fiscal year 2010. The first-quarter earnings guidance remained in line with the current Zacks Consensus Estimate of … [visit site to read more]

Safeway’s Guidance Disappoints

Posted: 04 Mar 2010 08:42 AM PST

Recently, Safeway (NYSE:SWY) provided its outlook for 2010. The company expects earnings per share (EPS) in the range of $1.65 − $1.85, lower than the Zacks Consensus Estimate of $1.88. Safeway did not have an impressive 2009 as sales dropped during the four consecutive quarters.
 
For 2009, the company's earnings came in at $1.74 compared to $2.21 in 2008. Safeway expects to spend $900 million to $1 billion on capital expenditures this year and anticipates generating free cash flow of … [visit site to read more]

Forex Trading: EURUSD Fall On Deutsche Bank Rating Decline

Posted: 04 Mar 2010 08:41 AM PST

The EURUSD has fallen through the 200 hour MA at the 1.3583 level and moved to the 61.8% retracement of the move up from March 2nd.  That level comes in at the 1.3551 level.  Now, expect seller against the 1.3583/86  level (see chart above), with next support at the 1.3551 adn 1.3514.  Banking and country debt concerns in the Eurozone should keep pressure on the … [visit site to read more]

Video: Wendy’s Dishes Out A Narrow 4Q Loss

Posted: 04 Mar 2010 08:40 AM PST

Wendy’s/Arby’s Group (WEN) announced Thursday that it lost money during the 4Q as sales kept sliding on less customer spending due to the weak economy. … [visit site to read more]

Good News On Initial Claims

Posted: 04 Mar 2010 08:39 AM PST

After about two months of moving in the wrong direction, we finally got some good news on the Initial Claims for Unemployment Insurance front. Initial claims dropped by 29,000 to 469,000. Prior to the start of 2010, we had been in a steep downtrend, and we are well below the 643,000 level of a year ago.
The number was just slightly better than the consensus expectations of 470,000 new claims. This week’s decline brought the 4-week moving average down by 3,500 to 470,750. The weekly numbers can … [visit site to read more]

Merck Presents Positive Data

Posted: 04 Mar 2010 08:33 AM PST

Recently, Merck (NYSE:MRK) presented positive data from two phase III trials of a combination of mometasone furoate and formoterol fumarate at the American Academy of Allergy, Asthma & Immunology (AAAAI) annual meeting. A New Drug Application (NDA) for the combination is currently under review by the US Food and Drug Administration (FDA). The company has also submitted a Marketing Authorization Application (MAA) to the European Medicines Agency.
 
The investigational drug combines the … [visit site to read more]

Forex Trading: USDCAD Did Not Hold Support At 1.0307 And Sells Off.

Posted: 04 Mar 2010 08:19 AM PST

Bias back to the downside on the failure.  1.0307 still key level for the pair on the topside … [visit site to read more]

Australian Dollar: Bounce

Posted: 04 Mar 2010 08:18 AM PST

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

Canadian Dollar: Rebound In Sight

Posted: 04 Mar 2010 08:18 AM PST

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

BP Outlines Business Plans

Posted: 04 Mar 2010 08:16 AM PST

After saving nearly $4 billion in costs last year, UK oil super major BP Plc. (NYSE:BP) is aiming for a $3 billion improvement in the company’s pre-tax profits in the next couple of years. The company also anticipates an average production growth of 1% to 2% per year to 2015. 
 
To accomplish these targets, the company is setting out various plans for the Downstream and Upstream segments. Besides that BP is also focused on low-carbon businesses, including US onshore wind power, biofuels … [visit site to read more]

Video: “Retail Sales Are Really Pushing The Markets Today”

Posted: 04 Mar 2010 08:03 AM PST

Floor trader Alan Valdes gives his reasoning behind this session’s positive results and whether or not the rise is likely to continue as the markets move forward. … [visit site to read more]

A Comprehensive Look At Investor Sentiment

Posted: 04 Mar 2010 08:02 AM PST

Figure 1 is a weekly chart of the S&P500. The indicator in the lower panel is a composite of the 4 sentiment measures posted to this website every weekend: the “dumb money”, the “smart money”, company insiders, and the Rydex asset data. It takes 13 data inputs to make this one indicator!

When the indicator is at or below the red line, it suggests a combination of overly optimistic investors or pessimism amongst the “smart money”. Under these conditions, equities will continue to grind … [visit site to read more]

Forex Trading: USDCAD. Look For Support At 1.0307 Area

Posted: 04 Mar 2010 07:59 AM PST

The USDCAD made new lows today and has bounced higher. The price is above the low from March 2nd at the 1.0307 level and this area is now support for the pair.  The 100 (1.0305) and and 200 bar MAs (1.0311) on the 5 minute chart are at the area and they too should provide a level to buy against.  If the price goes below the level, the bias turns back down. Key level for dip/countertrend … [visit site to read more]

BioScrip Revenues Slide

Posted: 04 Mar 2010 07:58 AM PST

BioScrip Inc. (NASDAQ:BIOS) reported fourth-quarter earnings of 99 cents per share, including the impact of items such as the reversal of deferred tax valuation allowance of $41.1 million, expenses of $1.8 million associated with the pending acquisition of Critical Homecare Solutions Inc. and $4.3 million of incentive compensation expense relating to the employee compensation program.
 
