Thursday, July 22, 2010

Daily Markets - Hot Stock News For Thursday 22 July: Morgan Stanley, Wells Fargo, Apple, BP, GlaxoSmithKline, RBS, Qualcomm, eBay, Starbucks, Baidu

Daily Markets - Hot Stock News For Thursday 22 July: Morgan Stanley, Wells Fargo, Apple, BP, GlaxoSmithKline, RBS, Qualcomm, eBay, Starbucks, Baidu

Hot Stock News For Thursday 22 July: Morgan Stanley, Wells Fargo, Apple, BP, GlaxoSmithKline, RBS, Qualcomm, eBay, Starbucks, Baidu

Posted: 22 Jul 2010 03:36 AM PDT

Equities finished in negative territory despite some encouraging earnings before the bell from the likes of Morgan Stanley (NYSE:MS) (+6.26%) and Wells Fargo (NYSE:WFC) (+0.58%). Apple (NASDAQ:AAPL) (+0.93%) saw decent gains after they reported impressive numbers at the close of the previous session. The early down-tick arose on speculation of a large S&P 500 order and also due to EU stress test jitters in the back ground. Equities were range-bound ahead of Bernanke’s testimony but plunged … [visit site to read more]

China Holds An Unpleasant Surprise For The World’s Economies

Posted: 22 Jul 2010 03:01 AM PDT

China implemented one of the world’s most aggressive economic stimulus programs to fight the recession of 2008. And the country went on something akin to a debt binge.

Credit growth surged as much 50 percent - an unprecedented peak. Such a policy can jump start an economy. But it lays the groundwork for imbalances and major bubbles.

Yes, I am aware that China is said to be different … but I don’t believe it!

Instead I’m fully convinced that even Chinese central planners … [visit site to read more]

Forex Trading: Eurozone Industrial New Orders

Posted: 22 Jul 2010 02:02 AM PDT

The euro is once again trading higher after June industrial new orders came in better than expected at 3.9% versus the forecast of -0.1% and the prior reading of … [visit site to read more]

Mining Stocks Waiting For Take Off!

Posted: 22 Jul 2010 02:01 AM PDT

Ever been in one of those big airports, stuck in a jet on the tarmac behind a line of other jets a mile long?  I have.  And it is really frustrating, isn’t it?

Well, here are 7 mining stocks that are getting darned tired of sitting on the groud. All they want is for someone to give them clearance and fly they will.

A couple, if you look carefully, are already trying to fly.  I guess they are the most bored or impatient of the group.  LOL

We begin with ANOORAQ RESOURCES … [visit site to read more]

Forex Trading: CAD Still On The Move

Posted: 22 Jul 2010 01:39 AM PDT

In the prior post we said that 1.0439 was the next target if the pair could make a break to the downside; the momentum has continued and the pair has moved through that level with the the 200 moving average (1.0414) as the next … [visit site to read more]

Forex Trading: Euro Higher On More Positive Data

Posted: 22 Jul 2010 01:04 AM PDT

The euro has furthered its gains after the release of more positive data out of the Eurozone.

Flash Manufacturing PMI - Survey: 55.2   Actual: 56.5   Prior: 55.6
Flash Services PMI - Survey: 55.0   Actual: 56.0   Prior: … [visit site to read more]

Forex Trading: CAD Trading Sideways

Posted: 22 Jul 2010 12:38 AM PDT

After retracing 61.8% of the move from the high on July 20th to the low on the 21st, USD/CAD has been trading sideways so far this session bouncing back and forth between the 61.8% and 50.0% lines. With the pair now attempting to break through to the downside, a close below may see the pair trade down to the 38.2% fibo line at … [visit site to read more]

Forex Trading: Euro Higher On German PMI

Posted: 22 Jul 2010 12:35 AM PDT

The euro made gains against all of the major currencies after Germany's June PMI came at better than expected. The details are as follows:

Flash Manufacturing PMI - Survey: 58.0   Actual: 61.2   Prior: 58.4
Flash Services PMI - Survey: 54.6   Actual: 57.3   Prior: 54.8

Following the release the EUR made a new session high of  1.2796 against the … [visit site to read more]

