Once again, we get more selling in the last hour, as traders obviously did not want to own stocks over the weekend.
Dow -240 to 10913
Nas -65 to 2415
S&P -29 to 1131
Gold was the only group that was positive. Silver sold off.
Good riddance to Q3. Hopefully, things will improve in October.
Friday, September 30, 2011
The Fall of a Great American Company...
Eastman Kodak (EK -49.1%) nosedives on a report the company is hiring restructuring lawyers. Two days ago, Fitch cut its rating on Kodak's debt to a level suggesting a default is probable.
Eastman Kodak was in the Dow Jones Industrial Average from 1930 to April 1, 2004. Obviously Kodak's demise was the development of digital photos and cameras.
Today it is down 0.89 to 0.79 a share. Check out the long term chart:
Eastman Kodak was in the Dow Jones Industrial Average from 1930 to April 1, 2004. Obviously Kodak's demise was the development of digital photos and cameras.
Today it is down 0.89 to 0.79 a share. Check out the long term chart:
At 3:00 pm....
Stocks are still weak, as volume is really drying up. I just went thru the charts of stocks that are making new lows, and it is ugly. Basically, anything to do with China - hitting new lows...any of the shipping stocks - hitting new lows...any Agriculture related or steel related stocks - hitting new lows. I'll try to post some of these charts over the weekend so you can see what they look like.
Right now:
Dow -128
Nas -37
S&P -15 to 1144
The last three days we have seen strong moves in the last hour of trading...let's see what happens today as we reach the end of a somewhat miserable and very volatile 3rd quarter.
Right now:
Dow -128
Nas -37
S&P -15 to 1144
The last three days we have seen strong moves in the last hour of trading...let's see what happens today as we reach the end of a somewhat miserable and very volatile 3rd quarter.
SunPower continues to fall...
Shares of SunPower (SPWRA) fall another 7.4% and hit a 52-week low. The firm appears a leader in the emerging market for high-efficiency cells (I, II), but Morningstar has doubts: "In our view, SunPower uses solar technology that is likely to remain too costly compared to its peers. As a result, we expect the mediocre results of the last couple of years to continue for the foreseeable future."
Universal Display signs deal with Pioneer...
Universal Display (PANL) gains 3.6% after announcing a licensing deal with Pioneer for the use of its OLED technology in lighting products. Like a similar deal announced with Panasonic, the agreement calls for royalties on product sales. Universal Display's shares surged last month on a licensing deal with Samsung for OLED display products.
At 1:00 pm...
Stocks are still lower, but we have at least seen some flashes of buying out there. However, it looks as if most traders have already left for the weekend...so we may not get much change between now and the close.
Dow -105
Nas -34
S&P -14 to 1145
Gold going higher, Silver heading lower.
Dow -105
Nas -34
S&P -14 to 1145
Gold going higher, Silver heading lower.
SEC investigates rate decision leak...
A SEC report says a large credit rating agency "appeared to allow" a pending rate decision to be tipped off to certain people before the rating change was publicly announced. The statement contained in an annual inspection of ratings agency mandated by Dodd-Frank doesn't name S&P, but follows up an investigation of the ratings agency launched last month.
Of course they are talking about S&P...
Of course they are talking about S&P...
Gold and Silver revisited....
Let's check out how gold and silver have been trading. Below are the charts on the futures of both.
Gold currently sits at $1624 an ounce. Silver is currently at $30.38.
You can see from the charts that both are taking a breather from the selling. However, both are close to another breakdown.
Gold has support at $1600 and Silver at around $30.
Gold currently sits at $1624 an ounce. Silver is currently at $30.38.
You can see from the charts that both are taking a breather from the selling. However, both are close to another breakdown.
Gold has support at $1600 and Silver at around $30.
Stocks weak...
At 10:45 am, stocks are weak again...on very slow trading.
Dow -105
Nas -35
S&P -16 to 1145
Not liking this downward trend we are in. First we broke below 1300 on the S&P at the end of July and have never even thought about getting back up there. We are now stuck in a trading range between 1100 and 1225. If we break below 1100 on the downside, that would certainly cause another round of panic selling where we would switch to full protection mode.
On the upside, we really need to see a move back above 1250 before we would commit new money.
Here is the S&P 500 chart:
Dow -105
Nas -35
S&P -16 to 1145
Not liking this downward trend we are in. First we broke below 1300 on the S&P at the end of July and have never even thought about getting back up there. We are now stuck in a trading range between 1100 and 1225. If we break below 1100 on the downside, that would certainly cause another round of panic selling where we would switch to full protection mode.
On the upside, we really need to see a move back above 1250 before we would commit new money.
Here is the S&P 500 chart:
Global Investors Support Buffet Rule....
A Bloomberg poll reveals a majority of global investors support the so-called Buffett Rule proposed by President Obama to tax the income of those earning over $1M a year. Support for the millionaire's tax was highest in Europe, while in the U.S. it only saw 40% approval. "The U.S. does not have a tax rate problem - we have a spending and entitlement problem," noted one investor polled.
As far as I know, Millionaire's ARE paying taxes...in fact they are in the highest tax bracket...currently 35%.
As far as I know, Millionaire's ARE paying taxes...in fact they are in the highest tax bracket...currently 35%.
It's Great to be the CEO...
Meg Whitman (HPQ) agrees to take a yearly base salary of $1, but don't cry for her: She gets options to buy 1.9M shares over eight years; her 2012 target bonus is $2.4M. But H-P investors may be crying over Leo Apotheker's $7.2M severance, $3.5M in restricted stock, and a $2.4M "pay for results" bonus for his 11 months as CEO - during which H-P's market value shrunk by $38B.
What???
Boeing Co. (BA). Federal authorities on Thursday charged 37 current or former Boeing employees with selling or trying to buy painkillers and anti-anxiety drugs at a suburban Philadelphia plant that makes military aircraft.
Wow...
Wow...
Amazon vs. Apple...
Amazon takes center stage again for technology investors. The rock-bottom price of the new Kindle Fire tablet computer is raising questions about Amazon.com’s ability to keep up with demand and the device's effect on the company's already razor-thin profit margins, analysts told Reuters.
My guess is the guys who are questioning the low price of the Kindle Fire are Apple shareholders.
To me, it's just like the price of laptop computers. You can go buy an Acer computer for under $500. The same capability computer (memory-wise) from Apple is around $1,200. Sure, the Apple Mac-book pro looks nicer and has a bunch of extra (unnecessary) features, but c'mon $1200??? At some point, a lackluster economy wiil force consumers (even the cool ones) to tone down their spending habits.
My guess is the guys who are questioning the low price of the Kindle Fire are Apple shareholders.
To me, it's just like the price of laptop computers. You can go buy an Acer computer for under $500. The same capability computer (memory-wise) from Apple is around $1,200. Sure, the Apple Mac-book pro looks nicer and has a bunch of extra (unnecessary) features, but c'mon $1200??? At some point, a lackluster economy wiil force consumers (even the cool ones) to tone down their spending habits.
Good Morning...
Stock index futures point to a weaker open for Wall Street on Friday, the final trading day of the third quarter,
The reading for the September University of Michigan Consumer Sentiment survey, out at 9.55am, is seen at 57.8, a repeat of the preliminary September figure.
In company news, McGraw-Hill Companies is in advanced talks to merge its S&P Indices business with CME Group Dow Jones Indexes, a source familiar with the situation told Reuters on Thursday.
The reading for the September University of Michigan Consumer Sentiment survey, out at 9.55am, is seen at 57.8, a repeat of the preliminary September figure.
In company news, McGraw-Hill Companies is in advanced talks to merge its S&P Indices business with CME Group Dow Jones Indexes, a source familiar with the situation told Reuters on Thursday.
Thursday, September 29, 2011
Market rebounds in last hour...
The volatility continues...
Dow +143
Nas -11
S&P +9
The Dow was up for most of the day, but Nasdaq stocks showed some serious weakness. Not sure what happened today, but the market was all over the place...volatility is at unprecedented levels.
Gold and Silver finished higher. Banks were higher all day. Everything else was pretty much mixed. It looks as if the only people in the market are day traders. That might be true.
Dow +143
Nas -11
S&P +9
The Dow was up for most of the day, but Nasdaq stocks showed some serious weakness. Not sure what happened today, but the market was all over the place...volatility is at unprecedented levels.
Gold and Silver finished higher. Banks were higher all day. Everything else was pretty much mixed. It looks as if the only people in the market are day traders. That might be true.
Bank of America to charge fee for using Debit Card...
Another day, another new bank fee. This time it's Bank of America (BAC), as most of its customers will soon see a new $5 charge on their statements for any month in which they use a BofA debit card to make a purchase. The bank, like others, is considering new ways to recover debit card revenue that is going away because of new regulations.
This is an act of desperation...check out BAC's chart. The stock is currently up 0.08 to 6.24, but it sits just above the 6.00 level it was at before Warren Buffett jumped in and tried to show support. The more I hear from this company the more I believe they really are in trouble. Don't forget BAC owns Merrill Lynch.
This is an act of desperation...check out BAC's chart. The stock is currently up 0.08 to 6.24, but it sits just above the 6.00 level it was at before Warren Buffett jumped in and tried to show support. The more I hear from this company the more I believe they really are in trouble. Don't forget BAC owns Merrill Lynch.
GM to introduce center airbags...
GM plans to introduce cars with center airbags and advanced collision avoidance systems in 2012 and 2013. The growing adoption of such technologies should be a boon for automotive chipmakers such as STM, NXPI, IRF, and ONNN who will provide the analog chips and microcontrollers needed to enable them.
At 2:30 pm....
The Dow still holds on to gains...technology stocks getting hit hard.
Dow +20
Nas -41
S&P -4
Chevron +1.62 and Exxon +1.26 are propping up the Dow. Banks are also showing some strength.
On the downside:
Amazon (AMZN) -11
Cummins (CMI) -2.32
Apple (AAPL) -7.94
Chipotle (CMG) -13
Priceline (PCLN) -31
Netflix (NFLX) -18
Whole Foods (WFM) -3.50
Wynn (WYNN) -12.87
So you can see...not good.
Dow +20
Nas -41
S&P -4
Chevron +1.62 and Exxon +1.26 are propping up the Dow. Banks are also showing some strength.
On the downside:
Amazon (AMZN) -11
Cummins (CMI) -2.32
Apple (AAPL) -7.94
Chipotle (CMG) -13
Priceline (PCLN) -31
Netflix (NFLX) -18
Whole Foods (WFM) -3.50
Wynn (WYNN) -12.87
So you can see...not good.
This is getting ugly....
The Dow is still up 80 points, but underneath we are getting some real carnage.
Too many stocks down to mention...looks to me like some hedge fund is blowing up...I've kind of thought this is what has been behind the drop in Gold of late, but now it is hitting the most popular stocks.
I don't like it...
Too many stocks down to mention...looks to me like some hedge fund is blowing up...I've kind of thought this is what has been behind the drop in Gold of late, but now it is hitting the most popular stocks.
I don't like it...
Law Firms getting line for IFT case...
This is funny.
After Imperial Trading was halted at $6 a share on Tuesday, then opened yesterday at 2.09...on news that the company was raided by Feds...the parasites are gathering for a feast.
