Jan 23, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

Is The Selling Over For Gold And The Stock Market?

Posted: 23 Jan 2010 05:45 AM PST

It’s been a crazy week for stock and futures traders as the market moved up and down like a yo-yo, finally closing down sharply on the week.

Earlier this week I posted a report showing the Volatility Index (^VIX) and how it was then trading at an extreme low level which triggered the sharp market corrections. Since that post the VIX has now risen over 30% as traders start selling positions to lock in gains.

Take a quick looks at the Volatility Index chart:

Chart of S&P500 … [visit site to read more]


Gold Continues In C Wave Down

Posted: 23 Jan 2010 02:45 AM PST

1.  I predicted on December 4th for my partners  that Gold could pullback to the 1040 to 1070 US ranges, with a mimimum of 1070 likely.  So far the Gold pivot lows have been to 1074, bounced up, re-traced to 1090, ran to 1145, re-traced to 1090 again.  I got the partners in my service us out of several gold positions issuing take profit alerts on the B wave bounce to 1135 recently, and we have held a few.  We sold our ICI.TO, JIN.TO, and AAU at much higher levels and remain out of … [visit site to read more]

Congress Sacks Samoan Economy

Posted: 23 Jan 2010 01:01 AM PST

Like many football fans around the country, I recently tuned into a heavily promoted 60 Minutes segment on the uncanny ability of tiny American Samoa to produce a steady stream of NFL players. Although it was certainly interesting to learn how Pacific island warrior culture translated seamlessly into the disciplines of American football, and how the island’s players adapted to the hard-scrabble terrain and poorly funded athletic fields, the most interesting aspect of the piece concerned … [visit site to read more]

Glass-Steagall 3.0?

Posted: 23 Jan 2010 12:43 AM PST

The stock market has been spooked by Obama's Volcker plan to limit banking activities. Moreover, there have been trial balloons floated regarding the reinstatement of the Glass-Steagall Act, legislation that separated commercial and investment banking activities.

Time for Glass-Steagall 3.0?
Is that enough?

Any legislation overseeing financial activities should have the following purposes:

Eliminate or reduce the number of "too big to fail" (TBTF) institutions.
If there were TBTF … [visit site to read more]

Biggest Three-Day Loss For Stocks Since March 2009

Posted: 22 Jan 2010 11:26 PM PST

DailyMarkets.com (New York) - Worries dominated the US stock markets this week. Stocks fell the most in the past three days since the March 2009 bottom.  On Friday, the Dow fell 2.09% to 10,172.98, the broader S&P 500 index declined 2.21% to 1,091.76, while the Nasdaq shed 2.67% to 2,205.29. For the week, the Dow tumbled about 4.1% and is now hovering at levels last seen in early November 2009. The S&P 500 slid 5.1% over the past three days.

Investors were spooked by earnings … [visit site to read more]

S&P 500: We Have Just Witnessed The Worst Three-Day Decline Since The March 2009 Bottom

Posted: 22 Jan 2010 11:01 PM PST

The S&P 500 has finally decisively broken down through the support formed by the rising trend line that marks the bottom of the ascending wedge formation. This was the technical expectation, but the market sure did fight it. The break has also carried the price index through the 20- and 50-EMAs. I have drawn a dashed line from the November low, parallel with the upper boundary of the wedge to suggest a possible bottom of a rising trend channel. This line is not drawn by strict technical … [visit site to read more]

Comparing S&P 500 Percentage Drops In 2009 To Now

Posted: 22 Jan 2010 09:01 PM PST

With the market in a pullback retracement mode currently, I thought it would be a good idea to look back at the S&P 500 rally off the March 2009 lows and get a sense of what to expect in terms of the average pullback.

Let’s take a look.

Using TradeStation, I’m showing the percentage decline, time span, and point decline feature of the basic trendline tool.

I started with swing highs and drew to swing lows to assess the values of the decline to get an average of what to … [visit site to read more]

Video: The Week Ahead

Posted: 22 Jan 2010 09:00 PM PST

The stories, data, and stocks that may have the greatest impact during the next trading session. … [visit site to read more]

Flash Update: Stock Market Turn In The Making!

Posted: 22 Jan 2010 07:01 PM PST

From its intraday high to Friday morning’s low, the Dow has lost over 430 points just in the last three trading days … breaking through critical support … raising the specter of AT LEAST a big correction, and … foreshadowing a possible return of the debt crisis this year.

