Jan 28, 2010

Daily Markets - Financial News & Opinions

Daily Markets - Financial News & Opinions

A Hands-on, Day-to-Day Perspective

Posted: 28 Jan 2010 06:06 PM PST

Many people (including me) who write about the economy don’t necessarily have the hands-on, day-to-day perspective that small business owners have. One blog I visit on a regular basis, Angry Bear, featured a post, “I Got your REAL State of the Union Right Here,” by an individual who regularly toils away on Main Street’s front line — and who does a great job explaining what the real problem is nowadays [bold italics mine]:

Well, I thought being tonight is the big night for the President I … [visit site to read more]


The Best Time In A Year To Buy Gold Stocks

Posted: 28 Jan 2010 05:45 PM PST

It took only three days last week to wipe out three months of gains. The selling was heavy. It was persistent. And it took down every market sector.

Precious-metal stocks were among those suffering the worst beating.

Indeed, the Market Vectors Gold Miners ETF (GDX) is down 15% from its January high, eclipsing the 5% loss in the S&P 500. If we measure the action from early December, GDX is down 23%.

Ouch. It has been a difficult couple of months to be a gold bug.

But just as … [visit site to read more]

Obama Needs To Teach The Public How To Get Out Of The Mess We’re In, But He’s Not

Posted: 28 Jan 2010 05:33 PM PST

The President wants businesses that hire new employees this year to get $5,000 per hire, in the form of a tax credit. That will come to about $33 billion. It's good step. He's also supporting a cut in the capital gains tax for small businesses. That makes sense; after all, small businesses generate most jobs.
But here's the problem. Both of these measures, and many of the other tax cuts he's proposing, give ammunition to supply-siders who think the way out of this awful … [visit site to read more]

Japanese Yen Rallies As Investors Move Assets From Troubled Euro Zone

Posted: 28 Jan 2010 05:17 PM PST

The Japanese Yen rose on Thursday as investors shifted assets out of the troubled Euro Zone on renewed budget turmoil in Greece. A spike in the cost to insure Greece’s sovereign debt triggered a flight to safety rally which fueled a turnaround in the Yen after earlier weakness. News that a similar situation is developing in Portugal also contributed to the Yen’s strength. The Euro fell to it lowest level against the Dollar as the news broke.
Traders had been cautiously removing risk from the … [visit site to read more]

Why Is The Stock Market Selling Off?

Posted: 28 Jan 2010 05:02 PM PST

What is driving the market lower?

I thought the economy was starting to improve. Didn’t the Federal Reserve indicate as much just yesterday? Do you believe them? While we could debate the depth of integrity embedded in many statements that emanate from Washington, let’s focus on what we do know and see happening. In the process, we will be better positioned to most effectively navigate our economic landscape and the markets.

So, back to the initial question: what’s driving the … [visit site to read more]

The Action To Take While Washington Talks

Posted: 28 Jan 2010 05:01 PM PST

Washington may talk about pulling in all those dollars, but it will never actually happen. Here’s how to protect yourself from all the blather.

It’s all about talk versus action, what a body does, as against what they actually do. As I sit to write to you today, the markets have been stalemated for the past few days because investors just can’t seem to sort out that critical difference.

The Federal Reserve has been meeting for two days now. Word on the street has them in deep debate as to … [visit site to read more]

Forex Trading: Australian Dollar/Japanese Yen Outlook

Posted: 28 Jan 2010 04:52 PM PST

It was an extremely volatile week for the whole of the asset classes in our Top Down Portfolio, with major international equity markets erasing early year’s gains, commodity prices falling and carry trades losing momentum. The only exception was the NOK/SEK exchange rate, which was little changed ahead of the 3 February Norges Bank monetary policy meeting that may see the CB hiking rate to 2%. Our base scenario is that the Bank will not tighten until the March 24 monetary policy … [visit site to read more]

SEC IG Report: George Demos Pimped Peter Sivere

Posted: 28 Jan 2010 04:44 PM PST

Who is George Demos? A former enforcement lawyer in the New York office of the SEC, currently running for Congress from Long Island.

Who is Peter Sivere? A former compliance employee at JP Morgan (JPM).

Sivere crossed paths with Demos in 2004 while providing information related to an investigation of questionable mutual fund trading activity. In the midst of Sivere’s engagement with the SEC, his confidence was violated. I highlighted this reality the other day in writing, “The SEC … [visit site to read more]

No More Glory Days For China Property Stocks On Singapore Exchange

Posted: 28 Jan 2010 04:01 PM PST

Nowadays when china sneeze, the world will catch a cold. But this past week’s collapse of world major indices seem to be taking its cue from china’s move to tighten credit crunch and it seem more than just a normal flu bug or could it be the more deadly H1N1 virus. I have a bearish stand on property stocks with  heavy China exposure and below is my view on some of the counters includingCapitaland, Yanlord , Panhong and Yingli. This sector will be the shortist’s paradise in the coming … [visit site to read more]

The Fiscal Democracy Index

Posted: 28 Jan 2010 03:00 PM PST

That's just one illustration of how politicians' past promises end up costing more than they ever expect. And it's chump change when you ponder this…

This comes courtesy of Gene Steuerle, author of a column appropriately entitled "The Government We Deserve." It's a complicated metric, but it works like this: Take all the federal spending deemed "mandatory" (Social Security, Medicare, Medicaid, interest on the debt). Then measure it as a percentage of all the tax revenue Uncle … [visit site to read more]

T. Rowe Price Results Improve

Posted: 28 Jan 2010 02:23 PM PST

T. Rowe Price Group, Inc.'s (TROW) fourth quarter 2009 earnings of 57 cents per share came in ahead of the Zacks Consensus Estimate of 55 cents due to higher-than-expected top-line growth and higher assets under management (AUM). Earnings per share were drastically up from 9 cents in the prior-year quarter. Net income applicable to common shareholders increased sevenfold to $152.5 million from $24.3 million in the fourth quarter of 2008.
Net revenue increased 30.5% to $542.6 million from … [visit site to read more]

Dominion Beats & Reaffirms

Posted: 28 Jan 2010 02:10 PM PST

Dominion Resources Inc. (D) fourth quarter 2009 EPS was 63 cents, within company's guidance range of 55 to 65 cents and above the Zacks Consensus Estimate of 60 cents. However, the quarterly EPS declined versus last year's EPS of 73 cents. The earnings drag during the quarter is attributed to higher outage costs, unfavorable weather in the regulated electric service territory and higher depreciation and amortization expenses.
Dominion reported full-year operating earnings of $3.27 per … [visit site to read more]

Video: NYSE Closing Bell Market Monitor: EK, MMM, MOT

Posted: 28 Jan 2010 02:10 PM PST

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

Amazon Soars On Net Sales Gain

Posted: 28 Jan 2010 02:04 PM PST

The holiday season was very good to Amazon.com, Inc. (AMZN) as the world’s most recognized online retailer reported fourth-quarter EPS and sales that soared year over year and beat expectations.
A day after Apple introduced the iPad, which is likely to be big competition for the blockbuster Kindle eReader, AMZN announced that net sales jumped 42% to $9.52 billion, compared to last year’s $6.7 billion.
Earnings per share came in at 85 cents, or approximately 18% better than the Zacks … [visit site to read more]

Cartoon: Spending Freeze

Posted: 28 Jan 2010 02:01 PM PST

Source: Nate Beeler, Comics.com, January 26, … [visit site to read more]

