Apr 5, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Marsh Acquires HSBC Insurance

Posted: 05 Apr 2010 12:05 PM PDT

Expanding its insurance portfolio, Marsh & McLennan Co. Inc. (NYSE:MMC) announced on Wednesday the completion of its acquisition of HSBC Insurance Brokers Ltd (HIBL), a London-based wholly owned subsidiary of HSBC Bank (NYSE:HBC). The company arrived at this agreement with HIBL in December 2009. 

Marsh & McLennan acquired the HSBC wing for an all cash transaction of £135 million (approximately $205 million). While the deal has been sealed in most of the global locations, Marsh & … [visit site to read more]

U.S. Rig Count Hits 14-Month High

Posted: 05 Apr 2010 11:50 AM PDT

In its weekly release, Houston-based oilfield services company Baker Hughes Inc. (NYSE:BHI) reported a rise in the U.S. rig count (number of rigs searching for oil and gas in the country), reflecting intensified drilling activity by the producers.

Rigs exploring and producing in the U.S. totaled 1,465 for the week ended Apr. 1, 2010 (as can be seen in the first chart below, from Baker Hughes). This is up by 21 from the previous week's tally and represents the highest level since the week ended … [visit site to read more]

How To Protect Your Gold Stock Profits

Posted: 05 Apr 2010 11:40 AM PDT

The trade sounded too good to be true.

The mega-rich Chinese government, ensuring the success of a few small gold and silver stocks?

Almost everyone likes a good “China story,” and almost everyone likes a good “gold mining story.” Put the two together and you’ve got a heck of a story.

This story was all my colleague Matt Badiali, editor of the commodity-focused S&A Resource Report, could talk about for several weeks last year. He encouraged anyone who would listen to buy several … [visit site to read more]

VimpelCom To Wrap Up Laos Deal

Posted: 05 Apr 2010 11:36 AM PDT

Russian wireless carrier VimpelCom (NYSE:VIP) reported its plans to proceed with the acquisition of a majority stake in Millicom Lao Co. Ltd., a wireless operator with operations in Laos. This clears the ongoing uncertainty surrounding the completion of the deal, which was originally scheduled for completion by the end of 2009. 

VimpelCom signed a pact in September 2009 to acquire a 78% stake in Millicom Lao Co Ltd from Netherlands-based Millicom Holding B.V., a subsidiary of telecom … [visit site to read more]

Mutual Funds: Top 5 Best Performing Small Cap Funds

Posted: 05 Apr 2010 11:36 AM PDT

Investors willing to increase the risk profile of their portfolios to receive higher returns would do well to consider small-cap funds. These funds have much higher potential because they generate significant demand driven sales during a rising market which pushes up prices. In addition, many smaller firms reinvest their gains back into their business. This reassures shareholders of improved performance and profit potential. With the advantage of widely diversified portfolios and expert … [visit site to read more]

Aegon’s Restructuring On Track

Posted: 05 Apr 2010 11:21 AM PDT

Keeping pace with its ongoing restructuring program that began in 2009, Aegon NV (NYSE:AEG) announced the sale of its funeral insurance business in Netherlands. Although the sale took place on Feb 1, 2010, it was announced on Friday. The company's insurance unit has been disposed off to Egeria, a Dutch investment firm for €212 million. 

The decision of vending off the funeral insurance business was in line with the Aegon's strategy of reorganizing its product portfolio and … [visit site to read more]

Isis Inks Deal With Glaxo

Posted: 05 Apr 2010 11:06 AM PDT

Isis Pharmaceuticals, Inc. (NASDAQ:ISIS) recently inked a major deal with GlaxoSmithKline (NYSE:GSK) under which Isis ' antisense drug discovery platform will be used for the development of new treatments for rare and serious diseases, including infectious and ocular diseases. 

Isis will receive an upfront payment of $35 million under the deal which covers up to six programs. In addition to the upfront payment, the company also stands to receive up to $20 million in milestone payments for each … [visit site to read more]

ISM Services Index Surges

Posted: 05 Apr 2010 11:05 AM PDT

The Institute for Supply Management's non-manufacturing, or service, sector rose to 55.4 in March, up 2.4 points from February, and was above consensus expectations of a 54.0 reading.

