Mar 23, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Bad News For Gold

Posted: 23 Mar 2010 11:45 AM PDT

This rally in the stock market is now deep enough into the daily cycle that it has become dangerous to chase it any longer. (The average duration trough to trough of a daily cycle is 35-40 days. this rally is going on day 31)

Sentiment has reached bullish extremes, some of which rival the `07 top. Again not the kind of conditions that would warrant pressing the long side any longer.

As much as I would like to see a continuation of the C-wave the odds are starting to pile up against … [visit site to read more]


Schlumberger May Lag Street Ests

Posted: 23 Mar 2010 11:32 AM PDT

Schlumberger Limited (NYSE:SLB) may face trouble meeting this year's Wall Street profit forecast, the company's chief executive officer (CEO) said yesterday. He also said that rising natural gas drilling in North America will not lead to “satisfactory returns” this year.
 
The consensus EPS estimate for this year is $2.93, which is on the high side and would require a very strong second half year to achieve, the CEO stated. The first half may face some hindrances due to severe weather … [visit site to read more]

Fitch Upgrades RLI’s Ratings

Posted: 23 Mar 2010 11:16 AM PDT

Yesterday, RLI Corp.'s (NYSE:RLI) ratings were upgraded by Fitch Ratings. The rating agency raised the holding company’s ratings including the senior debt rating to ‘BBB+’ from ‘BBB’ and the Insurer Financial Strength (IFS) ratings of its operating subsidiaries to ‘A+’ from ‘A’. The rating outlook is stable. 

The ratings upgrade reflects RLI's continued strong operating performance in a competitive insurance market and a weak economy. Besides, the upgrade also reflects the company's … [visit site to read more]

IndexIQ Launches Small Cap Australia, Canada ETFs (CNDA, KROO)

Posted: 23 Mar 2010 11:02 AM PDT

IndexIQ, the ETF issuer best known for its funds that seek to replicate hedge fund strategies with liquid, transparent securities, announced today the launch of two new ETFs offering single-country equity exposure. The IQ Canada Small Cap ETF (CNDA) will track the performance of the IQ Canada Small Cap Index, while the IQ Australia Small Cap ETF (KROO) will seek to replicate the IQ Australia Small Cap Index.
While existing products track the Canadian and Australian equity markets, these … [visit site to read more]

Expecting A Positive Performance For The U.S. Stock Market

Posted: 23 Mar 2010 11:01 AM PDT

International financial markets extended a particularly warm welcome to the Fed’s decision at the end of last week’s monetary policy confirming that rates will remain unchanged for an extended period, which was widely expected by economists. Major international stock indices have in fact protracted the upward trend of recent weeks, and Government bond yields remained unaltered despite the overall better-than-expected economic data published over the past week in the U.S.

The Fed’s … [visit site to read more]

NCR Appoints New CFO

Posted: 23 Mar 2010 11:01 AM PDT

Leading technology company NCR Corp. (NYSE:NCR) recently appointed 46 year old Robert Fishman as its Chief Financial Officer, who will be reporting to the Chairman and Chief Executive Officer of NCR, Bill Nuti. 

The company has selected Mr. Fishman, after an extensive search of internal and external candidates. Before being declared as the CFO, Fishman has served as the company’s interim CFO from October, 2009, the most recent management position, that Fishman has held since joining NCR in … [visit site to read more]

Free Health Care: Right Or Privilege?

Posted: 23 Mar 2010 11:00 AM PDT

The French media reports the passage of the health care reform bill as though it were the Emancipation Proclamation. Now, Americans have finally entered the modern world, they seem to say. Now, Americans have access to health care as a matter of right.
We're suspicious of anything the French papers think is a good idea; they're as bad as The New York Times.
That people think they have a "right" to health care just goes to show how little people think at all. "Rights" only make sense … [visit site to read more]

NRG Energy Gets Federal Fund

Posted: 23 Mar 2010 10:46 AM PDT

NRG Energy Inc. (NYSE:NRG) has been selected by the United States Department of Energy (DOE) to receive up to $154 million funding to build a post-combustion carbon capture demonstration unit at its Washington Parish plant. 