Here are headlines that came out yesterday:
The Law Firm of Levi & Korsinsky, LLP Launches an Investigation into Possible Securities Laws Violations by Imperial Holdings, Inc.
Dyer & Berens LLP (Denver) Announces Its Investigation of Imperial Holdings, Inc.
Kahn Swick & Foti, LLC (New Orleans) Announces Investigation Into Imperial Holdings Inc. Following Federal Raid
Tripp Levy PLLC (New York) Announces Investigation of Imperial Holdings
Bernstein Liebhard LLP (New York) Announces Investigation of Imperial Holdings, Inc.
Faruqi & Faruqi, LLP (New York) Announces Investigation Of Imperial Holdings, Inc.
Rigrodsky & Long, P.A. (Delaware) Announces Investigation of Imperial Holdings, Inc.
Law Offices of Howard G. Smith (Pennsylvania) Announces Investigation of Imperial Holdings, Inc.
Ryan & Maniskas, LLP (Pennsylvania) Announces Investigation of Imperial Holdings, LLC
I'm sure there will be more....It's great that we have so many firms investigating this case.
After Imperial Trading was halted at $6 a share on Tuesday, then opened yesterday at 2.09...on news that the company was raided by Feds...the parasites are gathering for a feast.
Here are headlines that came out yesterday:
The Law Firm of Levi & Korsinsky, LLP Launches an Investigation into Possible Securities Laws Violations by Imperial Holdings, Inc.
Dyer & Berens LLP (Denver) Announces Its Investigation of Imperial Holdings, Inc.
Kahn Swick & Foti, LLC (New Orleans) Announces Investigation Into Imperial Holdings Inc. Following Federal Raid
Tripp Levy PLLC (New York) Announces Investigation of Imperial Holdings
Bernstein Liebhard LLP (New York) Announces Investigation of Imperial Holdings, Inc.
Faruqi & Faruqi, LLP (New York) Announces Investigation Of Imperial Holdings, Inc.
Rigrodsky & Long, P.A. (Delaware) Announces Investigation of Imperial Holdings, Inc.
Law Offices of Howard G. Smith (Pennsylvania) Announces Investigation of Imperial Holdings, Inc.
Ryan & Maniskas, LLP (Pennsylvania) Announces Investigation of Imperial Holdings, LLC
I'm sure there will be more....It's great that we have so many firms investigating this case.
Sell Rosh Hashanah, buy Yom Kippur...
Harry Schiller, one of the Street's more venerable technicians, called to note that the old trading tip really does have trading history behind it.
Over the last 40 years, Harry says, the average return has been minus 0.6 percent in the S&P 500 in the period between Rosh Hashanah and Yom Kippur. Remember, it's sell Rosh Hashanah, buy Yom Kippur, so that indicates it has worked.
Why does it work? Harry postulates that religious Jews are not supposed to be playing around with their stock portfolios before the high holy days. So the idea is to sell going into the holy days, and buy after.
Rosh Hashanah started last night at sundown, Yom Kippur is October 8.
Over the last 40 years, Harry says, the average return has been minus 0.6 percent in the S&P 500 in the period between Rosh Hashanah and Yom Kippur. Remember, it's sell Rosh Hashanah, buy Yom Kippur, so that indicates it has worked.
Why does it work? Harry postulates that religious Jews are not supposed to be playing around with their stock portfolios before the high holy days. So the idea is to sell going into the holy days, and buy after.
Rosh Hashanah started last night at sundown, Yom Kippur is October 8.
Wall Street's Red-headed Step Child...
It's still a momentum trade - to the downside. Netflix (NFLX) sinks on no fresh news, but shares broke through $125 yesterday so now people want to dump them. Competition hurts: Amazon’s (AMZN) new Kindle will let users stream movies, and Microsoft (MSFT) will get some pay TV content from Comcast (CMCSA) and Verizon (VZ) streamed to its Xbox Live.
NFLX is currently down another 14.04 to 113.10 today.
NFLX is currently down another 14.04 to 113.10 today.
DOJ investigates Chinese companies...
The U.S. Department of Justice has launched an investigation into possible accounting fraud at Chinese companies listed on U.S. stock exchanges. The involvement of the DoJ adds investigative firepower to the SEC and the FBI, which have already been probing Chinese companies for over a year.
Really?? I can't imagine that some of these Chinese companies might be fudging their numbers.
Really?? I can't imagine that some of these Chinese companies might be fudging their numbers.
Three Winners for you...
Perrigo (PRGO) +2.12 to 98.84 - Perrigo makes various drug store brand health care products. Next time you are in a CVS or Rite Aid, look on the back of one of their generic products, like aspirins or creams...many are made by Perrigo.
Allergan (AGN) +1.40 to new high of 85.50 - makes various medical products including their most notable Botox.
IBM (IBM) +1.97 to 179.52 - IBM is very well positioned in just about every area of technology...has been very strong of late.
Allergan (AGN) +1.40 to new high of 85.50 - makes various medical products including their most notable Botox.
IBM (IBM) +1.97 to 179.52 - IBM is very well positioned in just about every area of technology...has been very strong of late.
Noon Update....
The averages are still higher, but there are plenty of market leaders taking it on the chin.
Dow +180
Nas +10
S&P +14 to 1165
Notable decliners:
Green Mountain (GMCR) -5.63 to 98.25
Amazon (AMZN) -5.60 to 224.20
Apple (AAPL) - 2.00 to 394.10
Baidu (BIDU) -8 to 113.34
Wynn Resorts (WYNN) -7.97 to 127.55
Chipotle (CMG) -5.00 to 314
Priceline (PCLN) -19 to 479
Dow +180
Nas +10
S&P +14 to 1165
Notable decliners:
Green Mountain (GMCR) -5.63 to 98.25
Amazon (AMZN) -5.60 to 224.20
Apple (AAPL) - 2.00 to 394.10
Baidu (BIDU) -8 to 113.34
Wynn Resorts (WYNN) -7.97 to 127.55
Chipotle (CMG) -5.00 to 314
Priceline (PCLN) -19 to 479
Plosser calls Operation Twist "risky"...
Philly Fed's Charles Plosser, one of the Three Dissenters, weighs in again on Operation Twist, calling it a "risky" move that won't spark business hiring or consumer spending. "We should not take certain actions simply because we can," warning that "even more accommodative monetary policy" could lead to high inflation down the road.
Link to discussion of iPad vs. Kindle Fire...
If you are interested, here is a discussion...
http://www.cnn.com/2011/09/28/tech/gaming-gadgets/kindle-fire-vs-ipad#
http://www.cnn.com/2011/09/28/tech/gaming-gadgets/kindle-fire-vs-ipad#
Today's Upgardes and Downgrades...
These are some of this Thursday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.
Advanced Micro Devices, Inc. (NYSE: AMD) Cut to Underperform at BofA/ML; Maintained Buy but cut target to $7 at Canaccord Genuity.
Amazon.com Inc. (NASDAQ: AMZN) Maintained Buy with $255 target at BofA/ML.
The Blackstone Group (NYSE: BX) Started as Neutral at Stern Agee.
Cardinal Health, Inc. (NYSE: CAH) named Bull of the Day at Zacks.
Celestica Inc. (NYSE: CLS) Started as Market Perform at BMO.
Dril-Quip, Inc. (NYSE: DRQ) Cut to Neutral at JPMorgan.
InterMune, Inc. (NASDAQ: ITMN) Reiterated Buy with $44 target at Canaccord Genuity.
Jabil Circuit Inc. (NYSE: JBL) Reiterated Buy and $24 target at Argus.
Kohlberg Kravis Roberts & Co. (NYSE: KKR) Started as Buy at Stern Agee.
ONEOK Partners. LP (NYSE: OKS) Raised to Outperform at Credit Suisse.
Valero Energy Corporation (NYSE: VLO) named as value stock of the day at Zacks.
Advanced Micro Devices, Inc. (NYSE: AMD) Cut to Underperform at BofA/ML; Maintained Buy but cut target to $7 at Canaccord Genuity.
Amazon.com Inc. (NASDAQ: AMZN) Maintained Buy with $255 target at BofA/ML.
The Blackstone Group (NYSE: BX) Started as Neutral at Stern Agee.
Cardinal Health, Inc. (NYSE: CAH) named Bull of the Day at Zacks.
Celestica Inc. (NYSE: CLS) Started as Market Perform at BMO.
Dril-Quip, Inc. (NYSE: DRQ) Cut to Neutral at JPMorgan.
InterMune, Inc. (NASDAQ: ITMN) Reiterated Buy with $44 target at Canaccord Genuity.
Jabil Circuit Inc. (NYSE: JBL) Reiterated Buy and $24 target at Argus.
Kohlberg Kravis Roberts & Co. (NYSE: KKR) Started as Buy at Stern Agee.
ONEOK Partners. LP (NYSE: OKS) Raised to Outperform at Credit Suisse.
Valero Energy Corporation (NYSE: VLO) named as value stock of the day at Zacks.
At 10:25 am....
The averages are showing gains, but it looks like underneath some damage is going on.
Dow +209
Nas +8
S&P +13
AMZN now down 5 to 224
AAPL now down 3.60 to 393
GLD now only up 0.40 to 156.64
SLV now up 0.48 to 29.37
Dow +209
Nas +8
S&P +13
AMZN now down 5 to 224
AAPL now down 3.60 to 393
GLD now only up 0.40 to 156.64
SLV now up 0.48 to 29.37
Stocks open higher...
At 9:45 am stocks are broadly higher in what looks to be alot of short covering following the better than expected unemployment numbers.
Dow +209
Nas 40
S&P +21 to 1172
There are pockets of weakness out there, so I'm not necessarily buying it that we are going to hold up here.
Here's what I am watching:
Apple opened up 5 points to 402
Amazon opened up 4.50 to 234
GLD opened up 1.80 to 158
SLV opened up 1.05 to $30
Let's see if those gains hold up.
More in 30 minutes...
Dow +209
Nas 40
S&P +21 to 1172
There are pockets of weakness out there, so I'm not necessarily buying it that we are going to hold up here.
Here's what I am watching:
Apple opened up 5 points to 402
Amazon opened up 4.50 to 234
GLD opened up 1.80 to 158
SLV opened up 1.05 to $30
Let's see if those gains hold up.
More in 30 minutes...
Mosaic misses earnings estimates...
Fertilizer company Mosaic (MOS) stock is down this morning after posting disappointing earnings last night after the bell.
Mosaic posted $1.17 in EPS. Analysts had been expecting $1.27 in earnings, although it’s not clear whether the estimates were comparable. Gross margin expanded to 27.5% from 23.1%. Net sales of both phosphates and potash rose 40%.
“Our Potash business continues to generate great returns,” said CEO Jim Prokopanko. ”We accelerated our summer maintenance work, driving higher operating rates to meet strong demand.”
“Global demand for phosphate continues to grow, and we are operating near full capacity to meet customer requirements,” Prokopanko added.
Last week, Standard & Poor’s announced that Mosaic would join the S&P 500.
Mosaic posted $1.17 in EPS. Analysts had been expecting $1.27 in earnings, although it’s not clear whether the estimates were comparable. Gross margin expanded to 27.5% from 23.1%. Net sales of both phosphates and potash rose 40%.
“Our Potash business continues to generate great returns,” said CEO Jim Prokopanko. ”We accelerated our summer maintenance work, driving higher operating rates to meet strong demand.”
