Mar 16, 2010

Daily Markets - Financial News And Opinions

Daily Markets - Financial News And Opinions

It’s Time To Invest In Canada

Posted: 16 Mar 2010 12:01 PM PDT

This isn’t the first time that I’ve written about Canada, a well-run country that has avoided many of the mistakes made by the United States. Its budget deficit is moderate, its balance-of-payments deficit is also small, its banking system is in pretty good shape and it faces very little inflation risk, since the country has maintained a reasonable monetary policy.

At this point, you might well be asking: Well, if you’ve said this all before, why does it bear repeating now?

The … [visit site to read more]


Stronger Warning For Plavix

Posted: 16 Mar 2010 11:50 AM PDT

Recently, the U.S. Food and Drug Administration (FDA) added its strongest warning to the label for blood thinner drug Plavix. Plavix is Bristol-Myers Squibb's (NYSE:BMY) lead drug. It is an antiplatelet blood thinner indicated to reduce the risk of heart attack in patients with atherosclerosis (the build-up of plaque and hardening of the arteries). The blockbuster drug is co-marketed by Bristol-Myers Squibb and Sanofi-Aventis (NYSE:SNY). 

While adding a boxed warning to Plavix, the U.S. … [visit site to read more]

CNOOC Plans JV In Argentina

Posted: 16 Mar 2010 11:35 AM PDT

To expand the company's global footprints, CNOOC Ltd (NYSE:CEO) expects to form a joint venture with Argentina's oil and gas producer Bridas Energy Holdings.
 
CNOOC has proposed a 50/50 joint venture with Bridas Energy Holdings Ltd in Bridas Corporation for a consideration of approximately $3.1 billion in cash, which will be funded by the internal resources of the company.
 
This transaction coincides with CNOOC's strategy of expanding its reach into Latin America and other … [visit site to read more]

Setback For MannKind

Posted: 16 Mar 2010 11:17 AM PDT

MannKind Corp. (NASDAQ:MNKD) suffered a major setback with respect to its lead product, Afrezza, inhaled insulin for treating type I and type II diabetes. The company received a complete response letter (CRL) from the US Food & Drug Administration (FDA) recently.
 
The FDA has asked MannKind for certain additional information and clinical data that has been submitted along with the New Drug Application (NDA). The agency has also asked for information about the commercial version of the … [visit site to read more]

Boston Scientific Gets Approval

Posted: 16 Mar 2010 11:02 AM PDT

Boston Scientific Corp. (NYSE:BSX) recently received the U.S. Food and Drug Administration (FDA) approval for its Express LD Iliac Premounted Stent System for use in iliac arteries. Boston expects to launch the product immediately in the U.S. 

The Express LD Iliac Premounted Stent is already approved for iliac use in several international markets. Furthermore, the stent has received the CE Mark approval for sale in European markets. However, it is the first and only low-profile, premounted, … [visit site to read more]

Finding Value In Industrial Stocks

Posted: 16 Mar 2010 11:01 AM PDT

If you believe the U.S. economy is slowly but surely improving, then these economically sensitive industrial goods stocks could be very profitable at this time in the cycle.

“They [the Federal Reserve] want to see how the tug of war between the cyclical tailwinds and the structural headwinds plays out…”
- Pimco CEO Mohamed El-Erian

U.S. Stocks and Cyclical Tailwinds Attracting Investors

In a matter of months, from an investing perspective, the world has turned into a dangerous … [visit site to read more]

The Emerging Market Shift Of Global Economics

Posted: 16 Mar 2010 11:00 AM PDT

Here in Laguna Beach today, it feels like summer. Gentle ocean breezes struggle to keep the mercury below 80 degrees, as beachgoers of all ages struggle to avoid sunburn while basking in the sun.
The conditions on Wall Street are not so different. Freakishly pleasant trading action is luring investors into a stock market that seems inviting and serene. For more than a year, investors have been basking in the comfort of steady capital gains. The trick, of course, is to avoid getting … [visit site to read more]

AIG Raises $452M From Stake Sale

Posted: 16 Mar 2010 10:47 AM PDT

Yesterday, American International Group Inc. (NYSE:AIG) announced that it has raised $452 million from its stake sale in the reinsurance company Transatlantic Holdings Inc. (NYSE:TRH). 

