Mar 25, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

Goldman Seeks India Permit

Posted: 25 Mar 2010 11:42 AM PDT

According to the Economic Times, on March 23, Goldman Sachs Group Inc. (NYSE:GS) has approached the Reserve Bank of India (RBI), India's central bank, to seek a banking license to commence commercial banking operations in the country. Currently, the license has only been applied for and any material decision is long awaited.
 
Goldman already has a license for operating as an asset management company (AMC) in India, which the company is soon expecting to initiate while also seeking the … [visit site to read more]


MDR Unit Wins Saudi Deal

Posted: 25 Mar 2010 11:26 AM PDT

J. Ray McDermott S.A. – a subsidiary of energy-focused engineering and construction firm McDermott International Inc. (NYSE:MDR) – announced the receipt of an infrastructure upgrade and electrification contract from Saudi Aramco, the state-owned national oil company of Saudi Arabia. The financial terms of the transaction were not disclosed.
 
The project, encompassing the upgrade of crude gathering and power supply facilities in Saudi Aramco’s Safaniya field, will help sustain crude oil … [visit site to read more]

Roche Aims Big In Oncology

Posted: 25 Mar 2010 11:18 AM PDT

Roche (RHHBY) is looking to strengthen its presence in oncology and expand in other therapeutic areas like metabolism, inflammation and central nervous system (CNS). The company provided an update on its pipeline at a recently held investor conference.
 
The company has a strong final stage pipeline consisting of more than 35 additional indications for existing products. Moreover, 10 new molecular entities in the areas of cancer, metabolic, autoimmune diseases and CNS disorders are … [visit site to read more]

Israel ETF (EIS): An Unlikely Winner In Health Care Reform

Posted: 25 Mar 2010 11:09 AM PDT

With the passage of the sweeping health care reform late Sunday night, many investors are scrambling to determine which sectors are likely to benefit from the new legislation. Although the timing and impact of changes remains to be seen, generic pharmaceutical firms will likely emerge as one of the big winners. Many big name drugs are going off patent very soon and will be open to the generic market. Popular drugs Cozzar and Flomax will lose their patents this year, and Lipitor, the best … [visit site to read more]

The Persistence Of Fantasy

Posted: 25 Mar 2010 11:02 AM PDT

(Image: MoMA.)
It’s not quite as surreal as Salvador Dalí’s “The Persistence of Memory,” but there is definitely something otherworldly about the continuing run-up in share prices in the face of renewed uncertainty about the fundamental outlook.
Indeed, in “A Missive From Main Street,” the Reformed Broker relays a first-hand report from the economy’s front lines that underscores the differences between the unpleasant reality on the ground and the one that exists in equity traders’ … [visit site to read more]

Real Estate ETFs Face An Uphill Battle

Posted: 25 Mar 2010 11:01 AM PDT

Over the past year, the real estate sector has been on somewhat of a roller coaster ride as the federal government has poured billions dollars worth of incentives its way to add stability; however, recent data indicates the sector is far from being stable.

According to the Commerce Department, new home sales dropped 2.2% in February, marking the fewest sales of new homes since 1963, and extending out a fourth month of consecutive declines.  The seasonally adjusted annual sales pace of … [visit site to read more]

Characteristics Of An Economic Depression

Posted: 25 Mar 2010 11:00 AM PDT

Markets proved they could still fall yesterday. After having rallied for 15 of the previous 18 sessions, we were beginning to wonder if it were still possible…
In an interesting turn of events, investors actually succumbed to the harsh economic realities of the day. There's no telling how long this momentary lapse of unreason may last, of course, but we'll take what we can get while we can get it.
The primary catalyst for the relatively minor pullback in stocks was a relatively major … [visit site to read more]

Wells Fargo To Buy GMAC Unit

Posted: 25 Mar 2010 10:51 AM PDT

On Wednesday, Wells Fargo & Co. (NYSE:WFC) announced its intention to buy the North American factoring business of a unit of GMAC Inc. (NYSE:GJM), the U.S. auto finance company, for undisclosed value and terms. However, the deal is expected to be completed by April 30, 2010.
 
GMAC's factoring business is operated by purchasing and collecting accounts receivable or by advancing cash loans worth less than the full value of the receivables, thereby earning on the margin when the funds are … [visit site to read more]

Three Currency ETFs Matching The Dollar’s Recent Gains

Posted: 25 Mar 2010 10:38 AM PDT

After struggling for much of 2009, the U.S. dollar is back on the upswing thanks not to overwhelming strength in the domestic economy, but sovereign debt issues in Europe and a subsequent "flight to quality" from international investors. Although the mounting debt of the U.S. government presents potential debt problems down the road, the dollar has retained its status as the global reserve currency, despite frequent calls for other currencies to play a more prominent role in global trade. … [visit site to read more]

Treasury To Sell Citi Stake

Posted: 25 Mar 2010 10:36 AM PDT

The U.S. Treasury may sell its 27% stake in Citigroup Inc. (NYSE:C) through a preset trading plan, according to a Bloomberg report. This program may be announced as early as next month. 

