Tuesday, December 28, 2010

DailyMarkets.com - One Reason To Bet On U.S. Stocks In 2011

DailyMarkets.com - One Reason To Bet On U.S. Stocks In 2011


One Reason To Bet On U.S. Stocks In 2011

Posted: 28 Dec 2010 11:50 AM PST

There are definitely plenty of reasons to be concerned about the U.S. economy — and the broad market — in the year ahead.

But as I prepare my strategy for the coming year, there's an area that clearly argues for being bullish on stocks in 2011 … and it's probably not one you'd expect …

I'm talking about the political climate in Washington!

As I told my Income Superstars subscribers last month …

The Presidential Cycles Argue for Strong Gains from U.S. Shares in … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Cosan And Amyris Join Forces

Posted: 28 Dec 2010 11:35 AM PST

Sugar and ethanol producer, Cosan Limited (NYSE:CZZ) formed a joint venture with California-based Amyris Inc.(AMRS), pursuant to their term sheet entered in June 2010. The joint venture will primarily look into the development, production and commercialization of renewable base oils worldwide.
Base oils are the prime ingredients for the manufacture of lubricants oils, derived from crude oil refining process. Additives are added to base oils to meet certain performance criterion for the … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Hungary ETFs Face Uphill Battle

Posted: 28 Dec 2010 11:19 AM PST

Recently, credit rating agency Fitch downgraded Hungary's foreign currency credit rating to just above junk status, fueling concerns of the overall health of the nation's economy and what lies ahead.
Fitch stated that a primary driver behind its downgrade was due to a "material worsening in the underlying medium-term budget position".  This downgrade came shortly after the Hungarian parliament passed its 2011 budget.  The new budget is expected to run a little leaner than in … [visit site to read more] or compare Best Credit Cards and Best CD Rates


DuPont Buys Two Seed Makers

Posted: 28 Dec 2010 11:05 AM PST

EI DuPont de Nemours & Co. (NYSE:DD), the world's second- largest seed maker announced that its Pioneer Hi-Bred seed unit has acquired Washington Court House, Ohio-based Seed Consultants Inc. and Lake Providence, Louisiana-based Terral Seed. These companies had been distributing seeds under the Pioneer trademark.
DuPont's wholly-owned subsidiary, Pioneer Hi-Bred International Inc., operates in the seed industry and has seed production facilities located throughout the world. Seed … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Home Prices Still Falling

Posted: 28 Dec 2010 10:35 AM PST

In October, home prices continued to slip, and the declines were very widespread. The Case-Schiller Composite 10 City index (C-10) fell 0.93% on a seasonally adjusted basis and is up just 0.20% from a year ago. The broader Composite 20 City index (which includes the cities in the C-10) fell by 0.99% on the month and is down 0.82% from a year ago. In September, the year-over-year gains were 1.52% for the C-10 and 0.55% for the C-20, so it looks like the year-over-year gains are rolling over.
Of … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Kodak Partners With NEC Corp.

Posted: 28 Dec 2010 10:35 AM PST

Eastman Kodak Company (NYSE:EK) signed a license agreement with Tokyo based NEC Corp. in order to access each other's patent portfolio. The agreement is expected to strengthen Kodak's intellectual property portfolio.
Kodak carries out numerous expansion programs and continuously launches new products at competitive prices; which are expected to push growth despite the current difficult environment for the entire industry.
Moreover, Kodak reported improved results for the third quarter of … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Risk Aversion Returns On Weak Data

Posted: 28 Dec 2010 10:14 AM PST

12/28/10 Risk aversion returned this session following weaker-than-expected consumer confidence and home prices … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Demand For GM Calls Rises As Analyst Upgrades Lift Shares

Posted: 28 Dec 2010 10:13 AM PST

Demand for GM calls rises as analyst upgrades lift shares
Today’s tickers: GM, CECO, PFE & EDMC
General Motors Co. (NYSE:GM) – An onslaught of analyst upgrades for General Motors sent the automaker’s shares higher and kicked bullish trading in its options into high gear today. GM’s shares increased as much as 3.00% to secure an intraday high of $35.64 as of 12:55pm. The car and truck manufacturer was rated new ‘outperform’ with a target share price of $43.00 at Credit Suisse, new ‘hold’ with a … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Oil Rise Continues, Getting Closer To $92

Posted: 28 Dec 2010 05:11 AM PST

12/28/10 Front month crude prices continued to rise this session following more weakness in the US … [visit site to read more] or compare Best Credit Cards and Best CD Rates


AAR Corp. Outperforms

Posted: 28 Dec 2010 10:05 AM PST

We maintain our Outperform recommendation on AAR Corp. (NYSE:AIR) based on Aviation Worldwide Services (AWS) acquisition, which pushed the second quarter 2011 EPS to 42 cents, beating the Zacks Consensus Estimate of 36 cents.  AWS is expected to beaccretive to earnings and margins and anticipated to have a positive impact on the company's fleet expansion too.
Aviation Worldwide Services, a leading provider of expeditionary airlift services and aircraft modifications for the U.S. and other … [visit site to read more] or compare Best Credit Cards and Best CD Rates


3 Things That Could Stop Gold’s Run

Posted: 28 Dec 2010 09:53 AM PST

Normally we write about the things and conditions that cause precious metals to rise. While these things may be obvious, the corresponding rise in the bull market will not always be consistent and linear. Small and large corrections will occur along the way. Some will be purely technical while some have real drivers. There are three things which can precede a deep correction or consolidation in the precious metals complex.

