Tuesday, May 22, 2012

DailyMarkets.com - Hot Option Plays: Pressure On The Euro

DailyMarkets.com - Hot Option Plays: Pressure On The Euro

Hot Option Plays: Pressure On The Euro

Posted: 22 May 2012 11:49 AM PDT

Cusick’s Corner 05-22-2012
The market is in the green into the Midday, S&Ps +.44%, but not continuing the pace it had yesterday. If the trend continues at yesterday’s pace then the scenario of this being an oversold bounce might come under scrutiny. The action in the Bonds, TLT -1.4%, is catalyzing the equities, potentially in anticipation of intervention by the Fed here domestically or in neighboring economies, but this has been the great bluff. What is not as positive is the pressure on … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Shell And Allies Launch LNG Unit

Posted: 22 May 2012 11:23 AM PDT

European oil biggie Royal Dutch Shell Plc (RDS.A) along with Asian partners – Japanese energy giant Mitsubishi Corporation, state-controlled China National Petroleum Corporation and Korea Gas Corporation – officially launched the liquefied natural gas (LNG) terminal project in Western Canada, near Kitimat, British Columbia.
The companies will execute all necessary engineering and evaluation works plus conduct meetings with the local authorities regarding the prospects and potential of the … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Capella Down To Underperform

Posted: 22 May 2012 11:23 AM PDT

We have downgraded our rating on Capella Education Company (NASDAQ:CPLA) from Neutral to Underperform on a weak outlook for the year.
Capella's first-quarter 2012 earnings of 82 cents per share were down approximately 15% from adjusted earnings of 97 cents per share in the first quarter of 2011 due to top-line and margin decline. However, the first quarter earnings surpassed the Zacks Consensus Estimate of 78 cents. Quarterly revenues of $109.4 million fell 1.8% from $111.4 million in the year-ago … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

EQT Walks The Tightrope

Posted: 22 May 2012 11:07 AM PDT

We maintain our Neutral recommendation on EQT Corporation (NYSE:EQT), an integrated energy company with an emphasis on natural gas supply activities in the Appalachian area.
The company posted lackluster numbers in the first quarter due to an 11% reduction in the average wellhead sales price and unseasonably warm weather in the Distribution segment's service area. 
EQT Corp. expects 2012 production sales volume in the range of 250 to 255 billion cubic feet equivalents (Bcfe), 30% higher … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

No. 1 Barrier To Small Business Success? Not High Taxes, But Excessive Regulation And Licensing

Posted: 22 May 2012 11:05 AM PDT

This week is National Small Business Week, described as a time to celebrate the special impact made by outstanding American entrepreneurs and small business owners, according the event’s sponsor, the Small Business Administration.  So it’s a good time to ask the question, What’s the biggest barrier that small business owners face that prevents them from expanding, investing, hiring more workers, and becoming more successful?  Taxes?

Well, it turns out that small-business owners place … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Costa: “Today’s Gains Based On Housing”

Posted: 22 May 2012 11:00 AM PDT

05/22/12 Empire Executions’ Peter Costa talks about today’s modest gains for the US equity averages, and expectations for Wednesday’s informal meeting of EU leaders. Technical levels for the S&P 500 are also … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

AutoZone Beats By A Penny

Posted: 22 May 2012 10:48 AM PDT

AutoZone Inc. (NYSE:AZO) posted an 18.7% rise in earnings per share to $6.28 in the third quarter of fiscal 2012 ended May 5, 2012 from $5.29 in the third quarter of fiscal 2011. With this, it exceeded the Zacks Consensus Estimate by a penny. In absolute terms, profits were $248.6 million in the reported quarter, up 9.3% compared with $227.4 million in the year-ago quarter.
The company's revenues for the quarter came in at $2.1 billion, up 6.7% compared with $2 billion in the year-ago quarter. … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Polo Ralph Lauren Beats, Guides

Posted: 22 May 2012 10:48 AM PDT

Polo Ralph Lauren Corp. (NYSE:RL) reported fourth-quarter fiscal 2012 earnings per share of 99 cents, beating the Zacks Consensus Estimate of 85 cents per share. Quarterly earnings also witnessed a 33.8% growth from 74 cents earned in the year-ago period. The robust bottom-line performance was primarily driven by solid top-line growth, a lower tax rate and reduced number of shares outstanding.
Quarterly Details
During the quarter, Polo Ralph Lauren’s net revenues climbed 13.7% year over year to … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Dendreon Presents Provenge Data

