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S&P 500 Hits 4.5-Year High
Published: Thursday, 6 Sep 2012
By: JeeYeon Park
Stocks added to sharp gains Thursday after a batch of upbeat economic reports and after ECB President Mario Draghi said the central bank agreed on a new bond-buying program.
The S&P 500 hit its best level since May 2008, while the Nasdaq 100 is trading near a 12-year high.
The Dow Jones Industrial Average soared more than 200 points, led by JPMorgan [JPM 38.82 1.71 (+4.61%) ] and BofA [BAC 8.32 0.37 (+4.65%) ], after squeezing out a small gain in the previous session.
The S&P 500 and the Nasdaq also advanced. The CBOE Volatility Index, widely considered the best gauge of fear in the market, tumbled below 17.
All key S&P sectors were firmly in positive territory, led by financials and industrials.
“There’s no ambiguity about the rally today—every economic data point we got was positive and the market liked Draghi’s comments,” said Brian Gendreau, market strategist at Cetera Financial Group. “We don’t know if this new program is going to succeed, but the ECB seems to be squarely in the camp of taking positive action.”
ECB President Mario Draghi said the new bond-buying program will be a "fully effective backstop," speaking at a press conference after the Council's monthly meeting in Frankfurt.
Seeking to back up his pledge to do whatever it takes to preserve the euro, Draghi said the new bond-buying program, aimed at the secondary market, would "safeguard the monetary policy transmission in all countries in the euro zone area." (Read More: Nearly Half of Germans Don't Trust Draghi)
Meanwhile, the ECB said it expects a very gradual economic recovery in the euro zone and slashed its GDP forecasts for the year. The euro erased gains against the dollar, while European shares rallied. Earlier, the ECB kept interest rates unchanged at 0.75 percent.
"People have been fatigued and cynical about Europe so that leaves a lot of room for upside," said Gendreau.
On the economic front, the pace of growth in the services sector rose to 53.7 in August, according to the Institute for Supply Management's non-manufacturing report. Economists had expected a reading of 52.5. A reading above 50 indicates expansion in the sector.
Jobless claims declined 12,000 last week to a seasonally adjusted 365,000, hitting its lowest level in a month, according to the Labor Department. Economists expected claims to fall to to 370,000, according to a Reuters poll. However, the four-week moving average for new claims, edged up to 371,250.
Private businesses added 201,000 jobs in August, according to a closely watched report from ADP and Macroeconomic Advisors. Wall Street had been expecting an increase of 145,000 new jobs.
Meanwhile, employers announced 32,239 planned job cuts in August, down 12.5 percent from the previous month, to hit a 20-month low, according to a report from consultants Challenger, Gray & Christmas.
“These are good signs for tomorrow but do we really trade on fundamentals or on central banks?” said Joe Saluzzi of Themis Trading. “There are too many factors going on that fundamentals are taking second place to money printing issues.”
The jobs data come ahead of Friday's widely-watched monthly government report for August, which is projected to show nonfarm payrolls rose by a modest 125,000, while the unemployment rate is expected to hold steady at 8.3 percent.
Other economic reports out on Thursday include the Institute for Supply Management’s non-manufacturing index at 10 a.m., which tracks monthly changes in the service sector economy. Economists polled by Briefing.com predict the index fell in August to 52.4, down from 52.6 in July. A reading above 50 indicates an expansion in the non-manufacturing sector.
Tomorrow:
FRIDAY: Gov't jobs report; Earnings from Kroger, Lululemon
MARKETS MARCH HIGHER!!!!!! Anyone else excited besides me?
Dow Soars 200 After Draghi, Economic Reports
Published: Thursday, 6 Sep 2012
By: JeeYeon Park
Stocks added to sharp gains Thursday after a batch of upbeat economic reports and after ECB President Mario Draghi said the central bank agreed on a new bond-buying program.
The S&P 500 is aiming for its highest close since May 2008, while the Nasdaq 100 is trading near a 12-year high.
The Dow Jones Industrial Average soared more than 200 points, led by JPMorgan [JPM 38.75 1.64 (+4.42%) ] and BofA [BAC 8.2766 0.3266 (+4.11%) ], after squeezing out a small gain in the previous session.
The S&P 500 and the Nasdaq also advanced. The CBOE Volatility Index, widely considered the best gauge of fear in the market, tumbled below 17.
All key S&P sectors were firmly in positive territory, led by financials and industrials.
ECB President Mario Draghi said the new bond-buying program will be a "fully effective backstop," speaking at a press conference after the Council's monthly meeting in Frankfurt.
Seeking to back up his pledge to do whatever it takes to preserve the euro, Draghi said the new bond-buying program, aimed at the secondary market, would "safeguard the monetary policy transmission in all countries in the euro zone area."
Meanwhile, the ECB said it expects a very gradual economic recovery in the euro zone and slashed its GDP forecasts for the year. The euro erased gains against the dollar, while European shares rallied. Earlier, the ECB kept interest rates unchanged at 0.75 percent.
On the economic front, the pace of growth in the services sector rose to 53.7 in August, according to the Institute for Supply Management's non-manufacturing report. Economists had expected a reading of 52.5. A reading above 50 indicates expansion in the sector.
Jobless claims declined 12,000 last week to a seasonally adjusted 365,000, hitting its lowest level in a month, according to the Labor Department. Economists expected claims to fall to to 370,000, according to a Reuters poll. However, the four-week moving average for new claims, edged up to 371,250.
Private businesses added 201,000 jobs in August, according to a closely watched report from ADP and Macroeconomic Advisors. Wall Street had been expecting an increase of 145,000 new jobs.
Meanwhile, employers announced 32,239 planned job cuts in August, down 12.5 percent from the previous month, to hit a 20-month low, according to a report from consultants Challenger, Gray & Christmas.
“These are good signs for tomorrow but do we really trade on fundamentals or on central banks?” said Joe Saluzzi of Themis Trading. “There are too many factors going on that fundamentals are taking second place to money printing issues.”
The jobs data come ahead of Friday's widely-watched monthly government report for August, which is projected to show nonfarm payrolls rose by a modest 125,000, while the unemployment rate is expected to hold steady at 8.3 percent.