“Global demand for phosphate continues to grow, and we are operating near full capacity to meet customer requirements,” Prokopanko added.
Last week, Standard & Poor’s announced that Mosaic would join the S&P 500.
Cisco revamping software...
Cisco (CSCO) is announcing a major software revamp for its enterprise videoconferencing line, with a focus on recording and sharing video content, and extending support to mobile devices. Videoconferencing has remained a growth market for Cisco, as the company battles Polycom (PLCM) for market leadership.
Neither company's stock has done very well lately:
Neither company's stock has done very well lately:
Ford plans to add 7,000 jobs in U.S. – CEO...
The automaker stuck to its target of adding 7,000 jobs in the United States over the next two years, saying it sees an economic expansion there and not a double-dip recession.
Nice to see Alan Mallaly has so much confidence in the economy considering his company's stock price has fallen from $18.97 a share back in January to closing under $10 yesterday.
Nice to see Alan Mallaly has so much confidence in the economy considering his company's stock price has fallen from $18.97 a share back in January to closing under $10 yesterday.
Morgan Stanly cuts Oil forecast...
Morgan Stanley cuts its 2012 forecast for Brent crude to $100, from $130, on its expectation for returning supply from Libya, Canada and the North Sea. Analysts with the firm see weak demand offsetting inventory cuts by OPEC.
Ha....this is hilarious. Oil is currently at 82.46 per barrel. The analyst is trying to slip his forecast down so he doesn't look so stupid. Maybe no one will notice.
How worthless are these guys???
Here is the long term chart:
Ha....this is hilarious. Oil is currently at 82.46 per barrel. The analyst is trying to slip his forecast down so he doesn't look so stupid. Maybe no one will notice.
How worthless are these guys???
Here is the long term chart:
Discover faces enforcement action from FDIC...
Discover (DFS), down 4% yesterday in a mysterious swoon, faces an enforcement action from the FDIC over the company's marketing practices. The firm says it believes it has already addressed the issues related to the FDIC complaint, which was filed after the market closed.
DFS closed yesterday at $23.88
DFS closed yesterday at $23.88
Autozone approves stock buyback...
The Board of Directors at AutoZone (AZO) approves an additional $750M stock buyback, on top of its existing share repurchasement plan.
This is strange. Usually companies buyback shares when a stock has fallen and the company thinks the shares are a bargain. The weekly chart is below...note the stock near all-time highs...so why would they be buying back shares here??? Hmmm...
2 Possible Reasons:
1. They think the stock is going higher; or
2. They want to reduce the number of shares outstanding, which would help prop up their earnings per share. Maybe they know their earnings are NOT going to be a good as expected???
This is strange. Usually companies buyback shares when a stock has fallen and the company thinks the shares are a bargain. The weekly chart is below...note the stock near all-time highs...so why would they be buying back shares here??? Hmmm...
2 Possible Reasons:
1. They think the stock is going higher; or
2. They want to reduce the number of shares outstanding, which would help prop up their earnings per share. Maybe they know their earnings are NOT going to be a good as expected???
Imperial Holdings follow up...
We mentioned this on Tuesday...
Imperial Holdings(IFT) lost well more than half of its market capitalization Wednesday as investors crowded the exits in the wake of a raid of the company's offices by federal authorities.
The Boca Raton, Fla.-based company, which provides loans and cash payments based on life insurance policies and structured settlements, acknowledged late Tuesday it was served with a search warrant by the U.S. District Court of the Southern District of Florida, saying it fully cooperated with the exercise of the warrant.
Imperial further disclosed that both the company and certain employees, including its chairman and CEO Antony Mitchell, are being investigated by the District of New Hampshire, and that the probe relates to its life finance business. Perhaps coincidentally, the "How it Works" section for the company's life finance business on its Web site is currently listed as Under Construction.
The stock closed Wednesday, down over 70% on the day. Earlier in the session, the shares sank as low as $1.55. At current levels, the company's market cap is a little more than $50 million.
"Today's action comes as a complete surprise," said CEO Mitchell in the company's prepared statement. "We are not aware of any wrongdoing and will cooperate fully with all relevant authorities to assist them in their investigation."
Imperial Holdings(IFT) lost well more than half of its market capitalization Wednesday as investors crowded the exits in the wake of a raid of the company's offices by federal authorities.
The Boca Raton, Fla.-based company, which provides loans and cash payments based on life insurance policies and structured settlements, acknowledged late Tuesday it was served with a search warrant by the U.S. District Court of the Southern District of Florida, saying it fully cooperated with the exercise of the warrant.
Imperial further disclosed that both the company and certain employees, including its chairman and CEO Antony Mitchell, are being investigated by the District of New Hampshire, and that the probe relates to its life finance business. Perhaps coincidentally, the "How it Works" section for the company's life finance business on its Web site is currently listed as Under Construction.
The stock closed Wednesday, down over 70% on the day. Earlier in the session, the shares sank as low as $1.55. At current levels, the company's market cap is a little more than $50 million.
"Today's action comes as a complete surprise," said CEO Mitchell in the company's prepared statement. "We are not aware of any wrongdoing and will cooperate fully with all relevant authorities to assist them in their investigation."
Good Morning....
Futures are higher after the weekly jobs report showed much less than expected jobless claims.
As of now Dow futures point to another 100 plus point open. Of course, I don't put alot of creedence in the futures anymore as they are clearly manipulated by large trading firms.
The concern going into today is the way the market closed each of the last two sessions. On both Tuesday and Wednesday, the Dow gave up 150 points in the last hour of trading. It would be nice if we could stop that trend.
As of now Dow futures point to another 100 plus point open. Of course, I don't put alot of creedence in the futures anymore as they are clearly manipulated by large trading firms.
The concern going into today is the way the market closed each of the last two sessions. On both Tuesday and Wednesday, the Dow gave up 150 points in the last hour of trading. It would be nice if we could stop that trend.
Wednesday, September 28, 2011
Stocks sell off in last hour....
It looked as if whatever was holding the market up, was pulled away in the last 45 minutes.
Dow -179
Nas -55
S&P -24 to 1151
All groups were lower, but commodities and transports were beaten up the most.
Amazon closed up 5.50 to 229.71
Apple fell three points in the last 30 minutes to close at 397.01
Gold ETF (GLD) fell 4.41 to 156.22 - a new low in the latest move lower
In each of the last two trading sessions, stocks have sold off hard in the 3-4 pm hour. Today we were up over 120 points early, then closed down 180 on the day. That is not a good tape. Another selloff like this tomorrow, and we will move to "full protection mode" again.
Dow -179
Nas -55
S&P -24 to 1151
All groups were lower, but commodities and transports were beaten up the most.
Amazon closed up 5.50 to 229.71
Apple fell three points in the last 30 minutes to close at 397.01
Gold ETF (GLD) fell 4.41 to 156.22 - a new low in the latest move lower
In each of the last two trading sessions, stocks have sold off hard in the 3-4 pm hour. Today we were up over 120 points early, then closed down 180 on the day. That is not a good tape. Another selloff like this tomorrow, and we will move to "full protection mode" again.
Apple tries to hold its ground....
Apple is still trading higher on the day even though the Kindle Fire has been annuounced. I know Apple's iPad is the pad of choice for those who can afford it, but I don't see how the Fire, priced $300 less than the iPad, is not going to hurt iPad sales. The customers Apple just lost are the ones who were looking at a Kindle, which is just a book reader, vs. the iPad which does a little too much (camera, microphone, etc.). Those on the fence will now be hard to convice to spend that extra $300 for the iPad.
Apple currently right at $400.00. I would not be surprised to see it come under some pressure in the next few weeks.
Apple currently right at $400.00. I would not be surprised to see it come under some pressure in the next few weeks.
At 3:00 pm....
Stocks have turned lower in the last hour.
Dow -41
Nas -20
S&P -9
Commodities lower as are gold and silver.
Amazon still up 8.53 to 232.80
IBM up 2.05 to 179.76
Dow -41
Nas -20
S&P -9
Commodities lower as are gold and silver.
Amazon still up 8.53 to 232.80
IBM up 2.05 to 179.76
Direct TV gets upgraded...
Shares of DirecTV (DTV +1.4%) get a lift from JPMorgan with an Overweight rating, as the firm takes a dimmer view of rival Dish Network (DISH -1.5%). Analysts initiate DISH with a Neutral rating, remaining unimpressed with its new Movie Pass promotion seen by the company as a Netflix (NFLX -0.2%)-killer. "We don't believe the service poses a compelling alternative to broadly compete with Netflix at this point."
Comscore works its way back...
Comscore (SCOR) stock is rising again today. It is up 0.80 to 18.18.
I know this company well as its headquarters is right next door to me. They have been actively hiring. They perform internet research and put out reports on internet trafic demographics, which they then sell to companies wishing to target their audience by advertising on the most appropriate websites...makes sense...and this company is growing.
The company came out with a less than inspiring quarter on August 4 and the stock dropped from 21 to 12. Since then the stock has slowly climbed back to 18. Long term, this is a good one...
I know this company well as its headquarters is right next door to me. They have been actively hiring. They perform internet research and put out reports on internet trafic demographics, which they then sell to companies wishing to target their audience by advertising on the most appropriate websites...makes sense...and this company is growing.
The company came out with a less than inspiring quarter on August 4 and the stock dropped from 21 to 12. Since then the stock has slowly climbed back to 18. Long term, this is a good one...
Gold and Silver resume selloff....
After taking a day off, Gold and Silver are selling off again.
Gold ETF (GLD) is down 3.50 to 157.13 - a break below 157 would be a new low in the latest leg lower for gold.
Silver ETF (SLV) is down 1.93 to 29.24
Gold ETF (GLD) is down 3.50 to 157.13 - a break below 157 would be a new low in the latest leg lower for gold.
Silver ETF (SLV) is down 1.93 to 29.24
Barnes and Noble selling off...
So far the big loser with the new Kindle Fire release has been Barnes and Noble (BKS). The new Kindle aims directly at taking market share away from Barnes and Noble's Nook. I think the new Kindle will also hurt sales of the iPad to those new customers without the big bucks. Time will tell.
AMZN is up 10.04 to 234.20
AAPL is up 1.24 to 400.50
BKS is down 1.65 to 11.56
AMZN is up 10.04 to 234.20
AAPL is up 1.24 to 400.50
BKS is down 1.65 to 11.56
Stocks mixed....
At 12:30 pm, stocks are split about 50-50 on my screen.
Dow +38
Nas -1
S&P unch
Amazon now up 10.88 to 235.05
Apple is not selling off yet: +1.34 to 400.60
Other stocks moving higher:
Chipotle (CMG) +3.97 to 324.58
Perrigo (PRGO) +1.32 to 99.11
Green Mountain (GMCR) +2.13 to 107.14
Interdigital (IDCC) +3.24 to 54.73
IBM +2.31 to 180.00
Dow +38
Nas -1
S&P unch
Amazon now up 10.88 to 235.05
Apple is not selling off yet: +1.34 to 400.60
Other stocks moving higher:
Chipotle (CMG) +3.97 to 324.58
Perrigo (PRGO) +1.32 to 99.11
Green Mountain (GMCR) +2.13 to 107.14
Interdigital (IDCC) +3.24 to 54.73
IBM +2.31 to 180.00
First Solar downgraded to "Sell"...
