Friday, November 19, 2010

DailyMarkets.com - Are We Living In The Fed’s Twilight Zone?

DailyMarkets.com - Are We Living In The Fed’s Twilight Zone?


Are We Living In The Fed’s Twilight Zone?

Posted: 19 Nov 2010 11:46 AM PST

On Monday, an old friend sent me a link to a now virally famous cartoon clip via YouTube. The clip is a depiction of the Federal Reserve’s second round of quantitative easing in a simplified, humorous manner and has been viewed over 1.6 million times, not to mention it had a front and center showing on CNBC.

It comically poses questions that pretty much sum up the entire state of our economy right now. Is this some kind of a nightmare? Are we in an episode of The Twilight … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Earnings Scorecard: Advance Auto

Posted: 19 Nov 2010 11:35 AM PST

Advance Auto Parts Inc. (NYSE:AAP) reported its third quarter results ended October 9, 2010 on November 10, 2010, surpassing the Zacks Consensus Estimate by 11 cents per share. However, the market failed to react positively, with share prices falling in the subsequent days.
Despite the depressive market reaction, the overall response from the analysts was positive, as most of them covering the stock have revised the estimates upward. Below we will cover the results of the recent earnings … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Dell Maintaining Its Pace

Posted: 19 Nov 2010 11:35 AM PST

Dell Inc. (NASDAQ:DELL) reported third quarter fiscal 2011 earnings per share (EPS) of 45 cents, exceeding the Zacks Consensus Estimate of 32 cents.
Revenues
Revenues for the third quarter of fiscal 2011 were $15.4 billion, up 19.0% from $12.9 billion reported in the year-ago quarter. The company's third quarter revenue growth may be attributed to strength across all business segments, other than commercial and enterprise sectors.
Additionally, the company is making strategic progress in improving … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Allstate On Hiring Spree

Posted: 19 Nov 2010 11:35 AM PST

Going ahead with its proactive investment approach, The Allstate Corp.'s (NYSE:ALL) Allstate Insurance Co. is in the process of employing about 155 licensed sales producers across Texas in the U.S. by the end of 2010, according to Business Journal. The company has collaborated with a staffing and consulting company, Kelly Services Inc. (NASDAQ:KELYA), for the hiring process. About 20 positions have been booked to date.
While Allstate expects to create about 40 new positions in Houston and at least 25 … [visit site to read more] or compare Best Credit Cards and Best CD Rates


LabCorp Clears Anti-Trust Review

Posted: 19 Nov 2010 11:35 AM PST

Laboratory Corporation of America Holdings (NYSE:LH) moves a step closer in the process of acquiring Genzyme Genetics, a unit of Genzyme Corporation (NASDAQ:GENZ). Recently, LabCorp received clearance from the Federal Trade Commission for the acquisition.
Earlier, in September, LabCorp had announced its intention to acquire Genzyme Genetics for $925 million. Genzyme Genetics, which provides complex reproductive and oncology testing services, performs more than 1.5 million tests annually and recorded … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Earnings Preview: Stuffing The Turkey With Data

Posted: 19 Nov 2010 11:05 AM PST

Earnings Preview 11/19/10

The third quarter earnings season is now almost over; just a handful of stragglers, mostly October fiscal ends, are left to report. Next week only 81 firms will report, but 9 of those will be S&P 500 firms, including Hewlett Packard (NYSE:HPQ), Analog Devices (NYSE:ADI),  Medtronic (NYSE:MDT), Campbell Soup (NYSE:CPB) and Deere (NYSE:DE). We define any fiscal period ending in August, September and October to be the third quarter.

On the economic data front, everything will … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Humana Earnings To Drop In 2011

Posted: 19 Nov 2010 11:05 AM PST

On the expectation of the rise in doctor visits and medical procedures, Humana Inc. (NYSE:HUM) lowered its 2011 earnings forecast to $5.35-$5.55 per share, down from the 2010 expectation of $6.40-$6.50.
During the third-quarter, Humana increased its 2010 earnings outlook to $6.40 – $6.50 per share, from its previous guidance of $5.65 – $5.75, which reflected improved operating performance and the expectation of a Tricare contract extension from April 1, 2011 through March 31, 2012.
However, Humana … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Chevron Disposes Assets

Posted: 19 Nov 2010 11:05 AM PST

Premier oil and gas company, Chevron Corporation (NYSE:CVX) has agreed to sell its fuels marketing and aviation businesses in parts of the Caribbean and Central America to Vitogaz, S.A. The latter is an affiliate of RUBIS, a France-based petroleum company.
The deal, whose financial terms were not disclosed, is expected to be sealed by the end of third quarter 2011, subject to approval from local regulatory authority and government.
As per the company spokesperson, the deal comprises the sale of a … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – GBP/USD Down During The U.S. Session

Posted: 19 Nov 2010 11:00 AM PST

Forex Pros – The British Pound was lower against the U.S. Dollar on Friday.

