Daily Markets - Financial News And Opinions

---

• Palladium And Platinum Hit Highs After Debut Of Linked ETFs
• Harry Markopolos: “Don’t Trust Your Government”
• Hong Kong ETFs Better, But Risks Exist
• Stock Picks For Tuesday 2 March: Ariad Pharmaceuticals, The New York Times Company
• Is The United States Considered An Emerging Market?
• Judge Rakoff Dismisses Lawsuit Against Mary Schapiro And FINRA Under Absolute Immunity
• Cartoon: US Deficit Not Going To End Well
• Global Debt Crisis: The Killing Of Paper Money
• Initiating CSC At Neutral
• Daily ETF Roundup: UNG Slides, FXI Surges
• Dana’s Loss Narrows
• Research In Motion Attracts Bearish Options Plays
• China: No Shortcut To Greatness
• Repsol YPF Misses Badly
• Video: NYSE Closing Bell Market Monitor: AIG, RISK, MIL
• ETFs That Could Benefit From Chile’s Earthquake
• Sprott Launches New “Canada Gold ETF” (PHYS)
• Video: Despite Recalls, Toyota Sales In Japan Flourish
• Construction Spending Declines
• Video: Crude Slips On Stronger Greenback
• Video: Interview W/ Beth Ann Bovino, S&P Senior Economist
• How Quickly The Fragile US Empire May Collapse
• Cooper Industries Tops Estimates
• Stock Pick: Juniper Networks Will Be The Next Company To Profit From The Broadband Boom
• Coming Investment Boom: Curing American Obesity
• Fluor Wins Mining Order
• Forex Trading: EURUSD Has To Get Through The 1.3551 Level To Turn Tide Back Down.
• Walgreen Expands NY Presence
• France Telecom Misses
• CenterPoint Lags Consensus
• The Zombie Economy
• CEMEX Reduces Debt
• Molson Downgraded To Underperform
• ArcelorMittal Surpasses Estimates
• Brookfield Asset Management (NYSE:BAM) – A “Cash Flow-Spinning Machine” Despite Real Estate Distress
• Analyst Interviews: Hotels & Lodging Stock Review
• FX Options Weekly Outlook
• Soros “Very Cautious” On China’s Economy

Palladium And Platinum Hit Highs After Debut Of Linked ETFs Posted: 01 Mar 2010 05:50 PM PST “Some investors have been reducing their exposure to platinum and palladium over the past few weeks after the launch of exchange-traded funds backed by the metals helped send prices to their highest levels in more than a year. But with a slew of potentially bullish supply-and-demand fundamentals behind the metals-which are used primarily by the auto industry for catalytic converters-as well as a new fund in the wings that would suck even more metal off the market, prices for platinum and … [visit site to read more]

Harry Markopolos: “Don’t Trust Your Government” Posted: 01 Mar 2010 05:11 PM PST Harry Markopolos In an interview on the Today show Monday morning (video clip after the fold), Harry Markopolos dropped a few bombshells. Harry’s statement that he had purchased a gun and mentally prepared himself to kill Bernie Madoff in self-defense if need be will likely grab the most attention. It shouldn’t. Markopolos’ biggest bombshell this morning is his warning to America, “don’t trust your government.” No surprise that Today host Matt Lauer did not probe deeper. I am not … [visit site to read more]

Hong Kong ETFs Better, But Risks Exist Posted: 01 Mar 2010 05:01 PM PST Everything seems to be going Hong Kong’s way these days. The country’s growth spurt seems to have convinced the government to begin a stimulus pullback and cut certain measures. Will the exchange traded fund (ETF) be far behind in reflecting the improvement? Exports and retail spending have rebounded, sparking a wave of optimism about the economy. As a result, the government limited stimulus in its most recent budget and is turning an eye toward cooling potential asset bubbles. The BBC … [visit site to read more]

Stock Picks For Tuesday 2 March: Ariad Pharmaceuticals, The New York Times Company Posted: 01 Mar 2010 04:21 PM PST ( click to enlarge ) The New York Times Company (NYSE:NYT) - New York Times shares surged Monday more than 7% amid speculation that Mexican billionaire Carlos Slim was considering buying the influential media company and taking it private. The stock ended the day up $11.75 on heavy volume. NYT broke resistance and looks it wants to go much higher from here. I like the chart formation for NYT and I’m looking for a follow through move on Tuesday. Resistance reflects Monday’s high of $12.17 … [visit site to read more]

