This replaces buyback from June of 2010.
Comments »Monthly Archives: June 2011
Gold Higher on Bad News
Typically, gold trades lower on bad economic news, as people flee commodities for dollars and bonds. However, as of now, gold is up $12.
Comments »Sony Gets Hacked Again; Another Million Users Have Info Downloaded
Upgrades and Downgrades This Morning
Upgrades
XOM – Exxon Mobil (XOM) and Hess (HES) initiated with Buy at Societe Generale
CYBX – Cyberonics upgraded to Strong Buy at WBB Securities
TA – TravelCenters of America upgraded to Outperform at Morgan Keegan
DD – DuPont resumed with Overweight at JPMorgan
V – Visa target raised to $95 from $90 at Argus following mobile payments strategy
CVX – Chevron initiated with Buy at Societe Generale
IRDM – Iridium Communications initiated with Buy at Merriman
SGNT – Sagent Pharma initiated with Buy at Jefferies
THQI – THQ Inc initiated with a Buy at Brean Murray
CCH – Coca-Cola Hellenic upgraded to Buy from Hold at Citigroup
NKE – Nike (NKE) and Finish Line (FINL) initiated with Buy at Jefferies
ENS – Enersys target raised to $48 at Maxim Group following F4Q11 results
FRX – Forest Labs upgraded to Overweight from Neutral at JPMorgan
DRYS – DryShips upgraded to Buy from Neutral at Goldman
ULTA – Ulta Salon target raised to $60 at Oppenheimer as they expect another strong quarter
Downgrades
PANL – Universal Display target lowered to $39 at Canaccord Genuity after patents challanged
RIMM – Research In Motion tgt cut to $45 from $60 at UBS
ERTS – Electronic Arts initiated with a Hold at Brean Murray
DSX – Diana Shipping downgraded to Neutral from Buy at Goldman
FRO – Frontline downgraded to Market Perform from Outperform at Wells Fargo
CSCO – Cisco Systems initated with Hold at Jefferies
FDO – Family Dollar downgraded to Neutral from Outperform at Credit Suisse
MY – China Ming Yang Wind Power downgraded to Hold at Maxim Group due to market and operation uncertainties
PNR – Pentair initiated with Neutral at UBS
SWKS – Skyworks downgraded to Neutral at Sterne Agee
BMY – Bristol-Myers initiatited with Hold at ISI Group
XIDE – Exide Tech target lowered to $12 from $15 at Maxim Group
Comments »Gapping Up and Down This Morning
Given the premarket scenario seems like everything is now down
Gapping up
CASC +14.2%,WWVY +4.9%, TSLA +4.3%, ZQK +9.6%, COO +2.5%, SI +1.3%, ALV +1%, PANL +2.6%, AVGO +1.2%, DRYS +7%, WWVY +4.9%, CVI +3.8%, CYTK +2.9%,
Gapping down
NOA -5.4%, MT -1.5%, BBL -2.3%, BHP -2.2%, SLV -2.2%, ARMH -1.7%,DMND -1.6%, GOLD -1.2%, BP -1.2% SNOFF -4.5%, IRE -4.3%, ANTH -4%, RIO -2.7%, SAI -2.6%,
Comments »In Play and On the Wires
Non Farm Payrolls: Prior 268k, Market Expects 165k- 180k, Actual 54k…Unemployment Rate at 9.1%….10 Year Drops Below 3% and Equities Tank
Greenspan: “I’m in Favor of Going Back to The Clinton Tax Structure”
“The debt and deficit problem in the US is so serious that former Federal Reserve Chairman Alan Greenspan finds himself in the position of recommending the highest tax rates in more than a decade.
In an interview with CNBC, the former central bank chief described himself as a “small government, free-market economist” who nonetheless believes that in order to raise revenue and close the debt gap, 1990s-era taxes must be reinstituted.
It’s a measure, he said, of how serious the problem has become.