Breezing Through The Government Spending Freeze

Posted: 28 Jan 2010 02:00 PM PST

Now, here's some good news:
"US cattle herd falls to '58 levels."
That's good news because it means that maybe we'll be able to make some money from our scrawny 'sand fed' cows in Argentina. We bought the farm down there 4 years ago. Then, we had about 1,000 head. But we called in an expert – a tall, good-looking blond fellow named Juan Anderson. He told us to reduce the number of cows so they'd get enough to eat in our desert pastures. Now we're down to 600 cows. That … [visit site to read more]

Daily ETF Roundup: DBA Jumps, JJC Continues Freefall

Posted: 28 Jan 2010 01:57 PM PST

Financial markets continued their freefall the day after president Obama's first State of the Union Address, despite some pleasant earnings surprises. Ford reported its first annual profit since 2005, and indicated that the company would remain profitable on a pre-tax basis for the next two years. Microsoft reported a big jump in sales attributable partly to strong demand for Windows 7, while Amazon's revenue and net income rose 42% and 71%, respectively, in the fourth quarter. Elsewhere, … [visit site to read more]

Kodak Surpasses Expectations

Posted: 28 Jan 2010 01:56 PM PST

Eastman Kodak Company (EK) reported results for the fourth quarter and fiscal year 2009.
Kodak reported earnings from continuing operations of $439 million, or $1.36 per share, compared to a loss of $914 million or $3.40 per share in the fourth quarter of 2008.  Reported EPS was far above the Zacks Consensus Estimate of $0.18. Full-year 2009 losses were $232 million or $0.87 versus a loss of $727 million or $2.58 in 2008 and a loss of $1.47 according to the Zacks Consensus … [visit site to read more]

Worse Than It Looks?

Posted: 28 Jan 2010 01:52 PM PST

Following on from data presented by Calculated Risk in various posts, including “Weekly Summary and a Look Ahead”, which I highlighted in “Not a Positive Economic Picture,” an article in the January issue of the Federal Reserve Bank of Dallas Economic Letter, entitled “A Historical Look at the Labor Market During Recessions,” confirms that the U.S. unemployment rate has “surpassed the average of all post-World War II recessions—and…continued climbing through 2009.”

The authors … [visit site to read more]

UAL Corp. Loss Narrows

Posted: 28 Jan 2010 01:44 PM PST

UAL Corporation (UAUA) reported a fourth quarter loss of $1.05 per share, better than the Zacks Consensus Estimate of a loss of $1.47. Last year, the loss was $4.31. The company’s loss narrowed during the quarter due to an improvement in demand for business and premium travel along with lower operating costs.
 
Total revenues declined about 8% year-over-year to $4.2 billion. UAL beat its consolidated passenger unit revenue guidance by about one point, as both traffic and yield were … [visit site to read more]

On Financial Reform, Dec, 2009 (Produced By Jacob Kornbluth And…

Posted: 28 Jan 2010 01:43 PM PST

On financial reform, Dec, 2009 (Produced by Jacob Kornbluth and Raub … [visit site to read more]

On The Fight For A Public Option, Oct 20, 2009 (Produced By…

Posted: 28 Jan 2010 01:39 PM PST

On the fight for a public option, Oct 20, 2009 (Produced by Jacob Kornbluth and Raub … [visit site to read more]

Franklin Benefits From New Assets

Posted: 28 Jan 2010 01:32 PM PST

Franklin Resources Inc's (BEN) first-quarter earnings of $1.54 per share were ahead of the Zacks Consensus Estimate of $1.47. Results were also ahead of the prior-year period's earnings of 52 cents. The better-than-expected results reflected a greater inflow of cash in its funds.
Total operating revenues increased 42.0% year-over-year to $1.4 billion, primarily led by higher investment management fees, underwriting and distribution fees.
Total operating expenses increased 30.0% … [visit site to read more]

CACI International Beats Estimates

Posted: 28 Jan 2010 01:19 PM PST

CACI International Inc (CACI) reported revenues of $776.7 million in the second fiscal quarter, up 15.5% from the year-ago quarter. The increase in revenues was driven by a 13% organic growth propelled by the continued strong performance of defense and intelligence businesses.
Based in Arlington, Virginia, CACI International delivers IT applications and infrastructure that is used to improve communications and secure the integrity of information systems and networks, enhance data collection … [visit site to read more]

Picking The Right Money Market ETF

Posted: 28 Jan 2010 01:12 PM PST

As interest in ETF investing has surged in recent years, issuers have rushed to expand their product lines into every corner of the investable universe. The first generation of ETF products consisted mostly of equity funds designed to track well-known benchmarks, and while the vast majority of ETF assets remains in these "plain vanilla" funds, innovation in the industry has brought countless asset classes and investment strategies within the reach of all levels of investors. After initially … [visit site to read more]

The Case For Commodities In 2010

Posted: 28 Jan 2010 01:00 PM PST

The biggest emerging economies have ambitious plans that require a greater share of the world's limited commodities. This trend is spurring profound and permanent disruptions in how these resources are allocated now and in the future. For investors, these disruptions present opportunities.
Simply put, an investment in natural resources is a vote of confidence in global economic growth.
Rapid urbanization and industrialization, better infrastructure and growing consumption in emerging markets … [visit site to read more]

Owens-Illinois Moderately Beats

Posted: 28 Jan 2010 12:54 PM PST

Owens-Illinois, Inc. (OI) reported encouraging results for the fourth quarter and full year 2009. During the fourth quarter of 2009, EPS was $0.49, up from $0.45 in the fourth quarter of 2008. Reported EPS was slightly above the Zacks Consensus Estimate of $0.47. Full-year 2009 EPS was $2.93, down from $3.80 in 2008, while it was above the Zacks Consensus Estimate of $2.91.
Net revenues during the fourth quarter and full year 2009 were $1.9 billion and $7.1 billion, respectively. Fourth … [visit site to read more]

Conan O’Brien And Robert Reich

Posted: 28 Jan 2010 12:41 PM PST

Conan O'Brien and Robert … [visit site to read more]

Bristol-Myers Beats Zacks Estimate

Posted: 28 Jan 2010 12:40 PM PST

This morning, Bristol-Myers Squibb Company (BMY) reported fourth quarter and full-year results for fiscal 2009.
Quarterly Results
The company earned 47 cents per share in the fourth quarter as opposed to 40 cents in the year-ago quarter. The Zacks Consensus Estimate for the quarter was 43 cents.
Net sales for the quarter came in at $5,033 million against $4,542 million in the year-ago quarter, representing an increase of 10.8%. The increase was primarily attributable to strong sales of … [visit site to read more]

Mortgage Delinquencies Still Rising

Posted: 28 Jan 2010 12:27 PM PST

Freddie Mac (FRE) reported that the serious single family delinquency rate for mortgages in its portfolio rose to 3.87% in December from 3.72% in November, an increase of 15 basis points. Serious delinquencies are mortgages where the homeowner is more than 90 days behind on their payments, but have not yet been foreclosed on.
The serious delinquency rate rose in every month of 2009 (and every month in 2008, for that matter). A year ago the rate stood at 1.72%, at its low point in the first … [visit site to read more]

These Biotech Stocks Are Just What The Doctor Ordered

Posted: 28 Jan 2010 12:12 PM PST

They say that one in every nine women will get breast cancer.
It's a staggering statistic, just like the equally frightening claim that one in four people will end up with some type of cancer in their lifetimes… or that the disease affects 10 million people around the globe every year.
Fortunately, doctors, research teams and entire corporations have set their brilliant minds to finding a viable cure. And they've made enormous strides in DNA profiling and the emerging field of … [visit site to read more]

Lockheed Shoots Past Estimate

Posted: 28 Jan 2010 12:11 PM PST

Before markets opened today, Lockheed Martin Corporation (LMT) reported strong fourth quarter fiscal 2009 results and raised its fiscal outlook. In the reported quarter with EPS of $2.17, the company beat both the Zacks Consensus Estimate and the year-ago EPS of $1.98 and $2.05, respectively.
However, Lockheed Martin's net earnings increased only $4 million to $827 million in the reported quarter compared to $823 million in the year-ago quarter. The upside in EPS was fueled to a large … [visit site to read more]

My Confrontation With Ben Bernanke: The One Question He Refused To Answer

Posted: 28 Jan 2010 12:01 PM PST

The Secret Service agents watched me warily as I approached U.S. Federal Reserve Chairman Ben Bernanke.