Is The United States Considered An Emerging Market? Posted: 01 Mar 2010 04:01 PM PST When finance professionals learn about investing in the emerging markets, they are taught to look out for certain key statistics that can provide indications of whether those markets are suitable candidates for investment. Some of the main indicators looked at include the country’s: Budget Deficit to GDP: A general guideline is that ratios greater than 4% indicate substantial credit risk. Debt to GDP: Debt levels exceeding 50% of GDP signal that the country may be over-levered and … [visit site to read more]

Judge Rakoff Dismisses Lawsuit Against Mary Schapiro And FINRA Under Absolute Immunity Posted: 01 Mar 2010 03:48 PM PST America should be reviled when those charged with upholding the law overseeing our markets are not held to that standard themselves. Today is a very dark day for those in our country who cherish the virtues of truth, transparency, and integrity. Why am I despondent? This afternoon, Judge Jed Rakoff issued a ruling dismissing the lawsuit brought on behalf of Standard Investment Chartered against Mary Schapiro and other FINRA executives. What is the basis for Judge Rakoff’s dismissal? … [visit site to read more]

Cartoon: US Deficit Not Going To End Well Posted: 01 Mar 2010 03:01 PM PST Source: Chris Britt, Comics.com, February 25, … [visit site to read more]

Global Debt Crisis: The Killing Of Paper Money Posted: 01 Mar 2010 03:00 PM PST Everyone says the euro is falling apart…that Europe itself can't survive as a political unit. Europe seems to lack the things that make for a strong political system. It has no common language, for example (there are more than 200 different languages in Europe). And it has no common culture either…or even a common religion…or a common race. The Greeks are rioting in the streets. They're upset because their government is trying to cut back on 'services.' Actually, it's not the … [visit site to read more]

Initiating CSC At Neutral Posted: 01 Mar 2010 02:31 PM PST We are initiating coverage of Computer Science Corporation (NYSE:CSC) with a Neutral rating and a price target of $54.50. We believe that the company is fairly valued and is constantly growing through acquisitions which enhance its services portfolio and expand its operations in new markets. The company reported decent third quarter results, with revenue of $3.95 billion, flat compared to the year-ago quarter. CSC booked new business and saw sequentially positive revenue growth across all business … [visit site to read more]

Daily ETF Roundup: UNG Slides, FXI Surges Posted: 01 Mar 2010 02:13 PM PST March got off to a hot start on Monday, as equity markets posted gains on a positive manufacturing outlook and multiple reports of M&A activity. Most notably, UK-based Prudential PLC agreed to buy AIG's Asia operations for $35.5 billion in cash and stock. Elsewhere, the Institute of Supply Management reported that its index of manufacturing activity reflected an expansion for February, while the employment index grew for the third consecutive month. Chilean stock markets reopened for … [visit site to read more]

Dana’s Loss Narrows Posted: 01 Mar 2010 02:09 PM PST Dana Holding Corp. (NYSE:DAN) has reported a narrower loss of $83 million or $0.92 per share (before special items) in the fourth quarter of 2009, compared to a loss of $249 million or $2.57 per share in the year-ago quarter. However, the loss was wider than the Zacks Consensus Estimate of 8 cents per share. Sales in the quarter slipped 2% to $1.49 billion. Adjusted EBITDA margin improved significantly to 7.7% compared to adjusted EBITDA of 0.3% in the fourth quarter of 2008. In 2009, Dana … [visit site to read more]

Research In Motion Attracts Bearish Options Plays Posted: 01 Mar 2010 02:01 PM PST (NASDAQ:RIMM) - Research in Motion Limited - Blackberry maker, Research in Motion, attracted bearish options strategists even though the firm’s target share price was upped to $100.00 this morning from $95.00 at Canaccord Adams. RIMM opened the session higher, but slipped slightly in afternoon trading by 0.05% to $70.85. One bearish tactic employed today was the use of a plain-vanilla put spread in the March contract. The trader responsible for the transaction purchased 4,400 puts at the March $65 … [visit site to read more]

