Jan 19, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

Platinum And Palladium ETFs: Will They Have A Better Year Than Gold?

Posted: 19 Jan 2010 03:45 PM PST

This year, platinum and palladium-focused exchange traded funds (ETFs) are expected to get a boost from both investment and industrial demand improvements. That’s great for those metals, but what does it mean for gold?

Analysts expect both platinum and palladium to have a stellar year in 2010 because of the increase in industrial production. The latest launch of the related ETFs will also put pressure on demand for the metals. Is it possible for them to surpass gold in the performance … [visit site to read more]


Fastenal Barely Misses

Posted: 19 Jan 2010 02:52 PM PST

Fastenal Co. (FAST) of Winona, Minnesota has revealed earnings of $45 million or 30 cents per share in the fourth quarter ended December 31, 2009. This was a tad lower than the Zacks Consensus Estimate of 31 cents per share.
However, net income declined 29% from $63 million or 42 cents per share in the fourth quarter of the prior year. Net sales in the quarter fell 12.5% to $476,750.
For the year ended December 31, 2009, earnings were $184 million or $1.24 per share. This also came close to … [visit site to read more]

Pfizer Strengthens Oncology Arm

Posted: 19 Jan 2010 02:36 PM PST

Recently, Pfizer (PFE) entered into a co-development agreement with Switzerland-based Debiopharm Group regarding pipeline candidate tremelimumab for the treatment of patients with melanoma. A biomarker will be used to identify those patients who are more likely to respond to the treatment. While Debiopharm will be responsible for conducting the phase III trial of tremelimumab, Pfizer will concentrate on the commercialization of the compound. Financial terms of the agreement have not been … [visit site to read more]

Which India ETF Is Best?

Posted: 19 Jan 2010 02:33 PM PST

As developed economies struggled to regain their footing in the wake of the recent economic downturn, many investors have been drawn to the potential for meaningful growth offered by emerging markets. While recovery efforts in the U.S., western Europe, and Japan have been slow to gain traction and deliver meaningful economic expansion, developing markets have surged ahead, showing no ill effects of the recession and even sparking concerns of overheating. 
Many investors looking to achieve … [visit site to read more]

Salesforce Unveils Spring 10

Posted: 19 Jan 2010 02:22 PM PST

Cloud computing major Salesforce.com (CRM) is grabbing headlines on regular basis. The company recently introduced Spring 10. This is the company's 31st-generation release with advanced features designed for its Sales Cloud 2 platform and Force.com site. This advanced cloud computing service is expected to introduce an entirely new user interface for Salesforce.com.
The new user interface of Spring 10 will come with updated service availability and enhanced features, making it even more … [visit site to read more]

IBM Beats, Down In After-Market

Posted: 19 Jan 2010 02:15 PM PST

IBM Corp. (IBM) posted a positive earnings report after the bell Tuesday. For the company’s 4th quarter of 2009, its $3.59 per share beat the Zacks Consensus Estimate of $3.47 by 12 cents, and was up 10% year over year.
Quarterly revenue of $27.2 billion was essentially flat from the year-earlier level (up 0.8%), but down 5% if we exclude the impact of exchange rates. Quarterly gross margin of 48.3% was up from 47.9% from the year-earlier period.
For the full-year 2009, earnings of $10.01 per … [visit site to read more]

Rating Action On XL Capital

Posted: 19 Jan 2010 02:08 PM PST

Rating agency A.M. Best affirmed the rating of XL Capital's (XL) subsidiaries with a stable outlook. It includes the affirmation of a financial strength rating (FSR) of "A-" and an issuer credit rating (ICR) of "a-” for XL Life Ltd., FSR of "A-" and ICR of "a-” of XL Life Insurance and Annuity Company as well as the ICR of "a-” and the debt ratings for XLLIAC Global Funding.
The rating agency acknowledges XL Life's adequate capitalization and strong support of the parent. It … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: C, KFT, CFL, TYC