I didn’t waste any time. After introducing myself, I showed him a copy of the talk he gave at the American Economic Association (AEA) meetings in January 2007. I circled all the times he used the words “panic,” “crisis, and “stress” in his speech, entitled “Central Banking and Bank Supervision of the United States.”

A total of 36 occasions.

I asked him point-blank: “Did you know in … [visit site to read more]

State Of The Union: A Day Late, And A Buck Short

Posted: 28 Jan 2010 12:00 PM PST

On the eve of Obama's election to the presidency, while pondering how long the recession would last, we wrote:
"The data point to watch will be unemployment. The real danger economically, socially or politically speaking, in the '30s was loads of young men without jobs.
"Unemployment leapt up to 25% in a very short amount of time between the stock market bust in 1929 and 1934…the end of the official recession."
Today, we follow up the now president's State of the Union address … [visit site to read more]

McCormick Barely Beats

Posted: 28 Jan 2010 11:58 AM PST

McCormick & Company Inc. (MKC) posted robust fiscal 2009 fourth-quarter results before the opening bell on Thursday. The company recorded a 41% growth in GAAP net income to $116.4 million from $82.5 million in the year-ago quarter. Excluding restructuring charges, earnings per share came in at 91 cents per share, which edged past the Zacks Consensus Estimate of 90 cents. 

Net sales for the quarter increased 1.9% year-over-year to $924.5 million, primarily driven by a 4.3% growth in … [visit site to read more]

Rockwell Collins Disappoints

Posted: 28 Jan 2010 11:43 AM PST

Rockwell Collins Inc. (COL), the supplier of avionics and military equipment, recently reported dismal first-quarter 2010 results. Although, quarterly earnings of 76 cents per share topped the Zacks Consensus Estimate of 73 cents, it fell 20% from 95 cents delivered in the prior-year quarter.
 
Rockwell's total sales dipped 3% year-over-year to $1,027 million due to sustained weakness experienced in the business jet market, fall in commercial aerospace aftermarket revenue, … [visit site to read more]

Investing In This Industry’s Downside Is A No-Brainer

Posted: 28 Jan 2010 11:42 AM PST

This analysis is from Martin Denholm, Senior Editor, Investment U
Just a few days after the collapse into bankruptcy of Japan Airlines, the third-largest carrier in Asia, grim figures from the International Air Transport Association (IATA) shed some light on the reasons behind the airline's descent.
In short, it was the worst year in post-war history for the airline industry.
With several major developed economies still experiencing anemic growth and unemployment rising, airline passenger … [visit site to read more]

Texas Capital Tops View

Posted: 28 Jan 2010 11:28 AM PST

Texas Capital Bancshares Inc.'s (TCBI) fourth quarter earnings of 18 cents per share were slightly ahead of the Zacks Consensus Estimate of 16 cents. The company had earned 11 cents in the year-ago quarter. The better-than-expected results were primarily driven by an increase in net interest income and lower loan loss provisions, partially offset by higher expenses. 

For the full year 2009, Texas Capital reported operating earnings of 55 cents per share compared to 89 cents in … [visit site to read more]

Forex Trading: GBPUSD Tests Support At 1.6107 Area

Posted: 28 Jan 2010 11:26 AM PST

Look for buyers against the … [visit site to read more]

Ford: 1st Yearly Profit Since ‘05

Posted: 28 Jan 2010 11:18 AM PST

Ford Motor Co. (F) has shown a profit of $8 million (excluding special items) for 2009, driven by favorable net pricing, structural cost reductions, net gains on debt reduction actions and strong Ford Credit results. This was the company’s first annual profit since 2005 and a $7.3 billion improvement over 2008.
In the fourth quarter of the year, Ford posted a profit of $1.6 billion or 43 cents per share (excluding special items), compared to a loss of $3.3 billion or $1.40 per share a year … [visit site to read more]

LIFE Beats, Outlook Positive

Posted: 28 Jan 2010 11:12 AM PST

Life Technologies Corporation (LIFE) reported fourth quarter earnings of 80 cents per share, well above the Zacks Consensus Estimate of 72 cents. The company reported earnings of 82 cents in the year-ago period. For the full year, Life reported earnings of $3.04, beating the Zacks Consensus Estimate of $2.96. Full year results were better than the year-ago earnings of $2.85. 

Strong growth in Europe, Asia-Pacific, the Americas and Japan helped fourth quarter revenues increase 14% to … [visit site to read more]

The Number One Reason Why Google Failed In China… And It’s A Big One

Posted: 28 Jan 2010 11:04 AM PST

It's been 16 years since China allowed its first Internet connection. And it's been 16 years since everybody outside began speculating about exactly what that meant for the Communist country.
Western governments hailed the move as a step away from censorship and authoritarian control, while individual companies practically drooled over the massive, untouched consumer base and all of the opportunities it held.
Of the more noteworthy corporations to take advantage of the perceived new era, … [visit site to read more]

Picture Of The Day: How The AIG Bailout Really Worked

Posted: 28 Jan 2010 11:01 AM PST

While the AIG (AIG) controversy rages and the enquiry into the bailout gathers momentum, Professor Linus Wilson of the University of Louisiana (via Clusterstock) has put together a helpful chart showing exactly how the bailout was constructed and indicating which banks got how much.
“Two things stand out: The Treasury’s overpayment for preferred stock was a crucial part of the bailout, and though Goldman Sachs is usually held up as the bad guy here, SocGen received $2.5 billion more,” … [visit site to read more]

Dow 10,300: Mimicking The Bounce After The Crash Of ‘29

Posted: 28 Jan 2010 11:00 AM PST

Let's call it a victory. Despite spending most of yesterday's trading session in the red, the Dow Jones Industrial Average staged a late-day rally to eke out a 42-point gain. Nevertheless, the selloff that started early last week has erased all of the Dow's progress since November 9, 2009 – a day on which headlines gushed that the Group of 20 nations would continue to save the world by maintaining their economic stimulus efforts. Investors celebrated that news by rallying the Dow 203 … [visit site to read more]

Baxter Reports In-Line

Posted: 28 Jan 2010 10:57 AM PST

Baxter International Inc. (BAX) reported financial results for the fourth quarter and full fiscal 2009. For the fourth quarter, earnings per share were $1.03, in line with the Zacks Consensus Estimate and higher than the year-ago earnings of 91 cents. For full fiscal 2009, earnings per share were $3.80, again in line with the Zacks Consensus Estimate and greater than the year-ago earnings of $3.38. 