This is the third straight month that the index has been above the magic 50.0 level which separates expansion from contraction. Services are lagging well behind the manufacturing index which was reported on Thursday at a reading of 59.6, up 3.1 points and also well above expectations (see ISM Reaches 6-Year … [visit site to read more]

The Biggest Fiscal Issue In America Today: More Public Sector Unionization = More State Debt

Posted: 05 Apr 2010 11:01 AM PDT

From the Washington Examiner article “Public Sector Unions and State Debt Go Hand in Hand” by David Fredosso:
“The states with the highest per-capita debt all have something in common: Robust public-sector unions that have, over the years, cut sweetheart deals with politicians — usually, but not always, Democrats. In the graph above, each blue square represents a state, plotted by its per-capita debt and the percentage of state and municipal workers in public sector … [visit site to read more]

Global Payments Q3 Tops

Posted: 05 Apr 2010 10:51 AM PDT

Global Payments Inc. (NYSE:GPN) posted fiscal 2010 third-quarter earnings after the closing bell on Wednesday. The company swung to a net income of $48.5 million, compared to a net loss of $106.8 million in the year-ago period. Excluding certain special items, earnings per share came in at 58 cents, which topped the Zacks Consensus Estimate by 5 cents. 

Global Payments offers electronic transaction processing services for consumers, merchants, Independent Sales Organizations (ISOs), … [visit site to read more]

Citi’s Primerica IPO Raises $320M

Posted: 05 Apr 2010 10:36 AM PDT

Taking its restructuring initiatives a step ahead, on Wednesday, Citigroup Inc. (NYSE:C) announced the initial public offering (IPO) and spin-off of a part of Primerica Inc., its insurance unit. The company raised $320.4 million from the IPO by selling 21.4 million shares at a price of $15 each. This came in above prior expectations of $236 million. 

Previously Citi was planning to sell 18 million of Primerica shares in the range of $12-$14 per share, which was suppose to raise about $236 … [visit site to read more]

T-Mobile/Orange UK Finally Unite

Posted: 05 Apr 2010 10:21 AM PDT

After a prolonged drama European telecom giants Deutsche Telekom (NYSE:DT) and France Telecom (NYSE:FTE) have officially merged their UK operations in a 50-50 joint venture. This follows the recent approval from the European Commission, the executive body of the European Union (EU), and other necessary regulatory clearances. 

The management structure of the combined entity has been announced. The former chief executive of Orange UK will be the CEO of the integrated company while the former … [visit site to read more]

Morning Stock Market Movers: United States Natural Gas ETF, Peabody Energy, International Game Technology

Posted: 05 Apr 2010 10:11 AM PDT

Panera Bread Co., Inc. (NASDAQ:PNRA) - Bullish options players picked up call options on the operator of the North American bakery-café chain, Panera Bread Co., today after the firm was initiated as a 'buy’ with an 18-month target share price of $100.00 at DA Davidson this morning. Panera’s new ratings coverage sent its shares sharply higher by 5.20% to a new 52-week high of $80.35, and inspired options optimists to take a bite out of some calls on the stock. Bullish traders gobbled up 2,700 … [visit site to read more]

Residential Real Estate: How Strategic Defaults Will Torpedo Your Home Value

Posted: 05 Apr 2010 10:09 AM PDT

Monday, April 5, 2010: Issue #1231
Les Christie of CNN Money says the big fall-off in home values is about to end.
In a recent column, he sites projections from Fiserv and Moody's that indicate the residential real estate market is close to stabilizing and may even rebound in the year ahead.
Don't believe him.
True, the S&P/Case-Shiller home prices index shows that home prices are leveling off and even turning higher in some areas. In Southern California, for example, February's … [visit site to read more]

Video: Market Movers: ARD, SD, AAPL, MPEL, AA, JBX, AMP

Posted: 05 Apr 2010 10:06 AM PDT

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

Integrys Actively Downsizing

Posted: 05 Apr 2010 10:05 AM PDT

Integrys Energy Services Inc., a non-regulated subsidiary of Integrys Energy Group Inc. (NYSE:TEG) announced the sale of nearly all of its wholesale electric marketing and trading business to Macquarie Cook Power, a subsidiary of Macquarie Group Limited. Earlier last week, Integrys Energy Services closed the sale of its Environmental Markets business to EDF Trading North America LLC.
These sales were in correlation to Integrys Energy Services’ strategy of downsizing its scope of its … [visit site to read more]

Goldman Sachs: Rounded Reversal Arc Into Key Support

Posted: 05 Apr 2010 10:04 AM PDT

Thanks to a reader for pointing out this near-perfect rounded reversal pattern on Goldman Sach’s (NYSE:GS) intraday chart, which takes price currently into a key “make or break” support level.