Posted: 19 Jan 2010 02:04 PM PST

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

Venezuela Devaluation Hurts GT

Posted: 19 Jan 2010 01:52 PM PST

Goodyear Tire's (GT) operation in Venezuela, which contributes a significant portion of the company's Latin American Tire sales and operating income, has been significantly affected by the Venezuelan government's decision to introduce a two-tiered exchange rate that devalues its currency, bolivar fuerte (Bs. F).
Venezuela President Hugo Chavez has revealed that the bolivar fuerte would be devalued from Bs. F 2.15 per dollar to Bs. F 4.30 per dollar in case of imports of nonessential … [visit site to read more]

Color It Red

Posted: 19 Jan 2010 01:49 PM PST

In “Chart of the Day: State Buget Gaps 2010,” Credit Writedowns points us to a disturbing graphic in a recent report from the Congressional Budget Office, entitled “Policies for Increasing Economic Growth and Employment in 2010 and 2011.”
As CW’s Edward Harrison notes,

this is not just about California. Come summer 2010, the most severe gaps will be closed via budget cuts or tax increases unless the Federal Government can pull a rabbit out of the hat.

My only quibble: the figure should … [visit site to read more]

US Bancorp Earnings Preview

Posted: 19 Jan 2010 01:38 PM PST

US Bancorp (USB) is scheduled to release its fourth quarter and full year 2009 financial results prior to the market open Wednesday, Jan. 20. According to the Zacks Consensus Estimate, US Bancorp will report earnings of 28 cents per share for the fourth quarter and 96 cents per share for the full year.
US Bancorp remains one of the more profitable large-cap banks in the industry. With a wide range of product offerings, the company remains well positioned for organic growth. Its strong retail … [visit site to read more]

First Horizon Misses Estimate

Posted: 19 Jan 2010 01:20 PM PST

First Horizon National Corporation (FHN) reported fourth quarter net loss of 32 cents, worse than the Zacks Consensus Estimate of a loss of 22 cents.
Net loss deteriorated to $70.6 million in the fourth quarter of 2009 from a loss of $52.9 million in the prior quarter and a loss of $63.1 million in the year-ago quarter. The decline is due to a fall in fee income and higher expenses, partially offset by an improvement in credit quality.
For the full year 2009, First Horizon's net loss … [visit site to read more]

4 Reasons Why Bernanke Will Refuse To Fight Inflation

Posted: 19 Jan 2010 01:10 PM PST

With recent news of inflation rising in Australia we turn an eye to the same eventuality at home in the US. Despite overwhelming growth in the monetary base, little inflation has yet to appear in government measures. Not that we're one to trust those…
Inflation's unlikely to keep at bay much longer. To date, banks have been hoarding new money pumped into the system as excess reserves (to protect themselves against grotesque losses like the $7.6 billion Citigroup reported losing last … [visit site to read more]

Goldman Postpones UK Bonuses

Posted: 19 Jan 2010 01:05 PM PST

Mulling over the new UK tax issues laid on executive bonus payments, according to a report in this morning’s The Daily Telegraph, Goldman Sachs Group Inc. (GS) has reportedly deferred the announcement.
According to the paper, Goldman Sachs was supposed to announce the structure and magnitude of bonus payments worth more than $20 billion that will also be shared by its 32,000 employees. This will result in highest average payout in the banking industry, all exceeding the super-tax limit. After … [visit site to read more]

A List Of Conglomerate Stocks Of Value Within A Diversified Portfolio

Posted: 19 Jan 2010 01:01 PM PST

There used to be lots of conglomerates. Back in the “go-go” days of the early 1960s, conglomerates as a species were the equivalent of tech stocks in the 1990s. Just about every investment guru had their favorites to recommend. All good things must come to and end, and almost all conglomerates fell out of favor (and profits), sinking mightily into the abyss of the Investment Sea.

