Daily Markets - Financial News And Opinions

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• Where Is The “Big Money” Heading Now?
• Swiss Franc: Continuation Of The Rebound
• Japanese Yen: Rebound
• British Pound: The Upside Prevails
• Euro: The Upside Prevails
• Is The End Of “Easing” Near?
• Advance Auto Parts Misses Ests
• Paul Brodsky: Gold Isn’t A Crowded Trade
• CBS Earnings In-line With Zacks
• Forex Trading: USDJPY Watching The 100 Hour MA Today
• Schlumberger Acquires Smith Int’l
• 2010 Bank Failures Grow To 20
• Treasury Sells Warrants Of 4 Banks
• Forex Trading: USDCHF Testing 200 Hour MA Level At The 1.0745 Level
• Cisco And H-P In Head-On Battle
• Forex Trading: GBPUSD In A Narrow Range
• Chart Of The Week: A Broader View Of The U.S. Economic Recovery
• Forex Trading: EURUSD Between Close And The 100 Hour MA As NY Enters The Quiet Fray
• Stock Buy: Albemarle
• Bull Of The Day: Sara Lee Corp. (SLE)
• Bear Of The Day: Molina Healthcare (MOH)
• Stock Buy: Whole Foods Market, Inc.
• Stock Buy: Hanger Orthopedic Group
• Mutual Funds: Top 5 Ranked Balanced Funds

Where Is The “Big Money” Heading Now? Posted: 22 Feb 2010 07:01 AM PST The remarkable week that just concluded actually began on February 12, which was two Fridays ago. Stocks plunged in the opening minutes of trading that morning as investors’ faith in the global economic recovery was shaken. In China, policymakers again tightened monetary policy in a fight against rapid credit growth and fast rising asset prices. In Europe, which is plagued by concerns over the bailout of deeply indebted Greece, a report showed economic growth slowing dramatically. For a few … [visit site to read more]

Swiss Franc: Continuation Of The Rebound Posted: 22 Feb 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

Japanese Yen: Rebound Posted: 22 Feb 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

British Pound: The Upside Prevails Posted: 22 Feb 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

Euro: The Upside Prevails Posted: 22 Feb 2010 06:17 AM PST Update on supports and resistances. … [visit site to read more]

Is The End Of “Easing” Near? Posted: 22 Feb 2010 06:17 AM PST Fundamentals The Federal Reserve surprised most market participants Thursday afternoon by announcing a 0.25% increase in the discount rate. The discount rate is the interest rate charged to banks for emergency loans, and normally any changes in this rate are considered more symbolic in nature. But traders are taking a somewhat different stance this time, as many consider this the Fed’s “first shot” at attempting to ease off the stimulus gas pedal and begin the interest rate tightening cycle. … [visit site to read more]

Advance Auto Parts Misses Ests Posted: 22 Feb 2010 06:15 AM PST Advance Auto Parts (NYSE:AAP) has posted a profit of $37 million or 39 cents per share in the fourth quarter of 2009. This was lower than the year-ago level profit of $38 million or 41 cents and the Zacks Consensus Estimate of 46 cents. Despite the efforts to drive sales, lower costs and increase return on invested capital, the company has been hit hard by the sluggish economy during the quarter.   Sales in the quarter rose 3.6% to $1.14 billion. This was attributable to a net addition of 52 … [visit site to read more]

Paul Brodsky: Gold Isn’t A Crowded Trade Posted: 22 Feb 2010 06:01 AM PST Courtesy of the Big Picture Blog (Barry Ritholz), is a thoughtful piece by Paul Brodsky, concerning the empty rhetoric from some Gold bears….”It’s a crowded trade.” I have been harping about this for quite a while. Gold is hardly a crowded trade. Only 0.7% of global assets are invested in Gold. Now consider that fact and consider that Gold is 10 years into a bull market, has been up every year and has yet to go parabolic. At $1250, Gold would be up 5x from its low. Oil rose nearly 15x … [visit site to read more]

CBS Earnings In-line With Zacks Posted: 22 Feb 2010 06:00 AM PST CBS Corporation (NYSE:CBS), a diversified media conglomerate, recently reported fourth-quarter 2009 results. The quarterly earnings, which remain in line with the Zacks Consensus Estimate, posted a double-digit growth on a year-over-year basis on the heels of cost containment initiatives.   The quarter highlights improving trends in advertising due to renewed strength in the auto and financial services sectors, rise in traffic at CBS Interactive sites with subscriber growth registered across … [visit site to read more]