“The fact that I am in favor of going back to the Clinton tax structure is merely an indicator of how scared I am of this debt problem that has emerged and its order of magnitude,” he said.
The marginal tax rates fell in the early 2000s under former President George W. Bush, who instituted sweeping cuts that last year were renewed in a deal between President Barack Obama and congressional Republicans.”
Comments »Newell Rubbermaid Misses EPS by $0.09 and Cuts Forecasts
European Markets Trade Unch as They Await the May Jobs Report
“European stocks dropped, with the benchmark Stoxx Europe 600 Index headed for a fifth week of declines, as investors awaited a U.S. jobs report that may show the recovery in the world’s largest economy is faltering. Asian shares and U.S. futures fell.
Nokia Oyj led technology shares lower, falling 4.8 percent. Alpha Bank SA and National Bank of Greece SA advanced more than 2 percent as investors speculated that the European Union will bail out the Mediterranean country for a second time. Fiat SpA rose 3.6 percent as the carmaker buys the rest of the U.S. government’s stake in Chrysler Group LLC.
The Stoxx 600 lost 0.3 percent to 273.85 at 10:33 a.m. in London. European stocks fell to a six-week low yesterday as Moody’s Investors Service raised Greece’s default risk to 50 percent and a report showed U.S. factory orders dropped more than forecast in April. Standard & Poor’s 500 Index futures expiring in June slipped 0.3 percent today, while the MSCI Asia Pacific Index lost 0.5 percent.”
Comments »Gold Holding Strong Near All Time Highs
“Gold may climb, extending a two-week advance, as slowing global economic expansion and Europe’s debt crisis bolstered demand for precious metals as a store of value.
Immediate-delivery gold swung between a gain and a loss of 0.2 percent before trading at $1,531.80 an ounce at 1:46 p.m. in Singapore. The metal is little changed this week following last week’s 1.6 percent gain and 1.2 percent advance the previous week. Gold futures for August delivery was little changed at $1,532.70 an ounce.
Manufacturing in China, Europe and the U.S. slowed in May and a private report this week showing slower-than-forecast growth in jobs spurred concern that today’s Labor Department employment data will trail estimates. European Union and International Monetary Fund officials will today complete a review of Greece’s plan for 78 billion euros ($113 billion) in asset sales and austerity measures as they prepare the nation’s second bailout in little more than a year.”
Comments »Oil Falls Below $100
“Oil fell before a report that will indicate the strength of the U.S. economy and as OPEC prepares to meet in Vienna next week to decide output quotas.
Futures have fluctuated from $98 to $104 a barrel this week. The U.S. Labor Department will say today that employers added fewer jobs in May, according to a Bloomberg News survey. The Organization of Petroleum Exporting Countries will respond at its June 8 conference if the world needs more crude, Saudi Arabian Oil Minister Ali Al-Naimi said yesterday. An explosion at a Chevron Corp. (CVX) refinery in Wales killed four workers.
“We expect the non-farm payrolls to be weak, and this will have a negative effect on market sentiment and thereby the appetite for riskier assets such as oil,” said Thina Saltvedt, an analyst at Nordea Bank AB in Oslo. “Higher fuel prices in the U.S. seem to have started to bite on demand, and so we don’t expect a big upswing in demand this summer.”
Crude for July delivery traded at $99.33 a barrel, down $1.07, in electronic trading on the New York Mercantile Exchange at 11:45 a.m. in London. It earlier rose as much as 47 cents. Prices are little changed this week and have gained 34 percent in the past year.
Brent crude for July delivery was $1.32 lower at $114.22 a barrel on the London-based ICE Futures Europe exchange.”
Comments »The Aussie Dollar Trades Near a Three Week High
Asian Markets Fall Overnight
“Asian stocks fell for a second day, driving the regional benchmark index to its longest string of weekly losses since the collapse of Lehman Brothers Holdings Inc., amid signs economic recovery in the U.S. is faltering.
