Feb 19, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

China Selling US Treasuries - Where Are They Sinking All That Money Into?

Posted: 19 Feb 2010 09:55 AM PST

In the monthly U.S. Treasury report this week, it was announced that China had sold $34.2 billion of Treasuries in December (or allowed short-term ones to run off), making Japan once again the largest holder of U.S. Treasuries.

The battle between China and Japan for the title of largest holder of this dubious asset is not very interesting. What’s more interesting is the question of where China is instead opting to invest. After all, $34.2 billion is a fair chunk of change, and China’s … [visit site to read more]

Australian Dollar: The Bias Remains Bullish

Posted: 19 Feb 2010 09:18 AM PST

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

Canadian Dollar: Bullish Bias Above 102

Posted: 19 Feb 2010 09:18 AM PST

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

PowerShares Launches Closed End Fund ETF (PCEF)

Posted: 19 Feb 2010 09:12 AM PST

PowerShares, the Chicago-based ETF issuer behind many enhanced index ETF products, announced today the launch of the industry's first ETF portfolio of closed end funds. The PowerShares CEF Income Composite Portfolio (PCEF) is linked to the S-Network Composite Closed-End Fund Index, a rules-based index designed to track the overall performance of a global universe of U.S.-listed closed-end funds. The index currently includes 71 closed-end funds, including 27 that invest primarily in taxable … [visit site to read more]

Pool Corp. Misses View

Posted: 19 Feb 2010 09:01 AM PST

Pool Corp. (NASDAQ:POOL) reported a fourth quarter loss of 27 cents per share, 3 cents below the Zacks Consensus Estimate of a loss of 24 cents. However, the company has narrowed its loss from the prior-year quarter's loss of 30 cents. Results reflected a slowdown in construction activity and adverse weather conditions. 

Including the impact of non-cash charges related to facility closures, the company reported a loss of $13.6 million or 28 cents per share, compared to a loss of $14.8 … [visit site to read more]

Fed Raises Discount Rate

Posted: 19 Feb 2010 08:48 AM PST

Front and center this morning… I'm sure you all heard that the Fed, in a surprise move, raised their discount rate 1/4 point to 0.75%… This really put the currency guys in a tizzy, and they began to earnestly buy dollars the rest of the day… They went at it hard, and didn't stop until the euro (EUR) was sitting around 1.3475.
Now, I hear some of you saying, "What's this discount rate, Chuck?" Well… It's not the Fed Funds Rate that everyone watches. It's the rate that the … [visit site to read more]

Public Service Lags Consensus

Posted: 19 Feb 2010 08:46 AM PST

Public Service Enterprise Group Inc. (NYSE:PEG) reported operating EPS of $3.12 in fiscal 2009 as compared to $3.03 in fiscal 2008 and Zacks Consensus EPS estimate of $3.18. In the fourth quarter however the company reported identical EPS of 62 cents compared to the year-ago quarter. This fell short by 16 cents as compared to the Zacks Consensus EPS estimate of 78 cents. 

Revenue nose-dived 6.9% in fiscal 2009 to $12.4 billion from $13.3 billion in fiscal 2008. The downward trend was … [visit site to read more]

Forex Trading: USDCAD Moves Back Below The 100 Hour MA At 1.0463

Posted: 19 Feb 2010 08:37 AM PST

The USDCAD has moved back below the 100 hour MA at the 1.0463 level.  This is bearish for the pair as the price tested the 200 hour MA and the 100 day MA earlier and now has broken the downside support level at the 100 hour MA (breaking outside the Goal Post).  The level now becomes upside resistance and should find sellers against the level. 
On the downside, the 1.0405/15 level remains key support for the pair.  A break of this level will be bearish for the pair.

There … [visit site to read more]

RC2 Tops, Outlook Disappoints

Posted: 19 Feb 2010 08:31 AM PST

RC2 Corp.'s (NASDAQ:RCRC) fourth quarter earnings of 43 cents per share were ahead of the Zacks Consensus Estimate of 41 cents. The better-than-expected results were driven by a favorable product mix and higher margins reflecting the cost-reduction initiatives. Results were flat compared to the prior-year period. However, the company's outlook for 2010 is below our expectations. 

