DailyMarkets.com - Fed: Americans Are Saving Too Much Money, So We Need Them Spending Again

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• Fed: Americans Are Saving Too Much Money, So We Need Them Spending Again
• Platinum And Copper Approaching New Highs
• Asset Allocation In A Rising Interest Rate Environment With Gaetan Ruest Of Investors Group
• Gold And S&P 500: Important Levels To Watch
• US Non-Farm Payrolls Preview For September
• Friday Stock Market Outlook: Watch Out For Non-Farm Payrolls Report
• A Temporary Rally Seen In The US Dollar
• Equity Analysis: Beyond Corporate Stenography
• Forex Trading: Eur/Usd From An Hourly Perspective
• Forex Trading: U.S. Non-Farm Payrolls Expected Today At 12:30 GMT
• Crude Oil Hit By Profit Taking After Huge Run, Gold Sinks Most Since July
• Aggressive Growth Stock: American Superconductor
• Bear Of The Day: Regis Corp. (RGS)
• Growth & Income Stock: Enbridge Inc
• Bull Of The Day: Superior Industries (SUP)
• Momentum Stock: Agrium, Inc.
• Private Vs. Federal Government Saving
• Is The U.S. A Currency Manipulator?
• Currency Wars: The Phantom Menace
• Singapore Stock Market Update For Friday 08 October
• And You Thought Last Time Was Bad…
• Stock Picks For Friday: Adobe, Microsoft, Motorola, Netflix, Eastman Kodak

Fed: Americans Are Saving Too Much Money, So We Need Them Spending Again Posted: 08 Oct 2010 03:45 AM PDT Some top Federal Reserve officials have come up with a really bizarre proposal for stimulating the U.S. economy.  As unbelievable as it sounds, what they actually propose to do is to purposely raise the rate of inflation so that Americans will stop saving so much money and will start spending wildly again.  The idea behind it is that if inflation rises a couple of percentage points, but consumers are only earning half a percent (or less) on their savings accounts, then there will be an … [visit site to read more]

Platinum And Copper Approaching New Highs Posted: 08 Oct 2010 03:01 AM PDT We have all heard the saying "buy low-sell high" as the mantra of making money in the market.  To apply this cliche is much easier said than done.  Adhering to this rule is not an easy task and without the use of technical tools to determine buy points and targets, an investor can get caught up with the hysteria of a parabolic move.  Now gold and silver is making huge advances as it continues the trend into new record territory.  I wrote an article that discussed the … [visit site to read more]

Asset Allocation In A Rising Interest Rate Environment With Gaetan Ruest Of Investors Group Posted: 08 Oct 2010 02:21 AM PDT Gaetan Ruest is Manager, Strategic Investment Planning, Investors Group Interest rates that are set by a country's central bank have a large impact on the capital markets (See: 'How the shape of the yield curve impacts your investment portfolio'). With interest rates (in Canada) having risen recently but still hovering near the 1% mark, knowing how your investment and retirement plans will be affected, is probably the best way to make sure you are not blindsided by the impact of … [visit site to read more]

Gold And S&P 500: Important Levels To Watch Posted: 08 Oct 2010 01:55 AM PDT I am afraid I don’t have time for a full post today dear readers and I do apologize for the same but here are a few quick thoughts on today’s action and the important levels to keep in mind for Friday. All said and done, Thursday was just another consolidation day, thanks to the late day comeback by the bulls where they managed to almost close the S&P into positive territory. The support around 1150 levels held admirably but if you are bullish, you don’t want it tested too many … [visit site to read more]

US Non-Farm Payrolls Preview For September Posted: 08 Oct 2010 01:35 AM PDT US Change in Non-Farm Payrolls M/M (Sep) Exp. -5K (Prev. -54K, Jul -54K) Morgan Stanley (NYSE:MS) -53K                                                                                       Barclays Capital  (NYSE:BCS) -10K JP Morgan (NYSE:JPM) -45K                                                           … [visit site to read more]

Friday Stock Market Outlook: Watch Out For Non-Farm Payrolls Report Posted: 08 Oct 2010 01:14 AM PDT Instratrader Indicators: Red Flag: We Expect Lower Prices Ahead Daily Technical Sentiment Indicators: Neutral Short Term Market Condition:  Overbought (short term bearish) Short Term Trend: Neutral Friday will be a big day as the much anticipated Non Farm Payroll and unemployment reports come out in the morning and we'll see if the "bad news is good" trade stays on or not.  The ADP report earlier this week was a huge miss, showing private sector jobs declining instead of … [visit site to read more]

