Friday, May 29, 2009

Weekend Reading

Former Morgan Stanley chief global strategist Barton Biggs says that markets may continue to rise.
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Text proposed by Obama administration for new global warming treaty calls for stricter rules on the US than most other nations, including China and Saudi Arabia.
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Many of the world's "hottest" gold stocks traded at or near a 52-week high on Friday.
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Worthwhile to keep an eye on the US dollar.
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Has China embraced agricultural market reforms?
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Key to avoiding worldwide food crisis may be increased potash production for fertilizers.
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Two gas discoveries by StatoilHydro -- in Harepus prospect in the Norwegian Sea and the Corvus prospect in the Oseberg area of the North Sea.
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Fewer Mexicans coming to US and sending money home.
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Obama administration blocks helicopters for Israel.
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Obama contributors rewarded with offers of plum positions in his administration.
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JetAmerica Airlines offers some $9 fares between some East Coast and Midwest cities starting this summer.
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NHL takes a lesson from NFL.
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Kentucky distillery tour provides glance into whiskey-making.
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Jamie Wyeth, following the death of his father Andrew Wyeth, has focused on his own art -- exhibition opens in Rockland, Maine this month.
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Rare Audrey Hepburn stamp brings $93,000 at a Berlin auction.
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Wall Steet Rally on Friday

US stocks rallied on Friday -- the Dow Industrials soaring 96 points, the Nasdaq up 22 points and the S&P 500 up 12 points.

The major indices shot higher in the final hour of trading -- and CNNMoney.com reports that May's gains represent the first time that stocks have gained for three consecutive months since 2007.
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Crude oil futures rose to $66.20 a barrel -- a six-month high, almost doubling since the lows of just over three months ago.

Morning Coffee And Reading

India's GDP grew 5.8 percent last quarter, topping estimates.
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Japan's factory output surges.
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Most undiscovered natural gas is north of Arcic Circle in Russian territory.
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Oil approaches largest monthly gain since 1999.
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Scientists identify new Ebola-like virus in Africa.
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J. Crew profit falls by 33 percent.
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Novell profit more than doubles.
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Dell earnings suffer 63 percent decline.
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Thursday, May 28, 2009

The Bulls Keep Marching On

Once again the bulls assumed control of the market on Thursday -- as the Dow Jones Industrials moved up 103 points, the Nasdaq Composite gained 20 points and the S&P 500 gained 13 points.

Tata Expanding Into Low-Cost Housing

Tata Housing, a unit of the Tata Group that is the designer of the world's cheapest car, has moved into the low-cost housing arena.

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Wednesday, May 27, 2009

Indices on Wednesday Give Back Some of Prior Day's Gains

After rallying on Tuesday, the major indices turned around on Wednesday and relinquished some of the prior day's gain.

The Dow Jones Industrials dropped 173 points on Wednesday, while the Nasdaq gave up 19 points and the S&P 500 finished 17 points lower.

Tuesday, May 26, 2009

Market Action Strong on Tuesday

The Dow Jones Industrial Average soared 196 points on Tuesday, while the Nasdaq climbed 58 points and the S&P 500 posted a 23 point gain.

The market reacted strongly to a consumer confidence report for May that surged to 54.9, reflecting the largest gain since 2003 -- and to a Morgan Stanley raise of Apple to overweight based on the expectation that the iPhone will provide profit growth for the next two years.

Sunday, May 24, 2009

Weekend Reading

Individual investors should put their money into TIPS (Treasury Inflation-Protected Securities) as a hedge against inflation, according to Yale University's Chief Investment Officer David Swensen on the Consuelo Mack WealthTrack television show this weekend. "We've had this massive monetary stimulus, and it's hard to see how that does not translate into pretty substantial inflation or at least pretty substantial risk of inflation," he expressed.
(Blogger's note: Swensen is famous for advocating a diversified portfolio -- and TIPS as part of an investment portfolio seems to make sense for individual investors as well as for institutional investors.)


