Daily Markets - Financial News And Opinions

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• Yen Struggles To Find Direction
• Forex Trading: EURUSD Tests 1.3517 Area (high Reaches 1.3512) And Moves Lower
• Capella Education To Outperform
• ProAssurance Tops Zacks View
• Stock Market News Briefs: Coca-Cola Company (The), Coca-Cola Enterprises, Inc., Goldman Sachs Group, Inc. (The), H.J. Heinz Company, Kohl’s Corporation, Newmont Mining Corporation (Holding Company), Nike, Inc., Foster Wheeler Ltd.
• Express Scripts Tops & Guides Up
• Morning News Notes: 2/25/2010
• Forex Trading: GBPUSD Falls Below The Key 1.5272 Level And Tests The Next Support Level At 1.5243
• Japanese Yen: Caution
• British Pound: The Upside Prevails
• Euro: The Upside Prevails
• DT Hit By Impairment Charges
• HGSI Pipeline Bigger Than Earnings
• Legg Mason Files For Actively Managed ETFs
• Transocean Results Disappoint
• Forex Trading: EURUSD Watching The 1.3517 Area Above. Support At 1.3482
• Limited Surpasses Expectations
• Freddie Mac’s Net Loss Widens
• Forex Trading: EURUSD Awaits Durable Goods And Initial Claims
• US Non-Farm Payrolls: Before And After Recessions
• Forex Trading: GBPUSD Tests 50% Retracement Support And Bounces
• Video: Carnival Cruise Lines Raise Prices
• Mutual Funds: Top 5 Utilities Funds
• Stock Buy: Amphenol
• Stock Buy: Solutia Inc.
• Bull Of The Day: Autoliv, Inc. (ALV)
• Stock Buy: Toro Co.
• Stock Buy: Veeco Instruments Inc.
• Bear Of The Day: St. Mary Land & Exploration (SM)

Yen Struggles To Find Direction Posted: 25 Feb 2010 07:17 AM PST Fundamentals Yen futures have mounted a comeback the past few sessions, as traders cover Euro/Yen carry trades due to the financial turmoil in the Eurozone. The Japanese currency could very well have plummeted if the crisis in Greece had not happened. The Yen could benefit from the much softer rhetoric from Fed Chairman Ben Bernanke during his Congressional testimony. The central bank head stated that the US economy is in a “nascent” recovery, which may require low interest rates for an … [visit site to read more]

Forex Trading: EURUSD Tests 1.3517 Area (high Reaches 1.3512) And Moves Lower Posted: 25 Feb 2010 07:16 AM PST The support now comes  ina the 1.3490 level which is the 200 bar MA on the 5 minute chart (1.3487 is the 100 bar MA).  The 100 bar is not far behind and should also be support for the pair now.  A break below the 1.3483 would not be welcomed by the short term day … [visit site to read more]

Capella Education To Outperform Posted: 25 Feb 2010 07:00 AM PST We recently upgraded our recommendation on Capella Education Company (NASDAQ:CPLA) to Outperform from Neutral with a target price of $89.00.   Capella's strong focus towards working adults and exclusive online education has enabled it to establish a healthy position in the for-profit post-secondary education industry. The company's sustained effort to expand educational programs helps it to boost enrollments, and in turn, the top-line.   The company provides degree programs in … [visit site to read more]

ProAssurance Tops Zacks View Posted: 25 Feb 2010 06:45 AM PST ProAssurance Corporation's (NYSE:PRA) fourth quarter operating earnings of $2.42 per share were substantially ahead of the Zacks Consensus Estimate of $1.29. This also compares favorably with the earnings of $2.36 in the prior-year quarter.   Earnings for the quarter were benefited by a 34.8% year-over-year growth in revenues, primarily due to recent acquisitions. However, the better-than-expected top-line was partly offset by a 141.0% increase in total expenses.   Net income in the … [visit site to read more]