GBP/USD was trading at 1.5970, down 0.44% at time of writing.

The pair was likely to find support at 1.5840, Tuesday's low, and resistance at 1.6155, Monday's high.

Meanwhile, the British Pound was down against the Euro and the Japanese Yen, with EUR/GBP gaining 0.62% to hit 0.8557 and GBP/JPY falling 0.46% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Momentum Stock: Hill-Rom Holdings, Inc.

Posted: 19 Nov 2010 10:55 AM PST

Hill-Rom Holdings, Inc. (NYSE:HRC) just hit a new all-time high above $41 after reporting strong Q4 results that included a 22% earnings surprise. With estimates on the rise and a bullish growth projection, this Zacks #1 rank stock is lying in a warm bed of momentum.
We got an update on Hill-Rom’s business in late October when the company reported strong Q4 results that easily beat expectations.
Third-Quarter Results
Revenue for the period was up 9% from last year to $397 million. Earnings also … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Moody’s Rates Prudential’s Notes

Posted: 19 Nov 2010 10:55 AM PST

The rating agency Moody’s Investors Service, an arm of Moody’s Corp. (NYSE:MCO), has conferred a "Baa2" rating to senior unsecured notes worth $1 billion issued recently by Prudential Financial Inc. (NYSE:PRU). The rating holds an investment grade status and carries a "stable" outlook. 
These notes were issued in two parts – $500 million of 10-year at 4.5% that would yield 167 basis points more than similar maturity U.S. Treasuries, and $500 million of 6.2%, 30-year bonds that would … [visit site to read more] or compare Best Credit Cards and Best CD Rates


GENZ In Deal For Sale Of Diag Biz

Posted: 19 Nov 2010 10:55 AM PST

Genzyme Corporation (NASDAQ:GENZ) recently announced that it has entered into an agreement with Japanese company, Sekisui Chemical Co., Ltd. for the sale of its diagnostic products business. Sekisui will acquire Genzyme's diagnostic products business for $265 million cash. The diagnostics business delivered $167 million in revenues in 2009. The deal is scheduled to close by year-end.
Sale Will Help Genzyme Focus on Core Business
Genzyme had initially announced its intention to divest its genetic … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Infineon’s Solid Fourth Quarter

Posted: 19 Nov 2010 10:55 AM PST

Infineon Technologies AG (IFNNY) reported fourth quarter fiscal 2010 earnings per share from continuing operations of €0.16 (20 cents) compared with €0.09 in the sequentially preceding quarter and €0.01 in fourth quarter fiscal 2009. The earnings reported by the company were in line with the Zacks Consensus Estimate of 20 cents.
Total Revenue
Total revenue was €1,400 million ($1,806 million), reflecting an increase of 10% compared with the prior quarter, and a substantial rise of 64% … [visit site to read more] or compare Best Credit Cards and Best CD Rates


CAT’s New $300M Facility In China

Posted: 19 Nov 2010 10:55 AM PST

Caterpillar Inc. (NYSE:CAT) announced its largest facility investment to date in China of $300 million, to meet the burgeoning worldwide demand for its 3500 series engine. The company will build a state-of-the-art manufacturing facility in Tianjin, China.
Once commissioned in 2013, it is slated to become Caterpillar’s third global source for the company’s industry leading 3500 series engines. 
Caterpillar 3500 series engines have over the past two decades provided power for Caterpillar's … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Moscow Office Prices To Surge: JLL

Posted: 19 Nov 2010 10:55 AM PST

According to a report published by Jones Lang LaSalle Incorporated (NYSE:JLL), a leading real estate investment trust (REIT), global office property prices will increase the most in Moscow as investors vie for premium assets. The report anticipates that office properties in Moscow will increase by more than 20% in 2011, while those in Tokyo, Hong Kong, Singapore, London, Paris, Sao Paulo, Shanghai, New York, San Francisco, Toronto and Washington DC are expected to rise by 10% to 20%.
The Jones … [visit site to read more] or compare Best Credit Cards and Best CD Rates


“Look Short-term…avoid Too Much Exposure To Downward Pressure”

Posted: 19 Nov 2010 10:43 AM PST

11/19/10 Meridian Equity Partner’s Jonathan Corpina discusses today’s equity action, and next week’s key … [visit site to read more] or compare Best Credit Cards and Best CD Rates


USD, JPY Gain On Risk

Posted: 19 Nov 2010 05:40 AM PST

The USD pared earlier weakness vs. the EUR. Low-yielding currencies gained as China moved to curb … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – USD/CHF Up During The U.S. Session

Posted: 19 Nov 2010 10:25 AM PST

Forex Pros – The U.S. Dollar was higher against the Swiss Franc on Friday.