Abu Dhabi Investment portfolio manager Aksel Kibar believes that investors interested in oil stocks should look at the Arabian market, reports Bloomberg.com. "Relative performance charts indicate that this outperformance may last for another 12 months," said Kibar.
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Friday, May 22, 2009

Higher Open Indicated on Friday

Early Friday morning stock futures were indicating a high start to the day.

Treasury Secretary Timothy Geither said that he will work to trim the US budget deficit, critical in order for the country to maintain its AAA rating, according to MSN MoneyCentral.

Gap Inc reported that earnings of $215 million compared to $249 million same quarter sales a year ago, reports MarketWatch. Same store sales fell of by 12 percent at Gap in North America, by 13 percent at Banana Republic and by only 3 percent at Old Navy.

Thursday, May 21, 2009

Thursday

As mentioned in our Twitter post yesterday, it seems important to remain watchful, cautious and always wanting to protect gains. Yesterday folks appeared giddy to get long exposure -- until they didn't later in the day. It seemed that the flippers were there.
We will see what today holds, but it appears that the market is headed toward a lower open.

Markets Appear Headed to Lower Open on Thursday

Early Thursday the Dow, Nasdaq 100 and S&P 500 all appeared heading toward a lower open.

On Wednesday the US Federal Reserve reported that the nation's economy might shrink by more than expected this year -- Yahoo Finance

The Obama administration expects to get tough on companies that knowingly hire illegal immigrants, according Homeland Security Secretary Janet Napolitano -- Business Week.

Wednesday, May 20, 2009

Futures Point to Higher Open on Wednesday

Prior to the opening bell on Wednesday, futures were indicated heading back into positive territory. On Tuesday, the Nasdaq gained 2 points. but the Dow and S&P 500 ended the day lower.

The Securities and Exchange Commission could lose some of its authority under a regulatory reorganization being drafted by the Obama administration, according to Bloomberg.com.
It is expected that under the reorganization, some of the SEC's powers would shift to the Federal Reserve. One possibility is that the Federal Reserve might assume oversight of firms considered "too big to fail."
SEC Chairman Mary Schapiro is reportedly frustrated that her agency has been offered little input into this process and will fight against any weakening of SEC.

Next week Microsoft Corp will likely unveil its new search engine to the public, reports The Wall Street Journal online.

Tuesday, May 19, 2009

Choppy Trading Session on Tuesday

Major indices ended mixed after a choppy trading session on Tuesday. The Dow Jones Industrial Average plunged 29 points today, giving back some of the 235 point gain of Monday. The Nasdaq ended the session with a gain of 2 points to 1,734 -- and the S&P 500 dipped by 1 point to 908.
Housing starts dropped by 13 percent, a record low -- the majority of the decline being in the multifamily home category.

Monday, May 18, 2009

Post Office Has Cut Jobs This Year

The US Postal Service has cut its staff by 25,000 jobs this year in an effort to deal with huge deficits, according to Postmaster General John Potter on Monday.
Current employment figures are below 635,000, significantly lower than the record 800,000 jobs in 1999, he continued.
Despite these job cuts, Potter feels that agency could still possibly face a $6.5 billion loss by year end and, after raising additional funds and further reducing expenses, have a $1.6 billion shortfall.
The number of items handled by the Agency is also expected to decrease this year. The prediction is that there will be about 170 billion items processed as compared to the record high of 210 billion items. Much of the decrease is attributed to customers' frequent use of the Internet and fewer mailed advertisements.

Stocks Soar Right to the Closing on Monday

Stocks soared into the closing bell on Monday -- with the Dow Jones gapping up 2.85 percent to 8,504; the Nasdaq escalating 3.11 percent to 1,732 and the S&P 500 becoming positive for the year with a 3.04 percent rise to 909.

Stocks Higher During Early Trading Hours Monday

European Central Bank President Jean-Claude Trichet opined that a global economic recovery is possible in 2010, according to IrishTimes.com.