Posted: 22 May 2012 10:48 AM PDT

Dendreon Corporation (NASDAQ:DNDN) recently announced the presentation of Provenge (sipuleucel-T) data at the American Urological Association (AUA) annual meeting. 
At the AUA meeting, two topics were presented by Dendreon on Provenge. A subgroup analysis of three phase III trials of Provenge in metastatic castrate resistant prostate cancer patients was presented on May 21, 2012. In this analysis, survival benefit in African American men who participated in the three Provenge phase III studies, … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Best Buy Beats Estimates

Posted: 22 May 2012 10:48 AM PDT

Best Buy Company Inc. (NYSE:BBY), the leading specialty retailer of consumer electronic products, recently posted better-than-expected first-quarter 2013 results. The quarterly earnings of 72 cents a share handily surpassed the Zacks Consensus Estimate of 59 cents and increased 11% from 65 cents earned in the prior-year quarter.
However, including one-time items, the company reported earnings of 47 cents, down 27% from the year-ago quarter.  
Result in Detail
Richfield, Minnesota-based Best … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Cable MSOs Opt For Wi-Fi Sharing

Posted: 22 May 2012 10:48 AM PDT

In a major move to counter competitive threat from telecom service providers and other online video streaming providers, the five largest cable operators in the U.S., including Comcast Corp. (NASDAQ:CMCSA), Time Warner Cable Inc. (NYSE:TWC), Cablevision Systems Corp. (NYSE:CVC), Cox Communications Inc., and Bright House Networks LLC have entered into an agreement for free Wi-Fi platform sharing.
Subscribers of these cable MSOs will be able to access Internet from their respective laptops, smartphones, … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Medtronic Posts Mixed Numbers

Posted: 22 May 2012 10:48 AM PDT

Medtronic Inc. (NYSE:MDT) reported fourth quarter fiscal 2012 earnings per share (EPS) of 94 cents, up 31% year over year. However, adjusted EPS during the quarter came in at 99 cents, 10% above the year-ago period and a penny ahead of the Zacks Consensus Estimate. For the full year, adjusted EPS of $3.46 increased 3% year over year and met the Zacks Consensus Estimate.
Revenues were $4.297 billion in the quarter, up 3% (up 4% at constant exchange rates or CER) year over year, beating the Zacks … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

ONEOK Unit Files For A Rate Hike

Posted: 22 May 2012 10:48 AM PDT

ONEOK, Inc.'s (NYSE:OKE) subsidiary, Kansas Gas Service has filed for a rate increase with the Kansas Corporation Commission ("KCC") to recover the investments made by the company to develop its natural gas pipeline infrastructure and facilities. The rate hike, if approved by the KCC, is expected to increase the company's revenue by $32.7 million, which includes a base rate hike of $50.7 million and $18 million decrease in amounts currently recovered through surcharges. 
The … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Eaton Buys Cooper, Forms New Entity

Posted: 22 May 2012 10:48 AM PDT

Eaton Corporation (NYSE:ETN) is set to acquire Irish electrical equipment supplier Cooper Industries plc. (NYSE:CBE). Both the companies have already signed a definitive agreement related to the proposed acquisition. The total equity value of this transaction is estimated at $11.8 billion.
Post regulatory, shareholders and other approvals, the new organization will be named Eaton Global Corporation Plc and will be based in Ireland. The shares of the new entity will be registered with the U.S. … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Conmed Launches New Products

Posted: 22 May 2012 10:48 AM PDT

Surgical devices and technology provider Conmed Corporation (NASDAQ:CNMD) announced the launch of six new medical products by Conmed Endoscopic Technologies business unit.  The enhanced product portfolio will include needles, systems and other surgical devices related to endoscopy.
The contribution of Conmed Endoscopic Technologies business unit to Conmed's total revenue has been flat over the last few years. However, with a broader product offering, Conmed can capitalize on existing … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Frisch’s Seals Golden Corral Sale

Posted: 22 May 2012 10:48 AM PDT

Frisch’s Restaurants Inc. (FRS) finally completed the divesture of all its Golden Corral operations in Ohio, Indiana, Kentucky, West Virginia and Pennsylvania. In March this year, the company inked an asset purchase agreement with NRD Holdings LLC for the sale of 29 Golden Corral restaurants. With this sale, Frisch’s added to its kitty $49.8 million, prior to adjustments for the proration of real estate and personal property taxes, total inventory amounts, and other closing … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Central Bank News Link List – 22 May 2012

Posted: 22 May 2012 10:43 AM PDT

Here’s today’s Central Bank News link list, click through if you missed the previous central bank news link list.  Remember, if you want to submit links for inclusion in the daily link list, just email them through to us or post them in the comments section below.

