Dec 30, 2009

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

Dollar Bulls Bushwhack Foreign Currencies

Posted: 30 Dec 2009 09:16 AM PST

The non-dollar currencies got bushwhacked yesterday by the dollar bulls around mid-day, and there's been no recovery since. The Treasury is back at the auction table, with $32 billion in 7-year Treasuries for you to buy at the fantabulous yield of…. Drum roll please…. 2.60%! All that and more, so buckle yourself in, and make certain to keep your arms and legs inside the Pfennig at all times during the ride!
Front and center this morning, we have the bushwhacking that the non-dollar … [visit site to read more]


GM Offers Unusual Incentives

Posted: 30 Dec 2009 09:07 AM PST

General Motors (GM) plans to make a payment of $7,000 to auto dealers for each Saturn and Pontiac brand car they can move off their lots. The dealers would technically have to become the first owner of the cars in order to get the incentive. Afterwards, they would be able to pass on the incentives by selling the cars as "used vehicles” to customers at a steep discount. The deal would expire on Jan 4, 2010.
 
GM made this unusual incentive plan for dealers instead of customers, as it no … [visit site to read more]

Ford To Begin Windsor Production

Posted: 30 Dec 2009 03:50 AM PST

Ford Motor (F) has decided to begin production of the V-8 engine at its Essex Engine plant in Windsor, Ontario, which was shut down in 2007. The engine will be used in Ford's 2011 Mustang GT.
 
According to a contract talk with Canadian Auto Workers (CAW) in October, Ford will employ 200 workers in one shift at the plant to make the V-8. However, Ken Lewenza – president of the CAW – is not happy with the decision.
 
Lewenza has asked Ford to add more shifts to install the … [visit site to read more]

Pfizer Stops Lung Cancer Study

Posted: 30 Dec 2009 03:34 AM PST

Pfizer Inc. (PFE) recently announced that it has decided to discontinue the late-stage study of its lung cancer candidate figitumumab (CP-751,871). The decision followed an analysis, which revealed that the candidate was unlikely to meet the main goal of improving overall survival. The study was designed to evaluate the candidate as a first-line treatment in patients suffering from advanced non-adenocarcinoma non-small cell lung cancer (NSCLC).
 
The late-stage study was initiated based … [visit site to read more]

China Telecom To Sell BlackBerry

Posted: 30 Dec 2009 03:16 AM PST

China Telecom (CHA), the largest Chinese fixed-line operator, has reportedly sealed an agreement with Research In Motion (RIMM) to sell BlackBerry and related services in China. This represents the first major high-end handset contract for the Chinese operator.
 
The company is currently conducting tests of the popular device with full commercial roll-out is not expected until early 2010. China Telecom is augmenting its mobile handset portfolio in an effort to boost its share in the … [visit site to read more]

Video: Expect A Quiet End To 2009

Posted: 30 Dec 2009 01:00 PM PST

Floor trade Alan Valdes shares his opinions on the recent Dollar/Dow trend and what to expect at the end of 2009 and the beginning of 2010. … [visit site to read more]

PetroChina’s Canadian Project OKed

Posted: 30 Dec 2009 03:00 AM PST

PetroChina Company Ltd. (PTR), the largest integrated oil company in China, gained approval from the Canadian government to acquire a majority stake in two oil sands projects in western Canada for C$1.9 billion ($1.8 billion). The decision is subject to commitments by PetroChina on spending and investment, as well as job creation. 

As per the terms of the agreement with Athabasca Oil Sands Corp. (a privately held Calgary-based group) announced in August, the Chinese energy giant will … [visit site to read more]

After 1 Year, Obama Vs. Reagan

Posted: 30 Dec 2009 02:56 AM PST

As we approach the end of the year, we are also approaching the end of President Obama's first year in office. You might be wondering how he is doing, based on actual numbers (rather than political spin).

Obama clearly inherited a difficult situation economically. Only two others in the modern era came even remotely close. One, of course, was FDR, but unfortunately the data from then is rather sparse, and mostly available on just an annual basis, or at best quarterly (good economic data was … [visit site to read more]

Forex Trading: GBPUSD Tests 200 Day Moving Average At 1.6046

Posted: 30 Dec 2009 07:47 AM PST

The 200 day moving average is being tested at the 1.6046 level now.  
The action today is of significance and should lead to further upside momentum for the pair.  Looking at the daily chart a move above the 200 day would next target 1.6158 and then the 38.2% retracement of the move down from the November high to the low reached today. That level comes in at the 1.6231. 
The  sharp move higher today has the potential to take out the high from yesterday at 1.6067.  … [visit site to read more]

Teva Bolsters Position In Japan

Posted: 30 Dec 2009 02:45 AM PST

Generic player Teva Pharmaceutical Industries Ltd. (TEVA) recently announced that its joint venture in Japan will acquire a majority stake in Taisho Pharmaceutical Industries, Ltd. Teva-KOWA Pharma Co., Ltd., Teva's joint venture in Japan with KOWA Company, Ltd., will acquire at least 66.7% of Taisho’s outstanding shares. The deal is schedule to close by year end. 