First Solar (FSLR) falls after Cantor Fitzgerald reiterates a Sell, and lowers its PT to $55. Cantor sees continued oversupply in the solar market hurting First Solar's sales and pricing power. Nonetheless, the firm thinks First Solar is well-positioned to profit long-term, as the market consolidates, and subsidy reductions increase the value of its cost advantage.
Let me get this straight: It's a "SELL", however, long term they are well-positioned.
What does that mean???
FSLR is down 3.58 to 68.68 today.
Let me get this straight: It's a "SELL", however, long term they are well-positioned.
What does that mean???
FSLR is down 3.58 to 68.68 today.
Market turns negative...
At 11:10 am, stocks are selling off from their highs...
Dow -10
Nas -11
S&P -4
Big mover of the day is Amazon, which is helping tech stocks move higher.
AMZN is currently up 7.75 to 231.90
Dow -10
Nas -11
S&P -4
Big mover of the day is Amazon, which is helping tech stocks move higher.
AMZN is currently up 7.75 to 231.90
Netflix subscriber cancellations moderating???
Netflix (NFLX) shares move higher, attributed to comments from Piper Jaffray suggesting subscriber cancellations are moderating: "While we continue to expect elevated churn over the next few quarters, the risk of a mass exodus appears to be moderating" following its latest survey. Piper sets a $300 price target on the shares.
Netflix is currently up 2.00 to 129.50
Netflix is currently up 2.00 to 129.50
Amazon Unveils the Kindle Fire...
Amazon (AMZN +3.3%) unveils its much-anticipated tablet. Called the Kindle Fire (as previously reported), the device will feature a 7-inch display and cost only $199, $50 less than the Nook Color (BKS -6.3%) and $300 less than the cheapest iPad (AAPL +0.5%). The tablet will run on Android (GOOG), but nonetheless act like a "souped-up Kindle."
Additionally, the company is adding a touchscreen model to its traditional Kindle line, called the Kindle Touch. A Wi-Fi-only version of the Kindle Touch will sell for $99, while a 3G version will cost $149, and offer lifetime wireless data in 100 countries.
Additionally, the company is adding a touchscreen model to its traditional Kindle line, called the Kindle Touch. A Wi-Fi-only version of the Kindle Touch will sell for $99, while a 3G version will cost $149, and offer lifetime wireless data in 100 countries.
Today's Upgrades and Downgrades...
These are some of this Wednesday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.
Apple Inc. (NASDAQ: AAPL) Started as Buy with $495 target at Janney.
Caterpillar Inc. (NYSE: CAT) Started as Overweight at Barclays.
Charter Communications Inc. (NASDAQ: CHTR) Started as Overweight at JPMorgan.
Colgate-Palmolive Co. (NYSE: CL) Cut to Hold at Citigroup.
Comcast Corporation (NASDAQ: CMCSA) Started as Overweight at JPMorgan.
Comerica Incorporated (NYSE: CMA) Raised to Market Perform at Wells Fargo.
Deere & Co. (NYSE: DE) Started as Overweight at Barclays.
DIRECTV (NASDAQ: DTV) Started as Overweight at JPMorgan.
Imperial Holdings, LLC (NYSE: IFT) Cut to Market Perform at FBR.
Kimberly-Clark Corporation (NYSE: KMB) Cut to Hold at Citigroup.
Lam Research Corporation (NASDAQ: LRCX) Started as Overweight at JPMorgan.
Men’s Wearhouse Inc. (NYSE: MW) named value stock of the day at Zacks.
Novellus Systems, Inc. (NASDAQ: NVLS) Started as Overweight at JPMorgan.
NutriSystem Inc. (NASDAQ: NTRI) Started as Buy at Auriga.
Polo Ralph Lauren Corp. (NYSE: RL) Cut to Hold at Citigroup.
Teva Pharmaceutical Industries Limited (NASDAQ: TEVA) Started as Buy at Canaccord Genuity.
VeriFone Systems, Inc (NYSE: PAY) Started as Buy at Argus.
Warner Chilcott plc (NASDAQ: WCRX) Started as Buy at Canaccord Genuity
Apple Inc. (NASDAQ: AAPL) Started as Buy with $495 target at Janney.
Caterpillar Inc. (NYSE: CAT) Started as Overweight at Barclays.
Charter Communications Inc. (NASDAQ: CHTR) Started as Overweight at JPMorgan.
Colgate-Palmolive Co. (NYSE: CL) Cut to Hold at Citigroup.
Comcast Corporation (NASDAQ: CMCSA) Started as Overweight at JPMorgan.
Comerica Incorporated (NYSE: CMA) Raised to Market Perform at Wells Fargo.
Deere & Co. (NYSE: DE) Started as Overweight at Barclays.
DIRECTV (NASDAQ: DTV) Started as Overweight at JPMorgan.
Imperial Holdings, LLC (NYSE: IFT) Cut to Market Perform at FBR.
Kimberly-Clark Corporation (NYSE: KMB) Cut to Hold at Citigroup.
Lam Research Corporation (NASDAQ: LRCX) Started as Overweight at JPMorgan.
Men’s Wearhouse Inc. (NYSE: MW) named value stock of the day at Zacks.
Novellus Systems, Inc. (NASDAQ: NVLS) Started as Overweight at JPMorgan.
NutriSystem Inc. (NASDAQ: NTRI) Started as Buy at Auriga.
Polo Ralph Lauren Corp. (NYSE: RL) Cut to Hold at Citigroup.
Teva Pharmaceutical Industries Limited (NASDAQ: TEVA) Started as Buy at Canaccord Genuity.
VeriFone Systems, Inc (NYSE: PAY) Started as Buy at Argus.
Warner Chilcott plc (NASDAQ: WCRX) Started as Buy at Canaccord Genuity
Stocks open higher....
15 minutes in...the averages are higher as there seems to be some excitement surrounding the unveiling of the new Amazon tablet...
Dow +102
Nas +17
S&P +7
Gold is unchanged, silver selling off slightly.
Dow +102
Nas +17
S&P +7
Gold is unchanged, silver selling off slightly.
Microsoft to get in on Android profits...
Microsoft (MSFT) and Samsung (SSNLF.PK) have signed an agreement that will result in Microsoft receiving royalties on Samsung's Android sales, and the companies partnering to develop/market Windows Phone. Given Samsung's estimated 19% share of the mobile phone market, this could be a huge win for Microsoft.
JP Morgan lowers Walgreens price target...
JPMorgan lowers its price target on shares of Walgreen (WAG) to $35. Though the drugstore chain reported a Q4 earnings beat, the dispute with Express Scripts (ESRX) weighs heavy: "We remain cautious on WAG shares, given the significant potential earnings hit related to the ESRX dispute should there be no resolution."
My guess is that ESRX and WAG will settle this dispute and both represent a good buying opportunity here. Here is a look at the charts on each:
My guess is that ESRX and WAG will settle this dispute and both represent a good buying opportunity here. Here is a look at the charts on each:
Chesapeake Energy announces strong well production...
Shares of Chesapeake Energy (CHK) soar 6.4% premarket after the firm announces "strong initial production" from wells in Ohio and Pennsylvania, helping boost the company's guidance. The natural gas and oil driller now sees increasing net liquid production 50% by the end 2012.
A La Carte Cable???
After years of resisting, cable providers are now working on a plan to allow customers to subscribe to channels on an individual, or "a la carte," basis. Providers have warmed to the idea thanks to soaring content costs and growing subscriber losses, Cable network owners such as Disney (DIS) and Time Warner (TWX) can be expected to fiercely oppose the idea.
If cable providers are able to make the transition, it could be devastating to a network owner such as DIS, which reportedly gets $4/month per subscriber for ESPN, whether or not a subscriber cares for it.
If cable providers are able to make the transition, it could be devastating to a network owner such as DIS, which reportedly gets $4/month per subscriber for ESPN, whether or not a subscriber cares for it.
Groupon launches rewards program...
Groupon's (GRPN) sputtering progress towards an IPO doesn't slow it down from product innovation, as it launches a new product - Groupon Reward - designed to track consumer spending and give merchants an easy way to reward customer loyalty. The program lets customers unlock perks after spending thresholds are met at participating businesses.
Personally, I have only seen two Groupon offers that even peaked my interest...that was until I found out I had to pay for them in advance. No Thanks!!!
Personally, I have only seen two Groupon offers that even peaked my interest...that was until I found out I had to pay for them in advance. No Thanks!!!
Best Buy to hire less workers for Holidays...
Maybe bad news for the economy, but clearly bad news for Best Buy (BBY), the company will hire just 15K seasonal workers for the holidays vs. 29K last year. CEO Brian Dunn says the company is not expecting "a meaningful move in the economic environment."
Price of new Amazon tablet could be big attraction...
Amazon (AMZN) is expected to launch its long-awaited tablet computer today, sporting a low-enough price to give Apple Inc's iPad some serious competition for the first time.
Amazon has a chance to be successful with this as they already have a huge customer base with the Kindle, whose owners would be very interested in this.
Amazon has a chance to be successful with this as they already have a huge customer base with the Kindle, whose owners would be very interested in this.
One year ago....
Meredith Whitney made her alarming call on Municipal Bonds, claiming that there would be mass defaulting across the country. The call led to a massive selloff on Municipal Bonds causing Muni Bond Funds to lose substantial value.
Turns out she has been wrong (at least so far), and the panic selling presented a huge buying opportunity for those who had cash.
In fact Muni Bonds were the number one place to invest over the last year. Thanks Meredith!!!
Here is a chart of the Van Kampen Investment Grade Municipal Bond Fund (VGM) that shows the damage caused one year ago:
Turns out she has been wrong (at least so far), and the panic selling presented a huge buying opportunity for those who had cash.
In fact Muni Bonds were the number one place to invest over the last year. Thanks Meredith!!!
Here is a chart of the Van Kampen Investment Grade Municipal Bond Fund (VGM) that shows the damage caused one year ago:
Good Morning...
The US stock market's momentum could be characterized as either positive or negative this morning, depending on your viewpoint: the major averages are riding a three day winning streak, and the Dow is coming off its best three-session gain since August 24th.
But the Dow also saw a 300+ point gain cut by more than half by the time the session ended, the first time that's happened since October of 2008.
Among the earnings reports set to be issued this morning: the latest number from Olive Garden parent Darden Restaurants (DRI), retailer Family Dollar (FDO), and spicemaker McCormick (MKC).
There are no reports of note set for release after the closing bell.
BP (BP) and Transocean (RIG) are among our stocks to watch today, following word of recent oil sheen sightings in the Gulf of Mexico near the capped BP Macondo well site.
The Coast Guard has now said BP's well is not suspected as the source, but that it could be from the wreckage of the Deepwater Horizon rig...whew, I bet BP is letting out a big sigh of relief on that news.
But the Dow also saw a 300+ point gain cut by more than half by the time the session ended, the first time that's happened since October of 2008.
Among the earnings reports set to be issued this morning: the latest number from Olive Garden parent Darden Restaurants (DRI), retailer Family Dollar (FDO), and spicemaker McCormick (MKC).
There are no reports of note set for release after the closing bell.
BP (BP) and Transocean (RIG) are among our stocks to watch today, following word of recent oil sheen sightings in the Gulf of Mexico near the capped BP Macondo well site.