China: No Shortcut To Greatness Posted: 01 Mar 2010 02:00 PM PST The Chinese economy must be getting out of control, because the Chinese government is doing the unthinkable: It is desperately trying to put the brakes on the economy. When you pump a stimulus package that represents 14% of GDP through a fire hose into an economy, which was already on shaky bubble foundation, in a very short time you'll have some serious unintended consequences — you'll get super bubbles. To understand what's taking place in China today, we need to rewind the clock … [visit site to read more]

Repsol YPF Misses Badly Posted: 01 Mar 2010 01:49 PM PST Repsol YPF S.A. (NYSE:REP) reported fourth-quarter earnings of 17 euro-cents per share (25 cents per ADR), compared to the Zacks Consensus Estimate of 32 cents and year-earlier loss of 15 euro-cents (21 cents per ADR). Despite a 5.8% increase in production volumes, quarterly earnings missed drastically due to consistently weak natural gas prices and lower refinery margins. Estimate Revisions Trend We see a downtrend in estimate revisions. In the last 30 days, 3 of the 5 analysts covering the stock … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: AIG, RISK, MIL Posted: 01 Mar 2010 01:47 PM PST 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]

ETFs That Could Benefit From Chile’s Earthquake Posted: 01 Mar 2010 01:45 PM PST In the midst of a natural disaster and catastrophe in Chile, the metals and mining industry is likely to see positive price supports in the near future. One major factor that drives the price of metals is the efficiency and speed of extraction of the metal in the production and mining process.  According to analysts, this process is likely to be hindered.  The good news is that most of Chile’s copper deposits and port facilities are in the northern half of the nation and had no major … [visit site to read more]

Sprott Launches New “Canada Gold ETF” (PHYS) Posted: 01 Mar 2010 01:40 PM PST Toronto-based Sprott Asset Management, a newcomer to the U.S. ETF industry, became the latest issuer to introduce a physically-backed gold ETF last week, debuting the Sprott Physical Gold Trust (PHYS) on Friday. The new fund "was created to invest and hold substantially all of its assets in physical gold bullion" and will compete directly with several existing physically-backed gold bullion funds. While PHYS will be similar to existing gold ETF products, there are a few key differences. … [visit site to read more]

Video: Despite Recalls, Toyota Sales In Japan Flourish Posted: 01 Mar 2010 01:37 PM PST Despite announcing a worldwide recall of millions of its vehicles, the Toyota brand continues to sell well in its home country of Japan as new car sales continued to grow in February. … [visit site to read more]

Construction Spending Declines Posted: 01 Mar 2010 01:31 PM PST In January, total construction spending declined by 0.6% to a seasonally adjusted annual rate of 884.1 billion. That is 9.3% below the 974.3 billion rate of a year ago. However, residential construction spending actually rose by 1.1% on the month to an annual rate of $269.2 billion, although it is still 6.0% below the 286.4 pace of a year ago. Just to make very clear, a year ago was not exactly boom times for the housing industry, which is where the vast bulk of residential construction … [visit site to read more]

Video: Crude Slips On Stronger Greenback Posted: 01 Mar 2010 01:26 PM PST Front month crude prices started the new week & month on the downside following a strengthening of the US dollar. … [visit site to read more]

Video: Interview W/ Beth Ann Bovino, S&P Senior Economist Posted: 01 Mar 2010 01:24 PM PST S&P Senior Economist Beth Ann Bovino shares her thoughts behind the current state of the US economy and sheds light on when she believes one should expect a rise in Fed rates. … [visit site to read more]

How Quickly The Fragile US Empire May Collapse Posted: 01 Mar 2010 01:15 PM PST Of late, Harvard University professor Niall Ferguson has been regularly beating his drum, warning in his own way of the impending doom of the American empire. In a recent opinion piece in the Los Angeles Times he checks the pulse of the US in light of the rhythm of history… From the LA Times: "Great powers are complex systems, made up of a very large number of interacting components that are asymmetrically organized, which means their construction more resembles a termite hill than an … [visit site to read more]