Stock Market News Briefs: Coca-Cola Company (The), Coca-Cola Enterprises, Inc., Goldman Sachs Group, Inc. (The), H.J. Heinz Company, Kohl’s Corporation, Newmont Mining Corporation (Holding Company), Nike, Inc., Foster Wheeler Ltd. Posted: 25 Feb 2010 06:42 AM PST  HJ Heinz (NYSE:HNZ) beat Zacks estimates with fiscal third quarter results of 83 cents, ahead of Zacks estimates of 80 cents, on inline revenues of $2.68 billion  Newmont Mining (NYSE:NEM) sharply beat estimates with fourth quarter results of $1.13, well ahead of Zacks projections of 76 cents and last year’s 26 cents. Revenues also topped projections, at $2.5 billion, versus Zacks estimates of $1.93 billion  Kohls (NYSE:KSS) beat Zacks estimates with fourth quarter earnings of … [visit site to read more]

Express Scripts Tops & Guides Up Posted: 25 Feb 2010 06:30 AM PST Express Scripts Inc. (NASDAQ:ESRX) announced better-than-expected results with fourth-quarter earnings of 97 cents per share, 7 cents above the Zacks Consensus Estimate. Earnings increased 14.1% from the year-ago period. Full year earnings were $3.58 per share, 12 cents above the Zacks Consensus Estimate and well above the year ago earnings of $3.18.   Fourth quarter revenues increased a whopping 49% to $8.2 billion. Full year revenues increased 12.6% to $24.7 billion. We believe that the … [visit site to read more]

Morning News Notes: 2/25/2010 Posted: 25 Feb 2010 06:25 AM PST The “Morning News Notes” as prepared by TL…American Trucking Association, health care, and Bernanke. Just click on the link or the coffee mug below. “Morning News Notes”: February 25, … [visit site to read more]

Forex Trading: GBPUSD Falls Below The Key 1.5272 Level And Tests The Next Support Level At 1.5243 Posted: 25 Feb 2010 06:23 AM PST As per the prior post (CLICK HERE), the 1.5272 level gave way on the economic news at 8:30 and tested the next target level at the 1.5243 level (old low from May 2009 when the price was last at this level - see chart below).  The price is rebounding off the low but continues to have resistance at the 1.5293 trendline and more importantly the 100 bar MA on the 5 minute chart below. That level comes in at the 1.5304 currently (and falling).  The level has been tested but not breached … [visit site to read more]

Japanese Yen: Caution Posted: 25 Feb 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

British Pound: The Upside Prevails Posted: 25 Feb 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

Euro: The Upside Prevails Posted: 25 Feb 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

DT Hit By Impairment Charges Posted: 25 Feb 2010 06:15 AM PST German telecom behemoth Deutsche Telekom (NYSE:DT) has announced fourth-quarter results with adjusted (excluding impairment charges) earnings per ADS of 31 cents missing the Zacks Consensus Estimate of 33 cents.   Adjusted net profit of €905 million (US$1.3 billion) represents a 5% annualized improvement. However, on a reported basis, the carrier registered a net loss of €3 million (US$4 million) in the fourth quarter as it was hit by impairment charges of €500 million (US$738 million) … [visit site to read more]

HGSI Pipeline Bigger Than Earnings Posted: 25 Feb 2010 06:05 AM PST Human Genome Sciences, Inc. (NASDAQ:HGSI) is expected to report fourth quarter as well as fiscal 2009 results shortly. We expect that the company will report a loss of 10 cents per share for the fourth quarter of 2009 and 4 cents for fiscal 2009. However, we believe that the earnings report is basically a non-event for the company and will have little or no impact on the stock price. We feel that investors are more concerned about the progress of the company's pipeline candidates, especially … [visit site to read more]

Legg Mason Files For Actively Managed ETFs Posted: 25 Feb 2010 06:01 AM PST As yet another major player from the mutual fund industry files for Active ETFs, it seems the big asset management firms have now seen enough to know that they might well be missing the boat if they don’t hop on now. Legg Mason (NYSE:LM), with $679 billion in assets under management as at Jan 31, 2010, filed with SEC on Feb 23rd to launch an initial “series” of actively-managed ETFs. The “initial fund” is intended to invest in equities of US and non-US companies as well as ADRs. The … [visit site to read more]