Forex Trading: USDJPY Watching The 100 Hour MA Today Posted: 22 Feb 2010 05:52 AM PST The USDJPY is moving closer to the 100 hour MA at the  91.06 level. The pair has closed above this moving average for all but 4 hourly bars since February 11th.  I would expect to see buyers against the level on a dip today as profit takers book some profits from the trend-like move down today. On the topside look for resistance against the 100 bar MA on the 5 minute chart.  The level comes in at the 91.46 level currently and moving lower.  The price has been using the 100 … [visit site to read more]

Schlumberger Acquires Smith Int’l Posted: 22 Feb 2010 05:45 AM PST The oilfield services giant Schlumberger Ltd. (NYSE:SLB) has acquired lesser rival Smith International Inc. (NYSE:SII) for approximately $11 billion in an all-stock deal, which is the biggest acquisition in the United States so far this year.   The Wall Street Journal had reported on Friday that Schlumberger was in advanced talks to buy Smith. Following this news, Smith's shares jumped 13% but Schlumberger's shares fell 2.9%.   As the economy has shown signs of recovery and oil prices … [visit site to read more]

2010 Bank Failures Grow To 20 Posted: 22 Feb 2010 05:39 AM PST Though the economy is showing signs of a gradual recovery, bank failures continue as U.S. regulators on Friday closed down four more banks in California, Illinois, Texas and Florida. This brings the total number of bank failures to 20 so far in 2010, compared to 140 in 2009, 25 in 2008 and 3 in 2007. While we expect economic recovery to gain momentum soon, there remain lingering concerns in the banking industry. Failure of both residential and commercial real estate loans as a result of the … [visit site to read more]

Treasury Sells Warrants Of 4 Banks Posted: 22 Feb 2010 05:30 AM PST The U.S. Treasury Department is planning to auction off its warrant positions in four banks, which it received as part of its investments in banks through the $700 billion Troubled Asset Relief Program (TARP) during the height of the financial crisis. The government is taking this step to free the banks from state interference.   The four banks, whose warrants are expected to be sold via auctions over the next month, are Bank of America (NYSE:BAC), Washington Federal (NASDAQ:WFSL), Texas Capital … [visit site to read more]

Forex Trading: USDCHF Testing 200 Hour MA Level At The 1.0745 Level Posted: 22 Feb 2010 05:25 AM PST The 200 hour MA has been tested on a number of occassions today. The current level comes in at the 1.0745 level.  A break should see further downward pressure for the pair with the 1.0718 level as the next target (61.8 of the move up from the February 9th low). On the topside today, the price has made an attempt to extend above the 100 hour MA at the 1.0766 level.  Each time, the price was not able to sustain any momentum with the high reaching 1.0778.    The failure … [visit site to read more]

Cisco And H-P In Head-On Battle Posted: 22 Feb 2010 05:23 AM PST Networking giant Cisco Systems (NASDAQ:CSCO) has formally announced that it will be breaking off ties with longtime partner, Hewlett-Packard Company (NYSE:HPQ). In an official blog posted Thursday, Cisco SVP of Worldwide Channels, Keith Goodwin stated that H-P's system integrator contract, due for renewal on April 30, would be set aside. As a result, H-P would cease to be a Cisco Certified Channel or Global Service Alliance Partner. The announcement comes as no surprise, since there has been ample … [visit site to read more]

Forex Trading: GBPUSD In A Narrow Range Posted: 22 Feb 2010 05:12 AM PST THE GBPUSD came under pressure early in the Far East session, reaching a low of 1.5430.  The price rebounded quickly from the move but has been in a narrow high to low range since that time.  The high has reached 1.5503. The low 1.5447 (on 3 separate hourly closes).  The 56 pip range should be extended today.  The price is in the middle of the range.   Looking at the 5 minute chart, the 100 and 200 bar MA on the 5 minute chart is at the 1.5469 level.  The … [visit site to read more]