Other Markets Strengthen

Precious metals perform best when … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Bought And Sold ANO, Sold ZSL

Posted: 28 Dec 2010 09:50 AM PST

I decided to try my hand at a day trade, as there is no school for me to teach this week (thank heavens).  I bought Anooraq Resources Corp (ANO) at $1.45 in the premarket.  I noticed that platinum had had quite a strong advance overnight and that this development did not seem to be reflected in the price of this stock.  Lucky guess, as it resulted in a quick 6.9% day trade gain.

Click on any chart to ENLARGE

I have been waiting to see when gold and silver would … [visit site to read more] or compare Best Credit Cards and Best CD Rates


FMC Wins Supply Deal From Statoil

Posted: 28 Dec 2010 09:35 AM PST

Oil drilling equipment maker FMC Technologies (FTI) announced that it has won a supply contract from Statoil ASA (STO). The deal price is valued at $75 million.
Per the deal, FMC Technologies will manufacture and supplyfour subsea trees, one manifold, subsea and topside control systems and an umbilical to Norway-based major Statoil. These equipments will be used for the development of the Vigdis North-East oil and gas field in the Norwegian sector of the North Sea.
All equipments for the … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Goldman To Play Down Risk Taking

Posted: 28 Dec 2010 09:20 AM PST

To discourage the employees inherent attitude of taking excessive risk, Goldman Sachs Group Inc. (NYSE:GS) has devised a new compensation plan. According to a regulatory filing made by the company last week, this incentive plan, which supplements its current compensation programs, will reward the key employees for their contribution to the long-term performance goals.
However, the company would take back or cancel all or a part of the award in situations where the employee violates company rules … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Sinopec’s Yuanba Endeavor

Posted: 28 Dec 2010 09:20 AM PST

China Petrochemical Corporation, the parent company of China Petroleum & Chemical Corporation (aka Sinopec or SNP), is enthusiastic about building production capacity at its Yuanba gas field, located in southwestern Sichuan. It targets about 16.4 million cubic meters per day, or, 6 billion cubic meters (Bcm) of annual natural gas production capacity in the field by the end of 2015.
The Yuanba gas field is a potential domestic source that holds approximately half of the reserves at the … [visit site to read more] or compare Best Credit Cards and Best CD Rates


RMBS: License Renewal & Share Buyback

Posted: 28 Dec 2010 09:05 AM PST

Rambus Inc.(NASDAQ:RMBS), announced yesterday, the renewal of its patent licensing agreement with Renesas Electronics Corporation, a company formed through the merger of Renesas Technology Corp. and NEC Electronics Corporation. Per the terms of the agreement, Renesas Electronics can use patented innovations of Rambus in its broad range of logic integrated circuit products.
The same day, Rambus reported the completion of an accelerated share repurchase program announced on August 19, 2010. The … [visit site to read more] or compare Best Credit Cards and Best CD Rates


HP Wins $2.5B NASA Contract

Posted: 28 Dec 2010 09:05 AM PST

Computing major Hewlett-Packard & Co. (NYSE:HPQ) announced that it has won a ten-year information technology (IT) contract from NASA for a total value of approximately $2.5 billion. HP sealed the contract after beating global security and advanced IT company Lockheed Martin Corp. (NYSE:LMT).
The contract allows HP to service and manage the computers at NASA. The Enterprise Services segment of HP will provide, manage and secure required IT services crucial for the NASA workforce to support its … [visit site to read more] or compare Best Credit Cards and Best CD Rates


3 Key Lessons Learned From 2010

Posted: 28 Dec 2010 09:05 AM PST

Every year offers new twists and turns for investors to navigate. And each year provides new lessons that, if properly understood, can help make us better investors in the future. Here are 3 key lessons that I personally learned in 2010, which I think may offer help to other investors as well.
1) Don't Fight the Fed
The Fed was just not going to let deflation unfold. So they kept the pedal to the metal on quantitative easing. They also coaxed the government into keeping the stimulus flowing, … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Red Robin Expands