Forex Trading: EUR And GBP Tumble Following Bernanke Speech

Posted: 21 Jul 2010 11:54 PM PDT

EUR and GBP Tumble Following Bernanke Speech
Both the euro and British pound fell against the safe haven currencies yesterday, following a speech from FED Chairman Bernanke which caste doubt over the pace of the global economic recovery. While the euro has traded steadily against the U.S. dollar in overnight trading, it continues to fall against the yen.
Economic News
USD - USD Sees Moderate Gains Following Return to Risk Aversion
The U.S. dollar broke the bearish trend it had been … [visit site to read more]

Batteries Are The Shocking Truth About Electric Cars

Posted: 21 Jul 2010 10:01 PM PDT

Can white elephants come in green?

President Barack Obama flew to Holland, Mich., on Thursday to attend groundbreaking ceremonies for a new lithium-ion battery plant, which the White House advertised as an example of federal stimulus grants at work and a gateway to a clean-energy future.

Great stuff - if you don’t look too hard.

Indeed, the Holland plant, effusively hailed by Michigan Gov. Jennifer Granholm as creating 300 jobs, and 62,000 “green” jobs down the road, will produce … [visit site to read more]

Crude Oil Falls On Bearish Inventory Data, Gold Seesaws Lower

Posted: 21 Jul 2010 09:42 PM PDT

Crude oil took its cues from the DOE inventory report in Wednesday’s session, but volatility remains extremely low. Gold is exhibiting an interesting correlation.
Commodities - Energy
Crude Oil Falls on Bearish Inventory Data
Crude Oil (WTI)        $76.53       -$0.03        -0.04%

Commentary: Crude oil is flat after shedding $0.88, or 1.14% on Wednesday. The primary catalyst for the move was the DOE inventory report, which … [visit site to read more]

One More Reason Wal-Mart Deserves Nobel Prize

Posted: 21 Jul 2010 08:45 PM PDT

NY Times Economix Blog — “Mr. Mobarak, a Bangladeshi who has advised his country's government, found that the presence of apparel jobs in Bangladesh appears to bolster school enrollments of girls, especially for young girls (see chart above).

"A doubling of garment jobs causes a 6.71 percent increase in the probability that a 5-year-old girl is in school," Mr. Mobarak writes in a summary of his findings.

For India, Bangladesh and other developing countries, these findings provide a … [visit site to read more]

Did Taxpayers’ $3.7 Trillion Bailout Save The U.S. Housing Market?

Posted: 21 Jul 2010 08:21 PM PDT

The amount of taxpayer dollars directed at the Troubled Asset Relief Program (TARP) continues to grow but with little economic progress being made, particularly in the housing market.

Total taxpayer support for the mortgage market rose by $700 billion in the past year to $3.7 trillion, Neil Barofsky, the Special Inspector General for TARP, said his quarterly report to Congress.

“Indeed, the current outstanding balance of overall Federal support for the nation’s financial … [visit site to read more]

Hedge Fund Manager David Einhorn Establishes Position In Apple

Posted: 21 Jul 2010 08:17 PM PDT

Until recently, Apple (NASDAQ:AAPL) had been hitting on all cylinders. Its products were selling like hotcakes with fans lining up for hours for the latest Apple products which include the iPhone 4, iPad and the iMac. That is until recently. In the past month or so, the stock has been hit hard as a defected antenna has led the iPhone 4 to unexpectedly drop calls. The defected antenna has gained so much negative publicity due to the high cost of the iPhone 4 that there are rumors out there that … [visit site to read more]

Crude Oil Inventory Watch: Week Ending 7/16/2010

Posted: 21 Jul 2010 07:26 PM PDT

Inventories
The Department of Energy reported that in the week ending July 16, 2010, U.S. crude oil inventories increased by 0.4 million barrels, gasoline inventories increased by 1.1 million barrels, distillate inventories increased by 3.9 million barrels, and total petroleum inventories increased 5.1 million barrels. While crude oil inventories finally managed to reverse some of the steep withdrawals of the past two weeks, product inventories added to their steep builds on the back of … [visit site to read more]

Despite Positive Earnings, Ben Bernanke Spooks Market With Talk Of “Unusual Uncertainty”

