Perverted logic in  a global economy….

Could we be entering a sustained trend ?

Many jobs rely on tax credits in the wind industry. A tax credit is set to expire this year threatening tens of thousands of jobs.

Source

Agnico-Eagle Mines Ltd. (AEM) fell 5.1 percent to $32.47. The Toronto-based gold producer with operations in countries including Finland and Mexico swung to a fourth-quarter loss after a writedown of its Meadowbank mine and said its chief operating officer is leaving.

AMP Ltd. (AMP) : The Sydney-based asset manager said full-year profit fell 11 percent on costs related to its takeover of Axa Asia Pacific Holdings Ltd.’s Australian and New Zealand units.

Blue Nile Inc. (NILE) dropped 24 percent to $31.70. The online retailer of diamonds and fine jewelry forecast profit in 2012 of no more than 85 cents a share, missing the average analyst estimate of $1.06.

CBS Corp. (CBS) : The owner of the most-watched U.S. television network reported fourth-quarter sales of $3.78 billion, missing the $3.9 billion average of analysts’ estimates.

Clearwire Corp. (CLWR) fell 11 percent to $2.09. The wireless broadband provider reported a wider fourth-quarter loss on higher interest and tax costs and issued a full-year sales forecast of $1.25 billion, trailing analysts’ estimates of $1.36 billion.

Hyperdynamics Corp. (HDY) : The oil and gas exploration company said its Sabu-1 well off the shore of Guinea reached its planned total depth and an analysis indicates larger volumes of oil were formerly present in reservoirs and may have since leaked out.

Itron Inc. (ITRI) gained 13 percent to $45.28. The maker of utility meters was raised to outperform from neutral by Robert W Baird & Co., meaning the firm expects the shares to beat the U.S. equity market in risk-adjusted total return over the next 12 months. Baird cited fourth-quarter results and the acquisition of Smart Synch to improve technology.

JM Smucker Co. (SJM) fell 7.2 percent to $72.50. The maker of Folgers coffee reported third-quarter earnings excluding some items of $1.22 a share, missing the average analyst estimate of $1.41.

Marriott International Inc. (MAR) (MAR US): The largest publicly traded U.S. hotel chain reported fourth-quarter earnings that missed analysts’ estimates as demand from business groups remains weak.

MEMC Electronic Materials Inc. (WFR) : The second-largest U.S. polysilicon maker posted a fourth-quarter loss as the price for the main raw material in solar cells plunged and it had costs related to cutting production and its workforce.

NetApp Inc. (NTAP) : The maker of data-storage products said revenue in the third quarter was $1.57 billion, above the average analyst estimate of $1.56 billion. The company said it won a record number of new customers and significantly increased the amount of units shipped.

Nvidia Corp. (NVDA) dropped 5.7 percent to $15.25. The maker of graphics processors gave a first-quarter sales forecast that missed analysts’ estimates, providing more evidence that hard-disk shortages are cutting into PC production.

ReachLocal Inc. (RLOC) : The company that helps businesses buy online advertising said fourth-quarter profit was 12 cents a share, excluding some items, beating the average analyst estimate of 4 cents.

Tesla Motors Inc. (TSLA) : The maker of battery-powered cars run by entrepreneur Elon Musk said its fourth-quarter net loss widened to $81.5 million as electric Roadster sales end ahead of the release of Model S sedans.

United Rentals Inc. (URI) : The construction-equipment rental company acquired Coble Trench Safety, a specialty rental company. The terms of the deal were undisclosed.

Gapping up 

AEA +29%, NTAP +9.8%, ITRI +8.5%, TRN +7.6%, LOGM +5.4%, TEX +4.1%, AFFX +3.7%, Z +2.7%, DDIC +2.2%, VDSI +7.6%, TRN +7.6%,

GNC +4.2%, TEX +4.1%, Z +4%, TAP +3.9%, DTV +2.6%, DDIC +2.2%, TSLA +2.2%, VMC +1.5%, NETL +0.3%, CLSN +15.2%, EXPD +0.5%,

Gapping down

HDY -30.7%, NILE -30.7%, CAR -10.2%, PMFG -10%, HWAY -9.3%, HBI -9%, PLX -8.6%, CLWR -7.2%, NVDA -5.4%, A -5.1%, TNGO -4.8%, ACOM -4.5%,

