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Movers and Shakers – DWA – 8.1.2012

“Madagascar 3: Europe’s Most Wanted,” one of two feature films released by DWA this year generated $501 million, an impressive number, but with less than expected demand numbers outside of the U.S. Apparently the title of this film revealed a deeper signal.

DWA’s income contracted 63% to almost $13 million or 15 cents a share from $34.1 million and 40 cents a share a year ago when “Kung Fu Panda 2” was released. Analysts were expecting earnings of 25 cents a share.

Revenue was reported to be $162.8 million, below estimates of $186.2 million. DWA attributes the fall in revenue to falling DVD sales due to lack of demand for DVD ownership and user’s preference to use services such as NetFlix instead of purchasing a DVD hard-copy.

David Cornes holds a degree in economics from the University of Montana.


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Morning Rage 8.1.2012

As for the announcements today there are many:
• Motor Vehicle Sales Consensus
• MBA Purchase Applications 7:00am
• ADP Employment Report 8:15am
• PMI Manufacturing Index 9:00am
• ISM MFG Index 10:00am
• Construction Spending 10:00am
• EIA Petroleum Status Report 10:30am
• FOMC Meeting Announcement 2:15pm

The market will open at a decline today with the S&P 500 down 0.43%. That
downward trend is not affecting the 10-year treasuries and Oil though; both are on
the rise with increases of 1.35% and 0.44% respectively. The dollar is also on the
upswing at 0.08%.

In the tech field Apple lovers have been refueled with the rumors of a special event
on September 12th. This alone has sent the stock back over the $600 mark as most
are expecting this event to be the unveiling of the iPhone 5 and possibly the new,
smaller iPad.

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Chris Cruises the Globe 8.1.2012

China, again outperformed their Asian peers, as the Hang Seng added .1%, for a fifth straight day of
gains. China railway construction gained 2.2% and is up more than 60% on the year. Huaneng power
reversed early gains to close down 1.2% after reporting better-than-expected first half profit Tuesday
night, the stock is still up over 34% so far this year.

Europe is currently up supported, of course, on hopes of ECB policy action, which puts them in a
vulnerable position if action is not taken. The FTSEurofirst 300 is up .3% so far today. The hope is for
the ECB to announce steps to lower borrowing costs for Spain and Italy, however that means the debt
will still be lingering. Schneider Electric gained 2.8% after posting a rise in first half operating profit and
Standard Chartered grew 3.5% after beating forecasted results.

The UK manufacturing PMI fell to 45.4 in July from 48.4 in June reaching its lowest level since May 2009.

In the US the MBA purchase index is up 1% after two weeks of decline, however the refinance is again
down 8% reflecting a large drop in applications for government loans.

Nokia shares are up 10.4% in premarket on rumors that Lenovo may be interested in the company.

Commodities look to begin the day with gains currently showing crude, natural gas, gold and silver all
up.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu

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Doherty at the Close 7.31.2012

In earnings news, Dendreon slumped -22.9% after the biotechnology company reported a wider-than-expected second-quarter loss and said it was reducing its workforce by more than 600 employees over the next year as part of a restructuring aimed at cutting costs by $150 million a year.

European markets fell, with the Stoxx Europe 600 losing -1%, as weak data and disappointing earnings reports weighed on sentiment, offsetting expectations of new stimulus measures from the Fed and European Central Bank.

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Halftime Report 7.31.2012

WTI crude oil futures fell 93 cents to $88.85 and gold futures fell 80 cents to $1618.90.

Long-term I remain bearish on the EUR/USD, however I will stay out of this trade during this short-squeeze time period.

S&P 500 futures were up a modest 1.25 points to 1381.75. If the ES’s bullish rally continues, I will be looking to go long if the index futures break the 1395.00 level. NASDAQ futures gained 11 points to 2646.75 and Dow Jones industrial Average futures rose 16 points to 13017.00.

Apple (AAPL) continued its rise above the $600 level this morning by rising over 2.5% to $610.00 after last week’s algo overloaded sell off.  Cirrus Logic Inc. (CRUS), an AAPL chip producer posted massive gains of over 24% after the company posted higher than expected guidance.

Investors may finally be realizing that social media stocks are not great monetary investments in the short-term. Facebook made new lows since its IPO in May, trading down over 4% to $21.86 and currently trading around the $22.00 level. Other social media sell offs were cited in Linkedin (LNKD) and Zynga (ZNGA).

Diesel engine maker Cummins (CMI) rallied over 7.5% after posting better than expected earnings and guidance.

David Cornes holds a degree in economics from the University of Montana.

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Movers and Shakers – CRUS – 7.31.2012

The integrated circuit company’s revenues rose 7% to $99 million from $92.24 million at this time last year. They project revenues to be between $170 and $190 million, above analysts’ estimates of $129.65.

Cirrus produces chips that are in nearly every Apple (AAPL) product. Considering that the iPhone 5 is due to release this winter, I think that Cirrus would be a great buy, as CRUS and AAPL are positively correlated and I am bullish on AAPL.

David Cornes holds a degree in economics from the University of Montana.


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Morning Rage 7.31.2012

Not only are there a slew of announcements in the market, today also marks the
beginning of the FOMC meeting. The announcements go as follows:
• ICSC- Goldman Store Sales 7:45am
• Personal Income and Outlays 8:30am
• Employment Cost Index 8:30am
• Redbook 8:55am
• S&P Case-Shiller HPI 9:00am
• Chicago PMI 9:45am
• Consumer Confidence 10:00am
• State Street Investor Confidence Index 10:00am

As for the stock market the S&P 500 will open at a decline of 0.05%, and so will 10-
year treasuries at 1.33%. Oil is up at 0.16% and the dollar is down 0.07%.

US Steel came out with its earnings this morning, announcing 61 cents per share
which beat analysts expectations of 48 cents per share. But its not all good news, the
company says its net income has fallen by more than half and this time last year the
company posted $1.33 per share.

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@keeneonmarket!