Ergo, this is a flash update to help you start thinking about - and preparing for - a market turn in the making, which could be a MAJOR one.

I’ll have a lot more to say about the causes and consequences in my … [visit site to read more]

The Greater Threat

Posted: 22 Jan 2010 06:02 PM PST

There’s a new report out from economists Carmen M. Reinhart and Kenneth S. Rogoff, authors of This Time is Different: Eight Centuries of Financial Folly, entitled “Growth in a Time of Debt.”
Although it is chock full of interesting data about the relationship between government borrowing and economic growth, one illustration seemed particularly relevant to the ongoing debate about which ‘flation poses the greater threat:

So, where are we now?

Here is the full summary:

We study economic … [visit site to read more]

Back On With Larry K.

Posted: 22 Jan 2010 05:31 PM PST

It’s been a while, but CNBC’s Larry Kudlow invited me to join him as a guest on tonight’s edition of “The Kudlow Report” to discuss the economy and the markets. For those who are interested, here is the … [visit site to read more]

The Big Bad Banks: The Beatings Will Continue Until Morale Improves

Posted: 22 Jan 2010 04:59 PM PST

First, we see our government low-balling the expected returns for the Tarp investments in banks so that an additional tax on banks can be justified-including banks that never receive the investments and excluding nonbanks that did. Now proprietary trading is verboten even though there is no evidence that it had anything to do with the crisis. The same goes for hedge fund and private equity. Have we totally forgotten about the making and securitization of subprime mortgage loans? I would … [visit site to read more]

China Leading The Global Recovery And Still Looking Ahead

Posted: 22 Jan 2010 04:01 PM PST

Many investors are focusing on China’s recent moves to curtail lending and cool its economic growth, but in doing so they’re forgetting that the Chinese economy has withstood the financial crisis better than any other economy in the world. And it remains investors’ best bet.

“When the financial crisis forced the neoliberal economic system into a dead end, the shortcomings of the capitalist system were exposed for all to see,” read a Jan. 5 front page editorial in the People’s Daily, the … [visit site to read more]

Genzyme’s Outlook Stabilizing

Posted: 22 Jan 2010 03:33 PM PST

Genzyme Corp. (GENZ) reports fourth-quarter results on February 17, with the current Zacks Consensus Estimate at 20 cents per share. Recent revisions to the quarterly estimate have been in both directions, with a very modest upward (positive) bias. Of the 12 estimates for the fourth quarter, three have been raised while two have been lowered in the last 30 days. On balance, the estimate is up from 18 cents per share in the last 30 days.
If quarterly results come inline with expectations, as … [visit site to read more]

Stock Picks For 25 January

Posted: 22 Jan 2010 03:32 PM PST

( click to enlarge )
Rambus (RMBS) is probably the best stock to own right now. The stock was one of the few stocks that closed positive on Friday as it ended the day up $.72. The stock gained 3 percent finishing the day at $24.74 after the U.S. International Trader Commission Judge Theodore Essex ruled that Nvidia (NVDA) is violating three patents owned by Rambus. This particular decision could result in a ban on imports of certain Nvidia chips and products that use them, Bloomberg … [visit site to read more]

An Answer To The Unemployment Challenge?

Posted: 22 Jan 2010 03:01 PM PST

I was pondering the other day about the economy, unemployment, recession-recovery, and it got me thinking about a topic I think is very important. This post takes a very different track from the usual analysis - in fact I will issue you a challenge.

In this time of high unemployment I think it is important to focus on the foundations of the economy, i.e. businesses. It is in these times that it is more important than ever for people to embrace the entrepreneurial spirit.

