Daily Markets - Financial News And Opinions

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• This Chocolate Isn’t Sweet
• The Foreign Diversification Myth?
• Narrower Q4 Loss For AMAG
• Stock Market News Briefs: AutoZone, Inc., Fresh Del Monte Produce, Inc., General Motors Corporation, Goldman Sachs Group, Inc. (The), Kimberly-Clark Corporation, UBS AG, Wells Fargo & Company, Westar Energy, Inc., Dell Inc., QUALCOMM Incorporated, Staples, Inc., Tech Data Corporation
• Forex Trading: USDJPY Non-trending As The Pause Continues
• Deckers Outdoor Beats Estimate
• Allos Extends Losses
• Swiss Franc: The Upside Prevails
• Japanese Yen: Caution
• British Pound: The Upside Prevails
• Euro: The Upside Prevails
• Alcatel-Lucent Slips
• Nasdaq Initiated As Neutral
• Forex Trading: GBPUSD Holds The 61.8% Retracement And Squeezed Higher
• Staples Earnings In Line
• Forex Trading: EURUSD Continues To Consolidate In The Range As The Market Awaits Directional Clues.
• Details On Latest AIG Sale
• Interesting Chart: Stock Market Vs. Excess Credit (”The Juice”)
• Bulls Vs. Bears: Who’s Leading The Pack?
• Lower Chinese PMI: Darkened Outlook For Commodities?
• Bull Of The Day: BHP Billiton (BHP)
• Stock Buy: Cardinal Health
• Stock Buy: North American Energy Partners Inc.
• Stock Buy: Littelfuse, Inc
• Stock Buy: Starbucks Corp.
• Bear Of The Day: Ryder System, Inc. (R)

This Chocolate Isn’t Sweet Posted: 02 Mar 2010 07:17 AM PST Fundamentals Cocoa futures continued their slide, falling to a six-month low on demand concerns. Traders are concerned that the sharp appreciation from lows made in late 2008 may dissuade buyers. Chocolatiers have looked to cut costs in the past by decreasing the amount of Cocoa in their finished product or reducing the size and keeping the same content for higher end brands. To make matters worse for Cocoa bulls, Ivory Coast deliveries have climbed 2.6 percent above last year’s figures. The … [visit site to read more]

The Foreign Diversification Myth? Posted: 02 Mar 2010 07:11 AM PST It’s become something of a mantra among U.S. investors: diversify overseas to boost returns and protect assets. In recent years, investing in foreign markets has been widely seen as a way to counter the risks associated with investing at home. These risks include the fallout from America’s ongoing fiscal woes, the restructuring of an overly consumer-dependent economy, and a relentless long-term decline in the value of the dollar. Proponents also argue that it is the only way to capitalize on … [visit site to read more]

Narrower Q4 Loss For AMAG Posted: 02 Mar 2010 07:00 AM PST AMAG Pharmaceuticals Inc. (NASDAQ:AMAG) reported a fourth-quarter fiscal 2009 net loss of $18.4 million, or $1.07 per share, which was lower than the year-ago loss of $21.8 million, or $1.28. The Zacks Consensus Estimate for the reported quarter was a loss of $1.08.   The lower loss in the quarter was attributable to higher revenues following the approval and subsequent launch of the Feraheme injection. The higher revenue in the quarter more than offset the higher operating costs and expenses … [visit site to read more]

Stock Market News Briefs: AutoZone, Inc., Fresh Del Monte Produce, Inc., General Motors Corporation, Goldman Sachs Group, Inc. (The), Kimberly-Clark Corporation, UBS AG, Wells Fargo & Company, Westar Energy, Inc., Dell Inc., QUALCOMM Incorporated, Staples, Inc., Tech Data Corporation Posted: 02 Mar 2010 06:49 AM PST  Qualcomm (NASDAQ:QCOM) raised its dividend 12% to 19 cents and announced plans to buy back $3 billion in shares  Fresh Del Monte Produce (NYSE:FDP) beat estimates with fourth quarter earnings of 36 cents a share, two cents above projections, on $872.1 million in revenues, which beat expectations of $829.5 million  Staples’s (NASDAQ:SPLS) fourth quarter earnings of 38 cents were in line with analysts’ expectations, as were revenues of $6.41 billion. The company provided full-year … [visit site to read more]

Forex Trading: USDJPY Non-trending As The Pause Continues Posted: 02 Mar 2010 06:47 AM PST The USDJPY is non-trending between the 100 hour MA at 89.33 currently (blue line in the chart above), and a floor at the 88.73 area.  Additional upside resistance comes in at the 89.45. The USDJPY has been pressured on the last move down, since peaking at 92.14 on Feb 19th. The pair has been consolidating that move lower over the last 3 trading days with the price trading between resistance at the 89.45 level and support at the 88.73/82 area.  This has allowed the 100 hour MA to … [visit site to read more]