USD/CHF was trading at 0.9990, up 0.31% at time of writing.

The pair was likely to find support at 0.9763, Monday's low, and resistance at 0.9998, today's high.

Meanwhile, the U.S. Dollar was down against the Euro and up against the Japanese Yen, with EUR/USD gaining 0.07% to hit 1.3650 and USD/JPY rising 0.01% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates


European Markets Mixed At Close; Dax Up 0.17%

Posted: 19 Nov 2010 09:55 AM PST

Forex Pros – European stocks were mixed after the closing bell on Friday.

At the close of European trade, Germany's DAX rose 0.17%, London's FTSE 100 shed 0.62%, France's CAC 40 declined 0.20% and the EURO STOXX 50 was down 0.33%.

Meanwhile, on Wall Street, equity markets were down after the open. The Dow Jones Industrial Average was down 0.08%; the S&P 500 index shed 0.04%, while the Nasdaq 100 index declined … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – AUD/USD Down During The U.S. Session

Posted: 19 Nov 2010 09:45 AM PST

Forex Pros – The Australian Dollar was lower against the U.S. Dollar on Friday.

AUD/USD was trading at 0.9844, down 0.54% at time of writing.

The pair was likely to find support at 0.9726, Tuesday's low, and resistance at 0.9920, Monday's high.

Meanwhile, the Australian Dollar was down against the Euro and the Japanese Yen, with EUR/AUD gaining 0.59% to hit 1.3864 and AUD/JPY falling 0.56% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Fed Chairman Bernanke Defends QE2 In Frankfurt Speech

Posted: 19 Nov 2010 09:31 AM PST

Fed Chairman Bernanke held a speech in Frankfurt where he defended the Federal Reserve's recent announcement to expand its quantitative easing by $600 billion. The news has been received with derision from central bankers in emerging markets, as they believe this move's sole intention is to weaken the US Dollar, which will prop up inflation and cause higher interest rates. Critics within the US say that it can fuel domestic inflation and risks creating asset bubbles.

In … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Merge Upgraded To Outperform

Posted: 19 Nov 2010 09:20 AM PST

We have recently upgraded Merge Healthcare (NASDAQ:MRGE) to Outperform with a target price of $4.75.
Merge reported revenues of $45.2 million, up 167.5% from $16.9 million in the year-ago period. Results for the reported quarter include sales of AMICAS, which was acquired in April 2010. However, adjusted revenue was $48.5 million, higher than the year-ago quarter's adjusted revenue of $45.7 million and the Zacks Consensus Estimate of $43 million.
The overall US health IT (HIT) market witnessed a … [visit site to read more] or compare Best Credit Cards and Best CD Rates


The GM Stock Offering: Why We Can’t All Be Winners

Posted: 19 Nov 2010 09:12 AM PST

I have a big problem with the whole General Motors Corporation (NYSE:GM) government-assisted bankruptcy and yesterday's new public offering.

GM originally listed on the NYSE back in 1916. Through its roughly 100-year history, the storied automaker had its ups and downs like every other business. But the buffoon management of the early 2000s ruined the company. Unlike Ford (NYSE:F), which prepared for and weathered the downturn in the economy, GM lost over $80.0 billion between 2006 and … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Salesforce Tops Revenue And EPS

Posted: 19 Nov 2010 09:05 AM PST

Salesforce.com (NYSE:CRM) reported third quarter fiscal 2011 adjusted net income of 20 cents per share, above the Zacks Consensus Estimate of 19 cents.
Revenues
Revenues in the quarter were $15.4 billion, an increase of 19.0% from $12.9 billion in the year-ago quarter. Results exceeded the company's guidance range of $408.0 million to $410.0 million. The company witnessed a robust demand for its products, along with broad-based revenue strength across geographical regions.
Going by segments, … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Rating Agencies Downgrade Regions

Posted: 19 Nov 2010 09:05 AM PST

Rating agencies have downgraded Regions Financial Corporation (NYSE:RF) following leadership changes in its Risk Management Group subsequent to the resignation of its chief risk officer. 
Both the rating agencies – Fitch Ratings and Moody’s Investors Service, a unit of Moody's Corp. (NYSE:MCO) – have shrunk Regions' ratings. Asset quality issues and the management reshuffle in the Risk Management team are the primary reasons for this rating downgrade. While the chief risk officer and the … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – EUR/USD Up At The End Of European Session

Posted: 19 Nov 2010 09:00 AM PST

Forex Pros – The Euro was higher against the U.S. Dollar on Friday.