A Temporary Rally Seen In The US Dollar Posted: 08 Oct 2010 01:09 AM PDT Welcome to another day of Forex trading! In today's FX feature, I present to you an update on the US dollar index (USDX). A little more than a week ago I already warned the dollar bulls of a likely take over by the bears. And guess from, since September 28, the USDX has already fallen from 79.57 to 77.34. The 77.00 support, however, had kept the index from falling. Given this and its oversold condition, the index may range for awhile or even rally before continuing its descent. A move … [visit site to read more]

Equity Analysis: Beyond Corporate Stenography Posted: 08 Oct 2010 12:09 AM PDT I normally don’t write very much about company analysis, because I have spent most of my professional life as a quant. Nevertheless, I was fortunate to have been a small cap/special situations analyst early in my career. That experience from the school of hard knocks taught me that, indeed, different industries have very different value-drivers and therefore different valuation metrics, which was a invaluable lesson for me later in my life as an equity quantitative analyst. Two recent events … [visit site to read more]

Forex Trading: Eur/Usd From An Hourly Perspective Posted: 08 Oct 2010 12:02 AM PDT The question the next move in Eur/Usd bring us to yesterday's high of 1.4030 or down to recent support at 1.3880. The pair does seem to be in a holding pattern in wake of  pending Non-Farm figures coming out of the U.S. at 8:30 EST. A break below should bring the pair to its 100 hour M/A at 1.3834.  A break above probably to … [visit site to read more]

Forex Trading: U.S. Non-Farm Payrolls Expected Today At 12:30 GMT Posted: 07 Oct 2010 11:54 PM PDT U.S. Non-Farm Payrolls Expected Today at 12:30 GMT Yesterday’s trading was filled with exciting developments; the dollar ended a bearish run against the euro and the British pound on one hand, and reached a 15-year low against the Japanese yen on the other hand. In addition, crude oil saw a very irregular daily loss of over 300 pips. That being said, today’s trading promises to be no less exciting, largely due to the U.S. Non-Farm Payrolls release scheduled for 12:30 GMT. This is the most … [visit site to read more]

Crude Oil Hit By Profit Taking After Huge Run, Gold Sinks Most Since July Posted: 07 Oct 2010 11:51 PM PDT Commodities – Energy Crude Oil Hit by Profit Taking After Huge Run Crude Oil (WTI) – $81.63 // $0.04 // 0.05% Commentary: Crude oil finally got hit with a good bit of profit taking, as the commodity fell $1.56, or 1.87%, on Thursday. U.S. equity markets also declined, but only by 0.16%, though they were down over 0.5% at the session low. On the economic front, the only item of note was the weekly initial jobless claims number which fell to 445K in the latest week from 455K. Jobless claims … [visit site to read more]

Aggressive Growth Stock: American Superconductor Posted: 07 Oct 2010 11:05 PM PDT American Superconductor (NASDAQ:AMSC) analysts continue to raise estimates, even as the company nears its next quarterly report. The growth rates and long-term outlook are fantastic for this Zacks #1 Rank (Strong Buy). Company Description American Superconductor provides technologies and solutions throughout electric power infrastructure, from generation to delivery. The company also offers wind turbine designs and other electrical control systems for renewable energy. Estimates Up Ahead of … [visit site to read more]

Bear Of The Day: Regis Corp. (RGS) Posted: 07 Oct 2010 11:05 PM PDT Regis Corp.’s (NYSE:RGS) fourth quarter 2010 earnings fell short of the Zacks Consensus Estimate, due to a decline in revenues. Slower traffic and limited new product introduction due to economic concerns remain a drag on same-store sales. Moreover, same-store sales are unlikely to be positive before second half of 2011, as consumer behavior has changed in this difficult economic scenario. Consumers across the globe are cutting back on expenditure, resulting in a slowdown in spending and longer … [visit site to read more]

Growth & Income Stock: Enbridge Inc Posted: 07 Oct 2010 11:05 PM PDT Enbridge Inc (NYSE:ENB) is expected to grow its free cash flow at 18% per year over the new few years. This should allow the company to boost its already attractive dividend. Enbridge operates the largest crude oil and liquids pipeline system in the world. It is also a leader in natural gas distribution. The company is based in Calgary, Alberta, Canada and has a market cap of $20.6 billion. It is a Zacks #2 Rank (Buy) stock. Earnings Beat Expectations Enbridge reported second quarter earnings per … [visit site to read more]

