Jan 1, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

Picture du Jour: Goodbye To The “Zeros Decade”

Posted: 31 Dec 2009 10:03 PM PST

As we wave goodbye to the “zeros decade”, Chart of the Day highlighted the price performance of the Dow Jones Industrial Index for each decade since 1900.
As the graph below illustrates, the performance of the Dow from the end of 1999 through 2009 was the second worst performance on record. “Only the Great Depression decade of the 1930s was worse. The current zeros decade also shares an unfortunate outcome with the 1930s in being a decade during which the Dow actually ended lower than … [visit site to read more]


Trust Tim Geithner, Larry Summers, Barney Frank?

Posted: 31 Dec 2009 09:59 PM PST

Blank checks are the antithesis of good public policy.

America can not allow the passage of time to lessen the outrage over the Obama administration’s Christmas Eve bonus to the financial sinkholes known as Freddie Mac (FRE) and Fannie Mae (FNM). Platitudes and posturing aside, the American taxpayer is being set up as never before.

A blank check may serve to cover a host of past financial and legislative failures promoted by the likes of Barney Frank, Chris Dodd, John Kerry et al, … [visit site to read more]

The 8 Best Performing ETFs Of 2009

Posted: 31 Dec 2009 09:51 PM PST

The year began with a free-falling market, but once we hit March, the markets made a fast about-face. Commodities and emerging markets lead the markets in the 2009, and it’s no surprise that their related exchange traded funds (ETFs) experienced some of the most gains. Which ETFs made the 2009 leaderboard?

It should be noted that the funds listed are some of the top long-only ETFs, since one can’t really judge leveraged funds by their long-term performance.

Coal. A poor economy, very … [visit site to read more]

Get Ready For 2010: What You Need To Know Before You Start Investing

Posted: 31 Dec 2009 09:45 PM PST

Last year left investors hoping for positive change, and they certainly seemed to have gotten it in 2009.

Though the Dow plummeted to a bruising low of 6,547 in March, the major U.S. indexes have since largely reflected a more upbeat attitude.

Just yesterday, the Dow closed at 10,548.51, the Nasdaq sat at 2,291.28 and the S&P 500 set the financial world into a tizzy by fully retracing 50% of what it had previously lost.

Even the job market got some good news on Tuesday, when … [visit site to read more]

Cartoon: Let’s “Return” 2009!

Posted: 31 Dec 2009 09:41 PM PST

Source: Marshall Ramsey, Comics.com, December 27, … [visit site to read more]

Why Now Is The Perfect Time To Invest In Commercial Real Estate Stocks

Posted: 31 Dec 2009 04:01 PM PST

Back in April, I wrote a column detailing the looming train wreck in the commercial real estate market.

It turned out to be a rather controversial piece.

How controversial? You can judge for yourself here in my April column: The Commercial Real Estate Sector: As The Other Shoe Drops - Be Wary of Bank Stocks. It was groundbreaking enough to land me a spot on Glenn Beck’s show on Fox News.

Virtually nobody else was talking about the topic and a number of readers e-mailed to tell me … [visit site to read more]

Economic Disasters Need Taxpayer Support

Posted: 31 Dec 2009 03:00 PM PST

It's one of those days. Reading the financial press is a delight; the big challenge is deciding what to laugh at first.
Take your choice. There's Martin Wolf, writing in The Financial Times, with a claim that is so staggeringly conceited, the gods must have marked him for punishment before the ink was dry. He thinks economists should be thanked, not merely for saving the world economy…but for saving civilization itself. We will come back to this later…after we've had a chance to catch … [visit site to read more]

Video: Wall Street Brokers Celebrate 2009 Traditionally, Through Song!

Posted: 31 Dec 2009 07:34 PM PST

As far back as 1934, it is a tradition on the floor of the New York Stock Exchange to sing, “Wait till the sun shines, Nellie” on December 31st. Celebrating the year that has passed while looking forward to brighter days ahead. Enjoy! … [visit site to read more]

Video: Delta Airlines: Northwest Will No Longer Remain A Seperate Entity

Posted: 31 Dec 2009 06:58 PM PST

Delta airlines announced this week that recently acquired Northwest Airlines will no longer remain a seperate entity and will become an addition to the Delta Airline name. … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: GS, TWC

Posted: 31 Dec 2009 06:49 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]

Video: Crude Prices Reach $80 As 2009 Comes To An End

Posted: 31 Dec 2009 06:41 PM PST

Front month crude prices were able to trade as high as $80 a barrel this session to close out 2009, marking the best year in gains for oil prices since 1999. … [visit site to read more]