Let’s take a moment to see the Rounded Reversal example as well as the key support price that Goldman is challenging currently.

First, the Rounded Reversal as seen on the 60-min chart:

(Click for full-size image)

Using the 3/10 Oscillator (or any similar momentum indicator), we see a negative … [visit site to read more]

Video: USD Mixed After ISM Service, Home Sales Data

Posted: 05 Apr 2010 09:55 AM PDT

The U.S. dollar traded mixed against the major currencies. The ISM services index and pending home sales came in better-than-expected. … [visit site to read more]

Brink’s In Strong Position

Posted: 05 Apr 2010 09:49 AM PDT

Recently, Brink’s Home Security Holdings, Inc. (CFL) reported results for the fourth quarter and full year 2009, which ended on 31 Dec, 2009.
 
Earnings
 
During the quarter, the company reported a net income of $21.7 million, up from $16.3 million in the year-ago quarter. EPS was 47 cents, up from 36 cents in the fourth quarter of 2008. Reported EPS surpassed the Zacks Consensus Estimate of 28 cents.
 
During 2009, reported net income was $75.5 million, slightly up from $72.4 … [visit site to read more]

Forex Trading: USD/CHF Continues To Respect Uptrend Support Line

Posted: 05 Apr 2010 09:38 AM PDT

USD/CHF - Price action on USD/CHF, a daily chart of which is shown, has continued to follow and respect a clear uptrend support line extending from the November 2009 lows below parity. Late last week, price dipped below this support trendline, as well as the key 1.0500 support level, but quickly recovered to end the week well above these support factors. Currently, price is also close to a long-term downtrend resistance line extending from the November 2008 high. The future directional bias on … [visit site to read more]

IBM Sells PLM Operations

Posted: 05 Apr 2010 09:33 AM PDT

International Business Machines Corp. (NYSE:IBM) announced the completion of the sale of its sales and client support operations to Dassault Systèmes (DS), a leading provider of 3D software and Product Lifecycle Management (PLM) solutions. The acquisition will fetch IBM approximately $600 million, including customer contracts and related assets.
Under the agreement, Dassault acquired IBM's PLM software application portfolio as well as customer contracts and related assets. IBM's PLM sales and … [visit site to read more]

RR Donnelley Downgraded

Posted: 05 Apr 2010 09:17 AM PDT

We are downgrading R.R. Donnelley & Sons Company (NYSE:RRD) to Neutral from our previous Outperform rating and lowering our price target to $23.00. Our target is based on a P/E multiple of 15.2X our 2010 EPS estimate.
R.R. Donnelley's fourth quarter results beat the Zacks Consensus Estimate, but were much below the year-ago level. The challenging economic environment led to weakness across all end-markets, with business slowing down at several key customers. As a result, the company was … [visit site to read more]

Constellation Signs Deal With NYSE

Posted: 05 Apr 2010 09:01 AM PDT

Constellation Energy Group Inc.'s (NYSE:CEG) subsidiary, Constellation NewEnergy Inc., has entered into a green electricity purchase agreement with the New York Stock Exchange, a unit of NYSE Euronext Inc. (NYSE:NYX). NYSE Euronext is a leading global operator of financial markets and provider of innovative trading technologies.
 
As per the agreement, Constellation NewEnergy will supply renewable energy certificates (RECs) to match NYSE's annual requirement of approximately 28 million … [visit site to read more]

Why The Bulls Can Stand Strong At Home And Overseas

Posted: 05 Apr 2010 09:01 AM PDT

Stocks enjoyed another plus week, closing one of the better Marches of the past 80 years. It seems like ages since volatility has been this low, and there have been many complaints about complacency and listlessness. Yet those concerns may be misplaced if indeed we are enjoying the second leg of a normal bull cycle. Low volatility in a bearish phase does suggest complacency, to be sure, but in a bullish phase it serves more to keep expectations in check.