The Coast Guard has now said BP's well is not suspected as the source, but that it could be from the wreckage of the Deepwater Horizon rig...whew, I bet BP is letting out a big sigh of relief on that news.
Tuesday, September 27, 2011
Stocks that hit New Highs today...
Here are a few that I follow, that hit new highs today:
Cerner (CERN)
Quality Systems (QSII)
VF Corp. (VFC)
Hershey (HSY)
Treehouse Foods (THS)
Perrigo (PRGO)
Kimberly Clarke (KMB)
Alexion Pharmaceutical (ALXN)
Cerner (CERN)
Quality Systems (QSII)
VF Corp. (VFC)
Hershey (HSY)
Treehouse Foods (THS)
Perrigo (PRGO)
Kimberly Clarke (KMB)
Alexion Pharmaceutical (ALXN)
Stock Gains cut in half...
After the Dow was up over 300 points at around 2:30 pm, stocks sold down going into the close:
Dow +146
Nas +30
S&P +12 to 1175
Gold and Silver performed about the same:
GLD +3.05 to 160.63
SLV +1.40 to 31.17
Most of the stocks that outperformed today were those that had heavy short positions, meaning that most of the gains were attributable to short covering. It's a news driven market right now...very dependent upon what happens in Europe overnight.
After two strong days, I would not be surprised to see traders turn the market the other way tomorrow.
Dow +146
Nas +30
S&P +12 to 1175
Gold and Silver performed about the same:
GLD +3.05 to 160.63
SLV +1.40 to 31.17
Most of the stocks that outperformed today were those that had heavy short positions, meaning that most of the gains were attributable to short covering. It's a news driven market right now...very dependent upon what happens in Europe overnight.
After two strong days, I would not be surprised to see traders turn the market the other way tomorrow.
Coast Guard reports new oil near BP well....
This just in...the Coast Guard is seeing new oil on the water near the famous BP Macondo well. Not this again!!!
At 3:20 pm....
Stocks are paring their gains slightly as it looks like volume is picking up.
Dow +220
Nas +41
S&P +19 to 1182
Let's see how we hold up in the next 40 minutes.
Dow +220
Nas +41
S&P +19 to 1182
Let's see how we hold up in the next 40 minutes.
Meredith Whitney cuts Goldman and Morgan Stanley....
CNBC reports Meredith Whitney slashing her Q3 EPS estimate for Goldman Sachs (GS) to $0.31 from $3.39 and consensus of $1.13. She lowers her FY12 estimate to $7.85 from $15.30 and against consensus of $15.09. Just last week Barclays said it expects Goldman to report a loss in Q3.
She also cuts her Q3 estimate for Morgan Stanley (MS) to $0.28 from $0.53 and consensus $0.37. She brings down FY12 to $2.14 from $2.50 and against consensus of $2.48. Again, Barclays remains the lowball, seeing a Q3 of just $0.12.
She also cuts her Q3 estimate for Morgan Stanley (MS) to $0.28 from $0.53 and consensus $0.37. She brings down FY12 to $2.14 from $2.50 and against consensus of $2.48. Again, Barclays remains the lowball, seeing a Q3 of just $0.12.
Uh Oh....
Trading in Imperial Holdings (IFT) is halted; the FBI raided the company's Florida offices this afternoon.
IFT stopped trading down 0.20 to 6.30
IFT stopped trading down 0.20 to 6.30
At 1:00 pm...
Stocks broadly moving higher...
Dow +263
Nas +55
S&P +25 to 1188
Bucking the trend:
Amazon (AMZN) -5.83 to 224.09
Priceline (PCLN) -4.48 to 509.11
Chipotle (CMG) -5.99 to 323.65
Netflix (NFLX) -4.30 to 127.92
Dow +263
Nas +55
S&P +25 to 1188
Bucking the trend:
Amazon (AMZN) -5.83 to 224.09
Priceline (PCLN) -4.48 to 509.11
Chipotle (CMG) -5.99 to 323.65
Netflix (NFLX) -4.30 to 127.92
Liesman contradicts yesterday's report...
The man who launched a massive worldwide rally in stocks with his report of a €TARP yesterday, CNBC's Steve Liesman takes to the air to say nothing has been resolved or even officially proposed. "If the market is going up on my rumor, it is ahead of itself ... Europe is either in for €2T, or the euro is done."
The market started its latest rally after Liesman gave a report yesterday that European officials were working on a TARP-like plan.
The market started its latest rally after Liesman gave a report yesterday that European officials were working on a TARP-like plan.
At 11:00 am....
Stocks still higher as every sector is catching a bid.
Dow +265
Nas +57
S&P +28 to 1191
Remember 1200 is a key level on the S&P to break back above.
GLD is up 4.46 to 162.04
SLV is up 2.12 to 31.90
Dow +265
Nas +57
S&P +28 to 1191
Remember 1200 is a key level on the S&P to break back above.
GLD is up 4.46 to 162.04
SLV is up 2.12 to 31.90
Icahn building stake in RIMM...
Research in Motion (RIMM) shares spike higher on rumors Carl Icahn is building a stake.
RIMM is up 1.30 to 22.99
RIMM is up 1.30 to 22.99
What I am watching....
As the market rallies (Dow is up 223), I want to watch the reaction of three ETF's:
GLD (Gold ETF) is currently up 4.16 to 161.75
SLV (Silver ETF) is currently up 1.97 to 31.73
TLT (30 year Treasury) is currently down 2.21 to 116.71
Assuming all three move higher when the market falls in a flight to safety, the opposite should hold true when the market rises. Right now, the Treasury is acting correctly, as stocks are seen as a safer bet...Gold and Silver are completely out of whack. They should be moving lower, not higher, which tells me we have some sort of market maker driven short squeeze going on in the metals.
GLD (Gold ETF) is currently up 4.16 to 161.75
SLV (Silver ETF) is currently up 1.97 to 31.73
TLT (30 year Treasury) is currently down 2.21 to 116.71
Assuming all three move higher when the market falls in a flight to safety, the opposite should hold true when the market rises. Right now, the Treasury is acting correctly, as stocks are seen as a safer bet...Gold and Silver are completely out of whack. They should be moving lower, not higher, which tells me we have some sort of market maker driven short squeeze going on in the metals.
Walgreens puts nail in coffin of Express Scripts partnership...
Walgreen semi-officially put a nail in the coffin of its contract with Express Scripts, sending shares sliding.
“There has been no substantive progress in the contract-renewal negotiations” with Express Scripts, the company said today. Walgreen already has said it planned to end its drug contract with Express Scripts after the end of this year.
The issue has created an overhang for Walgreen shares. Walgreen has said it generates about $5.3 billion in annual sales from its contract with Express Scripts. Now the pharmacists will have to steer people with Express Scripts drug-coverage cards to other retail outlets.
Walgreen says today it’s working with a number of partners to explore all options so that its partners’ employees and members retain access to Walgreen services. But with Express Scripts’s plans to buy fellow pharmacy-benefit manager Medco, investors have been worried Walgreen will be left with fewer alternate partners.
Both stocks have taken a hit as a result of this.
“There has been no substantive progress in the contract-renewal negotiations” with Express Scripts, the company said today. Walgreen already has said it planned to end its drug contract with Express Scripts after the end of this year.
The issue has created an overhang for Walgreen shares. Walgreen has said it generates about $5.3 billion in annual sales from its contract with Express Scripts. Now the pharmacists will have to steer people with Express Scripts drug-coverage cards to other retail outlets.
Walgreen says today it’s working with a number of partners to explore all options so that its partners’ employees and members retain access to Walgreen services. But with Express Scripts’s plans to buy fellow pharmacy-benefit manager Medco, investors have been worried Walgreen will be left with fewer alternate partners.
Both stocks have taken a hit as a result of this.
Perrigo hitting new highs...AGAIN...
Perrigo (PRGO) is htting new highs this morning as news comes out stating the company is increasing its distribution in China.
PRGO is up 5.04 to 100.02
PRGO is up 5.04 to 100.02
15 minutes in....
Stocks are rallying across the board.
Dow +197
Nas +34
S&P +20 to 1183
So, we're up 400 points in the Dow since Friday...all 30 Dow stocks are higher.
Dow +197
Nas +34
S&P +20 to 1183
So, we're up 400 points in the Dow since Friday...all 30 Dow stocks are higher.
Corporate Bond...
This corporate bond just came across my desk...
Goldman Sachs
5.625% coupon
Maturity Date: 1/15/17
Price $101.00
Yield to Maturity 5.43%
Current Yield 5.56%
S&P Rating A-
Moody's Rating A2
Fitch Rating A
In other words, it costs you $101,000 to buy 100 bonds, and you would get income of $5,625 per year
Goldman Sachs
5.625% coupon
Maturity Date: 1/15/17
Price $101.00
Yield to Maturity 5.43%
Current Yield 5.56%
S&P Rating A-
Moody's Rating A2
Fitch Rating A
In other words, it costs you $101,000 to buy 100 bonds, and you would get income of $5,625 per year
Today's Upgrades and Downgrades...
These are some of this Tuesday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.
AMC Networks Inc. (NASDAQ: AMCX) Started as Sell at Stifel Nicolaus.
Ashford Hospitality Trust Inc. (NYSE: AHT) Started as Outperform at Credit Suisse.
Bunge Limited (NYSE: BG) Raised to Buy at Citigroup.
Citi Trends, Inc. (NASDAQ: CTRN) named Bear of the Day at Zacks.
DENTSPLY International (NASDAQ: XRAY) named Bull of the Day at Zacks.
Eastman Kodak Co. (NYSE: EK) Reiterated Hold at Argus.
Equity One Inc. (NYSE: EQY) Raised to Hold at Citigroup.
F5 Networks, Inc. (NASDAQ: FFIV) Started as Hold at Jefferies.
Ivanhoe Mines Ltd. (NYSE: IVN) Raised to Outperform at Credit Suisse.
Maidenform Brands, Inc. (NYSE: MFB) named Value stock of the day at Zacks.
Precision Drilling Corporation (NYSE: PDS) Started as Outperform at Credit Suisse.
Riverbed Technology, Inc. (NASDAQ: RVBD) Started as Underperform at Jefferies.
Ryanair Holdings plc (NASDAQ: RYAAY) Cut to Neutral at Goldman Sachs.
Sanderson Farms, Inc. (NASDAQ: SAFM) Added to Conviction Buy List at Goldman Sachs.
Tudou Holdings Limited (NASDAQ: TUDO) Started as Buy at Deutsche Bank.
AMC Networks Inc. (NASDAQ: AMCX) Started as Sell at Stifel Nicolaus.
Ashford Hospitality Trust Inc. (NYSE: AHT) Started as Outperform at Credit Suisse.
Bunge Limited (NYSE: BG) Raised to Buy at Citigroup.
Citi Trends, Inc. (NASDAQ: CTRN) named Bear of the Day at Zacks.
DENTSPLY International (NASDAQ: XRAY) named Bull of the Day at Zacks.
Eastman Kodak Co. (NYSE: EK) Reiterated Hold at Argus.
Equity One Inc. (NYSE: EQY) Raised to Hold at Citigroup.
F5 Networks, Inc. (NASDAQ: FFIV) Started as Hold at Jefferies.