Posted: 21 Jul 2010 06:17 PM PDT

After hearing Big Ben state that there’s “unusual uncertainty” concerning our nation’s economic outlook, market players were not really enthusiastic. Market volatility picked up after these statements — the VIX finished up 1.71, putting more pressure on stocks. Keep an eye on the 28 level on the VIX, if broken could be a flag for some more potential pressure on securities. We have claims and housing data due out tomorrow morning, so these economic results could potentially add even more … [visit site to read more]

Crude Suffers A Steep Decline Through The US Session, Though Commodity Still Well Within Its Range

Posted: 21 Jul 2010 06:12 PM PDT

Though there wasn't much scheduled macro economic data on the docket nor is there a distinct trend in underlying sentiment ahead of the what is considered heavy risk on Friday; oil would put in for a substantial move through Wednesday's US trading hours. In fact, the decline through the day was the sharpest since the 12th.
North American Commodity Update
Commodities - Energy
Crude Suffers a Steep Decline Through the US Session, Though Commodity Still Well Within its Range
Crude Oil (LS … [visit site to read more]

Stock Picks For Thursday 22 July: Motorola, American Oriental Bioengineering, Somaxon Pharmaceutical, Royale Energy, Hemispherx Biopharma, Generex Biotechnology

Posted: 21 Jul 2010 06:11 PM PDT

( click to enlarge )

American Oriental Bioengineering (NYSE:AOB) - The stock has been on a deep downtrend, falling from a high of $6.38 down to its current price of around $2.42. The technical chart indicates that stock seems to be stabilizing. The volume has been quite modest, however the stochastics are oversold which could power the rally that I think is coming. I’m a buyer of AOB once it breaks $2.49 for a possible breakout move. The stock could have good upside potential, so watch … [visit site to read more]

Forex Trading: EUR/JPY Selling Off

Posted: 21 Jul 2010 06:00 PM PDT

The Yen crosses have been under pressure following Bernanke's testimony, which left a lot to be desired for the bulls lout there. For the EUR/JPY cross we see the 50% retracement in striking distance, where we could see some support for the … [visit site to read more]

Switzerland Under Siege: Free Markets May Yet Save The Swiss Franc

Posted: 21 Jul 2010 05:01 PM PDT

Efforts are underway to undermine Switzerland’s rock solid reputation as a safe haven. The alpine nation, famous for its readiness against enemies with citizens storing military assault rifles at their homes, is under attack. The attack, however, comes from one of their own, the guardian of the Swiss franc: the Swiss National Bank (SNB). In any other country, a central bank may have the power to derail the currency; in Switzerland, however, efforts to undermine the franc may be more … [visit site to read more]

‘Anyway You Cut It - Sales Just Aren’t Cutting It’

Posted: 21 Jul 2010 04:25 PM PDT

As a long-time market-watcher, I get a kick out of those countless Wall Street “experts” who focus so slavishly on “the number.” You know, earnings per share, or EPS: the manipulated, expectations-managed data point that “analysts” view as their raison d’etre.
Even though it’s been obvious for years that corporate America, including companies like Apple and IBM, are playing these fools guys (and gals) like a finely-tuned fiddle, the highly-paid Wall Street types still seem totally clueless … [visit site to read more]

California Mortgage Defaults Fall To 3-Year Low

Posted: 21 Jul 2010 03:03 PM PDT

DQNews — “The number of California homes pushed into the formal foreclosure process between April and June dropped for the fifth consecutive quarter to the lowest level in three years. The declines were greatest in the most affordable areas, where foreclosure activity continues to fall from extremely high levels over the past two years.  Highlights include:

1. A total of 70,051 Notices of Default (NODs) were filed at county recorder offices during the April-to-June period. That was down … [visit site to read more]

These 72 Analysts Believe Gold Will Go Parabolic To Between $2,500 And $15,000

Posted: 21 Jul 2010 03:01 PM PDT

Believe it or not but I have identified 72 economists, academics, gold analysts and market commentators who have developed sound rationale as to why gold could quite possibly go to a parabolic top of at least $2,500 an ounce to even as much as an unimaginable $15,000 before the bubble finally pops!