Quarterly results 
Net sales in the reported quarter increased 11% year over year … [visit site to read more]

Colgate Beats Zacks Consensus

Posted: 28 Jan 2010 10:47 AM PST

Colgate Palmolive Company (CL) reported results for the fourth quarter and full year of 2009 with fourth quarter earnings of $1.21 per share, which was 8 cents above the Zacks Consensus Estimate of $1.13. Earnings were up 21% year-over-year, driven by effective price implementation and ongoing aggressive cost savings program.
Net sales for the quarter increased 11.5% year-over-year to $4.1 billion as unit volume increased 3.0%, pricing contributed 3.5% and foreign exchange contributed 5.0%. … [visit site to read more]

Estee Lauder’s Earnings Jump

Posted: 28 Jan 2010 10:41 AM PST

The Estee Lauder Companies (EL), the manufacturer and marketer of cosmetics products, recently reported better-than-expected second-quarter 2010 results on the heels of robust global sales growth, cost containment and savings from restructuring, registering double-digit increase at both top and bottom-lines. 

The quarterly earnings of $1.28 per share surpassed the Zacks Consensus Estimate of $1.21, and soared 60% from 80 cents delivered in the prior-year quarter. The New York based … [visit site to read more]

UBS Launches S&P 500 Gold Hedged ETN (SPGH)

Posted: 28 Jan 2010 10:40 AM PST

Thursday marked the first day of trading for the UBS E-TRACS S&P 500 Gold Hedged ETN (SPGH), a unique product that offering investors exposure to large cap equities along with a hedge against a declining U.S. dollar. SPGH will track the S&P 500 Gold Hedged Index, a benchmark designed to measure the performance of an investment strategy long the S&P 500 and hedged against fluctuations of the dollar relative to gold prices. The index does this by hedging beginning-of-period S&P … [visit site to read more]

Forex Trading: USDJPY Tests The 100 Hour MA After Bouncing Off The Support Area

Posted: 28 Jan 2010 10:31 AM PST

We were looking for support against the 89.56/64 area and the market found the support (CLICK HERE). Now we are back higher looking to test the 100 hour MA at the 89.91 level.  I would expect sellers against this level at least on the first test. A move through will likely look for  a move up to test the 100 bar MA on the 5 minute chart at the 90.05 level currently (and moving lower).
Short term intraday support comes in at 89.71 and below the 89.56-64 range … [visit site to read more]

Video: Market Movers: EK, NFLX, MOT, PJC, COF

Posted: 28 Jan 2010 10:31 AM PST

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

Solid Quarter For Raytheon

Posted: 28 Jan 2010 10:26 AM PST

Raytheon Company (RTN) has posted strong fourth quarter adjusted earnings of $1.30 per share — better than the Zacks Consensus Estimate of $1.24 per share. The company recorded adjusted earnings of $4.89 per share for fiscal 2009, comfortably beating the Zacks Consensus EPS Estimate of $4.83. EPS growth in the reported period also benefited from fewer outstanding shares. At year-end fiscal 2009 outstanding shares were 395.7 million compared to 426.5 million at year-end fiscal … [visit site to read more]

L-3 Tops, Boosts Guidance

Posted: 28 Jan 2010 10:11 AM PST

L-3 Communications Holdings Inc. (LLL) released robust fourth quarter results. In the reported quarter, the company achieved earning per share (EPS) of $1.93, beating the Zacks Consensus Estimate of $1.86. Net sales rose 5% to a record $4.2 billion in the reported quarter from $4.0 billion in the year-ago quarter. The upside mainly came from the Command, Control, Communications, Intelligence, Surveillance and Reconnaissance (C3ISR) and Electronic Systems segments.
 
C3ISR … [visit site to read more]

Durable Goods Orders Rise A Bit

Posted: 28 Jan 2010 10:01 AM PST

At first blush, the report on New Orders for Durable Goods was a disappointment. But digging through the details, it is not as bad as it first seems.
This report is one where digging through the details is especially important, and just going with the headline total number can be highly misleading. Total new orders for durable goods rose by 0.3% in December, only partially reversing a 0.4% decline in November and a 0.1% decline in October.
The increase was also far short of the 2.0% rise that … [visit site to read more]

Getting Through The Politics

Posted: 28 Jan 2010 10:01 AM PST

In my preview for the week, I emphasized the political hurdles.  With three days gone, most of these are behind us.

Last week many pundits confused rhetoric with reality and over-reacted to President Obama’s criticism of banks.  Everyone likes to grouse about government spending and the use of “their” tax dollars.  Banks were in the bulls eye because many see them as part of the original problem.  Bankers are a natural political target, especially during bonus season, and the … [visit site to read more]

“Sell And Fold” The New “Buy And Hold”

Posted: 28 Jan 2010 10:00 AM PST

Where we are now is a matter of great debate: Are we in recovery? Or is the depression deepening?
No one knows for sure. Investors stumble around in the dark, bumping into data and knocking over lamps. It would be nice if someone would turn on the lights. But that's not how it works.
The best we can do is to try make out the shapes of the biggest pieces of furniture in the room. What else is out there? We don't know.
Broadly speaking, the period we are in is deflationary. It is a period of … [visit site to read more]

Video: USD Advances To 6-month High Vs. EUR

Posted: 28 Jan 2010 09:57 AM PST

The USD traded mixed, with EUR/USD breaking below $1.40 level. … [visit site to read more]

Time Warner Cable Beats

Posted: 28 Jan 2010 09:54 AM PST

Time Warner Cable Inc. (TWC) reported its fourth quarter 2009 financial results today. Supported by strong free cash flow in fiscal 2009, the Board of Directors of Time Warner Cable declared a quarterly dividend of 40 cents ($1.60 per annum) per share of its common stock for the first time in the company's history. The first dividend will be payable on March 15.
 
Total revenues of $4.53 billion were an improvement of 3% year over year and in line with the Zacks Consensus Estimate. … [visit site to read more]

Forex Trading: EURUSD Tests Support Area Again At 1.3956

Posted: 28 Jan 2010 09:38 AM PST

The low after the morning plunge came down to 1.3956.  THe low in NY came in at 1.3946. This area becomes the support level to watch now.  A break has the 1.3936 low soon thereafter.  Look for buyers against these … [visit site to read more]

Cardinal Health Beats & Boosts

Posted: 28 Jan 2010 09:37 AM PST

Cardinal Health, Inc. (CAH) reported second quarter fiscal 2010 earnings per share of 57 cents, surpassing the Zacks Consensus Estimate of 46 cents and the year-ago earnings of 51 cents.
 
Sales
 
Total sales in the reported quarter increased 3% year over year to $24.9 billion. Growth was witnessed across all business segments. Pharmaceutical segment revenues increased 3% year over year to $22.7 billion. Growth was primarily fueled by higher sales to existing pharmaceutical … [visit site to read more]

Effortlessly Changing Cash To Gold At The Bank Of China

Posted: 28 Jan 2010 09:25 AM PST

You may be familiar with the fact that the Chinese government has encouraged its private citizens to store a portion of their personal savings in gold, a topic we've covered here. It's a different approach from the US government which vastly prefers to promote IRAs, 401(k)s and the like, over cash-to-gold conversions. Ironically, as an American, the opposite pitch from Cash4Gold is practically inescapable.
Apparently, the Chinese have gone even further than I suspected in implementing … [visit site to read more]

Bemis Reports Q4 Growth

Posted: 28 Jan 2010 09:19 AM PST

Bemis Company, Inc. (BMS) reported third-quarter earnings of 35 cents per share, compared to 33 cents in the prior-year quarter. Earnings growth in the quarter was driven by higher sales in the Flexible Packaging segment, favorable currency translation impact and successful cost controls by the company, which were partially offset by financing impact of the pending Alcan acquisition.
 