Camaraderie Of The Damned

Posted: 31 Dec 2009 01:00 PM PST

There is not a lot of action in the markets. Most of the investment world is home for the holidays… At least, the investors are home. The pros – the bankers, for example – are celebrating the holidays in fancy resorts. They can afford it. It was a great year for the financial sector. After nearly going broke because of their reckless speculations, the bankers took money from the feds and went on to speculate some more…making huge profits. Bonuses for many of them were better than … [visit site to read more]

The 4 Best Real Estate Investments For 2010, Part II

Posted: 31 Dec 2009 07:02 AM PST

As I mentioned in yesterday's edition of the Daily Reckoning, next year is going to be the most exciting one real estate investors have seen in a decade. I've got my eye on four spots, in particular – diverse opportunities around the globe, each of which represents an excellent value play.
Yesterday, I explained in detail why I believe the Northeast coast of Brazil offers tremendous opportunity. This spectacular region boasts some of the world's most glorious beaches. And now that … [visit site to read more]

2009’s Standout ETF Sectors

Posted: 31 Dec 2009 12:01 PM PST

Another year is just about gone. It’s been a year marked mostly by recovery, and exchange traded funds (ETFs) have made a good turnaround from the events of 2008. In a year of growth, which sectors and ETFs were among the standouts?

This year’s markets were topped by emerging markets with the MSCI-EAFE up around 80.2% ending Nov. 30, writes Stacy Schultz for Financial Planning. John Gabriel, ETF analyst at Morningstar, attributes the high growth in emerging economies to a growing middle … [visit site to read more]

Only The Strongest Retailers Will Survive In 2010 As U.S. Consumers Continue To Battle Back

Posted: 31 Dec 2009 11:01 AM PST

The early returns on the 2009 holiday shopping season show a minor gain over last year’s abysmal retail sales, and next year will affirm that retailers are successfully adapting to a consumer environment that’s very different from years past.

However, 2010 will be difficult for retailers as they contend with high unemployment, tight credit, and aggressive competition.

Retail sales gained 3.6% year-on-year from Nov. 1 through Dec. 24, SpendingPulse, a unit of MasterCard Advisors … [visit site to read more]

Steel Output Rises Again

Posted: 31 Dec 2009 10:41 AM PST

According to the data released by World Steel Association (Worldsteel), global crude steel production for the 66 countries reporting to Worldsteel improved 24.2% year over year to 107.5 million tons in November 2009. Crude steel production has been showing a positive growth rate since September 2008. Total crude steel production in the 66 reporting countries for the first 11 months of 2009 was 1,090 million tons, a decrease of 10.8% from the same period of 2008.
Steel production had peaked in … [visit site to read more]

Video: Risk Appetite Rises As 2009 Comes To An End

Posted: 31 Dec 2009 03:27 PM PST

Risk appetite rose this session following an unexpected improvement in jobless claims figures. … [visit site to read more]

Picture Of The Day: The Fed’s Ballooning Balance Sheet

Posted: 31 Dec 2009 10:21 AM PST

The following from Ian Mathias, co-author of the 5 Min. Forecast: “One good reason to guard your finances in 2010: The Federal Reserve’s balance sheet has quietly ballooned back to near-record highs. The Fed announced yesterday that its balance sheet expanded to $2.22 trillion last week, its grossest level in nearly a year and just a hair from an all time high. Hmmm … if Mr. Bernanke assures us the recession is 'very likely over,’ then why is the Fed balance sheet in crisis mode? What … [visit site to read more]

Consumer Payments Trend Down

Posted: 31 Dec 2009 05:15 AM PST

As per a recent credit trend report published by Equifax Inc. (EFX), consumer delinquency rates for bankcards, first mortgages and home equity lines of credit increased on a month-to-month basis in November 2009.
Home mortgage rates touched another record of 7.91% in November, up from 7.76% recorded in the month of October and 7.65% in the prior month. This has increased substantially over 5.83% recorded in November 2008 and 3.93% in November 2007.
This apart, home equity lines of credit … [visit site to read more]

Geely Optimistic About Volvo

Posted: 31 Dec 2009 09:43 AM PST

China-based Zhejiang Geely Holding Group is optimistic about its acquisition of Swedish brand Volvo from Ford Motor Co. (F). Geely is close to acquiring Volvo in early 2010, with strong support from the Chinese Government.
Geely is eager to tap China’s high-growth auto market by acquiring modern, innovative technologies from the Swedish brand to upgrade its car lineup. The automaker expects robust growth for China’s auto industry in 2010. In this situation, upgrading the product lineup would … [visit site to read more]