Other economic reports out on Thursday include the Institute for Supply Management’s non-manufacturing index at 10 a.m., which tracks monthly changes in the service sector economy. Economists polled by Briefing.com predict the index fell in August to 52.4, down from 52.6 in July. A reading above 50 indicates an expansion in the non-manufacturing sector...
Nokia Launches Two Smartphones That Charge Wirelessly
Published: Wednesday, 5 Sep 2012
By: Cadie Thompson
Nokia and Microsoft [MSFT 30.3601 -0.0249 (-0.08%) ] unveiled two Windows Phone 8 smartphones that both feature a built-in wireless charging capability.
Jo Harlow, Nokia's executive vice president, introduced the first smartphone, the Lumia 920, at a press event Wednesday in New York City. Nokia senior vice president Kevin Shields introduced the smaller Lumia 820.
"Whenever you recharge, your phone can recharge too," Harlow said. "It's the start of a new era in smartphone power management."
Nokia is forming new partnerships to build wireless charging stations so that Nokia mobile users can recharge on the go, Harlow said. Some current partnerships include Virgin Atlantic, The Coffee Bean and Tea Leaf.
Wireless charging accessories will also be available when the new Lumia smartphones hit the market.
The new smartphone, which has a 4.5 inch curved glass display screen, also features Nokia's PureView technology, which enables the phone's camera to capture images in very high megapixels.
"The Lumia 920 camera captures five to ten times more light than other smartphones," Harlow said.
The Lumia 920 also features augmented reality technology that allows users to view detailed information about their surroundings through the smartphone's camera.
Nokia's CEO Stephen Elop opened the event and said that "Nokia would differentiate itself. The designs of our devices are breaking through and exciting people," Elop said.
The stakes are high for Nokia as it tries to find its place in the smartphone ecosystem. While Nokia once dominated the cellphone market, the Finnish company has struggled to compete against Apple, Samsung and Google [GOOG 683.50 2.46 (+0.36%) ]. (Read More: Nokia, Microsoft Head For 'Last Chance Saloon' With New Lumia Phones )
Nokia and Microsoft's announcement comes just before Apple's [AAPL 673.46 -1.51 (-0.22%) ]announcement next week, where it is widely expected the company will announce its latest iPhone. (Read More: Apple Will Make Big Announcement Next Week, Hints at iPhone 5 )
Later today, Motorola Mobility will also host its own event, where it is expected to introduce a new Android Phone or tablet.
Samsung also launched its own Windows 8 smartphone, the Samsung Ativ S, last week.
YELP up 7% earlier today, continuing the rally. Time for to sell
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78883996
I think you earned the rest of the day off lol
Automakers Report Better-Than-Expected August Sales
Published: Tuesday, 4 Sep 2012
By: Reuters with AP
U.S. auto sales continued to show a slow but steady recovery in August, as Toyota, Ford, Chrysler and General Motors reported sales gains that outstripped analyst expectations.
Toyota Motor's [TM 78.49 -1.13 (-1.42%) ] August sales jumped 45.6 percent from a year ago, in the wake of Japan's catastrophic tsunami on March 11, 2011. Edmunds had expected sales an increase of 41.8 percent.
GM's [GM 21.27 -0.08 (-0.37%) ] sales were up 10.1 percent from a year ago, above Edmunds' estimate of 6.4 percent.
Ford Motor's [F 9.411 0.071 (+0.76%) ] rose 13 percent, to 197,249 vehicles, and Chrysler had its 29th-consecutive month of year-on-year sales gains and a 14 percent rise in August.
Chrysler sales were 148,472 vehicles, which the company said showed its best performance for August since 2007.
The fact that consumers are replacing older cars and trucks and helped U.S. auto sales in August gain at a faster rate than the overall economy, said Carsten Krebs, head of communications for Volkswagen Group of America.
The U.S. economy grew at a rate of 1.7 percent in the second quarter.
Volkswagen showed its best August U.S. sales performance since 1973, Krebs said, rising 62.5 percent to 41,011 vehicles.
Rising gas prices were a factor in consumer choice of vehicles in August, said Ken Czubay, Ford vice president of U.S. marketing.
"As fuel prices rose again during August, we saw growing numbers of people gravitate toward our fuel-efficient vehicles," said Czubay.
Ford reported record sales for the Escape crossover and Fusion sedan, and said F-Series pickup had its best sales month all year. Ford brand sales were up 13.1 percent, while Lincoln brand sales rose 1.7 percent.
U.S. auto industry sales should be 14.6 million new vehicles on a seasonally adjusted annualized rate, including medium and heavy-duty trucks, Chrysler said.
Taking out the medium and heavy trucks, that would be about 14.3 million light cars and trucks, compared with 14.1 million projected in July.
Economists polled by Thomson Reuters last week expected an August annualized sales rate of 14.2 million light vehicles, compared with 12.1 million vehicles on an annualized rate last August.
Analysts use the light vehicles sales figure as a key measure of the industry's health.
Chrysler is managed by and majority owned by Fiat SpA .
Industry analysts say U.S. auto sales are likely to keep the economy going even as it struggles to grow. The economy expanded at a tepid 1.7 percent annual rate from April through June. On Friday, Chairman Ben Bernanke made clear that the Federal Reserve (learn more) will do more to boost the economy because of high unemployment (learn more) and a recovery that remains "far from satisfactory."
Pent-up demand is expected to drive the strong sales, said Jeff Schuster, senior vice president of forecasting for LMC Automotive, an industry consulting firm. The average car and truck in the U.S. is nearly 11 years old, and it's getting to the point where people have to replace them because they're worn out.
Customers likely found good deals on 2012 models last month, especially for leases and pickup trucks. Chrysler is offering $4,289 in discounts on the Ram 1500, Edmunds said. Also, Honda Motor [HMC 31.3874 -0.5026 (-1.58%) ] raised its incentives 27 percent in August from July to an average of $1,666 per vehicle.
Buyers also were drawn out by exciting new models such as the midsize Nissan Altima and the Dodge Dart compact, Schuster said. Chrysler sold more than 3,000 Darts in its first full month on the market. The Dart is the company's first competitive compact car in more than a decade.
