Apr 7, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Motorola Reorganizing Operations

Posted: 07 Apr 2010 11:51 AM PDT

Motorola Inc. (NYSE:MOT) reorganized its operations from existing three reporting segments to four reporting segments. In a recent filing with the SEC, the company announced that it will report according to its new structure from the first quarter of 2010. The decision is a part of management strategy to split the company into two publicly traded and independent entities in the first quarter of 2011.

After reorganization, The Home and Networks Mobility segment will be split into Home Business and … [visit site to read more]

Aetna Upgraded To Neutral

Posted: 07 Apr 2010 11:37 AM PDT

We recently upgraded our recommendation on Aetna (NYSE:AET) to Neutral. The current state of the global economy and market conditions are quite challenging with high levels of unemployment, diminished business and consumer confidence and volatility in both the US and international capital and credit markets. However, we feel Aetna has a strong balance sheet which will enable it to tide over the current crisis.
 
At the end of 2009, Aetna had $1.20 billion of cash and cash equivalents banking … [visit site to read more]

IBM Wins Over Travelport

Posted: 07 Apr 2010 11:22 AM PDT

International Business Machines Corp. (NYSE:IBM) announced that it has won an important customer in Travelport, a leading global distribution system (GDS) provider to provide new software designed to provide enhanced service for existing travel customers, open up new markets and expand travel options for consumers.

Under the multi-year, multi-million dollar agreement, IBM will provide Travelport with significant upgrades to the existing systems architecture and software infrastructure of its … [visit site to read more]

Eni: Offshore Platform Goes Online

Posted: 07 Apr 2010 11:09 AM PDT

Eni SpA (NYSE:E) is currently busy with its offshore gas production initiatives. The company said yesterday that it has started production at its offshore platform "Annamaria B”, located off the coast between Italy and Croatia.
 
Annamaria B has begun producing at the same rate as the other Croatian platform Annamaria A, at about 800,000 cubic meters per day. But Eni is planning to increase the rate to 1.2 million cubic meters per day.
 
The company conducts its major exploration and … [visit site to read more]

Does Anyone Remember What A Stock Market Correction Looks Like?

Posted: 07 Apr 2010 11:01 AM PDT

Bespoke yesterday highlighted that it has now been 42 days since the S&P 500 Index has had a pullback (one-day or multi-day) of 1% or more. As seen from the table below, since 1990 there have been 10 other periods where the index went 40 days or more without a 1% pullback.

The report noted: “The S&P 500 is up 8.75% over the last 42 days.  As shown, the number of days without the 1% pullback ranges from 40 to 70, and the price gain ranges from 4% to 9%. So while there have … [visit site to read more]

Arrow Acquires Converge & Verical

Posted: 07 Apr 2010 10:56 AM PDT

Arrow Electronics, Inc. (NYSE:ARW) entered into an agreement to acquire reverse logistics services provider Converge and parts catalog retailer Verical Inc.
Converge is a leading provider of reverse logistics services employing over 350 employees. Based in Peabody, Massachusetts, Converge has offices in Singapore and Amsterdam, including support centers throughout Europe, Asia and the Americas.
Reverse logistics engulfs all operations related to the re-use of products and materials. In other … [visit site to read more]

Spectrum Beats By A Penny

Posted: 07 Apr 2010 10:41 AM PDT

Spectrum Pharmaceuticals (NASDAQ:SPPI) reported fourth quarter earnings per share of 20 cents. The company posted a loss of 28 cents in the prior-year quarter.

The swing from loss to profit was possible due to an accounting restatement made by the company to reclassify common stock warrants from equity to liability, resulting in an income of $19.8 million.
 
Excluding the impact of the account restatement, Spectrum reported a loss of 19 cents compared to the Zacks Consensus Estimate of a loss … [visit site to read more]

Monsanto Surpasses Zacks Estimate

Posted: 07 Apr 2010 10:25 AM PDT

Monsanto Company (NYSE:MON) announced results for the second quarter of fiscal 2010. During the quarter, net income decreased to $887 million from $1,092 million in the same quarter of 2008.

EPS (excluding a restructuring expense) was $1.70 compared to $2.16 in the year-ago quarter. The decrease was due to a fall in revenue and gross margin. However, the reported EPS was above the Zacks Consensus Estimate of $1.66.