Quarterly sales increased 4.4% year over year to $905.9 million. The second quarter acquisition of the … [visit site to read more]

IPad Strengthens Apple’s Potential

Posted: 28 Jan 2010 09:18 AM PST

Apple Inc. (AAPL) introduced the much-anticipated Apple tablet computer called the iPad, which will drive the fortunes of the company. Apple is widely recognized as a leading innovator in the consumer electronics market. While the iPhone and the iPod have been tremendously successful, driving growth at Apple, we believe the iPad has the potential to help the company sustain its recent growth momentum.
Apple appears to be riding an impressive wave of successes in its product portfolio. The … [visit site to read more]

Swiss Franc: Continuation Of The Rebound

Posted: 28 Jan 2010 09:17 AM PST

Update on supports and resistances. … [visit site to read more]

Greece, Hat In Hand, Turns To China For Cash

Posted: 28 Jan 2010 09:14 AM PST

China has quickly become the go-to country for nations in need. With a $2.4 trillion stash of foreign exchange reserves it's hard for debt-laden countries to not consider asking it for a helping hand. The US relies on China's Treasury purchases, and it's no wonder that Greece is now turning there as well.
From the Financial Times:
"China has both the need to diversify the way it invests those funds, reducing their reliance on US Treasuries, and also an interest in leveraging the … [visit site to read more]

Initial Jobless Claims Dip

Posted: 28 Jan 2010 09:05 AM PST

We got mixed news in the Initial Claims for Unemployment Insurance report. This week, initial jobless claims fell by 8,000 to 470,000, and last week's figure was revised down to 478,000 from 482,000. However, the level was well above the consensus expectation of 450,000.
The decline and the revision to the prior week were not enough to keep the four-week moving average from rising. It increased by 9,500 to 456,250. Given the weekly noise in the numbers, the four-week moving average is … [visit site to read more]

The Smart Grid Revolution: Two Tech Stocks Ready To Profit

Posted: 28 Jan 2010 09:04 AM PST

Thursday, January 28, 2010: Issue #1185
One of the key areas of focus at the Conference on Innovative Smart Grid Technologies was on how to foster seamless communication between the various devices on the Smart Grid.
That's where Fred Baker comes in. He's a Fellow at Cisco Systems (CSCO) – one of the world's leading manufacturers of Internet infrastructure technology, many of which are destined for Smart Grid applications.
Fred's knowledge of Internet communications is exhaustive … [visit site to read more]

Eli Lilly Misses By A Penny

Posted: 28 Jan 2010 09:02 AM PST

This morning, Eli Lilly (LLY) reported fourth quarter and fiscal 2009 results. The company reported earnings per share (EPS) of 83 cents, compared to a loss of $3.31 in the corresponding period last year. However, after making adjustments for certain items, Lilly's EPS came in at 91 cents, which missed the Zacks Consensus Estimate by a penny and was lower than the year ago quarter's $1.02. Revenues recorded a 14% year-over-year increase to $5.93 billion driven by an increase in volume, … [visit site to read more]

Duke Fourth Quarter FFO Declines

Posted: 28 Jan 2010 08:47 AM PST

Duke Realty Corp. (DRE), a real estate investment trust (REIT), reported FFO (fund from operations) of 33 cents and 4 cents per share in the fourth  quarter and for full fiscal 2009, respectively, compared to 70 cents and $2.51 in the comparable periods in 2008. Fund from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. Excluding non-recurring items, FFO for the reported … [visit site to read more]

AT&T Meets, Wireless Surges

Posted: 28 Jan 2010 08:39 AM PST

AT&T Inc. (T) has announced fourth-quarter 2009 results, with reported earnings per share of 51 cents matching the Zacks Consensus Estimate. AT&T had a 6% positive earnings surprise in each of the first three quarters of 2009. The fourth-quarter earnings represent an increase from 41 cents reported a year ago. The company’s shares increased 28 cents (or 1.09%) to $25.90 in pre-market trading.
Net income (attributable to AT&T) for the quarter surged 25.6% year over year to $3 … [visit site to read more]

Forex Trading: EURJPY Moves Through 125.63 Midpoint Of 2009 Low To High Range

Posted: 28 Jan 2010 08:34 AM PST

 
The EURJPY has moved through the 50% retracement of 2009 low to high range at the 125.63 level.  This will now be upside resistance for the pair now.  The stock market fall is pressuring the risk currency pairs including the EURJPY.   Yestedays low reached 125.22.  This is another level to eye.  Longer term, the low on April 28th 2009 becomes the next LT target for the pair at the 124.23 level.  Back at that time the price bounced off the 100 day … [visit site to read more]

BMC Tops Expectations

Posted: 28 Jan 2010 08:33 AM PST

BMC Software (BMC) reported third quarter 2010 earnings per share of 76 cents, exceeding the Zacks Consensus Estimate of 60 cents per share.
 
Revenue
 
Revenue of $508.0 million was up 4% from the year-ago period. Out of the three revenue segments in which the company reports, only one declined on a year-over-year basis, while the other two segments reported increases.
 
License revenue for the third quarter was $216.1 million, up 12.1% from $192.8 million reported in the … [visit site to read more]

P&G Reports Strong 2nd Quarter

Posted: 28 Jan 2010 08:24 AM PST

The Procter & Gamble Company (PG) reported results for the second quarter of fiscal 2010 with earnings of $1.10 per share, below the Zacks Consensus Estimate of $1.37 but up 22% year-over-year.
Net sales for the quarter increased 6.4% year-over-year to $21.0 billion, driven by a 5% growth in unit volume, 1% benefit from pricing and positive currency translations of 2% contributing to the top line, partially offset by a 2% negative impact from geographic mix. Successful product launches, … [visit site to read more]

Australian Dollar: Bounce

Posted: 28 Jan 2010 08:18 AM PST

Update on supports and resistances. … [visit site to read more]

Canadian Dollar: Continuation Of The Rebound

Posted: 28 Jan 2010 08:18 AM PST

Update on supports and resistances. … [visit site to read more]

Japanese Yen: The Upside Prevails

Posted: 28 Jan 2010 08:18 AM PST

Update on supports and resistances. … [visit site to read more]

British Pound: The Upside Prevails

Posted: 28 Jan 2010 08:18 AM PST

Update on supports and resistances. … [visit site to read more]

Euro: Bounce

Posted: 28 Jan 2010 08:17 AM PST

Update on supports and resistances. … [visit site to read more]

Altria Misses Zacks Estimates

Posted: 28 Jan 2010 08:17 AM PST

Altria Group Inc. (MO) has reported strong fourth quarter 2009 results, with earnings of 35 cents per share, up 6.1% compared to the year-earlier quarter. For full fiscal 2009, earnings were up 4.1% year-over-year to $1.54 per share. Altria's adjusted earnings were up 5.4% to 39 cents in the fourth quarter and up 6.1% to $1.75 for full-year 2009 compared to the prior-year periods.
Adjusted earnings, however, marginally missed the quarterly and fiscal Zacks Consensus Estimate by a penny and … [visit site to read more]

Forex Trading: USDJPY Tumbles After Holding 100 Day MA Resistance. 89.92 Is Resistance Now.