Deckers Outdoor Beats Estimate Posted: 02 Mar 2010 06:45 AM PST Deckers Outdoor Corporation (NASDAQ:DECK), the maker of sheepskin boots and slippers, recently delivered better-than-expected fourth-quarter 2009 results on the heels of strong demand for the UGG brand product line, new product introductions, and effective inventory management.   The quarterly earnings of $5.22 per share surpassed the Zacks Consensus Estimate of $4.32, and soared 28.9% from $4.05 posted in the prior-year quarter. Management now expects first-quarter 2010 earnings to fall by … [visit site to read more]

Allos Extends Losses Posted: 02 Mar 2010 06:30 AM PST Allos Therapeutics' (NASDAQ:ALTH) fourth quarter loss per share came in at 22 cents, worse than the Zacks Consensus Estimate of 20 cents and a loss of 18 cents reported in the year-ago period. For 2009, the company reported a loss per share of 81 cents compared to 69 cents in 2008. In Sep 2009, Allos received accelerated approval from the US Food and Drug Administration (FDA) for Folotyn for the treatment of patients with relapsed or refractory PTCL. During the third quarter conference call, the … [visit site to read more]

Swiss Franc: The Upside Prevails Posted: 02 Mar 2010 06:18 AM PST Update on supports and resistances. … [visit site to read more]

Japanese Yen: Caution Posted: 02 Mar 2010 06:18 AM PST Update on supports and resistances. … [visit site to read more]

British Pound: The Upside Prevails Posted: 02 Mar 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

Euro: The Upside Prevails Posted: 02 Mar 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

Alcatel-Lucent Slips Posted: 02 Mar 2010 06:15 AM PST Alcatel-Lucent (NYSE:ALU) reported earnings from continuing operations of 5 cents per share for the fourth quarter of 2009, below the Zacks Consensus Estimate of 9 cents. Fourth quarter revenue decreased 19.9% year-over-year, but increased 7.6% sequentially to €3.967 billion. At constant currency exchange rates, revenue decreased 16.8% year-over-year and rose 9.1% sequentially. The carrier segment saw a double-digit decline in revenue, driven by 2G wireless access, TDM switching, terrestrial … [visit site to read more]

Nasdaq Initiated As Neutral Posted: 02 Mar 2010 06:00 AM PST Recently, we initiated coverage on Nasdaq OMX Group Inc. (NASDAQ:NDAQ) with a Neutral recommendation. The company's fourth quarter earnings surpassed the Zacks Consensus Estimate by a couple of cents on low charges and efficient expense management. However, the top-line declined on weak volumes. Despite the weakness experienced in equity trading in recent years, Nasdaq's options business continues to reflect strong performance.  Besides, the company's organic growth is helped by the … [visit site to read more]

Forex Trading: GBPUSD Holds The 61.8% Retracement And Squeezed Higher Posted: 02 Mar 2010 05:59 AM PST The GBPUSD fell early and has since rebounded. The fall took the pair down to test the 61.8% retracement at the 1.4854 (low reached 1.4852).  The failure to break, led to a sharp bounce higher.  The price is moving up to test the close from yesterday at the 1.4989 level. The midpoint of the weeks trading range is at 1.4993.  This should provide some resistance. However, this is the second test of the day. So I would not fade a break higher.  The next target on the … [visit site to read more]

Staples Earnings In Line Posted: 02 Mar 2010 05:53 AM PST Staples Inc. (NASDAQ:SPLS), the global leader in the supply of office products, recently reported fourth-quarter 2009 financial results that remained in line with the Zacks Consensus Estimate. The quarterly earnings of 38 cents a share rose 5.6% from 36 cents posted in the prior-year quarter. Management now expects first-quarter 2010 earnings in the range of 25 cents to 27 cents and fiscal year 2010 earnings between $1.23 and $1.33 per share. Staples' earnings surprise history compared to the … [visit site to read more]

Forex Trading: EURUSD Continues To Consolidate In The Range As The Market Awaits Directional Clues. Posted: 02 Mar 2010 05:32 AM PST The Greece situation, the ECB rate decision and press conference on Thursday, the NFP on Friday (snow effect?), all are coming to a head in the next couple of days and the market is preparing for it by converging at the equilibrium levels.  Over the last week or so, the price has made a few breaks below the 1.3483 level  which is the 61.8% of the 2009 low to high range.  However, each time, the market rebounded.  Today the break took the pair to new 9 1/2 month lows, at … [visit site to read more]

Details On Latest AIG Sale Posted: 02 Mar 2010 05:29 AM PST In order to attain funds for repaying the government's bailout, on Monday, American International Group Inc. (NYSE:AIG) announced the sale of its Asian life-insurance unit, American International Assurance (AIA) to the U.K.'s Prudential Plc (NYSE:PUK) for about $35.5 billion. This comprises about $25 billion in cash, $8.5 billion in face value of equity and equity-linked securities and $2.0 billion in face value of preferred stock of Prudential. Subject to other terms of the deal, the transaction … [visit site to read more]