Truth is, most conglomerate managements had no idea how to run disparate companies - many CEOs simply tried … [visit site to read more]

St. Jude Gets Product Approval

Posted: 19 Jan 2010 12:58 PM PST

St. Jude Medical, Inc. (STJ) recently received approval from the Japanese Ministry of Health, Labor and Welfare (MHLW) for marketing its Genesis spinal cord stimulation system in Japan. The Genesis spinal cord stimulation system is used for the management of chronic pain.
Spinal cord stimulators are also known as neurostimulators. They are small implanted devices used for managing chronic pain of the back, arms and legs. Neurostimulation therapy is provided to patients so that they can … [visit site to read more]

ASML Holding (Nasdaq: ASML): Ride This Volatile Company To Long-Term Profits

Posted: 19 Jan 2010 12:58 PM PST

Cowboy daredevils have their bucking bulls and broncos to ride. And thrill-seeking teenagers can strap themselves into rollercoaster's with loops, corkscrews and 400-foot drops when they need a rush.
But investors looking for the same intense up and down motions – and the charge of holding on for dear-life – can get their kicks from the notoriously volatile semiconductor industry… and even more so from the companies that manufacture its equipment.
Of that sub-sector, lithography – the … [visit site to read more]

Boeing’s Bio-Fuel Initiative

Posted: 19 Jan 2010 12:39 PM PST

Boeing Company (BA) along with the Masdar Institute of Science and Technology, Etihad Airways and Honeywell International Inc.'s (HON) subsidiary UOP LLC will establish a research institute and demonstration project in Abu Dhabi dedicated to sustainable energy solutions. The Sustainable Bioenergy Research Project (SBRP) will use integrated saltwater agricultural systems to support the development and commercialization of bio-fuel sources for aviation and co-products.
 
SBRP will … [visit site to read more]

Hormel Foods’ New Acquisition

Posted: 19 Jan 2010 12:24 PM PST

Hormel Foods Corporation (HRL) has entered into a definitive agreement to acquire the Country Crock chilled side dish line from Unilever United States Inc., of Englewood Cliffs, N.J. The transaction is expected to close by February 2010. However, the terms were not disclosed.
 
The Country Crock chilled side dish line consists of 10 varieties of refrigerated, microwaveable, multi-portion, potato-/pasta-based side dish products. The line, first introduced in 2004, is a strong player in … [visit site to read more]

Earnings Preview: Plexus

Posted: 19 Jan 2010 12:07 PM PST

Plexus Corporation (PLXS) is scheduled to release its first quarter of fiscal 2010 earnings ended January 2 after the market closes on January 20. Plexus Corp. is currently rated as a Zacks Rank #3 (Neutral) stock, indicating that it should perform in line with the overall market over the next 1−3 months.
 
Plexus had provided an encouraging guidance for the reportable quarter. The company expects modest revenue growth in the range of $405 – $430 million, up 6% quarter over quarter … [visit site to read more]

What Is The US Yield Curve Saying About The Economic Outlook?

Posted: 19 Jan 2010 12:01 PM PST

In our weekly Top Down Outlook we have analysed the development of the yield curve and its messages as regards the economic outlook

The onset of the New Year has failed to lessen investor uncertainty concerning the ongoing economic recovery and equities uptrend. Based on a recent economic commentary by the Cleveland Fed economist Joseph Haubrich, we have used the yield curve as a forecasting tool to try understanding what might happen to the economy in the months to come. Indeed, … [visit site to read more]

Two More Reasons To Sell Treasury Bonds

Posted: 19 Jan 2010 12:00 PM PST

Two more reasons to sell US Treasury bonds: Fannie Mae and Freddie Mac.
These two giant mortgage lenders are poster children for the dangers of wrapping government guarantees around the credit markets. With help from the state-sponsored banking system, these two government-sponsored entities (GSEs) perverted the process of credit intermediation and artificially suppressed the cost of mortgage loans over many decades.
This perversion of mortgage finance explains why house prices grew faster than … [visit site to read more]