AIG closed the secondary public offering of 8,466,693 shares of Transatlantic common stock owned by American Home Assurance Co. (AHAC), a subsidiary of AIG. The offering was priced at $53.35 each, generating gross proceeds of approximately $452 million. Of the total offering, Transatlantic bought 2 million … [visit site to read more]

AXIS Capital Predicts Prelim Losses

Posted: 16 Mar 2010 10:32 AM PDT

Yesterday, AXIS Capital Holdings Ltd. (NYSE:AXS) provided its preliminary loss estimates from the earthquake in Chile and the European Windstorm Xynthia.
 
AXIS Capital announced that it expects to incur net losses between $60 million and $125 million for the earthquake. The 8.8 magnitude earthquake that occurred off the coast of the Maule Region of Chile on Feb 27 has left over 497 dead and hundreds missing. Industry insured losses for the earthquake is estimated between $4 billion and $8 … [visit site to read more]

Amylin Drug Approval Delayed

Posted: 16 Mar 2010 10:17 AM PDT

The US Food and Drug Administration (FDA) recently issued a complete response letter delaying the approval of Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN), Eli Lilly and Co. (NYSE:LLY) and Alkermes, Inc.'s (NASDAQ:ALKS) once weekly formulation of Byetta (exenatide). The companies are seeking to get Byetta once weekly (proposed trade name: Bydureon) approved for the treatment of type II diabetes.
 
Despite the delay, both Amylin and Alkermes shares were up significantly as the agency did not ask the … [visit site to read more]

Mutual Funds: Top 4 European Funds

Posted: 16 Mar 2010 10:12 AM PDT

The European region is one of the most diverse economic zones in the world with a combination of mature developed markets and fast emerging economies. Foreign direct investment continues to grow in the region and this trend along with high commodity prices should ensure that emerging markets in regions like the Mediterranean and Eastern Europe will maintain their impressive growth rates. Developed markets are also showing signs of recovering from the recent economic slowdown. Since they harness … [visit site to read more]

American Military: Trust In The Last Vestige Of US Dominance

Posted: 16 Mar 2010 10:08 AM PDT

This must be some kind of golden age for government. In the US, the feds have seized major stakes in banking, autos, insurance and mortgage finance industries.
The Chinese are paying for their enterprises. They already own footholds in some of the most important companies in the US. Yesterday, they announced another big move. CNOOC, China's state-owned energy company, is buying half of Argentina's second largest oil producer, Bridas. The Chinese have described the deal as giving them a … [visit site to read more]

CA Fortifies Virtualization Platform

Posted: 16 Mar 2010 10:02 AM PDT

The world's leading information technology (IT) management software sompany CA Inc. (NASDAQ:CA) recently disclosed through a press release that its virtualization management solutions now support Sun’s Solaris Zones virtualization platform. 

This enhanced service from CA is expected to help enterprise and service customers realize greater cost optimization, increase efficiency and enhance their cloud computing infrastructure. This is one of the biggest joint ventures that CA has entered in … [visit site to read more]

Housing Starts Slow

Posted: 16 Mar 2010 09:50 AM PDT

In February, Housing Starts fell to a seasonally adjusted annual rate of 575,000, a decline of 5.9% from the revised January level and just 0.2% above a year ago. While on first blush the data looks quite negative, there are many caveats.
First, while the data is seasonally adjusted, the weather was much worse this year than last, and that might have had an effect, especially when looking at the regional breakdown. Starts were down by 9.6% in the Northeast on the month, but up 6.5% year over … [visit site to read more]

Wider Q4 Loss For Medivation

Posted: 16 Mar 2010 09:47 AM PDT

Medivation Inc. (NASDAQ:MDVN) reported dismal results in the fourth quarter of 2009 with net loss coming in at 78 cents per share, wider than the Zacks Consensus Estimate of a net loss of 57 cents and the year-ago net loss of 26 cents.
 
Despite full year revenues increasing to $69.3 million, net loss increased due to higher operating expenses. Net loss for 2009 came in at $1.71, wider than the Zacks Consensus Estimate of a net loss of $1.42. 