Posted: 28 Jan 2010 08:11 AM PST

As per the prior post, the USDJPY held the resistance at the 90.24 level and has been pressured through 100 hour MA support at the 89.92 level.  This level will now be upside resistance. The next target for the paris comes in at the 89.56/64 … [visit site to read more]

Currencies Sell-Off Then Rebound Overnight

Posted: 28 Jan 2010 08:09 AM PST

Yesterday, I told you how the currencies were in "lock-down" mode, awaiting the FOMC statement and the State of the Union Address.
Well, the "lock-down" mode got "unlocked" when the Fed said that they (the Fed Heads) would keep interest rates "exceptionally low" for an "extended period". That got the markets spooked a bit, as they thought this was a message from the Fed Heads saying they see something that would require interest rates to remain "exceptionally low" for an … [visit site to read more]

Symantec Rev Down, EPS Exceeds

Posted: 28 Jan 2010 08:01 AM PST

Symantec Corporation (SYMC) reported third quarter 2010 earnings per share of 40 cents, exceeding the Zacks Consensus Estimate of 33 cents.
 
Revenue 
Symantec reported quarterly GAAP net revenue of $1.55 billion, down 2% from $1.51 billion reported in the year-ago quarter. Non-GAAP revenue for the quarter was $1.551 billion, up 1% from $1.535 billion reported in the year-ago quarter. The sequential improvement in revenue may be attributed to the strong momentum in the consumer … [visit site to read more]

Forex Trading: EURGBP Moves Above The 200 Bar MA On The 5 Minute Chart.

Posted: 28 Jan 2010 07:53 AM PST

As per the prior post, the EURGBP has been the beneficiary of the S& P news on the UK banking system. The pair moved through the 100 bar MA and then the 200 bar MA on the 5 minute chart at the 0.8622 and the 0.8638 levels respectively.  The next target comes in at the 0.8658 level.  This is the 38.2% retracement level for the pair. 
Looking at the hourly chart the price hasbeen trending down from a high of 0.9027 since January 12th.  A corrective move (as long as it … [visit site to read more]

Fitch Lowers U.S. Steel Ratings

Posted: 28 Jan 2010 07:45 AM PST

According to Reuters, Fitch Ratings Agency has downgraded the ratings of U.S. Steel Corporation (X) to junk status on account of a lack of visibility about the company’s return to profitability. Fitch has lowered the steelmaker’s issuer default rating and senior unsecured notes rating to "BB+” from "BBB-”, one step below the investment grade. Fitch has also lowered U.S. Steel’s senior secured credit facility to "BBB-” from "BBB”. Fitch considers debt rated "BB+” to be more prone to … [visit site to read more]

ETFs Under The Microscope: PWC

Posted: 28 Jan 2010 07:44 AM PST

Over the last several years, investors have embraced the benefits of the exchange-traded structure, transforming ETFs from a closet industry to a mainstream investment option that threatens to continually grab market share from traditional actively-managed mutual funds. As the popularity of ETFs has surged, so too has the number of funds available to investors. While the majority of assets remain in ETFs linked to well known stock and bond indexes, ongoing innovation in the industry has … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: F, MMM, PG

Posted: 28 Jan 2010 07:37 AM PST

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

Varian Beats, Raises Guidance

Posted: 28 Jan 2010 07:30 AM PST

Varian Medical Systems (VAR) has reported strong first quarter fiscal 2010 results. The company reported revenues of $540.94 million, up 6.3% from the corresponding period last year. Varian's first quarter earnings per share (EPS) came in at 63 cents, which surpassed the Zacks Consensus Estimate and the year-ago quarter's EPS by 7 cents. Earnings estimates were trending up recently, with two of the 10 analysts covering the stock raising their quarterly estimates in the last 30 days. In … [visit site to read more]

Will Fed’s “Recovery” Bolsters Dollar

Posted: 28 Jan 2010 07:17 AM PST

Fundamentals
The Dollar Index has seen very quiet sessions the past few days, following the directionless days in the equity markets. The currency did get a boost from the Fed yesterday, when the central bank used the word “recovery” for the first time. This suggests that both the Fed and the US government may take steps to slowly wean the economy off of the stimulus packages. This could result in a decrease in liquidity, decreasing the money supply. The long-term direction of the Dollar may … [visit site to read more]

Methanex Earnings Improve

Posted: 28 Jan 2010 07:15 AM PST

Methanex Corporation (MEOH), the world's largest supplier of methanol, reported a fourth quarter net income of $25.7 million, or 28 cents per share, in contrast to a net loss of $3.9 million or 4 cents per share in the year-ago period. Earnings were, however, slightly below the Zacks Consensus Estimate of 29 cents. For full year 2009, Methanex posted a net income of a modest $0.7 million or 1 cent per share, significantly down from $168.8 million or $1.78 in 2008. 

Quarterly revenues … [visit site to read more]

Teradyne Beats, Guides Stronger

Posted: 28 Jan 2010 07:00 AM PST

Teradyne Inc. (TER) reported fourth quarter earnings that beat the Zacks Consensus estimate by 5 cents. The company has a history of positive surprises, and the net negative surprise of 2.12% in the four preceding quarters is skewed by the Dec 2008 quarter, when it was severely hit by the recession. Moreover, estimates are on an uptrend, indicating a progressively improving performance over the past few quarters. The Zacks Consensus estimate for the Dec quarter was 15 cents, representing an … [visit site to read more]

WisdomTree To Hedge Yen Exposure In Japan Total Dividend Fund (DXJ)

Posted: 28 Jan 2010 06:51 AM PST

WisdomTree, the ETF issuer specializing in dividend and earnings weighted funds, announced a change to the Japan Total Dividend Fund (DXJ) beginning April 1. DXJ will still follow the same equities and maintain an expense ratio of 0.48% but will also seek to neutralize the affects of the volatile currency market and limit the impact of the fluctuations of the Japanese yen against the dollar. The fund will change its name to the WisdomTree Japan Hedged Equity Fund.
The main purpose of the move … [visit site to read more]

Harris Tops, Lifts Guidance

Posted: 28 Jan 2010 06:45 AM PST

Harris Corp (HRS) announced better-than-expected results for the second quarter of fiscal 2010 with adjusted (excluding acquisition-related costs) earnings per share of $1.08, well above the Zacks Consensus Estimate of 94 cents, boosted by strong demand for its advanced tactical radios. The company's shares were up $1.20 (or 2.6%) at $48 in after market trade on NYSE. 

Reported net income for the quarter was $139.5 million or $1.06 per share compared to $140.6 million or $1.06 … [visit site to read more]

Morning News Notes: 1/28/2010

Posted: 28 Jan 2010 06:44 AM PST

The “Morning News Notes” as prepared by TL…earnings highlights, State of the Union, mortgages, Greece, and S&P500 technicals.

Just click on the link or the coffee mug below.