Banks Gave You A Mortgage In Exchange For Your Honor

Posted: 19 Jan 2010 11:55 AM PST

In this thought-provoking clip, The Colbert Report's Stephen Colbert dissects the real reason behind the mortgage meltdown. It wasn't a matter of predatory lending, or irresponsible borrowing… it was actually a matter of honor:
"When you signed that mortgage you gave your word, and your word is who you are…
"…and I think this is a question of honor. The banks thought your honor was worth something and they gave you, they gave you a mortgage in exchange for your honor. It was so … [visit site to read more]

Parker Hannifin Tops Expectations

Posted: 19 Jan 2010 11:50 AM PST

Parker Hannifin Corporation (PH) reported second quarter 2010 earnings per share of 64 cents, beating the Zacks Consensus Estimate of 34 cents. Its fiscal second-quarter profit fell to $104.5 million, or 64 cents a share, from $155.4 million, or 96 cents a share, in the year-ago quarter.
Fiscal 2010 second quarter revenues were $2.4 billion, an increase of 5.3% compared with the first quarter of fiscal 2010 and a decline of 12.4% from $2.7 billion in the second quarter in the year-ago period. … [visit site to read more]

PetMed Beats Zacks Estimate

Posted: 19 Jan 2010 11:37 AM PST

PetMed Express, Inc. (PETS), America's largest Pet Pharmacy, recently reported third-quarter fiscal 2010 results. The quarterly earnings of 25 cents a share were above the Zacks Consensus Estimate by 2 cents, and rose 19% year over year from 21 cents posted in the prior-year quarter.
Net sales climbed 11.5% to $48.4 million during the quarter. Reorder sales jumped 17% to $37.6 million. New customer additions for the quarter came in at 151,000 compared to 154,000 new customer additions in … [visit site to read more]

Sinopec, BP Talk For Shale Gas

Posted: 19 Jan 2010 11:22 AM PST

Sinopec (SNP), the Chinese oil giant, is in talks over a possible collaboration with BP plc (BP) in shale gas development. This discussion follows the finalization of a deal between Royal Dutch Shell (PTR) during last November to jointly develop shale gas resources in southwest China. 

For this project, Sinopec has charted a total of 3,000 square kilometers, including 2,000 square kilometers in southwestern China and 1,000 square kilometers in eastern China. To tap these resources, … [visit site to read more]

Forex Trading: EURUSD Tries To Bottom. Needs A Push Though

Posted: 19 Jan 2010 11:22 AM PST

The EURUSD is not out of the woods as activity remains light and momentum is tame.  The price has wandered above the 100 bar MA on the 5 minute chart but a move from 1.4387 to 1.4395 is not awe inspiring.  There is trendline resistance at the top level which may balance the breaking of the 100 bar MA.  If inclined to buy, buy against 1.4381 which is the 200 day MA. If inclined to sell, sell against the trendline, and look for a move above 1.4314 to confirm upside … [visit site to read more]

Forest Labs Beats Expectations

Posted: 19 Jan 2010 11:11 AM PST

This morning, Forest Laboratories, Inc. (FRX), reported earnings per share of 97 cents for the third quarter of fiscal 2010, well above the Zacks Consensus Estimate of 86 cents. Total revenues increased 6.7% to $1.06 billion with product revenues increasing 8.4% to $997 million.
Although Lexapro sales declined 0.5% to $582.6 million, Namenda, which is approved for the treatment of moderate and severe Alzheimer's disease, delivered sales of $282.5 million, recording a growth of 17.3% from … [visit site to read more]

Ultra Petroleum Evenly Poised

Posted: 19 Jan 2010 11:10 AM PST

We are initiating coverage on Ultra Petroleum Corp. (UPL) with a Neutral recommendation and a target price of $55. 

Houston, Texas-based Ultra Petroleum is an independent energy firm engaged in the acquisition, development, exploration and production of oil and gas properties. The company's operations are focused on the Green River Basin of southwest Wyoming, mainly covering the Pinedale and the Jonah fields. Ultra Petroleum also holds substantial acreage in the Marcellus Shale … [visit site to read more]

Why Warrants Of Gold And Silver Companies Outperformed Physical Gold, Silver So Dramatically In 2009

Posted: 19 Jan 2010 11:01 AM PST

We are in the eye of the storm and when the other side of the vortex engulfs us gold and silver will increase considerably, their associated stocks will go up substantially and their warrants, where available, will escalate dramatically. They did so in 2009 (see below) and will most likely do so again in 2010. Does your portfolio properly reflect the opportunities that will continue to present themselves in 2010 and beyond?