Video: 2009 Was “Quite Remarkable”

Posted: 31 Dec 2009 02:35 PM PST

Floor trader David Henderson gives his opinion on the markets in 2009 and what to look for in 2010. … [visit site to read more]

School Specialty Upped To Neutral

Posted: 31 Dec 2009 04:20 AM PST

We recently upgraded our recommendation on School Specialty Inc. (SCHS) to Neutral from Underperform, buoyed by its initiative to reduce overheads and boost profitability.
 
Operational consolidations, headcount reductions, improved supply chain management and other stringent cost-control measures helped lower SG&A expenses during the second quarter of fiscal 2010. The company recorded a 13.6% decline in SG&A expenses year over year during the quarter. Furthermore, management … [visit site to read more]

Morgan Indicted For CDO Fraud

Posted: 31 Dec 2009 08:57 AM PST

On Tuesday, Morgan Stanley (MS) was reportedly accused by the Employees' Retirement System of the Virgin Islands of swindling its investors by promoting $1.2 billion of risky low-quality mortgage-related notes in 2007 that it had already perceived to be non-profitable. The lawsuit filed on Dec 24, 2009 in Manhattan Federal Court stated that Morgan Stanley has deliberately raised the rating of the mortgage notes to fulfill the collateralized-debt obligation (CDO) known as … [visit site to read more]

FDA Clears ZOLL Product

Posted: 31 Dec 2009 03:47 AM PST

Recently, ZOLL Medical Corporation (ZOLL) announced that the U.S. Food and Drug Administration (FDA) approved the marketing of its E series defibrillators equipped with carbon monoxide (CO) monitoring. The new model of the ZOLL E series monitor/defibrillator is available for shipment with immediate effect.
 
The presence of CO monitoring in the new model is an impressive feature. It will protect firefighters, civilians and treat patients poisoned by CO immediately. If someone is … [visit site to read more]

Vodafone Buys Turkish Operator

Posted: 31 Dec 2009 03:26 AM PST

Vodafone Group Plc (VOD), the largest wireless carrier in the world by revenue, is reportedly buying the entire stake in the Turkish fixed-line voice and Internet service provider Borusan Telekom. However, the UK-based telecom titan has not provided financial details of the deal. The acquisition is subject to the approval of the Competition Board and the Capital Markets Board ("SPK”) of Turkey.     
 
The enterprise focused Borusan Telekom is a subsidiary of … [visit site to read more]

Lockheed F-16s Fly Egypt

Posted: 31 Dec 2009 08:04 AM PST

Lockheed Martin Corporation (LMT) will sell 24 F-16 fighter aircraft to Egypt for more than $3.2 billion. The U.S. and Egyptian governments have signed the agreement, which would upgrade Egypt’s existing F-16 fleet.
 
Lockheed Martin's F-16s are powered by the General Electric Company's (GE) F110-GE-129 engine. The F-16 jet fighter aircraft was originally developed by General Dynamics Corporation (GD) in 1976. However, in 1993, General Dynamics sold its aircraft manufacturing … [visit site to read more]

Forex Trading: EURGBP Tests 200 Day MA Support As Selling Pressure Continues Today

Posted: 31 Dec 2009 08:02 AM PST

The EURGBP is down testing the 200 day MA 0.8855 level.  The pair has continued its assault to the downside today after yesterdays sharp move lower.  Of course action is winding down for the year so I do expect action to quiet down, but come Monday, the moving average will come back into focus as traders all return and look for the new opportunities in the New … [visit site to read more]

Pipeline Setback For JNJ

Posted: 31 Dec 2009 02:43 AM PST

Johnson and Johnson (JNJ) has received yet another setback related to its pipeline candidate ceftobiprole, a broad-spectrum antibiotic − aiming the methicillin-resistant Staphylococcus aureus (MRSA) − for the treatment of complicated skin infections and nosocomial pneumonia. Johnson and Johnson had licensed the drug from Swiss drug company Basilea Pharmaceuticals in 2005.
Johnson and Johnson received a complete response letter (CRL) from the US Food and Drug Administration (FDA), delaying … [visit site to read more]

Initial Claims Still Falling

Posted: 31 Dec 2009 02:34 AM PST

Initial claims for unemployment insurance continued their descent this week, falling by 22,000 to 432,000. This was well below consensus expectations of 460,000 new claims.

