Monday, August 30, 2010

Daily Markets - Earnings Scorecard: Western Digital

Daily Markets - Earnings Scorecard: Western Digital


Earnings Scorecard: Western Digital

Posted: 30 Aug 2010 07:35 AM PDT

Since Western Digital Corp. (NYSE:WDC) reported its fourth quarter results, there have been a limited number of estimate revisions by the analysts covering the stock.
 
Fourth Quarter Highlights
 
Western Digital's earnings per share (EPS) of $1.24 for the quarter were below the Zacks Consensus Estimate of $1.37. The company generated revenues of $2.4 billion, up 24.3% from $1.9 million reported in the year-ago quarter. The substantial jump in revenue was a result of stronger demand … [visit site to read more]


Benihana Misses Estimates

Posted: 30 Aug 2010 07:35 AM PDT

Benihana Inc. (NASDAQ:BNHN) announced its first quarter 2011 earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 10 cents, but soared 60% from a year-ago quarter's 5 cents. Results reflect the benefits of the Benihana Teppanyaki Renewal Program, which the company initiated in 2009 to improve the dining experience for the guests at the Benihana Teppanyaki restaurants.
 
The U.S. chain of Japanese restaurants posted a 5.0% year-over-year rise in total revenue to $100.8 … [visit site to read more]


Forex Trading: EURUSD Between The Goal Posts…Looking For A Break

Posted: 30 Aug 2010 07:15 AM PDT

When the EURUSD trades above the 100 hour MA, it gives the pair a bullish bias. When the price trades above the 200 hour MA, it confirms the bullish bias. When the price fails to stay above the 200 hour MA and moves back below that moving average, longs should be exited as the market is saying, "I am not ready to trend higher".
This is the situation for the EURUSD today. The price gapped above the 200 hour MA in early trade, then came down to test the 200 hour MA as momentum faded (green … [visit site to read more]


Inspire-Allergan Amend Deal Terms

Posted: 30 Aug 2010 07:05 AM PDT

Inspire Pharmaceuticals Inc. (NASDAQ:ISPH) recently announced that it has amended the terms of its agreement with long time partner Allergan Inc. (NYSE:AGN). The deal was for the development and marketing of dry-eye treatment Prolacria, which failed to meet the primary endpoint in late stage trials. The collaboration also involved another dry-eye treatment, Restasis (cyclosporine), and any other human ophthalmic formulation of cyclosporine.

As per the terms of the amended agreement, which extends … [visit site to read more]


Another Recession Ahead?

Posted: 30 Aug 2010 07:05 AM PDT

Are we heading into another financial meltdown? That is what the data released by the U.S. government last Friday seems to suggest. Statistics revealed by the Bureau of Economic Analysis shows economic growth that is stalling and may even flatten out over the rest of the year, raising specters of another recession ahead.

While the expected economic growth of 2.4% in the second quarter of 2010 was viewed as feeble, only about 1.6% was actually achieved. A slower build-up of stocks by companies … [visit site to read more]


Nordstrom Plans Rack Store In Texas

Posted: 30 Aug 2010 07:05 AM PDT

Nordstrom Inc. (NYSE:JWN) plans to open a 35,455 square foot new Rack discount store at The Market at Town Center in Sugar Land, Texas in fall 2011. This follows Nordstrom's first 31,000 square foot Rack location in Houston at The Center at Post Oak, which opened on February 25, 2010.
Rack stores are an off-price retail format, which sell Nordstrom’s own off-season and clearance goods from its mall stores and Nordstrom.com at 50-60% off original Nordstrom prices. Rack also showcases apparel, … [visit site to read more]


US Stock Market And Economy On Shaky Ground

Posted: 30 Aug 2010 07:01 AM PDT

Welcome to another week of stock trading my friends!