When I first began writing about such projections (http://www.munknee.com/2010/06/why-many-analysts-see-gold-going-as-high-as-10000/) I was satisfied with identifying 10 individuals who were of … [visit site to read more]

SWK’s 2Q Surpasses Zacks Estimate

Posted: 21 Jul 2010 03:00 PM PDT

Stanley Black & Decker (NYSE:SWK) has reported financial results for the second quarter of 2010. Earnings per share from continuing operations were $1.24, up 39.3% compared with 89 cents in the comparable quarter of 2009. EPS surpassed the Zacks Consensus Estimate of 77 cents.

Net income from continuing operations soared 191.1% year over year to $206.1 million, compared with $70.8 million in the second quarter of 2009. The increase in net income was due primarily to growth in revenue that … [visit site to read more]

Host Hotels Marginally Beats

Posted: 21 Jul 2010 03:00 PM PDT

Host Hotels & Resorts Inc. (NYSE:HST), the largest lodging real estate investment trust (REIT) in the U.S., reported second quarter 2010 FFO (funds from operations) of $151 million or 23 cents per share, compared to $68 million or 12 cents per share in the year-earlier quarter. Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income. The second quarter FFO marginally beat the … [visit site to read more]

M&T Bank Tops On Margin Expansion

Posted: 21 Jul 2010 02:50 PM PDT

M&T Bank Corporation's (NYSE:MTB) second quarter operating earnings of $1.53 per share left behind the Zacks Consensus Estimate of $1.25. Earnings nearly doubled from 79 cents per share earned in the prior-year quarter, aided by an expansion in net interest margin coupled with lower credit costs.

On a GAAP basis, the company reported a net income of $188.75 million or $1.46 per share, compared with $51.19 million or 36 cents per share in the prior-year quarter.

The favorable comparison is … [visit site to read more]

We’re In A One-and-a-half Dip Recession

Posted: 21 Jul 2010 02:30 PM PDT

We're not in a double-dip recession yet. We're in a one and a half dip recession.
Consumer confidence is down. Retail sales are down. Home sales are down. Permits for single-family starts are down. The average work week is down. The only things not down are inventories – unsold stuff is piling up in warehouses and inventories of unsold homes are rising – and defaults on loans.
The 1.5 dip recession should be causing alarm bells to ring all over official Washington. It should cause … [visit site to read more]

Amphenol Tops, Stays At Outperform

Posted: 21 Jul 2010 02:30 PM PDT

Amphenol Corporation (NYSE:APH) reported earnings per share (EPS) of 74 cents in the second quarter of 2010, including a benefit of $10 million or 6 cents per share relating to a reduction in tax expense for tax reserve adjustments, primarily related to the completion of the audits of certain prior-year tax returns.

Excluding these items, EPS was 68 cents, beating the Zacks Consensus Estimate of 61 cents, as well as the year-ago result of 43 cents.

Sales came in at $885 million, up 29.1% from … [visit site to read more]

Textron Beats, Raises Estimates

Posted: 21 Jul 2010 02:30 PM PDT

Textron Inc. (NYSE:TXT) posted earnings per share of 29 cents for the quarter excluding one-time items, handsomely outpacing both the Zacks Consensus Estimate of 10 cents and the year-ago quarterly earnings of 8 cents per share. On a reported basis, after including a restructuring charge, income from continuing operations came in at 27 cents in the reported quarter, compared to a loss of 23 cents in the year-ago quarter.

Operational Results

Textron in the reported quarter witnessed 3.7% higher … [visit site to read more]

Comerica Turns To Profit, Beats

Posted: 21 Jul 2010 02:20 PM PDT

Comerica Incorporated (NYSE:CMA) reported second-quarter 2010 net income of 39 cents per share, easily beating the Zacks Consensus Estimate of 23 cents. Results were far ahead of the prior-year quarter, as second-quarter 2009 had incurred a loss of 11 cents and the prior quarter had incurred a loss of 46 cents.

Net income attributable to common share holders of Comerica totaled $69 million, compared to a net loss of $16 million in the second quarter of 2009 and net loss of $71 million in the … [visit site to read more]

Potential Revenue Disappointers

Posted: 21 Jul 2010 02:20 PM PDT

If there is one thing the market does not seem to tolerate these days, it is companies missing on the top line. This earnings season a company can simply blow the doors off of consensus estimates on the bottom line, but if the improvement all came from better than expected margins, and revenues were lighter than expected, the stock gets pummeled.