The 4-week moving average also fell, but not as sharply, down 5,500 to 460,250. Given the inherent week-to-week instability of the series, the 4-week moving average is a better measure to watch, and the history of it is shown in the graph below (from http://www.calculatedriskblog.com/).

On the continuing claims front, the … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: TWC

Posted: 31 Dec 2009 12:30 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]

Forex Trading: USDJPY Is Testing Target Resistance At The 93.12 Level

Posted: 31 Dec 2009 02:25 AM PST

As per the earlier post (click here), the USDJPY has moved and is approaching the 50% retracement level of the move down from the April high of 101.43 and the November low of 84.80.  That level comes in at the 93.12 level.  Look for profit taking sellers at the level. 
Support now comes in at … [visit site to read more]

Video: Asian Markets Close The Year On The Upside

Posted: 31 Dec 2009 12:22 PM PST

The major Asian/Pacific markets were on the upside this session following a rise in domestic shares as 2009 comes to an end. … [visit site to read more]

Fox Shows Unlikely On TWC

Posted: 31 Dec 2009 02:20 AM PST

As the contract expires at midnight Dec 31, News Corp. (NWSA) could discontinue broadcasting hit programs from the Fox Broadcast Network on Time Warner Cable Inc. (TWC), with ongoing negotiations unable to find a mutually agreeable solution. 

The dispute has stemmed from the disagreement on subscriber fees on Fox's free-to-air broadcast network. While Fox has demanded $1 per subscriber for the retransmission rights, Time Warner Cable has only agreed to pay in the range of 25 cents … [visit site to read more]

Compugen Raises $20M In Share Sale

Posted: 31 Dec 2009 02:00 AM PST

Compugen Ltd. (CGEN) announced on Wednesday that it has raised $20 million through a share sale. The Israel-based company sold approximately 4.1 million ordinary shares at an average price of $4.91 each in the open market during the period November 13, 2009 to December 29, 2009. 

Compugen is engaged in drug and diagnostic product candidate discovery and their commercialization through early-stage licensing and co-development agreements. The company's business is focused on developing … [visit site to read more]

DENTSPLY Initiated As Neutral

Posted: 31 Dec 2009 01:40 AM PST

We recently initiated coverage on DENTSPLY International Inc. (XRAY) with a Neutral recommendation. We rate the stock Neutral with a target price of $37 based on a P/E of 18.3x our 2010 EPS estimate of $2.02. 

DENTSPLY reported third quarter fiscal 2009 earnings per share of 44 cents, in line with the Zacks Consensus Estimate but slightly lower than the year-ago figure of 46 cents. The company's sales were roughly flat year over year at $531.0 million. Excluding the precious metal … [visit site to read more]

Forex Trading: GBPUSD Breaks Through Support At 1.6158 But Finds Support At The 200 Bar MA Level

Posted: 31 Dec 2009 01:40 AM PST

The GBPUSD fell through the support at the 1.6158 level and the 100 bar MA on the 5 minute chart at the 1.6162 and selling intensified (see prior post).  The market sold off quickly but found support against the 200 bar moving average.  For those who listen and read our commentary, a break of the 100 bar MA chnages the bias from bullish to bearish and next targets the 200 bar MA.  If the 200 bar MA is broken, it confirms the directional move and should lead to lower … [visit site to read more]

Forex Trading: EURUSD Falls Through The 100 And 200 Hour Moving Averages

Posted: 31 Dec 2009 01:24 AM PST

The EURUSD has moved through the 100 and 200 hour MA in the last hour of trading. There was a report circulating that the IMF is in discussion with Greece in regard to its debt situation. This is leading to the sharp selling in the pair as news and illiquid markets make for nervous markets for the Eurozone.
There should now be resistance against the 200 hour MA at 1.4341. Look for sellers against this level. The next support level comes in at 1.4300/06 level.  A break next targets the low … [visit site to read more]

Canada Approves Ciena’s Nortel Bid

Posted: 31 Dec 2009 01:20 AM PST

The telecommunications network specialist Ciena Corporation (CIEN) announced that it has received regulatory approval under the Investment Canada Act for the proposed acquisition of Nortel Network Corp.’s optical networking and carrier ethernet business for a total consideration of $769 million. Ciena said that the regulatory approval validates that the deal is beneficial for Canada. 