EQIX -4.3%, MT -2.8%, CBS -2.8%, SKX -2.4%, CF -2.4%, BBL -1.9%, RIO -1.8%, ETP -1.8%, DB -1.5%, BDE -1.4%, BHP -1.4%, MAR -1.4%, KGC -1.2%, DGIT -13.8%,

AEM -6.1%, NVDA -6%,  SBLK -5.9%, ABB -5.4%, VALE -2%, ETP -1.8%, ING -1.7%,  AU -4%,  GOLD -2.1%, GFI -2%, GDX -1%, GLD -0.9%, SLV -0.8%, AMZN -2.4%,

FMS -2.1%

In Play

On the Wires

A very interesting look at the markets

“From Mohamed El-Erian’s latest editorial for latest editorial for Project Syndicate:

Greece need not continue to follow Argentina’s miserable example of ten years ago. Yet, unless Greek and European officials reflect on that example and adapt accordingly, Greece will be driven down the same dangerous dead-end path.

El-Erian is the CEO and co-CIO of bond behemoth.

He draws various ominous comparisons between Argentina and Greece.

In particular, EU and IMF officials’ aversion to contemplating the long term results of their actions—both in regard to Greece and their own credibility. He draws the analogy here between Greece’s current situation and Argentina, where the IMF continually wrung “over-promised and under-delivered” commitments out of the Argentinian government:

A blame game broke out over who was responsible for “losing” Argentina. Official creditors, led by the IMF, pointed to the Argentine government’s repeated policy failures. The government countered that official creditors were nickel-and-diming the country, rather than providing the financial cushion needed to restore confidence and re-engage private capital. Neither side seemed willing to acknowledge what was obvious to many: the country’s economic and financial framework gave it little chance of addressing the dual problem of too little growth and too much debt.

But it was ultimately the citizens who sped the process along. Fed up with the government and its creditors and fearing the worst case scenario, they got sick of the pain of austerity and systematically withdrew their funds from Argentinian banks. Not to mention that Argentina’s neighbors were already planning for the contingency of catastrophe.

Greece can still avoid this outcome, El-Erian writes, but it must take four steps:”

Read more

The Bulls will ignore….

BAC up 0.5%

Do not tell this to the clam….

[youtube:http://www.youtube.com/watch?v=Fbfco58BSy0 603 500]

What a quagmire the world has gotten itself into. With austerity sweeping the planet why invest in western nations ?

It looks like all the usual bullish suspects are pounding the table on the equity markets now.  These comments are from Ken Fisher of Fisher investments (via Forbes):

“Last year I warned of a middling market, but this year will be different. I expect it to be a great year for stocks, including last year’s picks.

Volatility spooked investors in 2011, and as a result there are few superbulls or superbears out there. Most pros are noncommittal, mildly bullish or bearish. No one is expecting a huge trend. This is the perfect environment for an up-a-lot year.

We will soon begin the fourth year of this bull market. According to my research, fourth years have averaged 20% returns and sometimes have been much bigger. So it is best to think of the directionless daze the market ­suffered in 2011 as the pause that ­refreshes before the bull resumes.”

Full article

So be it

“Economist and fund manager John Hussman likens our underlying economy to a hot potato.

“The period since 2010 has been largely characterized by a fragile underlying global economy coupled with a persistently overvalued stock market,” Hussman writes in a note to investors. “As unsatisfactory as it may be, the market is presently in an extended game of hot potato.”

Hussman notes that each time underlying credit strains emerge, demand backs off as consumers and businesses become averse to spending. Then, each time central banks launch some massive new intervention, there is a jolt of pent-up demand that is interpreted as sustainable growth.

“This was the result when the Fed launched QE2, and we’re seeing a replay as the ECB provides enormous loans to banks in return for ‘collateral’ in the form of newly-created, unlisted bonds that European banks have simply issued to themselves,” says Hussman.

Even with zero economic concerns, Hussman says the expected return-and-risk estimates for the stock market here are very unfavorable.

“This is because we presently observe a number of historically hostile syndromes that are almost uniquely associated with losses — not always immediately, but almost always large enough to make any intervening gains purely temporary. The stock market may very well enjoy a further advance from here,” he says.