Low interest rates also were pulling people in. A 48-month new-car loan averaged 2.98 percent last week, according to Bankrate.com. And automakers were offering no-interest loans on some models.
Sales started the year strong, backed off a little in May, but came back during the summer. Schuster expects to end the year at 14.3 million, more than 1.5 million above last year. Sales hit a recent high of 17 million in 2005. The bottomed at a 30-year low of 10.4 million during the recession (learn more) in 2009.
Gold to Break $1,700/Ounce Level: Analysts
Note: It already broke 1,700
Published: Monday, 3 Sep 2012
By: Holly Ellyatt
Gold will break out of a narrow band of trading in which the precious metal has been stuck for 12 months and will head towards $1,700 an ounce or higher as central bank moves and production problems increase the demand for gold, analysts told CNBC.
Priced in euro terms, gold posted its highest close of 2012 on Friday after the Federal Reserve’s Chairman Ben Bernanke left the door open for a further round of quantitative easing (explain this) in a highly-anticipated speech on Friday.
As investors pinned their hopes on hints of further QE, spot gold [XAU= 1693.3101 1.52 (+0.09%) ] rose nearly 5 percent over the past two weeks, hitting a five-month high of $1,692.71 on Friday, a rise of up to $40.
Gold has risen 70 percent between December 2008 and June 2011, after two rounds of QE by the Fed totaling $2.3 trillion, according to Reuters.
Phil Roberts, technical analyst at Barclays Capital told CNBC that while central banks in Europe and the U.S. don't act to further stimulate their economies, gold remained attractive as a safe haven.
After a 12-month consolidation phase, we should expect the gold price to continue on its upwards trend, he said.
“Last Friday, priced in euro terms, gold posted its highest close of the year,” he told CNBC, emphasizing his point on an “Ichimoku Cloud”, a chart used in technical analysis which identifies market trends and direction.
“What we’re seeing now is gold pushing against the top of the cloud (above the middle of the range) pushing beyond $1,700 an ounce and there’s another 100 dollars to the topside quite easily,” Roberts said.
“This is a good time for gold,” he added, agreeing with analysts’ predictions that a breakout for precious metals was imminent.
“There is one more level to break out, a couple of retracement levels and the top of the weekly cloud [to break out], but once you get above that $1,700 level you’ve got a bit of clear water and there should be some follow-through.”
Ned Naylor-Leyland, Investment Director at asset management firm Cheviot, told CNBC he was surprised at the rally, but believed it would continue.
“Personally, I was a little surprised at the size of the move but it’s now in technical breakout mode.”
Gold’s rebound in the face of further monetary stimulus, still 20 percent off highs seen in 2011, has been forecast as short-lived, though Naylor-Leyland disagreed for several reasons.
“I’d say the rebound is just starting,” he said. “If you look at the charts we’re literally just back into a technical rally phase. In fact, we haven’t been solidly for a year…so let’s see where we go from here.”
He added that the higher gold price would also be sustained by the rising costs facing mining companies in terms of extraction and wage labor costs.
“There’s no doubt there’s a big problem. Input costs have been rising [and] the gold price hasn’t kept up with it…The marginal cost of production is not at all helpful for the major gold producers [as well as] wage input problems for the big companies.”
Speaking about a potential return to a gold standard - to link the dollar [.DXY 81.32 0.11 (+0.14%) ] to gold - that the Republican party are making a part of their policy (a standard that was last axed by President Nixon (link)during the oil crisis in 1971) Naylor-Leyland said it would need serious consideration and could “open up a can of worms untouched for 40 years”.
lol There was another article today saying it's a "good buy at this price"...it's kind of sad at this point to watch them say those things over and over again. In a nutshell, they're in denial at this point.
Why didn't they just short it like everyone else?
"Facebook Could Bounce on ‘Want’ Button: Munster" - Yea Right lol
They said $30 was a fair valuation, then $20 was the bottom, and now $18? When will these personalities/analysts ever own up to their bad calls? Maybe after getting it wrong so many times, they'll eventually get it right? LOL
Published: Thursday, 30 Aug 2012
By: Bruno J. Navarro
Word that Facebook [FB 18.058 -1.0305 (-5.4%) ] is developing a “want” button makes the stock a “buy,” Piper Jaffray’s Gene Munster said Thursday on CNBC.
“The basic concept is this will allow Facebook to get a better handle of what people are actually wanting to buy. This is more analogous to what Google [GOOG 685.09 3.41 (+0.5%) ] is going with search,” he said on “Fast Money.”
Munster said leaked API code for the social media site suggests that the company is working on a new feature that would impact its bottom line.
“This is a whole level of monetization that no one’s talking about, that ultimately we think that Facebook will be involved in,” he said. “So they’re going to get mobile right but I think this ‘want’ button at least is going to lay the groundwork for investors to have some form of confidence that Facebook is not just doing this for the social good.”
Busy week that's for sure...I have a feeling this week is going to set the tone for the rest of the month, especially after the ECB meeting. We will hear of any further rate cuts, but more importantly under what conditions the ECB might revive its own bond buying program, the Securities Markets Program (SMP).
S&P Breaks Below 1400, Dow Drops Near 13000
Published: Thursday, 30 Aug 2012
By: JeeYeon Park
Stocks added to sharp losses Thursday, with the S&P 500 dipping below the key 1,400 level, as investors remained cautious a day before the annual meeting of central bankers in Jackson Hole and following reports that Spain will delay deciding whether to seek a bailout...All 10 S&P sectors were in the red, led by industrials and techs.
Jobless claims was unchanged last week, holding at a seasonally adjusted 374,000, according to the Labor Department. Economists polled by Reuters had forecast claims dipping to 370,000 last week. The four-week moving average for new claims rose 1,500 to 370,250.
Consumer spending gained 0.4 percent in July, climbing by the most in five months, according to the Commerce Department. Meanwhile, income increased 0.3 percent.
Investors will be listening carefully to Chairman Ben Bernanke’s speech on Friday at the annual symposium for hints of further monetary easing...