Monetary Policy Week in Review (Central Bank News)
The week ahead in central banking (Financial Times)
Czech National Bank Holds Interest Rate at 0.75% (Czech Position)
Central Bank of Nigeria Holds Rate at … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Iran Accepts Inspection, Dashing The Hopes Of Crude Bulls

Posted: 22 May 2012 09:59 AM PDT

Tuesday, May 22, 2012
The bear camp is firmly in control of the Crude Oil market at the moment, given the fact that economic projections continue to trend in the wrong direction and some of the geopolitical risks may be mitigated by Iran allowing Western inspectors into the nation. This does not mean the tension will completely dissipate or that Middle East fears will completely go away. Some traders may wish to consider entering into a trade with predefined risk, such as a bear put spread, … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

JPMorgan Halts Share Buyback

Posted: 22 May 2012 09:23 AM PDT

In a surprising turn of events, JPMorgan Chase & Co.'s (NYSE:JPM) CEO announced the suspension of the company's $15 billion share repurchase program. The announcement was made at the Deutsche Bank Securities Global Financial Services Investor Conference in New York on Monday.
The primary reason for the halt was the fact that it does not want any glitches in the plans to meet the Basel III capital requirements. JPMorgan would re-start the program once it is able to rebuild the capital it … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

InterMune To Sell Actimmune Rights

Posted: 22 May 2012 09:08 AM PDT

InterMune Inc. (ITMN) recently announced that it has entered into an agreement with Vidara Therapeutics International Limited for the sale of its rights to Actimmune for $55 million plus royalties. Vidara is a part of an international group of companies operating in the U.S. and Ireland.
The Agreement
As per the agreement, InterMune is set to receive $55 million in cash from Vidara. Moreover InterMune will receive royalty payments on Actimmune sales over a two-year period.
Actimmune is approved … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Stock Market News Briefs: Brown Shoe Company, Cooper Industries, Ltd., Campbell Soup Company, Eaton, Lowe’s Companies

Posted: 22 May 2012 09:08 AM PDT

    Shares of Facebook, Inc. (FB) declined 11% as a result of an aggressive IPO price, the large volume  of shares offered and worries about its slow revenue growth

    Cooper Industries plc (NYSE:CBE) rose 25.1% after it agreed to be purchased by Eaton Corporation (NYSE:ETN) in a cash-and-stock deal amounting to $11.8 billion

    Lowe’s Companies, Inc. (NYSE:LOW) posted first quarter earnings per share of $0.44, surpassing the Zacks Consensus … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Humana Lowers EPS Outlook

Posted: 22 May 2012 09:08 AM PDT

On Monday, Humana Inc. (NYSE:HUM) reduced its earnings per share (EPS) guidance for 2012 to $7.38–$7.58 from its earlier forecast of $7.55–$7.75. The downward revision resulted from a $45 million litigation expense incurred by the company's military division – Humana Military Healthcare Services Inc.
Humana will incur the settlement charge in the second quarter of 2012. Consequently, the company also revised its second-quarter EPS guidance to $1.98–$2.08 from the previous guidance of … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Global News To Hold Down Bounce?

Posted: 22 May 2012 09:08 AM PDT

A rating downgrade of Japan and growth warning for Europe provide the backdrop for today's action, likely forestalling carry-over of Monday's positive momentum. We should keep in mind, though, that Monday's bounce followed almost two weeks of persistence negative performance and is not by any means reflective of a trend reversal. The issues that have been weighing on the market lately are still very much with us and not going away anytime soon.