Ivanhoe Mines Ltd. (NYSE: IVN) Raised to Outperform at Credit Suisse.
Maidenform Brands, Inc. (NYSE: MFB) named Value stock of the day at Zacks.
Precision Drilling Corporation (NYSE: PDS) Started as Outperform at Credit Suisse.
Riverbed Technology, Inc. (NASDAQ: RVBD) Started as Underperform at Jefferies.
Ryanair Holdings plc (NASDAQ: RYAAY) Cut to Neutral at Goldman Sachs.
Sanderson Farms, Inc. (NASDAQ: SAFM) Added to Conviction Buy List at Goldman Sachs.
Tudou Holdings Limited (NASDAQ: TUDO) Started as Buy at Deutsche Bank.
And once again, everything is rosy....
Stocks set to open substantially higher this morning as optimism is growing that Europe will get its act together.
The volatility is getting a little tiring...but let's see what happens.
The volatility is getting a little tiring...but let's see what happens.
Gold and Silver looking for a bounce....
Gold and Silver are both higher this morning in what looks to be a short-covering rally. Prior to the last few weeks, Gold and Silver had been seen as a defensive move and were typically going in the opposite direction as stocks.
This morning both are heading higher while the market looks higher as well.
This morning both are heading higher while the market looks higher as well.
Apple slashing iPad orders...
According to Bloomberg, JPMorgan Chase & Co. filed a report claiming that Apple is slashing holiday orders for iPad components by 25%. The move would decrease the number of manufactured units from 17 million in the third quarter to 13 million for the end of the year.
Bloomberg reports that the information comes from several supply-chain vendors and that it marks the first time analysts have seen Apple make a cut of this magnitude. The affected companies, however, were not mentioned.
Despite the slash, JPMorgan isn't planning on lowering projections for the third and fourth quarters, which stands between 10.9 million and 12 million units shipped.
Bloomberg reports that the information comes from several supply-chain vendors and that it marks the first time analysts have seen Apple make a cut of this magnitude. The affected companies, however, were not mentioned.
Despite the slash, JPMorgan isn't planning on lowering projections for the third and fourth quarters, which stands between 10.9 million and 12 million units shipped.
Starbucks thinking about selling beer and wine...
Shares of Starbucks (SBUX) are making a premarket move, up 2.3%, as investors start to lump SBUX into their pile of global stocks with European and Asia growth potential.
On the homefront, the company is tinkering on a small-scale with a new formula to drive profits: beer and wine sales.
On the homefront, the company is tinkering on a small-scale with a new formula to drive profits: beer and wine sales.
BAE to cut 3,000 jobs...
Europe's biggest defense contractor BAE Systems said it will cut up to 3,000 jobs in Britain as smaller global defense budgets hit orders for its fighter jets.
The company, which is Britain's biggest manufacturer, said the four partner nations in the Eurofighter Typhoon program -- the UK, Germany, Italy and Spain -- were slowing production rates to help ease their budget pressures, affecting the workload at a number of sites.
The company, which is Britain's biggest manufacturer, said the four partner nations in the Eurofighter Typhoon program -- the UK, Germany, Italy and Spain -- were slowing production rates to help ease their budget pressures, affecting the workload at a number of sites.
Deutsche Bank likes Allscripts...
Deutsche Bank pounds the table for Allscripts (MDRX) following meetings with management, touting the company's "attractive valuation and solid growth momentum." The firm also claims Allscripts is already generating over $200M in cross-selling synergies from its acquisition of Eclipsys.
Alscripts is leading the charge of signing up hospitals and doctor's groups to a nationwide healthcare and prescription network, where doctors can access patient's records more easily.
Here is the long term chart going back to 2004:
Alscripts is leading the charge of signing up hospitals and doctor's groups to a nationwide healthcare and prescription network, where doctors can access patient's records more easily.
Here is the long term chart going back to 2004:
Good Morning...
U.S. stock index futures are pointing to a strong open today on renewed hopes for a lasting solution to the European debt crisis.
We'll see a handful of economic reports during today's session, including the latest reading on home prices from S&P/Case-Shiller.
At 10am ET, the Conference Board's September Consumer Confidence Index is seen coming in at 46.0, compared to the August reading of 44.5.
We'll also get the monthly Richmond Fed Survey at 10am ET.
In the news: the Senate has approved a deal to avert a government shutdown, ending the latest controversial standoff between Republicans and Democrats.
We'll see a handful of economic reports during today's session, including the latest reading on home prices from S&P/Case-Shiller.
At 10am ET, the Conference Board's September Consumer Confidence Index is seen coming in at 46.0, compared to the August reading of 44.5.
We'll also get the monthly Richmond Fed Survey at 10am ET.
In the news: the Senate has approved a deal to avert a government shutdown, ending the latest controversial standoff between Republicans and Democrats.
Monday, September 26, 2011
Market flies into the close...
The market shoots higher on reports that European Officials are working on a plan to help solve the European debt crisis. Toward the close just about every group joined the party.
Dow +272
Nas +33
S&P +26
Oils and Banks had a big afternoon rally, and tech, which was down most of the day, closed positive. Not sure what to take out of this, but the rally looks like a short covering rally more than anything else.
Tomorrow's action will be key.
Dow +272
Nas +33
S&P +26
Oils and Banks had a big afternoon rally, and tech, which was down most of the day, closed positive. Not sure what to take out of this, but the rally looks like a short covering rally more than anything else.
Tomorrow's action will be key.
Today's leading stocks...
Here are a few winners:
Autozone (AZO) +2.40 to 324.10
Panera (PNRA) +1.42 to 112.51
IBM +1.49 to 170.85
Peet's Coffee (PEET) +1.10 to 55.23
Whole Foods (WFM) +1.32 to 69.52
Caterpillar (CAT) +1.28 to 75.18
Hansen Natural (HANS) +1.01 to 88.79
Autozone (AZO) +2.40 to 324.10
Panera (PNRA) +1.42 to 112.51
IBM +1.49 to 170.85
Peet's Coffee (PEET) +1.10 to 55.23
Whole Foods (WFM) +1.32 to 69.52
Caterpillar (CAT) +1.28 to 75.18
Hansen Natural (HANS) +1.01 to 88.79
At 1:00 pm....
Stocks still mixed, with the Dow leading the way...
Dow +94
Nas -18
S&P +4
Gold and silver still down, but holding up.
Dow +94
Nas -18
S&P +4
Gold and silver still down, but holding up.
At 11:45 am....
Dow +172
Nas +13
S&P +14
Looks like traders are moving into Dow stocks.
IBM +3.00 to 172.30
JNJ +1.00 to 62.60
UTX +1.75 to 70.67
CAT +1.26 to 75.10
Nas +13
S&P +14
Looks like traders are moving into Dow stocks.
IBM +3.00 to 172.30
JNJ +1.00 to 62.60
UTX +1.75 to 70.67
CAT +1.26 to 75.10
JNJ gets FDA approval...
Johnson & Johnson (JNJ) is trading higher this morning after the FDA put its stamp of approval over the weekend for using company's blockbuster drug Remicade on pediatric patients with ulcerative colitis.
JNJ is currently up 0.72 to 62.31
JNJ is currently up 0.72 to 62.31
IBM carrying the Dow higher...
IBM is currently up 2.28 to 171.59 on no news.
The rest of the Dow stocks are hardly moving, yet the Dow is up 45.
Someone is scooping up IBM shares.
The rest of the Dow stocks are hardly moving, yet the Dow is up 45.
Someone is scooping up IBM shares.
Just as I thought...
First Solar is now down 2.38 to 67.90
It had opened up over 3 points to 73.49 on the upgrade mentioned earlier.
This stock does not look good.
It had opened up over 3 points to 73.49 on the upgrade mentioned earlier.
This stock does not look good.
Buffett announces repurchase program...
Berkshire Hathaway (BRK.A) announces a share repurchase program, planning to reduce its cash holdings to no less than $20B. The company will pay no price higher than a 10% premium over the then-current book value of the shares.
Of course this does not mean the HAVE TO buy any shares...it's just a show of confidence by Mr. Buffett.
Of course this does not mean the HAVE TO buy any shares...it's just a show of confidence by Mr. Buffett.
Gold and Silver down again...
We are getting more selling of Gold and Silver.
As of now:
GLD is down 5.52 to 154.40
SLV is down 2.44 to 27.55
As of now:
GLD is down 5.52 to 154.40
SLV is down 2.44 to 27.55
Strange open....
Markets are mixed this morning as the Dow rallies as Nasdaq stocks sell off.
Dow +88
Nas -8
S&P +3
My screen is about half green and half red. More in a few minutes.
Dow +88
Nas -8
S&P +3
My screen is about half green and half red. More in a few minutes.
Amazon inks deal with Fox...
Amazon (AMZN) has inked a licensing agreement with Fox (NWS) to stream the latter's movies and TV shows through its Prime Video service. The Fox deal follows similar agreements made with CBS and NBCUniversal, and lifts the size of Amazon's streaming library to 11K titles, as it continues its efforts to build a legit rival to Netflix (NFLX).
Today's Upgrades and Downgrades...
These are some of this Monday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research.
Advanced Micro Devices Inc. (NYSE: AMD) Raised to Buy at UBS.
Alkermes plc (NASDAQ: ALKS) Raised to Buy at Jefferies.
AmSurg Corporation (NASDAQ: AMSG) named Bull of the Day at Zacks.
Electronic Arts Inc. (NASDAQ: ERTS) Maintained Neutral but raised estimates at Janney.
Expedia Inc. (NASDAQ: EXPE) Raised to Overweight at Piper Jaffray.
First Solar Inc. (NASDAQ: FSLR) Raised to Hold at Maxim Group.
Great Plains Energy Incorporated (NYSE: GXP) Raised to Conviction Buy List at Goldman Sachs.
Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) Started as Buy with $130 target at Argus.
Green Plains Renewable Energy, Inc. (NASDAQ: GPRE) Started as Neutral at Credit Suisse.
Itron Inc. (NASDAQ: ITRI) Started as Overweight at Morgan Stanley.
Netflix, Inc. (NASDAQ: NFLX) Raised to Buy at Merriman.
Occidental Petroleum Corporation (NYSE: OXY) Raised to Buy at Citigroup.
Sara Lee Corporation (NYSE: SLE) named Bear of the Day at Zacks.
United Technologies Corporation (NYSE: UTX) Raised to Overweight at Morgan Stanley
Advanced Micro Devices Inc. (NYSE: AMD) Raised to Buy at UBS.
Alkermes plc (NASDAQ: ALKS) Raised to Buy at Jefferies.
AmSurg Corporation (NASDAQ: AMSG) named Bull of the Day at Zacks.
Electronic Arts Inc. (NASDAQ: ERTS) Maintained Neutral but raised estimates at Janney.
Expedia Inc. (NASDAQ: EXPE) Raised to Overweight at Piper Jaffray.
First Solar Inc. (NASDAQ: FSLR) Raised to Hold at Maxim Group.
Great Plains Energy Incorporated (NYSE: GXP) Raised to Conviction Buy List at Goldman Sachs.
Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) Started as Buy with $130 target at Argus.
Green Plains Renewable Energy, Inc. (NASDAQ: GPRE) Started as Neutral at Credit Suisse.
Itron Inc. (NASDAQ: ITRI) Started as Overweight at Morgan Stanley.