Including the non-cash impairment charge related to the Sesame Street infant and toddler products license, … [visit site to read more]

Forex Trading: EURUSD Moves To Resistance At The 1.3533 And Comes Off

Posted: 19 Feb 2010 08:29 AM PST

The EURUSD moved up to the resistance at 1.3533 and held (SEE PRIOR POST).  This is the 50% of the move down from the surprise move lower yesterday. A move above will likely solicit additional buying interest but look for profit taking sellers. Support now comes in at the 1.3512 area (old 38.2% retracement level) and below that 100 bar MA on the 5 minute chart (blue line in the chart above at the 1.3503 level … [visit site to read more]

The Debt Default Boom: How To Profit From The “Car-Stealing” Business

Posted: 19 Feb 2010 08:17 AM PST

The Debt Default Boom: How to Profit From the "Car-Stealing" Business
by David Fessler, Energy and Infrastructure Expert
Friday, February 19, 2010: Issue #1200
It was a crisp, cold night. 8:30 PM. I was dressed in black, as was my friend and partner-in-crime. (He asked that I not use his real name, so I'll call him Pete.)
As Pete has done hundreds of times before, he was directing a covert night-time operation and I was tagging along with him in his specialized tow truck.
Pete's very … [visit site to read more]

Mutual Funds: Top 3 Ranked Growth Funds

Posted: 19 Feb 2010 08:17 AM PST

For investors willing to forgo regular dividend payouts for long term capital appreciation, growth funds are a natural choice. By focusing on investing in companies whose value will continue to increase, it aims at reaping the maximum amount of capital gains. A long tem outlook and tolerance for a reasonable amount of risk are necessary when investing in these securities since they are relatively more volatile than other fund types. However, the risk involved in this case is much lower than … [visit site to read more]

$EUO - How I’m Betting Against The Euro

Posted: 19 Feb 2010 08:17 AM PST

By Dr. Steve Sjuggerud

Two months ago, I recommended betting against the euro…

It was my top idea. The entire issue of my True Wealth newsletter two months ago was dedicated to that idea. And in last month’s issue of True Wealth, I said it was my “top recommendation.”

Here’s exactly what I wrote two months ago:

This type of opportunity doesn’t come along very often. It is time to bet against the euro. It is overpriced. The euro is in a horrible situation right now. A mountain of factors … [visit site to read more]

Questar Beats Expectations

Posted: 19 Feb 2010 08:16 AM PST

Natural gas-focused energy company, Questar Corp. (NYSE:STR), reported robust fourth-quarter results on higher production volumes. Earnings per share, excluding gains from non-core asset sales and mark-to-market losses on natural gas basis-only swaps, came in at 81 cents, comfortably beating the Zacks Consensus Estimate of 70 cents. However, compared to the fourth quarter of 2008, Questar's adjusted earnings per share fell approximately 18.2%, primarily attributable to lower realized natural … [visit site to read more]

Three Reasons Why The Copper ETF (JJC) Is Soaring

Posted: 19 Feb 2010 08:15 AM PST

Copper prices have continued their impressive rally this week, as the widely-used industrial metal finished higher on Thursday up for the seventh time in eight trading sessions, bringing its return over that period above 15%. The recent surge in copper prices has been driven by a number of factors, and many investors believe that the metal still has room to climb. Copper's recent run-up is attributable to three primary factors:
1. China's Insatiable Materials Appetite
Renewed hope that one … [visit site to read more]

Video: Dell’s 4Q Earnings Come In Short

Posted: 19 Feb 2010 08:05 AM PST

The Dell Corporation (DELL) announced late Thursday that its 4Q earnings fell and gross profit margin missed estimates. … [visit site to read more]

Hanger Orthopedic Upgraded

Posted: 19 Feb 2010 08:01 AM PST

We recently upgraded Hanger Orthopedic Group, Inc. (NYSE:HGR) to an Outperform with a target price of $21 based on a P/E of 16.4x our fiscal 2010 EPS estimate of $1.28. 