Cooper Industries Tops Estimates Posted: 01 Mar 2010 01:14 PM PST Cooper Industries Plc (NYSE:CBE) reported earnings from continuing operations of 76 cents for the fourth quarter of 2009, exceeding the Zacks Consensus Estimate of 67 cents. Fourth quarter 2009 revenues decreased 17.5% to $1.26 billion, compared with $1.52 billion for the same period last year. Core revenues were 19.8% lower than the comparable prior year with currency translation increasing reported revenue by 2.0% and acquisitions adding 0.3% for the quarter. During 2009 Cooper generated $632.6 … [visit site to read more]

Stock Pick: Juniper Networks Will Be The Next Company To Profit From The Broadband Boom Posted: 01 Mar 2010 01:01 PM PST Given the lightening fast expansion that we are seeing in broadband market - something I mentioned last week in my recommendation of Cisco Systems Inc. (NASDAQ:CSCO), we are going to look at another strong beneficiary in the sector: Juniper Networks Inc. (NASDAQ:JNPR). Juniper Networks beat estimates by a mile in its recent earnings report. It beat both on sales and margins expectations. However, some analysts have raised questions about the company’s strategy. And I am one of them. While … [visit site to read more]

Coming Investment Boom: Curing American Obesity Posted: 01 Mar 2010 01:00 PM PST Weight loss is an area we've been looking at for a long time now. Obesity is a major risk factor in various diseases, from arthritis and cancer to diabetes, hypertension and heart disease. Any drug that can help people lose weight safely is, therefore, going to offer true value. Moreover, obesity increases with age. As the baby boom, the wealthiest generation in history, rolls into its senior years, the demand and the need for an obesity treatment is growing dramatically. Until now, we … [visit site to read more]

Fluor Wins Mining Order Posted: 01 Mar 2010 12:59 PM PST Fluor Corporation (NYSE:FLR) announced that its joint venture with Sinclair Knight Merz was awarded a contract by BHP Billiton to execute the next phase of its Rapid Growth Program. The focus of the project will be the continued expansion of BHP Billiton’s iron ore operations in the Pilbara Region of Western Australia. Fluor booked approximately $500 million in the company’s fourth quarter of 2009. The Fluor SKM Iron Ore Joint Venture’s scope includes overall program management activities and … [visit site to read more]

Forex Trading: EURUSD Has To Get Through The 1.3551 Level To Turn Tide Back Down. Posted: 01 Mar 2010 12:55 PM PST So far the price continues to find support against the level as the stock day day comes to a … [visit site to read more]

Walgreen Expands NY Presence Posted: 01 Mar 2010 12:44 PM PST Recently, Walgreen (NYSE:WAG) decided to acquire New York-based drugstore chain Duane Reade Holdings for a total enterprise value of $1.075 billion, including debt. The transaction, expected to close in the current fiscal year (ending Aug 31), is yet to receive regulatory approvals. Duane Reade had unaudited net sales of $1.8 billion for the 12-month period ending Dec 26, 2009. Walgreens will fund the purchase with its existing cash balance. At the end of the first quarter of fiscal 2010, the … [visit site to read more]

France Telecom Misses Posted: 01 Mar 2010 12:29 PM PST French telecom giant France Telecom (NYSE:FTE) has reported results for full year 2009 with earnings per ADS of $1.58 missing the Zack Consensus Estimate of $2.65. Net income fell 26% year-over-year to €3 billion (US$4.18 billion), largely due to a €964 million (US$1.3 billion) charge stemming from a dispute with EU competition authorities related to an illegal tax exemption received by the carrier prior to 2003. The bottom-line was also hit by lower mobile termination rates (inter-operator … [visit site to read more]

CenterPoint Lags Consensus Posted: 01 Mar 2010 12:14 PM PST Energy delivery company CenterPoint Energy Inc. (NYSE:CNP) posted earnings of 27 cents per share for the fourth quarter of 2009, three cents lower than the Zacks Consensus Estimate of 30 cents but higher than the year-ago quarterly earnings of 25 cents. However fiscal 2009 EPS came in at $1.01, lower than both the Zacks Consensus Estimate of $1.09 and the fiscal 2008 EPS of $1.30. Operational Results Total revenues in the reported quarter decreased 17.1% to $2.3 billion, compared to $2.8 billion … [visit site to read more]