While the companies did not disclose any financial details regarding the agreement, we believe this move will help Teva … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: AMR, GMAC

Posted: 30 Dec 2009 12:44 PM PST

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]

Micromet’s Pipeline Impresses

Posted: 30 Dec 2009 02:31 AM PST

We have been waiting for final phase II data on Micromet's (MITI) lead pipeline candidate blinatumomab, which was presented earlier this month at the American Society of Hematology (ASH) meeting. The company's product pipeline consists of novel antibodies generated with the proprietary bispecific T-cell engager (BiTE) antibody platform, as well as conventional monoclonal antibodies. The data is from a phase II clinical trial of the drug that was conducted with patients suffering from … [visit site to read more]

CONSOL’s Fola To Resume Operations

Posted: 30 Dec 2009 02:25 AM PST

Yesterday, Judge Robert C. Chambers, of the United States District Court for the Southern District of West Virginia, ruled that CONSOL Energy Inc's (CNX) Fola Operations near Bickmore, West Virginia, can continue operations past the judge’s previously imposed deadline of Jan 23, 2010.
 
The ruling granted relief to CONSOL's Fola Coal subsidiary against the Nov 24, 2009 ruling, which found deficiencies in the permit notification process by the U.S. Army Corp of Engineers. The Nov … [visit site to read more]

Video: Red Session Across The Boards In Asia

Posted: 30 Dec 2009 12:24 PM PST

Lower commodity prices affected domestic commodity-related stocks and led the way for the major Asian/Pacific indices to close out their session in the red. … [visit site to read more]

Intuitive Downgraded To Neutral

Posted: 30 Dec 2009 07:14 AM PST

We have recently downgraded Intuitive Surgical Inc. (ISRG) to Neutral as a result of its limited upside potential to the stock at the current level. At the current price, the Intuitive stock is trading at roughly 42.9x our fiscal 2010 EPS estimate of $7.15, considerably higher than the peers' mean P/E multiple of approximately 18.6.
 
Therefore, we think that Intuitive has only a restricted potential at the current level. Hence, we have downgraded the stock to "Neutral” with a target … [visit site to read more]

Initiating Nicor At Neutral

Posted: 30 Dec 2009 02:10 AM PST

We are initiating coverage on Nicor Inc. (GAS) with a Neutral recommendation and a target price of $45.
 
Nicor's core regulated gas distribution business, Nicor Gas, boasts of a large, stable, residential, and commercial customer base of more than 2 million with sustainable growth, low costs and rates, a diverse supply portfolio that includes significant gas storage assets, solid operations, and favorable competitive standing. The company also owns Tropical Shipping, a transporter of … [visit site to read more]

ANF Reports Strong Holiday Sales

Posted: 30 Dec 2009 02:00 AM PST

Abercrombie & Fitch Co. (ANF), a leading international specialty retailer, reported strong holiday sales as U.S. retailers performed relatively better this year compared to the dismal holiday season of 2008. According to the data released by SpendingPulse, a unit of MasterCard Advisors, U.S. retail sales reportedly increased 3.6% during the period Nov 1 to Dec 24, 2009. 

Abercrombie increased its holiday promotions to capitalize on the shopping spree of U.S. customers, and offered … [visit site to read more]

Forex Trading: GBPUSD Next Target Level At 1.6021/26. Shorts Are Caught. EURGBP Continues To Move Lower.

Posted: 30 Dec 2009 06:52 AM PST

The beat goes on as GBPUSD moves above the 1.6000 level now.  The next technical target becomes the 1.6021 level and the 200 hour MA at the 1.6026 level.  The holiday market and liquidation in the EURGBP continue to effect the price action.   Support at 1.5977 … [visit site to read more]

JOE Sells Non-Strategic Assets

Posted: 30 Dec 2009 01:45 AM PST

The St. Joe Company (JOE), a publicly held operationally diversified real estate company, recently sold St. Johns Golf & Country Club, an 18-hole daily fee course, clubhouse and maintenance facility, for $2.4 million. The asset was sold to Billy Casper Golf Management, a Northern Virginia golf management company that manages over 100 golf courses across the U.S., including the Bent Creek Golf Course in Jacksonville. 