The plan would bind the government into a schedule of selling its shares. Instructions would be issued by the Treasury on the number of shares to be sold, the timing of the sale and the price. Such efforts are meant to abolish any concern that the sales are based on non-public information. 

Citi has … [visit site to read more]

Yum! Rings Taco Bell In India

Posted: 25 Mar 2010 10:21 AM PDT

After having KFC and Pizza Hut as successful brands in India, Yum! Brands, Inc. (NYSE:YUM) is now focusing on developing Taco Bell as the third brand in India. As a part of its strategy, the fast food restaurant operator opened the first Taco Bell restaurant in Bangalore, India. 

The sluggish sales in the U.S. have prompted Yum! to focus more on emerging markets, such as India, which still remains untapped fully. The company remains confident about the success of Mexican-inspired … [visit site to read more]

Video: Best Buy Reports Strong Holiday Quarter

Posted: 25 Mar 2010 10:15 AM PDT

Best Buy announced Thursday a strong holiday quarter while forecasting stronger-than-expected earnings in the current year. … [visit site to read more]

Video: Crude Rises On Weak Dollar & Greece Optimism

Posted: 25 Mar 2010 10:14 AM PDT

Front month crude prices rose this session following a weak dollar and growing opptimism that Greece may receive financial assistance from the EU. … [visit site to read more]

PetroChina Posts Lower Profit

Posted: 25 Mar 2010 10:06 AM PDT

Chinese energy giant PetroChina Co. Ltd. (NYSE:PTR) announced 2009 earnings of RMB 103.4 billion or RMB 0.56 per diluted share, compared to RMB 114.5 billion or RMB 0.63 per diluted share a year earlier. Earnings per ADR came in at $8.20 (Exchange rate: US$1.00=RMB 6.8315, 1 ADR = 100 shares), lower than the Zacks Consensus Estimate of $8.91. 

The negative comparisons can be primarily attributable to lower oil prices and weaker energy demand amid the global recession. PetroChina's total … [visit site to read more]

Spain ETF Sinks After Portugal Downgrade

Posted: 25 Mar 2010 10:02 AM PDT

With Greece struggling to gain control of its financial situation, many investors have been wondering which of the relatively weak European economies would become the next problem area. It appears that they now have an answer, as Fitch Ratings lowered Portugal's sovereign debt rating to AA- from AA with a negative outlook. The agency cited Portugal's "significant budgetary underperformance in 2009″ and said the government's deficit last year had risen well above its September forecast … [visit site to read more]

The Economics Of Being Nice

Posted: 25 Mar 2010 09:54 AM PDT

Dear readers get a break today.
We're on our way back to the USA. No time to check the markets…
Here's something for the "miscellaneous" file, something we found in the paper this morning:
A team of Canadian researchers wanted to know if people who bought "green" products were nicer than other people. They did a study of it and came to the conclusion, as reported in The Financial Times, that "those who bought supposedly ethical products were more likely to lie, cheat and steal … [visit site to read more]

Video: Market Movers: BBY, RHT, CAG, NKE, SBUX

Posted: 25 Mar 2010 09:54 AM PDT

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

New Client For Allscripts

Posted: 25 Mar 2010 09:51 AM PDT

Allscripts-Misys Healthcare Solutions, Inc. (NASDAQ:MDRX) recently entered into an agreement with a new client, Lake Region Healthcare, whereby the latter has selected Allscripts' Electronic Health Record (EHR) and Practice Management (PM) solutions. Lake Region Healthcare will deploy EHR and PM to enhance the quality of patient care, improve patient communications, and better manage the cost of care delivery for 50 affiliated physicians and mid-level providers employed by Fergus Falls Medical … [visit site to read more]

Video: Improved Jobless Claims Lifts Euro

Posted: 25 Mar 2010 09:45 AM PDT

An improvement in jobless claims data and rising belief that Greece will receive EU assistance has paved the way for a rise in higher-yielding currencies. … [visit site to read more]

Schlumberger Buys Geoservices

Posted: 25 Mar 2010 09:34 AM PDT

Following the announcement of acquisition of Smith International Inc (NYSE:SII), Schlumberger Limited (NYSE:SLB) is now acquiring privately held Geoservices for $1.07 billion from Astorg Partners. Geoservices is a French oilfield services company that specializes in mud logging and production surveillance operations. Astorg Partners is a French independent private equity firm.
 