The OECD's growth warning for Europe, … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Auxilium-Glaxo To Drive Testim Sales

Posted: 22 May 2012 09:08 AM PDT

Specialty biopharmaceutical company, Auxilium Pharmaceuticals, Inc. (NASDAQ:AUXL) recently entered into a co-promotion agreement with GlaxoSmithKline plc's (NYSE:GSK) U.S. subsidiary, GlaxoSmithKline LLC. The companies signed an agreement for the co-promotion of Auxilium Pharma's Testim (1% testosterone), which is approved for the treatment of hypogonadism or low testosterone level.
Deal Terms
The deal provides Glaxo with exclusive rights to co-promote Testim in the U.S. with Auxilium Pharma … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Earnings Preview: Patterson Co

Posted: 22 May 2012 09:08 AM PDT

Patterson Companies (NASDAQ:PDCO), a leading distributor of dental, veterinarian and rehabilitation medical supplies, is slated to report its fourth-quarter fiscal 2012 results before trading begins on Thursday, May 24. Analysts polled by Zacks are currently expecting revenues and earnings per share of $914 million and 57 cents, respectively, for the quarter and $3,510 million and $1.91, respectively, for the fiscal.
With respect to earnings surprises, the Minnesota-based company has either met or … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

GATX Upped To Outperform

Posted: 22 May 2012 09:08 AM PDT

GATX Corporation's (NYSE:GMT) first quarter adjusted earnings were impressive, with year-over-year improvements on higher lease rates. Moreover, increased asset utilization through the reduction of idle rail cars and deployment of new rail cars will be accretive to the company's long-term growth given the growing rail freight market. Further, GATX enjoys a healthy balance sheet and is committed to enhance shareholders' value through strong dividend payments. Consequently, we upgraded our … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Weingarten Inks Deal With Arhaus

Posted: 22 May 2012 09:08 AM PDT

Weingarten Realty Investors (WRI), a real estate investment trust (REIT), recently signed an agreement with Arhaus Furniture to lease a space in Post Oak in Houston, Texas. The financial terms of the agreement were not divulged.
The 19,340 square feet space is at the Center, which is located on the corner of Westheimer Rd and Post Oak Blvd, at the epicenter of Houston's dominant retail destination. The space was previously occupied by Barnes & Noble Inc. (BKS).
Since its inception in … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

STAG Industrial To Offer Shares

Posted: 22 May 2012 09:08 AM PDT

STAG Industrial, Inc. (STAG), a real estate investment trust (REIT), has recently announced its decision to offer 7.3 million shares to enhance its liquidity. The company also decidedto grant the underwriters a 30-day option to purchase up to an additional 1.1 million shares to cover the over-allotment options.  
STAG Industrial intends to use the net proceeds generated from the offering to fund current as well as future acquisitions, to repay debt under its secured corporate revolving … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Medivation Files Enzalutamide NDA

Posted: 22 May 2012 09:08 AM PDT

Medivation, Inc. (NASDAQ:MDVN) and partner, Astellas Pharma Inc., recently submitted a new drug application (NDA) with the U.S. Food and Drug Administration (FDA) for their prostate cancer candidate, enzalutamide. The companies have evaluated enzalutamide in castration-resistant prostate cancer patients who have received docetaxel therapy.
Medivation and Astellas are seeking priority review for their candidate, which if granted, would mean the FDA will complete its review in six months. A response … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Beacon To Buy Cassady Pierce

Posted: 22 May 2012 09:08 AM PDT

In line with its acquisition strategy, Beacon Roofing Supply, Inc. (NASDAQ:BECN) has inked a deal to acquire leading wholesale distributor Cassady Pierce Company ("Cassady Pierce"). The terms of the deal were undisclosed. The transaction is expected to close on May 31, 2012.
The acquisition is expected to fortify Beacon Roofing by expanding its businesses in the Western Pennsylvania region and help the company in augmenting its portfolio of building products.
Moreover, the purchase of Cassady … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Bag Tag Solution By Unisys

Posted: 22 May 2012 09:08 AM PDT

Earlier this week, Unisys Corporation (NYSE:UIS) declared that after three months of hard work, it has finally launched the first ever home-printed baggage tag solutions at Billund Airport in Denmark for international passengers. The solution is designed to render the passenger check-in process simpler and more convenient.
The Internet check-in application and local check-in assistant program had been previously installed successfully by Unisys through its passenger facilitation solution program … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

WPP On An Acquisition Spree

Posted: 22 May 2012 09:08 AM PDT

Ireland-based advertising agency  WPP Group Plc. (NASDAQ:WPPGY) recently penned a contract to acquire stake in a Myanmar based advertising firm, Today Advertising Corporation. The acquisition will be given effect through the company's wholly-owned global advertising and communications entity, Ogilvy & Mather. The financial terms of the agreement were not disclosed.
The strategic acquisition supports the company's expansionary plans and operations in fast growing emerging markets and … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