Definitely lol
Morning Mike! News- Bernanke's Words Could Make or Break Market Rally
*Note: I don't have the link to a previous article, but historically it's crucial to note that there's usually QE later in the year (around the holidays). I suppose it's just a matter of "when" not really "if" at this point.
Published: Wednesday, 29 Aug 2012
By: Dhara Ranasinghe
Whether it’s disappointment or a hint that a further monetary boost to the economy is on its way, the speech on Friday from Federal Reserve Chairman Ben Bernanke is likely to trigger a strong swing in either direction in U.S. stock, currency and bond markets, which are sitting on critical technical levels, one analyst says.
Bernanke delivers a widely-anticipated speech on Friday at the Fed’s annual symposium in Jackson Hole, Wyoming, and for weeks now markets have been pondering whether or not the central bank chief will use the address to pave the way for another round of monetary stimulus via quantitative easing or asset purchases.
Daryl Guppy, CEO at Guppy Traders, says because U.S. equity markets are hovering around key chart levels, investors can expect a big move up or down in response to Bernanke’s speech.
“Technically, on the S&P, Dow and Nasdaq we are sitting on resistance levels and what that means is if the news is good we will have an exceptionally strong break out above the resistance levels,” Guppy told CNBC Asia’s Squawk Box on Thursday.
“Equally if there is a bad news we will get a powerful retracement, so we are looking at high volatility going into Bernanke,” he added.
The Dow Jones industrial average [.DJI 13107.48 4.49 (+0.03%) ] closed U.S. trade on Thursday at 13,107.48, the S&P 500 index [.SPX 1410.49 --- UNCH ] ended at 1,410.49 and the Nasdaq [.NDX 2784.00 --- UNCH ] finished at 3,081.19. All three major U.S. stock indices, which closed marginally higher, are now hovering at key resistance levels, Guppy said.
He added that there was technical support in the 12,100 -12,200 range on the Dow Jones index, which meant any selling here may be limited compared with other stock indices. Guppy said any good news from Bernanke could push the S&P 500 index up to 1,500 – a gain of more than 6 percent from current levels.
U.S equity markets have edged higher in the last few months, helped by expectations for more monetary stimulus from the Fed. However, signs of an improvement in the jobs market and strong July retail sales numbers have dampened the talk of further easing and put investors on edge ahead of Bernanke’s Jackson Hole speech.
“I don’t think we are going to get QE3 at the Fed’s next meeting, but maybe later in the year,” Don Hanna, Managing Director at Fortress Investment Group told Squawk Box, referring to a possible third round of quantitative easing from the Fed.
In a sign that uncertainty in the equity markets is rising, the Chicago Board of Options Exchange Volatility Index, the VIX, has been moving higher over the last two weeks, suggesting fear is creeping back among investors.
Stocks were not the only market to watch for signs of likely strong reaction to Bernanke’s speech, Guppy said, noting that Treasurys and the U.S. dollar were also at critical levels on the technical charts.
He said that the dollar index [VIX 17.06 --- UNCH ] , which measures the dollar’s value against a basket of major currencies, is hovering around a long-term uptrend line in the 80-81 area. The index was trading at 81.55 in early Asia trade Thursday.
“We are sitting back on this (long-term uptrend) point so we either see a strong reaction away or a strong break away from this level (in response to Bernanke),” Guppy said. “And that’s the key factor we’re seeing across the board, because we are sitting on critical levels.”
Morning! News- Bernanke's Words Could Make or Break Market Rally
*Note: I don't have the link to a previous article, but historically it's crucial to note that there's usually QE later in the year (around the holidays). I suppose it's just a matter of "when" not really "if" at this point.
Published: Wednesday, 29 Aug 2012
By: Dhara Ranasinghe
Whether it’s disappointment or a hint that a further monetary boost to the economy is on its way, the speech on Friday from Federal Reserve Chairman Ben Bernanke is likely to trigger a strong swing in either direction in U.S. stock, currency and bond markets, which are sitting on critical technical levels, one analyst says.
Bernanke delivers a widely-anticipated speech on Friday at the Fed’s annual symposium in Jackson Hole, Wyoming, and for weeks now markets have been pondering whether or not the central bank chief will use the address to pave the way for another round of monetary stimulus via quantitative easing or asset purchases.
Daryl Guppy, CEO at Guppy Traders, says because U.S. equity markets are hovering around key chart levels, investors can expect a big move up or down in response to Bernanke’s speech.
“Technically, on the S&P, Dow and Nasdaq we are sitting on resistance levels and what that means is if the news is good we will have an exceptionally strong break out above the resistance levels,” Guppy told CNBC Asia’s Squawk Box on Thursday.
“Equally if there is a bad news we will get a powerful retracement, so we are looking at high volatility going into Bernanke,” he added.
The Dow Jones industrial average [.DJI 13107.48 4.49 (+0.03%) ] closed U.S. trade on Thursday at 13,107.48, the S&P 500 index [.SPX 1410.49 --- UNCH ] ended at 1,410.49 and the Nasdaq [.NDX 2784.00 --- UNCH ] finished at 3,081.19. All three major U.S. stock indices, which closed marginally higher, are now hovering at key resistance levels, Guppy said.
He added that there was technical support in the 12,100 -12,200 range on the Dow Jones index, which meant any selling here may be limited compared with other stock indices. Guppy said any good news from Bernanke could push the S&P 500 index up to 1,500 – a gain of more than 6 percent from current levels.
U.S equity markets have edged higher in the last few months, helped by expectations for more monetary stimulus from the Fed. However, signs of an improvement in the jobs market and strong July retail sales numbers have dampened the talk of further easing and put investors on edge ahead of Bernanke’s Jackson Hole speech.
“I don’t think we are going to get QE3 at the Fed’s next meeting, but maybe later in the year,” Don Hanna, Managing Director at Fortress Investment Group told Squawk Box, referring to a possible third round of quantitative easing from the Fed.
In a sign that uncertainty in the equity markets is rising, the Chicago Board of Options Exchange Volatility Index, the VIX, has been moving higher over the last two weeks, suggesting fear is creeping back among investors.