The Zombie Economy Posted: 01 Mar 2010 12:13 PM PST The zombies are taking over! Stocks went up 4 points on the Dow on Friday… Gold went up $10. Noise. Distraction. Headlines. Opinions. The important trend is the big one – the shift of resources from the private sector to the public sector. During the bubble years, the private sector made a big, big mistake – taking on far too much debt. Now, it is correcting its mistake…reluctantly, painfully, and with plenty of foot-dragging and interference from the government. Instead of letting the … [visit site to read more]

CEMEX Reduces Debt Posted: 01 Mar 2010 11:59 AM PST Ready Mix USA LLC, a joint venture in which CEMEX, S.A.B. de C.V. (NYSE:CX) has a 49.9% stake, completed the sale of 12 active quarries and certain other assets to SPO Partners & Co. for $420 million. The active quarries - which consist of 2 granite quarries in Georgia, 9 limestone quarries in Tennessee, and 1 limestone quarry in Virginia - are operated by Ready Mix USA LLC and were deemed non strategic by CEMEX and Ready Mix USA LLC. The proceeds from the sale will be partly used to reduce … [visit site to read more]

Molson Downgraded To Underperform Posted: 01 Mar 2010 11:44 AM PST We are currently downgrading shares of Molson Coors Brewing Company (NYSE:TAP) to Underperform. The company’s susceptibility to the global economic downturn and predominant operations in mature, low-growth markets is adversely affecting its top-line potential. Moreover, intense competition from other established players, along with seasonality of business and exposure to adverse foreign currency translations, severely undermine the company’s future growth prospects and profitability. The … [visit site to read more]

ArcelorMittal Surpasses Estimates Posted: 01 Mar 2010 11:29 AM PST Recently, ArcelorMittal (NYSE:MT) reported results for the fourth quarter and full year 2009. During the quarter, ArcelorMittal recorded net income of $1.1 billion, or 71 cents, as compared to a net loss of $2.6 billion, or $1.93 per share, for the fourth quarter of 2008. Reported EPS was much higher than the Zacks Consensus Estimate of 19 cents. Net income for the twelve months ended December 31, 2009 was $0.1 billion, or 8 cents, versus $9.4 billion, or $6.80 per share, in 2008. Full year EPS … [visit site to read more]

Brookfield Asset Management (NYSE:BAM) – A “Cash Flow-Spinning Machine” Despite Real Estate Distress Posted: 01 Mar 2010 11:16 AM PST Brookfield Asset Management (NYSE:BAM), the Toronto-based global property, power and infrastructure asset management company, has been in the news recently bidding for General Growth Properties… is that a sign that the company is grasping at straws? Not at all, according to Chris Mayer, an investments editor for Agora Financial. He recently issued a hotline announcement detailing where he sees the company as being headed: "Brookfield Asset Management (NYSE:BAM) is a conglomerate, with … [visit site to read more]

Analyst Interviews: Hotels & Lodging Stock Review Posted: 28 Feb 2010 09:00 PM PST The operating environment in the hotels and lodging industry has continued to deteriorate in the last several quarters, and we expect the operating metrics to remain stretched in the near term. As the recession continues, both business and leisure travelers are cutting back on trips. However, with some early signs of economic recovery, the industry is experiencing an increase in demand. While hotel occupancy levels have somewhat improved, we noticed that pricing pressures persists as hotels … [visit site to read more]

FX Options Weekly Outlook Posted: 28 Feb 2010 02:00 PM PST Jason Ayres, founder of OptionSource.net, provides a look a head of this week’s FX activity. … [visit site to read more]

Soros “Very Cautious” On China’s Economy Posted: 27 Feb 2010 11:00 AM PST With over 10 trillion yuan in Chinese bank loans disbursed in 2009, and more trillions on the way, George Soros, chairman of Soros Fund Management, remains concerned China's economy is overheated. In a recent Hong Kong interview he explains how a hard landing could be in the making. From MarketWatch: "Caixin: What is your attitude toward China now? Positive or negative? "Soros: I'm very cautious, until the economy cools off a little. When it does, I will be more optimistic … [visit site to read more]

You are subscribed to email updates from Daily Markets To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610