Last week I noted the possibility of a breakdown in the Dow Jones Industrial Average (please see it here). Well, guess what. The broader S&P 500 appears to confirm where the Dow and the US economy are heading. As you can see from the $SPX’s weekly chart, the index has been forming a head and shoulders pattern. Remember that a couple of month’s ago it already attempted to breakdown but failed. Of course, it was a good thing that … [visit site to read more]


Forex Trading: GBPUSD Moves Below 200 Hour MA In Quiet UK Holiday Trade

Posted: 30 Aug 2010 06:44 AM PDT

J&J Plagued By Product Recalls

Posted: 30 Aug 2010 06:35 AM PDT

Johnson & Johnson (NYSE:JNJ) took another hit recently with the company announcing yet another product recall. This time round, the company said that it is voluntarily recalling two hip replacement systems - the ASR XL Acetabular System and DePuy ASR Hip Resurfacing System.
The company decided to issue the product recall as it was observed that several patients using the products required a second hip replacement procedure or a revision surgery.
Moreover, new data, which is yet to be … [visit site to read more]


Ford To Launch New Models In India

Posted: 30 Aug 2010 06:35 AM PDT

Ford Motor Co. (NYSE:F) plans to launch eight new models in India over the next five years, and export the locally assembled popular Indian small car, Figo, to about 50 countries. The company's strategy is backed by doubling of annual production capacity to 200,000 units per year during July at its plant in Chennai, located in southern India.

Joe Hinrichs, head of Ford's Asia-Pacific and Africa operations, has revealed that the new models will share the same chassis in line with the … [visit site to read more]


Stock Market News Briefs: 3M Company, Sanofi-Aventis SA, Texas Instruments Incorporated, Cisco Systems, Cogent, EBay, Genzyme, Intel Corporation

Posted: 30 Aug 2010 06:35 AM PDT

 Intel (NASDAQ:INTC) announced plans to acquire Infineon’s wireless chip unit for $1.4 billion
 
 Genzyme (NASDAQ:GENZ) has rejected Sanofi-Aventis' (NYSE:SNY) $18.5 billion, of $69 per share, all-cash offer for the company

 Reports say Cisco (NASDAQ:CSCO) is interested in buying Skype from an investor group including eBay (NASDAQ:EBAY)

 3M (NYSE:MMM) is planning to acquire Cogent (NASDAQ:COGT) for $943 million, or $10.50 per share

 Susquehanna downgraded Texas Instruments (NYSE:TXN) to … [visit site to read more]


Swiss Franc: Under Pressure

Posted: 30 Aug 2010 06:18 AM PDT

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


Japanese Yen: The Downside Prevails

Posted: 30 Aug 2010 06:18 AM PDT

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


British Pound: Rebound

Posted: 30 Aug 2010 06:18 AM PDT

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


Euro: Rebound

Posted: 30 Aug 2010 06:18 AM PDT

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


Stocks To Watch On Monday: Atlas Pipeline, American Medical Systems, CB Richard Ellis Svcs, Saic, Aqua America

Posted: 30 Aug 2010 06:15 AM PDT

Here are some setups I like heading into next week.

American Medical Systems (NASDAQ:AMMD) - Holding up the gap support (from May) very well. A hammer formed on Friday and the stock closed right above MA(200).

Atlas Pipeline (NYSE:APL) - Consolidating very nicely after the big move up in July. A buy on the break of MA(20).

CB Richard Ellis Svcs (NYSE:CBG) - Forming a nice bullish flag after a big move up in July. Watch out for a break of the flag on the upside. MA(50) also creeping up … [visit site to read more]


GSEs Prevented Private Secondary Market

Posted: 30 Aug 2010 06:15 AM PDT

“A private secondary market for prime mortgages should have been a natural market development. Why did it never develop? The answer is obvious: no private entity could compete, or can now compete, with the government-granted advantages, and now the huge explicit subsidies, of the Government Sponsored Enterprises (GSEs). There can be no evolution of a private prime mortgage loan market while the GSEs make private competition impossible.