All you need do is:

1.) invest in the stocks of the companies … [visit site to read more]

The Long And Short Of Investing In China

Posted: 19 Jan 2010 11:00 AM PST

Oh happy days are here again. Obama is going to get our money back from the banks. Jeffrey Sachs is telling Haiti how it can get its economy back in order (with other people's money, naturally). And Thomas Friedman is offering investment advice.
This should be fun. We're all on the bus…and it's driven by the blind, the deaf and the very dumb. Oh, sorry, we meant the visually impaired…the hearing impaired…and the mentally deficient.
Friedman is, as we all know, full of advice on just … [visit site to read more]

Core Labs Raises Dividend By 20%

Posted: 19 Jan 2010 10:55 AM PST

Oilfield service provider Core Laboratories N.V. (CLB) announced a 20% hike in its quarterly dividend to 12 cents per share, up from 10 cents. On an annualized basis, the quarterly cash dividend would be equal to a payout of 48 cents per share of common stock. The revised dividend will be effective from the first quarter of 2010, payable on Feb 25, 2010 to shareholders of record on Jan 25, 2010.
 
The dividend increase announcement gives us a fair view of Core Labs' strong liquidity … [visit site to read more]

Video: Market Movers: CIEN, CFL, TYC, WMB, WMZ, WPZ, MCD, BKC

Posted: 19 Jan 2010 10:42 AM PST

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

Harris Downgraded To Neutral

Posted: 19 Jan 2010 10:40 AM PST

We downgrade our recommendation for Harris Corp. (HRS) to Neutral, which means the stock will perform in line with the broader market. The stock price has moved up nearly 84% in the last one year and is currently trading at the high-end of its 52-week price range. Harris depends on the U.S. Government contracts for a major part of its revenue. In future, Federal budgetary pressures may result in deeper than expected cuts in defense spending, which may significantly impact the company's … [visit site to read more]

Encouraging Bionovo Results

Posted: 19 Jan 2010 10:25 AM PST

Recently, Bionovo, Inc. (BNVI) published results from the early-stage study of Bezielle (BZL101), its candidate for treating metastatic breast cancer. The results indicated that Bezielle was well tolerated and also confirmed the safety of the drug. Furthermore, the study provided clinical evidence of anticancer activity in a heavily pretreated population of women suffering from metastatic breast cancer. The most common side effects of the cancer treatment in the early-stage study were mostly … [visit site to read more]

Panasonic To Increase India Sales

Posted: 19 Jan 2010 10:10 AM PST

According to the Wall Street Journal, Panasonic Corp. (PC), a leading manufacturer of electronic and electrical products, systems and components in Japan plans to provide electronic parts for a car such as car audio related equipment and liquid crystal display (LCD) panels in India. The company plans to more than double its sales in India and aims to reach a sales target of $1 billion by the fiscal year ending March 2013.
 
Panasonic has been continuously increasing sales of consumer … [visit site to read more]

Video: Dollar Extends Gains Vs. EUR, JPY

Posted: 19 Jan 2010 10:06 AM PST

The U.S. dollar continues to trade higher vs. the EUR and JPY. The EUR weakened on German data, and ongoing concerns about Greece. … [visit site to read more]

Hedge Against A Stock Market Crash With The S&P 500 VIX ETN (VXX)

Posted: 19 Jan 2010 10:01 AM PST

There is an old saying, “It’s not the pace of life that bothers me; it’s the sudden stop at the end.” One could say the same of overbought, over-bullish, overly complacent markets.