While this infatuation with revenues at the expense of earnings is probably not permanent, it will probably hold for the rest of the earnings season. … [visit site to read more]

Genzyme Misses By A Wide Margin

Posted: 21 Jul 2010 02:00 PM PDT

Genzyme Corporation (NASDAQ:GENZ) reported second quarter earnings of 6 cents per share (excluding one-time items but including the impact of stock-based compensation expense), well below the Zacks Consensus Estimate of 36 cents and the year-earlier earnings of 64 cents. Excluding the impact of stock-based compensation expense, earnings came in at 18 cents.

With the company yet to emerge from manufacturing problems, we were not surprised to see the dismal second quarter results. Second quarter … [visit site to read more]

Earnings Preview: Medco

Posted: 21 Jul 2010 01:50 PM PDT

Medco Health Solutions Inc. (NYSE:MHS) is scheduled to release its second-quarter 2010 earnings on July 22, 2010. The Zacks Consensus Estimate for the quarter is 79 cents per share, representing a year-over-year growth of 14.4%.
 
Along with the first-quarter results, Medco reaffirmed its 2010 outlook, which represents robust growth over 2009. Adjusted earnings per share guidance are expected to be in the range of $3.28 to $3.38, an increase of 16%–19% year over year. The company expects … [visit site to read more]

Jamie Dimon’s Recommended Reading List

Posted: 21 Jul 2010 01:41 PM PDT

Jamie Dimon

I recently added a new page to the website. The page will be a permanenet list of Jamie Dimon's recommended reading. In the next few days I hope to add two more pages; Warren Buffett's recommended reading, and Seth Klarman's recommended reading.
Below is the page which can always be found under the top main menu under the "Books" tab.
Jamie Dimon is one of the most, if not the most successful CEO in America. He lead JP Morgan throughout the financial crisis, and helped … [visit site to read more]

Hot!

Posted: 21 Jul 2010 01:30 PM PDT

Here are the highlights from the latest National Oceanic and Atmospheric Administration report on current climate conditions (full report here):

The combined global land and ocean average surface temperature for June 2010 was the warmest on record at 16.2°C (61.1°F), which is 0.68°C (1.22°F) above the 20th century average of 15.5°C (59.9°F). The previous record for June was set in 2005.
June 2010 was the fourth consecutive warmest month on record (March, April and May 2010 were also the … [visit site to read more]

FIS Marginally Tops Expectations

Posted: 21 Jul 2010 01:30 PM PDT

A leading provider of banking and payment technology to financial institutions and government organizations, Fidelity National Information Services Inc. (NYSE:FIS) reported second quarter 2010 results that beat the Zacks Consensus Estimate of 45 cents by a penny.

Earnings

Earnings on a non-GAAP basis from continuing operations increased 15.0% year over year to 46 cents per share but was in line with management's guidance range of 45 cents to 47 cents.

Including after-tax purchase amortization … [visit site to read more]

Eaton’s Earnings Climb

Posted: 21 Jul 2010 01:20 PM PDT

Electrical equipment maker Eaton Corporation (NYSE:ETN) reported better-than-expected second quarter 2010 results, helped primarily by stronger end-markets.

Earnings per share, excluding acquisition-related integration charges, came in at $1.36, beating the Zacks Consensus Estimate of $1.17. In the year-ago period, the Cleveland, Ohio-based company earned 23 cents per share.

Revenue

Total quarterly revenue of $3.4 billion was up 16% year over year and 9% sequentially. Improved sales in the … [visit site to read more]

Earnings Preview: Zimmer Holdings

Posted: 21 Jul 2010 01:20 PM PDT

Zimmer Holdings (NYSE:ZMH) is scheduled to release its second-quarter 2010 earnings on July 22, 2010. The Zacks Consensus Estimate for the quarter is $1.05 per share, representing a year-over-year growth of 5.5%.
 