Interesting Chart: Stock Market Vs. Excess Credit (”The Juice”) Posted: 02 Mar 2010 05:14 AM PST Further to my post of yesterday about how US equities will react when the Federal Reserve decides to tighten monetary policy by hiking the Fed fund rate, Morgan Stanley (NYSE:MS) (via Clusterstock - Chart of the Day) provided an interesting chart. As shown below, the S&P 500 Index has historically been highly correlated with “excess credit” growth (i.e. the change in non-financial credit). Stating the obvious, the March 2009 rally was propelled by an avalanche of easy money. Although … [visit site to read more]

Bulls Vs. Bears: Who’s Leading The Pack? Posted: 02 Mar 2010 04:01 AM PST Two big economic reports dampened the mood on Wall Street in the past week: The Standard & Poor’s/Case-Shiller Home Price Index and the Conference Board’s Consumer Confidence Index. But despite what the bears would have you believe, several strong companies have shrugged such data aside and broken through to new highs. In fact, long-term, we continue to see evidence that a robust business-led recovery is underway. Still, threats remain, and so it makes sense in the short-term to be … [visit site to read more]

Lower Chinese PMI: Darkened Outlook For Commodities? Posted: 02 Mar 2010 03:54 AM PST China’s PMI numbers for February were released Monday and received surprisingly little media attention. Although I am usually not keen to slice and dice single-month statistics too intensely, the latest suite of manufacturing indices does seem to warrant more than cursory attention. Firstly, a summary of the numbers as provided by the Chinese Federation of Logistics & Purchasing (CFLP) and reported by the Li & Fung Group. PMI Report on China Manufacturing: February 2010 The … [visit site to read more]

Bull Of The Day: BHP Billiton (BHP) Posted: 01 Mar 2010 09:00 PM PST In response to global economic conditions, BHP Billiton Limited (NYSE:BHP) has undertaken various actions, such as withdrawing from its pursuit of Rio Tinto, adjusting production levels in line with the demand and suspending cash negative operations. BHP continues with its long-term strategy of investing in value-added projects. During fiscal year 2009, the company sanctioned four growth projects with a capital investment of $5.9 billion. With its diversified portfolio of low cost and high quality … [visit site to read more]

Stock Buy: Cardinal Health Posted: 01 Mar 2010 09:00 PM PST Cardinal Health (NYSE:CAH) provides investors with 10% earnings growth and a dividend yield of 2%. Company Description Cardinal Health is one of the largest distributors of pharmaceuticals and medical supplies. The company is also a leading provider of products and services that improve the safety and productivity of health-care providers. Cardinal Health manufactures medication infusion and dispensing products, respiratory equipment, and surgical instruments. Stable Business with Growth … [visit site to read more]

Stock Buy: North American Energy Partners Inc. Posted: 01 Mar 2010 09:00 PM PST North American Energy Partners Inc. (NYSE:NOA) posted a big earnings surprise in the third quarter as the pipeline segment picked up. NOA is trading at 12.11x forward earnings. Company Description North American Energy Partners provides heavy construction, mining, piling and pipeline services in Western Canada to large oil and natural gas companies, including design and project implementation. It specializes in the Canadian oil sands and is currently contracted to remove overburden at Canadian … [visit site to read more]

Stock Buy: Littelfuse, Inc Posted: 01 Mar 2010 09:00 PM PST Littelfuse, Inc (NASDAQ:LFUS) topped analysts expectations once again. This was the third consecutive earnings surprise and shares continue to climb. Company Description Littelfuse makes components a variety electrical components that are used in the auto, computer and other industries. The company has facilities around the world, but is based in Chicago. Another Earnings Surprise On Feb 8 Littelfuse announced quarterly results that included a 21% jump in sales, to $128 million. The Zacks #1 ranked … [visit site to read more]

Stock Buy: Starbucks Corp. Posted: 01 Mar 2010 09:00 PM PST Starbucks Corp. (NASDAQ:SBUX) recently rebounded from a key trend line to move back within striking range of the 52-week high at $24.45. The move higher comes on the heels of the company’s better than expected Q1 results from late January. Company Description Starbucks Corp. owns and operates a chain of more than 8,800 coffee restaurants abound the world. The company was founded in 1985 and has a market cap of $17 billion. Shares of SBUX began falling in Nov of 2006 before finally bottoming out two … [visit site to read more]

Bear Of The Day: Ryder System, Inc. (R) Posted: 01 Mar 2010 09:00 PM PST We are initiating coverage on Ryder System, Inc. (NYSE:R) with an Underperform recommendation. The company’s fourth quarter earnings were a nickel short of the Zacks Consensus Estimate. The decline was driven by decreased global results in full service lease, higher pension expense, reduced commercial rental performance and lower results from used vehicle sales. The company is planning for a better relative freight pricing market and more freight opportunities in 2010. Ryder also continues to … [visit site to read more]

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