If a market rises on solid fundamental drivers, there is no reason to fear collapse. If the rise is predicated on “greater fool theory,” however, that’s a different story. Flimsy structures tend to fall down much faster than they are built up. Just ask investors in Lehman Brothers… or Citigroup… or Iceland or … [visit site to read more]

Iceland’s Government On Verge Of Collapse, Again

Posted: 19 Jan 2010 10:00 AM PST

Today, Iceland announced it will start its referendum on January 28th to determine whether or not it will pay back its lenders, the UK and The Netherlands. The vote will be finalized on March 6th. Iceland's already been considering how to potentially ditch its British and Dutch debts for some time. As we described earlier this month:
"In 2008, when the Icelandic economy imploded and Landsbanki's Icesave division went under, the UK and the Netherlands rode to the rescue of their own … [visit site to read more]

Expecting The Dollar Index To Rise For 2010

Posted: 19 Jan 2010 09:58 AM PST

In 2009, investors were down on the US Dollar, and anytime the US Dollar was down, everything else was up. But as we head into 2010, the US Dollar appears to have found support above the all time lows made around $70 in March, 2008 and reversed higher. There is reason to believe that from a technical perspective this reversal is for real, and it is real enough that it should have implications for other markets.

Figure 1 is a monthly chart of the Dollar Index (symbol: $DXY). The “next big … [visit site to read more]

MT & BHP Discuss Interests

Posted: 19 Jan 2010 09:51 AM PST

ArcelorMittal (MT) entered into initial discussions with BHP Billiton (BHP) to potentially combine their respective iron ore mining and infrastructure interests in Liberia and Guinea in a joint venture.
 
The iron ore interests of the two companies in Liberia and in Guinea are proximate and could be significantly more competitive if brought together in a combined operation. The parties will work together over the coming months to assess the merits of a partnership and will also work … [visit site to read more]

Constellation Tenders $400M Notes

Posted: 19 Jan 2010 09:32 AM PST

Constellation Energy Group Inc. (CEG) announced the commencement of a cash tender offer for up to $400 million in notes. The tender offer includes the company's outstanding 7.00% Notes due April 1, 2012, and its outstanding 4.55% Notes due June 15, 2015. The tender offer will expire on Feb 3, 2010, unless extended.
 
The tender offer is a part of Constellation Energy's previously announced commitment to repay $1 billion of debt. Constellation Energy expects to fulfill this … [visit site to read more]

How To Profit From Volatility Through One Simple Investment

Posted: 19 Jan 2010 09:22 AM PST

Tuesday, January 19, 2010: Issue #1178
When this market finally runs out of steam and corrects to the downside, Wall Street isn't going to ring a bell to let you know.
The Wall Street Journal and Financial Times aren't going to tell you.
And no… the folks at CNBC aren't going to let you know either.
But while everyone else sits around and waits for volatility to kick higher and the market to decline again – promptly spinning into a panic  – it pays to "buy insurance" now … [visit site to read more]

Vodafone Femtocell’s New Avatar

Posted: 19 Jan 2010 09:12 AM PST

Vodafone UK (VOD) reportedly rebranded and drastically cut the price of its femtocell (mini base station) product in an effort to boost customer adoption. The telecom giant has renamed its femtocell offering to Sure Signal from the earlier moniker Access Gateway to make it more relevant to the device's functionality (improving wireless signal).
 
Vodafone became the first carrier in Europe to commercially launch a femtocell product leapfrogging over its main rival Telefonica (TEF), … [visit site to read more]

Top Performing ETFs Of 2010

Posted: 19 Jan 2010 09:01 AM PST

With the S&P500 off to a roughly flat open for the year (up 2% YTD), I thought it would be instructive to review the top performing ETFs 2010 YTD. Since leveraged ETFs can skew an underlying sector trend meaningfully (especially in the near term until value breaks down over time due to daily rebalance decay), I’ve broken out both leveraged and non-leveraged ETF groups.