Especially … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: AXP, GE, MCD

Posted: 22 Jan 2010 02:21 PM PST

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

Daily ETF Roundup: XLF Sinks, VXX Surges 9%

Posted: 22 Jan 2010 02:12 PM PST

Chaos gripped Wall Street on Friday, as the likelihood that Ben Bernanke won't be confirmed to a second term as Fed chairman surged and uncertainty swirled around the financial sector in the wake of Obama's proposed regulations to curb risk. The technology sector also sunk following Google's earnings report after the bell on Thursday. Despite the fact that the search engine giant posted a big jump in profits and beat analyst expectations, shares sunk as investors were apparently hoping … [visit site to read more]

Telefonica Wraps Jajah Acquisition

Posted: 22 Jan 2010 02:02 PM PST

Spanish Telecom giant Telefonica's (TEF) subsidiary O2 has officially wrapped up the acquisition of VoIP (Internet phone) services and application specialist Jajah Inc. following the approval of the Spanish Competition Authority ("CNC”). Telefonica will keep the Jajah brand.
Telefonica announced the acquisition of Silicon Valley based Jajah in December 2009 for €145 million (US$207 million) in an all-cash transaction. The deal is similar to eBay's (EBAY) $3.9 billion acquisition of … [visit site to read more]

Unemployed In An Abnormal Business Cycle

Posted: 22 Jan 2010 02:00 PM PST

Fear. You can almost smell it. So far, there's just a whiff of it…a faint odor…a little trace in the air…like the smell in a subway car after a bum has left.
Yesterday, the Dow fell 213 points. Oil dropped to $76. Gold lost $9.
What caused it? What sets off a crash? Yesterday was hardly a crash. But our Crash Alert flag still flies. Because this is a market in danger. It is a market looking for a reason to crash.
You never know for sure when or why markets crash. At a certain point, … [visit site to read more]

Harley-Davidson Slips Badly

Posted: 22 Jan 2010 01:44 PM PST

Harley-Davidson (HOG) has reported a loss of $147.2 million or 63 cents per share in the fourth quarter of 2009, compared to an income of $91.9 million or 40 cents per share in the comparable period a year ago.
Compared to the Zacks Consensus Estimate of a loss of 34 cents per share, this loss is pronounced. According to Harley-Davidson, a difficult economy and the planned actions that resulted in huge restructuring charges ($224 million) are the key factors behind the loss.
Revenue plummeted … [visit site to read more]

Good News From Genomic Health

Posted: 22 Jan 2010 01:25 PM PST

Recently, Genomic Health, Inc. (GHDX) announced the global commercial availability of its Oncotype DX colon cancer test. The 12-gene diagnostic test aims to predict individual recurrence risk in stage II colon cancer patients after surgery. The Genomic Health test is the first multigene expression test developed for assessing the risk of recurrence in patients suffering from stage II colon cancer.
Stage II colon cancer (also known as Dukes’ Stage B) affects approximately 30,000 -40,000 people … [visit site to read more]

NRP Issues 2010 Guidance

Posted: 22 Jan 2010 01:08 PM PST

Master limited partnership Natural Resource Partners L.P. (NRP) yesterday provided its production and earnings guidance for 2010.
The partnership projects coal production in 2010 to be essentially flat, ranging from 41 to 50 million tons. The partnership guided total revenue in 2010 to be in the $235-$285 million range, with coal royalty revenue of $175-$205 million. This represents a 10% increase in total revenue and a 2% rise in coal royalty revenue, over the respective projected revenues … [visit site to read more]

Economists Serving Their Political Masters

Posted: 22 Jan 2010 01:00 PM PST

On January 14, 2010, an academic economist took a rare stance. Tenured professors rarely lift the veil from numbers that governments invent. In "Don't Like the Numbers? Change 'Em," Michael J. Boskin, Ph.D., formerly, an economics professor at Harvard and Yale; formerly, chairman of the Counsel of Economic Advisers in the George H.W. Bush administration; currently, T. M. Friedman Professor of Economics at Stanford University; research associate at the National Bureau of Economic … [visit site to read more]

Washington Post Ups Dividend

Posted: 22 Jan 2010 12:49 PM PST

The Washington Post Company (WPO) recently boosted shareholders' dividend by 4.7%. The Board of Directors has approved an increase in the annual dividend to $9.00 (or $2.25 quarterly) from $8.60 per share (or $2.15 quarterly).
The Washington Post said that the increased quarterly dividend of $2.25 per share will be paid on Feb 5, 2010, to shareholders of record as of Jan 27, 2010.
The Washington Post, which owns Kaplan Education, Television Broadcasting, Cable Television, Newspaper and … [visit site to read more]