Previous-Quarter Highlights
 
Zimmer's first-quarter fiscal 2010 earnings per share (EPS) of $1.02 were a penny ahead of the Zacks Consensus Estimate and surpassed earnings of 91 cents per share in the comparable quarter last year. Revenue in the quarter increased 7.1% year … [visit site to read more]

Earnings Preview: Total System

Posted: 21 Jul 2010 01:05 PM PDT

Total System Services Inc. (NYSE:TSS) is scheduled to report its second quarter 2010 results after the market closes on Wednesday, July 21. The Zacks Consensus Estimate for the second quarter is 23 cents per share, representing a negative growth of about 16% from the year-ago quarter.
 
The credit card regulation is going to impact the number of client accounts and long-term contracts adversely. Hence, we do not foresee any substantial development strategy to drive Total System's earnings … [visit site to read more]

Seagate Misses Estimates

Posted: 21 Jul 2010 12:45 PM PDT

Seagate Technology Inc. (NASDAQ:STX) reported fourth-quarter 2010 earnings per share of 70 cents (excluding one-time items), missing the Zacks Consensus Estimate of 78 cents per share.

The company was badly hit by the struggles in Europe, where not just currency but also a slowdown in demand, particularly in the consumer market, impacted results.

Seagate has been reporting earnings surprises on a regular basis and despite the miss, the average positive surprise remains at 21.69%.

However, given … [visit site to read more]

Earnings Preview: JAKKS

Posted: 21 Jul 2010 12:45 PM PDT

JAKKS Pacific Inc. (NASDAQ:JAKK), a multi-brand company that designs and markets a broad range of toys and consumer products, is slated to release its second-quarter 2010 results on Thursday, July 22. The current Zacks Consensus Estimate for the quarter is 5 cents per share, representing an annualized growth of 276.7%.   
 
With respect to earnings surprises over the trailing four quarters, JAKKS has oscillated greatly, from approximately negative 4.4% to positive 25.0%. The … [visit site to read more]

Quest Beats, But Lowers Guidance

Posted: 21 Jul 2010 12:35 PM PDT

Quest Diagnostics (NYSE:DGX) reported second quarter fiscal 2010 earnings per share (EPS) of $1.07, beating the Zacks Consensus Estimate by a penny. The company had reported an EPS of $1.00 in the second quarter of fiscal 2009. Results for the previous quarter included benefits associated with an insurance recovery (5 cents), offset by charges related to debt repurchase and investment write-off (4 cents).

Revenues for the quarter declined 1.4% year over year to $1.9 billion, driven by a decline … [visit site to read more]

ConAgra Divests Gilroy Foods

Posted: 21 Jul 2010 12:35 PM PDT

ConAgra Foods, Inc. (NYSE:CAG) divested its Gilroy Foods & Flavors, the dehydrated and vegetable product operations, part of Commercial Foods segment, to Olam International for $250 million.
 
In the near term, ConAgra might get hurt as the divested operations generated revenues of $300 million in fiscal 2010. However, the Commercial Foods segment reported a decline of 8.3% in revenues in fiscal 2010, which probably prompted the sale to improve conditions in the long term.
 
ConAgra … [visit site to read more]

Earnings Preview: Core Labs

Posted: 21 Jul 2010 12:15 PM PDT

Oilfield services provider Core Laboratories N.V. (NYSE:CLB) is scheduled to report its second quarter 2010 results on Wednesday, July 21, after the closing bell.
 
The Zacks Consensus Estimate for the to-be-reported quarter is 72 cents per share, compared to the 66 cents per share earned in the year-earlier period.
 
First Quarter Recap
 
Core Labs reported profit of 69 cents per share in the first quarter of 2010, a penny above the Zacks Consensus Estimate. The company believed … [visit site to read more]

BP Offloads Assets To Apache

Posted: 21 Jul 2010 12:15 PM PDT

BP plc (NYSE:BP) has taken the first tangible step towards divestiture of assets worth $10 billion announced last month. The financially troubled U.K. major will sell $7 billion worth of upstream assets to Apache Corp. (NYSE:APA). The agreement includes several transactions, expected to close in the third quarter.
 
The properties to be sold include the Permian basin assets of $3.10 billion, Western Canadian gas assets of $3.25 billion and upstream assets of $0.65 billion in Egypt. Separately, … [visit site to read more]
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