Daily Markets - Financial News And Opinions

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• H&R Block Reports Interim Results
• ConAgra Meets, Stock Tumbles
• Encouraging Data On Zalbin
• Gap Mulls Australian Venture
• Stock Market News Briefs: ConAgra Foods, Inc., McCormick & Company, Incorporated, Raytheon Company, Brocade Communications Systems, Inc., Lululemon Athletica Inc., Starbucks Corporation
• Forex Trading: EURJPY Moves Higher On USDJPY Strength
• Energizer Holdings Upped To Neutral
• Eurozone Aside, The UK, Japan And US Are Also Problematic In Terms Of Sovereign Risk
• Everest Re Estimates Trend Down
• Somebody’s Been Tinkering With The Kool-Aid
• Earnings Preview For Harley-Davidson
• BofA Forgives Home-Loan Principals
• Forex Trading: USDJPY Moves To New Highs
• Swiss Franc: The Upside Prevails
• Japanese Yen: The Upside Prevails
• British Pound: The Upside Prevails
• Euro: The Upside Prevails
• PIMCO’s Bill Gross: Long-Term Bondholders Beware
• Forex Trading: EURUSD Corrects Overnight
• Forex Trading: US Dollar Stronger & EU Summit Begins
• Forex Trading Review For 25/03/2010
• Stock Buy: Starwood Hotels & Resorts Worldwide, Inc.
• Stock Buy: Continental Airlines
• Bear Of The Day: Everest Re (RE)
• Bull Of The Day: Gentiva Health Services (GTIV)
• Stock Buy: American Eagle
• Stock Buy: Amerigroup Corporation

H&R Block Reports Interim Results Posted: 25 Mar 2010 08:00 AM PDT Yesterday, H&R Block Inc. (NYSE:HRB) announced its preliminary tax season results for the interim period through Mar 15, 2010. While the company experienced an improvement in results during the Mar 1 - 15 period, the results were still down for the tax season-to-date through March 15.  For the period March 1 – 15, same-office tax returns prepared in retail operations increased 7.0% from the prior-year period, while total tax returns prepared grew 4.3%. Total retail returns prepared … [visit site to read more]

ConAgra Meets, Stock Tumbles Posted: 25 Mar 2010 07:55 AM PDT ConAgra Foods, Inc. (NYSE:CAG) reported results for the third quarter of fiscal 2010.  During the quarter EPS was 44 cents, up from 40 cents in the year-ago quarter due to a 25% increase in operating profit in the Consumer Foods segment. Reported EPS was in line with the Zacks Consensus Estimate. On a yearly basis, net revenue decreased 0.9% to $3,098.8 million from $3,125.0 million in the same quarter of fiscal 2009. The decrease in total revenue was due to a 6.3% decrease in revenue in the … [visit site to read more]

Encouraging Data On Zalbin Posted: 25 Mar 2010 07:45 AM PDT Recently, Human Genome Sciences Inc. (NASDAQ:HGSI) announced interim results on hepatitis C candidate Zalbin from a mid-stage study. The study evaluated the safety and efficacy of Zalbin. The results revealed that a monthly dose of Zalbin was as effective as a weekly dose of Roche's (RHHBY) Pegasys (peginterferon alfa-2a), which is the current standard of care.   The study combined Zalbin with ribavirin in 391 treatment-naive patients infected with genotypes 2 and 3 hepatitis C. Full … [visit site to read more]

Gap Mulls Australian Venture Posted: 25 Mar 2010 07:30 AM PDT Gap Inc. (NYSE:GPS), a premier global specialty retailer, is planning to open a series of franchise stores in Australia as part of its brisk international expansion. Since its first international venture in Singapore and Malaysia about four years ago, Gap's franchise network has extended to over 130 stores in 20 countries and has established itself as a key business line for the company.   Initially, the company is planning to open 10 to 15 Gap stores across the country; the first is … [visit site to read more]

Stock Market News Briefs: ConAgra Foods, Inc., McCormick & Company, Incorporated, Raytheon Company, Brocade Communications Systems, Inc., Lululemon Athletica Inc., Starbucks Corporation Posted: 25 Mar 2010 07:25 AM PDT  McCormick (NYSE:MKC) beat estimates with fiscal first quarter results of 51 cents, versus Zacks estimates of 48 cents a share on better-than-anticipated revenues of $764.5 million, ahead of Zacks estimates of $761 million  ConAgra (NYSE:CAG) reported inline third quarter earnings of 44 cents a share as revenues of $3.096 billion, were just short of estimates of $3.15 billion  Lululemon (NASDAQ:LULU) topped expectations for its fiscal fourth quarter with earnings of 40 cents, ahead of … [visit site to read more]

Forex Trading: EURJPY Moves Higher On USDJPY Strength Posted: 25 Mar 2010 07:16 AM PDT The EURJPY has move higher over the last few days on the back of the overall selling in JPY. This is despite the sharp fall in the EURUSD over the same period.  The pair remains near the lows - but trades between the consolidation highs and lows on the daily chart.   On the hourly chart, the pair has extended above the 200 hour MA but has run into resistance against the 61.8% retracement of the move down from the Marth 17th high to the March 22nd low.  The high reached … [visit site to read more]