EUR/USD was trading at 1.3654, up 0.09% at time of writing.

The pair was likely to find support at 1.3448, Tuesday's low, and resistance at 1.3751, Monday's high.

Meanwhile, the Euro was up against the British Pound and the Japanese Yen, with EUR/GBP gaining 0.60% to hit 0.8555 and EUR/JPY rising 0.07% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – GBP/USD Down At The End Of European Session

Posted: 19 Nov 2010 09:00 AM PST

Forex Pros – The British Pound was lower against the U.S. Dollar on Friday.

GBP/USD was trading at 1.5960, down 0.50% at time of writing.

The pair was likely to find support at 1.5840, Tuesday's low, and resistance at 1.6155, Monday's high.

Meanwhile, the British Pound was down against the Euro and the Japanese Yen, with EUR/GBP gaining 0.60% to hit 0.8555 and GBP/JPY falling 0.53% to hit … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Maintain Outperform On Dejour (DEJ)

Posted: 19 Nov 2010 08:36 AM PST

by Steven Ralston, CFA
Dejour (DEJ) reported results for the third quarter of 2010 ending September 30, 2010. Quarterly earnings were a loss of CAD $0.01 per diluted share. Total revenues increased 141% year-over-year to $2.54 million attributable to two new wells (one gas and one oil) coming on line in May with unlimited production for 90 days, of which a portion was recorded in the third quarter. Sequentially, average production increased to 610 BOE/D from 599 BOE/D in the second … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Gap Meets Estimate, Affirms Outlook

Posted: 19 Nov 2010 08:35 AM PST

Gap Inc.'s (NYSE:GPS) third-quarter 2010 earnings of 48 cents per share rose 9.0% from last year’s 44 cents and met the Zacks Consensus Estimate.
During the quarter, net sales grew 1.8% to $3.65 billion from $3.59 billion in the year-ago quarter. Same-store sales remained flat for the quarter, reflecting growth in Banana Republic North America (+1%), Gap North America (+1%) and the International division (+3%), offset by a 2% decline in comparable store sales in Old Navy North America. The … [visit site to read more] or compare Best Credit Cards and Best CD Rates


American Eagle Meets, Cuts Costs

Posted: 19 Nov 2010 08:35 AM PST

American Eagle Outfitters Inc.'s (NYSE:AEO) third-quarter 2010 adjusted earnings skipped to 29 cents per share from the year-ago earnings of 25 cents per share, but remained in line with the Zacks Consensus Estimate. The adjusted quarterly earnings excluded a loss of 12 cents per share on sale of investment securities.
During the quarter, American Eagle's net sales edged up 2.2% year over year to $752.0 million, slightly ahead of the Zacks Consensus Estimate of $751 million. Same-store sales … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Baker Hughes Active In Australia

Posted: 19 Nov 2010 08:35 AM PST

To cope with an increasing demand for its products, Baker Hughes Inc. (NYSE:BHI) has opened a new facility in Welshpool, Australia. This is a 340,000 square feet facility, which includes offices, laboratories, training space, workshop facilities, a warehouse and storage as well as an equipment lay-down area.
The new facility will serve as the operations base for Australia and New Zealand and cater to three of the company's service lines such as pumping services, tubular services, and process and … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Zacks Updates From AHA

Posted: 19 Nov 2010 08:35 AM PST

by Zacks Small-Cap Research
Earlier this week, Zacks Small-Cap Research biotechnology analysts, Jason Napodano, CFA, was in attendance at the American Heart Association (AHA) meeting held in Chicago, Il.  Napodano has updated his research reports on Aastrom Biosciences (NASDAQ:ASTM), Cytori Therapeutics (NASDAQ:CYTX), and Nile Therapeutics (NASDAQ:NLTX) following key data presentations on these stocks over the past week.
For a copy of the Zacks Small-Cap Research report on Aastrom Biosciences (ASTM), … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Marvell Beats, Guidance Lowered