Stocks were not the only market to watch for signs of likely strong reaction to Bernanke’s speech, Guppy said, noting that Treasurys and the U.S. dollar were also at critical levels on the technical charts.
He said that the dollar index [VIX 17.06 --- UNCH ] , which measures the dollar’s value against a basket of major currencies, is hovering around a long-term uptrend line in the 80-81 area. The index was trading at 81.55 in early Asia trade Thursday.
“We are sitting back on this (long-term uptrend) point so we either see a strong reaction away or a strong break away from this level (in response to Bernanke),” Guppy said. “And that’s the key factor we’re seeing across the board, because we are sitting on critical levels.”
Thanks Stuffit I'll try my best to keep those alerts coming so we can all make some money together.
YELP up 22% Nice!!
Notice: I'm closing the board, but I'll still be posting on the following ones:
Big Board Scans
http://investorshub.advfn.com/!!-Big-Boards-scans-!!-23126/
Dogs of the Dow
http://investorshub.advfn.com/Dogs-of-the-Dow-21934/
I just had several of my properties licensed for nursing homes, so I'll be extremely busy with my new venture; but rest assured I'll still be daytrading. I just won't have as much time to post official alerts and news on iHub.
Thanks to all those who have followed even though I'm not that active on iHub lol.
Dick Bove: Ignore Fiscal Cliff, Buy Stocks
Published: Monday, 27 Aug 2012
By: Lee Brodie
Investors appear unwilling to make big bets in either direction ahead of a hotly anticipated meeting of central bankers at Jackson Hole, Wyoming, on Friday.
Stocks have rallied in recent weeks on growing expectations for a third round of quantitative easing from the Fed, as well as possible action from the European Central Bank.
News from Jackson Hole could determine whether the summer rally that drove the S&P to four-year highs is sustainable or not.
According to widely followed bank analyst Dick Bove of Rochedale Securities if history is any indication, the Fed will make a move.
“The Fed provides seasonal easing this time of year,” said Bove on CNBC’s Kudlow & Company. “And they do it because of the holidays.”
Bove is bullish stocks broadly. But not only because he expects the Fed to move, he's encouraged by other historical factors.
“There’s a seasonality in the entire stock market this time of year. Since 1888 there has been a seasonal thrust.”
Even with the fiscal cliff, Europe’s financial crisis and all the other headwinds in the market, Bove told us he’s a buyer of stocks.
“My price target on the S&P [.SPX 1409.30 -1.14(-0.08%)] is 1555,” he said.
Why Twitter Will Live and Facebook Will Die
Published: Tuesday, 28 Aug 2012
By: Rocco Pendola
As is the often the case, the words of Bruce Springsteen ring apropos:
Well now everything dies baby that's a fact/But maybe everything that dies someday comes back
To make Facebook attractive, the company must put its makeup on and fix its hair up pretty. Twitter doesn’t have to bother with that mess. Jeans, white t-shirt, a pair of Chuck Taylor’s, pony tail, no makeup, and it’s good to go.
I’m long the stock, but I expect Facebook [FB 19.34 0.19 (+0.99%) ] to die. Eventually, it will go the way of MySpace. It will come back incarnated as something else. That’s exactly what happened to the newspaper. Sans a few exceptions, the newspaper died and came back as Twitter.
You might not know it yet or use it as such, but Twitter is the modern day version of the newspaper. And it will sustain.
I keep my smartphone next to my bed. When I wake up in the middle of the night and, most definitely, when I wake up in the morning, I spend a minimum of five to 10 minutes at a time on Twitter. Then, I am on it all day.
There’s no better way to find out fast what, if anything, is happening in the world, from your backyard to the other side of the Earth. If you want to go deeper, now or later, Twitter facilitates the process nicely via its mobile and desktop platforms, as well as extensions such as TweetDeck.
As with any other service of its type, Twitter also entertains. And, if you choose to accept the opportunity, Twitter can help you act in your own self-promoting interest.
Twitter will never die. It doesn’t have to evolve — cosmetically, stylistically, etc. — as much as Facebook does because the content that fuels Twitter always changes. In fact, it can and usually does change in an instant.
You can do everything on Twitter that you do on Facebook, plus stuff that’s actually useful. And there’s much less mindless minutia to wade through.
That’s because the people you can follow on Twitter, the contributions they make, and the content that floats to the top is almost always much more interesting than your “friends’” attempts at creating the perfect construction of their lives.
Pick an interest. Choose a hobby. Think of your passions. Look up your line of work. Follow the right people. Interact appropriately. Twitter adds to your quality and experience of life in myriad aspects.
Next to LinkedIn [LNKD 107.51 2.84 (+2.71%) ], there’s not a more utilitarian social media site than Twitter. But, unless you’re unemployed or otherwise on the hunt for a job or some other specific networking activity, you ultimately use LinkedIn the way you use Facebook. To collect connections. To reunite with blasts from the past.
Twitter’s 140-character limit stokes its quality and appeal. It allows the most clever folks to break through. In fact, the worst thing that happened to Twitter is that app called “TwitLonger.”
You can use TwitLonger if you feel the need to go beyond 140 characters. That turns Twitter into something closer to Facebook. It dumbs it down.
Facebook is a sustainable fad. In other words, it serves a purpose. It has a much brighter future than its bandwagon-jumping critics think. But, it will never be in Twitter’s league in any capacity, from being useful to making the smooth transition to an initial public offering, assuming Apple [AAPL 674.80 -0.88 (-0.13%) ] doesn’t buy Twitter before it goes public.
When I claim Facebook will die, I’m talking five, 10, 15, maybe 20 years from now. In our world, that’s an eternity. Twitter, meantime, is everything the television news networks wish they could be — instant, relevant, and used heavily by a relatively young audience.
If Twitter cannot monetize that, it needs to immediately start a search, on LinkedIn, for better salespeople.
How Investors Are Skewing Home Prices Nationally
Published: Tuesday, 28 Aug 2012
By: Diana Olick
Home prices finally appear to be catching up with the increase in overall sales pace. That is usually the case, as prices lag sales on the way up and on the way down.