Full year revenues consisted of partial … [visit site to read more]

 2010 Economic Forecast, Commonwealth Club, San Francisco, CA,…

Posted: 16 Mar 2010 09:47 AM PDT

 2010 Economic Forecast, Commonwealth Club, San Francisco, CA, January 22, … [visit site to read more]

Video: Weak Economic Data Hampers Higher-Yielding Currencies

Posted: 16 Mar 2010 09:45 AM PDT

Higher-yielding currencies this session were on the downside following weak economic data. … [visit site to read more]

Netflix Picks Akamai For Streaming

Posted: 16 Mar 2010 09:32 AM PDT

The DVD and streaming video company Netflix Inc. (NASDAQ:NFLX) announced that it has selected Akamai Technologies, Inc. (NASDAQ:AKAM) as its primary content delivery network for movies and TV episodes streamed instantly over the Internet. 

Netflix is the largest online movie rental subscription service in the United States providing subscribers access to more than 18,000 movies, television and other filmed entertainment titles. 

Netflix has a strong subscriber base due to better subscription … [visit site to read more]

EMC Appoints New CMO

Posted: 16 Mar 2010 09:17 AM PDT

EMC Corp. (NYSE:EMC), a leading provider of storage hardware and software has appointed Jeremy Burton as its new Executive Vice President and Chief Marketing Officer (CMO). Mr. Burton will report to Joe Tucci, EMC’s Chairman and Chief Executive Officer (CEO). 

Mr. Burton will be responsible for the global structure, strategy, and execution of all of the aspects of EMC’s marketing efforts. Burton has extensive knowledge and experience in software and has the relevant marketing leadership to … [visit site to read more]

Pop Culture Indicator: Wall Street Sequel Release Foretells “Collapse Of Our Society”

Posted: 16 Mar 2010 09:15 AM PDT

Oliver Stone's latest effort to tap into the "collective unconscious" of Americans at this juncture in history by releasing a "Wall Street" movie sequel could indicate that a new economic collapse is in the offing. Or, so suggests Paul Farrell in a recent MarketMatch commentary.
The new film, "Wall Street: Money Never Sleeps" (trailer below), is coming to movie theaters about 23 years after the original was released. Yet, Farrell reminds us that the timing may not be as … [visit site to read more]

Dell Initiates Legal Action

Posted: 16 Mar 2010 09:02 AM PDT

Leading computer manufacturer Dell Inc. (NASDAQ:DELL) recently filed lawsuits against five Japanese and Taiwanese technology companies, which have formed a cartel to fix the price of liquid crystal display panels. The five companies named in the lawsuit include Sharp Corporation, Toshiba Corporation, Hitachi Ltd., Japan's Seiko Epson, and Taiwan 's HannStar. 

According to information published by Bloomberg, Dell has alleged that these flat-panel display manufacturers have been working … [visit site to read more]

BofA Eyes Expansion In China

Posted: 16 Mar 2010 08:47 AM PDT

According to a Wall Street Journal report, Bank of America Corporation (NYSE:BAC) is looking to expand its operations in China. Currently, the bank has some investment banking and lending operations in the country. BofA also owns a minority stake in China Construction Bank.
 
According to the source, BofA is now considering operating locally in China, which implies that it would have to invest a significant amount of new capital. Expectedly, BofA will bulk up its commercial business in … [visit site to read more]

Forex Trading: EURGBP Move Higher Pushes EURUSD Back Down, GBPUSD Back Up

Posted: 16 Mar 2010 08:44 AM PDT

NuStar Cut To Underperform

Posted: 16 Mar 2010 08:31 AM PDT

We are downgrading NuStar Energy L.P. (NYSE:NS) units to Underperform from Neutral, reflecting the challenging business environment for pipeline operators.
 
The current economic downturn and the resulting commodity-price weakness, coupled with reduced access to the credit markets, have led to lower spending by consumers and businesses on transportation fuels such as gasoline, aviation fuel and diesel. This translates into less transportation volumes for pipeline operators such as NuStar, … [visit site to read more]

Forex Trading: GBPUSD Pushes Higher. Consolidation Highs All Provide Challenges Above.