SIRIUS XM Boosts Subscriber Base

Posted: 22 Jan 2010 12:30 PM PST

Satellite radio service provider SIRIUS XM Radio Inc. (SIRI) announced that it generated significant subscriber growth during the fourth quarter of 2009. The company added 257,028 net subscribers during that quarter, which brings fiscal 2009 to a total subscriber base of 18,772,758. Net subscriber addition is an improvement of more than 151% sequentially and is the highest since the third quarter of 2008. SIRIUS XM's self-pay subscriber base increased by 247,182 in the fourth quarter … [visit site to read more]

People’s United As Expected

Posted: 22 Jan 2010 12:28 PM PST

People's United Financial, Inc.'s (PBCT) fourth quarter operating earnings per share of 8 cents were flat with the Zacks Consensus Estimate and third quarter earnings. However, earnings declined from 10 cents in the prior-year quarter due to continued market pressure, which further drove non-interest expenses higher and interest income lower for the quarter.
Results included $4.5 million in system conversion and merger-related expenses. After taxes, these expenses reduced the net income … [visit site to read more]

Arrow Expected To Outperform

Posted: 22 Jan 2010 12:16 PM PST

We recently upgraded our rating on Arrow Electronics, Inc. (ARW) to OUTPERFORM from NEUTRAL.
New York-based Arrow Electronics is one of the world's largest distributors of electronic components and computing products. The company sources products from about 800 suppliers and distributes them to over 130,000 customers (original equipment manufacturers, contract manufactures and commercial customers).
Last month, Arrow upgraded its outlook for the fourth quarter of 2009. The company now … [visit site to read more]

HBAN Misses, Provisions Rise

Posted: 22 Jan 2010 12:01 PM PST

Huntington Bancshares Incorporated (HBAN) reported a fourth quarter loss of 56 cents per share. Excluding the impact of significant items, the company incurred a loss of 65 cents in the quarter. Results were well below the Zacks Consensus Estimate of a loss of 28 cents. However, the company narrowed its loss compared to the prior-year quarter. The company had reported a loss of $1.20 per share a year earlier.
The miss was primarily driven by loan loss provisions, which were almost doubled … [visit site to read more]

The New Banking “Reform”

Posted: 22 Jan 2010 12:00 PM PST

"Never have so many stocks fallen so far, in such a short time, over an event of such little consequence."
After we wrote that sentence, we felt like it deserved Churchill-esque quotes, but found no one but ourselves to attribute it to.
We refer to the 2% tumble the major US indexes took yesterday in response to President Obama's bank reform plan.
We read the mainstream coverage of this proposal so you wouldn't have to. Here's the gist:

Banks that take deposits from folks like you … [visit site to read more]

Video: Market Movers: AMD, COF, HOG, JPM

Posted: 22 Jan 2010 11:50 AM PST

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

ACS Beats On Strong New Signings

Posted: 22 Jan 2010 11:45 AM PST

Operating Performance
Affiliated Computer Services, Inc. (ACS) reported second-quarter 2010 pro forma earnings of $1.07 per share, an increase of 25.9% from 85 cents reported in the year-ago period. Earnings for the quarter beat the Zacks Consensus Estimate of 99 cents a share by 8 cents.
Adjusted non-GAAP operating income was $182.8 million or 11.0% of total revenue in the quarter, compared to $172.6 million or 10.7% of total revenue in the year-ago period. The quarter benefited from new … [visit site to read more]

Air Products’ Profits Improve

Posted: 22 Jan 2010 11:33 AM PST

Atmospheric and industrial gas producer Air Products and Chemicals (APD) announced operating results for the first quarter of fiscal 2010. Earnings for the quarter were $1.16 per share, slightly higher than both the Zacks Consensus Estimate and the market estimate of $1.14, helped by improving volumes and cost-cutting efforts. Earnings were up 72% year over year.
First quarter revenues of $2,174 million marks a decline of one percent year over year, as lower energy and raw material cost … [visit site to read more]

Exelon Results Top Estimates

Posted: 22 Jan 2010 11:18 AM PST

Exelon Corporation (EXC) reported fourth-quarter and full-year 2009 earnings per share (EPS) of 92 cents and $4.12, respectively, above the Zacks Consensus Estimate of 85 cents and $4.04. However, it fell short of the year-ago figure of $1.07 for the fourth quarter of 2008 and $4.20 for full-year 2008.
The company's full-year earnings are also above the high-end of its guidance range of $4.00-$4.10 per share. On a year-over-year basis, the fall in EPS was primarily due to lower energy gross … [visit site to read more]
posted by

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)