The latest reading from S&P/Case-Shiller, which employs a three month running average, shows home prices in June posted positive annual growth rates nationally and for the top ten and top 20-city composites.
“I think this is a very strong report,” said S&P’s David Blitzer in an interview on CNBC. “I think this is a clear sign we’ve turned around.”
The summer months are usually stronger for home prices historically, due to the mix of homes that are selling. Larger, more expensive homes sell in the spring and summer, so that families can move without disrupting school. Still, the gains are showing not just month-to-month, but year-over-year, so seasonality should not play too much of a role.
What is playing a strong role is a combination of investor activity in the market and supply, both of which have been falling. Listed inventory in July was down nearly 24 percent from a year ago, according to the National Association of Realtors. Investor activity in the market fell to 21.9 percent of all transactions in July, according to a new survey by Campbell/Inside Mortgage Finance. That’s down from 23.5 percent in June and a two-year peak of 25.3 percent in May.
From the survey:
Real estate agents responding to the HousingPulse survey indicated that recent price increases caused the sharp reversal in investor interest. “Investors are dropping out due to the increase in prices,” reported an agent in California. “Prices are too high here for investors,” added an agent in Massachusetts.
Thomas Popik, research director for Campbell Surveys, claims the drop in investor share is not just due to a rise in overall home sales and fewer distressed sales.
“Overall homebuyer demand and home price appreciation is being driven by historically low interest rates,” Popik said. “But savvy investors are the canaries in the coal mine—they are warning that if rates rise, the high proportion of distressed properties could once again push home prices down.”
Foreclosures have been falling steadily, with 58,000 completed in July, down from 69,000 in July of 2011, according to CoreLogic.
"Completed foreclosures were down again in July, this time by 16 percent versus a year ago, as servicers increasingly rely on alternatives to the foreclosure process, such as short sales and modifications," said Mark Fleming, chief economist for CoreLogic.
Given the unprecedented nature of the recent housing crash, there is not a lot of historical perspective to help us gauge if this is in fact a real recovery in home prices or a temporary bump due to a slowdown in distressed supply and a pull-back by investors. Seasonal factors will likely come into play in the fall, tempering home price gains.
There is still too much noise in the numbers, however, to draw any firm conclusions yet. Nearly 12 percent of all homeowners with a mortgage are either delinquent in their payments or already in the foreclosure process, according to the Mortgage Bankers Association.
Banks are still sitting on thousands of already-foreclosed properties, while the government looks to unload even more foreclosures through bulk deals. Record-low mortgage rates are beginning to rise again, and new rules governing the mortgage market that could further affect those rates are in the works. Too much noise.
Saved me the trouble of posting them myself, thanks Mike :)
New Apple iPad Mini to Debut in October: Report
Published: Monday, 27 Aug 2012
By: Heesun Wee
Apple's so-called "iPad mini'' is scheduled to debut in October, according to a news report.
Apple’s [AAPL 675.40 12.178 (+1.84%) ] next generation iPhone and “iPad mini” will be unveiled at two separate events this fall, several sources tell All Things D. The smartphone is slated to be released in September, with the smaller iPad scheduled for an October debut, according to the report...
As Housing Recovers, Will Apartment Boom End?
Published: Monday, 27 Aug 2012
By: Diana Olick
The latest reports on new and existing home sales seem to indicate that the housing market is beginning to find its footing again. While most believe the recovery will be slow, U-shaped, and bumpy, the free fall appears to be over for both sales and prices.
This is not to say that factors like rising mortgage interest rates and economic instability overseas couldn’t set the recovery back a bit, but, again the general consensus is that the worst is arguably over...
HTZ (+12.47%) Hertz Global Holdings Inc. will spend $2.3 billion buying Dollar Thrifty Automotive Group Inc., its car rental rival that has two Columbus-area locations, the Associated Press reports.
HCBK (+15.99%) Hudson City Bancorp Inc. agreed to be acquired by M&T Bank Corp. for about $3.7 billion, giving the Buffalo, N.Y.-based M&T Bank a franchise stretching from Connecticut to Virginia.
Hudson City shareholders will receive 0.08403 of an M&T share, or about $7.22 a share, a 12% premium to Friday's close, for each Hudson City share they own. Shareholders can choose to ...
http://online.wsj.com/article/SB10000872396390444914904577615102019832704.html?ru=yahoo&mod=yahoo_hs
CTIC (+15.98%) Cell Therapeutics, Inc. engages in the development, acquisition, and commercialization of drugs for the treatment of cancer. It is developing Pixuvri, a novel anthracycline derivative for the treatment of hematologic malignancies and solid tumors; OPAXIO, a chemotherapeutic agent that links paclitaxel to a biodegradable polyglutamate for treating ovarian, brain, esophageal, head, and neck cancers; Brostallicin, a synthetic DNA minor groove binding agent; and Bisplatinates, a platinum-based chemotherapy drug to treat various cancers. The company, in collaboration with Chroma Therapeutics, Ltd., is also engaged in developing Tosedostat, an oral aminopeptidase inhibitor. Cell Therapeutics, Inc. was founded in 1991 and is headquartered in Seattle, Washington.
http://seekingalpha.com/article/827701-5-high-growth-biotechnology-stocks-that-analysts-strongly-favor?source=yahoo
PANL (-12%) NEW YORK (TheStreet) -- Universal Display Corporation (Nasdaq:PANL) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
PPHM (-14.45) Shares of Peregrine Pharmaceuticals Inc. (NASDAQ:PPHM) crater following a negative article in Seeking Alpha by contributor Apsara Biotech which implied that the Phase II results for its cancer drug Bavituximab, also known as Bavi, are “overhyped and inconclusive”. The author called the huge, 500 percent runup in the stock during the past two months “unjustified” and also said that Peregrine’s current $300 million market cap is far too high, considering what the firm is really worth.