The core issue about GSEs is this: You can be a private … [visit site to read more]


L-3 Comm Gets $170M Contract

Posted: 30 Aug 2010 06:05 AM PDT

L-3 Communications Holdings Inc.'s (NYSE:LLL) subsidiary L-3 GCS has been awarded a $170 million contract by the U.S. Special Operations Command (USSOCOM). The five year contract is for supplying Panther Very Small Aperture Terminal (VSAT) manpack satellite communications systems and associated equipment. The systems will be used in support of USSOCOM's Special Operations Forces Deployable Node-Lite (SDN-Lite) program, which will help Special Operations Forces field personnel connect to the … [visit site to read more]


Why I’m Not Anxious To Sell Short The US Stock Market

Posted: 30 Aug 2010 06:01 AM PDT

Pessimism increased again among investors last week, as a slew of economic data stoked fears of a double-dip recession.

Indeed, housing and unemployment continue to weigh on the U.S. economy. But don’t panic. Remember that the prospects for a full economic recovery are much better outside the United States, and that it’s often good to be greedy when others are fearful.

Stocks lurched backward most of this week as investors digested worsening news about housing and manufacturing, then … [visit site to read more]


ROBERT SHILLER: “DOUBLE DIP MAY BE IMMINENT”

Posted: 30 Aug 2010 06:00 AM PDT

While Bernanke continues to deny the potential of an economic downturn and tries to convince the market that he can save the economy with his impotent monetary policy, reliable and trustworthy economists like Robert Shiller say the Fed is out of bullets and the risk of a double dip is "imminent":

… [visit site to read more]


Hot Stock News For Monday August 30: BP, Google, Intel, Microsoft, Disney, Chevron, AIG, BHP Billiton, Rio Tinto

Posted: 30 Aug 2010 05:48 AM PDT

UK Banks - The companies, which include members of the FTSE100, are preparing to argue publicly that dividing the banks’ retail and investment banking arms will make everyday business activities more expensive and less efficient. The campaign will be the first large-scale intervention by Britain’s corporations - the banks’ biggest customers - in the highly-charged debate on financial reform. (Telegraph)

UK

UK (FTSE closed for Bank Holiday)

BP (NYSE:BP) - Co. is set to come under … [visit site to read more]


Forex Trading: USDJPY: The 84.80 Rears It’s Head Again. Watch Level This Morning

Posted: 30 Aug 2010 05:47 AM PDT

SNY Seeks To Expand Vaccine Label

Posted: 30 Aug 2010 05:35 AM PDT

Sanofi-Aventis (NYSE:SNY) is looking to expand the label for its vaccine, Menactra. The company recently announced that the US Food and Drug Administration (FDA) has accepted the company's supplemental Biologics License Application (sBLA) for the vaccine. Sanofi is looking to get Menactra approved for use in infants and toddlers.
 
Menactra, which is designed to help provide protection from invasive meningococcal disease caused by serogroups A, C, Y, and W-135, is approved for use in the … [visit site to read more]


Forex Trading: EURUSD Tests Support At 1.2682-90

Posted: 30 Aug 2010 05:30 AM PDT

Forex Trading: EURJPY Pauses At The 100 Hour MA. Between The Goal Posts

Posted: 30 Aug 2010 05:13 AM PDT

Eurozone Economic Confidence Rises To The Highest Level Since March 2008

Posted: 30 Aug 2010 05:00 AM PDT

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Fundamental Headlines
• Bank of Japan Action Fails to Contain Yen – Wall Street Journal
• European Markets Advance – Wall Street Journal
• Bank of Japan Takes Fresh Stimulus Steps - Financial Times
• Yen Advances on Concern Bank of Japan Steps Won't Be Enough to Curb Gains- Bloomberg
• European Economic Confidence Improves to Highest in Two Years on Exports – Bloomberg
EUR/USD: Economic confidence in … [visit site to read more]


Market Vectors Removes Derivatives From Two Active ETF Plans

Posted: 30 Aug 2010 04:00 AM PDT

Van Eck Global, the company behind the Market Vectors line of ETFs, has been the latest issuer to modify its plans to remove the usage of derivatives in its proposed actively-managed ETFs. Van Eck currently manages in excess of $14 billion in assets in its exchange-traded funds and had previously filed with the SEC to launch two actively-managed ETFs: Market Vectors – Active Africa ETF and Market Vectors – Active Short Municipal ETF.
The original investment mandate for each of the two funds … [visit site to read more]


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