Earlier NRG Energy submitted the project under the Clean Coal Power Initiative Program (CCPI). CCPI is a cost-shared collaboration between the federal government and private industry to demonstrate low-emission carbon capture and storage technologies in advanced … [visit site to read more]

Equinix Expands Ops In China

Posted: 23 Mar 2010 10:31 AM PDT

Leading data center solutions provider Equinix Inc. (NASDAQ:EQIX) has entered into a strategic partnership agreement with Shanghai Data Solution Co. Ltd. (SDS), a leading China-based systems integrator for network and communications services. 

Through this strategic partnership Equinix marks its entry into the world's fastest growing Chinese market. This apart, through this partnership, the company's customers will enjoy a similar level of availability and reliability of collocation … [visit site to read more]

Video: Money Market Volatility Rises

Posted: 23 Mar 2010 10:17 AM PDT

The money markets were volatile this session following continued concerns over Greece and positive US economic housing data. … [visit site to read more]

Linn To Buy Michigan Gas Assets

Posted: 23 Mar 2010 10:16 AM PDT

Independent energy company Linn Energy LLC (NASDAQ:LINE) has agreed to pay $330 million to purchase natural gas properties from Houston-based HighMount Exploration & Production LLC. The transaction, which is expected to close by the end of next month, will be part-funded by Linn's public offering of 12 million units of its limited liability company interests. 

The assets, located in the Antrim Shale of northern Michigan, hold an estimated 266 billion cubic feet of natural gas equivalent … [visit site to read more]

Video: Market Movers: MPG, TGI, PMI, ALV, SAP, CAT, IBM

Posted: 23 Mar 2010 10:12 AM PDT

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

Used Home Sales Slip Slightly

Posted: 23 Mar 2010 10:10 AM PDT

Existing home sales fell by 0.6% (seasonally adjusted annual rate) to 5.02 million from a 5.05 million rate in January. This was just 7.0% above the extremely depressed rate of a year ago. However, it was slightly better than the consensus expectations of a 5.00 million rate.
Existing home sales shot up in the fall as people thought that the "first-time buyer” tax credit was going to expire on them. The credit was not only extended at the last minute, but it was expanded to non-first-time … [visit site to read more]

How To Day Trade Spot Gold Futures With Accuracy

Posted: 23 Mar 2010 10:09 AM PDT

Day Trading Spot Gold Futures is a touchy subject among traders. You either hate it and think it cannot be day traded for consistent gains or your love it finding its movements very accurate. As most of you know I love trading gold
I get my fair share of emails from individuals who think trading gold is a complete scam because of manipulation and crazy price action and I completely agree with this group of people. But the entire market is manipulated… so we all just have to deal with it or … [visit site to read more]

Wright Medical Remains Neutral

Posted: 23 Mar 2010 10:01 AM PDT

We recently reiterated our 'Neutral' recommendation on Wright Medical Group, Inc. (NASDAQ:WMGI) with a target price of $17.50 based on a P/E of 25.4 our fiscal 2010 EPS estimate of 69 cents. The company's fourth quarter and fiscal 2009 results were mixed. 

Wright Medical reported fourth quarter earnings per share of 23 cents, surpassing the Zacks Consensus Estimate of 19 cents. However, earnings were lower than the year-ago figure of 26 cents. For fiscal 2009, earnings per share came in … [visit site to read more]

Sunoco Downgraded

Posted: 23 Mar 2010 09:46 AM PDT

We are downgrading Sunoco Inc. (NYSE:SUN) shares to Underperform from Neutral, reflecting the bearish refining margin outlook. 