Posted: 28 Dec 2010 08:35 AM PST

Greenwood Village, Colorado-based Red Robin Gourmet Burgers Inc. (NASDAQ:RRGB), which currently operates 430 restaurants across the United States and Canada, is planning to open a 5,673 square foot restaurant in Bowie, Maryland. The new restaurant will seat 179 guests and open on January 10, 2011.  
The burger chain already has eight restaurants in Maryland including sites in Towson and Owings Mills.The new restaurant will be opened at 15650 Excelsior Drive, located in the Bowie Towne … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Earnings Scorecard: Darden

Posted: 28 Dec 2010 08:35 AM PST

On December 20, Darden Restaurants Inc. (NYSE:DRI) reported its second quarter fiscal 2011 earnings of 55 cents per share, which inched past the Zacks Consensus Estimate of 54 cents and grew 26% year over year. Given below is our report on the results of the recent earnings announcement, subsequent analyst estimate revisions and the Zacks ratings for the short and long term.
Earnings Report Flashback
Second quarter fiscal 2011 total revenue spiked 5.2% from the prior-year quarter to $1,726.2 … [visit site to read more] or compare Best Credit Cards and Best CD Rates


PetroChina To Sell Pipeline Stake

Posted: 28 Dec 2010 08:35 AM PST

PetroChina Company Limited (NYSE:PTR) is planning to sell its stake in a gas pipeline operator to its subsidiary Kunlun Energy Co. for approximately $2.9 billion. The decision has been taken by PetroChina to make fuel distribution the main business of Kunlun Energy.
PetroChina acquired a majority stake of Kunlunin August 2008 to turn it into a gas distributor. PetroChina's initiatives toward natural gas is notable as its natural gas business is a potentially lucrative growth area that is … [visit site to read more] or compare Best Credit Cards and Best CD Rates


CRL For Alimera’s Eye Drug

Posted: 28 Dec 2010 08:31 AM PST

Recently, Alimera Sciences Inc. (ALIM) faced a huge blow when the US Food and Drug Administration (FDA) refused to approve its lead candidate Iluvien in the present form due to insufficiency of data and issued a complete response letter (CRL). Moreover, the US regulatory body, while issuing the CRL, also cited deficiencies with third-party manufacturers of the eye drug. The companies are working to resolve the problems.
Alimera is looking to gain approval for Iluvien for the treatment of … [visit site to read more] or compare Best Credit Cards and Best CD Rates


TARP: A Success Story?

Posted: 28 Dec 2010 08:31 AM PST

The $700 billion Troubled Asset Relief Program (TARP), which was initiated two years ago to rescue the nation's financial industry, took another important step last Wednesday with the repayment of $2.66 billion by six banks. The repayments have further lowered the cost of TARP to taxpayers.   

After functioning for two years, TARP expired in October. But many of the banks have yet to repay the funds they had taken as part of their participation in the program. … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Vivo Upgraded On Strong Prospects

Posted: 28 Dec 2010 08:30 AM PST

We are upgrading our recommendation on Vivo Participacoes (NYSE:VIV), the largest wireless operator in Brazil, to Outperform from Neutral. Currently, the stock has the Zacks #2 (Buy) Rank.
Vivo has a strong brand name in Brazil and the growth trend for the wireless business in that country remains positive in our view with the expansion of 3G coverage. The company's differentiated services along with its investment in spectrum licenses will provide an upside to the company's revenue and … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Cal-Maine Misses Estimate

Posted: 28 Dec 2010 08:30 AM PST

Jackson, Mississippi-based Cal-Maine Foods Inc (NASDAQ:CALM) posted second-quarter 2011 earnings of 63 cents per share, which were well below the Zacks Consensus Estimate of 72 cents and year-ago quarter's earnings of 67 cents. The company reported lower-than-expected profit due to higher feed costs, which the company said would remain a concern in fiscal 2011 as well.
Inside the Headline Numbers
Total revenue in the quarter under review rose 2% year over year to $234.5 million, driven by stronger … [visit site to read more] or compare Best Credit Cards and Best CD Rates


“Bank Stocks Are Starting To Take Off”

Posted: 28 Dec 2010 08:30 AM PST

12/28/10 NYSE traders discuss next year’s investment strategies, and weigh in on the top sectors in the equity … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Australian Dollar: Under Pressure

Posted: 28 Dec 2010 08:29 AM PST

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


Canadian Dollar: Caution

Posted: 28 Dec 2010 08:29 AM PST

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


Warm Weather Cools Natural Gas

Posted: 28 Dec 2010 08:28 AM PST

Today’s Idea
Large inventories and record high production continue to weigh heavily on the Natural Gas market. Many bulls were holding out hope that the winter months would be colder than initially forecast, and they got their wish earlier this month. However, much of the country will see warmer weather in the New Year, dashing those hopes. Technically, a breakout from consolidation would suggest prices could test levels well south of the $4 level. Some traders may possibly wish to consider … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – U.S. Dollar Mixed Vs. Major Rivals Following U.S. Data

Posted: 28 Dec 2010 08:20 AM PST

Forex Pros – The U.S. dollar was mixed against its major counterparts on Tuesday in thin post-Christmas trade, following the release of worse-than-expected U.S. data on home prices and consumer confidence. 