Revenue decreased 3.6% to $3,890 million from $4,035 million during the same … [visit site to read more]

Video: Risk Aversion Strong On Economic Data

Posted: 07 Apr 2010 10:23 AM PDT

Risk aversion strengthened this session following weak euro-zone economic data. … [visit site to read more]

FMC Lands New Perdido Work

Posted: 07 Apr 2010 10:10 AM PDT

Oil drilling equipment maker FMC Technologies Inc. (NYSE:FTI) announced the receipt of a subsea infrastructure contract from Anglo-Dutch supermajor Royal Dutch Shell plc. (NYSE:CVX) and BP plc. (NYSE:BP).
 
The contract calls for FMC Technologies to supply five subsea production trees and three subsea water injection trees, as well as build subsea and topside controls, manifold and tie-in equipment, and other systems and services. The company expects delivery to begin in the third quarter of 2010. … [visit site to read more]

FMC Lands Additional Perdido Work

Posted: 07 Apr 2010 10:10 AM PDT

Oil drilling equipment maker FMC Technologies Inc. (NYSE:FTI) announced the receipt of a subsea infrastructure contract from Anglo-Dutch supermajor Royal Dutch Shell plc. (NYSE:CVX) and BP plc. (NYSE:BP).
 
The contract calls for FMC Technologies to supply five subsea production trees and three subsea water injection trees, as well as build subsea and topside controls, manifold and tie-in equipment, and other systems and services. The company expects delivery to begin in the third quarter of 2010. … [visit site to read more]

Don’t Be A Knucklehead Investor: Why The Straightforward Approach Is Often The Most Profitable

Posted: 07 Apr 2010 10:08 AM PDT

Wednesday, April 7, 2010: Issue #1233
"Don't be a knucklehead."
This was the sage advice of John Roque, Chief Technical Strategist at WJB Capital in a note to clients earlier this week. He was advising them against trying to short strong markets or buy weak ones.
Such a simple, clear message.
For years, an abundance of confidence led me to believe that I was so good at picking stocks, I could do it at market tops or bottoms and bag a winner every time.
I don't do that anymore.
Although … [visit site to read more]

General Dynamics Sells Subsidiary

Posted: 07 Apr 2010 09:55 AM PDT

 
General Dynamics (NYSE:GD) sold its Satellite Development and Manufacturing Business to Orbital Sciences Corporation (NYSE:ORB). General Dynamics' subsidiary Advanced Information Systems used to oversee the business. The purchase consideration was $55 million.
 
Orbital augmented its workforce by about 325 new employees apart from a 135,000-square-foot space systems manufacturing, integration and test facility. Orbital develops and manufactures small- and medium-class rockets and space … [visit site to read more]

Mutual Funds: Top 5 Delaware Funds

Posted: 07 Apr 2010 09:46 AM PDT

Delaware Investments has it origins in an investment advisory firm established in 1929. The company launched its first mutual fund in 1938 and its institutional business is more than 30 years old. It manages more than $130 billion in assets and offers a wide range of products and services to its customers. These offerings range from asset management services and retirement plans for leading companies to mutual funds and insurance products for individuals.
Below we will share with you 5 top … [visit site to read more]

Stone Energy Downgraded

Posted: 07 Apr 2010 09:40 AM PDT

We have recently downgraded Stone Energy Corporation (NYSE:SGY) to Neutral from Outperform.
 
Lafayette, Louisiana-based Stone Energy Corporation is an independent oil and gas exploration and production (E&P) company. Stone is engaged in the acquisition and subsequent exploration, development, operation and production of oil and gas properties located primarily in the Gulf of Mexico (GoM).
 
Stone's initiative of moving away from liquidity management to a disciplined organic … [visit site to read more]

Keryx Gets Fast Track Status

Posted: 07 Apr 2010 09:25 AM PDT

Keryx Biopharmaceuticals (NASDAQ:KERX) received fast track status from the US Food and Drug Administration (FDA) for KRX-0401 (perifosine), which is being studied for treating refractory advanced colorectal cancer. This status is granted to drugs with the potential to treat serious or fatal conditions and qualify for a faster review process.
 