Weak demand for refined products in the global downturn and increased capacity has squeezed margins throughout the industry. Rising crude oil prices have added to Sunoco's miseries by increasing the cost of production. With utilization rates remaining at historically low levels, we see a fairly unfavorable macro backdrop for independent refiners over the coming … [visit site to read more]

New Oxford Research Suggests Oil “Demand May Outstrip Supply” By 2014

Posted: 23 Mar 2010 09:31 AM PDT

The UK's former chief scientist, Sir David King, working with Oxford University scientists, has come forward to warn of oil "shortages and price spikes within years." He states the delay in awareness has been caused by OPEC overstating oil reserves for decades, perhaps by about a third.
According to the Telegraph:
"Their new research argues that estimates of conventional reserves should be downgraded from 1,150bn to 1,350bn barrels to between 850bn and 900bn barrels and claims that … [visit site to read more]

Life In Nicaragua: Not Just For Sandinistas Anymore

Posted: 23 Mar 2010 09:31 AM PDT

Greetings from Leon, Nicaragua, which is about an hour drive northwest of Managua. Leon is the second largest city in the country and was the old capital for more than 200 years, before Managua became the capital, in 1851. I'm staying with a friend of mine from college and his family, who moved down here five years ago.
He lives very well here for not much money. This house in which I am staying is a comfortable 4,000 square feet with everything you could want in a house – a big kitchen … [visit site to read more]

Haemonetics’ New Agreement

Posted: 23 Mar 2010 09:31 AM PDT

Haemonetics Corp. (NYSE:HAE) recently entered a new reagent development and supply agreement with Quotient Biodiagnostics Group and its wholly-owned subsidiary Alba Bioscience Limited. Per the agreement, Haemonetics will have exclusive access to Alba’s comprehensive catalogue of approved reagents for use in connection with the commercialization of its Arryx laser based blood typing platform. 

The agreement includes future milestone payments related to the optimization of reagents for use in … [visit site to read more]

Breadth Comparison Between The 2007 Stock Market Peak And The Current Rally

Posted: 23 Mar 2010 09:25 AM PDT

I’ve received quite a few responses from posting on the “Strange Similarities Between the 2007 Peak and Current Rally High” yesterday evening.

I wanted to show a chart based on a comment by a reader  who highlighted that, although the price patterns were similar, the readings from internals - specifically those of the net new highs - were slightly different.

Inspired by that email, I wanted to show the charts of the 2007 and 2010 rally highs in the S&P 500 and focus on two … [visit site to read more]

Australian Dollar: The Downside Prevails

Posted: 23 Mar 2010 09:17 AM PDT

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

Canadian Dollar: Under Pressure

Posted: 23 Mar 2010 09:17 AM PDT

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

Sigma-Aldrich On Growth Path

Posted: 23 Mar 2010 09:16 AM PDT

Sigma-Aldrich Group (NASDAQ:SIAL) has announced plans to invest $2 million in expanding the production of trimethylgallium (TMG) at its Bromborough, Wirral, UK manufacturing plant. The investment is expected to establish Sigma as a leading global supplier of TMG, which has a growing demand in the production of high brightness light-emitting diode used in backlighting in flat panel television sets and for energy efficient lighting under its SAFC Hitech business segment. 

The TMG plant … [visit site to read more]

Sales Data Tests Homebuilder ETF Rally

Posted: 23 Mar 2010 09:05 AM PDT

A recurring investment theme so far this year has been the resurgence of markets and sectors hit hardest by the recent global economic downturn. Japanese equities, the unquestioned laggard of the global economy during 2009, have shown signs of life in the first three months of this year. Financial ETFs have continued to rally into 2010, bolstered by soaring profit margins and reduced anxiety over the potential impact of a regulatory overhaul.
The homebuilding sector has also showed surprising … [visit site to read more]

SRDX Upgraded To Neutral

Posted: 23 Mar 2010 09:01 AM PDT

We have recently upgraded our recommendation on SurModics (NASDAQ:SRDX) to Neutral. During the first quarter of 2010, the company's earnings per share (EPS) came in at 24 cents, surpassing the Zacks Consensus Estimate by 5 cents. Although revenues of $21 million were down 26% from the year-ago period, it was primarily due to the termination of the company's agreement with Merck (NYSE:MRK) in September 2008. 

SurModics derives a substantial portion of its drug delivery revenue from the Cypher … [visit site to read more]

Trading The UK 2010 Budget

Posted: 23 Mar 2010 08:55 AM PDT

The budget has approached and I have freed up some cash to put into position for the Budget. Now, normally this has been a pretty easy fish in a barrell exercise; short drinks makers and tobaccco companies, take positions on small greenwash AIM companies and such like. Last year the tax break for car selling was always going to be a winner and proved to be so.