With markets in the U.K., Australia, New Zealand and Canada closed for an extended Christmas break and many investors already away on year-end leave, trading volumes were low, resulting in volatile trade.

Meanwhile, during early U.S. trade, the greenback was up against the euro, … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex Trading: EURUSD Tests Next Target After Breaking 100 Hour MA

Posted: 28 Dec 2010 08:16 AM PST

The channel trend was broken yesterday and forced the EURUSD higher. Today, the price is back down testing that old trendline at 1.3103. I find that this old trendline has a tendency to be a borderline that buyers (in this case) can lean against.
Resistance above now comes in a the 100 hour MA (blue line in the chart above) at the 1.3137 level. There should be sellers against this level. A move above negates some of the bearish bias for the … [visit site to read more] or compare Best Credit Cards and Best CD Rates


The Finite World Of Paul Krugman’s Thinking

Posted: 28 Dec 2010 08:16 AM PST

Paul Krugman claims that the commodity markets are telling us that we’re living in an Ehrlich-like finite world of resource scarcity where “the rapid growth of emerging economies is placing pressure on limited supplies of raw materials, pushing up their prices.”

And what are the implications of the recent increase in certain commodity prices? According to Krugman, “It’s a sign that we're living in a finite world, one in which resource constraints are becoming increasingly binding.”

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


Opening Bell Market Monitor: FCX, DAL

Posted: 28 Dec 2010 03:03 AM PST

12/28/10 The latest in news, commentary, and information on what’s moving the US equities markets. Watch this broadcast LIVE at 9:30 am EST daily @ … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – EUR/USD Erases Gains As U.S. Dollar Recovers In Choppy Trade

Posted: 28 Dec 2010 07:48 AM PST

Forex Pros – The euro erased gains against the U.S. dollar on Tuesday amid thin, volatile trade, retreating from a 7-day high to fall to a daily low, after official data showed that France's economy grew less than previously forecast. 

EUR/USD hit 1.3135 during early U.S. trade, a daily low; the pair subsequently consolidated at 1.3158, dipping 0.06%.

The pair was likely to find support at 1.3071, Monday's low, and resistance at 1.3358, the high of December 17.

Earlier in the day, … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex – GBP/USD Erases Gains, Hits 4-day Low In Thin, Volatile Trade

Posted: 28 Dec 2010 07:30 AM PST

Forex Pros – The pound erased gains against the U.S. dollar on Tuesday in thin post-Christmas trade, falling to a fresh 4-day low, following the release of downbeat data on U.K. retail sales.

GBP/USD hit 1.5368 during early U.S. trade, the pair's lowest since December 22; the pair subsequently consolidated at 1.5383, shedding 0.24%.

The pair was likely to find support at 1.5295, the low of September 7, and resistance at 1.5567, the high of December 21.

With markets in London closed for … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Forex Trading: EURUSD Finds Support At The 100 Hour MA

Posted: 28 Dec 2010 07:18 AM PST

The EURUSD fell back down in NY trade but found support against the 100 hour MA. The ability to stop the downside fall, gives profit takers a level to lean against with a break likely leading to lower levels. The 1.3180-85 becomes upside resistance once again for the … [visit site to read more] or compare Best Credit Cards and Best CD Rates


U.S. Stocks Decline After Downbeat Data; Dow Jones Sheds 0.10%

Posted: 28 Dec 2010 07:15 AM PST

Forex Pros – U.S. stocks posted modest losses after the open on Tuesday in thin trade leading up the new year, after worse-than-expected data on U.S. home prices and consumer confidence dampened market sentiment.  

During early U.S. trade, the Dow Jones Industrial Average shed 0.10%; the S&P 500 index fell 0.11%, while the Nasdaq Composite index slumped 0.13%.

Earlier in the day, the S&P/Case-Shiller home price index fell more-than-expected in October, declining by 0.8%, … [visit site to read more] or compare Best Credit Cards and Best CD Rates


Lackluster Bonds Turn South In Face Of Supply Mountain

Posted: 28 Dec 2010 07:15 AM PST

Bond investors are trapped in an awkward place as liquidity conditions remain extremely thin. A move towards lower yields in the U.S. is waning as supply and evidence of domestic recovery keep reminding investors that the highest yields in many months along the curve is perhaps not yet a viable proposition. Meanwhile European yields are trudging lower as investors fear that once New Year liquidity returns, so will the haunting theme of further sovereign defaults.
Eurodollar futures – The U.S. … [visit site to read more] or compare Best Credit Cards and Best CD Rates


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