Transocean Results Disappoint Posted: 25 Feb 2010 06:00 AM PST Transocean, Inc. (NYSE:RIG) – the world's largest offshore driller – reported weak fourth quarter results, pulled down by lower rig utilization on the back of waning demand. Earnings per share, excluding one-time items, came in at $2.21, well below the Zacks Consensus Estimate of $2.55 and the year-ago level of $2.35.   Revenue   Total quarterly revenues of $2.7 billion missed the Zacks Consensus Estimate by 3.6%. It was down 16.4% year-over-year and 3.2% sequentially, mainly … [visit site to read more]

Forex Trading: EURUSD Watching The 1.3517 Area Above. Support At 1.3482 Posted: 25 Feb 2010 05:46 AM PST The EURUSD has rebounded after the data selloff,  as profit takers kept the price supported against the lows at 1.3451.  The price has moved up to test the 200 bar MA on the 5 minute chart and so far stalled at the area (green line in chart above0.  Another push higher should test the resistance at the 1.3517 area.  This level should find some resistance followed by better resistance at the 1.3531/39 area. Support is now at 1.3482 which is the blue line.  (the 1.3483 … [visit site to read more]

Limited Surpasses Expectations Posted: 25 Feb 2010 05:45 AM PST Limited Brands Inc. (NYSE:LTD), a specialty retailer of women's intimate and other apparel, beauty and personal care products, recently posted stronger-than-expected fourth-quarter 2009 results sending shares up 4% or 85 cents to $22.39 in after-market trading on Wednesday.   The company's sustained focus on cost containment, inventory management, and merchandise initiatives has kept it afloat in a difficult consumer environment.   Earnings versus Zacks Consensus   The … [visit site to read more]

Freddie Mac’s Net Loss Widens Posted: 25 Feb 2010 05:30 AM PST Freddie Mac's (NYSE:FRE) fourth quarter net loss came in at $2.39 per share, substantially higher than the Zacks Consensus Estimate of a loss of 80 cents. This also compares unfavorably with a net loss of $2.06 in the prior quarter.   Results for the quarter exclude the preferred dividend of $1.3 million paid to the U.S. Treasury on the senior preferred stock. With some early signs of stabilization in the housing market, Freddie Mac expects low mortgage rates, relatively high affordability … [visit site to read more]

Forex Trading: EURUSD Awaits Durable Goods And Initial Claims Posted: 25 Feb 2010 05:21 AM PST The Durable Goods is expected to show a gains of 1.5% vs a revised 1.0% in December. The Ex Transportation component is expected to show a gain of 1.0% vs 1.4% last month.  The Initial Claims are expected to decline to 460K from 473K but this would still be higher than the low reached in December. The trend in Initial Claims has stalled at the 430 to 480 range.  The EURUSD is back down below the key 61.8% retracement level of the 2009 trading range.  That level comes in … [visit site to read more]

US Non-Farm Payrolls: Before And After Recessions Posted: 25 Feb 2010 05:01 AM PST I was pleased to see that Sunday’s Chart of the Week: A Broader Look at the U.S. Recovery generated a good deal of interest and discussion. While I have always been a card carrying Quadropheniac, truth be told the only slice of the economy anyone is obsessing about these days is jobs. So with the weekly jobless claims numbers due out tomorrow and the February nonfarm payrolls slated for a week from Friday, this seems like an opportune time to revisit the employment situation. Since … [visit site to read more]

Forex Trading: GBPUSD Tests 50% Retracement Support And Bounces Posted: 25 Feb 2010 04:56 AM PST The GBPUSD tested the 50% retracement target at the 1.5282 level and bounced (low reached 1.5270).  The holding of the target gives profit takers a level to lean against. It gives bottom fishers a level to lean against.  As a result, it will continue to be a level to watch going forward today. Looking at the shorter term 5 minute chart the price moved briefly above the 100 bar MA (blue line) in the chart below early in the Far East session. The pair could not move above the 200 … [visit site to read more]