MTSL (-10%) MTS Announces Second Quarter 2012 Financial Results Year over Year Quarterly Revenues Increased 10% and Operating Income Increased 170%; Earnings per Share for the Six Month Period Increased 110% to $0.17; Generated $1 Million of Free Cash Flow during the First Six Months of 2012
IDIX (-7.49%) BRIEF-Idenix Pharma drops in premarket after FDA puts second hepatitis C drug on hold
http://www.reuters.com/article/2012/08/27/idenixpharmaceuticals-brief-idUSWEN717220120827?feedType=RSS&feedName=hotStocksNews&rpc=43
Stocks Turn Mixed; Apple Climbs 2%
Published: Monday, 27 Aug 2012
By: JeeYeon Park
Stocks quickly turned mixed in the first few minutes of trading Monday as investors looked ahead to Fed Chairman Ben Bernanke's speech later this week and after the Dow and S&P 500 snapped a six-week winning streak.
The Dow Jones Industrial Average struggled to hold gains. Microsoft [MSFT 30.78 0.22 (+0.72%) ] led the blue-chip gainers, while H-P [HPQ 17.475 -0.105 (-0.6%) ] lagged.
The S&P 500 and the Nasdaq opened higher. The CBOE Volatility Index, widely considered the best gauge of fear in the market, traded near 16.
Despite the lackluster trading session, all three major indexes are poised to log their first August gains since 2009.
Among the key S&P sectors, techs gained, while energy slipped. Stocks enjoyed a rally over the last six weeks and touched a new four-year high, but posted their first weekly loss in six weeks last week amid uncertainties in the euro zone and questions over whether the Fed will implement another round of quantitative easing.
Investors will be looking ahead to Friday when Fed Chairman Ben Bernanke is set to give a speech at the St. Louis Fed’s annual symposium in Wyoming for hints of further easing. However, some economists doubt the speech will reveal any new details of policy plans.
Chicago Federal Reserve Bank President Charles Evans said the central bank should "take action now," buying bonds for as long as it takes to produce a steady decline in the employment rate.
Meanwhile, some policymakers have expressed concern in the last week that piling on more bond purchases will do little to help the economy and that letting inflation rates gain could open the door to uncontrolled price hikes.
Apple [AAPL 675.95 12.728 (+1.92%) ] jumped after the iPhone maker won a victory in a patent lawsuit against rival Samsung...
Morning Dan, I've added them to my watch list :) Thanks!
Next Week
Monday
6:00 a.m. Chicago Fed President Charles Evans speaks in Hong Kong
10:30 a.m. Dallas Fed Survey
12:15 p.m. Cleveland Fed President Sandra Pianalto on economy
Tuesday
9:00 a.m. S&P Case/Shiller home prices
10:00 a.m. Consumer confidence
10:00 a.m. Richmond Fed survey
1:00 p.m. $35 billion 2-year Treasury auction
Wednesday
7:00 a.m. Mortgage applications
8:30 a.m. Real GDP (Q2 second)
10:00 a.m. Pending home sales
1:00 p.m. $35 billion 5-year Treasury auction
2:00 p.m. Beige book
Thursday
Chain stores report monthly sales
8:30 a.m. Initial claims
8:30 a.m. Personal income
11:00 a.m. Kansas City Fed survey
1:00 p.m. $29 billion 7-year Treasury auction
Presidential candidate Mitt Romney speaks at Republican convention
Friday
9:45 a.m. Chicago PMI
10:00 a.m. Fed Chairman Ben Bernanke speaks at Jackson Hole symposium
9:55 a.m. Consumer sentiment
10:00 a.m. Factory orders
Saturday
10:25 a.m. European Central Bank President Mario Draghi on panel at Jackson Hole symposium
It's funny you should say that because yesterday I stumbled upon an old book I bought last year, Poems by Emily Dickenson. After reading a few ones I highlighted when I first picked it up, I spent about an hour browsing through poems submitted on poetry.com lol.
I always found poetry uses words in their full potential, that gives are more complete and meaningful picture than nature can give us in the raw.
Bernanke, Will He Say Anything?
Published: Friday, 24 Aug 2012
By: Patti Domm
Fed Chairman Ben Bernanke’s speech in Jackson Hole is long on anticipation but will probably come up short on news.
The Fed chairman speaks at 10 a.m. ET Friday at the St. Louis Fed’s annual symposium in Wyoming, and traders are hoping for some new insight into what the Federal Reserve is thinking, including whether and when the Fed might take further easing steps. However, economists and Fed watchers don’t expect Bernanke to say much new, as the Fed continues to weigh incoming economic data ahead of its Sept. 12 meeting.
“I don’t think Bernanke is going to be signaling what the Fed is going to do. lt’s too close and it’s too close a call for him to be signaling anything,” said Bruce Kasman, chief economist at JPMorgan.
There is a busy calendar of economic news in the week ahead, but the Bernanke speech trumps all else. The Fed beige book on the economy, second quarter GDP revisions and consumer confidence are among the reports expected. Retailers will release chain store sales Thursday, giving an early look at the back-to-school shopping season.
The Republican convention will also be underway, and Wall Street will be watching to see how well the week goes for GOP presidential candidate Mitt Romney, favored over President Obama by many in the markets but slightly behind Obama in the polls.
“What’s interesting is Romney really has two challenges. The first is, he can’t screw up. A major mistake during his convention will hurt his chances for winning,” said Daniel Clifton, head of policy research at Strategas. “And he’s really got to give people a reason to elect him.” Clifton mention the example of Bill Clinton, who used his convention as a way to convince voters the economy was an issue he was best equipped to deal with.
Traders in the energy markets will also be watching the progress of Isaac as the storm moves into the Gulf of Mexico, with oil and gas drilling rigs in its path.
Investors will also be sorting out the aftermath of the late Friday jury verdict, which gave Apple [AAPL 663.222 0.592 (+0.09%) ] a $1 billion victory over Samsung. Samsung was found to have infringed on Apple patents on phones and tablets. Apple’s stock gained more than 1.7 percent in after-hours trading, reaching a new high.
Fed Ahead
Bernanke’s speech follows weeks of speculation about whether the Fed will carry out another round of quantitative easing, or asset purchases. Risk assets got a temporary boost in the past week when the Fed’s minutes from its Aug. 1 meeting showed that members were predisposed to more easing, but that meeting was held before a series of economic reports came in better than expected. St. Louis Fed President James Bullard pointed that out in an interview on CNBC this week, and he also said the market’s expectations for more QE have been too high this summer.