Posted: 16 Mar 2010 08:29 AM PDT

THE GBPUSD has continued it's push higher reaching a high of 1.5182 in the process. The pair has moved back down and has 1.5151 now as intraday support for the pair. 
There was a triple high off the hourly chart at 1.5194.  The high for the week extended to a high of 1.5206. The high from Friday came in at 1.5216.  All these levels are target levels to the … [visit site to read more]

Morning Stock Market Movers: E*Trade Financial, Harley-Davidson, St. Jude Medical

Posted: 16 Mar 2010 08:25 AM PDT

Harley-Davidson, Inc. (NYSE:HOG) - Options investors are going hog-wild for HOG-calls this morning on speculation that motorcycle-maker, Harley-Davidson, could be the purchase target in a leveraged buyout offer by a private equity firm. Shares are up 5.45% to $27.95 on the LBO rumors, and the overall reading of options implied volatility on the stock is also 15.1% higher to 43.58%. Bullish players purchased 2,700 now in-the-money calls at the March $27 strike for a premium of $0.57 apiece, while … [visit site to read more]

Chinese Demand For US Debt: Knowing Who Butters Your Bread

Posted: 16 Mar 2010 08:19 AM PDT

We had a pretty busy day in the currency markets yesterday, with the dollar rising sharply in the morning only to sell off again after lunch. The selling continued in Asian trading, and the dollar index is back down to levels it was at this time yesterday morning. These roller coaster rides will probably continue, as the markets just don't seem to know where to take the currencies. Short-term moves will continue to be exaggerated, but the long-term dollar continues to be in place.
As I … [visit site to read more]

Australian Dollar: Rebound Expected

Posted: 16 Mar 2010 08:17 AM PDT

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

Canadian Dollar: Caution

Posted: 16 Mar 2010 08:17 AM PDT

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

Conoco To Develop Off Norway

Posted: 16 Mar 2010 08:16 AM PDT

ConocoPhillips (NYSE:COP) has recently submitted its proposals to the Norwegian Oil Ministry for further development of the North Sea Ekofisk South and Eldfisk offshore fields.
 
While the company said that final investment decisions will be taken in 2011, the estimated amount for both the fields is expected to be $12.2 billion, including $4.28 billion − $5.14 billion on Ekofisk South field and $6 billion − $7.1 billion on Eldfisk II. Both fields are part of the Greater Ekofisk Area that … [visit site to read more]

US Broadband: FCC’s Blueprint

Posted: 16 Mar 2010 08:02 AM PDT

The US telecom regulator Federal Communications Commission (FCC) has outlined its goals for the "National Broadband Plan” (NBP), which the agency will deliver to the Congress on March 16, 2010. The regulator has drafted ambitious proposals that will revolutionize the US broadband industry and provide the necessary infrastructure to connect all the corners of the nation.
 
As a reminder, the NBP is aimed at setting up strategies and appropriate regulatory framework to promote adoption, … [visit site to read more]

Video: “The Fed WILL Raise Rates Soon, We Just Don’t Know When”

Posted: 16 Mar 2010 08:02 AM PDT

Floor trader David Henderson discusses his perspective regarding the upcoming Fed rate decision and shares when he believes rates will begin rising. … [visit site to read more]

Stock Market Buying Power Hits New Rally High, As Demand Outpaces Supply

Posted: 16 Mar 2010 08:01 AM PDT

Checking in with the volume experts over at Lowry Research Corp., it appears that U.S. stock market buying power hit a new rally high last week, while selling pressure hit a new low.

That reflects the same pattern of expanding demand and contracting supply that has characterized the entire rally out of the March 2009 lows - a rally that’s now one year old.

According to Lowry analysts, if you look back over the past eight decades, every major market top has been preceded by a … [visit site to read more]

Forex Trading: EURUSD Breaks Higher. Greece Removed From S&P Watch List.

Posted: 16 Mar 2010 07:58 AM PDT

The high for the week is 1.3777.  The high last week was 1.3796. Longer term the resistance remains at the 1.3852-1.3873 area (see chart below).
 
Greece removed from watch list of … [visit site to read more]

Video: Hang Seng Fails To Hang On To Gains

Posted: 16 Mar 2010 07:45 AM PDT

Hong Kong’s Hang Seng index was on the downside this session following concerns over China’s central bank possibly stepping up its monetary tightening measures. … [visit site to read more]

Stock Buy: Aggressive Growth Stock Picks- March 15, 2010

Posted: 15 Mar 2010 10:00 PM PDT
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