Leveraged ETFs Top 5 YTD 2010:

AGQ - Up 19% - Ultra Silver ProShares

EZJ - Up 14% - Ultra MSCI Japan … [visit site to read more]

Repsol’s New Contract In Algeria

Posted: 19 Jan 2010 08:55 AM PST

Spain's largest integrated oil and gas company Repsol YPF S.A. (REP) and its partners Enel and GdF-Suez have signed an exploration and exploitation contract for the ‘Sud-Est Illizi’ gas field in Southeastern Algeria with Sonatrach, the Algerian national oil company. The respective shares of the companies in the consortium are 52.5%, 27.5% and 20%.
 
This contract represents Repsol’s position in Algeria, where the company has been actively engaged in various upstream activities. Repsol … [visit site to read more]

NWSA Stake Rises In Sky Deutschland

Posted: 19 Jan 2010 08:37 AM PST

News Corp. (NWSA), a diversified global media company, recently subscribed to over 49 million new registered shares of Sky Deutschland, a German pay-TV provider, at a price of €2.25 ($3.24) per share for an aggregate cost of €110 million ($143.9 million).
 
News Corp. subscribed to the shares through its subsidiary News Adelaide Holdings B.V. With the deal, the media company would increase its stake in Sky Deutschland from 39.96% to 45.42%. News Corp. currently operates in eight … [visit site to read more]

Three ETF Alternatives To UNG

Posted: 19 Jan 2010 08:34 AM PST

The rapid rise of the ETF industry has caused the expanded the investment arsenal of millions significantly, bringing asset classes previously reserved for only the largest and most sophisticated investors within reach. This development is perhaps best demonstrated by the surge in popularity of exchange-traded commodity products. According to data from the National Stock Exchange, commodity ETFs took in more than $30 billion in 2009, an amount that is even more remarkable considering that … [visit site to read more]

Citi In-Line On TARP Outlay

Posted: 19 Jan 2010 08:30 AM PST

Citigroup’s (C) fourth quarter 2009 net loss of 33 cents per share was in line with the Zacks Consensus Estimate. This compares favorably with a net loss of $3.40 per share in Citi’s prior-year quarter. Results for the reported quarter include a $6.2 billion after-tax loss associated with Citigroup’s TARP repayment and exiting the loss-sharing agreement.
Citi’s GAAP net income for the quarter was $7.6 billion, compared to a net loss of $17.3 billion in the prior-year quarter. Excluding TARP … [visit site to read more]

MoneyGram Expands In Hungary

Posted: 19 Jan 2010 08:19 AM PST

Expanding its presence in Hungary, MoneyGram International Inc. (MGI) announced yesterday its partnership with Corner Cash Keszpenz Zrt to enhance its money transfer service business by adding its service to Corner Cash's 11 locations across the country. Through this alliance, MoneyGram has added yet another country to its global network.
 
Money transfer business remains the driving force for MoneyGram and going forward, management projects a strong remittance market in Hungary. In … [visit site to read more]

Built Ford Tough: Why This Resilient Automaker Is A Good Long-Term Buy

Posted: 19 Jan 2010 08:18 AM PST

In a year that saw two of America's biggest companies – and the heart and soul of Detroit's auto industry – tumble into bankruptcy, one firm stood out.
While General Motors and Chrysler unashamedly begged for the government's help before filing their Chapter 11s, Ford Motor Co. (F) stood out, first by relying largely on its own resources (not American taxpayers') and also by remaining out of bankruptcy court.
And while critics can cite a number of failures and recalls to justify … [visit site to read more]

Weather Forecasts May Be The Key To The Next Move In Natural Gas Prices

Posted: 19 Jan 2010 08:17 AM PST

Fundamentals
A chilly start to 2010 has Natural Gas bulls starting to warm up to a futures contract that has been mired in a bear market since the middle of 2008. This past Thursday, the Energy Information Administration reported that 266 billion cubic feet (bcf) of Gas was removed from storage the week ending January 8th, just missing the all- time record draw of 274 bcf that occurred in January 2008. This was well above last year’s 88 bcf draw and has helped to cut into the record amount of … [visit site to read more]