Keryx plans to initiate a phase III trial of perifosine in the second quarter of 2010 under the FDA's Special Protocol Assessment (SPA) … [visit site to read more]

Forex Trading: EURCHF Moves Away From 1.4318-23 Range

Posted: 07 Apr 2010 09:17 AM PDT

Just a normal buyer breaking up the monotony of the pairs sideways … [visit site to read more]

Invesco PowerShares Lists Industry’s First Suite Of U.S. Small-Cap Sector ETFs On NASDAQ

Posted: 07 Apr 2010 09:10 AM PDT

Chicago - April 07, 2010 - Invesco PowerShares, a leading provider of exchange-traded funds (ETFs), announced today the industry’s first suite of ETFs offering sector-specific beta exposure to U.S. small-cap equities began trading on the NASDAQ Stock Market. The suite is comprised of nine ETF portfolios; each constructed to track a subset of the S&P SmallCap 600 Index. The ETF portfolio names and ticker symbols are listed below.

Ticker
Name of PowerShares … [visit site to read more]

Neutral On Jabil

Posted: 07 Apr 2010 09:10 AM PDT

We have a Neutral rating on Jabil Circuit, Inc. (NYSE:JBL) with an expectation of revenue growth based on a recovery in the overall EMS industry in the current year and next, aided by an improving economic environment and a rise in the IT spending.

EMS Industry Expected to Grow

We believe that the EMS industry is well positioned to demonstrate strong growth over the next few years, driven by non-traditional or emerging EMS sectors such as industrial and medical and improving technology … [visit site to read more]

Morning Stock Market Movers: Best Buy, Buffalo Wild Wings, International Paper

Posted: 07 Apr 2010 09:06 AM PDT

Best Buy Co., Inc. (NYSE:BBY) - Bullish options investors are lining up to purchase call options on the specialty retailer of consumer electronics and accessories this morning with shares edging up 0.25% to $44.23 as of 10:40 am (ET). Near-term optimists are positioning for continued upward movement in the price of the underlying shares by picking up roughly 3,000 calls at the May $46 strike for an average premium of $0.76 apiece. Call buying activity continued at the higher May $48 strike where … [visit site to read more]

Mutual Funds: Top 5 Pacific Funds

Posted: 07 Apr 2010 09:02 AM PDT

The world's most advanced technological capabilities and a fast growing savings pool make the Pacific Basin countries a diverse and economically vibrant region. Prominent centers of production and fast growing potential markets ensure that it remains an exciting destination. Mutual funds from this sector continue to be good investment options as they harness the strength of both mature and emerging economies. This also ensures that investments can reap the benefits of growth opportunities … [visit site to read more]

Denbury To Sell Acquired Assets

Posted: 07 Apr 2010 08:55 AM PDT

Denbury Resources Inc. (NYSE:DNR) is stepping forward to sell non-core oil and gas properties of previously acquired Encore Acquisition Company to Houston-based Quantum Resources Management LLC for $900 million.
 
The assets to be sold are located in the Permian Basin, southeastern New Mexico, the Mid-continent area and the East Texas Basin. The divestiture is expected to be closed in May 2010. However, the sale does not include Denbury’s Haynesville Shale, Paradox Basin, Cleveland Sand Play … [visit site to read more]

Hot Stock Pick For 7 April 2010: DryShips

Posted: 07 Apr 2010 08:55 AM PDT

Dryships Inc (NASDAQ:DRYS)

With the improving economy and Baltic Index improving, Dryship seems to be finally making a reversal turn around after a long decline. Dryship breakthrough $6 on high volume and also the downtrend line as indicated on the graph. Technically, i am looking at it to test $7.98 resistance. But it is a long arduous journey with many overhead … [visit site to read more]

Video: UBS Upgrades Nokia

Posted: 07 Apr 2010 08:44 AM PDT

Despite acknowledging challenges for the company in the high end, UBS believes the market’s lack of value on Nokia’s own ability to generate stickiness has led to an upgrade. … [visit site to read more]

CareFusion To Acquire Medegen

Posted: 07 Apr 2010 08:36 AM PDT

CareFusion Corporation (CFN) has decided to acquire Medegen for $225 million in cash. CareFusion expects the acquisition to be neutral to the adjusted earnings per share in the first year of operations and increasingly accretive thereafter. The acquisition is expected to be completed by June 30, 2010.
 