Posted: 19 Nov 2010 08:35 AM PST

Marvell Inc. (NASDAQ:MRVL) reported third quarter fiscal 2011 adjusted earnings per share (EPS) of 41 cents, ahead of the Zacks Consensus Estimate of 38 cents. The adjusted EPS excludes amortization of intangible assets and restructuring charges, but includes stock-based compensation expenses.
The quarter's outperformance was driven by strong demand from the company's mobile, wireless and storage end-markets.
Revenue
Marvell reported revenues of $959.3 million in the third quarter, up 19.5% from … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Autodesk Beats Zacks Consensus

Posted: 19 Nov 2010 08:35 AM PST

Software design maker, Autodesk Inc. (NASDAQ:ADSK) reported third quarter 2011 earnings of 27 cents per share, beating the Zacks Consensus Estimate by 2 cents.
However, shares were down $2.06 (5.68%) to $34.20 in after hours trading.
Earnings, including stock-based compensation but excluding one-time items, leaped 58.8% year over year, primarily driven by strong revenue growth.
Operational Performance
Net Income, including stock-based compensation ($17.0 million) but excluding one-time items ($14.4 … [visit site to read more] or compare Best Credit Cards and Best CD Rates


MeadWestvaco Expands, Ups Dividend

Posted: 19 Nov 2010 08:35 AM PST

MeadWestvaco Corporation (NYSE:MWV) plans to expand its Rigesa corrugated packaging business in Brazil for a total investment of $480 million. The company will develop its existing facility located in Santa Catarina State and install a new paperboard machine, which will double the capacity of its Três Barras mill. The investment will be funded by cash as well as borrowing.
Once construction and installation of the new machine is completed in mid-2012, it will produce 300,000 metric tons per year … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Australian Dollar: Key ST Resistance At 10725

Posted: 19 Nov 2010 08:34 AM PST

Update on supports and resistances. … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Canadian Dollar: The Downside Prevails

Posted: 19 Nov 2010 08:34 AM PST

Update on supports and resistances. … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Market Musings: 11.19.10

Posted: 19 Nov 2010 08:09 AM PST

We are all familiar with the market adage that “hope is not a strategy”.  However, let’s acknowledge that it is the expectation that “things” will be better in the future or the hope that today’s economic data points will lead to better times are what drives prices higher.  So to invest in the markets you got to have some belief or hope that you have it right.

And it is certainly hope that is driving today’s market.  But the hope isn’t founded on robust economic data.  … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex Trading: USDJPY Continues To Non-trend.

Posted: 19 Nov 2010 08:06 AM PST

The USDJPY continues to non-trend in a narrow trading range.  The pair is above the 100 hour MA at 83.23 area but is below the channel trendline and remains below the ceilings at 83.58 and 83.78.  When a market non trends look for a transition into a trend.  So watch the clues. Watch the key technical levels.  Taking a look at the 5 minute chart below.  The price is stuck in between a narrow range.  On a break of the high or low extreme what you want to see is a … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex Trading: GBPUSD Finds Susport At The 61.8% Retracement.

Posted: 19 Nov 2010 07:55 AM PST

The GBPUSD fell below the 100 hour MA a thte 1.5976 level but has found support buyers at the 1.5934 level. This level corresponds with the 61.8% Fibonacci retracement of the move up from the  weeks low. to the high reached earlier … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Opening Bell Market Monitor: ANN, FL, CRM

Posted: 19 Nov 2010 07:20 AM PST

11/19/10 The latest in news, commentary, and information on what’s moving the US equities … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Discount For The Value Investing Congress

Posted: 19 Nov 2010 07:15 AM PST

Go to The Value Investing Congress and save big enter promo code W11VW1 … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Website Announcement

Posted: 19 Nov 2010 05:39 AM PST

Some of you are aware that the website was down most of the day yesterday. The problem is now fixed and I hope that never occurs in the future. I have to give a very special thanks to a fellow value investor Neal who runs two great value investing site: http://www.stockspinoffs.com/, and http://www.inelegantinvestor.com/, and his colleague who runs http://www.gadgetwisdom.com/. They not only worked tirelessly to fix the site they did not even ask for any payment, they just did it out of … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Morning News Notes: 11.18.10

Posted: 18 Nov 2010 07:51 AM PST

The morning news notes as prepared by TL…Ireland, China, South Korea, “rally in junk is over”, and muni bonds.

“Morning News Notes: November 18, 2010″

click … [visit site to read more] or compare Best Credit Cards and Best CD Rates


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