First Business Interview 7.9.2012
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Halftime Report 7.10.2012
S&P 500 futures fell 4 points to 1345.25, NASDAQ futures fell 11.25 points to 2594.75, and Dow Jones Industrial Average futures gained 6 points to 12691.00.
WTI crude futures fell 91 cents to $85.08 and gold futures fell $2.10 to $1587.00.
Traders around the world that broker through PFGBest’s may be the victim of an MF Global-like fallout after they posted that they had missing client segregated funds. The 37th largest futures brokerage is guilty of lying about an estimated $200 million in missing customer funds.
Advanced Micro Devices (AMD) fell 10.50% after cutting its Q2 guidance due to low demand expectations from China and Europe.
MAKO Surgical (MAKO) fell over 39% on low demand expectations.
The women’s retailer Coldwater Creek Inc. (CWTR) gained 51.15% after receiving funding from Golden State Capital.
James River Coal Co. (JRCC) continued to fall (-20%) with news that competitor Patriot Coal (PCX) filed for bankruptcy last night.
David Cornes holds a degree in economics from the University of Montana.
Movers and Shakers – MAKO – 7.10.2012
The 8-year old medical device company developed a procedure called “MAKOplasty” that uses robotic arms to perform orthopedic procedures and orthopedic implant surgery.
Yesterday, MAKO announced that their sales and guidance were lower than expected in Q2 and 2012 due to lower demand from hospitals due to lack of capital to purchase the relatively expensive surgical systems.. In Q2 they sold 9 surgical systems, 2 lower than analysts’ expectations. They lowered their guidance for the year to between 42 and 48 systems sales, lower than analysts’ expectations of 52 to 58 units.
David Cornes holds a degree in economics from the University of Montana.
Chris Cruises the Globe 7.10.2012
China had a similar day, with the Hang Seng falling for the third straight, however only off .2%. China’s imports sank to a six month low with an increase of 6.3% from a year ago, this is half of the anticipated 12.7% forecast in a Reuters poll. Samsonite, the world’s largest luggage maker, dropped 6%, and is at its lowest level in 6 months. China Yurun Food group dropped 6.6% following yesterday’s 10% dive, marking its lowest level in 6 years.
European shares rallied today on nothing more than yet another speculated bailout, the hope is that Germany’s constitutional court will give its blessing to another fund. The FTSEurofirst is up 1.2% on the thought. Banking stock are basking in the news. ASML stock, the previously mentioned Dutch company, is up 8.8% after Intel’s announcement. UK chipmaker and Intel competitor ARM Holdings dropped 1.8%. Italy shares some much needed good news in that Industrial production rose .8% for May compared to
the anticipated decline of .2%.
Pepsi, currently down in pre-trade, announced another move in opening a new food manufacturing plant in China.
Southwest airlines grabs an upgrade from Sterne Agee to buy from neutral after reading the carriers June numbers, they are up 1.1% in pre-market.
Commodities are starting mixed today with crude down, natural gas flat, and gold and silver both green today.
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
Morning Rage 7.10.2012
As for the economic reports today, small businesses are down 3 points while the
same store sales index jumped 2%. The decline in small business is supposedly
caused by reduced consumer spending, weak capital investment plans and earnings
trends. Redbook is due out at 8:55am EST.
Moving on to futures the S&P 500 was down 0.16% at the close making it the third
straight day it closed on a decline. Oil is also down at 0.74% while the 10-year
treasuries are up 0.66%. The dollar is also holding strong ending at an increase of
0.08%.
Earnings season continues today and most of the forecasts are positive with the only
companies expected to produce a decline being AUGT, OCZ, and LEDS.
Make sure to check out our webinar this Sunday at 6:00pm CST and follow us on
Twitter @keeneonmarket!
Euro (6E) and Oil (CL) Pivot Points for 7.10.2012
S&P Emini Pivot Points for 7.10.2012
Doherty at the Close 7.9.2012
Talks among euro-zone finance ministers on how to bail out the Spanish banking system and create a common regulator for the region’s banks failed to impress investors. Yields on Spain’s benchmark 10-year bond rose to about 7%, a level than economists say is unsustainable. European markets were mostly lower, with the Stoxx Europe 600 slipping -0.4%. Adding to concerns, data over the weekend showed that inflation eased in China last month as demand cooled.
Before their earnigns report at the close, shares of Alcoa eased. The blue-chip aluminum company is to report second-quarter results after the closing bell, marking the unofficial kick-off of the reporting season. Many investors are worried that these next few days of earnings will be a major indicator of a global slowdown and the beginning of another crisis.
In other corporate news, Amerigroup surged after the health insurer said it agreed to be acquired by WellPoint for $4.46 billion in cash. WellPoint shares gained, posting the second-biggest increases in the S&P 500. The index’s health-care sector was one of just two of its 10 groups to rise as Amerigroup rivals such as Centene and Molina Healthcare also advanced. In other deal news, FX Alliance leapt after the electronic currency-trading platform entered into a deal to be bought by Thomson Reuters for $616 million. Finally, Facebook (FB) rose after agreeing to settle patent litigation with Yahoo, drawing an end to a nasty but ultimately short-lived dispute that had roiled Silicon Valley.
Google & Apple Daily Pivot Points
YUM and AA Earnings. 7.9.2012
– Still, YUM like many of the other companies mentioned herein, has come under pressure of late, falling 15% since marking its 52-week high earlier this spring. The problem is the same mentioned for the other legends herein, deteriorating Europe and slowing Chinese economic growth.
Alcoa (AA)
According to the company website Alcoa is the world’s leading integrated aluminum company, providing jobs to 61,000 employees across 31 countries. Alcoa’s main competitors in the metals and mining industry are Aluminum Corp. of China (ACH)
and Alumina (AWC). The company has been an integral part of the advancement of aerospace, automobiles and industrial markets. Which is why the company benefited greatly when the factory order report was released and it was announced that the orders had increased for the first time in three months. On the other hand though when payroll was released today and the numbers were lower than the forecasted growth the company took a hit.
As for the earnings report next week the current estimate shows a 78.1% decrease from last years second quarter when Alcoa reported earnings of 32 cents per share. This is partly due to the decrease in stock price from $9.60 to $8.90. Despite all these negative statistics, Alcoa is trying to build on four straight revenue increases. Which could be possible with the company’s announcement that it had reached an agreement to sell its 351-megawatt Tapoco Hydroelectric Project to Brookfield Renewable Energy Partners. This sale could boost earnings at the last minute and keep Alcoa’s quarterly revenue increase streak going.