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Doherty at the Close 7.10.2012

Advanced Micro Devices slumped after the company cut its second-quarter revenue outlook late Monday, citing weaker-than-expected business conditions in China and Europe. Also weighing on tech stocks was Applied Materials own after the firm lowered its full-year guidance to reflect weaker-than-expected demand in its semiconductor business.

Alcoa was the Dow’s biggest decliner after industrial metals producer posted an earnings loss late Monday amid slumping aluminum prices. Alcoa’s report, the first by a blue-chip company, unofficially kicks off earnings season.’

In economic news, the National Federation of Independent Business’s small-business optimism index fell in June to its lowest reading since October, missing expectations. 

Finally, JC Penny (JCP) fell -5.81% after analysts of Credit Suisse said second quarter sales are looking worse than the 20% drop posted in the first quarter. The department store retailer cut 350 jobs on top of the 600 employees they laid off in April. 

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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. 

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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.

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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

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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!