Chris Cruises the Globe 7.26.2012

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After a back and forth battle the Hang Seng crawled up .1% today with defensive stocks outweighing
week second quarter earnings. Sands China dropped 4.9% closing at its lowest since December 20 th as
its parent corp, Las Vegas Sands Corp reported worse than expected earnings due to lower profits at
Casinos. Concerns over July revenue for the gambling sector push down SJM holdings, MGM China and
Wynn Macau 3.5, 3.4 and 3% respectively. The index’s largest gainer Li & Fung Ltd was up 3.75% on the
day.

The FTSEurofirst is beginning the day flat on mixed earnings reports. Unilever is the top gainer in Europe,
up 5.2% after not issuing profit warnings as its two main competitors have. Rolls Royce is up 4.8% as
it revealed a better than expected 7% rise in first half profit due to the airlines need to renew fleets
with more fuel efficient planes. Royal Dutch Shell and BP lost 3.6 and 1% respectively on lagging second
quarter earnings.

Italy’s market is up 3.7% and the Euro jumped 1% to 1.2274 as Mario Draghi promised to “do whatever
it takes to preserve the Euro.”

Nokia tossed a software project code named Meltemi, which was to compete with Google’s Android,
due to costs savings efforts.

Commodities are beginning with modest gains from crude and natural gas, gold is up .67% and silver
bucking the trend down .2%.

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

Cornes at the Close 7.25.2012

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Traders can look forward to playing Visa Inc. (V) and Zynga Inc.’s (ZNGA) earnings after the close. The earnings scheduled for tomorrow morning before the open include: Exxon Mobil Corp. XOM, 3M Company (MMM), Kimberly-Clark Coproration (KMB), Panasonic Corp (PC), Royal Dutch Shell (RDS), Siemens AG (SI), and Sprint Nextel (S).

I will keep my eyes out for and unexpected earnings results overnight along with tomorrow morning’s employment and durable goods numbers. The markets seemed to be teetering today. Maybe these releases with tilt the scale either way, in my opinion I think the

Grains gave back some of the previous week’s losses with corn futures gaining 3.4 cents, soybeans up a massive 44.80 cents and wheat gaining 25 cents.

Crude futures remained about flat on the day by trading up 32 cents to $88.82, even considering a release of a 2.717 million barrel increase in U.S. crude inventories. Gold futures gained $28.70 to $1604.90, rising above the significant $1600 level.  EUR/USD futures not far behind gold’s gain, rising 87 pipps to $1.2158.

WellPoint Inc. (WLP) fell over 12% after releasing an 8% drop in earnings.

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

Halftime Report 7.25.2012

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WTI crude oil futures fell over $1.00 to trade at $87.37 after a positive crude inventories number this morning. Gold futures rose with the 6E gaining $23.30 to $1599.50 and 61 pipps to $1.2132 respectively.

S&P 500 futures modestly gained .75 points to stay at 1330.25, NASDAQ futures fell 8.25 points to 2540.25 and Dow Jones Industrial futures gained 79 points to 12603.00.

Broadcom Corp. (BRCM) gained over 9% after a positive earnings release last night. The smartphone chip maker posted record revenue, while Apple Inc. (AAPL), a consumer of BRCM’s chips fell over 4.5% on weak revenues due to anticipation of the iPhone 5 and weakening demand in Western Europe.

Symanted Corp. (SYMC) gained 14.27% after posting weak earnings and news of a new CEO.

Netflix Inc. (NFLX) fell over 23% after reporting positive earnings and weak guidance. This happens to be one of my least favorite business models and services due to the hit or miss online movie selection.

Radio Shack Corp. (RSH) had a massive decline of 28.49% after losing 21 cents a share. Analysts expected a profit of 3 cents a share.

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

Movers and Shakers – AAPL – 7.25.2012

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AAPL blamed their fall in earnings on slowing demand in Western Europe and sales of the iPhone 4 and 4S in anticipation for the new model iPhone 5 due to be released later this fall or winter. Although Apple’s Q3 earnings were lower than expectations, they are still impressive. They reported an increase of 23% in sales from this time last year to $35 billion, about $2 billion less than analysts expectations. Quarterly net income gained 21% over the year to $8.8 billion for an EPS of $9.32. Analysts were expecting an EPS of $10.37.  In my opinion AAPL is a great buy when it reaches bottoms and that the release of the iPhone 5 will make record sales and accelerate growth.

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

Chris Cruises the Globe 7.25.2012

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The Hang Seng had a late rally after European markets opened slightly higher than expected, although
not enough to come off the day’s low finished down .1%. The telco industry was strong finishing up 5.6%
after Credit Suisse rated them as their top pick among Asian telcos. Shares of China’s second largest
home appliance retailer, GOME Electrical Appliances, tumbled 14.5% today after announcing they
expect a net loss for the first half of 2012.

The FTSEurofirst is up .2% after European Central Bank policy maker Ewald Nowotny made comments
to raise the prospect of a new bailout. This propped the Spanish IBEX up 1.8% and the Italian FTSE MIB
1.5%. Banking giants Santander rose 2.4% and UniCredit 3.4%. Deutsche bank went against the trend
losing 3.3% on a profit warning, leading to worries they may have to raise capital.

In the US the MBA composite index came in at -6.7% from a prior 7.1%. The purchase index is up 1%
compared to a previous loss of 1%. The 30 year rate, at 3.86%, is down 2 basis points for the week for a
new record low.

Commodities are set to begin the day mixed with crude and gold showing minor gains while natural gas
and silver are down.

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 7.25.2012

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This morning the MBA Purchase Application index fell 3% while the refinance index
rose 2%. The New Home Sales report is due at 10:00am and the EIA Petroleum
status report is due at 10:30am.

The S&P 500 is down once again today at 0.90% while the 10-year treasuries are up
2.88%. Crude oil is also up at 0.20%. And for the first time in the past couple weeks
the dollar is down at the open at 0.41%.

As for earnings this week, the European crisis hit Ford hard, diminishing 25% of the
company’s sales. Ford only earned $0.26 per share, down from $0.57 at this time
last year. The company expects to lose $1 billion over the European crisis.

Make sure to check out our webinar next Monday, 30th and follow us on Twitter
@keeneonmarket!

Doherty at the Close 7.24.2012

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United Parcel Service (UPS) declined 4.61% after the package-delivery company’s second-quarter earnings and revenue missed estimates and it lowered its full-year earnings outlook, citing increasing economic uncertainty in the U.S. and continued weakness in Asia.
DuPont (DD) dropped -1.97% after the chemical company earnings topped estimates but revenue fell short of expectations. Blue chip  Texas Instrument (TXN)  fell -0.86% after the microchip maker reported second-quarter earnings that beat forecasts, but revenue fell short and it indicated that third-quarter revenue would be below current projections.

Total market losses widened around midday after a Reuters report that Greece will need to restructure its debt again, citing European Union officials. The reports on Greece accelerated declines across European markets, which were already lower after the Continent’s own discouraging manufacturing data. The Stoxx Europe 600 shed -0.5%, losing ground for the third session in a row.

In other corporate news, Whirlpool dropped 8% after the company’s profits fell short of street forecasts. Additionally, Cisco systems and Apple both fell, mirroring the market before their major announcements. Finally, DeVry (DV), the for profit education company, fell 24.56% after they reported eliminating 570 jobs following a decrease in demand for education and increased governmental restrictions on for profit education.