“Morning News Notes”: January 28, … [visit site to read more]

Forex Trading: USDJPY Rebounds Off Support. Watching Intraday Resistance Levels

Posted: 28 Jan 2010 06:33 AM PST

The 100 and  200 bar MA comes in at 90.22 and 90.26 on the 5 minute chart.  The 100 day MA comes in at 90.24 (CLICK HERE TO SEE PRIOR POST).  These levels should attract sellers, with stops on a move above the 90.36 level for the pair (see chart above).   The stock market is opening up but marginally.  There are some good earnings reports which have helped a bit.  This has offset the weaker economic data released earlier.  If the … [visit site to read more]

Ball Posts Higher Profits

Posted: 28 Jan 2010 06:32 AM PST

Ball Corporation (BLL) reported fourth quarter earnings of 84 cents per share, beating the Zacks Consensus Estimate of 71 cents. The company posted year over year earnings growth of 50% for the quarter. Strong earnings growth in the quarter was driven by higher sales as well as an improved operating performance.
 
Net sales in the quarter increased 7.6% to $1,864.4 million from $1,732.8 million a year ago. Lower sales in the Plastic Packaging, Americas and Metal Food and the Aerospace … [visit site to read more]

Stock Market News Briefs: 3M Company, AT&T Inc., Bristol-Myers Squibb Company, Ford Motor Credit Company, Procter & Gamble Company (The)

Posted: 28 Jan 2010 06:28 AM PST

 Ford (F) reported record fourth quarter earnings of 43 cents a share, up from Zacks estimates of 24 cents a share on revenues of $35.4 billion, which bettered Zacks estimates of $30.95 billion. The firm noted 2010 profitability likely

 Procter & Gamble (PG) reported better-than-anticipated fiscal second quarter earnings of $1.49 a share, which was ahead of Zacks estimates of $1.37, on inline revenues of $21 billion

 AT&T (T) posted inline earnings and revenues … [visit site to read more]

Motorola Beats But Sales Down

Posted: 28 Jan 2010 06:27 AM PST

Motorola Inc. (MOT) today declared financial results for the fourth quarter 2009. Quarterly net income from continuing operations was $142 million or 6 cents per share, compared to a net loss of $3.66 million or $1.61 per share in the prior-year quarter.

Fourth quarter adjusted (excluding special items) EPS was 9 cents, which topped the Zacks Consensus Estimate of 8 cents. Improvement in net income was primarily due to the huge reduction in operating expenditure. Quarterly total revenue was … [visit site to read more]

Citrix System Outperforms

Posted: 28 Jan 2010 06:17 AM PST

Yesterday, after market close, Citrix System Inc (CTXS) declared financial results for the fourth quarter of 2009. GAAP net income in the reported quarter was $88.2 million or 47 cents per share compared to a net income of $60.1 million or 33 cents per share in the prior-year quarter. However, adjusted (excluding intangible asset amortization and restructuring charges) EPS in the same quarter was 59 cents, significantly above the Zacks Consensus Estimate of 40 cents.
 
Quarterly net … [visit site to read more]

Qualcomm Meets, Guidance Down

Posted: 28 Jan 2010 06:01 AM PST

Yesterday, after market close, Qualcomm Inc. (QCOM) reported financial results for its first quarter of fiscal 2010. Although the quarterly results broadly meet our estimates, the company has reduced its guidance for full fiscal 2010.
Management cited ever increasing competition, slower recovery of high-end mobile phones in the developed markets, particularly in Europe and Japan; together with relative strength of the low-end mobile phones in the emerging markets as the primary reasons for … [visit site to read more]

Alert: Shanghai And US Dollar Index Threatening 200-Day Averages

Posted: 28 Jan 2010 06:01 AM PST

I mentioned in a post two days ago that all the major stock market indices were still trading above the key 200-day moving averages - an indicator of the primary trend. The Shanghai Composite Index (2,994 this morning) has since fallen to within a hair’s breadth of the 200-day line (2,989).
Also, the US Dollar Index (78.77) is right up against its 200 DMA (78.59).
These are important levels and one should keep a close eye on them to see where major breaks materialize.

Source: … [visit site to read more]

Forex Trading: USDCAD Watching 100 Hour MA Now, After 100 Day MA Was Tested Below And Held

Posted: 28 Jan 2010 05:55 AM PST

 
The 100 day MA in the USDCAD was tested this morning at 1.0565 (low extended to 1.0554 but bounced). The price is now up testing the 100 hour MA at 1.0597.  Watch this level and look for initial sellers against the level.  The pair will need to move back below 1.0585 to solicit another test of the 1.0565 level.  However, a move above should lead to further upside move in the pair.  The 1.6011 level is a key level to get through on a break back higher.  … [visit site to read more]

Becton Surpasses Zacks Estimate

Posted: 28 Jan 2010 05:42 AM PST

Becton, Dickinson and Company (BDX) reported first quarter fiscal 2010 earnings per share of $1.30, surpassing the Zacks Consensus Estimate of $1.20 and the year-ago earnings of $1.25.
 
Total Revenues
 
Total revenues in the first quarter increased 12% year over year to $1.917 billion. Excluding the foreign currency translation (FX), total revenues increased 9% year over year. Growth was registered across all major business segments.
 
BD Medical revenues increased 16% year … [visit site to read more]

Oracle Takes Over Sun

Posted: 28 Jan 2010 05:30 AM PST

The database software giant Oracle Corp. (ORCL) announced the completion of its pending acquisition of Sun Microsystems Inc. (JAVA), a provider of enterprise computing systems, software and services, for $7.4 billion ($9.50 a share) or $5.6 billion net of Sun’s cash and debt. Sun has been de-listed from the Nasdaq. Sun's CEO Jonathan Schwartz is expected to resign as the transition moves forward.
 
The acquisition has been on hold for nine months pending the European regulator's … [visit site to read more]

Forex Trading: GBPUSD Watching Support At Intraday MA Levels At 1.6232/34

Posted: 28 Jan 2010 05:25 AM PST

The GBPUSD has been tracking the 100 bar MA on the 5 minute chart currently at the 1.6232 level.  At the ares is also the 200 hour MA which is currently at the 1.6234 level.  This will be key support for the pair today.  The bias remains up for the pair above these two key moving average levels with 1.6282 and 1.6311 upside … [visit site to read more]

Toyota Suspends Sales For Recall

Posted: 28 Jan 2010 05:20 AM PST

Toyota Motors (TM) has decided to suspend sales of 8 models involved in another round of recall of 2.3 million vehicles to correct sticking accelerator pedals on specific Toyota Division models, announced on January 21, 2010.

Toyota has noticed sticking accelerator pedal mechanisms in certain vehicles without the presence of floor mats. The models affected in the sales suspension were RAV4 crossover (2009-2010), Corolla (2009-2010), Matrix (2009-2010), Avalon (2005-2010), Camry (2007-2010), … [visit site to read more]

Stock Picks For 28 January

Posted: 28 Jan 2010 05:11 AM PST

( click to enlarge )

(GIGM) has lots of value, however the weak market is pushing the stock down. It has made a new 52 weeks low on Wednesday, but a last-minute rally helped it close at $2.78. The technical daily chart shows possible rally as K line is back above D line. Volume is shrinking which usually indicates the stock is going to make a move, I suspect it will make a move to the upside.

( click to enlarge )

Now that K line is on top of D line again MOT should enjoy a fresh new … [visit site to read more]

Why The Volcker Plan Won’t Go Far Enough

Posted: 28 Jan 2010 05:01 AM PST

I don’t often agree with the Obama administration. So I have to say that I was surprised when I heard it had a plan to reduce the risk of another banking crisis. It wants to prohibit banks that are protected by deposit insurance from engaging in risky, proprietary trading, and it wants to break up some of the very largest banks.