Hanger recently reported a strong fourth quarter and full fiscal 2009 results. For the fourth quarter, earnings per share were 37 cents, beating the Zacks Consensus Estimate of 36 cents and the year-ago earnings of 26 cents. For fiscal 2009, earnings per share were $1.13, higher than the year-ago earnings of 86 … [visit site to read more]

Chicago Auto Show: The Future Is Now?

Posted: 19 Feb 2010 07:59 AM PST

Chicago Auto Show: The Future Is Now?
At the currently running Chicago Auto Show, all types have turned out to get a glimpse of what will grace our boulevards and freeways in the next few years. Clearly one does not need to be a hardcore gear-head to take a strong interest these days; after all, as American taxpayers we ourselves own a large chunk of GM and Chrysler. Their newest designs are on our dime.
This year’s concept cars at the Chicago Auto Show (the second of 11 auto shows held … [visit site to read more]

Forex Trading: USDJPY Tests Highs At 92.08

Posted: 19 Feb 2010 07:52 AM PST

The USDJPY is up testing the highs for the day at 92.08. A move above will next target the 92.30 level where the  200 day MA is found for the pair.  Keep this level in mind.

The 100 and 200 bar MA on the 5 minute chart remains at 90.83.  If the price remains above these moving average lines, the bias remains to the … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: AGP, JCP, DELL

Posted: 19 Feb 2010 07:50 AM PST

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

Initiating BP At Neutral

Posted: 19 Feb 2010 07:46 AM PST

We have recently initiated coverage on BP Plc. (NYSE:BP) with a Neutral recommendation and $55 target price. 

London, England-based BP Plc (BP) is one of the world’s largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemical products. It operates in three segments: Exploration and Production, Refining and Marketing, and Other Businesses and Corporate. 

BP has maintained an industry leading track record … [visit site to read more]

Forex Trading: EURUSD Moves Down To Test 61.8% Retracement Support Again And Bounces

Posted: 19 Feb 2010 07:43 AM PST

The EURUSD moved down to test the 1.3483 level again and bounced.  The London closing hour is approaching at 11:00-12:00 and this may cause some squaring up of positions.  The market can go either way so be aware. A move below the 1.3483 level should lead to further declines toward the lows for the day at the 1.3456 and 1.3444 levels.  ON the upside, the 1.3533 remains as upside resistance. This is the middle of the range from the move down after the Discount Rate rise. The 100 … [visit site to read more]

SurModics Downgraded

Posted: 19 Feb 2010 07:31 AM PST

We recently downgraded our recommendation on SurModics (NASDAQ:SRDX) to Underperform. Although SurModics' first quarter earnings (after adjustments) of fiscal 2010 came in at 5 cents above the Zacks Consensus Estimate, we are concerned about the company's top line growth. 

SurModics earns more than 60% of its revenues from the cardiovascular segment. Although this segment reported a marginal year-over-year growth of 3% during the first quarter of 2010, the past trend has not been as … [visit site to read more]

Video: Asian Markets Slide As Week Comes To An End

Posted: 19 Feb 2010 07:26 AM PST

The major Asian/Pacific markets were well on the downside this session following strong declines in domestic stocks. … [visit site to read more]

Who Else Wants An Automotive ETF?

Posted: 19 Feb 2010 07:21 AM PST

The ETF industry has expanded rapidly in recent years, with hundreds of new product launches covering various regions, sectors, and investment strategies. The surge in ETF product offerings–there are now nearly 1,000 exchange-traded products in our ETF screener–has sparked some speculation that the industry has reached a point of saturation–or perhaps has long since blown through that point.
There's certainly some good support for such a notion. At the end of 2009, approximately 250 … [visit site to read more]

Acergy Beats, Order Backlog Rises

Posted: 19 Feb 2010 07:16 AM PST

London-based oilfield contractor Acergy S.A. (NASDAQ:ACGY) reported significantly better-than-expected fourth-quarter (ending Nov 30, 2009) results on the back of solid margins, strong operational performance, and good project execution skills. Earnings per share from continuing operations came in at 39 cents, well above the Zacks Consensus Estimate of 18 cents. 

However, compared with the corresponding quarter of 2008, Acergy's earnings per share was down 11.4%, reflecting the still … [visit site to read more]
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