Toyota Motor Corp. (7203), the world’s biggest automaker that gets 28 percent of sales from North America, lost 1.2 percent in Tokyo. LG Electronics Inc. (066570), a South Korean electronics maker, dropped 1.2 percent after saying there won’t be a turnaround for its mobile-phone business in the second quarter. Hang Lung Properties Ltd. (101)led Hong Kong developers lower after home sales in the city dropped for a fifth month in May.
“We could see a little bit more consolidation before equities go back up,” Michael Preiss, Singapore-based chief equities strategist at Standard Chartered Bank, said in a Bloomberg Television interview. “The second half slowdown that we see is potentially becoming worse than economists had forecast.”
The MSCI Asia Pacific Index fell 0.5 percent to 133.88 as of 7:09 p.m. in Tokyo, heading for a 0.4 percent drop this week. The five-week slump is the gauge’s longest losing streak since October 2008, after the bankruptcy of Lehman Brothers triggered a global stocks rout. Almost two stocks fell for each that rose on the measure, which swung between gains and losses at least eight times.”
Comments »The Dollar Continues to Fall Hitting a Three Week Low
Sony Investigating Fresh Hack Attack
Kucinich’s Resolution to End War in Libya Pulled
“I am disappointed that the President and leadership feel the need to buy even more time to shore up support for the War in Libya,” Kucinich said. “It’s not surprising that some are now wondering if a preliminary vote count on my resolution came out in favor of defending the Constitution.
“The administration wants to postpone and avoid this deliberation; however Congress cannot maintain its position as a co-equal branch of government if it willingly forfeits the decision-making on matters of war and peace,” he added. “This is why it is important that this issue be brought forward for deliberation and a vote.”
Comments »Report: U.S. Led War in Libya Has Cost at Least $2 billion
The STOCK ACT
“Congress’ Culture of Wealth: How Insider Information Enriches Members of the House
June 2, 2011 |
We know that members of Congress often stroll right out of their jobs and into lucrative lobbying positions, consulting gigs, or book deals. We know that they enjoy all sorts of perks of their offices, from golf trips with lobbyists to corporate-sponsored air travel.
We even might have guessed that they’ve done some insider trading. After all, these are the people who make decisions about how the economy is going to go. About which mega-defense corporation will get the next juicy contract.
A new study in the journal Business and Politics reports that members of the House saw their investments outperform those of the average investor by 55 basis points per month, or 6 percent annually. A previous study had found Senate investments performed even better, outperforming even House members by 30 points per month.
Democrats managed to do even better than Republicans, perhaps proving once again that unlimited faith in markets doesn’t always lead to great decisions. The Democratic subsample beat the market by a full 9 percent annually, while Republicans did so only by 2 percent.
What might be more surprising is that this is all perfectly legal. The Washington Times notes: ”
Comments »Sprint Comments on a $20 Bn Deal With LightSquared
“Billionaire Philip Falcone’s LightSquared Inc. is close to a deal to paySprint Nextel Corp. (S) as much as $20 billion as part of a network construction and sharing accord, said two people familiar with the talks.
The tentative agreement, spanning 15 years, would allow Falcone to roll out LightSquared more quickly and let the companies share network-building costs, said the people, who declined to be identified because the discussions aren’t public.
Sprint has pledged $5 billion to upgrade its network over the next three to five years to allow it to use disparate bands of spectrum on a single base station. Chief Executive Officer Dan Hesse said in May he had held talks with Clearwire Corp. (CLWR) about possibly hosting its network on Sprint’s infrastructure.
LightSquared agreed last year to Federal Communications Commission conditions that it offer service to as many as 100 million Americans by the end of next year and 260 million by 2016. The company is on schedule to introduce commercial service by early next year, Jeff Carlisle, regulatory affairs executive vice president, said on a conference call yesterday.”
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