In accordance with the disposal of the non-strategic asset, St. … [visit site to read more]

AstraZeneca Strengthens Pipeline

Posted: 30 Dec 2009 01:30 AM PST

Recently, AstraZeneca (AZN) decided to acquire a France-based research company Novexel for an initial payment of $350 million and another $80 million for Novexel's cash balance. Novexel is also eligible to receive another $75 million on the achievement of certain milestones. The deal primarily involves two candidates CAZ104 and CEF104 which are being studied for the treatment of infections in the abdomen and urinary tract as well as hospital acquired pneumonia. Next year, both of them are … [visit site to read more]

Forex Trading: GBPUSD Takes The Next Step Higher

Posted: 30 Dec 2009 01:25 AM PST

100 hour MA comes in at the 1.5958 and price has moved above the level.   The rule says the price should continue to move higher with a test of the 200 hour MA as a target at the 1.6025 currently. Note this target is in effect as long as the  price remains above 100 hour moving average.  I would use a 1.5943 stop currently, but would keep the trade amount smaller than usual as the action is largely influenced by the EURGBP, and it too is approaching the next key support at … [visit site to read more]

Initiating Family Dollar At Neutral

Posted: 30 Dec 2009 01:15 AM PST

We have recently initiated coverage on Family Dollar Stores Inc. (FDO), a self-service retail discount store chain, with a Neutral recommendation and a target price of $29.00, as we anticipate it to perform in line with the industry. 

Headquartered in Matthews, North Carolina, Family Dollar offers general merchandise in four categories – consumables, home products, apparel and accessories, and seasonal and electronics − and sells merchandise at prices from under $1 to … [visit site to read more]

BofA To Alter Mortgages Disclosure

Posted: 30 Dec 2009 06:00 AM PST

Bank of America Corporation (BAC) said on Tuesday that it would develop a program to simplify its modified mortgages disclosure. The modified disclosure will convey straightforward key borrowing terms to customers who have agreed to a permanent mortgage modification under the government’s Home Affordable Modification Program (HAMP). 

BofA initiated the disclosure program in Apr 2009 for new mortgages. The program has gradually expanded to cover credit cards and other home loan types … [visit site to read more]

Stock Market News Briefs: Bank Of America Corporation, CNF, Inc., H&R Block, Inc., Pfizer, Inc., Broadcom Corporation, Bucyrus International, Inc., China BAK Battery, Inc., Google Inc., Intel Corporation, Standard Microsystems Corporation, STEC, Inc., Volterra Semiconductor Corporation

Posted: 30 Dec 2009 12:56 AM PST

 STEC (STEC) shares moved higher for the tenth session, gaining on takeover speculation. Moreover, Broadpoint AmTech posted a “buy” rating on the shares with a $23 price target.

 Broadcom (BRCM) agreed to a $160.5 million proposed settlement of a class-action lawsuit concerning the back-dating of stock options after SEC complaints against the firm’s CEO and CFO were dismissed by a California judge on claims the state prosecutors had intimidated three key … [visit site to read more]

Forex Trading: GBPUSD Moves Higher. Tests Target Resistance At 1.5920 Area.

Posted: 30 Dec 2009 05:53 AM PST

Despite the better than expected data from the Chicago PMI, the GBPUSD has moved higher (HMMMM).  The price is testing the resistance target area at the 1.5920/31 level which was the low price from last week (See prior post).  The level is also near the 38.2% retracement of the move down from yesterday's high price (at 1.5922).  I would expect profit taking selling against this level, however, the action is a bit confusing given the stronger data today. 

The reason for … [visit site to read more]

Forex Trading: GBPUSD Moves Back Above 1.5881 Level

Posted: 29 Dec 2009 11:32 PM PST

As per prior post (click here), the 1.5881 level is a key level today. The price just pushed back above the level and we should now expect to see buyers on dips back toward the level.  In the process the price moved above the 100 bar MA on the 5 minute chart at the 1.5877 level currently.  This also should provide support for the pair.  The high for the day reached 1.5915 and this along with the other resistance at 1.5820/31 are the next target levels as long as the price is … [visit site to read more]

Forex Trading: USDJPY Reaches 92.32 Target Level. Now What?

Posted: 29 Dec 2009 11:17 PM PST

The USDJPY has reached the 92.32 target outlined in our video commentary and written commentary over the last 24 hours (see prior post from yesterday by clicking here).  
I would expect some profit taking selling against the level as the move higher is still a grind. However, the upside momentum should remain in tact as long as the 91.76/86 level can hold below. 
The longer term upside target is the 93.12 level which is the 50% retracement of the move down from the April 6th … [visit site to read more]

Stock Buy: Wolverine World Wide Inc.

Posted: 29 Dec 2009 04:00 PM PST

Wolverine World Wide Inc. (WWW) recently declared a quarterly dividend of 11 cents per share. The company pays an industry-leading yield of 1.6%.
Company Description
Wolverine World Wide markets branded casual, active lifestyle, work, outdoor sport and uniform footwear and apparel. The company offers well-known brands like Bates®, Chaco®, Cushe(TM), Hush Puppies®, HYTEST®, Merrell®, Sebago® Soft Style® and Wolverine®. Wolverine is also the exclusive footwear licensee of popular … [visit site to read more]
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