This year though there are some really complicating factors:

1) Darling has said not big announcements
2) A badly delivered … [visit site to read more]

Mutual Funds: Top 5 Small Cap Funds

Posted: 23 Mar 2010 08:55 AM PDT

Small-cap funds are an excellent choice for investors looking to maximize gains from a rising market. This is because they are very sensitive to positive changes in the economy which can cause their prices to appreciate significantly. Most small-cap companies also reinvest a large share of their profits back into their business, which is a positive sign for shareholders. This can assure them of better profits and performance in the long run. For investors willing to bear the associated risk, … [visit site to read more]

Time Warner Earns Neutral Rec

Posted: 23 Mar 2010 08:45 AM PDT

We have recently initiated coverage on Time Warner Inc. (NYSE:TWX) with a Neutral rating. The company is a global leader in media and entertainment with cable systems, television networks, filmed entertainment and publishing businesses. 

With the spin-off of AOL, Inc. (AOL) and Time Warner Cable Inc. (NYSE:TWC), Time Warner can now concentrate more on filmed entertainment content and cable television network distribution business that have the potential to deliver growth.
 
Moreover, … [visit site to read more]

Morning Stock Market Movers: Lexmark International, Titanium Metals, Petrohawk Energy

Posted: 23 Mar 2010 08:45 AM PDT

Petrohawk Energy Corp. (NYSE:HK) - Bullish options investors greeted the current trading session with a renewed sense of optimism on independent oil and gas exploration company Petrohawk Energy Corp., as shares its shares rebounded from declines experienced during the previous session to stand 3.50% higher at $20.27. Optimistic traders purchased debit call spreads in the June contract to position for continued bullish movement in the price of the underlying shares through expiration. Early … [visit site to read more]

Currency Market Mix Up

Posted: 23 Mar 2010 08:38 AM PDT

The currency markets were a bit mixed yesterday, with half the currencies higher versus the US dollar, and half lower. The markets seemed confused, and didn't hold to 'normal' trading patterns. The three best performing currencies versus the US dollar were the Brazilian real (BRL), British pound (GBP), and Japanese yen (JPY). That is an odd group! At the top spot, we have the Brazilian real which is a commodity-based currency with some of the highest yields available; which would lead you … [visit site to read more]

Chinalco-Rio Tinto Agreement

Posted: 23 Mar 2010 08:30 AM PDT

Aluminum Corporation of China or Chinalco (NYSE:ACH), Chalco's parent company, has signed an agreement with the iron ore mining giant Rio Tinto Ltd. (NYSE:RTP) to develop the Simandou iron-ore project in Guinea (Africa). Rio Tinto owns 95% of the Simandou project, with the remaining 5% owned by the International Finance Corporation ("IFC”), the financing arm of the World Bank. The mine will commence production in 2013 and will reach an annual capacity of 70 tons once fully commissioned, with an … [visit site to read more]

Forex Trading: Bullish Correction In USD/CAD Before Reaching Parity

Posted: 23 Mar 2010 08:25 AM PDT

A bullish correction on USD/CAD as of Tuesday (3/23/2010) morning New York session has brought price back up to hit and briefly exceed resistance around the 1.0200 price region. Currently, price is consolidating right around this resistance.

This bullish correction occurs after previously bearish price action within the context of an overall downtrend descended to 1.0060, just shy of its parity (1.0000) target. If the current bullish correction has ended, which would be evident by … [visit site to read more]

Video: “Everybody Has Their Eye On The Dollar”

Posted: 23 Mar 2010 08:22 AM PDT

Floor trader David Henderson shares what he believes will play a significant role in the markets this session. … [visit site to read more]