Chart Of The Week: A Broader View Of The U.S. Economic Recovery Posted: 22 Feb 2010 05:01 AM PST Last week, in Chart of the Week: Retail Sales Recovering, I attempted to demonstrate that the much beleaguered U.S. consumer has actually been a relative source of strength during the economic recovery. In this week’s chart of the week, my goal is to expand that relatively narrow view of economic activity to encompass four key recession indicators that cut across a broad scope of economic activity: industrial production; income; employment; and retail sales. Note that relative to … [visit site to read more]

Forex Trading: EURUSD Between Close And The 100 Hour MA As NY Enters The Quiet Fray Posted: 22 Feb 2010 04:56 AM PST The EURUSD has dipped below the close from Friday in early NY trading.  The close from Friday came in at the 1.3594 level. The low just reached 1.3586 but has rebounded.  The 100 hour MA comes in at the 1.3519 level and this will be upside resistance.  Earlier in the day the price reached the 200 hour MA 9Green line in the chart above) at the 1.3651 and found willing sellers against that level.  The 61.8% retracement of the move down came in at 1.3657. This also gave … [visit site to read more]

Stock Buy: Albemarle Posted: 21 Feb 2010 09:00 PM PST Albemarle (NYSE:ALB) offers investors solid earnings growth and a decent dividend yield. Company Description Albemarle Corporation develops, manufactures, and markets engineered specialty chemicals. It operates in three segments: Polymer Additives, Catalysts, and Fine Chemicals. Improving Business Conditions The company has seen modest but steady improvement in most of its businesses since the second quarter of 2009. Management expects operating efficiency gains, new product sales, and improving … [visit site to read more]

Bull Of The Day: Sara Lee Corp. (SLE) Posted: 21 Feb 2010 09:00 PM PST We still hold an Outperform rating on Sara Lee (NYSE:SLE) shares to reflect our favorable view of management’s various initiatives to achieve growth and streamline operations. The company’s Transformation Plan is expected to generate sales growth in the range of 4% to 5% and earnings growth in the range of 5% to 8% by next year. Further, the company is executing a series of global projects to generate cost savings in the range of $350 million to $400 million by fiscal 2012. The company is focused … [visit site to read more]

Bear Of The Day: Molina Healthcare (MOH) Posted: 21 Feb 2010 09:00 PM PST Molina Healthcare, Inc. (NYSE:MOH) reported a fourth-quarter loss of $0.18 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.16. The company earned $1.19 per share in 2009 as against $2.15 per share in 2008, so its latest results are down approximately 45%. Molina’s profit fell approximately 48.2% to $30.9 million in fiscal 2009 from 2008. The decline in profit was attributable to higher operating expenses. The increase in medical costs was attributable to the H1N1 … [visit site to read more]

Stock Buy: Whole Foods Market, Inc. Posted: 21 Feb 2010 09:00 PM PST Whole Foods Market, Inc. (NASDAQ:WFMI) recently jumped higher to hit a new 52-week high after the company reported better than expected Q1 results on Feb 16. First-Quarter Results Sales were up 7% from last year to $2.6 billion. Earnings also came in strong at 32 cents per share, 6 cents ahead of the Zacks Consensus Estimate. The company has surprised in each of the last four quarters by an average of 5 cents, or 23%. Whole Foods noted that its results were driven by more strategic pricing and an … [visit site to read more]

Stock Buy: Hanger Orthopedic Group Posted: 21 Feb 2010 09:00 PM PST Hanger Orthopedic Group, Inc. (NYSE:HGR)) topped estimates for the third time in a row, sending estimates higher. Earnings Up 42% On Feb 10 Hanger reported fourth-quarter results that included an 11% increase in sales, to just under $20 million. Earnings per share came in at 37 cents, up from 26 cents one year ago. Heading into the announcement the Zacks Consensus Estimate was calling for a 36 cent profit, making this the third consecutive earnings surprise. Estimates Up Since the release, we have … [visit site to read more]

Mutual Funds: Top 5 Ranked Balanced Funds Posted: 20 Feb 2010 01:30 AM PST When seeking a secure investment that offers both capital growth and a steady income flow, balanced funds might be your best choice. By combining the benefits of both stocks and bonds, this kind of fund can ensure that gains from the stock market are accompanied with relatively low levels of volatility. Moreover, the best balanced funds keep their allocation between assets flexible and open to changes, depending on the current market situation. This enables them to reap the benefits of a … [visit site to read more]

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