Overseas large caps (VEU) … [visit site to read more]

Cooper Industries, Danaher Form JV

Posted: 05 Apr 2010 08:45 AM PDT

Cooper Industries plc (NYSE:CBE) and Danaher Corporation (NYSE:DHR) announced the formation of a joint venture combining Cooper's Tools business with certain tools businesses from Danaher Corporation's Tools and Components segment. 

Cooper and Danaher each will own a 50% stake in the new company. This joint venture will combine two highly complementary tools businesses with well known brands, experienced management teams and global customer bases. 

Danaher and Cooper will have equal … [visit site to read more]

Macerich Refinances Property

Posted: 05 Apr 2010 08:30 AM PDT

The Macerich Company (NYSE:MAC), a leading real estate investment trust (REIT), has recently refinanced South Plains Mall, a 1.2 million square feet shopping mall in Lubbock, Texas. The $105 million refinancing transaction took place with the Royal Bank of Scotland, one of the retail banking subsidiaries of the Royal Bank of Scotland Group Plc (NYSE:RBS).
 
South Plains Mall, the largest shopping center within a 120 mile radius of the city, is anchored by four leading retail giants – Sears … [visit site to read more]

Allscripts Signs On New Customer

Posted: 05 Apr 2010 08:15 AM PDT

Allscripts-Misys Healthcare Solutions, Inc. (NASDAQ:MDRX) recently entered an agreement with a new client, Capital Region Orthopaedics. Per the agreement, Capital Region Orthopaedics has selected the Allscripts Electronic Health Record (EHR) and Practice Management solution to automate and connect business functions for their 27 physicians across the Albany area. Financial terms of the agreement have not been disclosed. We believe that the new agreement will boost Allscripts’ top-line by expanding … [visit site to read more]

Video: US Government Releases Turbulent 2009 US Airliner Results

Posted: 05 Apr 2010 08:09 AM PDT

The Us Department of Transportation announced that the number of people traveling within, to or from the US fell by 5.3% with more planes being full. … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: JCG, AAPL

Posted: 05 Apr 2010 08:01 AM PDT

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]

The Shocking Truth About Leveraged ETFs

Posted: 05 Apr 2010 07:56 AM PDT

The SEC's recent decision to take a closer look at the use of swaps and other derivatives by exchange-traded products and mutual funds has once again thrown leveraged ETFs under the microscope, as regulators begin examining the tools and strategies employed by these products to accomplish their objectives. During the study, approval of any ETFs that "particularly rely on swaps and other derivative instruments to achieve their investment objectives" will be halted, a move that will bring … [visit site to read more]

Video: Asian Markets Rise To Start The Week

Posted: 05 Apr 2010 07:53 AM PDT

The major Asian/Pacific markets that were open for trading this session all closed on the upside following positive economic data in the US and strong domestic share performance. … [visit site to read more]

Media Appearance…and Other Items Of Interest

Posted: 05 Apr 2010 07:33 AM PDT

 
For those who are interested, I will be a guest on Fox Business News with host Brian Sullivan at 1 p.m. EST today, where I will be discussing the potential implications of the Dow Jones Industrials’ rapid rise over the past twelve months, as well as the outlook for the markets and the economy more generally.
Otherwise, Gongol.com is out with its latest EconDirectory, which ranks business and economics websites based on average daily traffic. Thanks to all of you (once again), … [visit site to read more]

Video: Crude Soars On Positive Economic Data

Posted: 05 Apr 2010 07:10 AM PDT

Front month crude prices soared this session following strong US economic data on Friday. … [visit site to read more]

Forex Trading: U.S. Non-Farm Payrolls On Tap

Posted: 02 Apr 2010 12:23 AM PDT

U.S. Non-Farm Payrolls on Tap
The U.S. payrolls report is due today with analysts forecasting the economy added 185,000 jobs last month. That would be an outcome that would likely lift the U.S dollar and boost expectations for higher U.S. interest rates.
Economic News
USD - U.S Dollar Recovers Ground vs. EUR
The U.S. dollar hit a 7 month high against the Japanese yen on Thursday as Japanese investors rang in Japan’s fiscal year by moving funds abroad into higher-yielding currencies and assets. … [visit site to read more]
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