Video: Carnival Cruise Lines Raise Prices Posted: 25 Feb 2010 06:00 AM PST Carnival Cruise Lines said it will raise prices by up to 5 percent for its summer bookings. … [visit site to read more]

Mutual Funds: Top 5 Utilities Funds Posted: 24 Feb 2010 10:06 PM PST Utilities funds have been traditionally viewed as defensive investments which protect investments during difficult market conditions. Since the demand for these services remains constant over market cycles, such funds are ideal for those seeking a steady flow of current income through consistent dividend yields. In recent years many funds in this category have increased their exposure to emerging markets and have added unregulated utilities companies in their portfolio. This has led to higher … [visit site to read more]

Stock Buy: Amphenol Posted: 24 Feb 2010 09:00 PM PST Amphenol (NYSE:APH) is another way to play the growth in the use of mobile devices. Company Description Amphenol is one of the largest manufacturers of interconnect products in the world. The company designs, manufactures and markets electrical, electronic and fiber optic connectors, coaxial and flat-ribbon cable, and interconnect systems. The primary end markets for the company’s products are communications and information processing markets. Growth Driven by Mobile Devices Amphenol provides a … [visit site to read more]

Stock Buy: Solutia Inc. Posted: 24 Feb 2010 09:00 PM PST Solutia Inc. (NYSE:SOA) has surprised on estimates 3 out of the last 4 quarters by an average of 8.34%. SOA is trading with a forward P/E of 12.75. Company Description Solutia manufactures specialty chemicals including Saflex, an interlayer for laminated glass, CPFilms aftermarket window films, the Flexsys family of chemicals for the rubber industry, and Skydrol aviation hydraulic fluid. Solutia operates in 50 locations outside of the United States and derives 75% of its sales outside of the … [visit site to read more]

Bull Of The Day: Autoliv, Inc. (ALV) Posted: 24 Feb 2010 09:00 PM PST Autoliv (NYSE:ALV) has maintained a stable market share globally, supported by the increasing importance of vehicle safety needs. Furthermore, the company has aimed to tap huge market potential by expanding into low-cost countries and making meaningful acquisitions. It is also known in the industry for its innovative product launches. In the most recent quarter, the company’s profit significantly improved from the year-ago level and beat the Zacks Consensus Estimate. We, therefore, continue with … [visit site to read more]

Stock Buy: Toro Co. Posted: 24 Feb 2010 09:00 PM PST Toro Co. (NYSE:TTC) recently hit a new 52-week high after reporting better than expected Q1 results on Feb 18. Company Description Toro Co. engages in the design and manufacturing of turf maintenance equipment and irrigation systems worldwide. The company was founded in 1914 and has a market cap of $1.49 billion. First-Quarter Results Sales for the period were down a bit from last year at $331 million, but earnings came in better than expected at 21 cents, 52% ahead of the Zacks Consensus … [visit site to read more]

Stock Buy: Veeco Instruments Inc. Posted: 24 Feb 2010 09:00 PM PST Veeco Instruments (NASDAQ:VECO) reported record level revenues and released bullish guidance, sending earnings estimates higher. Company Description Veeco makes instruments for manufactures of solar, data storage, semiconductors, HB_LED, scientific research and industrial products. Factories are located across the U.S. it has offices domestically, as well as in Europe and Asia. Record-Setting Revenues On Feb 8 Veeco reported quarterly results that showed record revenues of $146 million, up from $110 … [visit site to read more]

Bear Of The Day: St. Mary Land & Exploration (SM) Posted: 24 Feb 2010 09:00 PM PST We are initiating coverage on St. Mary Land & Exploration (NYSE:SM) with an Underperform recommendation and a target price of $30. Over the last few years, the company has been building a significant position in emerging shale plays in order to reposition it as more of a resource play focused company. To accelerate this initiative, it has recently sold its non-core Rocky Mountain properties. With an increasing spending on exploration and drilling program, the company is expecting 20% … [visit site to read more]

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