Energizer Holdings Upped To Neutral Posted: 25 Mar 2010 07:15 AM PDT We are upgrading Energizer Holdings, Inc. (NYSE:ENR) to Neutral from our previous Underperform rating indicating that it will continue to perform in line with the market. The target price of $66.00 is based on a P/E multiple of 12.5X our 2010 EPS estimate.   Energizer Holdings' first quarter earnings beat the Zacks Consensus Estimate on higher sales of batteries and razors and increased cost cutting. We also remain upbeat about ENR's personal care division. The feminine and infant care … [visit site to read more]

Eurozone Aside, The UK, Japan And US Are Also Problematic In Terms Of Sovereign Risk Posted: 25 Mar 2010 07:01 AM PDT As traders focus on sovereign risk, they need perspective. Often one’s perception differs from reality. To bring clarity to this issue, earlier this month economists at Royal Bank of Canada published the results of their model. Interestingly, Ireland, not Greece, is the worst sovereign risk of the 21 Developed Countries in the study. http://s.wsj.net/public/resources/documents/st_heatmap022010_20100223.html Economic giant developing BRIC countries (Brazil, Russia, India, and China) were … [visit site to read more]

Everest Re Estimates Trend Down Posted: 25 Mar 2010 07:00 AM PDT We are downgrading our recommendation on Everest Re Group Ltd. (NYSE:RE) to Underperform.   Everest Re has recently announced its initial loss estimates from the earthquake in Chile and the European Windstorm Xynthia. The losses are substantial. The company expects to incur $225 million of losses for the earthquake in Chile and around $25 million for the Windstorm Xynthia.   Everest Re's loss estimates are net of tax and reinstatement premiums. The company said that it was too early … [visit site to read more]

Somebody’s Been Tinkering With The Kool-Aid Posted: 25 Mar 2010 06:53 AM PDT Uh-oh, looks like somebody’s been tinkering with the bullish Kool-Aid. Otherwise, how else to explain the remarks by shipping and real estate industry heavyweights in the following recent reports (italics mine)?  “Container Shipping Industry in ‘Fragile’ State: Maersk” (Agence France-Presse) [Hennie] Van Schoor, [Maersk Line's director of business performance, Asia-Pacific, said there are signs of a pickup in global trade, with the United States and Europe importing more from the rest ... [visit site to read more]

Earnings Preview For Harley-Davidson Posted: 25 Mar 2010 06:45 AM PDT Harley-Davidson Inc. (NYSE:HOG) announced that it will release its first quarter results for 2010 before the market opens on April 20, 2010. The motorcycle maker had disappointed in the fourth quarter of 2009 by reporting a loss of $147.2 million or 63 cents per share compared to an income of $91.9 million or 40 cents in the comparable period a year ago.   The loss is also pronounced compared to the Zacks Consensus Estimate of a loss of 34 cents per share. This was driven by lower shipments … [visit site to read more]

BofA Forgives Home-Loan Principals Posted: 25 Mar 2010 06:30 AM PDT According to the agreement with state attorneys general to help homeowners who got high-risk home loans from Countrywide Financial, Bank of America Corp. (NYSE:BAC) said on Wednesday that it would forgive about $3 billion in principal loan amount to about 45,000 troubled borrowers.   The borrowers had taken those loans before BofA acquired Countrywide Financial in mid-2008. However, following the acquisition, BofA has stopped such loans.   BofA will offer up to 30% of total loan … [visit site to read more]

Forex Trading: USDJPY Moves To New Highs Posted: 25 Mar 2010 06:25 AM PDT  The USDJPY has moved to new highs since January 11th. The price is currently trading at the highs for the day after correcting with the market in earlier action. The 93.12 is the next longer term target for the pair. This is the 50% retracement of the 2009 move down from the high to the low. On the downside, watch the 92.14 level for support. This was the high from February 19th.  The other key downside level is of course the 200 day MA level. This was broken yesterday and helped … [visit site to read more]

Swiss Franc: The Upside Prevails Posted: 25 Mar 2010 06:17 AM PDT Update on supports and resistances. … [visit site to read more]

Japanese Yen: The Upside Prevails Posted: 25 Mar 2010 06:17 AM PDT Update on supports and resistances. … [visit site to read more]

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

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

PIMCO’s Bill Gross: Long-Term Bondholders Beware Posted: 25 Mar 2010 06:01 AM PDT Bill Gross, co-founder and co-CIO of PIMCO, is to my mind one of the shrewdest money men around. His monthly newsletter, this month entitled “Rocking-horse winner”, therefore always makes for thought-provoking reading. Here are a few excerpts from the report: As a November IMF staff position note aptly pointed out, high fiscal deficits and higher outstanding debt lead to higher real interest rates and ultimately higher inflation, both trends which are bond market unfriendly. In the … [visit site to read more]