Excluding one-time items and including stock-based compensation expense, BioScrip reported fourth quarter … [visit site to read more]

Google’s Failure In China… Revisited

Posted: 04 Mar 2010 07:53 AM PST

Back on January 28, I wrote an article about Google's big failure in China. I detailed exactly why the giant tech corporation fell so hard over there even while doing so well in the Western world.
My analysis stirred up a real hornet's nest – if you read it, I'm sure you can understand why – and generated a lot of comments.
Let me begin by saying that I appreciate the positive replies and I understand the negative ones. Any subject matter dealing with China and free speech – in any … [visit site to read more]

ABM Lags Zacks Consensus

Posted: 04 Mar 2010 07:46 AM PST

ABM Industries Inc. (NYSE:ABM) recently reported fiscal first-quarter earnings of 27 cents per share, which is below the Zacks Consensus Estimate of 32 cents, but higher than the prior year earnings of 25 cents per share. Despite lower year-over-year revenues in three of four segments, ABM managed to post higher profits in the quarter through aggressive cost control measures. 

Total revenue in the quarter declined 2.0% year-over-year to $869.9 million. The company's sales are … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: WMT, BA, BUD

Posted: 04 Mar 2010 07:44 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]

Three Reasons The Nickel ETF (JJN) Is Soaring

Posted: 04 Mar 2010 07:40 AM PST

Since the most recent global recession began (and the subsequent stimulus measures took effect), many of the relationships between asset classes that have historically guided investment decisions have weakened considerably. The correlation between U.S. equity and bond markets has gone through the roof, an indication of an increasingly liquidity-driven market. Commodities, which have traditionally been embraced for their low correlation with stocks and bonds, have frequently moved in lock step … [visit site to read more]

Greek Spending Cuts Lead To Civil Unrest

Posted: 04 Mar 2010 07:37 AM PST

What a day the currencies had yesterday! The euro (EUR) gained ground all the way back to 1.3730 (but saw some profit taking at the end of the day) and all the other currencies followed in step… Now… There's two ways to look at this… Either the euro is like a star that's getting ready to burn out… (It always shines brightest before it burns out), or… It's like a star that had been covered up by another planet, and is coming back into view!
I tend to think it's the latter of … [visit site to read more]

Forex Trading: GBPUSD Tests The 100 Hour MA Support

Posted: 04 Mar 2010 07:33 AM PST

The GBPUSD is coming back down and looks to test the 100 hour MA at the 1.5048 level.  A break of the level will next look to targe the low for the day at 1.5021 and then the 1.5001 level which is the 38.2% of the last move higher.  A move below the 100 hour MA is a  disappointment for those looking at the the breakout yesterday and the new high … [visit site to read more]

Zumiez Same-Store Sales Increase

Posted: 04 Mar 2010 07:31 AM PST

Zumiez Inc. (NASDAQ:ZUMZ), a leading specialty retailer of action sports related apparel, footwear, equipment and accessories, reported better-than-expected same-store sales in Feb 2010. Consequently, Zumiez's shares jumped more than $3.75 to $19.78 in early morning trade on the Nasdaq. 

Total net sales for the four-week period ended Feb 27, 2010 increased 19.6% to $27.6 million, compared to $23.1 million in the year-ago period. Zumiez's comparable store sales increased 11.2% during Feb … [visit site to read more]

Video: Asian Markets Mostly On The Downside

Posted: 04 Mar 2010 07:31 AM PST

The major Asian/Pacific markets, with exception to Australia’s S&P/ASX 200 index, were mostly on the downside following steep declines in domestic banking shares. … [visit site to read more]

Mutual Funds: Top 5 International Bond Funds

Posted: 04 Mar 2010 07:20 AM PST

International bond markets presently constitute 60% of the available fixed-income investment opportunities worldwide. This includes bond issues from emerging economies and non-government entities, such as European corporations. Since interest rate fluctuations differ from country to country, international bonds are another way to balance downturns in the U.S. markets. This is because they show little correlation with domestic equities and only moderate correlation with investment grade domestic … [visit site to read more]

Morning News Notes: 3/4/2010

Posted: 04 Mar 2010 07:20 AM PST

The “Morning News Notes” as prepared by TL…Monster Worldwide Employment Index, Blackrock buying US Treasurys, Greece, healthcare, Volcker rules, and merger and acquisition activity surges to December, 2008 highs.

Just click on the link or the coffee mug below.

“Morning News Notes”: March 4, … [visit site to read more]

Boston Scientific Stays At Neutral

Posted: 04 Mar 2010 07:16 AM PST

We recently reiterated our Neutral rating on Boston Scientific Corp. (NYSE:BSX) with a target price of $8 based on a P/E of 18.6x our fiscal 2010 EPS estimate of 43 cents. 

Boston Scientific reported strong fourth quarter and fiscal 2009 results. For the fourth quarter, earnings per share came in at 20 cents, beating the Zacks Consensus Estimate of 13 cents and the year-ago figure of 12 cents. For fiscal 2009, earnings per share came in at 78 cents, surpassing the Zacks Consensus Estimate … [visit site to read more]
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