“The likelihood of those gains being durable, however, is quite small.”

Read more 

“Stock markets can expect to receive a boost from a second huge European Central Bank liquidity injection, according to Lakefield Partner’s Bruno Verstraete, who says another 1 trillion euros ($1.32 trillion) will be available for banks at a quasi-free interest rate on February 29.”

Full video/article

Although there are similarities with what the United States went through at the onset of the financial crisis, the issues in Europe are more complex and will take years to resolve, Henry Paulson, former Treasury Secretary and founder of the Paulson Institute told CNBC on Wednesday.

Mandel Ngan | AFP | Getty Images Henry Paulson

“There is similarity [with the financial crisis in the U.S.] in certain regards. This has been going on for a long time and I think it will take years to play out,” Paulson told CNBC.

Paulson, who served as Treasury Secretary when the subprime mortgages credit crunch erupted, sparking the world’s worst economic crisis since the Great Depression, said that at the time the U.S. was faced with a “collision of political forces and market forces”.

Full article

Source

Berkshire Hathaway Inc. (BRK/A) (BRK) (BRK/B US): Warren Buffett’s holding company reported stakes in DirecTV (DTV) , the largest U.S. satellite-television provider, and Liberty Media Corp. (LMCA) (LMCA US) after the billionaire hired stock picker Ted Weschler to help manage investments.

BioSante Pharmaceuticals Inc. (BPAX) : The original developer of Bio-T-Gel, a testosterone replacement therapy for men, and Teva Pharmaceutical Industries Ltd. (TEVA) won U.S. clearance to sell the drug.

Hartford Financial Services Group Inc. (HIG) : Billionaire John Paulson, who controls one of the largest stakes in the seller of life insurance and property-casualty coverage, filed a document with regulators so he can approach other investors about spinning off its property-casualty unit.

MetLife Inc. (MET) : The biggest U.S. life insurer said fourth-quarter profit surged on earnings from derivatives. Excluding some investment results, profit was $1.31 a share, beating the $1.24 average estimate of 19 analysts surveyed by Bloomberg.

Weight Watchers International Inc. (WTW) : The world’s largest seller of diet programs reported fourth-quarter earnings excluding some items of 86 cents a share, matching the average analyst estimate, and said it would buy back as much as $1.5 billion in shares.

Wells Fargo & Co. (WFC US): The largest U.S. mortgage lender’s Wachovia Capital Markets LLC settled a lawsuit by Normandy Hill Master Fund LP, which claimed the unit failed to disclose signs of fraud at Le-Nature’s Inc. as it arranged a $285 million loan for the company two months before the drink maker went bankrupt in 2006. Terms of the settlement weren’t disclosed in a court filing.

Yahoo! Inc. (YHOO) (YHOO US): Third Point LLC said it plans to nominate Daniel S. Loeb, Harry J. Wilson, Michael J. Wolf and Jeffrey A. Zucker for the board of the largest U.S. Web portal.

Zynga Inc. (ZNGA) (ZNGA US): The biggest developer of games for social-networking sites topped analysts’ fourth-quarter revenue estimates as new titles such as “Hidden Chronicles” and “CastleVille” added millions of players.

Gapping up

BPAX +70.8%, GIVN +8.8%, LHCG +6.2%, INWK +6.1%, HIG +5.7%, EMKR +4.8%, ACAS +4.5%, LGF +4.3%, TEVA +3.4%, NRP +3.3%, DTV +2.3%, MET +2.1%,

ING +4.8%, BCS +4.1%, RBS +3.2%, DB +2.9%, HBC +2.8%, MS +2.7%, CS +2.2%, C +1.5%, BAC +1.1%,  CMCSA +6.9%, DF +6.3%, INWK +5.3%, EMKR +4.8%,

ACAS +4.5%, AIXG +7.2%, CREE +4.6%, VECO +1.4%, FIO +3.7% , SWY +0.7%,

Gapping down

PWAV -26.8%, ACPW -20%, ZNGA -7.9%, SAPE -6.3%, PEET -4.1%, RENN -4%, FTI -3.3%, FXCM -3%, QSFT -2.8%