Stocks were in broad-based rally mode early Monday -- shortly after noon the DJ Industrials were up 164 points, the Nasdaq Comp up 29 and the S&P 500 higher by 17 points.

India's benchmark Bombay Stock Exchange Sensex soared by 17 percent -- until trading was halted for the day, investors euphoric after Prime Minister Manmohan Singh's Congress Party's election wins.

Friday, May 15, 2009

Stimulus Checks to Dead People

Stimulus checks have started to arrive in the mail, and some folks have been shocked to find that the check in their mailbox is actually addressed to a relative long dead, according to MyFoxNewYork and Drudge Report.
A Valley Stream woman asked her son to open what she thought was a check for herself, but instead was a check made out to her father, a US citizen, who died in Italy 34 years before.
The Social Security Administration explained that some of the 52 million checks were mailed to dead people because the agency has no record of those deaths.

Thursday, May 14, 2009

Obama calls Long-Term Debt "Unsustainable" Reports Bloomberg

President Barack Obama warned that the nation cannot continue to borrow from China because of the interest on this debt will be passed along to our next generation, according to a Blooomberg.com article. Obama warned that holders of the nation's debt will eventually lose interest in buying it -- resulting in higher rates on everything from home mortgages to auto loans. The President's remarks were made at a town hall meeting near Albuquerque, New Mexico.
Obama also revealed that the "card-check" legislation lacks sufficient backing in the Senate, and that it is likely that there will be compromises necessary to get the bill passed, reports Bloomberg.com.
http://www.bloomberg.com/apps/news?pid=20601087&sid=aJsSb4qtILhg&refer=worldwide
http://www.bloomberg.com/apps/news?pid=20601087&sid=afH8YXIwNoVc&refer=home

Bargain Hunting Thursday

Despite the fact that all of the major indices did not end the session at Thursday’s high, investors clearly put aside their prior day’s economic concerns in order to hunt for bargains. In the process, they pushed the Dow up by 46 points to 8,331, the Nasdaq by 25 points to 1,689 and the S&P 500 by 9 points to 893.
Advancers led decliners by 3-1 on the NYSE, and by 8-3 on the Nasdaq. And both financials and technology stocks were leaders. Semiconductors showed particular strength after the Federal Trade Commission revealed that antitrust cases against Rambus had been dismissed. Rambus gained 14% to 12.39.
Investors are asking whether today’s action was a dead-cat bounce or whether the market is heading toward some good set-ups in individual stocks. Thus far, the bulls remain in control, but it pays to be ever vigilant.

Wednesday, May 13, 2009

Stocks Dip After A Disappointing Retail Sales Report

The entire market experienced broad-based selling on Wednesday as investors reacted to a disappointing retail sales report. It was announced by the commerce department that April retail dipped 0.4 percent.
For weeks investors have debated whether the recent rise in stock prices has been a reflection of improving economic conditions or simply what is commonly referred to as a dead-cat bounce. Whichever, some market watchers said that they were keeping a sharp eye on gold. By the closing bell, the S&P 500 fell 2.69% to 884 – and more than 90 percent of stocks finished lower than the preceding day. The Dow ended the day down 2.18% to 8.285, and the Nasdaq dipped 3.01% to 1,664.

Stocks Slide After Disappointing Retail Sales Report

Wednesday, May 13, 2009
The Dow, Nasdaq and S&P experienced deep declines Wednesday amidst investors concerns that the nation’s economic health might not yet have stabilized.
By around 2:30 p.m. the DJIA had slipped by 191 points, the Nasdaq by 49 points and the S&P 500 by 24 points. Bellweather General Electric was off by 5.9% at 12.87.
The Commerce Department informed that April retail sales fell 0.4%, higher than expected and the eighth decline in ten months. Department stores, electronics, food and beverages all saw declines, while restaurant, sporting goods and building materials experienced gains.