Bull Of The Day: Superior Industries (SUP) Posted: 07 Oct 2010 11:05 PM PDT Superior Industries International (NYSE:SUP) has a wide customer base. Moreover, its long-term business agreements with clients helped the company maintain its financial stability. At the same time, with its strategic acquisition, divestment and relocation, the company is well positioned to take full advantage of the globally expanding automotive industry. In addition, SUP has no long-term debt obligations. Its second-quarter results were strong with earnings outperforming the Zacks Consensus … [visit site to read more]

Momentum Stock: Agrium, Inc. Posted: 07 Oct 2010 11:05 PM PDT Agrium, Inc. (NYSE:AGU) has been jumping higher since early July as key agricultural crops across the world see big price gains on strong demand and erratic weather. With a bullish next-year estimate and solid valuation, this Zacks #1 rank stock has plenty of upward momentum. Company Description Agrium, Inc. together with its subsidiaries, produces and sells agricultural nutrients worldwide. The company was founded in 1931 and has a market cap of $11.9 billion. As a service and product provider to … [visit site to read more]

Private Vs. Federal Government Saving Posted: 07 Oct 2010 08:51 PM PDT We frequently hear about how: a) the U.S. trade deficits are unsustainable and demonstrate that we are living beyond our means, b) we’ve become a nation of debtors, partly at least because: c) Americans don’t save.    And yet the data above possibly suggest otherwise.  Personal saving is now close to an all-time high in nominal dollars at $673 billion, and has more than tripled since the fourth quarter of 2007 when it was $223.6 billion.  … [visit site to read more]

Is The U.S. A Currency Manipulator? Posted: 07 Oct 2010 07:52 PM PDT The trade-weighted U.S. dollar index has depreciated by almost 40% over the last ten years vs. the world’s major currencies (see chart above).  Does that make the U.S. a currency manipulator?  Here’s a little editing fun of this article: “China The United States flatly denies that its currency manipulation undervalues the renminbi (yuan) dollar by 40 percent and has become one of the foremost impediments to fair and equitable global trade, experts say. "That undervaluation of the … [visit site to read more]

Currency Wars: The Phantom Menace Posted: 07 Oct 2010 07:01 PM PDT The last thing the global economy needs right now is anything that would hamper or derail economic growth. Unfortunately, there appears a growing specter of this occurring. Brazil and Japan's recent decisions to intervene in the currency markets follow a disturbing trend. If policy makers are not careful, present dynamics may precipitate a worldwide economic slowdown, brought about by protectionist pressures and exacerbated by political motivations globally. Competitive currency … [visit site to read more]

Singapore Stock Market Update For Friday 08 October Posted: 07 Oct 2010 06:32 PM PDT Morning Highlights Singapore stocks opened mixed, with STI down 2.38 points at 3164.27. Watch Out For Economic News Today U.S September Change in Non-Farm Payrolls U.S September Employment Rate Corporate Announcements Yangzijiang said that its listing in Taiwan raised NT$3.76 billion and the proceeds would be used for working capital. Ezra said that its recent $155.26 million rights issue is over subscribed. News Updates: U.S. Jobless Claims at near 3-month low; dropped 11,000 … [visit site to read more]

And You Thought Last Time Was Bad… Posted: 07 Oct 2010 06:19 PM PDT If there is one thing that mainstream analysts seem to agree on, it is that the worst of the economic storm has passed. But as was the case during the early days of the crisis, many mistakenly assume that because things seem fairly calm on the surface, there is not a great deal to worry about. In the end, of course, the stresses and strains back then triggered an eruption that had many thinking that the world was coming to an end. Are we near that point again? Based on what what one smart … [visit site to read more]

Stock Picks For Friday: Adobe, Microsoft, Motorola, Netflix, Eastman Kodak Posted: 07 Oct 2010 06:14 PM PDT ( click to enlarge ) Adobe (NASDAQ:ADBE) surged 11.28% or 2.96 to 28.69 per share in heavy trading on a report that Microsoft (NASDAQ:MSFT) CEO Steve Ballmer discussed a possible buyout of the company. A report posted in the The NY  Times said Ballmer recently met with Adobe CEO Shantanu Narayen to talk about Apple’s control of the cell phone market and how Microsoft and Adobe could work together to fend off the iPhone maker. The stock seems to have added fresh long positions. Calls witnessed … [visit site to read more]

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