Netflix, Inc. (NASDAQ: NFLX) Raised to Buy at Merriman.
Occidental Petroleum Corporation (NYSE: OXY) Raised to Buy at Citigroup.
Sara Lee Corporation (NYSE: SLE) named Bear of the Day at Zacks.
United Technologies Corporation (NYSE: UTX) Raised to Overweight at Morgan Stanley
First Solar gets an upgrade...
First Solar (FSLR) looks poised for a higher open, after Maxim Group upgrades shares to Hold from Sell as a value play and Lazard Capital says the stock's recent selloff is overdone. Lazard expects First Solar to close on the two remaining Department of Energy loan projects and to find buyers for all three projects.
I love this. Maxim first puts a "Sell" on the company, now, it tries to call a bottom. I don't buy it.
FSLR closed at 70.24 on Friday. Keep an eye on that price. We may short the stock if it goes back below that...
I love this. Maxim first puts a "Sell" on the company, now, it tries to call a bottom. I don't buy it.
FSLR closed at 70.24 on Friday. Keep an eye on that price. We may short the stock if it goes back below that...
Netflix signs deal with Dreamworks...
Netflix Inc. (NFLX). The company has won a deal to pipe Dreamworks Animation (DWA) movies starting in 2013, the first time a major Hollywood studio has chosen Internet streaming over traditional pay TV, The New York Times reported on Sunday. Dreamworks CEO Jeffrey Katzenberg told the newspaper the deal, worth $30 million per picture to Dreamworks over a number of years, was "game-changing" and represented a bet that viewers would soon no longer make distinctions between content streamed on the Internet or through cable.
They have to wait until 2013? That's an eternity in this market. Netflix might be at $10 a share by then.
They have to wait until 2013? That's an eternity in this market. Netflix might be at $10 a share by then.
Groupon Officer leaves for Google...
Google Inc. (GOOG). Groupon's COO is leaving to join Google five months after joining the company. Georgiadis will take the job currently held by Dennis Woodside at Google. Google said that Woodside will now oversee the integration of Motorola Mobility Holdings, which Google announced plans to acquire for $12.5 billion in August and which is currently awaiting regulatory approval.
Wait a second...I thought Groupon was getting ready to go IPO. This makes no sense that a high ranking officer would leave before that payday.
(a personal aside: I think Groupon is garbage!!!)
Wait a second...I thought Groupon was getting ready to go IPO. This makes no sense that a high ranking officer would leave before that payday.
(a personal aside: I think Groupon is garbage!!!)
Boeing delivers Dreamliner...
Boeing (BA). The company’s long-awaited dream machine became a commercial reality on Sunday when the lightweight plastic-composites 787 Dreamliner was formally delivered to its first Japanese customer. Boeing says the revolutionary carbon fiber design will hand 20 percent fuel savings to airlines struggling to avoid a new recession, and give passengers a more comfortable ride with better cabin air and large electronically dimmable windows.
Bank of America trying to shed mortgage unit...
Bank of America Corp. (BAC). The bank is in talks to sell its correspondent mortgage lending unit to a division of Fortress Investment Group LLC, the WSJ reported on Friday.
Separately, a Bank of America Corp shareholder sued the bank on Friday for what he said was a failure to disclose it potentially owes more than $10 billion to American International Group Inc (AIG) in connection with mortgage-backed securities.
Separately, a Bank of America Corp shareholder sued the bank on Friday for what he said was a failure to disclose it potentially owes more than $10 billion to American International Group Inc (AIG) in connection with mortgage-backed securities.
Eastman Kodak borrows against its credit line...
Shares Eastman Kodak (EK) fall 14% premarket after the firm announces it borrowed $160M against its credit line for "general corporate purposes."
That doesn't sound good...sounds like a desperate company. Take a look at EK's chart:
That doesn't sound good...sounds like a desperate company. Take a look at EK's chart:
Verizon refuses to take Apple's side...
Verizon Wireless has taken a legal stand against Apple's request to prohibit the sale of some Samsung Electronics models in the United States. "The requested injunction of certain Samsung products will harm Verizon Wireless and U.S. consumers," Verizon said in a court filing dated Sept. 23.
Good Morning....
Well....a non-eventful weekend in Europe and US Futures are higher. I guess Art Cashin was wrong about the "crash" scenario he predicted on Friday.
At 8:45 am, Dow Futures are up over 100 points. Of course, the futures really have no correlation to what really happens when the market opens.
At 8:45 am, Dow Futures are up over 100 points. Of course, the futures really have no correlation to what really happens when the market opens.
Sunday, September 25, 2011
Let's look at some more charts....
Here are the weekly charts on Oil and Natural Gas. Crude Oil is dropping and looking like it is going lower. Prices at the pump are falling, which can't be bad for the economy.
The latest Investors Business Daily Top 10....
The latest Top 10 stocks in the IBD 50:
1. Alexion Pharmaceutical (ALXN)
2. Lululemon (LULU)
3. Ulta Cosmetics (ULTA)
4. Apple (AAPL)
5. Mastercard (MA)
6. Priceline (PCLN)
7. First Cash Financial (FCFS)
8. Perrigo (PRGO)
9. Herbalife (HLF)
10. Hansen Natural (HANS)
1. Alexion Pharmaceutical (ALXN)
2. Lululemon (LULU)
3. Ulta Cosmetics (ULTA)
4. Apple (AAPL)
5. Mastercard (MA)
6. Priceline (PCLN)
7. First Cash Financial (FCFS)
8. Perrigo (PRGO)
9. Herbalife (HLF)
10. Hansen Natural (HANS)
Let's look at the averages....
Let's compare the daily charts on the three major averages:
Note below, the chart on the Dow seems to be drifting lower, while the chart on the Nasdaq 100 seems to be drifting higher (note the higher highs and higher lows). The S&P 500, meanwhile looks like a great one for "ChannelingStocks.com"
Tells you where the money is going and where money is coming out of.
On the scary side, the charts on the Dow and S&P have a "Head and Shoulder" pattern forming. A break below the "neckline" would be very negative. We are just below the neckline for the Dow (right around 10700) and just above the S&P's neckline in the 1110-1100 area. This will be an important week as we try to stay above those levels.
Note below, the chart on the Dow seems to be drifting lower, while the chart on the Nasdaq 100 seems to be drifting higher (note the higher highs and higher lows). The S&P 500, meanwhile looks like a great one for "ChannelingStocks.com"
Tells you where the money is going and where money is coming out of.
On the scary side, the charts on the Dow and S&P have a "Head and Shoulder" pattern forming. A break below the "neckline" would be very negative. We are just below the neckline for the Dow (right around 10700) and just above the S&P's neckline in the 1110-1100 area. This will be an important week as we try to stay above those levels.
Friday, September 23, 2011
Stocks close slightly higher...
But not much gains to report. The most significant moves were in Gold and Silver, both of which broke down thru key support levels. Gold closed down $96.30 to 1645 and silver closed down 5.73 to 30.85.
Closing numbers:
Dow +37 to 10771
Nas +27 to 2483
S&P +6 to 1136
Hope the weekend is non-eventful. Have a nice one!!!
Closing numbers:
Dow +37 to 10771
Nas +27 to 2483
S&P +6 to 1136
Hope the weekend is non-eventful. Have a nice one!!!
Have you been to your bank branch lately???
Just got back from mine. Every employee in the bank told me hello and the teller asked me about 20 questions trying to start up a conversation. The sales pitch was to get me to refinance my mortgage. 30 year fixed at 3.75%
I just thought it was funny how they all attacked me as soon as I walked in the door. Must be really slow over there.
I just thought it was funny how they all attacked me as soon as I walked in the door. Must be really slow over there.
At 2:30 pm...
Stocks mixed as it is clear that traders are reluctant to buy stocks heading into the weekend.
Dow -12
Nas +16
S&P +3 to 1132
Gold, Silver and Oils still the weakest groups.
Best Stocks on the board??? I like:
Perrigo (PRGO) currently at 94.83 down from a high of 99.54
Whole Foods (WFM) currently at 67.80 down from 73.33
Deckers (DECK) at 100 down from 105.83
Dow -12
Nas +16
S&P +3 to 1132
Gold, Silver and Oils still the weakest groups.
Best Stocks on the board??? I like:
Perrigo (PRGO) currently at 94.83 down from a high of 99.54
Whole Foods (WFM) currently at 67.80 down from 73.33
Deckers (DECK) at 100 down from 105.83
Amazon announces special event...
Amazon (AMZN) announces an invitation-only special event in NYC on September 28. The obvious answer: a tablet announcement. All I can say is it better be nicer than the Kindle.
Amazon is now up 0.16 to 223.40.
It had been down over $2.00 earlier.
Amazon is now up 0.16 to 223.40.
It had been down over $2.00 earlier.
Earlier, Nike reported nice earnings...
Nike Inc. (NKE). The athletic shoe and clothing maker staved off margin pressure in the first quarter with strong revenue and price increases, and said it was confident about its position among peers as it heads toward the winter holidays. First-quarter net income rose 15 percent to $645 million, or $1.36 a share, from $559 million in the year ago period.
Nike is up 5.44 to 89.62 today.
Nike is up 5.44 to 89.62 today.
At 1:30 pm....
Stocks are still mixed but the averages are moving higher. No telling where we end up today.
Dow +17
Nas +18
S&P +4 to 1134
Oils are selling off. Gold and Silver are basically in a free fall.
Dow +17
Nas +18
S&P +4 to 1134
Oils are selling off. Gold and Silver are basically in a free fall.
Who cares???
The NBA indefinitely postpones training camp and 43 preseason games, as the chance for a full-fledged regular season work stoppage (no ticket sales, less merchandising and limited advertising) increases. For firms with some revenue tied to the NBA - including MSG, DIS, CBS, CMCSA, NWSA, NKE, and BUD - is a stoppage already baked into their stock prices?
The NBA doesn't get interesting until the playoffs anyway.
The NBA doesn't get interesting until the playoffs anyway.
Netflix losing popularity??
A new poll from The Street finds 42% of Netflix (NFLX) subscribers planning to fully cancel their subscriptions following the rise of Qwikster. A number of readers also feel the company is now "out of touch" with its customers, and think the placing of Netflix's DVD and streaming queues on separate sites will hurt the user experience.
I was actually looking on the streaming service last night for a movie to watch. There wasn't anything that caught my eye. The loss of STARZ is going to kill them.
I was actually looking on the streaming service last night for a movie to watch. There wasn't anything that caught my eye. The loss of STARZ is going to kill them.
Let's look at Silver....
Let's check out the relationship between the Silver Trust ETF (SLV) and the Proshares Ultra Short Silver ETF (ZSL).
If you look at the weekly charts you can see that ZSL has an all-time high of $242 set on the week of February 5, 2010.
At that same time the Silver Trust (SLV) was at a low of 14.27
Currently:
SLV is at 31.21
ZSL is at 18.05
Now I'm no mathematician, but something funny is going on here. So basically a 118% rise in the SLV leads to a 92.5% drop in ZSL. So if SLV drops back to 14.27 will the ZSL go back up to $242???
That my friends shows you how messed up these ETFs are!!!!
I showed you the SLV chart earlier. Here is the ZSL chart:
If you look at the weekly charts you can see that ZSL has an all-time high of $242 set on the week of February 5, 2010.