Citi Silver Lining: Better Than Last Year

Posted: 19 Jan 2010 08:11 AM PST

Citigroup (C) matched the Zacks Consensus Estimate for its fiscal fourth quarter reported this morning at a loss of 33 cents per share. The company suffered an incredibly bad fourth quarter of 2008, so year-over-year comparables are very favorable. So favorable, in fact, they are devoid of much meaning. A year ago, Citigroup lost $3.40 per share in the quarter. Revenues dropped 4.2% from the year-earlier level to $5.41 billion.
The quarterly loss would have been a much narrower 6 cents per … [visit site to read more]

Raytheon To Fight Cyberattacks

Posted: 19 Jan 2010 08:02 AM PST

Raytheon Co.'s (RTN) wholly owned subsidiary Raytheon BBN Technologies has been awarded a $2.9 million contract by the U.S. Air Force Research Laboratory to develop new approaches to protect the Department of Defense Service-Oriented Architectures (SOA) against cyberattacks.
 
Military information systems are increasingly dependent on SOA, which is called upon to support complex military tasks and missions. The advanced security features that Raytheon BBN Technologies will develop … [visit site to read more]

OMNOVA Surpasses Expectations

Posted: 19 Jan 2010 07:45 AM PST

OMNOVA Solutions Inc. (OMN) reported fiscal 2009 fourth-quarter results on Monday. The company recorded earnings of $11.1 million or 25 cents per share, compared to $0.8 million, or 2 cents per share in the year-ago period. The quarterly result also surpassed the Zacks Consensus Estimate of 15 cents. The strong performance was primarily driven by robust gross margins amid lower raw material costs and management efforts to reduce manufacturing expenses. 

OMNOVA designs, develops, … [visit site to read more]

Forex Trading: USDJPY Moves Above 100 Hour MA. Looking For Further Momentum

Posted: 19 Jan 2010 07:35 AM PST

The USDJPY is pushing the 100 hour MA resistance at the 91.04 level. So far, the momentum has been muted, but the bias remains positive.   A break above the 91.16 will help confirm the move higher (50% of the move down from the January 14th high to the low reached today).  The next target would be 91.37, the 61.8% retracement from the move down. 
Meanwhile, a move back below 91.00 would be a disappointment for the pair and for the extension … [visit site to read more]

US Dollar Rallies On Strong Economic Data

Posted: 19 Jan 2010 07:32 AM PST

I was reading a good, thoughtful story about how currency swings could be dying down, as we return to fundamentals. You know, me… I jumped from my chair, and click my heels together in joy! OK, I'm not physically able to do that any longer, so I did it in my mind! But a return to fundamentals? I'm all over that like a cheap suit! One of the fundamentals that the story highlighted that would be taken into consideration by traders, would be interest rate differentials… Which, I've … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: C, KFT

Posted: 19 Jan 2010 07:31 AM PST

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

Collective Brands To Buy ATR

Posted: 19 Jan 2010 07:30 AM PST

Collective Brands, Inc. (PSS), the wholesaler and retailer of footwear and related accessories, recently declared that it will acquire Above The Rim (ATR) brand from Reebok International, owned by Germany's Adidas AG. The terms of the transaction were not disclosed. 

The operator of Payless ShoeSource and Stride Rite chains, Collective Brands said that Collective Licensing International, will help expand the "Above The Rim” brand's presence in the U.S. and globally. Above The Rim … [visit site to read more]

Novatel Upgraded To Outperform

Posted: 19 Jan 2010 07:15 AM PST

We upgrade our recommendation for Novatel Wireless Inc. (NVTL) to Outperform following huge international momentum for its innovative MiFi line of Products. We expect the top-line of Novatel to maintain its current growth rate supported by the strong demand for MiFi mobile intelligent hotspot and USB modems. The company has generated a record high level of free cash and also significantly improved its gross margin. Additionally, Novatel has a very strong balance sheet, capable of … [visit site to read more]

FX Options Weekly Outlook

Posted: 17 Jan 2010 02:00 PM PST

Jason Ayres, founder of OptionSource.net, provides a look a head of this week’s FX activity. … [visit site to read more]
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