Mud logging technology is used to get additional information through logging analysis of the drilling fluids and … [visit site to read more]

South Africa: A Profitable Path To Emerging Nations’ Wealth

Posted: 25 Mar 2010 09:30 AM PDT

Just over two decades ago, South African leader F.W. de Klerk declared an end to his country's apartheid. The nation has come a long way since then, even hosting this summer's soccer World Cup.
As South Africa opens further to the world, its companies are doing the same. But they have little interest in slow-growing Western markets. They're much more interested in fellow emerging nations, especially on their continent.
For instance, last year, China – with its huge demand for raw … [visit site to read more]

Forex Trading: GBP/USD Key Breakdown Within Downtrend

Posted: 25 Mar 2010 09:26 AM PDT

Price action on GBP/USD, a daily chart of which is shown, has broken down cleanly below both the key 1.5000 price region and a short-term uptrend support line extending from the early March low. This occurs within the context of a strong downtrend in the pair. As of Thursday (3/25/2010) morning New York session, price made a bullish retracement of yesterday’s substantial drop, but was rejected by the key 1.5000 level almost precisely at the round figure, and then dropped back down to re-test … [visit site to read more]

Conoco To Raise Shareholder Value

Posted: 25 Mar 2010 09:18 AM PDT

ConocoPhillips (NYSE:COP) yesterday announced plans to increase shareholder value at its annual analyst meeting in New York. These plans include debt reduction by using proceeds from assets divestiture, increase in dividend and resumption of share repurchases.
 
In 2010 and 2011, Conoco will sell approximately $10 billion of assets, including its interest in Syncrude and the Rex Pipeline, 10% of its Lower 48 and Western Canada portfolio and its remaining U.S. marketing assets. The company is … [visit site to read more]

Australian Dollar: The Downside Prevails

Posted: 25 Mar 2010 09:17 AM PDT

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

Canadian Dollar: Under Pressure

Posted: 25 Mar 2010 09:17 AM PDT

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

No Safe Haven

Posted: 25 Mar 2010 09:17 AM PDT

Fundamentals
Bond futures had sharp declines yesterday, as investors’ appetites for government debt continue to wane. Yesterday’s auction of 5-year notes drew a yield of 2.605 percent, versus consensus estimates of 2.556 percent, which likely indicates lackluster demand. The auction showed the lowest demand for US debt in 8 months. The poor showing by foreign investors can largely be attributed to China, which may be retaliating against efforts from US lawmakers to force the country to float … [visit site to read more]

Earnings Preview: Oracle

Posted: 25 Mar 2010 09:11 AM PDT

Oracle Corporation (NASDAQ:ORCL) will report third-quarter of fiscal 2010 results after the closing bell today. During its second quarter conference call held on December 17, the company provided better-than-expected third-quarter guidance.
For the third quarter, Oracle expects non-GAAP earnings per share ranging between 36 – 38 cents a share. The Zacks Consensus estimate for the quarter is 36 cents, in line with the company's guidance. The third quarter EPS estimate is an increase of 5.9% from … [visit site to read more]

Greatbatch Stays At Underperform

Posted: 25 Mar 2010 09:02 AM PDT

We recently reiterated our 'Underperform' rating on Greatbatch, Inc. (NYSE:GB) with a target price of $18 based on a P/E of 10.9x our fiscal 2010 EPS estimate of $1.65. The company reported disappointing fourth quarter and fiscal 2009 results with top-line erosion witnessed in both these periods and across all business segments.
 
Total revenue in the fourth quarter declined 14% year over year to $125.8 million. Greatbatch Medical revenue declined 14% year over year to $108.8 million. In … [visit site to read more]

FXI: Didn’t Get The Message

Posted: 25 Mar 2010 09:01 AM PDT

Aside from being on the wrong side of the market with my current S&P500 index short trade, there are several other things that have me puzzled about the market’s ascent. One of these conundrums is the i-Shares FTSE Xinshua/ China 25 (symbol: FXI).

We last looked at FXI on January 27, 2010, and we identified the $42 level as resistance, and as you can see from figure 1, a weekly chart of FXI, this area remains resistance. Several reasons why this chart should be troubling for equity bulls: … [visit site to read more]

Best Buy Beats, Shares Jump

Posted: 25 Mar 2010 08:53 AM PDT

Best Buy Company, Inc. (NYSE:BBY) recently reported better-than-expected fourth-quarter 2010 results, sending shares up $3.17 or 7.7% to $44.35 in early hours trading.
The quarterly earnings of $1.82 per share surpassed the Zacks Consensus Estimate of $1.79 and rose 13% from $1.61 delivered in the prior-year quarter, buoyed by sustained growth in the top-line and disciplined cost management.
Even in this sluggish economic environment, plagued by heavy job losses and lower discretionary spending, … [visit site to read more]