Ciena will pay $530 million in cash and $239 million in convertible notes for Nortel's Metro optical … [visit site to read more]

Fannie & Freddie Out Of Pay Limit?

Posted: 31 Dec 2009 06:00 AM PST

U.S. pay czar Kenneth Feinberg said on Wednesday that Mortgage finance giants Fannie Mae (FNM) and Freddie Mac (FRE) are being discriminated, with respect to pay restrictions, from other companies receiving significant financial support from the government as they countenance a unique set of problems. 

The pay czar, who decides compensation-packages for the highest-paid employees at all the firms that received bailout money and have not repaid yet, considers the situation of Fannie … [visit site to read more]

Stock Market News Briefs: Cooper Tire & Rubber Company, Dana Holding Corporation, Deutsche Bank AG, J P Morgan Chase & Co, Kohl’s Corporation, Lear Corporation, Nordstrom, Inc., Piper Jaffray Companies, Target Corporation, Tenneco Automotive, Inc., Time Warner Cable Inc, TRW Automotive Holdings Corporation, Gencor Industries Inc., Intel Corporation

Posted: 31 Dec 2009 12:59 AM PST

 A spat between the Fox division of News Corp. (NWSA) and Time Warner Cable (TWC) threatens to cause a midnight blackout of Fox programming, as Fox seeks $1/month/subscriber and Time Warner is willing to pay 20 cents.

 Piper Jaffray (PJC) maintains an “overweight” rating on Target (TGT) shares, with a $57 price target.

 Gencor (GENC) reported a fourth quarter loss of 12 cents versus one penny a year ago on revenue of $10.4 million, down from $21.5 million last … [visit site to read more]

Forex Trading: GBPUSD Moves To Test Support At 1.6158 Level

Posted: 31 Dec 2009 05:39 AM PST

The downside target of 1.6158 is approaching (see prior post).  This level corresponds with the 100 bar MA on the 5 minute chart. It also is support off the daily chart going back to the August/September time period.  Look for some profit taking buying against the level.  A break would target 1.6114 level where the 200 bar MA on the same 5 minute chart is found.
The market in general is trading in a technical fashion today with key levels tending to hold resistance and … [visit site to read more]

Forex Trading: USDCAD In Between The “goal Posts” As Defined Byt He 100 And 200 Hour Moving Averages

Posted: 31 Dec 2009 04:59 AM PST

The USDCAD is sitting in between the 100 and 200 hour MAs.  We define this condition at FXDD as being in between the "goal posts" .    When this condition exists the market is thought to be in a period of transition as it decides if the next move is higher or lower.  Watch the price action.  Traders can buy dips against the 100 hour with selling below. Alternatively, they can sell against the higher 200 hour MA with buying on moves above.  Look for … [visit site to read more]

Forex Trading: USDJPY Surges Higher Off The 92.32 Support But Runs Into Double Top Resistance Perhaps?

Posted: 30 Dec 2009 11:38 PM PST

The USDJPY surged higher off the better Employment data this morning. Earlier the price held our support level at the 92.32 level where the 100 bar MA was also located.   The price is up testing the high from yesterday at the 92.76 level and this high provides a low risk trading opportunity for range trading traders.  Look for sellers with stops above.
A break targets the 93.12 level (50% of the move down from the April high to the low). Another longer term upside target coming … [visit site to read more]

Is Crude Stealing Gold’s Thunder?

Posted: 31 Dec 2009 01:52 AM PST

Fundamentals
Gold futures continue to meander in sideways trading due to the choppiness of the US Dollar and the lack of fresh buying interest. The unexpected Dollar rally had caught precious metals traders off-guard and has caused some traders to rethink their strategy. Over the long-term, Gold fundamentals remain bullish, and the large 2, 5 and 7-year note auctions think week suggest that the US government is unlikely to halt its spending spree anytime soon. In the near-term, however, it … [visit site to read more]

Stock Buy: Avon Products Inc.

Posted: 30 Dec 2009 04:00 PM PST

Avon Products Inc. (AVP) continues to see a higher Zacks Consensus Estimates. For the current full year, the earnings forecast stands at $1.72 per share, up from $1.66 over the past 90 days. For 2010, the projection of $2.20 rose from the 3 months-ago level of $2.10.
Company Description
Avon Products is beauty company with over $10 billion in annual revenue. As the world’s largest direct seller, Avon markets to women in more than 100 countries through 5.8 million independent Avon Sales … [visit site to read more]
posted by

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)