Gold Traders Continue To Yawn

Posted: 23 Mar 2010 08:17 AM PDT

Fundamentals
Gold futures are little changed this morning, as traders find little reason to become enthusiastic about the precious metal. The greenback continues to hold onto recent gains on comments from ECB Chairman Trechet indicating the central bank does not favor a Greece bailout. Both the US currency and Gold continue to trade in a range, indicating that traders are a bit confused about their respective directions. Gold’s range has been particularly tight during this first quarter of the … [visit site to read more]

COPEL: Well Positioned

Posted: 23 Mar 2010 08:15 AM PDT

Recently, Companhia Paranaense de Energia (NYSE:ELP) posted positive results for the fourth quarter and 2009. During the quarter, COPEL posted a net income of R$180.0 million (US$103.0 million), almost flat to R$179.9 million (US$78.6 million) in the fourth quarter of 2008. 

EPS amounted to R$0.66 or 38 cents compared to R$0.66 or 29 cents in the year-ago quarter. The difference in EPADR was only due to the exchange rate. Reported EPS was much below the Zacks Consensus Estimate of 52 … [visit site to read more]

E*TRADE Hires Ex-Citi CEO

Posted: 23 Mar 2010 08:00 AM PDT

On Monday, E*TRADE Financial Corporation (NASDAQ:ETFC) announced that it has chosen the ex-chief executive of Citigroup Inc. (NYSE:C), Steven Freiberg, 53, as its new Chief Executive Officer (CEO), effective Apr 1, 2010. Steven Freiberg comes with a 30-year valued experience at Citigroup and succeeds interim CEO Robert Druskin.
 
With an exceptional financial service expertise and extensive experience of moving strategically and managing a broad and diverse consumer financial services franchise, … [visit site to read more]

Video: KB Home Posts Smaller Loss During The Fiscal 1Q

Posted: 23 Mar 2010 07:57 AM PDT

KB Home posted a smaller loss its fiscal first quarter as the homebuilder saw signs of stability in the housing market. … [visit site to read more]

Video: Asian Markets Mostly Positive

Posted: 23 Mar 2010 07:47 AM PDT

With exception to Japan’s Nikkei 225, the other major Asian/Pacific markets were on the upside this session. … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: WAG, KBH, GOOG

Posted: 23 Mar 2010 07:46 AM PDT

The latest in news, commentary, and information on what’s moving the US equities markets. … [visit site to read more]

Forex Trading: USDCHF Falls Through 100 Hour MA And Scoots Lower

Posted: 23 Mar 2010 07:40 AM PDT

The USDCHF has fallen through the 100 hour MA support at the 1.0582 level and scooted lower. The pair has been largely range bound of late with moves above the 200 hour MA and below the 100 hour MA with the breaks not able to make a run higher or lower for an extended period.  Today, the price went above the moving average on the back of SNB comments on the strength of the CHF, but then dipped lower, held the 100 hour MA, but fell in the last 30 minutes of trading.  For those selling … [visit site to read more]

Forex Trading: EURUSD Extends To The Next Bullish Target At 1.3546

Posted: 23 Mar 2010 07:24 AM PDT

The 1.3546 was the next target on the topside and the price has extended above the level.  The next target is the high for the day at 1.3569.
Support now comes in at 1.3533 which is the 61.8% of the weeks trading … [visit site to read more]

China Tech ETFs In Focus As Google Showdown Escalates

Posted: 23 Mar 2010 07:19 AM PDT

Google, the California-based search engine giant, made good on its promise to stop censoring results in China on Monday evening, upping the stakes in its showdown with the Chinese government. Google announced in January that it would end its voluntary censorship of its China search service following a series of attacks on email services from China-based hackers. The Chinese government requires that offensive content be stripped from web search results, including politically sensitive materials … [visit site to read more]

Google Takes On Chinese Censors

Posted: 23 Mar 2010 06:30 AM PDT

In a bold move, Google Inc (NASDAQ:GOOG) announced yesterday that it would stop censoring search results for the Google Search, Google News and Google Images services on its Chinese website, Google.cn. The internet search giant would instead direct all such traffic to its uncensored Hong Kong-based Chinese language website. Google’s bold move and China’s response in the coming days and weeks will be closely watched. The stock has been modestly weak at the open today, in an otherwise … [visit site to read more]
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