I made both those recommendations in my forthcoming book “Alchemists of Loss” (Wiley 2010). The book, written jointly with Kevin Dowd, a British finance professor, … [visit site to read more]

One Of The Greatest Secrets To Making Money In Low-Priced Stocks

Posted: 28 Jan 2010 05:00 AM PST

By Frank Curzio

I have an odd “watch list” to find great opportunities in stocks under $10.

It’s my favorite stocks trading over $10… and under $15.

Keeping this list handy is one of the best secrets to making money in low-priced stocks.

Why do I watch $15 stocks when my mandate is to analyze stocks under $10? Consider the story of my most recent buy recommendation, small cap Take-Two Interactive…

Take-Two Interactive owns one of the most valuable entertainment franchises ever created: … [visit site to read more]

Platinum ETFs Destined To Shine

Posted: 28 Jan 2010 03:50 AM PST

The recent launch of a platinum exchange traded fund (ETF) by ETF Securities has been the answer to many investors’ prayers of diversifying their precious metal holdings.

Last year, platinum rose a whopping 57% as many investors rushed to precious metals as many feared inflation and a falling dollar, while demand was bolstered by growth in international economies. As for the future, there are plenty of reasons to suggest that platinum will continue its uptrend.

First, and foremost, … [visit site to read more]

Gold, Silver, Natural Gas And Crude Oil Could Bounce, But Selling Isn’t Over

Posted: 28 Jan 2010 03:45 AM PST

The stock indexes have been trading very choppy making it difficult for swing/trend traders. It’s during times like this when seasoned traders rise above the herd of average traders.

If you only trade one strategy like swing trading or trend trading then you are likely finding it difficult to make money right now. On the other hand, day traders are having a blast right now as they take advantage of the powerful intraday rallies and sell offs.

I personally like swing trading but during … [visit site to read more]

Current S&P 500 Pullback Is Fourth Largest Since March 2009

Posted: 28 Jan 2010 03:31 AM PST

With the futures on a bullish trajectory following President Obama’s State of the Union speech, this seems like an opportune time to reflect on the 67 point (5.9%) fall in the S&P 500 index over the course of the last six days.

The table below - which I have been updating periodically over the course of the last five months - establishes the current pullback as the fourth most severe in percentage terms of the 11 pullbacks of 3.0% or more since stocks turned bullish in March 2009. … [visit site to read more]

Mutual Funds: Top Technology Equity Funds

Posted: 27 Jan 2010 10:07 PM PST

Today we are featuring top-performing "Technology” equity mutual funds, which invest most of their assets in equity securities of companies that develop or benefit from technology. This sector continues to be a growth sector that outperforms the market.
5 Great Technology Picks
Dreyfus Technology Growth A (DTGRX) was incepted in October 1997. This technology fund seeks long-term capital growth.
At least 80% of this technology fund's assets are invested in growth companies of any size that … [visit site to read more]

Analyst Interviews: Pharma & Biotech Stock Review

Posted: 27 Jan 2010 09:00 PM PST

The pharmaceutical industry has witnessed major changes over the past few quarters, with performance being affected by factors like sluggish prescription trends, intensifying generic competition and limited phase III catalysts. The next five years are expected to reflect a significant imbalance between new product introductions and patent losses.
According to IMS Health (RX), this is the main reason global pharmaceutical market growth will be restricted to the mid-single digits through 2013. … [visit site to read more]

Stock Buy: DeVry Inc.

Posted: 27 Jan 2010 09:00 PM PST

DeVry Inc. (DV) recently reported a strong fiscal second quarter. Earnings of $1.00 per share topped the previous year’s 59 cents and exceeded the Zacks Consensus Estimate by 20.5%.
Company Description
DeVry is the holding company for DeVry University, Advanced Academics, Ross University, Chamberlain College of Nursing, Apollo College, Western Career College, Becker Professional Review and Fanor. The education provider prepares students for careers in technology, business and management, … [visit site to read more]

Stock Buy: Oxford Industries, Inc.

Posted: 27 Jan 2010 09:00 PM PST

Oxford Industries, Inc. (OXM) has put together a nice earnings surprise streak over the last 4 quarters despite the tough retail environment. It has surprised on average of 67% during that period. OXM is trading with a forward P/E of 14.6.
Company Description
Oxford Industries is an apparel manufacturer which operates a large portfolio of owned and licensed brands such as Tommy Bahama, Ben Sherman, Billy London, Ely and Oxford Golf. It also operates retail stores and Internet sites under … [visit site to read more]

Stock Buy: Xerox Corp.

Posted: 27 Jan 2010 09:00 PM PST

Xerox Corp. (XRX) pleased investors with its earnings release last week. Covering analysts continue to raise estimates making shares of XRX an even better value.
Company Description
Xerox Corp is well known for its copy, printer and multi-functional machines as well as software solutions to improve business productivity. The company also sells paper and network integration products.
Another Surprise
Xerox just announced quarterly results on Jan 21 that showed earnings per shares of 25 cents, … [visit site to read more]

Stock Buy: Plexus Corp.

Posted: 27 Jan 2010 09:00 PM PST

Plexus Corp. (PLXS) just hit a new 52-week high above $35 after the company reported better than expected first-quarter results on Jan 20.
Company Description
Plexus, Corp., with its subsidiaries, provides electronic manufacturing services to original equipment manufacturers and other technology companies both domestically and internationally. The company was founded in 1979 and has a market cap of $1.37 billion.
Fourth-Quarter Results
Sales were up 9% from last year to $430 million. Earnings … [visit site to read more]

Bear Of The Day: Progress Energy (PGN)

Posted: 27 Jan 2010 09:00 PM PST

Progress Energy (PGN) is one of the nation’s larger pure-play electricity utilities with solid rate base growth opportunity in the long-term. Given the disappointing outcome of the Florida rate case and a lowered 2010 guidance, we expect the stock to remain under pressure in the near term.
Furthermore, the weak economic conditions in Florida, which have slowed customer growth and reduced demand for electricity, remain worrisome issues. Thus, we expect 2010 to be a challenging year for … [visit site to read more]

Bull Of The Day: Limited Brands (LTD)

Posted: 27 Jan 2010 09:00 PM PST

Limited Brands’ (LTD) sustained focus on cost containment, inventory management and merchandise initiatives has kept it afloat in a difficult consumer environment.
The company’s Bath & Body Works segment regained its lost momentum in third-quarter 2009, primarily driven by a rise in store transactions, enhancement in the direct channel business and growth from new stores. However, the Victoria’s Secret segment continues to see pressure, registering falling comps across its La Senza and … [visit site to read more]

Singapore Stock Market: Our Focus For Today Is On Property, Commodity & Financial Sector – Short Selling

Posted: 27 Jan 2010 06:09 PM PST

 
Chart View: (Goola Warden by the edge)
The market is becoming increasingly "oversold" based on short-term oscillators. For the STI, the 21-day RSI is at 34% and the 14-day RSI at 24%. These are at their lowest levels since March last year. Support appears in the 2,700 area which was tested several times before the index eventually broke out. On the flip side, the STI is below its still rising 100-day moving average now at 2,748 and the 200-day moving average at 2,539. With support … [visit site to read more]
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