WellPoint

Posted: 22 May 2012 09:08 AM PDT

WellPoint Inc. (NYSE:WLP) entered into an affiliation with FitOrbit, Inc., in order to provide a wide array of health and wellness solutions to their clients. The company, with an intention of helping clients to better manage their health care cost, chose FitOrbit, which offers round-the-clock virtual services and support to consumers.
According to sources, approximately 42% of the American population could be affected by obesity by 2030, with 11% severely obese. Therefore, the company believes … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

US Dollar Gains Amid Euro Debt Crisis; Yen Underperforms On Ratings Cut

Posted: 22 May 2012 09:01 AM PDT

Fundamental Headlines
- U.K. Inflation Slows As IMF Sees Need for More Stimulus – Bloomberg
- Japan Rating Cut By Fitch On Delays In Tackling Biggest Debt – Bloomberg
- Spanish, Dutch Funding Costs Move Opposite At Auction – WSJ
- OECD Sees Euro Crisis Threatening World Recovery – Reuters
- Euro Falls As Hopes Dim Of EU Summit Progress – Reuters
European Session Summary
The US Dollar (ticker: USDOLLAR) traded higher against all major counterparts while the euro struggled ahead of … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Farewell To James Parthemos (Richmond Fed Research Director)

Posted: 22 May 2012 08:43 AM PDT

I learned today that Jim Parthemos has passed away, at age 92. The world has lost a good man.
Jim was my first boss as Director of Research at the Federal Reserve Bank of Richmond. In retrospect, he was probably my best boss. He and his counterpart at another Federal Reserve Bank offered me similar jobs at identical pay during the hiring season in late 1967. The other job was closer to home, but the choice wasn't even close. It came down to wanting to work for Jim.
I arrived at the Richmond … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

US Stocks Lifted By Existing Home Sales

Posted: 22 May 2012 08:30 AM PDT

05/22/12 After a mixed open, equities turned higher on better-than-expected existing home sales. Facebook extended losses on its third day as a public … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Slight Rebound For Oil

Posted: 22 May 2012 03:00 AM PDT

05/22/12 Front month crude oil prices saw a slight lift this morning on expectations of improved … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Euro Rebound Stalls

Posted: 22 May 2012 03:00 AM PDT

05/22/12 Investors skeptical of progress during the upcoming meeting of European leaders and lingering concerns over the financial health of Greece and Spain kept the euro from posting further … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Home Prices Increase In April By 10.1%, The Largest Yearly Gain In More Than Six Years

Posted: 22 May 2012 07:53 AM PDT

The National Association of Realtors (NAR) reported today on existing-home sales in April with the following highlights:

1. Total existing-home sales (single-family homes, townhomes, condominiums and co-ops) increased 3.4 percent to a seasonally adjusted annual rate of 4.62 million in April from a downwardly revised 4.47 million in March.

2. April home sales this year of 4.62 million were 10% higher than the 4.20 million units in April 2011.

3.  The national median existing-home price … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Gold, Silver And The Miners Bottoming While Facebook Is Busting

Posted: 22 May 2012 07:40 AM PDT

We are witnessing a few cautionary signs that indicate a radically overbought U.S. equity and bond market.  Stealthily, the precious metals, and mining equities are bottoming.  The strong uptrend in the equity markets since October of 2011 has caused many investors to join the herd in the latest investment fad entitled, "Social Media".
Take a look at Groupon, Zynga, LinkedIn, etc.  Their vogue will not last forever.  Sentiment for the social media sector may be … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

America’s Market-Driven Energy Revolution

Posted: 22 May 2012 06:49 AM PDT

While Washington squabbled over energy policy, the markets moved us toward cheap, plentiful energy.

Joel Kurtzman has an excellent editorial in today’s WSJ about how market prices and technology, more than government policy, are driving the U.S. boom in oil and natural gas production.

“Those who doubt that market forces still have the power to transform the world aren’t paying attention to America’s revitalized energy sector. Four years ago, oil prices climbed to about $145 a barrel … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards

Global Stocks Rise Again

Posted: 22 May 2012 01:00 AM PDT

05/22/12 Global stocks gained for a second consecutive morning on speculation European leaders will join China in stepping up efforts to support global … [visit site to read more] or compare Credit Card Rewards and Best Credit Cards
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