Medegen is a leading innovator in infusion therapy which consists of clinically differentiated needle-less access valves and administration sets that deliver intravenous (IV) medication … [visit site to read more]

PowerShares Launches Nine Small Cap Sector ETFs

Posted: 07 Apr 2010 08:31 AM PDT

PowerShares launched nine highly anticipated new ETF products on Wednesday, introducing a line of funds that offer a new twist on traditional sector-specific investing. The nine PowerShares S&P SmallCap Sector Portfolios are based upon respective S&P SmallCap 600 Capped Sector Indexes, each of which is designed to measure the overall performance of common stocks of a respective sector. The new ETFs include:

S&P SmallCap Consumer Discretionary Portfolio (XLYS)
S&P SmallCap … [visit site to read more]

Indonesia ETF (IDX) Shrugs Off Earthquake, But Not Bubble Fears

Posted: 07 Apr 2010 08:30 AM PDT

In the pre-dawn hours on Wednesday, Indonesia became the latest country to be rocked by a natural disaster, as a 7.7 magnitude earthquake occurred at sea about 200 kilometers northwest of the Indonesian island of Sumatra. The quake was felt throughout Sumatra and Malaysia, and there were news reports of electrical outages throughout the country. The earthquake also sparked a tsunami alert in Thailand, as authorities began issuing warnings for coastal areas popular with tourists. Thailand's … [visit site to read more]

FedEx Initiated As Neutral

Posted: 07 Apr 2010 08:20 AM PDT

We are initiating our coverage on FedEx Corp. (NYSE:FDX) with a Neutral recommendation. The company serves as a proxy for the economy because of the volumes and diversity of the goods shipped.
 
Though FedEx has suffered from the recession over the last couple of years, improving global economy along with rising trade in international shipping is expected to fuel growth. Management predicts that U.S. industrial production, the main driver of the company's volume growth, will rise in the … [visit site to read more]

Australian Dollar: The Downside Prevails

Posted: 07 Apr 2010 08:17 AM PDT

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

Canadian Dollar: The Downside Prevails

Posted: 07 Apr 2010 08:17 AM PDT

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

FERC Approves El Paso Project

Posted: 07 Apr 2010 08:03 AM PDT

The Federal Energy Regulatory Commission (FERC) has approved El Paso Corporation's (NYSE:EP) $3 billion Ruby Pipeline project. The pipeline will benefit both natural gas producers and consumers in the western United States.
 
El Paso's 675-mile, 42-inch interstate natural gas pipeline will access significant Rockies supplies and make them available to consuming markets in California, Nevada and the Pacific Northwest. It is expected to transport natural gas from an existing supply hub at … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: FDO, CKR, MON

Posted: 07 Apr 2010 07:35 AM PDT

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

Van Eck Launches Small Cap Latin America ETF (LATM)

Posted: 07 Apr 2010 07:30 AM PDT

Van Eck, the New York-based ETF issuer behind several of the most successful new product launches in recent years, introduced the Market Vectors Latin America Small-Cap Index ETF (LATM) on Wednesday. LATM, which will seek to replicate the performance of the Market Vectors Latin America Small-Cap Index, will be the first U.S.-listed ETF offering exposure to small cap stocks in Latin America. The underlying index consists of about 80 stocks that generate the majority of their revenues in Latin … [visit site to read more]

Geithner Heads To China

Posted: 07 Apr 2010 07:25 AM PDT

The big news on all of the cable channels this morning is US Treasury Secretary Tim Geithner's surprise trip to China. Secretary Geithner was in India meeting with Indian Finance Minister Pranab Mukherjee and apparently received an invitation to head on to China. Geithner will undoubtedly be talking about the renminbi (CNY), and China's plans for their currency. As I wrote yesterday, Geithner postponed the April 15 deadline for the annual review of China's trade policies, which was … [visit site to read more]

How Crony Capitalism Lurks In The Heart Of The Health Care Bill

Posted: 07 Apr 2010 07:15 AM PDT

Much ink has been spilled over the health care bill in the past few weeks… and rightly so, as it's "one of the costliest pieces of legislation, potentially, of the past 40 years." However, an article by Bill Fleckenstein sheds new light on the debate, and suggests that it's actually Greenspan's mistakes since the 1990s that are largely to blame for making its passage a reality.
His actions caused American public anger to build up so much – and eventually boil over — in such … [visit site to read more]

Video: Asian Markets Rise This Session

Posted: 07 Apr 2010 07:14 AM PDT

Asian markets were all on the upside this session following strong performance in domestic shares. … [visit site to read more]
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