At that same time the Silver Trust (SLV) was at a low of 14.27
Currently:
SLV is at 31.21
ZSL is at 18.05
Now I'm no mathematician, but something funny is going on here. So basically a 118% rise in the SLV leads to a 92.5% drop in ZSL. So if SLV drops back to 14.27 will the ZSL go back up to $242???
That my friends shows you how messed up these ETFs are!!!!
I showed you the SLV chart earlier. Here is the ZSL chart:
Is Goodrich an easy 5 points???
Yesterday we told you that Goodrich is going to be purchased by United Tecnologies for $127.50 per share CASH. The word CASH is key, meaning that is the price you will get paid if you own the stock on the date that the buyout actually occurs.
The stock is trading at 121.93 as I write this. So, the questions are:
1. Will the buyout definitely happen??? Answer: In the agreement, United Technologies agreed to pay a breakup fee of $500 Million if they back away from the deal.
2. How long would I need to hold the stock before the buyout occurs??? Answer: It was announced that the deal should be finalized in the 2nd quarter next year...so basically 9 months.
Is it worth it??? A 4.5 % gain in 9 months???
The stock is trading at 121.93 as I write this. So, the questions are:
1. Will the buyout definitely happen??? Answer: In the agreement, United Technologies agreed to pay a breakup fee of $500 Million if they back away from the deal.
2. How long would I need to hold the stock before the buyout occurs??? Answer: It was announced that the deal should be finalized in the 2nd quarter next year...so basically 9 months.
Is it worth it??? A 4.5 % gain in 9 months???
Wanna see another ugly chart???
Check out Ancestry.com (ACOM). I had been waiting for this one to come back to reality. The stock went public back in November 2009 at $15. It ran up to $45.79 earlier this year, but looks like it is heading back to at least where it came out.
Here is the weekly chart:
Here is the weekly chart:
Might be a good time to short First Solar...
As I pointed out a few weeks ago, Solar stocks have been crashing. The one remaining Solar stock with a long way to drop is First Solar (FSLR). As you can see from the monthly chart going back to 2007, FSLR has no support level from here...so no telling how low it goes.
This morning, the stock fell to 61.55. As I write this, the stock has rebounded to where it is actually up 1.99 to 68.85. Could be an easy 7 points if it goes back and hits new lows.
This morning, the stock fell to 61.55. As I write this, the stock has rebounded to where it is actually up 1.99 to 68.85. Could be an easy 7 points if it goes back and hits new lows.
Upgrades and Downgrades...
These are some of this Friday’s top analyst upgrades, downgrades, and initiations seen having an impact from Wall Street research calls.
Altera Corporation (NASDAQ: ALTR) Started as Outperform at William Blair.
Annaly Capital Management, Inc. (NYSE: NLY) Started as Neutral at UBS.
Archer Daniels Midland Company (NYSE: ADM) Started as Neutral at Goldman Sachs.
Corning, Inc. (NYSE: GLW) named Bear of the Day at Zacks.
McDonald’s Corporation (NYSE: MCD) Raised to Strong Buy at S&P Equity Research.
Pandora Media, Inc. (NYSE: P) Raised to Overweight at Morgan Stanley.
Patterson-UTI Energy Inc. (NASDAQ: PTEN) named value stock of the day at Zacks.
Pepsico, Inc. (NYSE: PEP) Cut to Hold at Stifel Nicolaus.
Rambus Inc. (NASDAQ: RMBS) Started as Overweight at JPMorgan.
Under Armour, Inc. (NYSE: UA) Started as Buy at Argus.
V.F. Corporation (NYSE: VFC) Raised to Buy at BofA/ML.
VimpelCom Ltd. (NYSE: VIP) Started as Sell at Goldman Sachs.
Xilinx Inc. (NASDAQ: XLNX) Started as Outperform at William Blair.
Youku.com Inc (NYSE: YOKU) Raised to Positive at Susquehanna.
Altera Corporation (NASDAQ: ALTR) Started as Outperform at William Blair.
Annaly Capital Management, Inc. (NYSE: NLY) Started as Neutral at UBS.
Archer Daniels Midland Company (NYSE: ADM) Started as Neutral at Goldman Sachs.
Corning, Inc. (NYSE: GLW) named Bear of the Day at Zacks.
McDonald’s Corporation (NYSE: MCD) Raised to Strong Buy at S&P Equity Research.
Pandora Media, Inc. (NYSE: P) Raised to Overweight at Morgan Stanley.
Patterson-UTI Energy Inc. (NASDAQ: PTEN) named value stock of the day at Zacks.
Pepsico, Inc. (NYSE: PEP) Cut to Hold at Stifel Nicolaus.
Rambus Inc. (NASDAQ: RMBS) Started as Overweight at JPMorgan.
Under Armour, Inc. (NYSE: UA) Started as Buy at Argus.
V.F. Corporation (NYSE: VFC) Raised to Buy at BofA/ML.
VimpelCom Ltd. (NYSE: VIP) Started as Sell at Goldman Sachs.
Xilinx Inc. (NASDAQ: XLNX) Started as Outperform at William Blair.
Youku.com Inc (NYSE: YOKU) Raised to Positive at Susquehanna.
Gold and Silver breaking down...
Thought I'd show you the Gold and Silver ETF charts.
GLD has broken hard thru the critical support level of 170.
SLV had support at around 32.50. It is breaking thru that level this morning.
GLD has broken hard thru the critical support level of 170.
SLV had support at around 32.50. It is breaking thru that level this morning.
Alexion may receive approval for Soliris...
Shares of Alexion Pharamaceuticals (ALXN) register a gain after the firm says it has received a positive opinion in Europe for Soliris with a final decision from the European Commission expected in about two months. Soliris is a first treatment for patients with a rare life-threatening blood disorder.
ALXN is up 2.14 to 65.52
Alexion is the Number 1 rated stock in Investor's Business Daily's Top 50.
ALXN is up 2.14 to 65.52
Alexion is the Number 1 rated stock in Investor's Business Daily's Top 50.
What does HP have in common with eBay???
Hewlett-Packard (HPQ -5.3%) sinks to a six-year low $21.60/share, losing all the pop from the Apotheker firing. Investors apparently are not thrilled that H-P looks to have decided to do pretty much what Apotheker was going to do anyway. On Meg Whitman, the concern is that she "faces a learning curve" in the enterprise business after 30 years in the consumer space.
I don't get this hire at all.
I don't get this hire at all.
At 10:30 am....
Stocks are mixed as traders (both longs and shorts) try to decide whether to hold their positions over the weekend. Art Cashin (the UBS market strategist - with 40+ years on the exchange) think this market is setting up for a crash on Monday. He then thinks that will be quickly followed by a MASSIVE rally. Now, he has been looking for capitulation for about 10 years.
Right now:
Dow -17
Nas +11
S&P +1 to 1130
If you are in the crash camp, it might be wise to put some protection on your accounts over the weekend.
Right now:
Dow -17
Nas +11
S&P +1 to 1130
If you are in the crash camp, it might be wise to put some protection on your accounts over the weekend.
JP Morgan trying to prop up Pandora....
Shares of Pandora (P) gets an upgrade from Morgan Stanley to Overweight from Equalweight on valuation. Morgan put a $16 price target on the shares
Oh....by the way: JP Morgan was one of the lead underwriters of the Pandora IPO on June 15th, which was priced at....you guessed it...$16 a share.
Pandora is up 0.70 to 10.76 today.
Oh....by the way: JP Morgan was one of the lead underwriters of the Pandora IPO on June 15th, which was priced at....you guessed it...$16 a share.
Pandora is up 0.70 to 10.76 today.
Here's a surprising downgrade...
Moody's again downgrades the Greek banks, saying it "believes that private creditors may incur substantial economic losses on their Greek government bond holdings beyond the terms of the current debt exchange."
I think I could have made this downgrade.
I think I could have made this downgrade.
Gold breaks down...
Gold legs down below $1,700/oz. for the first time since early August. A technician might look at a chart and say there is no support for the metal until $1,500. It was from this level on July 1 that gold took off in a straight line to $1,900 over the next 6 weeks.
The Gold ETF (GLD) is opening down 5.05 to 164
That is a huge breakdown on the charts.
The Gold ETF (GLD) is opening down 5.05 to 164
That is a huge breakdown on the charts.
Good Morning. Futures down but off their lows...
U.S. stock index futures pointed to a lower open as growing concerns about the impact on the global economy from a possible Greek default eclipsed hopes for concrete action from G20 finance chiefs. European shares fell, extending the previous session's steep losses, on fresh concerns that European banks would take further write-downs on their Greek debt exposure.
Asian markets were largely down on fears of renewed recession in the developed world, which left investors largely unimpressed. Brent crude oil turned lower, falling more than $1 a barrel and extending the previous session's slide on concern about the outlook for the economy and oil demand.
Gold hit a one-month low and was set to post its sharpest weekly drop since May, hit by a sell-off in the commodities.
Asian markets were largely down on fears of renewed recession in the developed world, which left investors largely unimpressed. Brent crude oil turned lower, falling more than $1 a barrel and extending the previous session's slide on concern about the outlook for the economy and oil demand.
Gold hit a one-month low and was set to post its sharpest weekly drop since May, hit by a sell-off in the commodities.
Thursday, September 22, 2011
Stocks down but off their lows....
Stocks closed broadly lower in follow thru to the Fed's "Twist" move yesterday. As I said earlier, it's amazing how sentiment and news can change that quickly. Prior to 2 pm yesterday, things looked fine, after 2:15 pm, it's all doom and gloom. It's all BS to me. Here's how we closed:
Dow -391
Nas -82
S&P -37 to 1129
The good thing is we did close above 1100 on the S&P. A move below that would cause me some concern. Until then, it's just trading.
Dow -391
Nas -82
S&P -37 to 1129
The good thing is we did close above 1100 on the S&P. A move below that would cause me some concern. Until then, it's just trading.
At 2:30 pm....
Stocks have taken another turn lower in the last hour...on news of another stalemate in the house on a spending bill. Here we go again.
Dow -457
Nas -97
S&P -44 to 1122
Too many stocks pulled down...suggests that we are seeing program selling of ETF's.
Dow -457
Nas -97
S&P -44 to 1122
Too many stocks pulled down...suggests that we are seeing program selling of ETF's.
Stocks continue to sell off....
At 11:50 am we are at:
Dow -365
Nas -67
S&P -34 to 1132
While the averages are at their day lows, some stocks have rebounded and cut their earlier losses in half.
At 2:14 pm yesterday the Dow was at 11380, and now we are at 10745. That is a 635 point drop since the Fed made the "twisted" announcement that was supposed to help our markets. The selloff seems a bit overdone.
Let's keep an eye on the S&P 500. A move back above 1150 would be a "buy" signal, a move below 1100 would not be good.
Dow -365
Nas -67
S&P -34 to 1132
While the averages are at their day lows, some stocks have rebounded and cut their earlier losses in half.
At 2:14 pm yesterday the Dow was at 11380, and now we are at 10745. That is a 635 point drop since the Fed made the "twisted" announcement that was supposed to help our markets. The selloff seems a bit overdone.
Let's keep an eye on the S&P 500. A move back above 1150 would be a "buy" signal, a move below 1100 would not be good.
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