“I don’t think he (Bernanke) says anything a whole lot different. He’s going to reiterate that there’s scope for more easing and he’s pretty much told us that asset purchases and changes in the rate guidance are on the path ahead of us. It’s just hard to figure out which comes first,” said Ward McCarthy, chief financial economist at Jefferies.
McCarthy said he sees a 70 percent chance the Fed extends its rate guidance at the September meeting. The Fed is expected to say it will keep interest rates very low into mid-2015, from its current end of 2014 time frame. As for QE, McCarthy sees a 30 percent chance it will be announced in September, but a 90 percent chance it is announced by the end of the year, with December the most likely time frame.
“They’ll have a better sense of what is going to be done to prevent an economic cataclysm,” said McCarthy. “If (Congress) they don’t extend the tax cuts, we will be in a recession in 2013. If they don’t extend the tax cuts the Fed will take very aggressive action,” he said.
The expiration of tax cuts is one part of the “fiscal cliff” that will hit the economy Jan. 1 if Congress doesn’t move to extend tax cuts or make budget decisions. Congress is not expected to take any action on taxes or the automatic spending cuts, agreed as part of the debt ceiling compromise, until after the election.
Some economists say the Fed may also want to keep its powder dry until it sees how events unfold in Europe next month. On Sept. 6, the European Central Bank meets, and the market is looking to see more detail on how Europe’s bailout funds will function. Additionally, a German court rules on the legality of the European Stability Mechanism, or ESM, on Sept. 12, the first day of the Fed’s two-day September meeting.
ECB President Mario Draghi participates in a panel at the Jackson Hole symposium on Saturday morning.
“We’re not building into our expectation that Jackson Hole is going to steal the thunder from the ECB meeting … or the Fed meeting,” said Kasman. Kasman said Bernanke would not front run the Fed meeting or speak for the committee, and Fed members will want to get a look at the August employment report and other data before making a decision on easing.
Kasman expects to see the Fed act on rates guidance in September. “We think the Fed will extend the guidance on rates to 2015, and we’re on the margin believing the Fed will do a limited QE — something in the range of $250 billion that extends into January,” said Kasman.
Quantitative easing encourages investors to move into riskier assets and has helped support the stock market. The Fed currently is conducting Operation Twist, a program under which it buys longer-dated Treasurys and sells an equal amount at the short end. Unlike QE, twist does not expand the Fed’s balance sheet.
Mesirow Financial chief economist Diane Swonk said she expects the Fed to move to asset purchases this fall, with mortgage-backed securities a likely target. But Bernanke won’t give much guidance on that Friday. “I think he’s going to play his cards close to the vest. If he really believes it, he’ll say it but they are in such a difficult position right now. They may have to coordinate with the ECB by Sept. 13,” she said. “There’s a lot of things that you could look at and say, it would make sense to go in September but only under certain conditions. It would not be a slam dunk.”
The market’s sensitivity to possible Fed action was seen Friday when a story in the Wall Street Journal during the trading day, quoted part of Bernanke’s written comment to Rep. Darrell Issa (R-Calif.). Bernanke made clear, as he has in the past, that the door is open for more QE if needed and that the Fed will weigh the costs against the benefits.
Bernanke also defended the Fed’s actions in the letter to Issa, while pointing out that politicians need to take fiscal actions. More of that may be heard in his speech Friday, and more criticism of the Fed may be heard from the Republican convention. Romney has said he does not see a need for more Fed easing, and that it will not grow the economy...
Apple Wins $1 Billion as Jury Finds Samsung Violated Patents
Published: Friday, 24 Aug 2012
By: Reuters
Apple scored a sweeping legal victory over Samsung Electronics on Friday as a U.S. jury found the Korean company had copied critical features of the hugely popular iPhone and iPad and awarded the U.S. company $1.05 billion in damages.
As for the countersuit, the jury found Apple did not violate any of Samsung's wireless standards or feature patents...
Analyst Sees 75% Upside for Tech Turnaround Stock
Published: Thursday, 23 Aug 2012
By: Katie Little
Tech companies Hewlett-Packard, Cisco, Research in Motion and Nokia are all jockeying to achieve success as a turnaround story, but only a couple have the necessary ingredients, one analyst says.
Although HP’s [HPQ 17.58 -0.055 (-0.31%) ] mixed earnings report rubbed investors the wrong way, one analyst is holding out hope that CEO Meg Whitman can stabilize the company.
The key parts of a turnaround story are stabilizing the business and generating cash, said Shaw Wu, senior technology analyst at Sterne Agree.
Wu emphasized HP’s “very strong cash flow” of nearly $3 billion in its latest earnings report, much of which was used to pay down its net debt. In contrast, Wu said both RIM [RIMM 6.94 -0.125 (-1.77%) ] and Nokia [NOK 3.08 -0.12 (-3.75%) ] do not make money.
On Wednesday, the company delivered a net loss of $8.85 billion — its biggest ever — after a massive writedown of the value of its services business. HP’s full-year guidance also fell short of estimates.
In its first trading session following the report, the company's shares fell 8 percent on Thursday to close at $17.64. Despite the drop, Wu has a $31 price target, implying a 75-percent jump from Thursday's closing price, and a ‘buy’ rating on HP’s shares.
Wu said the ingredients for a successful turnaround include having an installed customer base and a growth plan and building a balance sheet.
“We think HP has the ingredients,” Wu said. “Also, Cisco [CSCO 19.20 0.075 (+0.39%) ] is another name that we also use that in reference to. We think these companies have the ingredients necessary for a turnaround. Now there are other companies like RIMM and Nokia that don’t have quite those things so we think there’s a big distinction.”
Instead, RIM and Nokia “face much more dire futures,” Wu said.
Still, HP will not find the turnaround road instantaneous. Instead, it will be more of a long-term one, another analyst predicts.
“There’s going to be bumps along the road,” said Brian White, a senior analyst at Topeka Capital Markets. “The macro is a risk. They have the biggest Europe exposure of any company that I cover at 36 percent of revenue.”