Morning Stock Market Movers: Dolby Laboratories, Lululemon Athletica, Range Resources

Posted: 25 Mar 2010 08:47 AM PDT

Lululemon Athletica, Inc. (NASDAQ:LULU) - Yoga and athletic clothing and accessories retailer Lululemon Athletica’s shares are trading at their highest level since January of 2008 today after the Canadian company posted fourth-quarter profits of $0.40 cents per share, which blew right past average analyst estimates of $0.29 a share. Shares surged more than 13% over yesterday’s closing value of $36.03 to reach an intraday high of $40.79 this morning. Options trading traffic is heaviest at the April … [visit site to read more]

Earnings Preview: Immucor

Posted: 25 Mar 2010 08:45 AM PDT

Immucor (NASDAQ:BLUD) is scheduled to report its third quarter fiscal 2010 results on March 31, 2010. The Zacks Consensus Estimate for the quarter is pegged at a profit of 28 cents. 

Going by past trends, Immucor has surpassed expectations in the past four quarters. The company had a positive surprise of 20% and 7.69% in the first and second quarters of fiscal 2010, respectively, with a positive four-quarter average of 19.13%.
 
This means that, on an average, the company has topped the … [visit site to read more]

Initial Jobless Claims Fall

Posted: 25 Mar 2010 08:38 AM PDT

Initial Claims for Unemployment Insurance fell by 14,000 in the last week to 442,000. That brought the four-week moving average (generally a better measure due to the volatility in the weekly numbers) down by 11,000 to 453,750.
Initial jobless claims peaked just around a year ago, when they were at 642,000, and fell sharply until the end of 2009 (see graph below from http://www.calculatedriskblog.com/). The rebound in initial jobless claims during January and February raised the possibility … [visit site to read more]

SanDisk Poised For Growth

Posted: 25 Mar 2010 08:30 AM PDT

Leading flash memory producer and hard disk manufacturing company SanDisk Corporation (NASDAQ:SNDK), has declared that a leading Chinese manufacturer of portable computers, e-book readers and other consumer electronics products named Malata; Wanlida Group Co. Ltd, has selected SanDisk's 16-gigabyte (GB) pSSD modular solid state drives (SSD) Gen2.
 
This product will be used by Malata, in its new pocket design netbook, with dimensions of 256X27X143mm and an 8.9 inch LCD screen. So netbook is … [visit site to read more]

AMB Leases In Pennsylvania

Posted: 25 Mar 2010 08:15 AM PDT

AMB Property Corp. (NYSE:AMB), a leading real estate investment trust (REIT), has recently signed leasing agreements for approximately 202,200 square feet at AMB I-81 Distribution Center in Harrisburg, Pennsylvania, amid signs of market stabilization. The deal was signed with a leading supplier of a home improvement retailer. 

The leased facility is strategically located in close proximity to an interstate network with easy access to all the major East Coast cities, and enables … [visit site to read more]

Morning News Notes: 3/25/2010

Posted: 25 Mar 2010 08:09 AM PDT

The “Morning News Notes” as prepared by TL… jobless claims, healthcare impact on corporate America, and C.
Just click on the link or the coffee mug below.

“Morning News Notes”: March 25, … [visit site to read more]

Is Angela Merkel The Most Influential Leader In The EU?

Posted: 25 Mar 2010 07:57 AM PDT

We had another strong day for the dollar yesterday, with the greenback gaining against all of the majors. But overnight, the Asians and then the Europeans sold the dollar and moved money back into the currencies. So after another rollercoaster ride, we are basically right back where we were at this time yesterday morning. These volatile markets are likely to continue, as investors try to figure out if the global economy will recover or if we will slide back into recession. With all of this … [visit site to read more]

Video: NYSE Opening Bell Market Monitor: WFC, VOD, PTR

Posted: 25 Mar 2010 07:44 AM PDT

The latest in news, commentary, and information on what’s moving the US equities markets. Watch this broadcast LIVE at 9:30 am EST daily @ “http://www.nyx.com/marketmonitor” … [visit site to read more]

Video: Sensex Soars As Market Reopens

Posted: 25 Mar 2010 07:27 AM PDT

India’s BSE Sensex index posted a significant gain this session after being closed yesterday for a national holiday. … [visit site to read more]

Morning News Notes: 3/24/2010

Posted: 24 Mar 2010 08:10 AM PDT

The “Morning News Notes” as prepared by TL… BAC, comments by Fed’s Yellen, Gallup poll approval ratings of Congress and the President, health care and Libor continues to rise.

Just click on the link or the coffee mug below.

“Morning News Notes”: March 24, … [visit site to read more]
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