Forex Trading: EURUSD Corrects Overnight Posted: 25 Mar 2010 05:30 AM PDT The EURUSD has corrected overnight on Trichets emergency collaterol rules beyond 2010.  Nevertheless, the extension has had a limited impact to the EURUSD - at least in relation to the fall that has occurred over the last few days.  The pair remains down near the bottom of the weeks range.  The correction from the high for the week to the low for the week has remained below the 38.2% of the range. That level comes in at the 1.3392. The high today only extended to 1.3370. The … [visit site to read more]

Forex Trading: US Dollar Stronger & EU Summit Begins Posted: 25 Mar 2010 05:21 AM PDT The USD buying continued overnight and indeed accelerated, as China threw some contentious comments into the Eurozone debate. The Greek issue clearly remains in the forefront, as EU officials convene in Brussels today for a two-day summit. At this point, a solution seems a far way off, as decision makers remain divided from an economic standpoint as well as political. German chancellor Merkel provided additional bailout squashing rhetoric, saying there wouldn’t be any concrete financial recues … [visit site to read more]

Forex Trading Review For 25/03/2010 Posted: 25 Mar 2010 05:02 AM PDT USD Dollar (USD) The Dollar has consolidated major gains across the board.. The Dollar rose also after stocks in the US ended with losses. The Dow Jones lost -0.48% and the NASDAQ fell by -0.68% after an unexpected drop of -2.2% in New Home Sales which came out 308K, worse than 315K expected. Crude Oil for May delivery declined -1.8% and closed at 80.2$ a barrel. Gold (XAU) tumbled closing at 1086$ an ounce. Today, Initial Jobless Claims are expected with 450K vs. 457K previously. EURO … [visit site to read more]

Stock Buy: Starwood Hotels & Resorts Worldwide, Inc. Posted: 24 Mar 2010 10:00 PM PDT Starwood Hotels & Resorts Worldwide, Inc. (NYSE:HOT) recently hit a new 52-week high on the company’s cautious optimism for 2010 as high-end consumers drive demand for it’s high-margin rooms and suites. Company Description Starwood Hotels & Resorts Worldwide, Inc. together with its subsidiaries, operates as a hotel and leisure company worldwide under such names as St. Regis, The Luxury Collection, W, Westin, Sheraton and Four Points. The company primarily operates luxury and higher-end … [visit site to read more]

Stock Buy: Continental Airlines Posted: 24 Mar 2010 10:00 PM PDT Continental Airlines (NYSE:CAL) estimates are rising at a break-neck pace and shares just set a new multi-year high. Company Description Continental Airlines is one of the world’s largest airlines with more than 2,500 flights across North America, Europe and Asia on a daily basis. The Houston-based company has a market cap of more than $3 billion and is a Zacks #1 Rank stock. Turning a Profit Continental Airlines reported fourth-quarter results back in January and saw net income of $4 million, or … [visit site to read more]

Bear Of The Day: Everest Re (RE) Posted: 24 Mar 2010 10:00 PM PDT We are downgrading our recommendation on Everest Re (NYSE:RE) to Underperform. The company recently announced its initial loss estimates from the earthquake in Chile and the European Windstorm Xynthia. The losses are substantial. Also, the company’s fourth quarter earnings missed the Zacks Consensus Estimate, primarily as a result of prior-year reserve additions. Going forward, the casualty line and the marine books are expected to decline due to tough market conditions. Additionally, the … [visit site to read more]

Bull Of The Day: Gentiva Health Services (GTIV) Posted: 24 Mar 2010 10:00 PM PDT Gentiva Health Services Inc. (NASDAQ:GTIV) reported a fourth-quarter (ended January 3, 2010) income (excluding special items) of $0.63 per share, surpassing the Zacks Consensus Estimate by 9 cents. Gentiva is a leading provider of home health and hospice services. It delivers innovative, high-quality care to patients across the United States. The company boasts of a diversified product portfolio. Gentiva serves patients in more than 300 locations across 39 states. The company has successfully grown … [visit site to read more]

Stock Buy: American Eagle Posted: 24 Mar 2010 10:00 PM PDT American Eagle (NYSE:AEO) matched fourth-quarter estimates, but management guided higher for the first quarter of fiscal year 2011. Company Description American Eagle Outfitters is a specialty retailer of all-American casual apparel, accessories, and footwear for men and women between the ages of 16 and 34. The company is focused on several core brand and merchandising strategies to differentiate the company from competition, improve profitability and increase sales. Fourth-Quarter Results Sales … [visit site to read more]

Stock Buy: Amerigroup Corporation Posted: 24 Mar 2010 10:00 PM PDT Amerigroup Corporation (NYSE:AGP) has surprised on the Zacks Consensus 2 out of the last 4 quarters by an average of 51.8%. AGP has attractive valuations, with a price-to-book ratio of just 1.7. Company Description Amerigroup provides healthcare access to the financially vulnerable, seniors and people with disabilities by developing multi-state managed health services for the public sector. The company services 1.8 million people in Florida, Georgia, Maryland, New Jersey, New Mexico, New York, … [visit site to read more]

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